Cadus - Shell Company Turning Into Real Estate Venture
- Cadus operated as a shell company for the last 15 years and was considered a value trap, but in the recent 5 months the company changed completely.
- During H1 2014 the whole cash balance was invested in high-end residential property flipping business and further funds were raised through rights issue, doubling the assets of the company.
- Carl Icahn recently invested $19m at $1.53/share, currently owns 68% of the company, his son-in-law was appointed as CEO.
- Sale of any of the acquired properties at a premium would serve as a catalyst. In optimistic scenario the share price could potentially double. Strong downside protection.
- Investors have an opportunity to invest alongside Carl Icahn in residential real estate at the similar prices to where he bought the stock.