The Herd Continues to Flock Out of Icahn Enterprises
By: Joel Elconin
In Monday’s trading, the issue has shed another six and half points from Friday’s close (112.57) at its low (106), and is now attempting to retake the 107 level.
Interestingly, the current low coincides with the November 7 low (106.17). If the decline continues, there may be support at the psychological support level of 100, which is reinforced by the October 29 low (99.14).
However, even at 100, IEP is trading at 25% premium to Net Asset Value (NAV) from the end of November (75). With appreciation in some of the funds top holding over the past month (NFLX, HLF and AAPL) investors should pay close attention to the new premium and NAV when evaluating the issue.
Perhaps the Street is taking its cue, from some of the other high fliers of 2013 (Twitter and Facebook) that are retreating from inflated price levels as well. Along these lines, the S&P 500 futures are pulling back from its all time high established on Friday (1840) and all time high close (1836.50-both Thursday’s and Friday’s close).
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