S&P has a reasonably good track record of adding winners and dropping losers from it's headline index. Given the large remaining short interest in GRMN, the downside risk will be limited, as the shorts will be desperate to cover.
Buy the dips and keep the pressure on the shorts.
However, keep in mind that the indices are loaded to show an upward trajectory. When the journalists report a rise in the S&P, or DJI for the year, or decade, remember that the dogs that get dropped out aren't counted.
The real rate of return on the Indices is probably about 1/3 lower than the reported rate.
The dishonesty in this Country starts from the top. The Government accounting and statistics are phony.
Successful investing required a tremendous amount of work. Begin by learning to separate fact from fiction.
Still, GRMN's addition to the S&P 500 is a very nice validation stamp.
This from the newswire is what I thought would be the case.
Stocks typically gain when they added to major indices because mutual funds and other institutional investors that track those indices are expected to update their portfolios by purchasing shares of the newly added companies.
That might trip up the existing shorts also causing some nice upside. At any rate I agree this is great news for Garmin one of my largest holdings along with NUAN and F. GLTA