Seeking Alpha

Turnaround: Barron's Bary bullish on Icahn Enterprises

  • Icahn Enterprises (IEP +7.3%) gets its tail in the air after Barron's Andrew Bary - who issued a well-timed Sell call on the stock in December (and another one in March) - says the big decline in the shares has them looking undervalued once again.
  • What Icahn calls the "indicative net asset value" is likely still just below $80 per unit, writes Bary, putting them at a little more than a 10% premium - not an unreasonable price given Icahn's investing acumen.
  • In the end, IEP - with Icahn controlling nearly 90% of outstanding units - is a play on CVR Energy (CVI +0.9%), Federal-Mogul (FDML +0.2%). and Icahn's hedge fund which famously holds stakes in Apple, Herbalife, eBay, Transocean, and Chesapeake Energy, offset by some sizable shorts.
Comments (3)
  • BAUER
    , contributor
    Comments (13) | Send Message
     
    But the forcast is for a higher or lower price considering the level of $ 100??
    Who is able to give me an answer ? without responsability ... of couse!
    16 Apr 2014, 01:31 PM Reply Like
  • Doug-
    , contributor
    Comments (525) | Send Message
     
    The answer is that IEP stock is now undervalued according to the Barron's analyst which means that he believes the stock is going considerably higher. 100?? It's right there already. This stock has the potential of going considerably higher from here. Icahn did not get to be so wealthy without being very, very shrewd. According to Kiplinger, Icahn's own investments have increased at a compounded rate of 31% a year going back all the way to 1968. Project that forward and you could see some very interesting numbers indeed. A wonderful stock for long term appreciation with a 6% yield.
    16 Apr 2014, 03:54 PM Reply Like
  • DAVE22Q
    , contributor
    Comments (363) | Send Message
     
    every time we get another HLF "investigation" headline we get a buying opportunity.
    17 Apr 2014, 11:02 AM Reply Like
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