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Google at the S&P Gates

Jim Cramer

The pressure on the S&P keepers must be enormous. They had put out subtle words that say you can't be in the S&P 500 if you have too much float controlled by a few people. That kiboshed hope that Google(GOOG) could be added.

But then Google does the biggest secondary of all time. There goes that excuse.

Now, it's test hour for the S&P. Are the keepers going to continue to try to say that the index is representative without a $90 billion company that is going to earn $7 a share next year and has a hammerlock on lots of commerce? The idea that a Tribune or a Knight-Ridder is in without Google seems a little absurd when you think about it.

Tomorrow G goes away. That's right, the Gillette(G) deal with Procter & Gamble(PG) closes. A $60 billion company comes out of the S&P. The moment is at hand. This is a godsend to the keepers, a gigantic company comes out, with lots of cash, so a new company can come in and it will roil the market much less than it would otherwise. Plus it is the end of the quarter.

Fortuitous.

Will the S&P keepers respond?

I think so.

Still one more reason, albeit short-term, to own this stock.

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