On the long side, here are his top ideas:
No. 1: Pfizer Inc (PFE), Weightings: 7.64% - 11,987,000 Shares Pfizer Inc is a research-based, global pharmaceutical company. Pfizer Inc has a market cap of $122.63 billion; its shares were traded at around $18.17 with a P/E ratio of 8.3 and P/S ratio of 2.5. The dividend yield of Pfizer Inc stocks is 3.5%. Pfizer Inc had an annual average earning growth of 11% over the past 10 years. GuruFocus rated Pfizer Inc the business predictability rank of 2.5-star.
No. 2: Carefusion Corp. (CFN), Weightings: 7.32% - 8,718,724 Shares
CareFusion is a global corporation serving the health care industry. The company is headquartered in San Diego, California. Carefusion Corp. has a market cap of $5.71 billion; its shares were traded at around $25.83 with and P/S ratio of 1.3.
This is a spun-off of Cardinal Health Inc.
No. 3: Cardinal Health Inc. (CAH), Weightings: 6.86% - 6,652,500 Shares
Cardinal Health, Inc. is one of the leading providers of products and services to healthcare providers and. Cardinal Health Inc. has a market cap of $11.62 billion; its shares were traded at around $32.23 with a P/E ratio of 9.8 and P/S ratio of 0.1. The dividend yield of Cardinal Health Inc. stocks is 2.2%. Cardinal Health Inc. had an annual average earning growth of 10.7% over the past 10 years. GuruFocus rated Cardinal Health Inc. the business predictability rank of 3-star.
Einhorn made the following comment about CAH and CFN in the quarterly letter:CAH distributes pharmaceuticals and medical products and manufactures medical equipment and related disposables. CAH’s businesses have und CareFusion (“CFN”), its higher margin and relatively higher growth medical equipment business. At its Investor Day this June, CAH’s new management team announced a reduced operating outlook and high spin-off related ‘dis-synergies’. In response, Street analysts sharply reduced their fiscal year 2010 EPS estimates and the share price weakened. The Partnerships established their position in CAH at an average price of $30.22 per share, representing 11x the reduced fiscal 2010 consensus Street EPS estimate of $2.75 (down from the $3.51 in EPS reported for fiscal 2009).
We expect CAH to exceed earnings expectations over the next few years due to margin improvement initiatives, new product introductions, reduction of investment spending, a strong generic drug cycle and stabilizing hospital capital spending trends. On September 1, CAH completed the spin-off of CFN. Following the spin-off, the new management teams at both CAH and CFN have received significant stock incentives in their respective companies. CAH shares, including the pro rata value of CFN shares, ended the quarter at $37.70 each.
No. 4: TERADATA CORP (TDC), Weightings: 6.56% - 6,197,717 Shares
Teradata Corporation is the world's largest company focused on raising intelligence through data warehousing and enterprise analytics. Teradata Corp has a market cap of $5.03 billion; its shares were traded at around $29.3 with a P/E ratio of 20.2 and P/S ratio of 2.9.
No. 5: URS Corp. (URS), Weightings: 5.78% - 3,442,567 Shares
URS Corporation offers a broad range of planning, design, and program and construction management services for transportation, hazardous waste, industrial processing and petrochemical, general building and water/wastewater projects. Urs Corp. has a market cap of $3.5 billion; its shares were traded at around $41.55 with a P/E ratio of 13.9 and P/S ratio of 0.4.
No. 6: MARKET VECTORS - GOLD MINERS ETF (GDX), Weightings: 5.58% - 3,200,000 Shares
Market Vectors - Gold Miners Etf has a market cap of $613.8 million; its shares were traded at around $51.1069 . The dividend yield of Market Vectors - Gold Miners Etf stocks is 6.2%.
This is David Einhorn’s famous gold play.
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