More than 75% of the stocks in the Dow Jones Industrial Average are
now trading below prices first seen more than a decade ago. Almost
17% first hit today's closing price more than two decades ago.
The worst laggard remains General Motors (GM). My price database only
goes back to 1962 and GM is well below that price. I suspect, based
on recent reports, that you'd have to go back to the 1930s, or perhaps
even earlier, to see similar prices.
Other members of the 20+ club are Bank of America (BAC) at 24.4
years, Citigroup (C) at 23.3 years, Alcoa (AA) at 21.8 years, and
DuPont (DD) at 21.6 years.
The median Dow stock is back to where it was 12.6 years ago.
The table below presents the grim stats. The Earliest column shows the
earliest month in which the stock hit its current price. The Years
column shows the number of years that have elapsed since the date
indicated in the Earliest column.
I also draw your attention to the 13 Dow stocks trading at a P/E ratio
of less than 10.
Stock Price Earliest Years P/E Yield P/B P/S
======= ====== ======== ===== ===== ===== ===== =====
GM $2.00 Pre 1962 50+ - - - 0.01
BAC $3.93 Oct-1984 24.4 7.1 0.8% 0.16 0.50
C $2.51 Nov-1985 23.3 - 1.3% 0.20 0.83
AA $6.35 May-1987 21.8 - 10.1% 0.44 0.19
DD $20.88 Jul-1987 21.6 9.5 7.7% 2.77 0.60
MRK $28.53 Feb-1992 17.1 7.8 5.3% 3.09 2.54
WMT $50.45 Apr-1993 15.9 14.6 2.0% 2.99 0.49
VZ $27.99 Jun-1993 15.7 12.4 6.5% 1.91 0.82
DIS $17.69 Feb-1995 14.1 8.4 2.0% 0.98 0.88
GE $10.06 Jul-1995 13.6 5.9 11.5% 1.05 0.60
T $23.19 Jul-1995 13.6 10.7 7.1% 1.40 1.09
JPM $20.60 Aug-1995 13.6 15.1 7.0% 0.60 1.74
AXP $12.87 Sep-1995 13.5 5.7 5.2% 1.36 0.72
BA $37.57 Nov-1995 13.3 10.3 4.4% - 0.45
KO $43.30 May-1996 12.8 17.4 3.6% 4.82 3.09
INTC $12.68 Oct-1996 12.4 13.8 4.2% 1.90 1.98
PFE $14.03 Oct-1996 12.4 11.7 9.0% 1.42 1.98
MMM $47.07 May-1997 11.8 9.6 4.3% 3.31 1.29
HPQ $31.39 Jul-1997 11.6 9.7 0.9% 2.11 0.70
MSFT $17.91 Jul-1997 11.6 9.6 2.9% 4.67 2.60
CAT $27.02 Aug-1997 11.6 4.8 5.8% 2.81 0.33
HD $20.16 Dec-1997 11.2 11.4 4.5% 1.82 0.45
IBM $88.93 Dec-1998 10.2 10.0 2.2% 9.11 1.18
PG $51.13 Apr-1999 9.9 11.8 3.2% 2.45 1.76
KFT* $24.33 Jun-2001 7.7 12.7 4.7% 1.60 0.84
JNJ $55.93 Aug-2001 7.6 12.3 3.3% 3.39 2.43
UTX $44.72 Dec-2003 5.2 9.1 3.4% 2.66 0.72
CVX $66.68 Jul-2006 2.6 5.7 3.9% 1.54 0.51
XOM $72.16 Oct-2006 2.4 8.3 2.2% 2.92 0.75
MCD $55.31 Sep-2007 1.5 14.7 3.6% 4.82 2.67
Median 12.6 10.0 4.2% 2.01 0.83
Source: Yahoo.com, MSN.com, Feb 19 ,2009.
*Kraft is below its IPO price.
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