Love Him or Hate Him, Carl Icahn’s On a Roll
Navistar International Corp. (NYSE:NAV)
Shares of this truck maker have come up 20.3 percent since the beginning of 2013, and Icahn owns over 10 million shares.
Icahn’s involvement in Navistar is of the “activist” nature. The man has called the company a “poster child for abysmal business decisions and poor corporate governance” — Harsh language, but backed up by a 59.2 percent decline in the company’s stock price over the past two years, punctuated by top- and bottom-line contraction in 2012. Navistar recently granted two board positions to allies of Icahn, who have arguably begun the process of helping turn the company around.
Shares of Netflix are up an incredible 83.81 percent this year to date, and Icahn owns over 1 million shares. Like Navistar, Icahn has also called Netflix an “example of poor corporate governance” (a phrase he apparently likes to use a lot), but the video-streaming company would beg to differ.
Before Netflix’s most-recent earnings report, this may have been a comment grounded in reality. Shares are a long way off from their highs near $300 in July of 2011, and the company took a bottom-line beating in 2012. But with subscribers on the rise and a competent plan for growth ahead of it, CEO Reed Hastings was quick to adopt a poison pill in order to prevent a hostile takeover. Icahn, for his part, wants the company to sell itself.
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Chesapeake Energy Corp. (NYSE:CHK)
Chesapeake’s stock chart looks a lot like many other companies Icahn invests in. That is, a long period of decline followed by a burst of growth. The man wouldn’t be worth nearly $15 billion if he didn’t know where to put his money, and Chesapeake may prove itself a winner yet with over 50 million shares.
Chesapeake’s stock has fallen 35 percent over the past two years, but has come up 14 percent since the beginning of 2013, punctuated by a surge that followed an announcement that controversial CEO Aubrey McClendon will retire in April.
CVR Energy (NYSE:CVI)
Shares of this energy company are up 16 percent since the beginning of 2013, and Icahn owns over 71 million of them. Unlike the other companies in this group, CVR has been on a tear for years, and is up over 230 percent since February of 2011.
Investing Insights: Is Chesapeake Energy’s Stock a Buy Now?