David Einhorn revealed in a 13G filing a 29.6 million share position in Marvel Technology Group (NASDAQ:MRVL). Greenlight Capital had 18.8 million shares in Marvel at the end of the first quarter. Recent additions represent a more than 60% increase in Greenlight’s position. Here is what Einhorn said about Marvel in Greenlight Capital’s Q2 investor letter:
Marvell Technology Group (MRVL) was the other significant loser, as its shares fell from$15.73 to $11.28 during the quarter. MRVL gave tepid guidance and Wall Street hasmodestly reduced its estimates of earnings per share from $1.25 to $1.15 this year and from$1.45 to $1.40 for next year. MRVL has about $4 per share in cash and now trades at roughly5x next year’s earnings net of the cash on the balance sheet. Most of the cash is excess, andthe company has commenced what we hope will be an aggressive share repurchase program.We have used the reduced stock price as an opportunity to increase our stake in the company.