Ten years and a matter of days ago New Century Financial, a US specialist in sub-prime mortgages, filed for Chapter 11 bankruptcy protection and cut 50% of its workforce. This was one of the early warning signs of the 2007/8 financial crisis.
With this anniversary in mind Shares thought it would look at which FTSE 350 stocks have fared best through this tumultuous period and which have done worst.
WINNERS AND LOSERS
The starting point for this exercise is 2 April 2007 when New Century made its shock announcement.
Here is the list of winners:
| Company | Share price return |
| Booker (BOK) | 2,500% |
| JD Sports (JD.) | 1,700% |
| Ashtead (AHT) | 1,000% |
| Micro Focus (MCRO) | 980% |
| Rightmove (RMV) | 700% |
| Telecom Plus (TEP) | 550% |
| Diploma (DPLM) | 520% |
| Paddy Power Betfair (PPB) | 510% |
| Randgold Resources (RRS) | 490% |
| Dechra Pharmaceuticals (DPH) | 480% |
Source: Sharepad, 11 Apr 2017
And losers:
| Company | Share price return |
| Intu Properties (INTU) | -67% |
| Barclays (BARC) | -68% |
| Serco (SRP) | -69% |
| Mitchells & Butlers (MAB) | -70% |
| Debenhams (DEB) | -70% |
| Assura (AGR) | -71% |
| FirstGroup (FGP) | -76% |
| Man Group (EMG) | -77% |
| Lloyds Banking (LLOY) | -78% |
| Royal Bank of Scotland (RBS) | -96% |
Source: Sharepad, 11 Apr 2017
The list of losers is broadly as you would expect with three financial stocks bringing up the rear and a fourth, Barclays (BARC), also on the list.
It is harder to generalise about the winners which in itself is interesting. No single sector has any particularly strong representation, these are just excellent companies whose stories have resonated with investors.
NEED SOME HELP?
This highlights the importance of sound stock selection and the good news for those of you looking for help in this area is this week’s magazine, out on Thursday, deals with just this topic.
