There are at least 5 other candidates I'd remove from the Dow Jones Industrials.
There's too much overlap, so a transaction counts multiple times, and it doesn't reflect the Industrial performance of the economy.
Among the candidates I see to remove are:
T - a lot of debt, negative tangible common equity. If S&P Indexes adds AAPL, how could they keep AT&T in? It would count a lot of transactions twice. Do we want a major index counting 3 sides of an iPhone sale?
AXP
CSCO
IBM - another company with negative tce
MCD
VZ - having T and VZ made no sense (did they think they were replacing the old landline Ma Bell), but while reassessing the index, and removing T, I'd remove Verizon, too. The VZ balance sheet, after buying out Vodafone's stake in Verizon Wireless, is not on Finance.Yahoo. But at 12/31/13 it was minus $67,000,000,000.
The big hint that AAPL chose the 7:1 after feedback from S & P Indexes, probably means that under $100 will be the new normal, until AAPL gets over $100 post-split.
That would support taking out IBM and MCD, but also V, the only component over $200. There are 10 components priced >$100, MCD is just under it. |
