We do not cover every single index change, but we do cover the ones where it looks like it will impact individual stocks. Standard & Poor’s made an index change announcement this evening and noted that it was adding West Pharmaceutical Services Inc. (NYSE: WST) to the S&P SmallCap 600. The change will take place after the close of trading on Thursday, February 28, 2008.
The reason for the change is because Sierra Health Services Inc. (NYSE: SIE) was removed from the S&P SmallCap 600 after today’s close of trading due to its completed acquisition by UnitedHealth Group Inc. (NYSE: UNH).
We at 247WallSt.com prefer index additions such as this one. The reason we prefer "new member adds" like this is because fund managers and investment managers that track the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 Index do not yet own shares of the stock. When these get upgraded from one index to another it often creates close to a net-zero effect or at least a more muted effect.
West Pharma shares closed down 0.3% at $41.70 today, but shares are up 1.7% at $42.40 for its limited after-hours trading and the "bid/ask indications" are both higher than that now. Its 52-week trading range is $35.20 to $54.83. Shares are up over 10% since it released earnings last week.
Jon C. Ogg
February 26, 2008