FTSE/Russell recently added ApolloMed to its indices but erred in its calculation of float, forcing index funds to buy a disproportionate number of shares; roughly one-third of the actual float. The error and subsequent forced index buying caused shares to spike 50% on 114x normal volume on the day prior to index inclusion. Russell realized its mistake and has slated a reduction of ApolloMed’s index shares by ~86.5% for 9/21, which should force the sale of roughly 1.7 million shares. With an average daily volume of only 130,000 shares per day, we expect the forced sales to crush the stock by the effective date. ApolloMed has complex financials due to several consolidated VIEs. After untangling the web, we believe fair value is $5.80/share, suggesting a ~60% downside scenario on a fundamental basis alone.