"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 20 hours Institutional Investors Hold A Lot More Crypto Than You Think
  • 21 hours U.S. Treasury Yields Could Be About To Break Out
  • 22 hours Tesla Stock Stumbles On Model 3 Cancellations
  • 23 hours Yuan Rebounds At The Expense Of The U.S. Dollar
  • 1 day Iraq Unplugged: No Internet, No Protests, No Money
  • 1 day The Tariff War Could Spark A Debt Crisis In China
  • 2 days Gold Selloff Continues As Dollar Climbs Higher
  • 2 days Gold Investors In A Frenzy Over Sunken Russian Warship
  • 2 days The New King Of Electric Cars
  • 2 days BlackRock Goes Bitcoin
  • 2 days U.S. Banks See Best Earnings Report In Years
  • 2 days The Case For Gold Is Not About Price
  • 2 days Stock Market Sentiment Turns Bullish
  • 3 days What Is Bitcoin Really Supposed To Be?
  • 3 days The Surprising Media Giant Taking On Netflix
  • 3 days Cybersecurity Stocks Are Red-Hot As Election Looms
  • 3 days Americans Grow Weary Of U.S. Trade Policy
  • 3 days What Putin Really Wants From Trump
  • 3 days Europe’s EV Sales Growth Is Slowing
  • 3 days The Looming "Hyper-War"
3 Reasons Small-Cap Stocks Are Booming

3 Reasons Small-Cap Stocks Are Booming

As major market indexes waiver,…

The Biggest Winners Of Q2 Earnings Season

The Biggest Winners Of Q2 Earnings Season

The second quarter of 2018…

Chinese IPO Fervor Slows As Xiaomi Disappoints

Chinese IPO Fervor Slows As Xiaomi Disappoints

The Chinese IPO space was…

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

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