Washington Redskins owner Daniel Snyder's decision to give up his day job and put up for sale the business that made him rich enough to buy the team sent shares of Snyder Communications Inc. soaring on Friday.
Snyder's stock, which has performed more like last year's Redskins than this year's team, jumped to $19 from slightly less than $16 Friday after the founder hired Deutsche Banc Alex. Brown to seek offers for the Bethesda marketing company.
The stock, however, stopped well short of the $25-a-share price Snyder reportedly has been offered by an unnamed buyer, an indication investors aren't yet counting on getting that much for their stock.
Snyder's stock hit $53.43 3/4 last April, but soon went into a long losing streak that drove it to less than $10 a share in October. The stock had crawled back to about $14 a share last week before word got out that the company might be sold.
As usual, some traders got wind of the possible deal early, producing heavier-than-usual trading Tuesday and a big increase in volume Wednesday. That pushed the shares up about $1 each day. On Friday the official announcement added more than $3 to the price, giving a quick profit to those who bought the stock earlier.
Technology stocks continued to soar during the week, pushing The Washington Post-Bloomberg regional stock index up by almost three points to 178.24, a gain of 1.7 percent.
The week's most significant loser in the market was CSX Corp. of Richmond. The railroad company warned investors Tuesday that its fourth-quarter profit might prove to be as little as one-third the amount analysts had been estimating. Analysts quickly cut their earnings estimates, which sent the stock plunging.
CSX said Hurricane Floyd hit its lines hard and it continues to be plagued by logjams on the lines it took over from Conrail last summer. The delays leave engines and crews idling, running up costs.