Seeking Alpha

Allegion to replace J.C. Penney in S&P 500

  • Ingersoll-Rand (IR) home/business security spinoff Allegion will be taking struggling J.C. Penney's (JCP) place in the S&P 500. Deutsche recently raised this possibility.
  • J.C. Penney will subsequently join the S&P 400. The change will take place following the Nov. 29 close.
  • JCP -1.4% AH.
Comments (7)
  • Qniform
    , contributor
    Comments (2460) | Send Message
     
    Some unanticipated selling pressure.
    22 Nov 2013, 06:01 PM Reply Like
  • markrpat
    , contributor
    Comments (197) | Send Message
     
    Headline news in "battle ground" stocks works both ways. Tough to anticipate.
    22 Nov 2013, 06:18 PM Reply Like
  • Nitrexx11
    , contributor
    Comments (64) | Send Message
     
    Does this really effect the company and stock at all in actuality?
    22 Nov 2013, 08:21 PM Reply Like
  • Qniform
    , contributor
    Comments (2460) | Send Message
     
    Well, some of the largest mutual funds and ETFs are S&P 500 index funds. So, I'd say yes, this will put selling pressure on the stock. The real question is the timing that affects each fund, e.g. must they immediately sell when the stock is dropped.

     

    It is not a good thing, but I'm sure someone will have a reason to ignore it and look at something positive. Good luck to that.
    22 Nov 2013, 10:16 PM Reply Like
  • Nitrexx11
    , contributor
    Comments (64) | Send Message
     
    I know its not exactly apple to apples but AA is up around 15% since getting booted from the Dow. Although, what you say makes 100% sense.
    22 Nov 2013, 10:34 PM Reply Like
  • Qniform
    , contributor
    Comments (2460) | Send Message
     
    The Dow is not a widely used index in fund composition.

     

    BTW, I think AA was a screaming buy at $7.70. No one is starting up a business like that very easily, and aluminum isn't going away any time soon.
    22 Nov 2013, 10:40 PM Reply Like
  • Nitrexx11
    , contributor
    Comments (64) | Send Message
     
    oh yeah, agree with you on AA. I think once the new storage regulations go into effect they'll flush out some supply and ultimately raise the price of aluminum. KK has done a remarkable job considering, unlike RJ
    22 Nov 2013, 10:58 PM Reply Like
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