First Solar In The Running to Replace GM In The S&P 500

first solar bulding tbi

First Solar (FSLR) is a top 5 finalist in consideration to join the S&P once GM bites the bullet and goes bankrupt.

Bloomberg: Visa Inc. and First Solar Inc. are among the five likely candidates to replace General Motors Corp. should the automaker be dropped from the Standard & Poor’s 500 Index, Goldman Sachs Group Inc. said.

GM, the biggest U.S. automaker, plans to file for bankruptcy protection on June 1, according to people familiar with the company’s plans. A bankruptcy probably would lead to the stock’s removal from the U.S. equity benchmark, based on S&P’s inclusion criteria, strategist David Kostin wrote in a note to clients today.

Removing the automaker would boost Goldman’s 2009 earnings estimate for companies in the index by $1.53 a share to $55 and boost the 2010 projection by 68 cents to $74, the New York-based strategist wrote.

His other picks for GM’s replacement in the equity benchmark include FMC Technologies Inc., the largest provider of subsea systems for oil and natural-gas fields; Ross Stores Inc., the owner of the Ross Dress for Less discount chain; and SAIC Inc., a defence contractor specializing in computer services.

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