While the stock market is for everyone, there are always a few people who seem to do better than the average person. They become known through the financial press because while the trading of companies is what happens, behind the trading are people. For example, many people have heard about Warren Buffett. in a previous era was Milken Milken, and another person who has been a Wall Street legend for nearly 50 years is Carl Icahn. Mr. Icahn has been a corporate raider and activist shareholder making Boards of Directors bow down to his demands and change corporate business strategies.

In an article by Michaeal J De La Merced of the New York Times News Service, a company that specializes in short selling which is to buy shares in a company expecting them to fall is focusing on Mr. Icahn’s company Icahn Enterprises. The short seller company is called Hindenburg Research and they believe Icahn Enterprises trades above its net asset value because its dividend is being financed by selling stock.

In that fashion, Icahn has been using money taken in from new investors to pay out dividends to old investors or a Ponzi-like economic structure. Icahn Enterprises responded by saying Hildenburg report was a self serving short-seller report to generate profits on Hindenburg’s short position at the expense of the Icahn Enterprises long term unit holders.

(it is noted, if a company believes another company’s shares should fall, then it has to send out press releases to say that and if they are correct the price of the shares will fall.)

Linking to dividend paying stocks, there is a saying you reap what your reward, for a long time Mr. Icahn has been an outsider to Wall Street because he was a corporate raider and buys into companies to change them. It is not surprising that someone is trying the same tactics on Mr. Icahn for there likely is some merit in the report. How much merit, time will tell. Mr. Icahn has done very well over the years and is in the billionaire category of investors, sometimes you make friends, if you wish to change company strategies you will make enemies along the way. The wonderful thing about investing in profitable companies which can pay dividends is there are no enemies to make. The company does its service to the public. makes a profit and pays a dividend to you. You can be informed of the raiders, but you do not have to trade that way if you do not want to for long term investing, buying profitable companies that pay a dividend works.

There are more questions than answers, till the next time – to raising questions.