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Tuesday, 18 August 2015

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

21:28 Posted by cheez No comments
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: http://www.cnbc.com/2015/08/06/icahn-takes-stake-in-cheniere-energy-seeks-board-seat.html
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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