Icahn Enterprises LP (NASDAQ:IEP) dropped over 12% on Feb. 28 after announcing they would be offering 3.2 million shares of depositary units for $63 per share. The stock was trading around $71.50 at the time, so of course the stock was going to drop to around $63. However, the stock continued lower to $60.05 and is currently trading around $60.40.
This is a very strong company, much like the man who founded the company, Carl Icahn. The dividend was recently increased from $1.40 to $4.00 annually, and now yields 6.6%. With the strong investments they have been making and the success of the CVR Refining IPO, which they made happen, I think their earnings will continue to rise and send the stock higher.
The Foolish Bottom Line
These three selloffs are providing buying opportunities. The downside is more than factored in to all of them, so I believe a run higher will happen within the next few months. The least worrisome of the issues discussed was that of the depositary units by Icahn Enterprises LP (NASDAQ:IEP), so this would be the “safest” of the three. I bought shares in all three of these companies after the initial drops and will continue to add to my positions if they head lower. I believe in these companies and do not have any doubt that they will get through current struggles. These all are long-term investment ideas, so do not be scared if they continue to trade erratically for the next week or two.
The article 3 Pullbacks Worth Buying originally appeared on Fool.com and is written by Joseph Solitro.
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