This Day On The Street
Continue to site
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

Soros, Icahn Make Eight-Figure Bets on Stocks

By David Sterman

NEW YORK ( TheStreet) -- Billionaire investors George Soros and Carl Icahn helped push up the shares of Exar (EXAR - Get Report) and Hain Celestial (HAIN - Get Report), respectively, last month.

Above are the most significant acquisitions of stock.

Exar rose more than 3% in September after the chipmaker's stock fell to a low for the year at the end of August. Hain climbed 2.5% last month, bringing the year's gains to 41% at the health foods and tea company.

As October begins, I took a look at the most significant purchases of company insiders. I focused on the 26 companies that saw at least $1 million in insider buying this past month. Here's a breakdown of three stocks.

Hain Celestial: As we've seen with the case of Motorola (MOT), hedge fund investor Carl Icahn never makes a small bet. (Read Carl Icahn's Favorite Stock.)

Motorola is Icahn's favorite stock, but Hain Celestial may be a close second. Icahn has been steadily buying shares of this health foods and tea maker on the open market, and just acquired another $30 million worth in September. Curiously, he's been buying shares even as they have been steadily rising. Insider buying is more often associated with beaten-down stocks.

This is an unusual growth story. The company has a long history of acquisitions, helping to boost sales 10% to 20% most years. But in the absence of acquisitions, organic growth has been very small. And investors tend to avoid growth-led acquisition strategies because they don't always boost the bottom line. Indeed, Hain Celestial's earnings per share have hovered between $0.50 and $1 for most of the past eight years.

Recent trends have become a bit more favorable. Per-share profits are likely to rise more than 25% to around $1.30 this year, but in the absence of more deals, profit growth is expected to slink back to single-digits next year.

From Icahn's perspective, near-term profits may not be the litmus test. Instead, he likely sees an asset that is being built that would ultimately make a nice fit for a larger food maker such as Kraft (KFT), Nestle or Conagra (CAG). But that's a risky strategy. Who knows if such a deal will materialize? Hain Celestial looks only modestly undervalued by traditional investment metrics, so anyone looking to ride along with Icahn may be counting on him to do some cage-rattling to unlock shareholder value, as he has done with Motorola.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AEO $14.51 -0.75%
EXAR $6.11 -1.10%
ESI $2.02 -7.10%
HAIN $41.10 -1.60%
PRIM $22.93 -2.50%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs