Should Apple be added as a component of the   DJIA ?

I say “yes”. The company has a diversified portfolio of successful products, is a leader in technology and product R&D and a market cap equal to or greater than several of the existing components.

I say throw out VZ and add AAPL. IMHO it’s time.

Thoughts?

Re: AAPL In The DJIA?

[quote author=“DawnTreader”]Should Apple be added as a component of the   DJIA ?

I certainly agree with your sentiment and your reasoning.  There are no consumer electornics stock in the Dow, and few consumer discretionary stocks.  But I am ambivalent.

The Dow Jones Average is an anachronism.  And because it is price weighted, it is almost useless as an indicator. 

Assuming no split, AAPL would be the highest priced stock in the Dow and thus have more influence in its level than any stock (5X Intel’s and 3X GE’s influence).  Because of that, I doubt it would be added.

For what it’s worth, I also am an advocate of no split.  I think Google has it right.

Re: AAPL In The DJIA?

[quote author=“capablanca”][quote author=“DawnTreader”]Should Apple be added as a component of the   DJIA ?

I certainly agree with your sentiment and your reasoning.  There are no consumer electornics stock in the Dow, and few consumer discretionary stocks.  But I am ambivalent.

The Dow Jones Average is an anachronism.  And because it is price weighted, it is almost useless as an indicator. 

Assuming no split, AAPL would be the highest priced stock in the Dow and thus have more influence in its level than any stock (5X Intel’s and 3X GE’s influence).  Because of that, I doubt it would be added.

For what it’s worth, I also am an advocate of no split.  I think Google has it right.

The impact of adding AAPL to the index is that many large institutions would need to add the stock to their core list of holdings in order to more effectively index the market. That’s increased daily volume and and an increase in the number of institutions that need to own the shares.

Re: AAPL In The DJIA?

[quote author=“DawnTreader”] ... I say throw out VZ and add AAPL ...

Having both VZ and T in DJ is double representation.  About time to add a “consumer electronics” stock in DJ.

Re: AAPL In The DJIA?

[quote author=“Mace”][quote author=“DawnTreader”] ... I say throw out VZ and add AAPL ...

Having both VZ and T in DJ is double representation.  About time to add a “consumer electronics” stock in DJ.

I see it as double representation as well. I suggest the folks at Dow Jones keep T, throw out VZ.

The Financial Times reported in its FT Alphaville blog on Monday that Vodafone was considering such a bid, prompting Verizon’s shares to jump more than 12 percent in premarket trade.  See link .

If true, AAPL is likely to replace VZ in DJ.  IMHO:  Recent AAPL price advances have less to do with iPhone, more to do with weakening Greenback and rumors like this + split + music division + whatever.

It would be better for T to acquire VZ. Much of VZ’s market is regulated and T has learned to survive in that environment. It would be easy for T to spin-off the wireless partnership in order to win regulatory approval of the deal or, spin-off the land line services of both companies as a new entity that provided services only in the regulated markets, freeing T to position as the nation’s top cell service provider.

What is the future for these industries?

[revisiting topic]

So, who do we write a letter to?

[quote author=“dmbream”][revisiting topic]

So, who do we write a letter to?

I think the writing’s already on the Wall.

Re: AAPL In The DJIA?

[quote author=“DawnTreader”]The impact of adding AAPL to the index is that many large institutions would need to add the stock to their core list of holdings in order to more effectively index the market. That’s increased daily volume and and an increase in the number of institutions that need to own the shares.

I fail to see the advantage. Institutional ownership is already quite high.
Please expand on the advantages as you see them.

Re: AAPL In The DJIA?

[quote author=“Play Ultimate”][quote author=“DawnTreader”]The impact of adding AAPL to the index is that many large institutions would need to add the stock to their core list of holdings in order to more effectively index the market. That’s increased daily volume and and an increase in the number of institutions that need to own the shares.

I fail to see the advantage. Institutional ownership is already quite high.
Please expand on the advantages as you see them.

Even more funds will have to buy AAPL, and they will not sell the shares no matter what until AAPL is removed from the dow.  Also I assume it would increase investor confidence in the stock.

Re: AAPL In The DJIA?

[quote author=“WillyPitt”][quote author=“Play Ultimate”][quote author=“DawnTreader”]The impact of adding AAPL to the index is that many large institutions would need to add the stock to their core list of holdings in order to more effectively index the market. That’s increased daily volume and and an increase in the number of institutions that need to own the shares.

I fail to see the advantage. Institutional ownership is already quite high.
Please expand on the advantages as you see them.

Even more funds will have to buy AAPL, and they will not sell the shares no matter what until AAPL is removed from the dow.  Also I assume it would increase investor confidence in the stock.

It would substantially increase average daily volume and compel many institutions to make AAPL a core holding. The only downside is program or index trading that could put pressure on the stock on bearish days.