Skip to main content

Mad Money Mailbag: Tough Love for Google

A viewer gets Cramer's take why Google hasn't been added to the S&P 500.

Editor's note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EDT on CNBC.

Why is Google (GOOG) - Get Free Report not yet in the S&P 500? Does McGraw-Hill (MHP) , parent company of Standard & Poor's, have a bias against the company?-- Tom from Pennsylvania

James J. Cramer:

In a way, yes it does. That said, it is because of a certain selection criterion S&P has for the index. S&P wants stocks where a large percentage of the shares outstanding trade freely. In Google's case, co-founders Sergey Brin and Larry Page each control about 25% of the float, significantly cutting the actual share base available for trading. In the meantime, S&P seems content with adding companies much smaller than Google when it needs a replacement. If you believe this seems harsh, S&P also no longer has foreign companies in the index.

What are the names of some good cement stocks?-- Judy from Arizona

James J. Cramer:

I'd actually look south of the border to find my favorite cement company, Mexico's


(CX) - Get Free Report


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here