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General Electric gets booted from the Dow
CNN Fake News ^ | 19 June 2018 | Matt Egan

Posted on 06/19/2018 3:50:31 PM PDT by Magnatron

For the first time in 110 years, General Electric will not be a member of the elite Dow Jones Industrial Average.

S&P Dow Jones Indices announced on Tuesday that the iconic maker of light bulbs and jet engines will be replaced in the 30-stock index by Walgreens Boots Alliance.

GE (GE) was an original member of the Dow in 1896 and has been in it continuously since November 7, 1907.

Being ousted from the Dow is the latest indignity for GE, which is dealing with a serious cash crisis caused by years of bad deals. GE has replaced its CEO, slashed thousands of jobs and cut its coveted stock dividend in half.

Last year, GE was the worst-performing stock in the Dow, losing almost half of its value. GE is down by another 25% this year.

"We are focused on executing against the plan we've laid out to improve GE's performance," a GE spokeswoman said in a statement. "Today's announcement does nothing to change those commitments or our focus in creating in a stronger, simpler GE."

To pay down a mountain of debt, GE is selling off long-held businesses. Last month, GE agreed to sell its century-old railroad division. GE is also searching for a buyer for its struggling light bulb division.

GE's stock plunge helped lead to its exit from the Dow. That's because the Dow is price-weighted, meaning that GE's $13 price tag had little impact on the index. S&P noted that GE had a weight of less than half a percentage point.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: djia; dow; dowjones; ge; generalelectric; stockmarket; stocks; walgreens
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To: Magnatron

It does poorly so they kick it out. So, then the DOW is not an index, but a club.

For the DOW to have some meaning it should include all companies’ stocks, not just 30.


21 posted on 06/19/2018 4:47:33 PM PDT by I want the USA back (Liberalism is the denial of human nature.)
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To: Magnatron

Typical trick by the Dow to make sure the index is ever upward. Throw out the company in the downward death spiral, and replace it with an up - and - coming corporation.

The GE board members should be held personally liable for failing to go after the execs that looted the company.


22 posted on 06/19/2018 4:47:43 PM PDT by PAR35
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To: Opinionated Blowhard

Immeldt’s tenure was an unmitigated disaster. Among other horrible strategies, he tried to get GE even more on the government teat for faddish Green Energy and other Obama pet projects. Its sad given where GE was when Welch left.
...
Immeldt and board bet on Obama and Clinton and everything commie and green...I just bought GE...figured my dad who retired from nuclear fuels and 7 patents and 39 yrs (1995 retired) had to have left something good behind at this point price.


23 posted on 06/19/2018 4:48:25 PM PDT by CincyRichieRich (Ruled by lawyers, not by laws...a temporary national illness.)
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To: minnesota_bound

“First thing they should do is fire 10% of the workers....”

In fairness the plan was to cut from the bottom performers and replace them with better ones. Cut from the bottom and add to the top. It was pretty brutal and a lot of good people were let go. Immelt stopped it.


24 posted on 06/19/2018 4:50:18 PM PDT by Brooklyn Attitude (The first step in ending the war on white people is to recognize it exists.)
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To: ncfool

#14 Buy NVIDIA. Stock is steady climber. Was $200 in January and now as high as $265 (recent drop like other stock due to trade war talk).
Look at AMD but don’t buy unless at $10. Recent 6 week rise to near $17


25 posted on 06/19/2018 4:51:13 PM PDT by minnesota_bound
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To: Magnatron

GE fought to make incandescent bulbs illegal so the could sell higher margin energy efficient bulbs. GE can go eff themselves


26 posted on 06/19/2018 4:51:18 PM PDT by HamiltonJay
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To: ncfool
I still have GE stock, and at this point will hold to see what happens. If they fold, I'll have a good loss to write off. Hopefully they come back. They have their fingers in lots of technology, including metal 3-D printing, but need to be managed better.

As regards your comments about Immelt, I'm thinking that the power of proxies needs to be consolidated, maybe with the help of the internet, to start holding people like him accountable - at all companies.

27 posted on 06/19/2018 4:51:23 PM PDT by neverevergiveup
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To: I want the USA back
For the DOW to have some meaning it should include all companies’ stocks, not just 30.

