Drop GM and C from DJIA
Kick GM out of the Dow...now!
Excerpt:
General Motors has a market capitalization of less than $2 billion. The stock, which now trades for a little under $3 a share, hit a 70-year low of $1.70 on Thursday morning before recovering a bit.
Normally, when a blue-chip company sinks to such depths of despair, it gets tossed from the S&P 500. But not only is GM (GM, Fortune 500) still a member of that index, it remains a component of the granddaddy of market barometers: the venerable Dow Jones Industrial average.
Why? Or in the words of mid-'90s self-help guru Susan Powter, "Stop the insanity!" The editors of The Wall Street Journal and Dow Jones Indexes, who decide who's in and who's out of the Dow, soon have to come to grips with reality and remove GM from the DJIA.
Comment: WFC should replace C. DJIA components
I think we may very likely end up dropping one of the big three from existence altogether. As radical as it sounds, I think there's a good chance that they could merge (in what combo I don't know) and we could be down to just 2 automakers. Some really goofy people think there might even be just 1 left when this all gets worked out. I don't see that, but on the other hand, I wouldn't necessarily rule it out.
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