Opportunity knocks S&P 500

One of the sure bet is when a company to be added to S&P 500's index.

The reason is that, there are many institutions, mutual fund, passive indexers who are only allowed to buy stocks in the S&P500. So naturally, all these institutions, indexers and mutual funds will add this company to their portfolios, causing a short term demand for the company stocks, pushing the price higher.

Here are a few companies will be added to sp 500:
saleforce.com (announced date: 2008 09 11, price: $58, replace FMN)
Fastenal (announced date: 2008 09 11, price: 53.99, replace FRE)
Harris corp (announced date: 2008 09 16, price: 47.4, replace Leh)
kraft (announced date: 2008 09 18, price: $33.34, replace AIG)

I added the date they were announced, so we can check how they do a few week after the announcement.