This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Icahn Likes H-P, Siebel, Rite Aid

Updated from 4:37 p.m. EDT

Shares of Rite Aid (RAD - Get Report), Siebel Systems (SEBL) and Hewlett-Packard (HPQ - Get Report) perked up in a dismal market Friday when activist billionaire Carl Icahn disclosed new stakes in them and several other companies.

Icahn Partners said in a 13F with the Securities and Exchange Commission that it owns 10 million common shares of Rite Aid worth about $39.6 million; about 4.5 million shares of Siebel worth $41.3 million; and about 104,000 shares of H-P worth $2.2 million. All three stakes are new since Icahn's previous quarterly filing.

Rite Aid was recently up 15 cents, or 3.9%, to $4, while Siebel rose 47 cents, or 2.3%, to $20.62 and Siebel gained 10 cents, or 1.1%, to $9.69.

Separately, Tudor Investment has taken a much larger stake in Siebel. According to a filing made Wednesday with the SEC, Tudor purchased 24.2 million shares of the troubled software maker, a stake that represents 4.7% of the company's outstanding shares.

A source on Wall Street said the shares were purchased from Fidelity Investments, but that could not be confirmed independently.

Although the exact timing of when he acquired his newest holdings isn't known, Icahn bought into H-P during a time of substantial change at the technology giant.

H-P has been roiled this year by the very public dismissal of CEO Carly Fiorina stemming from a contentious takeover of Compaq and the subsequent difficulties that H-P has had in competing with the nimbler Dell (DELL) and the broader IBM (IBM).

The company responded by bringing in Mark Hurd to be the new CEO. He was previously the top executive at NCR and was highly regarded on Wall Street for his operational abilities.

As for what Icahn has planned for H-P, his stake is extremely minimal, representing only four-thousandths of a percent of the outstanding share base. Still, it does show that significant power players on Wall Street are taking an interest in what H-P is doing and where it is going.

"That doesn't surprise me at all," says Jeff Embersits, principal with Shareholder Value Management, a portfolio subadvisory firm that is long H-P '07 LEAPS, in noting the acquired stake. Icahn probably sees the potential for more costs to come out of H-P and that this will help the stock and the company over the long term, Ebmbersits says.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs