10/25/13: Thank You Carl — Time to Lighten Up on Icahn

By Igor Greenwald • October 25, 2013

The master limited partnership Icahn Enterprises (NYSE: IEP) is up more than 35 percent since we recommended it on Sept. 9, and at this point is probably pricing in fairly frothy expectations about Carl Icahn’s ability to keep making big scores in this bull market. As much as we like the notion of getting paid to invest alongside the legendary corporate raider, the time to take profits is at hand. We recommend that you sell half of your position.

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James Martino

10/25/13 ‐ 3:24pm ET October 25, 2013 at 3:24pm ET

Somewhat surprised the recommendation is sell half rather than hold. The underlying IEP companies are very profitable. The sale of some of Icahn’s holdings in Netflix frees up a lot of cash and who is better at finding value and at bargain basin prices? I agree it is pricey and would not add to the position at this time.

Igor Greenwald

10/25/13 ‐ 3:51pm ET October 25, 2013 at 3:51pm ET

I think we only disagree on the tactics. The positives you list are excellent reasons to continue holding some. I just think 35% in seven weeks is reason to take some off the table too. I didn’t think last month that it was this big a bargain.

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