We have seen several announcements out of Standard & Poors regarding index changes today, with the effective dates as follows:
- DreamWorks Animation SKG Inc. (NYSE: DWA) will now replace Millennium Pharmaceuticals Inc. (NASDAQ: MLNM) in the S&P MidCap 400 after the close of trading on Thursday, May 8, as Millennium’s acquisition by Takeda is expected to close on or about that date.
- HealthSpring Inc. (NYSE: HS) will now replace Franklin Bank Corp. (NASDAQ: FBTX) in the S&P SmallCap 600 after the close on Wednesday, May 7…. Franklin has a market cap of a mere $26 million and has the 600th worst weighting in the index.
- Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) will replace Matria Healthcare Inc. (NASDAQ: MATR) in the S&P SmallCap 600 on a T.B.A. basis, pending Inverness Medical Innovations (AMEX: IMA) final approvals to acquire Matria.
As a reminder, traders that look at index additions and deletions generally like to focus on stocks that are coming in fresh into the S&P that were not a member of the S&P 1500 comprised of small-cap, mid-cap, and 500-Index members already.
Jon C, Ogg
May 5, 2008