Wall Street, often associated with trading commodities, is becoming a commodity itself.
Sure, once the bear finally comes out of hibernation, all of those bull sweaters and ties will probably be shoved to the back of the closet. But until then, demand for the merchandise has created a hot market, so to speak.
One form of bull-market expression is produced by a San Francisco company called One Share of Stock Inc. As its name suggests, it sells single shares of stock that it frames and calls art.
If an investor wanted to buy a single share of the Coca-Cola Co. on the New York Stock Exchange, he would pay $63.88, its Wednesday closing price, plus commissions. One Share charges $119 for a Coke stock certificate, plus $20 for optional basic framing. Add $11 for shipping and handling, and the framed “art” costs $150.
For a share of the Microsoft Corp., which closed at $142.25 on Wednesday, One Share charges $189. The price with framing, shipping and handling is $220. One Share adjusts its certificate prices quarterly to reflect changing stock prices but may do so more often if a certain stock is particularly volatile.
For an extra $25, the certificate can be encased in a brushed-metal frame under suede matting, which increases the cost of the Coca-Cola share to $175 and the Microsoft share to $245.
“Get the stock, not the rock,” the company’s catalog says, referring to a share of Tiffany & Co. stock. About American automotive concerns, including Goodyear and Ford, it says: “Face it, if it wasn’t for these companies, America might not be the birthplace of cool. No T-Birds, no ’57 Chevys and no whitewall tires. Their stock certificates are truly historical landmarks in America’s success story.”
Well, maybe. But all of the One Share companies are high-profile names that tap into people’s sense of nostalgia and their affinity for certain products.
But today’s market mania is also a selling point. The stock market as measured by the Standard & Poor’s 500-stock index, is up just over 30 percent this year, a period that has been marked by milestones and wild swings.
The Dow Jones industrial average topped 8,000 for the first time in July, dropped 247 points in a single day of trading a month later and has since broken the 8,000 barrier for the second time.
“Enjoy your piece of the action,” the catalog says.
Not surprisingly, One Share and some of its customers argue that the companies’ prices are a bargain.
“If you were to go to any discount broker, you would probably pay $39, and on top of that you would have a delivery fee–and if you want a pristine certificate, they may charge you more,” said D.T. “Spyder” Heaney, a former stockbroker at Pacific Genesis Group in San Francisco who is vice president of One Share. “So you end up paying probably $65 at a discount broker once you add on all the fees. If you go to a full-service broker, the minimum commission is $75 to $100 sometimes.”
And most brokers require investors to open an account before placing a trade. Charles Schwab, the discount brokerage firm, says it will sell single shares, but only to clients with a minimum account of $1,000.
Schwab charges its clients $39 for small transactions and $15 for shipping a certificate. So at Wednesday’s close, a share of Coca-Cola ordered through Schwab would cost $117.88 and framing is not an option (though another public company, Kmart, could sell you one for about $5.)
Heaney declined to disclose revenues for One Share, which is privately held, but he said that sales this year were running twice the 1996 level and that the staff had grown from one full-time employee to seven in the four years since it was founded.
One Share is not the only company capitalizing on market frenzy.
Wall Street Creations, a catalog company in Rome, Ga., offers a variety of merchandise (some of which can be seen on the cover of this section). Button-down investment-banker types go for the company’s vintage currency, like a framed “black eagle” dollar bill from 1899, named for the black eagle on the bill’s face; the price is $195. (A coin dealer, Ray Canales of the Brigandi Coin Co. in Manhattan, said unframed bills generally sold for $150 in mint condition and $60 in good condition.)
The catalog also features a $14.95 coffee mug with a spinning cube on the handle, imprinted with the words “yes,” “no” and a question mark. “Should you buy, sell, hold or jump?” the catalog asks. “You might make some of your most important decisions of the day during your coffee break.”
David Pimper, owner of Wall Street Creations, said it mailed three times as many catalogs for this Christmas as it did in 1996. “I think when the market falls, demand won’t be as strong as it is right now,” he said. “People are caught up in the euphoria a little bit.”
Financial Artifacts, a mail-order company in San Diego, has had a run on vintage stock certificates that it sells for as little as $60 or as much as $500, not including framing and shipping.
“We have people who come in who just love to buy old railroad stocks,” said Diane Gregory, co-president of the company. All the stock certificates are either for defunct corporations or for businesses that are no longer publicly traded or have been acquired. As such, the shares hold value for collectors, but not investors.
The gift store of the New York Stock Exchange is also seeing increased demand. Although the exchange declined to give sales figures, it said 700,000 people went through the shop during tours last year, up from 500,000 just three years ago when the market was not as hot.
Big Board baseball caps and T-shirts are the biggest sellers, along with a reversible bull-and-bear stuffed animal that sells for $14.95. “We think the news value of what has been going on in the market has made a lot of people more interested in what goes on down here,” said Michael Cohen, managing director of advertising and merchandising for the exchange.
