Standard & Poor's always prefaces its decisions on index moves by saying they are not trying to pass judgment on the companies involved. They're just applying the rules.
So to the good folks at GMP Capital, it's nothing personal, but you're not going to be invited back into the S&P/TSX composite just yet.
While a report from CIBC World Markets on Thursday highlighted GMP Capital as a possible candidate for Canadian stock benchmark, which will be adjusted in September, traders at other desks say this just can't happen.
S&P deleted the investment dealer from the index in December, 2008. Under the rules that govern these benchmarks, after being dropped, a company can't be brought back in for at least a year. The likely date for GMP Capital's return to the index is early next year.
The Canadian benchmark is scheduled to be rebalanced on Sept. 18.
Looking at what other dealers are saying who is in, and how is out, RBC Dominion Securities published a report last week that highlighted Consolidated Thompson Iron Mines and Western Canadian Coal as top candidates for inclusion. The dealer's three-person team of index analysts said there is also a good chance that Capstone Mining and SEMAFO make the grade.
The companies that RBC Dominion predicts may get deleted - and again, it's not personal - are InnVest REIT, Cardiome Pharma and Tanzanian Royalty Exploration .
Andrew Willis