The Globe and Mail reports in its Wednesday edition that Bombardier is returning to Canada's primary stock index after a year when its shrunken value made it too small for inclusion.
The Globe's David Milstead writes that S&P Dow Jones Indices, manager of the S&P/TSX Composite Index, said Bombardier and seven other companies will join before the open Sept. 20.
Bombardier will be joined by Birchcliff Energy; Converge Technology; cloud-computing company Docebo; K92 Mining; MTY Food Group; Telus International; and Well Health Technologies.
S&P Dow Jones Indices cut Bombardier from both the composite and the S&P/TSX 60 in June, 2020, after its stock price struggled to remain above $1. The stock fell about 75 per cent over the first half of that year.
The stock is now pushing $2, and has a market capitalization of more than $4.6-billion.
That means it remains too small for the S&P/TSX 60. Dow Jones Indices uses "float" -- the value of shares that are not held by insiders and therefore trade frequently and are easily available to the public -- to judge whether a company should be included in its indexes.
Most members of the S&P/TSX 60 have a float capitalization above $10-billion.
© 2022 Canjex Publishing Ltd. All rights reserved.