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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (2166)	10/20/2014 11:10:01 AM
From: Kirk ©	Respond to of 26439

HPQ vs IBM since HP was removed from the DOW and IBM left in... HP Exit From Dow Jones Industrial Signals Revival Challenge bloomberg.com Sep 10, 2013 Hewlett-Packard Co. (HPQ) is being removed from the Dow Jones Industrial Average, a sign of waning confidence in the company’s turnaround efforts amid an historic slump in the personal-computer industry. The exit, announced today as part of the biggest reshuffling of the index since April 2004, delivers another blow to Chief Executive Officer Meg Whitman’s quest to revive growth at the storied PC maker.

To: Kirk © who wrote (2166)	10/20/2014 1:22:01 PM
From: Fintas	Respond to of 26439

The only thing I can state is .. I remember when they used to use words such as BELL WEATHER.. I got a feeling that's going to return soon. I do know this.. OL IBM can bring smiles to ones eyes or TEARS depending on which side the surprise comes.. Hope all is well in Kirk Land. Fintas

To: Kirk © who wrote (2166)	10/20/2014 10:11:15 PM
From: Gottfried	Read Replies (5) \| Respond to of 26439

Kirk, IBM sold disk drives, personal computers [both of which they invented] and now chip fabs to others who presumably can make them profitable - while IBM concentrates on services. If this trend continues, will IBM become a bank?

To: Kirk © who wrote (2166)	10/21/2014 12:52:36 AM
From: ETF1	1 Recommendation Recommended By Kirk © Respond to of 26439

I wonder where the DOW would be today if they threw IBM out rather than HP last year..... Would be interesting to know. Due to the price weighting of the index, currently IBM makes up 7.15% of the index, the second highest weighting after Visa at 8.04% HPQ would have a weighting of less than 1.5% if in today IBM has a YTD performance of -8.17%, and a one year performance of -0.33% HPQ has a YTD performance of +22.53%, and a one year performance of +46.64% The divisor for calculating the value of the Dow 30 changes with stock splits, changes to the composition of the Dow, etc. "The value of the Dow is not the actual average of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which changes.............." en.wikipedia.org

To: Kirk © who wrote (2166)	10/21/2014 3:47:00 AM
From: ETF1	1 Recommendation Recommended By 3bar Read Replies (1) \| Respond to of 26439

I wonder where the DOW would be today if they threw IBM out rather than HP last year..... Kirk, I'm going to take a stab at calculating this: "The current value of the Dow Divisor is 0.15571590501117 as of September 27, 2013. Every $1 change in price in a stock within the average, results in a 6.42 (1/0.15571590501117) change in the DJIA" en.wikipedia.org The Wall Street Journal online confirms that the Dow divisor stated above is still correct today: 30 INDUSTRIALS: (divisor: 0.15571590501117) online.wsj.com HP was removed from the Dow after the market close on Sept. 20, 2013. Let's assume that IBM was removed and HP stayed. 09/20/13 closing price of HPQ: 21.22 10/20/14 closing price of HPQ: 33.82 Dollar Change: 12.60 09/20/13 closing price of IBM : 190.02 10/20/14 closing price of IBM : 169.10 Dollar Change: -20.92 Difference between dollar change in IBM vs. HPQ: $33.52 33.52 * 6.42195 = 215.26 Dow points The Dow closed Monday 10/20/14 at 16,399.67 Had HPQ stayed and IBM left at the close on 9/20/13, the Dow would be at 16,614.93 The Dow would be 1.3% higher