LI companies strugglealong with national economy

Investors in stocks of Long Island companies were not spared the sledgehammer that has hit major indexes nationwide in the first six months of this year as buyers took cover in the wake of a still-struggling economy and relatively high rates of unemployment.

The Newsday Long Island Bloomberg Index, which was developed with a base value of 100, fell 7 percent, to 157.52, on June 30. The Island index of 65 publicly traded companies mirrored the 30-stock Dow Jones industrial average, which was down 7.11 percent in the first half of this year.

The Standard & Poor's 500 index was down 8.30 percent, and the tech-laden Nasdaq was off 7.82 percent.

The five biggest losers on the Island were Bovie Medical Corp. of Melville, Smithtown Bancorp Inc. of Hauppauge, FalconStor Software Inc. of Melville, Nu Horizons Electronics Corp. of Melville and CVD Equipment Corp. of Ronkonkoma.

Bovie, which in May reported first-quarter lower revenues and a net loss compared with a gain in the same period a year ago, was hammered by investors. Bovie shares were $8 in mid-January, and fell to $2.79 by June 30.

Smithtown Bancorp, which in May reported its second consecutive quarter with multimillion-dollar losses, wound up the six-month period with its stock at little over $2, down from close to $3.

FalconStor reported lower first-quarter sales, and investors sent the stock down to about $2.50, from about $2.60.

Nu Horizons in May recorded a lower net loss in its most recent quarter and higher revenues, but investors still sold, sending the stock from a high of about $4.50 in January to about $3 at the end of June.

CVD Equipment chief executiveLeonardRosenbaum told investors in April that the company's 2009 fiscal year was "difficult with unfavorable economic conditions." The stock dropped from about $4.30 in January to about $3.50 by the end of June.

Winners included Arbor Realty Trust of Uniondale, Hauppauge Digital Inc., Lifetime Brands Inc. of Garden City, One Liberty Properties Inc. of Great Neck and CPI Aerostructures Inc. of Edgewood. Arbor said in May it went from a first-quarter loss to a gain. Shares soared to $5.45 at June's end, from $1.91 in January.