Icahn Enterprises LP (IEP)

9/30/2020 Randa Duncan Williams Director Buy 15,000 $1,000.00 $15,000,000.00

Dividend yield can lead you into a trap if you're not careful. you noticed that the divisor of the formula for dividend yield is the stock's price per share. If the price drops and the dividend remain the same, the dividend yield will rise. (this is what is happening to this stock). You may buy a company with a high dividend yield, but one that is also on its way to the poor house and may not be able to afford to pay any dividend in the near future. (look at its earnings. how long can this dividend last? you take 10% but you face the risk of larger capital depreciation, you are paying yourself while more money got trap). . What do the other fundamentals look like? Dividends are paid out of cash and cash comes from? Does the company have a healthy supply of cash and a consistent history of earnings and earnings growth? no. its earnings and cash flow are negative.. . this company has huge debt, how is that going pay? is it mature soon?. . a sinking share price using "dividend" as last resort.

10% dividend has its price to pay. they have got negative net operating income, net earnings, and cash flow from operating activities, high total liabilities, high debt ratio and low equity. where is the money coming to cover all of the latter? its a matter of time they crash the equity price.

I am long on this. Bought Strike @ 60 call options. Lets see.