TradingKey – SanDisk (NASDAQ: SNDK) closed last week at $1,791.82, a 10.99% gain. SNDK joins the S&P 100 effective prior to the market open on September 21. The inclusion can create index-tracking demand as passive funds rebalance to match the index. Recent trends indicate that SNDK is greatly benefitting from improved NAND prices and increases in data center demand. Prices are likely to pull back from current levels given the overbought condition of SNDK.
S&P 100 Inclusion Adds a Fresh Catalyst
Operating businesses are not typically impacted by index additions or deletions. Sandisk’s underlying business does not change because of the S&P 100 addition, although the share-price impact is uncertain. What is likely to occur is that funds…
