Icahn Enterprises LP (IEP): Does It Need an Activist?

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So what’s an investor to do?

The call
Icahn Enterprises LP (NASDAQ:IEP)’ dividend yield has been erratic over the years, and I am not sure its current 7% yield is long for this world. As mentioned, the company is almost entirely owned by Icahn himself. While big insider ownership is a plus in many situations, this particular situation makes for limited liquidity and the risk that Icahn will take actions for himself, rather than shareholders.

The current valuation is compelling, and Icahn’s investments have certainly been on par as of late, but I believe this stock warrants a much deeper, more cautious look before any decision can be made.

The article Does Icahn Enterprises Need an Activist? originally appeared on Fool.com and is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix and has the following options: Long Jan 2014 $50 Calls on Herbalife Ltd. (NYSE:HLF).

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