Navistar International Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Navistar International (NYS: NAV) drove as much as 16% higher today before dropping to a more modest gain of 8% mid-day.
So what: The big news today is that billionaire investor Carl Icahn has purchased a 9.8% stake in the company. Icahn is an activist investor and is trying to get his own people on the board but so far he hasn't taken any actions to unlock value in the company.
Now what: The excitement over Icahn's stake didn't last long as shares trended lower throughout the day. Icahn has a good history of creating value for shareholders but he rarely plans to hold shares long-term, instead choosing quick fixes for companies. I wouldn't buy just because Icahn did, but if you do think Navistar is a value this can give your position a little more confidence.
Interested in more info on Navistar International? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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