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David Einhorn Buys EMC Corp., Kinross Gold Corp., Ticketmaster, Sells Covidien Ltd., Microsoft Corp., Patriot Coal Corp.

David Einhorn profited from the falls of Wall Street brokers. But he was also hurt by the recent market crash. Now he is getting out healthcare stocks and moving into techs. David Einhorn owns 24 stocks with a total value of $1.4 billion. These are the details of the buys and sells during the third quarter.

David Einhorn buys EMC Corp., Kinross Gold Corp., Ticketmaster, Pomeroy IT Solutions Inc., sells Covidien Ltd., Microsoft Corp., Patriot Coal Corp., Sears Holdings Corp., Tyco Electronics Ltd., UnitedHealth Group Inc., Walgreen Company, WellPoint Inc. during the 3-months ended 09/30/2008, according to the most recent filings of his investment company, Greenlight Capital Inc.

For the details of David Einhorn's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=David+Einhorn

Added: Dr Pepper Snapple Group Inc. (DPS)

David Einhorn added to his holdings in Dr Pepper Snapple Group Inc. by 30.2%. His purchase prices were between $20.2 and $26.52, with an estimated average price of $23.2. The impact to his portfolio due to this purchase was 4.09%. His holdings were 9,484,120 shares as of 09/30/2008.

DR PEPPER SNAPPLE Group is one of the largest beverage companies in the Americas. They manufacture market and distribute more than 50 brands of carbonated soft drinks juices ready to drink teas mixers and other premium beverages across the United States Canada Mexico and the Caribbean. Dr Pepper Snapple Group Inc. has a market cap of $4.36 billion; its shares were traded at around $17.56 with a P/E ratio of 8.82 and P/S ratio of 0.77.

Added: Helix Energy Solutions Group Inc. (HLX)

David Einhorn added to his holdings in Helix Energy Solutions Group Inc. by 29.6%. His purchase prices were between $25.85 and $38.39, with an estimated average price of $31.4. The impact to his portfolio due to this purchase was 3.54%. His holdings were 9,093,892 shares as of 09/30/2008.

Helix Energy Solutions Group Inc. is a leading marine contractor and operator of offshore oil and gas properties and production facilities. The company seeks to align the interests of the producer and the contractor by investing in mature offshore oil and gas properties hub production facilities and proven undeveloped reserve plays where Helix Energy Solutions Group adds value by deploying vessels from its diverse contracting fleet. This unique integration of marine contracting and oil and gas operations is designed to add stability to revenues and earnings in an industry as cyclical as energy. Helix Energy Solutions Group Inc. has a market cap of $780.65 million; its shares were traded at around $8.45 with a P/E ratio of 2.32 and P/S ratio of 0.37.

Added: Republic Airways Holdings Inc. (RJET)

David Einhorn added to his holdings in Republic Airways Holdings Inc. by 80.32%. His purchase prices were between $7.29 and $11.73, with an estimated average price of $9.4. The impact to his portfolio due to this purchase was 0.56%. His holdings were 1,741,500 shares as of 09/30/2008.

Republic Airway is a holding company that operates Chautauqua Airlines Inc. and Republic Airline Inc. Republic Airways Holdings Inc. has a market cap of $427.80 million; its shares were traded at around $12.81 with a P/E ratio of 4.98 and P/S ratio of 0.29.

Added: ECHOSTAR CORPORATION (SATS)

David Einhorn added to his holdings in ECHOSTAR CORPORATION by 9.15%. His purchase prices were between $26.66 and $33.19, with an estimated average price of $30.7. The impact to his portfolio due to this purchase was 0.3%. His holdings were 2,108,516 shares as of 09/30/2008.

ECHOSTAR CORP is a publicly traded company. They intend to operate two primary businesses a digital set-top box business and a fixed satellite services business. Their set-top box business designs develops and distributes set-top boxes and related products for direct-to-home satellite service providers. ECHOSTAR CORPORATION has a market cap of $1.36 billion; its shares were traded at around $15.42 with P/S ratio of 0.54.

