SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: mr.mark who wrote (43952)7/15/2000 2:54:51 PM
From: twillowy  Read Replies (4) of 45548
 
mr.mark, about S&P500 Index inclusions and/or exclusions:
(from spglobal.com

General Guidelines for Adding Stocks to the S&P Indices
Market Value: S&P Indices are market-value weighted.
Industry Group Classification:
Companies selected for the S&P Indices represent a broad range of industry segments within the U.S.economy.
Capitalization:
Ownership of a company's outstanding common shares is carefully analyzed in order to screen out closely-held companies.
Trading Activity:
The trading volume of a company's stock is analyzed on a daily, monthly, and annual basis to ensure ample liquidity and efficient share pricing.
Fundamental Analysis:
Both the financial and operating condition of a company are rigorously analyzed. The goal is to add companies to the Indices that are relatively stable and will keep turnover low.
Emerging Industries:
Companies in emerging industries and/or new industry groups-industry groups currently not represented in the Indices-are candidates as long as they meet the guidelines listed above.

General Guidelines for Removing Stocks from the S&P Indices

Merger, Acquisition, LBO:
A company is removed from the Indices as close as possible to the actual transaction date.
Bankruptcy:
A company is removed from the Indices immediately after Chapter 11 filing or as soon as an alternative recapitalization plan that changes the company's debt/equity mix is approved by shareholders.
Restructuring:
Each company's restructuring plan is analyzed in depth. The restructured company as well as any spin-offs are reviewed for Index inclusion or exclusion.
Lack of Representation:
A company can be removed from the Indices because it no longer meets current criteria for inclusion and/or is no longer representative of its industry group.


It is up to S&P folks to decide which company is in and which one is out following above criteria. IMO PALM will be included because of the market cap. and trading volume. I have no clue though if it is going to happen prior to 27/7. I am sure that there is a pressure behind the door on S&P folks from the big guys who have underwritten the spin-off to do just that and, IMO, Russell Midcap 2000 gives them extra ammunition. After all, there are being paid big bucks from shareholder money to make sure that it is done right.
It will better be..

Regards,
twillowy
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext