Following Icahn Into Nuance Could Reward Investors
Following a legendary investor into a stock can be a compelling proposition, but should investors actually do it? Recently, Carl Icahn has been in the news with huge gains from positions in Apple, Netflix, and Herbalife to name a few. One rarely mentioned position is the one that Icahn has been accumulating in Nuance Communications (NASDAQ: NUAN ) on each drop of the stock.
While Icahn has been very successful with numerous positions, the biggest risk for somebody following his moves or any other legendary investor is that they can exit a position and cause the stock to crash before the small investor even knows what happened. Another major concern is chasing a position after somebody of the stature of Icahn files for a greater than 5% holding.
Read the full article here.
Disclosure: Long NUAN. Please review the disclaimer page for more details.