Nuance Communications: Billionaire activist investor Carl Icahn said he had raised his stake in the speech recognition software maker, sending shares sharply higher Friday. Josh Brown said Nuance is "a perfect Carl Icahn stock" because he thinks the underlying company is ripe for change and has a lot of opportunity for improvement.
"They've got great technology, but it's a bad business," said Brown, a wealth manager with Fusion Analytics overseeing $400 million in assets for high-net-worth individuals, retirement plans and charitable foundations. "They've got areas they can shed. They can be more efficient. They could do a much better job at communicating their value proposition," he added.
If the technicals are any indicator, Brown thinks NUAN is a "really easy trade." The stock has found support at $18 a share all year, so he recommends putting a stop just below that level and then just letting "Carl Icahn do his magic."