Billionaire Carl Icahn’s Stock Picks for 2013

Netflix. Icahn had also made news late last year by taking a large position in Netflix, and he reported owning 5.5 million shares of the stock at the end of December. Billionaire Eddie Lampert’s ESL Investments has also been buying shares of Netflix (see Lampert’s stock picks). 18% of the outstanding shares are held short, and the forward P/E- which is based on expectations that Netflix’s business is fairly stable and will be able to grow its earnings over the next couple years- is 68. The highly volatile stock has been on the upswing overall in the last year, up 54%. Netflix faces severe challenges due to content costs and is also investing in overseas expansion, and as a result its bottom line has suffered even as the company has been successful in adding subscribers. Revenue was actually up 8% in the fourth quarter of 2012 compared to the same period in the previous year.

Dumping Oshkosh. This one wasn’t quite news either: Icahn failed in an activist campaign to gain more power of Oshkosh Corporation (NYSE:OSK)’s Board of Directors through a tender offer, and reported no shares on his 13F. Oshkosh is a $3.5 billion market cap manufactures vehicles and vehicle bodies, generally for industrial, military, or public service functions. While the activist battle is over, in terms of valuation metrics Oshkosh actually looks cheap as is: it carries trailing and forward P/Es of 15 and 12, respectively, and earnings were up last quarter compared to the fourth quarter of 2011.

We’d consider Netflix just too speculative and volatile to take any position on right now. Oshkosh, Transocean, and even Chesapeake meanwhile at least have potential as value stocks (we’d take Icahn’s sales of Oshkosh as an acceptance that he will not have influence over the Board, rather than him actually being bearish on the stock). Natural gas prices are certainly challenging for Chesapeake, and Transocean may be dependent on high oil prices as well, but we think they are still worth considering.

Disclosure: I own no shares of any stocks mentioned in this article.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!