SIRIUS XM Radio Inc. (NASDAQ: SIRI) is going back into the NASDAQ-100 Index. The satellite radio monopoly is replacing Cephalon Inc. (NASDAQ: CEPH), which is merging with Teva Pharmaceutical Industries Limited (NASDAQ: TEVA). This is one of those index additions which matter.
First off, this is a reintroduction for SIRIUS XM to the NASDAQ 100 now that it is no longer considered a penny stock. It was roughly 2004 when SIRIUS was added and then XM was deleted back in 2007. If you look at the index addition, the gain this morning is now up 2.6% at $2.28. The 52-week trading range is $0.91 to $2.44. What is more important is that SIRIUS XM has a market capitalization of $8.76 billion.
PowerShares QQQ Trust (NASDAQ: QQQ) is listed as having a market cap of over $24 billion but it trades an average of about 50 million shares per day.
Teva shares are lower with the broader market by -1.5% at $48.73 in pre-market trading and its 52-week trading range is $44.86 to $57.08.
The NASDAQ 100 is an index that is widely followed, but it is also now not as concentrated as it was before about six weeks ago when the index rebalanced. That actually helps a company with an $8 billion market cap. Still, the NASDAQ 100 is not as widely followed as the S&P 500 Index and not as widely tracked as the Russell indexes.
JON C. OGG