Carl Icahn’s asset allocation strategy originally published at long-term-investments.blogspot.com. Some of you might have heard something about Carl Icahn, the successful investor. Icahn manages around $21.5 billion in his asset management vehicle Icahn Capital Management.
Within the past, Icahn had proved a very good taste in investing. With only 19 shares, he is also a much undiversified guy and focused on stocks he really knows. In the past I’ve described his latest Q1 stock purchases.
Today, I would like to show you the latest stock moves from Carl Icahn of the second quarter.
Icahn loves cheap stocks and he is also a noisy guy like most of the activists. The average forward P/E of his latest acquisitions is only at 13.83 and earnings are expected to grow by 10.32 percent for the next five years.
Here are the latest dividend stock purchases:
CVR Refining LP (NYSE:CVRR) has a market capitalization of $4.00 billion. The company employs 832 people, generates revenue of $8.281 billion and has a net income of $595.29 million. CVR Refining LP (NYSE:CVRR)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.101 billion. The EBITDA margin is 13.30 percent (the operating margin is 11.55 percent and the net profit margin 7.19 percent).
Financial Analysis: The total debt represents 34.23 percent of CVR Refining LP (NYSE:CVRR)’s assets and the total debt in relation to the equity amounts to 78.83 percent. Due to the financial situation, a return on equity of 116.88 percent was realized by CVR Refining LP (NYSE:CVRR). CVR Refining LP (NYSE:CVRR) started to pay dividends this year, $1.58 on May 8 and $1.35 on August 05, 2013. Icahn increased the stake by 50%.
Icahn Enterprises LP (NASDAQ:IEP) has a market capitalization of $8.51 billion. The company employs 45,000 people, generates revenue of $15.654 billion and has a net income of $727.00 million. Icahn Enterprises LP (NASDAQ:IEP)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.882 billion. The EBITDA margin is 12.02 percent (the operating margin is 4.13 percent and the net profit margin 4.64 percent).
Financial Analysis: The total debt represents 34.81 percent of Icahn Enterprises LP (NASDAQ:IEP)’s assets and the total debt in relation to the equity amounts to 183.08 percent. Due to the financial situation, a return on equity of 8.48 percent was realized by Icahn Enterprises LP (NASDAQ:IEP). Twelve trailing months earnings per share reached a value of $3.90. Last fiscal year, Icahn Enterprises LP (NASDAQ:IEP) paid $0.40 in the form of dividends to shareholders. Icahn Enterprises LP (NASDAQ:IEP) increased the stake by 1.48%.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.41, the P/S ratio is 0.54 and the P/B ratio is finally 1.62. The dividend yield amounts to 6.61 percent and the beta ratio has a value of 0.85.
Transocean LTD (NYSE:RIG) has a market capitalization of $16.75 billion. The company employs 18,400 people, generates revenue of $9.196 billion and has a net income of $816.00 million. Transocean LTD (NYSE:RIG)’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.592 billion. The EBITDA margin is 39.06 percent (the operating margin is 17.21 percent and the net profit margin 8.87 percent).
Financial Analysis: The total debt represents 36.37 percent of Transocean LTD (NYSE:RIG)’s assets and the total debt in relation to the equity amounts to 79.13 percent. Due to the financial situation, a return on equity of 5.15 percent was realized by Transocean. Twelve trailing months earnings per share reached a value of $4.58. Last fiscal year, Transocean paid no dividends to shareholders. Icahn increased the stake by 6.57%.
