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Carl Icahn still going back to global basics with Commercial Metals (CMC, KFT, CLX & NAV)

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Legendary investor Carl Icahn has launched a takeover attempt for Commercial Metals ( CMC , quote ), pursuing another basic industry stock with substantial operations abroad such as Clorox ( CLX , quote ) and Navistar International International ( NAV , quote ) -- previous targets of his. At present, Icahn owns almost 10% of Commercial Metals, according to the article, "Icahn offers $1.7B for Commercial Metals" in USA Today .

Headquartered in Irving, Texas, Commercial Metals (CMC) recycles, manufactures and fabricates steel and metal products. Commercial Metals operates in Europe, Asia and North America, among other locales. Clorox (CLX) with its household goods and Navistar International (NAV), which makes trucks, generate substantial revenues from abroad at the consumer level, too.

Like Carl Icahn, Warren Buffett has also been buying companies with a wide global presence that offer basic consumer services such as Lubrizol, Kraft ( KFT , quote ), and Burlington Northern Santa Fe Railroad. This was detailed on www.emergingmoney.com in a recent article.

Share prices for these companies are currently depressed. For the year, even after Icahn's bid of $15 a share, a 31% premium from the recent close, Commercial Metals is still down by double digits. For 2011, Navistar International is down almost 40%. Clorox is almost 7% for the last six months. Despite all the upheaval in the headlines, both Carl Icahn and Warren Buffett are buying companies in stable industries that will benefit from global growth. This is a lesson for all investors to heed, particularly in current market conditions.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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