Why Icahn Enterprises Stock Is Falling Today
Icahn Enterprises (NASDAQ: IEP) announced in a financial update Wednesday the net asset value of its holdings dropped significantly in the fourth quarter, though it did keep its quarterly dividend intact. Investors are viewing the glass as half-empty, sending shares of IEP down as much as 14% on Wednesday and off 8% as of 1 p.m. ET.
Carl Icahn is a legendary activist investor, but of late the focus has mostly been on activists questioning the investor's business setup. Last spring, Hindenburg Research released a report calling Icahn Enterprises "substantially overvalued" and arguing that IEP relied on a "Ponzi-like" structure to fund its dividend.
The stock lost about half of its value following the Hindenburg report and has never recovered.
Source Fool.com
