There is no such thing as a permanent seat on the S&P 500 (^GSPC 0.52%). As 17 companies learned this year (see table below), they must earn their keep or face expulsion. In the following video, Motley Fool contributor John Maxfield discusses why he thinks the next stocks to be expelled could be Cliffs Natural Resources (CLF -0.40%), Newfield Exploration (NFX), and TECO Energy (NYSE: TE).
Date |
Removed |
Replaced By |
Reason for Removal |
---|---|---|---|
April 30 |
MetroPCS Communications |
Regeneron Pharmaceuticals |
Merged with T-Mobile USA, dropping public float below 50% threshold |
May 8 |
Coventry Health Care |
The Macerich Co. |
Acquired by Aetna |
May 23 |
Dean Foods |
Kansas City Southern |
Equity interest in WhiteWave Foods spun off, making Dean Foods "more representative of the midcap market space" |
June 6 |
H. J. Heinz Co. |
General Motors |
Acquired by Berkshire Hathaway |
June 21 |
First Horizon National |
Zoetis |
Insufficient market capitalization |
June 28 |
Apollo Education Group |
News Corp. |
Insufficient market capitalization |
July 8 |
Sprint Nextel |
Nielsen Holding |
Deal with Japan's SoftBank dropped public float below 50% threshold |
Sept. 10 |
BMC Software |
Delta Air Lines |
Acquired by private equity firm Bain Capital |
Sept. 20 |
Advanced Micro Devices |
Vertex Pharmaceuticals |
Insufficient market capitalization |
Sept. 20 |
Science Applications International Corp. |
Ametek |
Split into two companies: SAIC and Leidos Holdings |
Oct. 28 |
Dell |
Transocean |
Taken private by founder-led buyout |
Nov. 1 |
NYSE Euronext |
Michael Kors |
Acquired by Intercontinental Exchange |
Nov. 29 |
J.C. Penney |
Allegion |
Insufficient market capitalization |
Dec. 9 |
Molex |
General Growth Properties |
Acquired by privately held Koch Industries |
Dec. 20 |
Abercrombie & Fitch |
Alliance Data Systems |
Insufficient market capitalization |
Dec. 20 |
JDS Uniphase |
Mohawk Industries |
Insufficient market capitalization |
Dec. 20 |
Teradyne |
|
Insufficient market capitalization |
Source: S&P Dow Jones Indices.