No, just go back to the original members and calculate forward from there. Don't forget to give full current value for US Leather Company.

For companies that have been bought or merged, give full value for their stock at the time they ceased to exist.

28 posted on 06/19/2018 4:54:25 PM PDT by PAR35
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To: PAR35
The GE board members should be held personally liable for failing to go after the execs that looted the company.

You are of course, correct; however, from my experience, corporate boards do not consist of members who ever go against the CEO. Board members are notorious for rubber-stamping the CEO's policies, however stupid.

Immelt is an idiot and let his personal leftist politics ruin a once great company.

29 posted on 06/19/2018 4:56:47 PM PDT by Cuttnhorse (Never fear the cow)
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To: Magnatron

Wow! You really have to be an idiot to get GE booted from the DOW.


30 posted on 06/19/2018 4:57:49 PM PDT by CodeToad
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To: ncfool

Owned GE shares my parents gave me in 1961 at age 2. 10 shares grew to 2400


Had a college roommate in the 60s who had the same deal with IBM stock. Parents bought it for him when he was born and by the 60s he had lots of shares. When I knew him he was “rich”. Wonder how it turned out for him.

I imagine you had quite a bit of capital gains.


31 posted on 06/19/2018 4:58:14 PM PDT by hanamizu
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To: ncfool
Sold in December at $18.00 per share.

Smart move, getting out before it hits the floor. Some time ago, my wife's idiot co-workers talked her into buying in on some stock when it went way down in price, real cheap. I told her no, but she bought in. The stock was Enron, became worthless. I've made a mistake like that myself in the past. When a stock is nosediving, be very careful, and best to not buy in, or cash out and cut your losses.

32 posted on 06/19/2018 5:01:42 PM PDT by roadcat
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To: Magnatron

Does this mean they lose their membership in the super secret Disney Club 33?


33 posted on 06/19/2018 5:02:37 PM PDT by BBell (not drinking, just a smart a$$)
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To: HamiltonJay
GE fought to make incandescent bulbs illegal so the could sell higher margin energy efficient bulbs.

You mean all those CFL bulbs with dangerous mercury? Me and the wife stayed clear of those, glad we did as others have now dumped them in favor of LED bulbs. What a fiasco CFL bulbs turned out to be, and a waste of money (they were very expensive).

34 posted on 06/19/2018 5:05:11 PM PDT by roadcat
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To: Magnatron

This further makes a mockery of the word “industrial.” The industrial average is supposed to be comprised of companies that make things. What exactly does Walgreens make?


35 posted on 06/19/2018 5:08:44 PM PDT by Sgt_Schultze (When your business model depends on slave labor, you're always going to need more slaves.)
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To: Magnatron
the iconic maker of light bulbs and jet engines will be replaced in the 30-stock index by Walgreens Boots Alliance.

How can a drugstore company be called industrial?

36 posted on 06/19/2018 5:16:17 PM PDT by wideminded
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To: roadcat

“What a fiasco CFL bulbs turned out to be, and a waste of money (they were very expensive). “

and with very few exceptions only lasted a tiny fraction of the claimed longevity before burning out ... expensive, toxic, and short-lived ... thank you very much George Bush!


37 posted on 06/19/2018 5:48:05 PM PDT by catnipman ((Cat Nipman: Vote Republican in 2012 and only be called racist one more time!))
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To: bigbob

That’s what you get for blowing Obama.

I spent 22 years with GE. It was the model of efficiency and quality control. When you bought a GE tv, everything in it was made by GE. Now...a GE anything is only assembled by GE.


38 posted on 06/19/2018 5:57:01 PM PDT by Ouderkirk (Life is about ass, you're either covering, hauling, laughing, kicking, kissing, or behaving like one)
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To: bigbob

“5Great job, Immeldt. “

Obama had to keep shaking this prick off his leg for 8 years.


39 posted on 06/19/2018 6:02:32 PM PDT by Bonemaker (invictus maneo)
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To: Trumpet 1

“I have heard good things about Eastern Airlines though.”

Same with Pan Am.


40 posted on 06/19/2018 6:03:45 PM PDT by Bonemaker (invictus maneo)
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