David Stafford's  Instablog

David Stafford
Send Message
Student of markets, enjoys following their course.
My book:
Around the World in Several Pieces
  • Coat Tails, And The Proper Riding Of Them. 0 comments
    Sep 12, 2012 5:35 PM | about stocks: NAV

    Well, the colorful Carl Icahn, an icon of the hostile takeover business, is progressing in the slow Trojan affair of hostile takeovers, in this case targeting none other than NAV. I'm sure this made some quant's head explode somewhere, but yes, NAV is also a ticker.

    _____________________________________________________________

    This company in question is a company that makes engines for trucks and other heavy machinery. It is currently in somewhat of a predicament, because it took somewhat of a daedalian risk. It took some clever approaches to overcoming the increasing MPG ratings associated with "CAFE" standards imposed by Uncle Sam, and is hence treading water, in a pool that its competitors can swim through like they are Michael Phelps in Beijing.

    _________________________________________________________________

    Needless to say, this somewhat sickly gazelle, has been targeted by those looking for "distressed" investments(see firing leadership, as a gesture of good will)(There's also the somewhat small stake relative to Carl and his compadres that is held by the board, something like 1.5% vs Carl's 15%).

    _______________________________________________________________________

    Does this mean that its share price will rise to somewhere near previous highs which are significantly higher than the current 25 or so, who can say. But either way, if one is a fan of Carl's coat tails, this might be a good stretch of linen to pry on to.

    ___________________________________________________________

    For, Carl Icahn, presumably didn't make his billions by failing at inserting value into flagging corporations, and perhaps sometimes that's all the due diligence we need, but then again who can say.

    Stocks: NAV
Back To David Stafford's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.