Billionaire David Einhorn’s Long Term Picks Include Apple Inc. (AAPL)

Greenlight owned 4.9 million shares of Aspen Insurance Holdings Limited (NYSE:AHL), a $2.5 billion market cap insurance company specializing in reinsurance and property and casualty insurance. The stock is priced at a significant discount to book value, with a P/B ratio of 0.7. It also looks cheap from an earnings perspective, with multiples in the 10-11 range, and recent reports have shown that the business is turning in increases in both sales and net income. As a result we’d be interested in considering it as a potential value play.

Einhorn and his team had initiated a position in Seagate Technology PLC (NASDAQ:STX) in Q1 2011, and while they cut their stake in the first three months of this year they still disclosed ownership of 5.4 million shares. The hard disk drive and data storage company has been seeing steep declines in both revenue and earnings (which were down over 60% in its most recent quarter compared to the same period in the previous year). While business is tough, the earnings multiples are in the single digits and the EV/EBITDA multiple is only 4.6x.

As a result we’d be interested in checking out Seagate despite its recent troubles, and as we’ve mentioned Aspen appears to be a value candidate as well. With NCR, the company appears to be improving and given the combination of that and its low valuation in terms of future earnings numbers it would be worth considering as well. Apple Inc. (NASDAQ:AAPL) is certainly cheap- particularly if we account for its cash hoard- but it’s also certainly experiencing a decline in margins and earnings as a result. We like that it is returning cash to shareholders, and investors should certainly be following it, but we aren’t sure we’d recommend buying at this time.

Disclosure: I own no shares of any stocks mentioned in this article.