Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Tuesday, 18 August 2015

Icahn Lift Investment Strategy (Carl Icahn Investment in Cheniere Energy)

Today, we will be discussing about an investment strategy/trend that I noticed.
It has something to do with long time Activist Investor Carl Icahn.
Previously I had used this trend to invest in Apple Inc and made some money (will share the post soon).
However, recently Mr Icahn has invested in another company.
I figured this time the same trend MIGHT work again, thus it is worth sharing!

Some other investment strategies that I have shared before below:
1) 30% Gain from Netflix
2) My Investment Loss from Amazon
3) A 2-week Trading Tip

Carl Icahn has acquired a 8.2% stake in Cheniere Energy (Quote: LNG)
Article can be found here:
Might seek board representation on the company (become the board of director)

Cheniere Energy
Deals in liquefied natural gas

Since the disclosure of the position, Cheniere Energy rose to a peak of $70.92, a 13.4% increase from its 1-month low ($62.53) on 27th July 2015.
This uplift in share price is also known as 'Icahn Lift'
It subsequently calm back down to $68 levels, still a 8.7% increase from its 1-month low.

Icahn's Icahn Lift have historically have the effect of lifting a stock price up for several days before the stock price goes back down to average.
The 52 weeks lowest point of the share is at around $63 - $65.
So picking up shares at around levels below $65 while waiting for Carl Icahn to push for higher shareholder value seems like a good investment for the short to medium term.

As a side note, Cheniere Energy is currently also trading on its 1-year low, which might seems like a good time to buy for the medium-term while waiting for an activist action on the company.

Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

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