Hindenburg gives Icahn a taste of his own medicine. Short-seller Hindenburg continued its scorched-earth attacks on billionaires by accusing Carl Icahn of operating a “Ponzi-like” structure at his investment firm and inflating the value of some assets. It was a bold move for Hindenburg to go after Icahn, a famous “corporate raider” who made his fortune going after other companies. But much of that fortune evaporated yesterday: Shares in Icahn Enterprises tumbled a record 20%, lopping off 41% of Icahn’s net worth, according to Bloomberg.
How does one entity dropping 20percent impact icahns net worth by 40percent? he has other holdings and investments.
And ... (The Daily Upside) INVESTING Hindenburg Research Picks Carl Icahn as Next Target You either die an activist investor hero or live long enough to see yourself become the target of younger activist investors. Nathan Anderson and his crack team of muckraking short-sellers at Hindenburg Research have selected their latest quarry: Carl Icahn, the legendary financier who knows a thing or two about torturing executives with allegations of corporate malfeasance. When You Come at the King… Hindenburg is riding high after its bombshell report alleging widespread corporate fraud wiped out nearly $110 billion from the Adani Group, one of India’s largest conglomerates. Now it’s going after Icahn Enterprises (IEP), the publicly traded investment firm controlled by Icahn that takes equity stakes or outright buys other companies like Xerox and Pep Boys. Icahn owns 85% of IEP. As with its prior victims, the aptly named Hindenburg released an extensive report Tuesday detailing why IEP is overvalued — perhaps suspiciously so — in hopes of spurring a share price meltdown, creating some profit for Hindenburg’s now public short position on IEP shares. The abstract summary of this particular term paper argues that Icahn’s company is overvalued by a premium of some 200% compared to the reported value of its assets. And, in typical Hindenburg fashion, there’s practically a line-item analysis of how the financial sleuths arrived at this conclusion: • Hindenburg states that IEP reported the value of its “Automotive Parts” unit at $381 million in December — even though a key subsidiary, Auto Plus, filed for bankruptcy a month later. Hindenburg also says IEP valued the 90% ownership stake it has in meat packager Viskase Companies at $243 million, despite its market cap being only around $89 million at the time. • In total, Hindenburg estimated IEP’s net asset value to be around $4.4 billion, or 22% lower than the $5.6 billion that IEP reported at the end of last year. IOU: Perhaps most damning, Hindenburg also flagged the 181 million units, or roughly 60% of Icahn’s holdings in the company, that the activist investor has pledged as collateral in personal loans. “Overall, we think Icahn, a legend of Wall Street, has made a classic mistake of taking on too much leverage in the face of sustained losses: a combination that rarely ends well,” Hindenburg wrote in its research note. Icahn responded in kind, releasing a statement saying “We believe the self-serving short seller report published by Hindenburg Research today was intended solely to generate profits on Hindenburg’s short position at the expense of IEP’s long-term unit holders.” Not that Carl Icahn would know anything about that kind of thing.
IEP chart - it was forming a converging triangle. Yesterday long red candle. Anyway, Hindenburg provides trading opportunities.
What comes around ... goes around. -No the correct saying is "What goes around comes around". The idea is one gets what one deserves since one goes wronging others first and then the consequence of them wronging others comes back to haunt them. It doesn't make sense the other way for something to come around and then go around. The consequence that comes around for that person is for that person only; it doesn't go around to others. LOL In this case though Carl Icahn didn't do anything wrong. As shareholders, we are entitled to grill CEOs to ensure that they are managing the companies well so we get our money's worth.
I side with Carl Icahn on this one. There is no fraud here just simply a mispricing of assets. Asset values change all the time. Just because one or two companies declared bankruptcy or are not doing well, should you dismiss the value of the entire division or company? I mean I would believe in the merit of the research if they have actually uncovered corporate fraud, hiding of large debt as off-balance sheet activities and etc. but mispricing of the value of an asset? Well that's everybody's opinion. They are free to believe in their own research and put their money on it by trading it but publishing the research to obviously entice more shorting actions to result in an obvious drop in price is a bit fishy to me.
%% Most likely Carl Ichan+ his car parts co may do fine,oil refinery may do fine \ new cars are so overpriced. Long term chart actually looks quite good; just dont do like the gamblers + put all the money in @ 149 area. An auto parts friend of mine did note a bit of a problem getting auto parts; dont know much about pork, hogs + meat packin'........
https://hindenburgresearch.com/icahn/ https://www.ft.com/content/57610f16-4adc-477a-8c6d-91509d1f9b33