Carl Icahn is tweeting his latest big investment, Nuance communications. Is Icahn oversharing or is it really a good buy?
Carl Icahn may be 77 years old, but he’s found a way to talk about himself as if he were a 17 year-old – he’s on Twitter. The billionaire investor has taken to tweeting yet again to tell the world about one of his investments.
Icahn recently used Twitter to telegraph his every thought on Apple, be it his conversations with CEO Tim Cook or his thoughts on its valuation. Now Icahn is using the social medium to talk about an Apple supplier, Nuance Communications, of which Icahn owns nearly 17%. That makes him the company’s largest shareholder. Nuance’s technology is behind iPhone’s Siri’s software.
Icahn took to Twitter to announce who was filling two spots on the board:
Happy to have reached an agreement with Nuance Communications where Dave Schechter and Brett Icahn will join the board of directors.
— Carl Icahn (@Carl_C_Icahn) October 8, 2013
Brett is Carl Icahn’s son while Dave Schechter is a long-time Icahn employee. What’s more, Icahn wants to let the average Twitter user know exactly where he thinks his investment is going:
I'm optimistic their impact at NUAN will be similar to HAIN, where stock went from $20.20 to $79.56 over the 3 years they sat on the board. — Carl Icahn (@Carl_C_Icahn) October 8, 2013
Hain Celestial Group is an organic food maker. Icahn is that company’s major shareholder, owning over 15% of its stocks.
(Read more: Carl Icahn's tweets help boost shares of Nuance)
Is Icahn just touting his positions or should he be taken, well, Siri-ously?
CNBC contributor Gina Sanchez, founder of Chantico Global, looks at the fundamentals. She believes that while Nuance is known for its relationship with Apple, its real boost comes because it powers Apple’s rival Samsung’s S-Voice.
“I would agree with Carl Icahn that this stock has a long way to go,” says Sanchez. “Right now, it’s really undervalued.
According to Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, the charts disagree with Icahn and Sanchez.
“The technicals suggest lower levels ahead on this stock,” says Ross. “I’m not a buyer on this tweet or this chart.
Which will ultimately carry the day, the fundamentals or the technicals?
Watch the video above to see more analysis by Sanchez and Ross on Nuance.
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