Carl Icahn Predictions
Posted: Tuesday May 16 5:39:55AM 2017
Carl Celian Icahn (born February 16, 1936) is an American investor, business magnate, and philanthropist. He is the founder and majority shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City, formerly known as American Real Estate Partners. He is also Chairman of Federal-Mogul, an American developer,
We dug through his regulatory filings to see if this position matches earlier Carl Icahn predictions, and what we found is big news for the Bristol-Myers stock price.
Over the years many investment bankers, including Jefferies, that specialize in block trades frequently make bids for our large positions. But completely contrary to what Bill Ackman stated on television today, I have never given Jefferies an order to sell any of our Herbalife shares. Last month we publicly disclosed that Herbalife granted us permission to go up to 35%. At the time of the disclosure, Ackman declared that I have no interest in increasing my position in Herbalife. This was obviously another misstatement of the facts by Ackman since today I bought another 2.3 million shares. I continue to believe in Herbalife: it’s a great model that creates a great number of jobs for people. Ackman may be a smart guy but he has clearly succumbed to the same dangerous (and sometimes fatal) malady that afflicts many investors – he’s developed a very bad case of “Herbalife obsession”. Obsessions concerning the value of stocks are the undoing of many investors because they often blind you to the facts, and it becomes impossible to see the forest for the trees. Watching Ackman on television today is a perfect example of this “obsession”(http://carlicahn.com/)
Icahn is right that GDP growth, which was just 0.5% in the first quarter, was pretty lackluster. And corporate profits in the first quarter look weak, but not quite as bad as people expected. What's more, the stock market is back to its relatively high price-to-earnings ratio of 18 times next year's earnings.
On occasion, Icahn's Herbalife exchanges have all the earmarks of being a piece of a wait-and-see game with Bill Ackman, a very rich person multifaceted investments supervisor who broadly made a billion-dollar wager against the estimation of Herbalife. At the point when Ackman blamed Icahn for endeavoring to offer some portion of his stake a year ago, Icahn went out to purchase all the more, uncovering his bigger position on an indistinguishable day from Ackman's TV appearance. With short enthusiasm for the organization habitually besting 40% of the general population drift, short merchants anxious to take benefits may think that its hard to find the essential shares to cover, given outsize possessions by expansive institutional speculators and submitted shareholders like Carl Icahn.