Carl Icahn on CNBC says a
lot of companies are 'way overvalued'
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[October 18, 2016]
YORK (Reuters) - Billionaire investor Carl Icahn warned on Monday that
many S&P 500 companies are "way overvalued," considering
soft-to-weakening economic growth in the United States as well as in
Reiterating his stance on equities, Icahn said on CNBC, "I've been
concerned for a few years, and more and more concerned. I think it's
very difficult when there (are) so many people in the middle class that
really don't have the income that they counted on, pension funds are way
underfunded ... in a market, economy that has inflation."
Icahn, chairman of Icahn Enterprises, said he is cautious about the U.S.
stock market on a long-term basis, but on the short-term period, it is
Icahn said he runs a large portfolio and that there are a few gems in
Icahn cited Herbalife Ltd, American International Group Inc and Cheniere
Energy Inc as "uniquely undervalued." He added that it takes "years and
years and years" to reap huge profits from activism and that serious
investors need to be "extremely patient."
About Herbalife, Icahn declined to comment on Bill Ackman, who has been
on the opposite side of the bet on the stock, and added that he stood by
his major investment.
Herbalife is "undervalued, a good model and gives jobs to a lot of
people," Icahn said.
David Tepper, Appaloosa Management president and founder, was on the
same CNBC segment and also provided a gloomy backdrop for U.S. equities:
"It's a difficult environment. It's an environment (with) OK, not great
Tepper said he is "pretty cautious" on the market and "not outright
"We're pretty light on the stock market right now. And we have a lot of
cash. We're probably more positioned in the bond market right now," he
[to top of second column]
Billionaire activist investor Carl Icahn gives an interview on FOX
Business Network's Neil Cavuto show in New York February 11, 2014.
U.S. presidential candidates Hillary Clinton and Donald Trump, Tepper said: "You
have one person with a questionable judgment and the other person that may be
demented, narcissistic and a scumbag. I'm not saying which one is which. You can
make your own decision on that."
Tepper said, "As far as support, I am sitting on the sidelines. I'll probably
vote for one - I'll vote at the end of the day. I'm in Florida, so my vote
(Reporting By Jennifer Ablan; Editing by Nick Zieminski and Meredith Mazzilli)
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