Dipped my toe in on this one at a hair over $30. I like charts with companies that have a long successful track record and a spooked bunch of hungry sheep. $2 dividend is coming up soon.

Icahn Enterprises slips amid Hindenburg's latest short
report

quote:
Hindenburg released an updated report on Thursday after Icahn responded in a press release on Wednesday to claims that Hindenburg made last week, with Icahn calling the short seller "Blitzkrieg Research" and saying its head Nate Anderson's "modus operandi is to launch disinformation campaigns to distort companies' images, damage their reputations and bleed the hard-earned savings of individual investors."

Icahn Enterprises (IEP) shares have plunged 39% since the Hindenburg short report was released last Tuesday, which alleged the IEP units were "inflated" and that the company trades above its net asset value.

Shares of Icahn Enterprises (IEP) dropped 15% on Wednesday even after Icahn's defense amid a disclosure that that the company was contacted by the U.S. Attorney’s office for the Southern District of New York last Wednesday.

https://seekingalpha.com/news/3970138-icahn-enterprises-slips-amid-hindenburgs-latest-short-report

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Posted by GhostOfFreedom

Member since Jan 2021

13196 posts

Posted on 5/17/23 at 3:10 pm to Auburn1968

Icahn is being attacked because he is buddies with Ryan Cohen of GameStop and he allegedly got out of his GameStop short position recently after making a killing when he shorted it near its squeeze (the sneeze) peak. Now, many are suspecting that he will go long on the great little gaming company.

Lot's of people speculating that Ryan's cryptic tweet about China "China is a sleeping giant. Let her sleep, for when she wakes she will move the world" is really an Anagram for Icahn. Who knows? Apes love their wild theories.

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Posted by slackster

Houston

Member since Mar 2009

91492 posts

Posted on 5/17/23 at 7:42 pm to GhostOfFreedom

quote:
GhostOfFreedom

quote:
Apes love their wild theories.

Concur.

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Posted by Upperdecker

St. George, LA

Member since Nov 2014

33054 posts

Posted on 5/18/23 at 6:47 am to Auburn1968

I do like Icahn but my biggest question is how long can he keep working? He’s 87. He’s the figurehead behind his company, and there’s no telling what it would look like if he did step down

Probably worth the price of admission in a few weeks when dust settles though

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Posted by Jag_Warrior

Virginia

Member since May 2015

4292 posts

Posted on 5/18/23 at 7:17 pm to GhostOfFreedom

quote:
Icahn is being attacked because he is buddies with Ryan Cohen of GameStop and he allegedly got out of his GameStop short position recently after making a killing when he shorted it near its squeeze (the sneeze) peak. Now, many are suspecting that he will go long on the great little gaming company.

IEP popped up on my screen the other day because the implied vol. spiked to over 90% at one point. It’s still at 88.75%. With the kind of option premium that provides, it was worth looking into.

If you have a story link to something claiming this has something to do with GME or Ryan Cohen, I’d like to read that too. But everything that I’ve read to date focuses on the financials of IEP, corporate governance issues and how valuations have been made within that investment vehicle. Additionally, there are questions about Icahn’s margin loans from IEP and the timing of the disclosure of said loans in the wake of the (to date) $9 billion in losses on short positions on broader market indices over the past several years.

For me, there are too many (unknown) moving parts here to establish an options or equity position. It’s not about passing judgment on whether or not Hindenburg or Icahn is right or wrong. But the implied vol and options pricing are in this case indicators of a good deal of uncertainty… too much for my taste.

Just my 2 pennies. Good luck to any and all who do decide to play this one.

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Posted by Jag_Warrior

Virginia

Member since May 2015

4292 posts

Posted on 5/25/23 at 9:12 pm to Jag_Warrior

This one is troubled, now down to $20.63, off almost 14% on the day and touched $18.03 (new 52 week low).

quote:
The fallout continues for Icahn and IEP:

This week, the U.S. Attorney's Office for the Southern District of New York opened an investigation into the firm's corporate governance, capitalization, securities offerings, dividends, valuation, marketing materials, due diligence and other disclosures.

Icahn Enterprises shares were down another 13% Thursday afternoon. The stock has plummeted nearly 60% in the month of May all based on the fallout of the Hindenburg Research report.

Hindenburg's report said that the dividends IEP pays out are "mathematically unsustainable" due to the fact that $1.5 billion in cash dividends have been paid since 2014 despite negative free cash flow of $4.9 billion during that period.

"?In short, Icahn has been using money from new investors to pay out dividends to old investors," the note stated.

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