Carl Icahn has been busy, buying a stake in Apple (AAPL) with a plan to push up share prices, as well as buying a 6% stake in Talisman Energy. He also has a plan to restructure the company’s capital structure with the goal of creating shareholder value. The question remains whether or not he will be successful.
Talisman Energy is headquartered in Calgary, Alberta and holds exploration and development properties for its oil and gas business in numerous countries around the world.
Most analysts seem to be tepid in regards to this stock. It has never really made much progress. The idea of reshuffling assets to realize shareholder value seems to come up every couple years, always with very little result. The stock is seen to be trading at one of the highest multiples (of PE) of all similar Canadian companies.
Having said that, with seasonality and with very little promise in US large caps, some American investors are beginning to look at Canadian oil & gas companies. If there is a flow of capital from south of the border, that would be supportive of share prices.
I recently wrote about Suncor Energy (SU), which has fallen 1.5% over the ensuing month. That’s hardly encouraging. It still shows moderate momentum, but Talisman looks more promising.
National Bank (NA) has risen 1.2% since I wrote about it, but that only accounts for three trading days. It’s really not possible to assign any confidence to that result (but it’s still nice).