Icahn holdings Illumina, CVR Energy drop amid Icahn Enterprises' weakness

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Carl Icahn's holdings such as Illumina (NASDAQ:ILMN) Southwest Gas (NYSE:SWX), and CVR Energy (NYSE:CVI) fell as his holding company, Icahn Enterprises (NASDAQ:IEP), fell 14% amid a short report earlier this month and a tweet from hedge fund billionaire Bill Ackman.

Illumina, which held a meeting where shareholders vote on Icahn-backed nominees on Thursday, plunged as much as 13%, before paring declines to 9%. Southwest Gas (SWX) fell 2.2%, while CVR Energy (CVI) dropped 9%.

Icahn Enterprises (IEP) shares have now declined 63% since the Hindenburg short report was released on May 1. The decline on Thursday comes amid a tweet from Ackman, that suggested the holding company could see additional downside, especially due to issues with margin loans.

Ackman suggested that Icahn's margin lender (s) may be "extremely concerned" with the current situation. Hindenburg, which said it's short the stock and IEP's bonds, originally raised concerns about margin loans in his report earlier this month, where he said IEP's NAV is "overvalued."

Other Icahn holdings include FirstEnergy (FE), Newell Brands (NWL), Bausch Heath (BHC) and Dana Inc. (DAN).

Icahn didn't immediately respond to a Seeking Alpha request for comment through his representative.

Reuters reported late Wednesday that Icahn is expected to win at least one seat on the Illumina (ILMN) board. Icahn nominee Andrew Teno won enough votes to get on Illumina's (ILMN) board, a company spokesman confirmed to Seeking Alpha

Comments

[buckiowa]

CVI lookin real attractive!

[7380309]

The last ownership transaction has Icahn buying more shares.... I haven't seen anything but tweets an accusations. Anyone have any real evidence? Im not trying to be a naysayer, but so far all I see is BS and gullible traders. Im ready to start buying IEP

[houtex]

@7380309
Essentially all of Hindenburg’s points come directly from the filings and disclosure of IEP. They aren’t making substantial, new “accusations.” Just highlighting to the market what they see as downsides people aren’t fully understanding. So the “real evidence” is here: https://www.ielp.com

[7380309]

@houtex ok Ive read all the filings. I disagree with the basis entirely. I appreciate your response. Have an awesome long weekend!

[taskassistant]

@houtex kind of like doctor saying smoking is bad, and doctor smokes too.

[20$Bill]

I doubt if the banks are worried at all. Carl is selling massive amounts of IEP and more then likely buying ilmn . He will Be back buying iep below 10.00

[7380309]

@20$Bill he hasnt sold any iep according to the SEC website...... can you tell me how you know that please?

[Jon Brien]

Ichan won't be able to take IEP private. If he does his entire Ponzi scheme collapses because he won't have any new investors to pay off the old ones like himself. There won't be any public stock he'll Own It All. Don't hope for a buyout.

[BendyStraws]

@Jon Brien Exactly, if he takes it private his ownership of IEP is valued at NAV. Which is about 4.4 billion or 12$ a share according to Hindenburg's adjusted NAV explained in the report. So he will lock in 15B+ of losses just using some napkin math.

[7380309]

@Jon Brien he pretty much does own it all already......Im not trying to break balls, but most (practically all) of his conglomerate members make money......... how do you figure it's a ponzi scheme? If you just hate him thats cool too, just wondering.

[7380309]

@BendyStraws youre assuming Nate Anderson is correct and a virtuous saint for warning 10% of the free float holders.............Id guess he has an alternative motive, and it worked honestly, sleezy, but good for him. Who needs Gensler when we have Anderson policing the markets lol

[FunInvesting]

The SEC should look into short seller tweets if you ask me...

[energyguy921]

@FunInvesting Why, they are right. They should look into the long tweets, they happent o be wrong.]
Should they investigate correct people , wrong people , or people conducting a scam

[BendyStraws]

@energyguy921 @FunInvesting Exactly, I never understood the rage towards shortsellers, if it's true information it's true information. It's important that stocks are priced correctly for economic efficiency.

[DividendInvestorLA]

@BendyStraws I have no rage against short-sellers. I short stocks too.... I am appalled at BS reports and how the media is carrying water for them, pricing assets incorrectly and causing economic disruption.

[Yggsdraggl]

At this point I'm waiting for the unwinding of IEP for bargains on of some of its holdings. A block sale of CVI in the mid-teens would make an attractive entry point.

[7380309]

@Yggsdraggl based on what?

[buckiowa]

@Yggsdraggl
CVI @ $15 would pay a 13% dividend!
Plus the upside ! I doubt it drops that far, but if it does, I’d be buying !

[taskassistant]

@Yggsdraggl ahh so we see your strategy. No wonder all the negative remarks?

[notre]

Ackman always shows his class.

[FunInvesting]

@notre
not,,,

[DividendInvestorLA]

@notre Funny. :)

[energyguy921]

THE SEC should do its job and put up a trading halt until we know all the facts.

How much was lent against the stock?
HOW BIG IS THE MARGIN LOAN?
IS HE IN DEFAULT?
THEY SHOULD PREVENT BLEEDING HIS SISTER COMPANIES AND STEALING THE CASH WITH BUYBACKS AND DIVIDENDS

Then , only then, reopen it after all is disclosed. Investors/Shorts have no clue what he owes and if he in compliance

That must be disclosed, immediately

Until then SELL SELL SELL

[FunInvesting]

@energyguy921
hey short...
you don't know what will happen in the future...

[VoiceofSanitySometimes]

@energyguy921

SEC cannot halt trading on a stock every time a short attacks it.

This is the part of the game that requires some serious big boy pants. To be fair, I don't play in that sandbox because I don't have the amount or liquidity to compete.

Didn't Ackman lose close to $1 billion shorting Herbalife?

[goodfellasfinancial]

@energyguy921 guess you have a great short position, kudos. I'm adding here at NAV. NOW WHAT IS YOUR THESIS

[Dow500k]

Wow. So all those people that were bashing me a few weeks back suddenly vanished? I ended up being 100% right. I said it would tank nonstop and that’s exactly what happened. IEP is FINISHED

[energyguy921]

@Dow500k You were right, i said the same thing

[buckiowa]

@Dow500k it’s going to zero ??

[20$Bill]

@energyguy921 well you were right but not often a short report turns a 50.00 stock into a 15.00 stock. The only reason it did is Carl is liquidating his massive amount of units to raise cash. And not for margin calls. He needed cash for other irons in the fire.. shortly he will be back buying up iep at 5.00..appears to be a consorted effort.. everyone made money except for the longterm investors..

[buckiowa]

Good buying opportunity on CVI

[VoiceofSanitySometimes]

@buckiowa

FE is another IEP holding that could be a buy right now.