In a recent filing with the SEC, Carl Icahn revealed that he has increased his stake in speech-to-text software maker Nuance Communications (NASDAQ:NUAN) to nearly 11%. He did this after Nuance reported disappointing earnings and deeply disappointing Q3 guidance, and the stock plunged to new levels of cheapness.
But is Nuance stock cheap for a reason? Fool contributor Rich Smith thinks Icahn is making a big mistake in buying into this company -- maybe even as big as his mistake when he bought into Blockbuster. Listen in, and find out why.
Fool contributor Rich Smith owns shares of Apple. The Motley Fool recommends Apple, Ford, and Nuance Communications. The Motley Fool owns shares of Apple, Ford, International Business Machines, and Nuance Communications. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.