Carl Icahn Buys 6% Stake In Talisman Energy (NYSE:TLM) - Should You Buy?

This morning as I was looking over the news, I read with interest that Carl Icahn had taken a 6% stake in Talisman Energy Inc (NYSE:TLM). Talisman Energy is a large Canadian energy company.

On October 1st, the Trade Triangles flashed a major buy signal for Talisman Energy at $11.95. I suspect that this was partly due to the price action that was reflected by Mr. Ichan's purchase of Talisman shares.

1.All Time High. (2) 12 Month Base. (3) +(4) Double Bottom. (5) Trade Triangle Buy at $11.95.

(6) Major Pivot Point. (7) 50% Fib Retracement $17.41. (8) 61.8% Fib Retracement $19.21.

What is also interesting is how Mr. Icahn picks stocks like Talisman Energy. I have witnessed the same actions in play in several other stocks that Mr. Icahn has purchased in the past 12 months. Stocks like Apple, Netflix, Herbalife, and most recently, Talisman, all display similar characteristics. I suspect that the technicals play a part in his overall approach to the market. The timing of Mr. Icahn's stock purchases are amazingly close to the timing of our Trade Triangle buy signals.

Today, we are looking at a chart of Talisman Energy and the stock action looks good from a technical viewpoint, as well as from our Trade Triangles. The potential for this market to go significantly higher is there, in my opinion. Of course, I will be using our Trade Triangles for money management to exit this position, should it not work out the way I expect it to.

As always, please share your thoughts with us on this or any other market.

Adam Hewison
Co-Creator, MarketClub

Google, Microsoft, and what the Dell?

The soap opera for Dell (NASDAQ:DELL) continues with Michael Dell and Carl Ichan, the principal figures in this financial showdown. It's too early to say what's going to happen, but my money will be with Carl Ichan on this one. Michael Dell has had this time with the company and the stock which is what shareholders thought didn't do well under his stewardship. On the other hand, Carl Ichan has done very with his investments and has a track record of being a "disruptive force in the boardroom".

NEWS FLASH: Just this morning it was announced we are going to have to wait until the 24th of July when everyone is going to reconvene to have another meeting on taking Dell private.

Change equals opportunity and Mr. Ichan does represent change. He also has a successful track record and is holding substantial stakes in companies like, RJR Nabisco, TWA, Texaco, Phillips Petroleum, Western Union, Gulf & Western, Viacom, Uniroyal, Dan River, Marshall Field's, E-II (Culligan and Samsonite), American Can, USX, Marvel Comics, Revlon, Imclone, Federal-Mogul, Fairmont Hotels, Blockbuster, Kerr-McGee, Time Warner, Motorola, Netflix and Herbalife.

Can Mr. Ichan turn Dell around? Fortunately or unfortunately we are going to have to wait until the 24th of July to find out the fate of Dell.

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So what are you waiting for? Let's get started right away!

After the bell, Google (NASDAQ:GOOG) is expected to announce earnings of $10.78 per share vs $10.12 per share last year. I will be looking at that stock today and doing a quick analysis of what I think is going to happen after the earnings are announced.

Likewise, Microsoft (NASDAQ:MSFT) is expected to announce earnings $0.75 per share vs $0.67 per share last year. I will also take a look at that stock today and see if Microsoft has what it takes to compete in the new mobile world.

Enjoy the video, and every success in your own trading.

Adam Hewison
Co-Creator, MarketClub

Today's Video Newsletter: Is Carl Icahn using our Trade Triangle technology?

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 8th of March.

It seems that every time our Trade Triangles signal a move in the market, Mr. Icahn follows suit a little bit later. Coincidence? Perhaps. If you look at some of Mr. Icahn's recent announcements, you may get to see a pattern. A couple of days ago we talked about TransOcean, the next day Mr. Icahn fires off a letter to TransOcean about its poor capital allocation and capital structure. We signaled back in December that we received a bullish Trade Triangle signal in Netflix, next month in January we see Mr. Icahn taking a position. The same thing also happened in Yahoo, which begs the question... is Mr. Icahn using our Trade Triangle technology or something similar? Continue reading "Today's Video Newsletter: Is Carl Icahn using our Trade Triangle technology?"