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.
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Activist investor Carl Icahn's proposal to split up eBay Inc. (Nasdaq: EBAY) from its payment unit PayPal makes no sense to Money Morning's Defense & Tech Specialist Michael Robinson.
Robinson joined FOX Business' "Varney & Co." today (Thursday) and discussed why he thinks this proposed plan is crazy, and what it means for eBay - and eBay stock holders.
Editor's Note: Shah shared this true "billionaires' brawl" on Dec. 17th. Today, as promised, he'll show you how to make money from it. Take notes...
Sure, the Herbalife game that pitted Bill Ackman against David Einhorn, Dan Loeb, Carl Icahn, and the rest of the billionaire boys' club was a tad bit personal.
It was also professional, very professional.
All the billionaires playing the Herbalife game are professional money managers. They made their mega fortunes in the markets.
But you don't have to be a billionaire to make money in the game.
In fact, you can play the same game and profit nicely by understanding how to follow their lead.
After all, that's what they're doing.
Carl Icahn wants to be clear about his seemingly bearish stock market comments yesterday.
The famed activist investor was speaking at the Reuters Global Investment Outlook Summit Monday when he made remarks that halted markets' gains.
"I am very cautious on equities today," Icahn said. "This market could easily have a big drop." His reasoning is that earnings at many companies have been juiced more by low borrowing costs than by strong management.
Stock market news today, Nov. 18: The Dow ended up today but fell short of 16,000 after bearish comments from Carl Icahn.
The Dow Jones Industrial Average closed up 0.1% to 15,976 points, hitting a high of 16,030 earlier in the day. The S&P 500 closed down about 0.4% at 1,791 points, and the Nasdaq Composite Index closed down 1% at 3,949.
Score another victory for Carl Icahn.
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.
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.
Icahn has been pushing Apple CEO Tim Cook to buy back more shares with its giant $147 billion pile of cash since mid-summer. Last month, Icahn had dinner with Cook to make his case personally.
Carl Icahn pioneered the strategies commonly used by what we now call "activist shareholders." While he's unloved by CEOs everywhere, savvy investors who keep a close watch on Icahn can themselves profit from his moves. We tell you how.
You see, Tuesday afternoon, in a single tweet, the legendary 77-year-old activist investor added more than $17.26 billion to Apple's market cap. At 2:21 p.m., pre-tweet, AAPL stock was trading at $475. Following the tweet, shares shot up to $494, before settling the day at $489.57.
Don’t let a recent metals selloff deter you from metals investing. In fact, platinum looks to be one of the best investments of 2013. Read more...
When billionaire and corporate raider Carl Icahn gets involved in a stock, the share price often skyrockets - known as the "Icahn Effect," or "Icahn Lift."
That's why investors often follow his lead into these stocks, hoping to get a piece of the resulting gains.
But there's another way to profit from Icahn's investing prowess. Investors who took this route have scored 20% annual gains for a decade.
We're talking about investing in Icahn's $6 billion master limited partnership, Icahn Enterprises LP (NYSE: IEP).
In a move that potentially staves off a battle over Dell Inc.'s (Nasdaq: DELL) $24.4 billion proposed deal to go private, activist investor Carl Icahn said today (Monday) he signed a confidentiality agreement with the personal computer giant.
Icahn's firm issued a short statement saying it "looks forward" to reviewing Dell's confidential financial info. The company hopes the move will keep Icahn from speaking out against Dell's planned sale.
In a letter to Dell last week, Icahn warned that Dell's insistence in moving forward with the $24.4 billion, $13.65 a share buyout would result in a costly, lengthy legal battle.
Icahn, who according to CNBC has amassed a 6% stake - or roughly 100 million shares - in Dell, opposes the proposed buyout of the Texas-based company that is being orchestrated by founder Michael Dell and Silver Lake Partners.
"The Going Private Transaction is a related party transaction with the largest shareholder of the company and advantaging existing management as well, and as such it will be a subject to intense judicial review and potential challenges by shareholder and strike suitors," Icahn wrote.
"But you have the opportunity to avoid this situation by following the fair and reasonable path set forth in the letter," Icahn continued.
Energy stocks have been largely left behind in the recent stock market rally - except for those with interest from activist investors like Carl Icahn.
You see, concerns about global demand as well as political pressure to focus on alternative energy have weighed on energy stocks. So have the low price and oversupply conditions in the natural gas markets.
Many of these energy stocks trade at what seem to be very low prices compared with the assets owned by the corporations and their future prospects.
This has attracted the attention of many activist investors looking to force the share price to unlock the real value of the underlying corporation.
One of the best-known activist investors, Carl Icahn, has accumulated several positions in leading energy companies in the past year because of low prices and under-valuations.
Take, for example, what Icahn's done with CVR Energy Inc. (NYSE: CVI).
Icahn owns 83% of CVR, a refiner that has seen its stock price soar recently as refining margins have improved. The company also has a fertilizer business that is a major beneficiary of lower natural gas prices.
The stock has better than doubled in the past year so it would be foolish for investors to chase the shares now.
But CVR does serve as an example of the sizable returns Icahn is looking to achieve in his foray into additional energy investments, like the following two stocks he's been accumulating.
Thirty years have passed, and Icahn is now 76 years old. And he's apparently no longer a "corporate raider." In the careful, politically correct climate of the present, Icahn is now referred to as an "activist investor."
Call him what you want ... but the bottom line is that the Icahn name still has a King Midas-like cachet.
And what happened last week proves it.
Indeed, shares of Private Briefing recommendation American Railcar Industries Inc. (Nasdaq: ARII) soared as much as 19% last Tuesday after investors speculated Icahn might be crafting a merger plan that involves the railroad-car manufacturer.