David Einhorn, value investor and head of hedge fund Greenlight Capital, bought three new stocks in the fourth quarter: Google Inc. (GOOG, Financial), Vodafone Group Plc (VOD, Financial) and Western Digital Corp. (WDC, Financial). Greenlight Capital since inception in May 1996 has returned 19.4% on annualized basis, net of fees and expenses, after underperforming the market being up 8.3% 2012. New Buys
Google Inc. (GOOG)
Einhorn bought 63,000 shares of Google Inc. for an average price of $700 per share in the fourth quarter. Google shares on Friday are $792.20, touching an all-time high.
Google in the past five years has grown at the following rates per share: 22.9% for revenue, 17% for EBITDA, 21.8% for free cash flow and 25.5% for book value.
In 2012, its revenue grew to $50.2 billion, from $37.91 billion in 2011. Net income increased to $10.74 billion, from $9.74 billion. Google also has over $56 billion in cash on its balance sheet.
On Jan. 22, Google reported a 36% year-over-year increase in revenue to $14.42 billion. Net income was $2.89 billion, compared to $2.71 billion in the fourth quarter of 2011.
Google has a P/E of 23.78, P/B of 3.4 and P/S of 5.1.
Vodafone Group Plc (VOD)
Einhorn bought 1.6 million shares of Vodafone for $27 per share on average in the fourth quarter.
Holding history:
Vodafone is a mobile communications company with a global presence with equity interests in more than 30 countries and more than 40 partner markets.
Vodafone has the following growth rates per share: 7.7% for revenue, 5.3% for eBITDA and 0.8% for book value. Free cash flow per share declined at a rate of 6.5%.
For the quarter ended Dec. 31, 2012, Vodafone reported £11.39 billion in revenue, a 2% decline from a year previously.
Vodafone has a P/E of 21.7, P/B of 1.2 and P/S of 1.87.
Western Digital Corp. (WDC)
Einhorn bought 600,000 shares of Western Digital Corp for $37 per share on average. Western Digital shares on Friday afternoon are priced at $48.59. Einhorn owned the stock at much lower prices before, in 2008 and 2009:
Western Digital provides products and services that preserve digital content, such as storage devices, networking equipment and home entertainment products under the name brands of WD, HGST and G-Technology.
In the past five years some of its business fundamentals increased at the following rates: 9.5% for revenue, 14.1% for EBITDA, 23.3% for free cash flow and 27.4% for book value.
In the quarter ended Dec. 28, 2012, Western Digital reported $3.8 billion in revenue, up from $2 billion a year previously, and net income of $513 million, or $2.09 per share, compared to $145 million, or $2.09 per share, a year previously.
Western Digital has a P/E of 5.9, P/B of 1.4 and P/S of 0.78.
See David Einhorn’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of David Einhorn.
Google Inc. (GOOG)
Einhorn bought 63,000 shares of Google Inc. for an average price of $700 per share in the fourth quarter. Google shares on Friday are $792.20, touching an all-time high.
Google in the past five years has grown at the following rates per share: 22.9% for revenue, 17% for EBITDA, 21.8% for free cash flow and 25.5% for book value.
In 2012, its revenue grew to $50.2 billion, from $37.91 billion in 2011. Net income increased to $10.74 billion, from $9.74 billion. Google also has over $56 billion in cash on its balance sheet.
On Jan. 22, Google reported a 36% year-over-year increase in revenue to $14.42 billion. Net income was $2.89 billion, compared to $2.71 billion in the fourth quarter of 2011.
Google has a P/E of 23.78, P/B of 3.4 and P/S of 5.1.
Vodafone Group Plc (VOD)
Einhorn bought 1.6 million shares of Vodafone for $27 per share on average in the fourth quarter.
Holding history:
Vodafone is a mobile communications company with a global presence with equity interests in more than 30 countries and more than 40 partner markets.
Vodafone has the following growth rates per share: 7.7% for revenue, 5.3% for eBITDA and 0.8% for book value. Free cash flow per share declined at a rate of 6.5%.
For the quarter ended Dec. 31, 2012, Vodafone reported £11.39 billion in revenue, a 2% decline from a year previously.
Vodafone has a P/E of 21.7, P/B of 1.2 and P/S of 1.87.
Western Digital Corp. (WDC)
Einhorn bought 600,000 shares of Western Digital Corp for $37 per share on average. Western Digital shares on Friday afternoon are priced at $48.59. Einhorn owned the stock at much lower prices before, in 2008 and 2009:
Western Digital provides products and services that preserve digital content, such as storage devices, networking equipment and home entertainment products under the name brands of WD, HGST and G-Technology.
In the past five years some of its business fundamentals increased at the following rates: 9.5% for revenue, 14.1% for EBITDA, 23.3% for free cash flow and 27.4% for book value.
In the quarter ended Dec. 28, 2012, Western Digital reported $3.8 billion in revenue, up from $2 billion a year previously, and net income of $513 million, or $2.09 per share, compared to $145 million, or $2.09 per share, a year previously.
Western Digital has a P/E of 5.9, P/B of 1.4 and P/S of 0.78.
See David Einhorn’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of David Einhorn.
