Why Icahn Enterprises LP Is Plunging Today
Icahn Enterprises LP (NASDAQ: IEP), a master limited partnership (MLP), can't seem to find a bottom. Units of the MLP were down by a hefty 17.6% on sky-high volume as of 10:07 a.m. ET Thursday morning.
What's sparking this latest sell-off? IEP's units appear to be reacting negatively to a long-form tweet by billionaire hedge fund manager Bill Ackman Wednesday afternoon. In the tweet, Ackman called the continued tolerance of IEP's margin lenders into question in the wake of Hindenburg Research's May 2 short report, and the MLP's subsequent multibillion-dollar decline in value. Since this report was published, IEP's value has dropped by a staggering 61.4%.
The crux of the situation is that investors have long been attracted to Carl Icahn's namesake MLP due to its enormous dividend yield, which presently stands at an eye-popping 28.9%. If the company can't maintain its quarterly distribution due to a credit crunch, however, the core thesis for owning this MLP will no longer hold true.
Source Fool.com
MLP SE Stock
Currently there is a rather positive sentiment for MLP SE with 3 Buy predictions and 0 Sell predictions.
With a target price of 10 € there is a hugely positive potential of 64.2% for MLP SE compared to the current price of 6.09 €.
