Billionaire investor Carl Icahn made news again this week, with an open letter to Apple’s CEO, Tim Cook. As most know, the “Icahn Effect” has been a powerful one for Apple shareholders. Since he first announced a stake in Apple in August of 2013, the stock has more than doubled. In fact, each time Icahn publicly talks about Apple, the stock tends to go up.
But this time, instead of following Icahn into Apple, there is a another Icahn-owned stock that offers more upside. Plus, it comes with an added bonus: You can buy it at a cheaper price than what Icahn paid for his shares.
Icahn initiated a position in Manitowoc (symbol MTW) in late 2014 at $20.03 a share. He then added to his position in early 2015 at $20.69 a share. The stock now sells for $19.75. So the world’s best investor just did all the work for you. By his actions, he’s telling us that he thinks Manitowoc is cheap at $20.40. And that’s almost a $1 more than where the stock trades today.
Icahn owns almost 8% of Manitowoc now. And in February the company agreed to Icahn’s demand to separate its two businesses into two different companies, one for its crane business and the other for its food service business. According to analysts, this separation will create value for shareholders and could reprice the stock to $30 a share — or 50% return from its share price today. In addition to the potential revaluation of MTW shares from the split of its business lines, MTW is cheap on its current valuation. The stock trades at just 14 times forward earnings.
So today, you can get an edge on the world’s best investor by buying Manitowoc at a cheaper price than he did. And he is working for you, as a vocal shareholder, to unlock potentially 50% more value in the stock. Not a bad deal.
BillionairesPortfolio.com helps average investors invest alongside Wall Street billionaires. By selecting the best ideas from the best billionaire investors and hedge funds, our exited stock investment recommendations have averaged a 31% gain since 2012, beating even Carl Icahn’s record for the same period.
How to Invest Alongside Billionaire Investors without Having a Billion Dollars
Five Stocks Billionaires Think Can Double In Price
3/27/2014
One of the most profitable ways to piggyback the world’s best billionaire investors and hedge funds is by following their newest positions.
Over the past two weeks there has been significant buying from billionaire investors and hedge funds, which is usually a bullish sign for stocks. Let’s take a look at some of the most recent transactions:
1) Chesapeake Energy (CHK) – Legendary billionaire activist Carl Icahn recently added to his already large position in Chesapeake last week, buying 6.6 million shares at average price of $14.15. That gives Icahn an 11% stake. Chesapeake looks cheap at 9 times earnings, with a dividend yield of 2.5%, and selling at just two thirds of its book value of $21 a share.
2) Valeant Pharmaceuticals (VRX) – Billionaire hedge fund manager Bill Ackman, of Pershing Square, recently upped his stake in Valeant from 4.9% to 5.7% — at an average price of $196.72. Valeant has been a high flyer. It’s up 38% in 2015 and 54% over the past year. It’s hard to argue with Ackman’s timing. Almost every stock he has purchased over the past 2 years has gone straight up.
3) Manitowoc Company Inc. (MTW) – Billionaire hedge fund manager Larry Robbins, of Glenview Capital Management, initiated a new 6.3% position in Manitowoc — at an average price of $20.41. Manitowoc also happens to be owned by billionaire Carl Icahn. Icahn recently forced the company to split into separate companies, which could potentially unlock $10 of hidden value in this stock according to many wall street analysts.
4) EXA Corporation (EXA) – Billionaire George Soros recently purchased 1.26 million shares of EXA, or 9% of the company, at an average price of $10.10. EXA is small cap software and services company to the automotive industry that has been rumored to be an acquisition target at $16 to $20 share. That would be a 30% to 60% premium from its share price today.
BillionairesPortfolio.com helps average investors invest alongside Wall Street billionaires. By selecting the best ideas from the best billionaire investors and hedge funds, our exited stock investment recommendations have averaged a 31% gain since 2012, beating even the great Carl Icahn’s record for the same period.
How to Invest Alongside Billionaire Investors without Having a Billion Dollars
Five Stocks with Triple-Digit Potential If Boone Pickens Is Right About $80 Oil
