The market-watchers at Thomson Reuters seem to think a heading-toward-bankruptcy "Dollar Menu-priced" GM may be dropped from the list of 30 stocks comprising the DJIA. Will Google, Apple or Amazon replace it?
It's not just GM facing a cut as the weakest link in the 30-company Dow Jones Industrial Average. Citibank, along with three other companies in the list are also trading at less than a buck a share. Expectations are both GM, a member of the Dow 30 since August 31st, 1925, and Citi, a member since 1997 (when it was then called Travelers Group), will likely see their names cut from the storied blue-chip tracking index. But who will take their place in the Dow?
Mostly likely, another company whose stock is faring better or relatively better in this recessionary environment. Reuters says:
"There aren't too many of those but if I had to guess, I'd say it would have to be a company with a strong brand name and one that is viewed as influential. Also, one whose shares aren't trading in the single digits.
"On the technology front, Apple and Google are possible contenders. In the pharmaceuticals/biotech world, perhaps Abbot Labs, Amgen, Bristol, Genentech and Gilead Sciences could be considerations. If terms of other industries and companies, perhaps Monsanto or Amazon?
Hmm, guess that Thomas Friedman guy was right, Apple is the new GM. At least as far as potential Dow 30 stocks go. [Reuters]