Why Icahn Enterprises LP Is Plunging Again Today
Icahn Enterprises LP (NASDAQ: IEP) is having another rough trading session in the wake of Hindenburg Research's searing short report released yesterday. Specifically, the depository units of the master limited partnership (MLP) were down by 19.6% as of 12:32 p.m. ET Wednesday afternoon.
IEP's units have so far lost 41.2% of their value this week. That equates to an approximately $6 billion dent in the diversified holding company's market capitalization.
This pronounced drop in IEP's value over the past two days isn't surprising in light of Hindenburg's contention that the company might be overvalued by more than 75%. The short-selling firm also contends that IEP's massive dividend yield, which has been the main reason for owning its units over the past decade, may have to be either dramatically reduced or eliminated altogether due to a perceived lack of liquidity.
Source Fool.com
