Libbey drives gains for group from Whitehouse in Blade's School Stock Contest

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The pick of a student who was originally bewildered about what stock to recommend to classmates helped a team from Lial Catholic School retake the lead in The Blade's annual School Stock Contest.

Victory, consisting of 10 junior-high students from the small school in suburban Whitehouse sponsored by the Sisters of Notre Dame, overtook a team from Rossford Junior High School in week three of the 12-week contest.

"This is a surprise, but I'm glad," said Patricia Jones, a computer teacher who advises the students and two other teams at Lial, with 200 students.

The contest, sponsored by The Blade's Newspaper in Education program and Fifth Third Bank, includes 98 teams from 33 schools across northwest Ohio and southeast Michigan. Each team chose a portfolio of four stocks trading for at least $3 a share. A hypothetical $40,000 was divided evenly among the stocks.

The winner will be the portfolio with the biggest gains by the end of the contest April 30. The winner will receive $250 for the school and $250 for the team. The school of the second-place team gets $250; the third place school, $100.

Victory's portfolio soared 7 percent last week and 20 percent since the start of the contest Feb. 1 to a hypothetical $47,914. Last week, the team opened a $2,845 lead on second-place BosBros, from Rossford Junior High.

The biggest driver of the top team's gains was Toledo tableware manufacturer Libbey Inc., which shot up to $13.20 Friday from $10.63 the prior week and $10.30 when the contest began.

Mrs. Jones said the stock was suggested by a female student who was originally unsure about what stock to recommend. The teacher advised the student to consult stock tables in The Blade's business section. Choosing Libbey, the girl, like other team members, then prepared a PowerPoint presentation to push her choice.

Two other stocks chosen by the team also gained last week. Trendy clothing retailer Hot Topic Inc. rose to $6.47 from $6.12 Feb. 19 and gunmaker Sturm Ruger & Co. Inc. increased to $11.76 from $11.46. The team's final stock, Motorola Inc., fell during the week to $6.76 from $7.01.

With the contest approaching the one-month mark, portfolios of 86 of 98 teams - 84 percent - have made a profit, said Matt Faltys, vice president and director of portfolio management for Fifth Third Bank.

On March 19 - midpoint of the contest - teams will have an opportunity to change any or all of their stocks.

Despite a sizable lead opened by Lial, Mr. Faltys said victory is far from certain for Victory.

The firm's gains have largely been the result of increases in shares of glassmaker Libbey, which was badly beaten down last year by investor fears about the firm's debt and financing situation. The shares have been on a tear since company officials announced moves to clear up the problems.

But being dependent on gains by a single stock carries risks, Mr. Faltys said, especially if the stock loses momentum.

"People don't recognize volatility to the upside," he said. "They just get happy because they have made money. But there is some risk in having the one stock do so well."

Other teams are in a similar situation, he added. And this is a volatile period for stock markets overall, Mr. Faltys said.

That was demonstrated by changes in team standings. Tweekk, from Hicksville Middle School in Hicksville, Ohio, dropped to ninth last week from third in the second week of the contest. BGHS4, from Bowling Green High School, moved into third.

Contact Gary Pakulski at:

gpakulski@theblade.com

or 419-724-6082.