It has something to do with longtime 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 an 8.2% stake in Cheniere Energy (Quote: LNG)
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 calms back down to $68 levels, still an 8.7% increase from its 1-month low.
Icahn's Icahn Lift has historically had 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 seem like a good time to buy for the medium-term while waiting for an activist action on the company.
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