Stockpickr: How to Trade Like Carl Icahn

Super investor Stevie Cohen, who runs SAC Capital (up 34% in 2006 and averages 30% a year since inception in 1992) also owns WCI according to that Stockpickr page. It's also worth noting that SAC followed Icahn into TWX.

Symantec(SYMC Quote) is another recently accumulated Icahn holding that I like. I don't recall ever seeing Icahn own a tech company before. Right now it looks like he is just accumulating shares, but if the stock goes lower perhaps he will get active. Symantec is in the security-software business and Icahn could be betting on several trends.

Internet security will be a problem forever. Windows Vista probably introduces more security holes than it plugs, and the need for outside software vendors beyond Microsoft to aid in security will never end. Also, many larger software companies are buying their smaller peers (e.g. Oracle buying PeopleSoft for instance.

Symantec has had problems recently. The company announced on Jan 15 that sales were 14% lower last quarter than a year ago. However, it is still integrating the data storage business acquired through Veritas, and when that division is fully integrated they will be able to more easily package security software with storage sales. At 10 times cash flow, this is a fairly stable bet at these levels and that's the bet Icahn is making.