Voltari Corp (NASDAQ:VLTC) retreated yesterday after making huge gains and hitting 52-week high a day earlier. The company was flooded with optimism after news surfaced that the activist investor, Carl Icahn had bought a stake in the company. In a regulatory filing, Icahn revealed that he had upped his stake in the mobile marketing and advertising technology company.
Calculating at an average price of $0.85 per share, Icahn now owns nearly 600% stake in Voltari Corp (NASDAQ:VLTC). Icahn held 29.8% stake in the company, when it was known as Motricity. Icahn had recently bought as much as 4 million Voltari shares by way of rights offering priced at $1.36 per share. Icahn’s interest in the company gave a reason to street investors to amass the shares of it against expectations that the company is bound to perform in the near future.
It is interesting to note that Voltari Corp (NASDAQ:VLTC) is relatively a new company, which was carved out of Motricity only in 2012. Later Motricity became a holding company of Voltari following reorganization.
Meanwhile, a Seeking Alpha author, Edward Vranic has mentioned in his report on Voltari Corp (NASDAQ:VLTC) that the company’s vast deferred tax assets place the company as a potential acquisition target. The report mentioned that the company has accumulated as much as $187 million in deferred tax assets, which could be utilized by a profitable company to cut down its own taxes.
Vranic opines that Icahn, being an activist investor, would pursue Voltari Corp (NASDAQ:VLTC) to unlock its tremendous fundamental value. The large net operating loss of tax sitting carry forwarded is an opportunity for Icahn to derive more value from the stock. In view of these prospects, the fall in Voltari Corp (NASDAQ:VLTC)’s stock seems to be temporary. The share price of the company increased nearly 4% to $3.95 during the Pre-market hours today.