Low Tax States and Stock Performance, from Alex Castaldo
We previously looked at the performance of five Bloomberg indexes of companies located in low tax states up until February 10, 2006.
We have now updated the study:
Bloomberg company indexes for low tax states (performance update)
SPX
State PrevDate PrevPrice CurDate CurPrice PrcChg PrcChg
——— ———- ——— ——– ——– —— ——
Arizona 2/10/2006 529.92 5/7/2006 566.90 6.98% 19.14%
Nevada N/A
North Caro 2/10/2006 127.56 5/7/2006 147.73 15.81% 19.14%
South Caro 2/10/2006 148.30 5/7/2006 162.23 9.39% 19.14%
Florida 2/10/2006 135.16 5/7/2006 144.51 6.92% 19.14%
Texas 2/10/2006 395.19 5/7/2006 465.81 17.87% 19.14%
The out performance we noted earlier has not continued in this most recent period. A result probably not inconsistent with natural variation.
Steve Ellison adds:
Might I suggest the following ten stocks to represent Nevada?
Market Price Price
cap ($B) 2/10/2006 5/7/2007
MGM 18.3 38.58 63.71
HET 15.9 72.41 85.21
IGT 13.4 36.84 40.08
WYNN 10.1 59.50 101.85
STN 5.0 67.94 87.57
SRP 4.1 13.56 18.77
BYD 4.0 44.72 45.76
MDG 2.6 23.74 26.01
PNK 1.8 27.98 27.82
CDL 1.0 11.61 9.05
Price-weighted
average 39.69 50.58
Change 27.5%