Charles B. Carlson, CFA

The list below ranks the 30 Dow stocks on the ratio of stock price to 200-day moving average price, from the lowest ratio to the highest ratio. The 10 Dow stocks with the lowest ratios are highlighted. 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 (1-stock, 3-stock, 5-stock, or 10-stock portfolios). For example, if you want a 3-stock portfolio, buy the first three stocks in the list and hold for 12 months.

FURTHEST FROM 200-DAY MOVING AVERAGE (Data as of: 7/28/2010)

Company Name	Ticker	Recent Price $	YTD % Price Change	Close Ratio
ALCOA INC	AA	11.04	-31.5	0.840
BANK OF AMERICA CORP	BAC	13.99	-7.1	0.872
PFIZER INC	PFE	15.00	-17.5	0.882
MICROSOFT CORP	MSFT	25.95	-14.9	0.911
EXXON MOBIL CORP	XOM	60.91	-10.7	0.916
JOHNSON & JOHNSON	JNJ	57.83	-10.2	0.924
HOME DEPOT INC	HD	28.08	-2.9	0.925
HEWLETT-PACKARD CO	HPQ	47.13	-8.5	0.949
CISCO SYSTEMS INC	CSCO	23.39	-2.3	0.963
WAL-MART STORES	WMT	51.13	-4.3	0.967
MERCK & CO	MRK	34.74	-4.9	0.967
JPMORGAN CHASE & CO	JPM	40.32	-3.2	0.971
VERIZON COMMUNICATIONS INC	VZ	28.91	-12.7	0.973
GENERAL ELECTRIC CO	GE	16.05	6.1	0.980
CHEVRON CORP	CVX	75.56	-1.9	0.997
INTL BUSINESS MACHINES CORP	IBM	128.43	-1.9	1.008
COCA-COLA CO	KO	54.88	-3.7	1.009
AT&T INC	T	26.20	-6.5	1.012
PROCTER & GAMBLE CO	PG	62.70	3.4	1.013
INTEL CORP	INTC	21.33	4.6	1.020
UNITED TECHNOLOGIES CORP	UTX	71.11	2.4	1.025
KRAFT FOODS	KFT	29.72	9.3	1.034
DISNEY (WALT) CO	DIS	34.04	5.6	1.046
MCDONALD'S CORP	MCD	69.77	11.7	1.061
3M CO	MMM	86.69	4.9	1.068
BOEING CO	BA	67.32	24.4	1.075
AMERICAN EXPRESS CO	AXP	44.58	10.0	1.091
DU PONT (E I) DE NEMOURS	DD	40.27	19.6	1.135
CATERPILLAR INC	CAT	69.72	22.3	1.148