Carl Icahn (Trades, Portfolio) made a name for himself as the vulture capitalist in the 1980's because he took positions in public corporations and demanded an initial makeover in management and corporate leadership.
Now, he is known as a shareholder activist and is known for causing shareholder prices to increase when he begins to purchase shares of a company. This has been dubbed the "Icahn lift."
Ichan currently owns 22 stocks in his portfolio, which holds a total value of ~$31.9 billion and has a quarter over quarter turnover of 2%. The two stocks with the highest conviction in his portfolio are eBay Inc (EBAY, Financial) and Icahn Enterprises LP (IEP, Financial).
eBay comprises 8.1% of Icahn's overall portfolio, with 46,271,370 shares that are valued at $2,596,750,000. The stock is currently trading at $57.06 a share and has a business predictability rating of 4.5 stars out of 5. According to our DCF calculator, EBAY's intrinsic value is $0.74 a share with a margin of safety at -7611%, which indicates the stock may be currently overvalued. Icahn increased his position in eBay for an average price of $52.70 a share.
The company's current EBITDA per share is $4.06 for the trailing twelve months ending in December 2014 and its growth rate was 7.10% for the year.
Earnings per share for the trailing twelve months was $0.05. Growth rate for the past year was at -97.70% and over the past ten years it was at -1.70%.
Icahn Enterprises LP (IEP, Financial)
Icah Enterprises makes up 31.5% of the shareholder activist's portfolio. He currently owns 108,810,845 shares of IEP with a total value of $10,061,700,000. IEP is currently trading at $89.98 a share.
The Peter Lynch earnings line is around $24.68, which indicates the stock may be overvalued.
EBITDA for the trailing twelve months as of December 2014 was $9.01 per share and the growth rate for the year was -72.30%.
One warning sign investors should watch out for is the company has continued to issue $2.8 billion in debt over the past three years. Another warning sign is gross margin has been in a long-term decline at an average rate of -13.1%.
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