The stock market is a game of chance, and 80 investors are choosing to hedge their bets with the Boys & Girls Clubs of Springfield.
It’s called Invest to Invest, and the annual fundraiser is netting over $116,000 this year for the kids’ club. Program participants pledge $1,000 apiece and select a stock to track throughout the yearlong game, with proceeds going to Boys & Girls Clubs.
So, it’s fitting perhaps the name of a 7-year-old sits in first place of the 2016 standings.
Kadyn Carroll selected Corbus Pharmaceuticals Holdings Inc. (Nasdaq: CRBP) and bought it for $1.21 per share when the game started in early February. The shares ended the year at $8.45 each, representing 600 percent growth and a value of $6,983 for the club.
She might have had some help. Carroll is a granddaughter of business guru Jack Stack – and one of seven grandchildren he entered into the fundraising contest. He also played in his name and finished 14 spots behind his granddaughter with his personal stock pick: Western Digital Corp. (Nasdaq: WDC).
“It just goes to show,” he said, “anybody can win.”
Stack of SRC Holdings Corp. has championed the investment fundraiser. After all, it was his brainchild 17 years ago.
Since then, Invest to Invest has raised roughly $965,000 for Boys & Girls Clubs of Springfield, said Chris Whitehead, director of resource development.
“This is our best year to date,” Whitehead said of the 80 participants, 61 of whom posted positive stock gains.
Finishing in second were banker Conrad Griggs and Dee Bachus, who each selected Nvidia Corp. (Nasdaq: NVDA) stock that grew 300 percent. In those cases, a grand upfront produced nearly $4,000 gains.
Considering the Standard & Poor’s 500 index finished the year up around 10 percent, these Ozarks investors proved their Wall Street acumen. The stocks selected by more than half of the participants grew by 10 percent or more.
The trend of the overall market, helped, too, Whitehead said.
“We were so low at the beginning of the year, we really didn’t have much place to go but up,” he said. “People bought stock at such a low price.”
Seven-year-old Carroll also beat plenty of savvy businessmen, such as Ron Stenger, David O’Reilly, Doug Neff and Bobby Allison.
A key factor for the winner’s selection was personal. Carroll, the daughter of Ryan and Katie Carroll, has been diagnosed with cystic fibrosis, and Corbus Pharmaceuticals was conducting drug trials to treat the genetic lung disorder.
“I picked it,” Stack said of his granddaughter’s stock. “I follow all of that and thought it would be real appropriate.”
Supported by a $5 million development award from the Cystic Fibrosis Foundation, the company’s Phase II clinical studies for Resunab were completed in December, and favorable results grew the small stock.
Stock performances deemed unfavorable on the year were Twitter Inc. (NYSE: TWTR), Clorox Co. (NYSE: CLX) and Tractor Supply Co. (Nasdaq: TSCO). At the bottom of the barrel is Ono Pharmaceutical Co. (OTC: OPHLY), which was selected by Jeffrey Brummet and finished down nearly 36 percent to $7.16 per share.
Participants say the contest is lighthearted, and collegial trash-talking is common. Whitehead sends out a monthly report, and the standings fan the flames.
“They’ll start haggling each other, talking about how poorly one’s stock performed,” he said. “It’s fun. The banter back and forth is unique.”
Agricultural businessman and philanthropist Allison put his chips on Tyson Foods Inc. (NYSE: TSN), which basically was flat for the year.
“He’s down there hovering around the bottom with Tyson Foods,” Whitehead said. “A lot of them have played several years. They might play the same stock and one year, it’s in the tank and the next they’re near the top.”
Following a Jan. 24 awards celebration and kickoff, organizers say the next contest begins in February. Whitehead said his program goal is to crack 100 participants.
This might be the year.
“That’s what I say every year,” he said.
In any case, the unique fundraiser has become a staple for Boys & Girls Clubs of Springfield. The current funds will support the new Sertoma Unit at Sherwood Elementary, which Whitehead said takes about $250,000 a year to run.
“It’s one of those ‘no-show balls,’” he said of the Invest to Invest program run over email and with very little overhead. “It’s hard to explain to people. I’ve shared it with other organizations within Boys & Girls Clubs, but to my knowledge we’re the only ones using it.”
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