Added: TERADATA CORP (TDC)

David Einhorn added to his holdings in TERADATA CORP by 4.25%. His purchase prices were between $20.61 and $25.15, with an estimated average price of $23.2. The impact to his portfolio due to this purchase was 0.22%. His holdings were 3,935,510 shares as of 09/30/2008.

Teradata Corporation is the world's largest company focused on raising intelligence through data warehousing and enterprise analytics. Teradata is located in more than forty countries. Teradata is a trademark or registered trademark of Teradata Corporation in the United States and other countries.Number of employees in Teradata Corporation is 5300 TERADATA CORP has a market cap of $2.22 billion; its shares were traded at around $12.01 with a P/E ratio of 9.08 and P/S ratio of 1.23.

New Purchase: EMC Corp. (EMC)

David Einhorn initiated holdings in EMC Corp.. His purchase prices were between $12.57 and $15.74, with an estimated average price of $14.2. The impact to his portfolio due to this purchase was 1.55%. His holdings were 1,850,100 shares as of 09/30/2008.

EMC Corporation and its subsidiaries design manufacture market and support a wide range of hardware and software products and provide services for the storage management protection and sharing ofelectronic information. These integrated solutions enable organizations tocreate an enterprise information infrastructure or what EMC calls anE-Infostructure. EMC is the leading supplier of these solutions which comprise information storage systems software and services. EMC Corp. has a market cap of $20.41 billion; its shares were traded at around $9.98 with a P/E ratio of 13.50 and P/S ratio of 1.39.

New Purchase: Kinross Gold Corp. (KGC)

David Einhorn initiated holdings in Kinross Gold Corp.. His purchase prices were between $13.74 and $23.25, with an estimated average price of $17.7. The impact to his portfolio due to this purchase was 1.32%. His holdings were 1,170,232 shares as of 09/30/2008.

Kinross Gold Corporation is an entrepreneurial mining company which has become a million-ounce gold producer. With their primary low cost operations on four continents the Company has become a major player on the international market. Kinross Gold Corp. has a market cap of $8.01 billion; its shares were traded at around $12.23 with a P/E ratio of 22.46 and P/S ratio of 5.70. The dividend yield of Kinross Gold Corp. stocks is 0.64%.

New Purchase: Ticketmaster (TKTM)

David Einhorn initiated holdings in Ticketmaster. His purchase prices were between $10.74 and $24.56, with an estimated average price of $18.1. The impact to his portfolio due to this purchase was 0.5%. His holdings were 665,518 shares as of 09/30/2008.

As the world's leading live entertainment ticketing and marketing company Ticketmaster connects the world to live entertainment. Ticketmaster operates in twenty global markets providing ticket sales ticket resale services marketing and distribution through www.ticketmaster.com one of the largest e-commerce sites on the Internet; approximately 6700 retail outlets; and 21 worldwide call centers. Established in 1976 Ticketmaster serves more than 10000 clients worldwide across multiple event categories providing exclusive ticketing services for leading arenas stadiums professional sports franchises and leagues college sports teams performing arts venues museums and theaters. In 2007 the company sold more than 141 million tickets valued at over $8.3 billion on behalf of its clients. Ticketmaster is headquartered in West Hollywood California and is traded on the NASDAQ stock exchange Ticketmaster has a market cap of $334.44 million; its shares were traded at around $5.87 with a P/E ratio of 2.87 and P/S ratio of 0.23.

New Purchase: Pomeroy IT Solutions Inc. (PMRY)

David Einhorn initiated holdings in Pomeroy IT Solutions Inc.. His purchase prices were between $3.38 and $5.2, with an estimated average price of $4.4. The impact to his portfolio due to this purchase was 0.31%. His holdings were 990,934 shares as of 09/30/2008.

As a solution provider Pomeroy IT Solutions offers three categories of service: enterprise consulting enterprise infrastructure solutions and client management services. Pomeroy has clientele across a broad spectrum of industries governments and educational organizations. Pomeroy IT Solutions Inc. has a market cap of $36.03 million; its shares were traded at around $3 with P/S ratio of 0.06.

Reduced: Mercer International Inc. (MERC)

David Einhorn reduced to his holdings in Mercer International Inc. by 43.78%. His sale prices were between $4.14 and $7.11, with an estimated average price of $6.1. The impact to his portfolio due to this sale was -0.03%. David Einhorn still held 257,447 shares as of 09/30/2008.

