Making Sense of the S&P 500

The folks at Cramer Berkowitz take a look at some stocks that arguably <I>should</I> be included in this index.
Author:
Publish date:

You think you saw fireworks with Yahoo! (YHOO) ? Just take a look at who isn't in the S&P 500 who should be, and you will understand the craziness that awaits us.

Join the discussion on

Cramer's Latest

Yahoo! Board

Take

JDS Uniphase

(JDSU)

, with $45 billion in market cap. That makes a ton of sense to go in. Or

Amazon

(AMZN) - Get Report

with $29 billion.

Veritas Software

(VRTS) - Get Report

has a nice little market cap of $27 billion.

Level 3

(LVLT)

with $24 billion in heft can't logically be excluded. Nor can incubators

Internet Capital Group

(ICGE)

and

CMGI

(CMGI)

at $21 billion each.

eBay

(EBAY) - Get Report

and

Akamai

(AKAM) - Get Report

are both above $20 billion. Why shouldn't they be in? Not to mention

Broadcom

(BRCM)

at $23 billion!! The list of rookies that should be in must be freaking the

McGraw-Hill

judges out. Get this lineup:

Red Hat

(RHAT)

,

Sycamore

(SCMR)

,

Juniper

(JNPR) - Get Report

and

Foundry

(FDRY)

are all north of $15 billion.

(Oh yeah, let's not forget

UPS

(UPS) - Get Report

with $82 billion,

Liberty Media

(LMG.A)

with $57 billion and

Goldman

(GS) - Get Report

with $38 billion.)

Just in case you think we are blowing smoke here consider this:

Nacco

(NC) - Get Report

,

Foster Wheeler

(FWC)

,

Russell

(RML)

,

Reebok

(RBK)

,

McDermott

(MDR) - Get Report

,

Pep Boys

(PBY) - Get Report

,

Milacron

(MZ)

,

Jostens

(JOS)

,

Fleetwood

(FLE)

,

Springs

(SMI)

,

Polaroid

(PRD)

,

Pulte

(PHM) - Get Report

and

Bethlehem Steel

(BS)

are all lower weighted than now-departed (but Canadian)

Laidlaw

(LDW)

. Which companies make sense to have in more?? What would you do if you were making up the index? Wouldn't you just take a one-time charge against those bottom 15 and put in the real economy names (notice we didn't say "new" economy)?

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. Matt Jacobs is his colleague at Cramer Berkowitz. At time of publication, the fund was long JDS Uniphase, Akamai, Sycamore, Goldman Sachs, United Parcel Service and Yahoo!. Cramer's fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Jacobs' and Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.