Thursday, November 27, 2008

S&P 500 Stocks With Market Cap Less Than $1 Billion

As a follow up to my earlier post today on Liz Claiborne's (LIZ) upcoming removal from the S&P 500 Index on December 1, 2008, following is a list of stocks in the S&P 50 with market caps below $1 Billion. Are these stocks potential candidates to be removed from the Index?




2 comments :

Ethan Bloch said...

Thanks for breaking this out. Will definitely be interesting to see what happens to some of these firms.

I should note however, that Market Cap. is not a criteria for companies in the S&P 500. Here is a direct quote for their criteria documentation:

"Finally, for the S&P 500 there are no capitalization restrictions. The guiding principle
for inclusion in the S&P 500 is leading companies in leading US industries."

It goes on to state companies are usually over $4b in market cap, but that this is not a carved in stone requirement.

Cheers.

Ethan

David Templeton, CFA said...

Ethan,

Thanks for the comment. I agree with your points completely. S&P does attempt to keep the Indexes within their proper market caps, i.e., small cap mid cap etc. It will be interesting to see how the index composition changes over the next 6 to 9 months.

Cheers.
David