Icahn Enterprises vs. Hindenburg Research : Unpacking the Short Report

In this video, SmallCapSteve analyzes the short report issued by Hindenburg Research on Icahn Enterprises, a holding company owned by Wall Street legend Carl Icahn. SmallCapSteve delves into the report's claims that IEP units are inflated by over 75% and the stock trades at a 218% premium to net asset value, as well as the high dividend yield of 15.8% which Hindenburg claims is unsustainable. He also examines IEP's largest positions and how they have performed year-to-date, as well as Icahn's margin loans and their potential risks. Throughout the video, SmallCapSteve emphasizes the importance of critical thinking when analyzing short reports and making investment decisions.

0:00 – Introduction
2:00 – Who is Carl Icahn and what is Icahn Enterprises?
4:00 – Who is Nate Anderson and what is Hindenburg Research?
4:50 – How Jefferies has helped flog the stock
6:00 – IEP vs. Its Peers
8:00 – IEP's largest positions and how they have done YTD
9:10 – Icahn's margin loans
10:33 – Conclusion


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  1. If 85% of the 15% dividend is being paid to Icahn as units, why is that an unsustainable dividend? Is it really that big of a pyramid scheme if the external investors only make up 15% of the company?

    1. The issue is that Icahn keeps handing over an unsustainable amout in cashflow to 15% of shareholders, while taking out more stock, and then using it for a margin loan which isn’t a sustainable long term model. Eventually when the stock gets wacked due to either bad economic conditions, an investment failure, or just a short report jarring it loose (possibly in progress), those margin loans could crush the stock.We have no dog in this fight, but think if nothing else it’s a compelling argument. And hey, if the stock holds in there, and you want to play that game, you are getting a dividend at nearly a 50% yield (as of the recent lows).

  2. Dumb. The stock went up 29% today. Full recovery in progress after he announced the distribution is maintained.

  3. Such a lazy analysis. Direct read out of what Hindenberg said. No analysis at all – like hearing the news

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