A terrible week for channel stocks and broader market indexes ended with a muted rally as value investors swooped in for bargains.
The Spain terror attacks, coupled with a weaker-than-expected consumer confidence report from the University of Michigan, undermined Wall Street and cut our Ziff Davis Channel Zone Stock Index by 2.97 percent for the week ended March 12. Of our 30 index members, shares in 27 firms dropped. Still, our index held up better last week than the Dow Jones Industrial Average (-3.3 percent), S&P 500 (-3.1 percent) and the Nasdaq (-3.1 percent).
Last weeks slide began amid concerns that stocks are overvalued. The March 11 terror attacks in Spain triggered an even steeper sell-off before bargain hunters entered the market on March 12.
The indexs biggest weekly decliner was the PC Connection Inc. (PCCC, -14.30 percent), although the company didnt announce any formal news. PC Connection Vice Chairman David Hall, according to multiple SEC filings, has sold more than 30,000 shares in the company since Feb. 3. PC Connections stock has declined from $10.44 to about $7.49 during Halls selling cycle. But it seems unlikely the price was affected by the sale. Mark Gavin, PC Connection CFO , said the sale is part of a planned sale in a 10B5 program that Hall, one of the companys co-founders, put in place in August. "The sales are a tiny piece of his overall holdings," said Gavin, who said Hall still owns around 8.6 million shares.