Chronicles Of Depression 2.0: #422: Cow Chips

Over 100 U.S. “blue chips” now selling for under $10 a share

No, that’s not Dalmatians but the number of stocks in the U.S. benchmark S&P 500 index now trading for less than $10 a share.

In fact, $10 would get you 10 shares of online broker E*Trade, now the cheapest stock in the index at 98 cents a share. At the other end of this low-ball spectrum you can get a small slice of the garbage business with a share of Allied Waste at $9.90.

In between lies a raft of household names, many formerly held up as blue chips, including Citigroup ($6.40), Alcoa ($8.16), Xerox ($5.58), Motorola ($3.44), Starbucks ($7.97) and Yahoo ($9.14), not to mention beleaguered automakers Ford Motor ($1.26) and General Motors ($2.79).

And:

“This is definitely unusual,” he said. “I think you’d have to go back as far as the 1940s, when $10 was worth more to see a similar number,” he said.

Emphasis added by me.

And:

Twenty-five stocks, or five percent of the index, don’t make the $1 billion mark in market cap, and just 11 exceed the $100 billion level.

In fact, a third of the entire index is not even qualified to be in the index — 186 stocks have market caps under $4 billion, the minimum value for consideration for S&P 500 membership.

Emphasis added by me.

Oh no, there’s no Depression 2.0. Why, no, not at all. This sort of thing happens all the time.

That’s sarcasm, you sleepwalker.

Explore posts in the same categories: C.O.A.T. - Belief, C.O.A.T. - Money, Depression 2.0, Stock Market Crash Watch

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