Friday, December 18, 2009

Carl demonstrates the beauty of a track record (TTWO)

The best thing about being a Buffett or an Icahn? It's got to be when you finish the 13D(mandatory disclosure if you buy more than 5% of a company's shares), upload it, sit back in your chair, and watch yourself make millions simply because others see that you own a stock.

Last night, Carl Icahn filed a 13D with the SEC disclosing his share purchases in Take Two Interactive Software (TTWO). The company reported earnings last night, but there wasn't much surprise in those numbers, seeing as the company had updated financial guidance just a week and half ago. The 11% move in TTWO share today is due to Carl's filing

Note that he built his position in common stock over a period from 12/7-12/17 after the shares TANKED on the 4th due to very weak outlook, and then yesterday just before filing to disclose this position, was when he loaded up on call options, the position that would jump the most once he disclosed his stake. Well done.



Carl's involvement BY NO MEANS guarantees that TTWO shares are a great buy here, as his investments in Yahoo and Motorola demonstrate. Yes he did "average down" in his Yahoo stake, but he still was buying in the mid-20's, expecting that Microsoft-Yahoo deal to go through.

Copyright 2009 AlphaNinja

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