Carl Icahn Weighed Down By Investments (IEP, BIIB, MOT, YHOO, FDML)

Icahn_logo_2Icahn Enterprises LP (NYSE: IEP) is perhaps known more for its billionaire owner/founder Carl Icahn more than it is for its staff, team efforts, and even the enterprise’s name.  Icahn’s investment vehicle posted a loss for Q2-2008 as investment losses mounted.  The company lost $98.8 million versus a profit of $64.2 million year over year from Q2-2007.

So far, Icahn’s investments in Biogen-Idec (NASDAQ: BIIB), Motorola (NYSE: MOT), and Yahoo! (NASDAQ: YHOO) are only partly offset by the recent gains (unrealized) in ImClone Systems (NASDAQ: IMCL).  Being an activist investor made Carl Icahn a billionaire. That hasn’t made him immune to making wrong investment activist target picks.

Icahn Enterprises posted a loss at -$1.37 EPS (technically earnings per”unit).  There are no earnings estimates on this as results canfluctuate wildly from quarter to quarter depending on equity values andon realized gains and losses.  To show evidence of this, the LP showednegative revenue of $149.7 million versus revenue of $783.1 million theprevious year. Icahn has essentially taken majority control ofFederal-Mogul Corp. (NASDAQ: FDML) as of July 3.

Icahn’s units are having a tough year so far long before today camealong.  Shares of the units are down over 4% today on thin volume at$64.00, and the 52-week trading range is $51.52 to $136.67.  If you arenot a unit-holder and are worried about Mr. Icahn and his fortune(s),don’t worry yourself too much.  He can handle it.

Jon C. Ogg
August 12, 2008

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