Tag Archives: Carl Icahn

Carl Icahn Speaks About Our Market Train Wreck

Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York in this February 11, 2014 file photo. Icahn said October 9, 2014, Apple Inc's shares could double in value and urged the company's board to buy back more shares using its $133 billion cash pile.  REUTERS/Brendan McDermid/Files (UNITED STATES)

Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network’s Neil Cavuto show in New York in this February 11, 2014 file photo. Icahn said October 9, 2014, Apple Inc’s shares could double in value and urged the company’s board to buy back more shares using its $133 billion cash pile. REUTERS/Brendan McDermid/Files (UNITED STATES)

Carl Icahn Speaks

Carl Icahn is becoming a DC activist just in time to help stimulate congressional talks on corporations being able to repatriate money to America at a lower tax rate, he told The Post.

Icahn — a day after GOP presidential front-runner Donald Trump unveiled his economic plan, which included corporate tax relief for repatriated funds — released a 15-minute video Tuesday titled “Danger Ahead,” giving his views on the US economy. Icahn also endorsed Trump for president.

The billionaire investor dedicated much of the video and a corresponding interview with The Post to the taxation rate of repatriated profits.

“We want to make sure companies have the ability to bring their funds [$2.2 trillion in overseas profits] back,” he told The Post.

“Repatriation [tax rate] should be 7 or 8 percent.” Presently, companies pay taxes in countries where they make the goods, and then a 35 percent rate when bringing the money back to the US.

Icahn said he had been in touch with Sens. Charles Schumer (D-NY) and Orrin Hatch (R-Utah) and Rep. Paul Ryan (R-Wis.), “and everyone wants to see a [reduced rate] bill” by December.

“I think Schumer, Hatch and Ryan want to see this happen,” Icahn said.

If they don’t succeed, Icahn said, the repatriation effort will stall in the 2016 presidential election year and the US will see more balance-sheet cash remaining overseas, out of Uncle Sam’s reach.

Icahn’s biggest stock position, meanwhile, is his stake in Apple, from which he would benefit greatly if the company can repatriate some of its $200 billion at a lower tax rate.

“Repatriation would be viewed as massively positive for Apple,” Friedman Billings Ramsey Capital analyst Dan Ives said.

Icahn Enterprises, the investor’s publicly traded vehicle that is a proxy for his investments, is down 28 percent this year and 37 percent over the past 12 months. The company took a $373 million loss last year, largely on energy stock declines.

Another top 10 Icahn holding is Herbalife, which, as of June 30, had 48 percent of its $750 million in cash overseas.

The foreign cash repatriation talks in Washington could use some help, a well-placed Senate source told The Post. “I think it’s a long shot it gets passed this year.”

The main problem is key Democrats want to spend the new proceeds collected from repatriation on a long-term highway funding bill.

But key Republicans are uncomfortable with that idea because they are concerned that once repatriated money slows, Congress may have to raise taxes to pay for continued highway funding.

Not all business interests, especially big tech companies, are for repatriation at lower tax rates as they now have an excuse to not bring back foreign profits. So Icahn calling senators and being vocal on the subject makes a difference, the source said.

Icahn in the video explains why he is for repatriation.

“If that money came back, it would [be used] for jobs.”

“That money is given to somebody who will invest in this country. As opposed to taking the money in Europe and investing in Ireland or somewhere like that.”


All About CARL ICAHN–Book, Lecture, Research, and Articles

Icahn  I hope you grasp how Carl’s methods fit his personality perfectly. I strongly suggest you view the video, then the research report by Lazard and finally tackle the book.

Seven years ago, activist investor Carl Icahn spelled out a blueprint for breaking up media conglomerate Time Warner (TWX) into four separate entities.

See Lazard’s 2006 Analysis on Time Warner for Icahn here (Good research example): lazard_twx 

With this week’s decision by CNNMoney’s parent company to spin off Time Inc., Icahn’s prediction is finally coming true. But he won’t be able capitalize on it. By late 2008, Icahn had completely sold his stake.

In 2006, Icahn pushed for Time Warner to essentially split itself into a content company, a publishing company, a cable services company and an Internet company.

Time Warner’s Time Inc. spin-off will mark the final step in turning the company into exactly what Icahn and a consortium of other activist investors wanted.

Back then, many questioned Icahn’s case for breaking up Time Warner. Icahn’s main foe at the time, former Time Warner CEO Richard Parsons, won that battle. Parsons refused to break up Time Warner, but he agreed to buy back more stock to get Icahn to stop pushing for a breakup (and a new CEO). Icahn wanted to bring in former Viacom (VIA) CEO Frank Biondi to replace Parsons, who eventually stepped down as CEO in late 2007.

Under CEO Jeff Bewkes, who succeeded Parsons, Time Warner spun off Time Warner Cable (TWC) and AOL (AOL) in 2009. Shares of all three companies have solidly outperformed the broader market since those spin-offs.

Related: Is Time Inc. better on its own?

While the two central characters in the Icahn vs. Time Warner showdown have stepped away from the battlefield, analysts and investors cheered this week’s spin-off announcement. Time Warner’s stock has gained nearly 3% since the spin-off was announced late Wednesday and is up nearly 19% so far this year.

Several analysts upgraded the stock and increased their price targets. “The announcement measurably improves Time Warner’s growth profile, margin profile, and rids the mother company of a business which has been under secular siege for quite some time,” B. Riley Caris analyst David Miller wrote in a research note.

Back in 2006, Lazard, working on behalf of Icahn and other shareholders, estimated the content side of Time Warner could be worth as much as $61 billion, while the publishing unit could be worth $14.1 billion.

Today, Credit Suisse analysts estimate that, post-spinoff, Time Warner’s content divisions could be worth as much as $75 billion, while Time Inc. would be worth about $4.1 billion.

Lecture by Icahn at Yale (He recommends reading Aristotle)

60 minutes video: http://youtu.be/wZjms7rRAQw

Articles on Icahn: Icahn Articles130307124234-time-warner-carl-icahn-614xa

Book on Carl Icahn View this folder

plus two other goodies……….just click on View this folder above and download.

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Danny Devito as Carl Icahn: