How We Made 20.5% In 3 Months With Carl Icahn

Legendary investor Carl Icahn recently added a “sizable position” of Apple to his $16 billion holding company — Icahn Enterprises.

Since he announced his purchase Sept. 11, Apple is up about 20%.

After making the purchase, Icahn was quoted saying it was a “no-brainer” investment, citing that the company’s valuation was “extremely cheap” by the numbers.

Icahn should know, too. Unlike most of today’s billionaires, he made his fortune entirely by investing in the stock market. Since he founded Icahn Enterprises less than 30 years ago, his company has enjoyed total returns in excess of 288,000%.

To put that in perspective, if you had invested $1,500 with him back in 1987, the size of your position would be worth over $4.3 million today

That kind of performance is one reason Chartered Market Technician Michael J. Carr recently designed a trading system to leverage the financial genius of investing gurus, like Icahn.

By applying his proprietary trading system to stocks that are held by the market’s 20 most successful gurus — including Warren Buffett, George Soros and David Einhorn — Michael has earned big gains betting alongside the world’s most renowned investors.

For example, on Sept. 12, Michael’s system identified a buy on Netflix (NASDAQ: NFLX), one of Carl Icahn’s top portfolio holdings. Just three months after his system gave the signal, Netflix is up over 20%.


But Michael doesn’t like Netflix just because it’s in Carl Icahn’s portfolio. After all, you can’t simply buy every stock the gurus own and expect to come out ahead. Guru investors like Icahn tend to have endless capital and an unlimited amount of time. They can wait years for their investments to become profitable.

Unfortunately, most of us can’t afford that luxury. We don’t have five to 10 years for our ledger to turn green. That’s why Michael’s system was designed to uncover only the “guru stocks” with the highest likelihood of outperforming the market right now.

To maximize his chances of finding those stocks, Michael’s system relies on two technical tests. Specifically, he only recommends stocks that have high relative strength (RS) and strong cash flow growth.

The first test, relative strength, measures how a stock is performing against its peers. For example, a relative strength of 50 would mean the stock is outperforming exactly 50% of the overall market.

To get his system’s attention, a stock’s RS rating must be at least 70 (the stock must have risen faster than 70% of the market during the past six months). This ensures Michael only recommends companies that are starting to move higher — and thus have the highest likelihood of outperforming — right now.

The second test is cash flow strength. Since cash is the lifeblood of any business, a company that is growing cash flow quickly has a better likelihood of investing in new projects, increasing its dividend or buying back more stock. As a result, companies increasing their cash flow have a better chance of returning value to shareholders than those that don’t.

Netflix is a perfect example of a “guru stock” that passed both tests. As Michael said when he initially recommended the stock in September:

NFLX has been one of the strongest stocks in the market over the past six months with a RS rank of 100 and gain of more than 60%. In the most recent quarterly report, the company reported that cash flow from operations increased almost 75% compared to a year ago, and free cash flow per share grew by 43%.

According to Michael, those characteristics partly explain why Netflix has been one of the market’s best-performing stocks lately. Michael’s 20.5% gain in Netflix serves as a testament to the power of “guru trading.” When you apply rigorous technical analysis to the portfolios of the best investing minds on the planet, you’ve built a system — and portfolio — that’s all but destined to outperform.

Michael’s success investing alongside the world’s best investors led to the creation of Guru Trader — a premium newsletter designed solely to employ his proprietary guru-based system. So far, every stock Michael has recommended in his Guru Trader portfolio is in the green… including one that’s up 35.9% in 54 days — or 694.3% annualized.

Right now, you can still get access to Michael’s Guru Trader system at the lowest price we’ll ever offer. This price point is only good for the next few days. To learn more about Guru Trader and how you can get Michael’s next trade in your inbox for the lowest price you’ll ever see — follow this link.