Hindenburg Research has another catch!
Hindenburg Research said Tuesday it has a short position in Icahn Enterprises, the conglomerate controlled by activist investor Carl Icahn, making it the latest in a string of recent high-profile targets for the company.
As a result, shares of Icahn Enterprises $IEP-0.2% are down more than 12% after Hindenburg disclosed that the valuation of IEP units was inflated by more than 75% and that "IEP trades at a 218% premium to its most recently reported net asset value (NAV), which is much higher than all comparable companies."
It was also noted that Icahn might be involved in a Ponzi scheme. In short, Icahn was to use the money raised from new investors to pay dividends to old investors.
What do you think? Is this going to be another big hit for Hindenburg? 🤔