How long will GM stay in the DOW

[Surefire]

At under $2 per share, maybe it is time for GM to fall off the DOW.

AIG was removed last year as their stock went down the toilet, and there are probably better choices than GM that could be added to the DOW.

I don't see GM going anywhere except sideways in the short to mid term.

 

[miraclefan]

It's STILL in the dow? I geuss the GOV'MENT wants it both ways on this!

 

[Surefire]

^Yeah, and Citi is also in the Dow at under $5.

IMO, these are both very weak companies that are no where near blue chip status anymore.

 

[FordSVT]

The NBC Nightly News on May 6th mentioned insiders who said that GM is currently under review for removal from the DJIA.

It's been in the average for 102 years, longer than any other company by a long shot. You don't just remove it because the stock doesn't do well, it's not a list of well performing stocks, it's representative of an average.

In case you haven't noticed, the average American heavy manufacturing conglomerate isn't doing too shit hot right now.

 

[freak]

I've heard that both GM and Chrysler are no longer gonna be making cars as of next week. This frakkin economy is screwing everyone up.

 

[Holdfast]

I rather think top-flight index membership should be based almost purely on market cap, working like the FTSE-100. Relegate losers, promote winners (reweighting as needed), on a quarterly basis, to keep the index being the largest companies.

Amusingly enough, if you look at the way sports works in the USA compared the UK, you see exactly the same difference as between the share indices. Take football, for instance. In the USA the NFL is made up of franchises which hold places within the league, for as long as the franchise exists and makes enough money. But in the UK, there's a constant mandatory promotion/relegation of teams between leagues with the worst performing teams going down and the best teams of the league below moving up.

I wonder if there's a subconscious relationship between the share indices and sports leagues?

(GM should long ago have been kicked out the DJIA, considering it's already effectively bankrupt)

 

[Emher]

I've heard that both GM and Chrysler are no longer gonna be making cars as of next week. This frakkin economy is screwing everyone up.

No no no. Chrysler has shut down some stuff (the Challenger and Charger is down at the moment since they don't have the money for parts and thus the suplliers refuse to give them parts) but GM is still building. In fact GM is putting on more shifts for the Camaro build in Oshawa, Canada, in just a few weeks.

 

[Hoser]

Chrysler is down while they're in bankruptcy. They're permanently closing some factories as well.
GM is down until after shutdown (July 13?)

I've heard that both GM and Chrysler are no longer gonna be making cars as of next week.

I heard when I got to work. GAH.
I think the only orders my shop had left was a few to a company that needed extra parts while it moved operations to Mexico.

 

[Emher]

Apparantly it is now confrimed that the GM plants in Canada will not be shut down, even though some un the US are taking a break or are shutting down.