B-to-B Computer Products Lead Gain

SHOWING impressive fourth quarter earnings that exceeded many analysts’ predictions, business-to-business computer products catalogers and marketers provided the impetus for much of the rebound in B-to-B direct marketing stock prices.

During the 12- and three-month periods that ended Jan. 29, values rose strongly compared with the previous three months’ results.

The 31 business-to-business companies in Gruppo, Levey & Co.’s Direct Marketing Index recorded an average stock price increase of 37% for the three months. In contrast, the Standard & Poor’s 500 was up 18%.

Catalog Issues Recover B-to-B catalog stocks bounced back from a 6% dip in value in the earlier quarter with a 42% hike. They outperformed B-to-B marketing issues, which went up 37%.

Computer products catalogers tweaked investor interest due to their ability to take swift advantage of the Internet as an additional marketing channel. The biggest gains came from Creative Computers Inc., Multiple Zones International and Programmer’s Paradise Inc. Those stocks went through the roof, gaining 334%, 277% and 146%, respectively.

Over the 12-month period, B-to-B companies’ stocks surged 44% in price, compared with the S&P 500’s concurrent 30% climb.

Both the marketing and catalog segments grew at impressive rates; marketing led the way with an 83% average gain in stock value.

Again, it was computer products companies setting the pace: Dell Computer Corp., Gateway 2000 Inc. and Insight Enterprises Inc. registered respective stock price increases of 302%, 105% and 92%.