Mercer International Inc. owns and operates a diverse pulp and paper business in the southern German states of Saxony and Thuringia in the former East Germany. The Company operates it's pulp business primarily through its subsidiaries Spezialpapierfabrik Blankenstein GmbH and Zellstof-und Papierfabrik Rosenthal GmbH & Co. KG and conducts its paper business through another subsidiary Dresden Papier GmbH. Mercer International Inc. has a market cap of $61.19 million; its shares were traded at around $1.68 with P/S ratio of 0.07.

Reduced: M.D.C. Holdings Inc. (MDC)

David Einhorn reduced to his holdings in M.D.C. Holdings Inc. by 82.14%. His sale prices were between $34.75 and $43.66, with an estimated average price of $40.1. The impact to his portfolio due to this sale was -1.66%. David Einhorn still held 785,386 shares as of 09/30/2008.

M.D.C. HOLDINGS INC. is engaged in the construction sale and related financing of residential housing and the acquisition and development of land for use in its homebuilding activities and sale to others in the Denver Phoenix Maryland Virginia mid Atlantic region Las Vegas Dallas California metropolitan areas. They are also is involved in real estate brokerage property management condominium conversions and fee construction of apartment and commercial buildings. M.D.C. Holdings Inc. has a market cap of $1.22 billion; its shares were traded at around $27.27 with P/S ratio of 0.66. The dividend yield of M.D.C. Holdings Inc. stocks is 3.19%.

Reduced: Ameriprise Financial Inc. (AMP)

David Einhorn reduced to his holdings in Ameriprise Financial Inc. by 83.44%. His sale prices were between $38.68 and $44.62, with an estimated average price of $42.2. The impact to his portfolio due to this sale was -2.44%. David Einhorn still held 1,092,916 shares as of 09/30/2008.

AMERIPRISE FINANCIAL INC. is a financial planning and services company with financial advisors and registered representatives that provides solutions for clients' asset accumulation income management and insurance protection needs. The Company's financial advisors deliver tailored solutions to clients through a personalized financial planning approach built on a long-term relationship with a knowledgeable advisor. The Company specializes in meeting the retirement-related financial needs of the mass affluent and affluent. Financial planning services and investments are available through Ameriprise Financial Services Inc. Member FINRA and SIPC. Ameriprise Financial Inc. has a market cap of $3.79 billion; its shares were traded at around $18 with a P/E ratio of 6.83 and P/S ratio of 0.48. The dividend yield of Ameriprise Financial Inc. stocks is 3.23%.

Reduced: Target Corp. (TGT)

David Einhorn reduced to his holdings in Target Corp. by 48.71%. His sale prices were between $44.43 and $57.26, with an estimated average price of $50. The impact to his portfolio due to this sale was -6.02%. David Einhorn still held 3,590,000 shares as of 09/30/2008.

Target Corporation operates large-store general merchandise formats including discount stores moderate-priced promotional and traditional department stores. They provide exceptional value to consumers through multiple retail formats ranging from upscale discount and moderate-priced to full-service department stores under the following names: Target Mervyn's California Dayton's Marshall Field's and Hudson's. Target Corp. has a market cap of $24.45 billion; its shares were traded at around $33.03 with a P/E ratio of 9.66 and P/S ratio of 0.38. The dividend yield of Target Corp. stocks is 1.75%.

Sold Out: Sears Holdings Corp. (SHLD)

David Einhorn sold out his holdings in Sears Holdings Corp.. His sale prices were between $70.91 and $101.48, with an estimated average price of $87.1. The impact to his portfolio due to this sale was less than 0.01%.

Sears Holdings Corporation the parent of Kmart and Sears Roebuck and Co. is the leading home appliance retailer in North America and is a retail sales leader in tools lawn and garden home electronics and automotive repair and maintenance. Key proprietary brands include Kenmore Craftsman and DieHard and a broad apparel offering including such well-known labels as Lands' End Jaclyn Smith and Joe Boxer as well as the Apostrophe and Covington brands. Sears Holdings Corp. has a market cap of $4.76 billion; its shares were traded at around $38.27 with a P/E ratio of 11.50 and P/S ratio of 0.10.

