Bloomberg’s Betty Liu interviewed David Einhorn today, the firm provided the brief clip of the interview on the web and a re-cap write-up of the interview at Bloomberg.com. Here are his comments on St. Joe Company and Apple:
On St. Joe Company:
On Apple
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On St. Joe Company:
A takeover of St. Joe Co., the largest private landholder in northern Florida, is unlikely because the company’s financial condition would make financing a leveraged acquisition “very tough,” said hedge fund manager David Einhorn, who is short the shares.
Einhorn responded on Bloomberg Television to speculation that holders of the Watersound, Florida-based company may be discussing a buyout. The president of Greenlight Capital Inc. also said there are still bargains in the U.S. stock market and that European authorities risk credibility with too many government bailouts.
“This will be a hard thing to take private on a reasonable basis because there’s no cash flow,” Einhorn said in an interview today with Betty Liu on Bloomberg Television. “The company has negative profits with no means of generating ongoing cash to service debt. There is not a lot of bank lending to develop the land that St. Joe has in its cycle.”
On Apple
“Ordinarily when you have a brand of this quality with a product this quality and enthusiasm, usually your choice is, do you pay 60 times earnings, 80 times earnings?” Einhorn, who bought the shares about six months ago for around $240 said in an interview today with Betty Liu on Bloomberg’s “In the Loop.” With Apple, “Even now, when you net out the cash, you are paying a market multiple for obviously what is one of the better growth brand opportunities.”
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