Charles B. Carlson, CFA
The stocks below were the 10 worst-performing Dow stocks in 2007. (The stocks are listed in order starting with the worst performer for 2007.) These stocks represent the Dow Underdog selections at the beginning of 2008. Stock symbols are in parentheses. The stocks below were the 10 Dow stocks with the lowest "close ratios" at the end of 2007. The close ratio represents the ratio of a stock's price to its 200-day moving average price. A variation of my Worst-To-First Strategies focuses on creating portfolios from the 10 Dow stocks with the lowest ratio of current stock price to 200-day moving average price.
Price Change Portfolio Data as of: Close Ratio Portfolio
12/31/07
Citigroup (C) -47.1% Citigroup (C) 0.64
Home Depot (HD) -32.9% General Motors (GM) 0.76
General Motors (GM) -19.0% Home Depot (HD) 0.77
American Int'l Group (AIG) -18.6% American Express (AXP) 0.87
American Express (AXP) -14.3% American Int'l Group (AIG) 0.88
Pfizer (PFE) -12.2% Du Pont (DD) 0.90
JP Morgan Chase (JPM) -9.6% Pfizer (PFE) 0.91
Du Pont (DD) -9.5% Boeing (BA) 0.91
Disney (DIS) -5.8% JP Morgan Chase (JPM) 0.92
Boeing (BA) -1.6% Disney (DIS) 0.95