Should Apple replace GM in the Dow?

“While the fate of General Motors as a company is being debated by legislators and others, investors would agree that GM will be removed from the Dow Jones Industrial Average as the common stock faces the likely prospect of heading to zero despite efforts for a bailout of workers and suppliers,” Mike Havrilla writes for Seeking Alpha.

Among a short list of companies (Abbott Labs, Amgen, Cisco) to consider as a replacement for GM on the Dow, Havrilla also suggests Apple Inc.

Apple (AAPL) has emerged as the technology bellwether and stock market leader, soaring over 900% in the past 10 years and its iPhone is outselling Motorola (MOT) and Research In Motion (RIMM) while its Mac and iPod brands continue to gain market share.

Full article here.

55 Comments

  1. Japanese car lovers are so anxious to put GM out to pasture.

    General Motors isn’t going anywhere. They’ll come back stronger than ever now that the Democrats, friends to the American worker, are fully in charge.

  2. “They’ll come back stronger than ever now that the Democrats, friends to the American worker, are fully in charge.”

    So the only thing holding GM back was the dastardly Republicans in the White House? It had nothing to do with GM’s sales, profits, products, business plan, cost management, or company management?

    So I guess we can assume the last 8 years of Apple is all thanks to George W Bush?

  3. R2,

    You are either joking or you’re one delusional A-hole.

    What’s really going on: After destroying it with regulations, the government is preparing to take over the auto industry.

    And I’ll trade my BMW for something from GM when you pry the steering wheel out of my cold, dead fingers.

    MDN Magic Word: “present” – As in, Obama’s favorite vote.

  4. There are too many causes of the Big-Three auto makers’ decline to blame it simply on Republicans or Democrats. How about consumers who had to have a big car or an SUV, both of which sucked down a bunch of gas and now costs a fortune to fuel?

    People are on waiting lists for Toyota’s Prius because of its fuel economy. The Japanese had the wisdom to look beyond instant gratification and ego. Too bad many Americans were more concerned with image and ego.

  5. You make junk, so you can’t sell it, so then you fail.

    Unless you get too big, then you get a Democrat bailout.

    That way, you can continue to make junk, eventually fail again and then you get another Democrat bailout.

    It’s like public housing and Welfare: it never ends – until a Republican revolution rolls around to clean up the mess.

    The next one is due to begin in two years with the midterm elections.

  6. It’s being TOO friendly to the American worker that got GM (and the others in Motown) in the pinch they are in. Defined benefit pensions, etc., etc., etc., etc., etc., etc…

    Then enter the perfect storm of a huge spike in fuel prices (but how big of a factor was that since gas is now $2 again and auto sales are still tanking) and financial crunch and they just can’t take it anymore. It was even too much for the likes of Honda and Toyota.

    In places around the world where GM is not so interfered with by the host government WRT fuel standards and labor concessions, they are extremely successful. They are able to find a balance and do very well.

    GM and its stock are a representative of the old manufacturing era of the USA. If that is still need on the Dow to be reflective of the broad economy then they should stay on. The Detroit 3 directly employ about 200,000 people and indirectly (suppliers, etc) about 3,000,000. Still pretty relevant even if they are old-line manufacturing.

    The stock will come back. They are all waiting for 2010 when a lot of labor concessions kick in…in other words, when things are less friendly to the American worker of GM, but still better than the American worker for Toyota. We shall see.

  7. twilightmoon, you jackass. How do you draw from my statement that Republicans are responsible for GM’s situation?

    My point was that Dems won’t allow one of our most important American companies to fall, as opposed to the Bush administration who refused to even meet with the Big Three CEOs until last year.

    GM collapsing means millions of American jobs lost. Barack Obama and the Democrats are clearly more cognizant of the company’s worth to an already struggling economy. Republicans don’t give a damn.

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