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Whale Watching: Carl Icahn

Tuesday, 29 Jul 2008 | 6:31 PM ET

In all the seven seas, there is no bigger whale than Carl Icahn. Should you trade in his wake?

Background

Lurking in the dark waters off the coast of New York, Carl Icahn is a crafty predator who often secretly attacks his prey through the press - hurling criticisms until his target relents.

Despite his 72 years of age this whale isn't afraid to get into the middle of a business brawl. Just weeks ago, Icahn blasted CEO Jerry Wang as Chief Yahoo and ultimately forced his way onto the Internet company's board.

As a result, Icahn appears to be perfectly poised for his preferred method of kill; the break-up. It’s a technique he first learned in the 80’s as he tore out the prime cuts of underperforming companies. His most famous break-up -- RJR Nabisco -- netted him a cool $1.3 billion.

Just the sight of him, sends other investors into a feeding frenzy because big profits are usually in this big whale's wake.

Now what about you? Should you swim alongside this big fish or might you drown while he feasts?

Trades

As of March 31st the following were Carl Icahn’s top 5 holdings; Biogen (BIIB), Blockbuster (BBI), Imclone (IMCL), Motorola (MOT) and Yahoo! (YHOO).

This hasn’t been the best Carl year, observes Karen Finerman.

Sometimes the most talented doctors have patients who die, adds Jeff Macke.

Read More:

> Whale Week: John Paulson

Whale Week: Carl Icahn
Discussing how to trade like Carl Icahn, with the Fast Money crew.



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Trader disclosure: On July 29, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (DIS), (MSFT), (WMT), (COST); Adami Owns (GS), ( C), (NUE), (MSFT), (AGU), (INTC), (BTU); Adami's Wife Works At Schering-Plough; Najarian Owns (TSO); Najarian Owns (WMT) Calls, (XLY) Calls; Najarian Owns (AAPL) Puts and stock; Finerman And Finerman's Firm Owns C; Finerman's Firm Owns (MRK), (GS), (VLO), (TSO), (MSFT), (SUN)

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