Comments on: Cisco, Travelers into the Dow

By: Making Money on GM Investment | Bailout and Financial Crisis News

Making Money on GM Investment | Bailout and Financial Crisis News — Sat, 13 Jun 2009 17:40:18 +0000

[...] Cisco, Travelers into the Dow (June 1st, 2009) http://www.ritholtz.com/blog/2009/06/cisco-travelers-into-the-dow/ [...]

By: Making Money on GM Investment | The Big Picture

Making Money on GM Investment | The Big Picture — Sat, 13 Jun 2009 17:22:31 +0000

[...] Cisco, Travelers into the Dow (June 1st, 2009) http://www.ritholtz.com/blog/2009/06/cisco-travelers-into-the-dow/ PERMALINK [...]

By: Aaron

Aaron — Mon, 01 Jun 2009 20:31:49 +0000

I wonder whether deleted DJIA stocks like GM will engage in “”regression to the mean” where GM has no where to go but up in three to five years, causing investors and tax payers to wonder why their expectations were so pessimistic? My opinion could be wrong, though.

By: Matt Phillips

Matt Phillips — Mon, 01 Jun 2009 17:46:50 +0000

General Motors shares will begin trading on the Pink Sheets tomorrow morning, says Cromwell Coulson, CEO Pink OTC Markets Inc., which operates the electronic over-the-counter market. A new ticker symbol will be issued this evening by the Financial Industry Regulatory Authority, known as Finra, Coulson said.

At first GM shares will trade on the Pink Sheets “Current Information” category for companies that are current with SEC filings. Coulson said he expects that GM will eventually moved to the “Limited Information” category, which is designed for companies with financial reporting problems, economic issues or are in bankruptcy.

By: dwkunkel

dwkunkel — Mon, 01 Jun 2009 17:41:45 +0000

For what it’s worth, almost all of Cisco’s manufacturing is done in China and a large amount of its software development is done in India.

By: Barry Ritholtz

Barry Ritholtz — Mon, 01 Jun 2009 17:32:01 +0000

Yes !

By: hr

hr — Mon, 01 Jun 2009 17:03:24 +0000

Barry–

Have you ever written on survivorship bias in regards to the performance of stock indexes?

By: ZackAttack

ZackAttack — Mon, 01 Jun 2009 16:41:54 +0000

Isn’t the irony delicious, since C’s purchase of TRV was what spurred the repeal of Glass-Steagall?

By: DMR

DMR — Mon, 01 Jun 2009 16:11:07 +0000

Nice prediction, BR!

Interestingly, CSCO is the closest we get to a “manufacturing” giant in the internet economy.

By: franklin411

franklin411 — Mon, 01 Jun 2009 14:12:26 +0000

Well, I hope GM comes back to the DOW some day. There’s no reason we can’t make any product made anywhere in the world, and do it competitively without resorting to industrial slavery as they have in China and India. That includes autos. GM and Ford were actually doing rather well WRT restructuring until the credit crisis was followed by the recession.

Let’s not forget that the Japanese aren’t exactly competing freely with us. The Japanese government heavily subsidized their steel industry in the 1980s, which tremendously benefited their auto sector. Not to mention the fact that they had insurmountable trade barriers against our products even as we were opening our doors to a flood of foreign goods dumped on our markets. More recently, the Prius was developed in part with subsidies from the Japanese government. It’s the same story with Airbus.

If GM does not come back, well…I’ll be sad but that’s the life cycle I suppose.