The stock market has sold off to the point where some stocks are essentially being "given away," notable activist investor Carl Icahn said on CNBC's "Halftime Report" Friday afternoon.
Even though the stock market is in an ongoing "state of collapse," investors can have their pick of a few "very cheap" shares, Icahn said. Icahn said he has been buying some stock, and most recently he upped his stake in Occidental Petroleum Corporation (NYSE: OXY) and Hertz Global Holdings Inc (NYSE: HTZ).
Despite the recent sell-off, Icahn said there are "many very overpriced" stocks with hefty multiples and a lot of debt. There are a lot of companies who may have made the mistake of over-borrowing cash to finance share buyback activities, Icahn said.
Why It's Important
Occidental, along with others like HP Inc (NYSE: HPQ) are "good companies" that investors shouldn't hesitate to buy, he said. Any investors looking to further duplicate Icahn's action may want to consider his "biggest position by far" which is a short position in commercial real estate.
Icahn said he has been bearish on stocks for quite some time and expects to see stocks sell off more, but he is "not quite as bearish" as he was in the past.