Friday, March 12, 2010

How Have the High Priced Shares Performed?

Back 0n August 21, 2008, we published an article called Top High Priced Share Stocks, which listed all the stocks trading in excess of $100 a share, that had P/E ratios less than 20, PEG ratios less than 1, market caps above $15 billion, and all but one paid a dividend. Remember, this is just before the market took its big dump.

Surprisingly, an interesting correlation turned up. The higher the higher priced shares, the better the return, and the shares that traded close to the $100 breakpoint did the worse. All the stocks that traded under $135 per share were down, and the others were up.

Goldman Sachs Group, Inc. (GS) the large investment banking firm, had the highest priced shares on the list at about $154 per share. It is now trading at $175, an increase of 14%.

CNOOC Limited (CEO) is the explorer and producer of crude oil and natural gas off the coast of China which was trading at $143 per share. It is now at $165, a 15% increase.

Transocean Inc. (RIG) provides offshore contract oil and gas drilling services. It was trading at about $133 per share, and is now at $85, down 36%.

Diamond Offshore Drilling, Inc. (DO) is another offshore oil and gas drilling contractor including deepwater drilling traded at $114 per share. The stock is now at $89, down 22%.

Siemens AG (ADR) (SI) is the huge German electronics and electrical engineering conglomerate. It traded for $110 per share. It is now at $94, a 15% drop.

Hess Corp. (HES) is a developer and producer of oil and natural gas. It traded at $109 per share. The stock is now at $61, a drop of 44%.

Continental AG (CTTAY.PK) is a German auto parts maker. It was trading at $103 per share. The stock is now at $51, a 50% drop.

If you like really high priced shares of stock, you should check out the list at

Author does not own any of the above.


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