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Home>UPDATE: You will thank Carl Icahn for ousting this energy-company guru

UPDATE: You will thank Carl Icahn for ousting this energy-company guru

UPDATE: You will thank Carl Icahn for ousting this energy-company guru

10/06/2017

By Michael Brush, MarketWatch

Cheniere founder Charif Souki, pushed out by the activist investor, puts together new natural gas company Tellurian

Investors like to follow shareholder activists such as Carl Icahn to buy whatever they're buying as they push for changes at companies.

But here's another way to play this game.

Follow the top managers those activists push out because they disagree on strategy. If the excommunicated managers are any good, they'll set up a new company. And you can get in on the ground floor for potentially big gains.

A great example of this is energy company Tellurian Inc. (TELL). You've probably never heard of this company. But I predict it will be a major U.S. natural gas (NG) exporter in a few years. If I'm right, this stock could rise to $55 from current levels of around $11 a share -- a "five bagger."

The Tellurian tale

Tellurian's story begins in early 2015 when Icahn amassed a big position in Cheniere Energy Inc. (LNG), which buys cheap natural gas in the U.S. and freezes it into liquid natural gas, or LNG, for export. Cheniere sells LNG where natural gas is a lot more expensive than it is in the U.S., which pretty much means most of the world.

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