Was Einhorn Right on Apple Inc. (AAPL), Martin Marietta, and More?

Page 1 of 2

David Einhorn GREENLIGHT CAPITALGreenlight Capital has become one of the most famous hedge funds in the current financial world. Manager David Einhorn is now a billionaire and has the power to singlehandedly send a stock up or down merely by revealing that he is long or short. At a recent investment conference, a mistaken impression by the audience that he was short General Motors Company (NYSE:GM) caused its price to immediately drop- until it was made clear that Greenlight was actually long GM. Einhorn provided his quick takes on a number of stocks at the Ira Sohn conference in May of this year (see our record of some stocks he did and didn’t like). Here’s how these recommendations have done since then (the S&P 500, for purposes of comparison, is up about 7%):

Einhorn said that he was long Apple Inc. (NASDAQ:AAPL) and for a while this position was doing well. However, the recent correction in the stock has put it slightly down since mid May. We think that Apple currently looks like a good value at 12 times trailing earnings; analyst growth expectations imply that the stock is a screaming buy, and even though we think they might be being too optimistic a trailing P/E of 12 can be justified with even a low growth rate. Greenlight sold about a quarter of its shares in the third quarter of the year but Apple was still the fund’s largest position by market value (check out more of Einhorn’s favorite stocks).

One of the billionaire’s short recommendations was Martin Marietta Materials, Inc. (NYSE:MLM). This stock is up 22% since the Ira Sohn conference, so again Einhorn has actually missed on this pick. Martin Marietta is a $4.2 billion market cap provider of aggregates such as granite and limestone; as a result, it is dependent on activity in construction and public infrastructure. Einhorn had argued that the government would stop stimulating demand for the company’s products, which would undercut a fairly expensive valuation. Read what we think about Martin Marietta right now.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!