Sold Out: Microsoft Corp. (MSFT)

David Einhorn sold out his holdings in Microsoft Corp.. His sale prices were between $25.15 and $28.02, with an estimated average price of $26.5. The impact to his portfolio due to this sale was less than 0.01%.

Microsoft develops manufactures licenses and supports a wide range of software products for a multitude of computing devices. Microsoft software includes scalable operating systems for servers personal computers and intelligent devices; server applications for client/server environments; knowledge worker productivity applications; and software development tools. The Company's online efforts include the MSN network of Internet products and services and alliances with companies involved with broadband access and various forms of digital interactivity. Microsoft Corp. has a market cap of $174.06 billion; its shares were traded at around $20.06 with a P/E ratio of 10.25 and P/S ratio of 2.92. The dividend yield of Microsoft Corp. stocks is 2.05%.

Sold Out: Tyco Electronics Ltd. (TEL)

David Einhorn sold out his holdings in Tyco Electronics Ltd.. His sale prices were between $27.19 and $36.12, with an estimated average price of $32.7. The impact to his portfolio due to this sale was less than 0.01%.

Tyco Electronics Ltd. global provider of engineered electronic components for thousands of consumer and industrial products; network solutions and systems for telecommunications and energy markets; and wireless systems for critical communications radar and defense applications. They design manufacture and market products for customers in industries ranging from automotive appliance aerospace and defense to telecommunications computers and consumer electronics. Tyco Electronics Ltd. has a market cap of $6.57 billion; its shares were traded at around $14.5 with a P/E ratio of 3.86 and P/S ratio of 0.45. The dividend yield of Tyco Electronics Ltd. stocks is 3.62%.

Sold Out: Patriot Coal Corp. (PCX)

David Einhorn sold out his holdings in Patriot Coal Corp.. His sale prices were between $31.17 and $68.36, with an estimated average price of $52.5. The impact to his portfolio due to this sale was less than 0.01%.

PATRIOT COAL CORPORATION is a leading producer and marketer of coal in the Eastern United States with eight company-operated mines two joint venture mines and numerous contractor-operated mines in Appalachia and the Illinois Basin. The company ships to electric utilities industrial users and metallurgical coal customers. The company's common stock trades on the New York Stock Exchange under the symbol PCX. Patriot Coal Corp. has a market cap of $726.79 million; its shares were traded at around $9.4 with a P/E ratio of 33.66 and P/S ratio of 0.53.

Sold Out: Covidien Ltd. (COV)

David Einhorn sold out his holdings in Covidien Ltd.. His sale prices were between $47.58 and $56.06, with an estimated average price of $52. The impact to his portfolio due to this sale was less than 0.01%.

Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures distributes and services a diverse range of industry-leading product lines including Surgical Devices Energy-Based Devices Respiratory and Monitoring Solutions Patient Care and Safety Products Imaging Solutions Pharmaceutical Products Medical Supplies and Retail Products. Covidien Ltd. has a market cap of $19.46 billion; its shares were traded at around $38.1 with a P/E ratio of 19.79 and P/S ratio of 1.98. The dividend yield of Covidien Ltd. stocks is 1.49%.

Sold Out: UnitedHealth Group Inc. (UNH)

David Einhorn sold out his holdings in UnitedHealth Group Inc.. His sale prices were between $22.16 and $33.01, with an estimated average price of $27.7. The impact to his portfolio due to this sale was less than 0.01%.

UnitedHealth Group Inc. offers health care coverage and related services to help people achieve improved health and well-being through all stages of life. The company's products and services reflect a number of core capabilities including medical information management health benefit administration care coordination risk assessment and pricing health benefit design and provider contracting. With these capabilities it is able to provide comprehensive health care management services through organized health systems and insurance products. UnitedHealth Group Inc. has a market cap of $23.09 billion; its shares were traded at around $20.02 with a P/E ratio of 7.04 and P/S ratio of 0.30. The dividend yield of UnitedHealth Group Inc. stocks is 0.13%.

