{"id":44146,"date":"2013-11-14T05:50:17","date_gmt":"2013-11-14T10:50:17","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44146"},"modified":"2013-11-14T05:50:17","modified_gmt":"2013-11-14T10:50:17","slug":"one-tweet-and-a-carl-icahn-protege-away-from-an-84-6-profit","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/14\/one-tweet-and-a-carl-icahn-protege-away-from-an-84-6-profit\/","title":{"rendered":"One Tweet and a Carl Icahn Prot\u00e9g\u00e9 Away From An 84.6% Profit"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

What do you get when you cross a flurry of like-minded tweets with the offspring of one of the world\u2019s most successful activist investors?<\/p>\n

(No, this isn\u2019t some terrible Wall Street joke.)<\/p>\n

You get the perfect storm for a stock to nearly double in short order.<\/p>\n

And now that I\u2019ve officially got your attention, let\u2019s get to the opportunity\u2026<\/p>\n

Tweets Matter<\/b><\/p>\n

While I don\u2019t believe Twitter\u2019s<\/b><\/a> (TWTR<\/a>) stock holds any investment merit, I certainly don\u2019t feel the same way about the information that traverses its network.<\/p>\n

Time and time again, everyday investors telegraph their buying and selling activity by tweeting their opinions on publicly traded stocks beforehand.<\/p>\n

For those \u201clistening in\u201d to the chatter, the tweets provide valuable sentiment information that can be used to determine entry and exit points in particular stocks.<\/p>\n

I\u2019m not the only one who thinks so, either.<\/p>\n

As The Wall Street Journal<\/i> reports, there are \u201ca host of financial firms that see untapped trading potential<\/a> in [Twitter].\u201d They\u2019re cashing in on it, too, by weeding out the senseless chatter to find the meaningful market information. They then sell the data to traders, who use it as actionable intelligence.<\/p>\n

The reason I\u2019m bringing this up is simple: On October 31, one of these \u201csocial listening firms,\u201d Trade Ideas LLC, noticed an unusual uptick in mentions of Fidelity National Financial, Inc. <\/b>(FNF<\/a>). The stock received 12 times the average mentions in a single day.<\/p>\n

The title insurance company should ring a bell with you. Why? Because on February 28, I singled out Fidelity National<\/a> as one of five overlooked and undervalued ways to capitalize on the ongoing recovery in the residential real estate market<\/a>.<\/p>\n

The stock has performed as predicted – up 8.62% since that time. Compare that to the wildly popular iShares Dow Jones U.S. Home Construction ETF<\/b> (ITB<\/a>), which is down 2.93% over the same period. <\/a><\/p>\n

While the outperformance isn\u2019t much to brag about, new information suggests that Fidelity National could be on the cusp of leaving ITB in the dust and rallying 84.6%.<\/p>\n

An Icahn-Trained Activist Investor Will Lead the Charge <\/b><\/p>\n

After doing some digging, it turns out that the uptick in social media buzz involving Fidelity National coincides with a 13-D filing by Corvex Capital, run by Keith Meister.<\/p>\n

For those unaware, a 13-D filing is required when an investor acquires a 5% or larger stake in a particular company.<\/p>\n

The \u201cD\u201d designation means that the investor plans to play an active role in bringing about change at the company – like demanding a board seat or pressuring management to put the company up for sale. Hence the \u201cactivist investor\u201d label often attached to such filings.<\/p>\n

The most widely known activist investor is, of course, Carl Icahn.<\/p>\n

Well, guess what? Meister served as Icahn\u2019s right-hand man, until he left to found Corvex in 2011.<\/p>\n

You think he learned a thing or two from his former boss? I believe that would be a safe assumption. But we don\u2019t have to guess. All we have to do is look at his track record\u2026<\/p>\n