Cisco Joins Dow Jones Blue Chips

 
 
By Chris Preimesberger  |  Posted 2009-06-01 Email Print this article Print
 
 
 
 
 
 
 

Although replacing General Motors in the elite 30-company Dow Jones Industrial Average group doesn't automatically translate to more dollars in Cisco Systems' bank accounts, it does provide the data networking giant with a virtual shot in the arm in terms of company morale and respect from the business community in general.

Cisco Systems, a profitable and steady-riding IT infrastructure provider for nearly 20 years, gained a world of prestige in the global business community on June 1 when it was named to join Dow Jones Industrial Average lineup of 30 publicly traded companies.

Cisco will replace long-embattled General Motors on the list beginning June 8; GM opted for Chapter 11 bankruptcy protection on June 1. At the same time, the Travelers Companies insurance conglomerate will replace struggling banker Citigroup on the list.

"A bankruptcy filing immediately disqualifies a stock, regardless of a company's history or its role as a cultural icon," Robert Thomson, managing editor of The Wall Street Journal and editor-in-chief for all of Dow Jones, wrote in the Journal.

Cisco will join fellow IT infrastructure companies IBM, Intel and Hewlett-Packard and telecommunications companies AT&T and Verizon Communications in the Dow Jones group.

Although being named to the elite group doesn't automatically translate to more dollars in Cisco's bank accounts-although Cisco's stock price did improve by 6 percent to about $19.60 on June 1-it does provide the data networking giant with a virtual shot in the arm in terms of company morale and respect from the business community in general.

Nonmaterial benefits such as those are "priceless," as MasterCard might say.

Cisco, like most other enterprises, has had to navigate uncharacteristically rough roads in this recessionary economy. The world's biggest supplier of IT networking hardware and software has endured sales-performance slippage during the last six months, with its income falling 22 percent during the fiscal quarter that ended April 25. So the Dow Jones encouragement is a salve of sorts during a tough time.

"Cisco is honored to be included in the Dow Jones Industrial Average," Terry Alberstein, Cisco's senior director of corporate public relations, wrote in an e-mail. "We believe our inclusion in the Dow demonstrates not only Cisco's role as a broad technology indicator but how remarkably the Internet and networking have transformed the way businesses and consumers connect, communicate and collaborate."



 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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