Activist investor Carl Icahn (Trades, Portfolio) has increased his stake in oil and gas company Cheniere Energy (LNG, Financial) by 17.2%, according to data reported by GuruFocus Real Time Picks.
Icahn purchased 3,328,629 additional shares on Sept. 14 at $52.77 per share, and now holds a 9.59% stake in the company. The stock has dropped 32% over the past year and has not posted a profit in the past 15 years. The stock price closed at $54.14 yesterday. Icahn has said previously in August that he believes Cheniere in undervalued.
The Houston-based company recently added two managing directors of Icahn Capital LP to its own board of directors.
"As we have done with a number of companies in the past, we hope to contribute meaningfully as Board members towards enhancing shareholder value at Cheniere,” Icahn commented in Cheniere’s press release.
In an interview with CNBC’s Squawk Box on Sept. 9, Jim Chanos (Trades, Portfolio) said he had a short position in Cheniere, as well as Royal Dutch Shell (RDS.B, Financial) and SolarCity (SCTY, Financial).
"LNG (liquefied natural gas) demand isn't growing anymore,” he said. “We already have excess capacity, and we're about to pretty much almost double the capacity globally over the next four years."
In the second quarter results, Cheniere reported updates for its six trains under development for the Sabine Pass liquefaction project. Train 1 is expected to operational later this year, while Train 3 and 4 will be operational in late 2016 and late 2017, respectively.
In FY 2015, diluted EPS was $0.21, up from loss per share of $1.12 the year before.
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