David Einhorn

David Einhorn

Last Update: 04-18-2016

Number of Stocks: 48
Number of New Stocks: 15

Total Value: $5,456 Mil
Q/Q Turnover: 28%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

David Einhorn Watch

  • Stocks in the Spotlight

    Indexes had a nice rebound along with oil on Tuesday on renewed optimism that oil producers will look to curb production in the near future. The problem with this is twofold. For one, Saudi Arabia has been pretty adamant that it plans to keep producing oil in order to preserve market share. Second, more supply is set to hit the market, this time from Iran whose sanctions have been lifted. Neighboring Iraq is also set to increase its oil production from 3.8 million barrels per day to 4 million plus.


    The main stock to watch on Wednesday, Jan. 27, will be Apple (NASDAQ:AAPL) whose shares are down after hours after it reported better-than-expected earnings but missed analyst estimates on revenue. Earnings came in at $3.28 per share on $75.9 billion in revenue vs. analyst expectations of $3.23 per share on revenue of $76.54 billion.

      


  • David Einhorn May Push for SunEdison Sale

    SunEdison (SUNE) is an important position for David Einhorn (Trades, Portfolio) with a 6.8% stake (4% through Greenlight Capital). SunEdison does everything from development and finances, up to installment and operation of solar power plants. It is one of the largest renewable energy companies in the world (market cap of nearly $1 billion) and is headquartered in the U.S.


    Last year, it was one of Einhorn's biggest losers as the firm declined over 90% after announcing a controversial deal with Vivint in July 2015. This deal involves a complicated transaction with Vivint and TerraForm Power (NASDAQ:TERP). The latter is a company that often buys developed projects from SunEdison. Guru, and now activist shareholder, David Tepper (Trades, Portfolio) has been railing against the deal.

      


  • Polaris Industries and Spirit Airlines Are on the Casualty List

    Sometimes bad things happen to good stocks.


    In an effort to find bounce-back candidates, I compile a quarterly Casualty List of stocks that I think have been unduly punished by the marketplace.

      


  • Einhorn Invests in Macy's

    David Einhorn (Trades, Portfolio) has also jumped on the Macy's (NYSE:M) express along with fellow activist Starboard Value. The guru, who had a terrible 2015, is looking for some redemption, and the Macy's thesis makes a lot of sense.


    Retail, as a whole, is currently out of favor. Many firms are struggling, distressed or already bankrupt. Macy's is doing much better by comparison but isn't exactly knocking the ball out of the park, either, and its share price has suffered:

      


  • David Einhorn Comments on ARM Holdings

    Our thesis for our short position in ARM Holdings (ARM) was that falling chip prices,slowing smartphone growth and more competition from Intel would limit ARM’s potentialroyalty pool. Two of the three have occurred, but Intel’s progress has been disappointing.Also, ARM was more successful than we expected in offsetting its problems by increasing theroyalty rate it charges its customers. We covered the position at a small loss and moved on.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Micron Technology

    MU (NASDAQ:MU) was our biggest winner in 2014 and our biggest loser in 2015. We have written a lotabout it and have exited the position. When all the dust settled, our average purchase was at$19.93 and our average sale was at $22.14, generating an IRR of 14%. The coulda-woulda-shoulda perspective that this was a disaster is belied by the overall decent return we made onthe investment.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Cairn Energy

    We exited our position in Cairn Energy (LSE:CNE). The downturn in oil prices was negative but tolerable; however, the ongoing retroactive extraterritorial taxation claims by India made profitable ownership of Cairn impossible. We initiated a small position in early 2012 at £2.72and gave up at £1.54.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Bank of New York Mellon

    We decided to sell our position in Bank of New York Mellon (NYSE:BK) with a small profit. We becamemoderately less comfortable with the market exposure in both the Investment Services andInvestment Management segments and felt that the market was giving the company too muchcredit for potential earnings leverage to multiple Fed rate hikes.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Applied Materials

    We entered Applied Materials (NASDAQ:AMAT) at $20.31 after the Tokyo Electron deal fell apart, with a viewthat margin improvement through cost cutting and aggressive buybacks could lead to earningsoutperformance. Despite reasonable execution and lots of share repurchases, concerns aboutoverall spending levels in the semiconductor capital equipment space mattered more. The riskof a pending cyclical downturn caused us to exit at $18.21 with a small loss.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Mylan

    We initiated a position in Mylan (NASDAQ:MYL), a global generic pharmaceuticals company. MYLshares fell 29% in the first three quarters of 2015 and over 45% from their mid-year highsafter generics rival Teva abandoned a hostile takeover bid for the company. During the fall,the market became overly focused on a series of overhangs including potential earningsdilution from a proposed and ultimately failed buyout of Perrigo (a private-label OTC business); corporate governance concerns including an unusual takeover-defense mechanism;and widespread unease about the pharmaceutical sector amidst scrutiny of specialty pharmaceutical manufacturers like Valeant.


    We acknowledge eventual headwinds for the company’s branded EpiPen product, whichcould encounter competition from generics in late 2016. However, we see medium-termupside from a competitor recall, an announced share repurchase, and board review ofcorporate governance complaints. Ultimately, we expect MYL to earn close to $7 per share in2018, driven by a robust pipeline of respiratory, injectable and biologic drugs and by furthercapital deployment including share repurchases. We initiated our position at an average priceof $45.32, about 9x 2016 consensus EPS estimates. MYL shares ended the quarter at $54.07.

      


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