Great Danes of the Dow

By: Adrian Burridge | Mon, Aug 14, 2006
Print Email

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
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%

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



Adrian Burridge

Author: Adrian Burridge

Adrian Burridge Inc. provides independent research on the North American equity markets. Inc. has no relationship with underwriters who issue equity to protect their larger loans. All positions are disclosed to subscribers. Inc. has been providing research on the internet since December 1999. Sign up today for your two week free trial.

The information presented in this publication is drawn from sources believed to be reliable, however the accuracy or completeness of this information is not guaranteed. Neither nor any of its affiliates accepts any liabilities whatsoever for any loss resulting from the use of this publication or its content.

It should not be assumed that the past performance of any companies featured in this publication will equal future performance. is under no obligation to update information contained within this publication. does not accept fees or benefits of any nature from any corporation for the selection of the company within this publication. The information contained herein is for information purposes only. This publication does not constitute an offer to sell or the solicitation of an offer to buy any securities. is not designed to counsel individual investors; those seeking specific investment advice should consider a qualified investment professional.

Copyright © 2005-2009 Adrian Burridge and All rights reserved.

All Images, XHTML Renderings, and Source Code Copyright ©