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The recent drama at Imclone (OTCPK:IMCL) has had big time investor Carl Icahn feuding with chairman David Kies, after Icahn asked him to give up his position on the board. While drama and bad news are not such surprises coming from a company like Imclone, what is disappointing is that Icahn is a big stake shareholder in Cadus Corporation (OTCQB:KDUS), a tiny stock trading over the counter.

KDUS has been dropping drastically over the last few years and Icahn, supposedly a turnaround expert, has done nothing to salvage any value. The company sold its biotech services business years ago and has since declared itself a company seeking to acquire business ventures that generate earnings. But nothing has been done.

Neal Shanske explains how KDUS could be a great bargain given its cash position. But there is a reason for such a cash accumulation. It has to do with the very fact mentioned above; the sale of its business activities. Any company could easily sell off its business, take the cash, placed it in the bank, sit on it for years, do nothing all day, and declare it has a strong cash position. There is absolutely no shareholder value in KDUS.

Mr. Shanske expects a great turn around if Icahn decides to pay attention. Well, Icahn is not only a big investor with other major concerns on his mind, but his latest fiasco at Imclone leaves him little time to think about a small company like KDUS. The company could just as easily sit idle for many more years.

Also, just recently the stock took a couple of big time dives on huge volume. With this heavy selling and its aimless direction in the near future, why would anyone invest in Cadus?

Would Cadus stock skyrocket if Icahn decides to actually do some work and buy out a couple of ventures? Of course, but when? And after how many dives in the stock price?

At the very least, wait for some rumors. But with nothing in the press releases or company filings suggesting any activities or venture-seeking, Cadus stock could slowly and painfully sink into penny land.

Source: Cadus: On Its Way Down to Penny Stock Land?