Sold Out: Walgreen Company (WAG)

David Einhorn sold out his holdings in Walgreen Company. His sale prices were between $31.2 and $36.97, with an estimated average price of $34.3. The impact to his portfolio due to this sale was less than 0.01%.

Walgreen Co. is a national retail pharmacy chain and considered the leader in innovative drugstore retailing. Walgreens pioneered many store features that are becoming standards in the industry. Among those concepts are: Computerized pharmacies Point-of-sale scanning Freestanding stores with drive-thru pharmacies and Intercom Plus Walgreens advanced new pharmacy computer and workflow system. Intercom Plus allows pharmacists to spend more time counseling patients by assigning administrative tasks to pharmacy technicians Walgreen Company has a market cap of $22.59 billion; its shares were traded at around $23.43 with a P/E ratio of 10.54 and P/S ratio of 0.39. The dividend yield of Walgreen Company stocks is 1.88%.

Sold Out: WellPoint Inc. (WLP)

David Einhorn sold out his holdings in WellPoint Inc.. His sale prices were between $44.87 and $57.57, with an estimated average price of $50.5. The impact to his portfolio due to this sale was less than 0.01%.

WellPoint Inc. is the largest publicly traded commercial health benefits company in terms of membership in the United States. WellPoint Inc. is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado Connecticut Georgia Indiana Kentucky Maine Missouri Nevada New Hampshire Ohio Virginia (excluding the Northern Virginia suburbs of Washington D.C.) Wisconsin; and through HealthLink and UniCare. WellPoint Inc. has a market cap of $17.6 billion; its shares were traded at around $35.24 with a P/E ratio of 6.17 and P/S ratio of 0.29.


Rating: 2.4/5 (23 votes)

Comments

viksingh01
Viksingh01 - 5 years ago
I like TicketMaster. At first glance business seems to have a moat. They are increasing number of tickets sold and revenue. Business model is simple and moat comes from the fact that they charge a small amount for convenience, take the headache out the event organizers by offering a truted name for people to buy tickets. Their name is synonomous with ticket sales.

They have some growth initiatives like ticket resales, expansion into Asia/China. But I believe paying down debt from its cash flows and share buy back at a ridicolous valuation will lead to higher EPS overtime.

Rev. growth of 14%, EBITDA growth of 15%. Int. Rev up 30%.

NA Net income = $1.24 * .73* .1 ( 73% OF TOTAL REV at 105 net margins) = $90MM. With a strong moat and growth derived from pricing and event expansion say 5%, you can value the company at = $1.8b.

It selling for under close to $600 EV.

We can break down this company as a cash generating NA business and a growing International business.

Anyone care to share more??

Vik

kuuks
Kuuks - 5 years ago
It may be simple for you but I find the business difficult to understand. Ticketing is all electronic now and Ticketmaster essentially just offers its clients software to sell their tickets. Why wouldn't any startup be able to eat into their market share?
viksingh01
Viksingh01 - 5 years ago
Would you buy ticket from a startup. Also, this business is high fixed cost. High market share means lower incremental cost per additional user.

This business is not as secure as Mastercard/Visa transaction fee type business though.

I am still gathering my thoughts on this business.

http://tinyurl.com/6ea8kh

Thanks

kuuks
Kuuks - 5 years ago
Suppose someone with large resources does overcome the fixed costs, low marginal costs easily lead to price wars.
viksingh01
Viksingh01 - 5 years ago
I agree, therefore switching cost are the key with business with scale/high fixed cost.

That is another point I want to understand about them.

vik
kuuks
Kuuks - 5 years ago
yeah, switching costs are what's needed and the VIC writeup argues that TKTM has high switching costs but I'm not convinced...
viksingh01
Viksingh01 - 5 years ago
Kuuks,

I don't have access to VI write up. Is there a link you can forward me. Can you please summarize the reasons why he would think high switching costs exist for TKTM.

Thanks

Vik
kuuks
Kuuks - 5 years ago
lol too lazy to write up points but access to VIC is easy. Goto to the website (Value Investor's Club) and apply for Guest Access. When you're in search for TKTM in the ticker box. The link should show up.
viksingh01
Viksingh01 - 5 years ago
I thought you meant Value Investing Conference.

I have access the da club.

Thanks

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