S&P Index Services, which operates independently from S&P Equity
Research, announced that PCLN would be added to the S&P 500. We
think this constitutes a positive for PCLN as the stock should
garner greater interest and demand, and perhaps the company would
command more general recognition and respect. In our view, PCLN
is a well-managed market leader that sometimes is still perceived
unfavorably as it was around the time of the dot-com bust.
Regardless, we think PCLN is fully valued, and note it is set to
report Q3 results pre-market on 11/9.