Billionaire Carl Icahn’s interest in Mentor Graphics is still puzzling analysts, as the company’s stock is rising.
Notorious for turning around many different flailing businesses, billionaire Carl Icahn has bought 12% of Mentor Graphics in recent weeks.
The move comes at a time puzzling to market analysts, as Mentor Graphic’s stock is rising.
Last year, perhaps, Mentor might have seemed a likely candidate for Icahn’s style of activism. Its stock was coming off a record low. Revenue was down and Mentor was running in the red amid a historic decline in the technology industry.
Since then, however, Mentor stock has more than doubled to $9.12, buoyed by its core market, the computer chip industry.
With its market share climbing, Mentor forecasts it will return to profitability this year and revenue near an all-time high. Shareholders just re-elected Mentor’s board of directors, so it’s an especially hard time to force a change.
Read more at OregonLive.com.
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