How do activist investors pick their targets?
It's a question a lot of investors will have after the string of new positions activist investors have taken in big-name stocks.
For instance, the Carl Icahn holdings now include Xerox Corp. (NYSE: XRX), he disclosed yesterday (Tuesday). It's more and more likely an activist investor will go after a stock you own.
Here's what activist investors look for when choosing their targets...
How do activist investors pick their targets?
It's a question a lot of investors will have after the string of new positions activist investors have taken in big-name stocks.
For instance, the Carl Icahn holdings now include Xerox Corp. (NYSE: XRX), he disclosed yesterday (Tuesday). It's more and more likely an activist investor will go after a stock you own.
Here's what activist investors look for when choosing their targets...
A look at the Carl Icahn holdings shows that, like a lot of other top activist investors, he likes name-brand stocks.
That means the odds are good that a stock you own are among the Carl Icahn holdings.
No company is immune from activist investors. That point was hammered home anew when Nelson Peltz announced Monday he'd bought $2.5 billion of General Electric (NYSE: GE) stock, making him a top 10 shareholder.
Every year, more household names are targeted, including many widely held stocks.
Here's what to do when a stock you own lands in the crosshairs of a Nelson Peltz...
Many investors would like to be able to get a piece of the success that activist investors like Carl Icahn and Bill Ackman enjoy.
Over the past decade, activist-run funds have returned nearly 267% - more than double that of the Standard & Poor's 500 index.
In the following video, Money Morning Capital Wave Strategist Shah Gilani explains how activist investors like Carl Icahn operate -- and whether investors should piggyback on their moves...
Chesapeake Energy Corp.'s (NYSE: CHK) stock has fallen 39.5% in the last year amid quarter-over-quarter earnings losses.
For billionaire investor Carl Icahn, it's the perfect opportunity to increase his stake at a discount.
Here's how you can benefit from Icahn's strategy, regardless of how CHK stock performs...
It's one thing to be optimistic about a stock, but activist investor Carl Icahn's letter to Apple Inc. (Nasdaq: AAPL) CEO Tim Cook tries to make the case that Apple stock is worth double its current price today.
The letter, released today (Thursday) following a teaser tweet the night before, is Icahn's second push to get Apple to use a major portion of its $133 billion in cash for stock buybacks.
But there's more to Icahn's game this time than simply increasing stock buybacks.
This veteran activist investor is as cunning as ever...
Activist investors like Carl Icahn and Daniel Loeb try to keep their targets a secret until they're ready to strike, but intrepid investors can scour their 13F filings for clues on what they're planning.
And aside from their activist investing, it's worth keeping an eye on what's in and out of favor with the big hedge fund managers, since their involvement often affects a stock's price.
Just when you thought the very public war of words between activist investor Carl Icahn and eBay Inc. (Nasdaq: EBAY) was about to go nuclear, peace broke out.
Icahn and eBay Chief Executive Officer (CEO) John Donahoe announced a truce today (Thursday) in which the notorious billionaire would end his public bid to force eBay to split off its PayPal unit and grant him two seats on the company’s board.
In the go-go 1980s - back when the hit movie Wall Street told us that "Greed Is Good" -Carl Icahn was known as a "corporate raider"... and was revered for his windfall-producing decisiveness.
Icahn is still around. And he's still active. Only now - in the politically correct 2000s - he's known as an "activist investor" who's gone up against the likes of Apple Inc. (Nasdaq: AAPL) and eBay Inc. (Nasdaq: EBAY).
I don't really care what we call him. I just know that Icahn has done us a big, big favor.
You see, Icahn the Great has just cleared our path to a big profit - a company in a hot new market whose shares could surge 50% in the next two years.
And today I'm going to tell you a tale that shows how Icahn did this - and show you the stock that's ready to run. Full Story
In his recent letter to eBay shareholders, activist investor Carl Icahn charged eBay leadership with the most "blatant disregard" for accountability that his firm "has ever seen." The harsh language is part of a full frontal assault
to force eBay to bend to Icahn's will...
Last week's $45.2 billion Time Warner-Comcast deal pushed the global deal tally to $336 billion so far this year - the most since 2007 - and another blockbuster deal announced this week will push that figure even higher.
On Tuesday Irish drugmaker Actavis PLC (NYSE: ACT), producer of generic and specialty urology and women's health products, agreed to buy New York-based Forest Laboratories Inc. (NYSE: FRX) for $25 billion.
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This doesn't happen very often.
Carl Icahn has been foiled in one of his activist investing ploys, and by none other than Apple Inc. (Nasdaq: AAPL).
Icahn's bid for an Apple stock buyback worth $50 billion ran aground today (Monday) when an influential proxy voting service, Institutional Shareholder Services Inc. (ISS), sided with Apple.
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While not setting the world on fire, eBay's earnings were good enough to push the stock up a bit yesterday. Except now eBay has every company's worst nightmare on its doorstep - activist investor Carl Icahn. And he's making a demand that would radically transform the company.
But what Icahn wants could work out very badly for eBay...
Score another victory for Carl Icahn.
With the Transocean LTD (NYSE: RIG) deal announced yesterday (Monday), Icahn has once again shown why he's considered a master among activist investors.
The concessions he won from the world's largest offshore rig contractor include a boost to Transocean's dividend from $2.24 to $3 a share, subject to approval at next year's annual general meeting.
Transocean management also agreed to support Icahn-backed director Samuel Merksamer's re-election to the board, as well as the election of another Icahn pick, Vincent Intrieri, at next year's meeting.
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Conditions just happen to be ideal right now for activist investing. That means a lot of stocks will be targeted - and a lot of share prices will get a jolt. You can get a piece of those gains for yourself, but you have to beat the likes of Carl Icahn to the punch. And the only way to do that is to identify potential targets before they do.
