ICAHN, A Message.

Sobering. I’m not qualified to say if it was a good video … but it was damn entertaining! 8DD

That’s a good video OW.

Agree with some of it:

  • “Earnings Mirage” as he calls it. The ridiculous amount of “pro forma”, “reorganization” “non-recurring” adjustments investors are accepting/companies are selling in their “adjusted non-GAAP reporting” is getting out of hand.
  • The high yield space did get very hot in the last 3 years and investors have piled in looking for any available yield. This market has pulled back a bit in the last month or so, particularly with smaller credits. The flows into the likes of Blackrock is a direct response to the sustained low rates he complains about.
  • Trump & carried interest - like him or loathe him, Trump’s not beholden to anyone. Oddly, the democrats agree with him on the carried interest position but none of them do anything. Why the bonus element of the 2 & 20 P/E fee structure is subject to CGT rather than full tax is donkey. They’re using someone else’s money, it’s not their capital for a gain to be achieved on.

Don’t agree with some of it:

  • “the offshore money is sitting outside the states”. It’s not a huge problem. The foreign subs can and do invest it back into the US, it just can’t flow up through the corporate family tree and be paid out in shareholder dividends. His comment though on the dilly dallying around a potential tax window (0% or 15%) is valid.

Ichan is always interesting.