• 658 days Will The ECB Continue To Hike Rates?
  • 659 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,060 days Could Crypto Overtake Traditional Investment?
  • 1,065 days Americans Still Quitting Jobs At Record Pace
  • 1,067 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,070 days Is The Dollar Too Strong?
  • 1,070 days Big Tech Disappoints Investors on Earnings Calls
  • 1,071 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,073 days China Is Quietly Trying To Distance Itself From Russia
  • 1,073 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,077 days Crypto Investors Won Big In 2021
  • 1,077 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,078 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,081 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,084 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,085 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,085 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,087 days Are NFTs About To Take Over Gaming?
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Adrian Burridge

Adrian Burridge

CanadianInvestors.com Inc. provides independent research on the North American equity markets. CanadianInvestors.com Inc. has been providing research on the internet since December 1999.

Contact Author

  1. Home
  2. Markets
  3. Other

Great Danes of the Dow

TWIST ON THE DOGS OF THE DOW THEORY. I call it the GREAT DANES OF THE DOW based on those dogs that are just too big because they have the most shares outstanding. Those with the most shares outstanding in the DOW 30 have underperformed in 2006 while those with the fewest shares outstanding (POODLES) have outperformed. It does confirm however, that demand and supply still matter. I have not back tested it further than 2006 and I have yet to test it on the S&P 500. Here however are the results. Notice as well that the top 6 components represent 48% of the total shares outstanding of the DOW 30 while the bottom 6 components represent 4.8% of the total shares outstanding of the DOW 30. I showed you yesterday that total shares outstanding in the DOW 30 are more than 92 billion, not including share options et al. (not including dividends).

Top 6 DOW components by shares out. (Rounded) Stock Price
Dec. 30th, 2005
Stock Price
July 6th, 2006
YTD
Performance
GE 10,400,000,000.00 35.05 33.50 -4.42%
Microsoft 10,200,000,000.00 26.15 23.50 -10.13%
Pfizer 7,030,000,000.00 23.32 23.75 1.84%
Exxon 6,050,000,000.00 56.17 63.50 13.05%
Intel 5,820,000,000.00 24.96 18.90 -24.28%
Citigroup 4,970,000,000.00 48.53 49.21 1.40%
Average -3.76%
 
Bottom 6 Dow Components by shares out.
Alcoa 870,000,000.00 29.57 33.50 13.29%
Honeywell 830,000,000.00 37.25 39.80 6.85%
Boeing 800,000,000.00 70.24 80.50 14.61%
MMM 750,000,000.00 77.50 81.25 4.84%
Caterpillar 670,000,000.00 47.77 73.50 53.86%
GM 570,000,000.00 19.42 29.25 50.62%
Average 24.01%

Conclusion
Sell all stocks with more than 1 billion shares outstanding and only buy stocks with under 1 billion shares outstanding.

Try your two week free trial today at www.canadianinvestors.com.

 

Back to homepage

Leave a comment

Leave a comment