Painter’s Pain
Auto paint providers have not been spared the stock value losses felt by other industries since the late February crash.
The drop is being blamed on the coronavirus outbreak, which has caused major supply disruptions for businesses reliant on global trade. This is particularly true for businesses with manufacturing services particularly reliant on Chinese facilities.
Avalanche at Axalta
The price of Axalta’s stock has dropped by more than 22 percent in the past two weeks, going from trading at $29.89 U.S. in late February to $23.25 U.S. by March 5. The auto paint giant suffered more significant drops than other paint firms due to its heavy reliance on the vulnerable-looking auto sector.
Axalta investors are used to its roller-coaster-like stock value. In 2015 and 2017, it was trading above $36 U.S. In 2016 and 2018, it dipped below $23 U.S.
Not-so-sure Win
After dropping in value by 14 percent from February 19 to February 28, Sherwin-Williams stock experienced a brief rebound. By March 4, the price gained back all but three percent of its February 19 value. By March 6, the value had again begun to dip, wiping eight percent off of its value.
In its last quarterly report, Sherin-Williams boasted earnings almost 150 percent higher than in Q4 of 2018.
With the stock now trading above $530 U.S., the recent dip is not of great concern. At its 1980 IPO, the stock traded for just $0.88 U.S.
Long-term investors in Sherwin-Williams have done very well by the stock. In its first decade of operation, its stock’s value grew more than ninefold. In its second decade, it grew twice over. In its third decade, it grew three times over. In the 2010s, its worth, once again, grew nine-times over.
BASF’s Breakdown
After declining in value from $19.73 U.S. to $16.46 between November and the beginning of the recent global stock tumble on February 19, BASF has seen its stock plummet another 11 percent.
Investors have not had an easy ride over the past few years. The stock’s value reached its historical Apex in January 2008. Its fortunes have struggled since the 2008 financial crisis. In June of 2008, its value dipped $37.40. In December, its value was below $8 U.S.
