Can David Einhorn’s Micro-Cap Picks Like Scientific Games Corp (SGMS) and Green Brick Partners Inc (GRBK) Beat the Market?

Second on the list is Civeo Corp (NYSE:CVEO), in which Greenlight Capital holds a total of 5.0 million shares as of the fund’s most recent 13G filing on the company on May 15. That represented a big decrease from March 31, when it owned 10.66 million shares valued at $27.07 million. Although the $466.85 million market cap company has stabilized compared to its historical performances, it is still ranked 59% lower than other stocks in the Global Business Services industry and has had a negative growth rate over the past year. The company posted earnings per share of $0.03, surpassing Thomson Reuters consensus estimate of a loss of $0.02. For the current fiscal year, analysts expect Civeo Corp (NYSE:CVEO) to report an earnings per share loss of $0.40. Out of the 730 actively filing hedge funds that we monitor, 17 of them had stakes in the company at the end of the first quarter, with an aggregate investment value of $54.39 million. While Greenlight Capital remained the biggest of those shareholders at the end of the quarter, Phil Frohlich‘s Prescott Group Capital Management came in second with 3.10 million shares. Other shareholders included D E Shaw and billionaire Ken Griffin’s Citadel Investment Group.

At the end of the first quarter, Greenlight Capital held a total of 2.04 million shares of Scientific Games Corp (NASDAQ:SGMS) with a market value of $21.31 million, and was a new purchase for the fund. The company recently announced a three-year deal with Norsk Tipping, The National Lottery of Norway, for the provision of games and marketing services. The deal will provide Scientific Games Corp (NASDAQ:SGMS) with an opportunity to penetrate the Norwegian marketplace as it seeks to expand its global reach. The company’s performance for the quarter disappointed in terms of revenue, but earnings per share performed better than analysts’ estimates. The company reported an earnings per share loss of $1.01, beating analysts’ consensus estimate of a loss of $1.27. However, revenue was up 69.7% compared to the corresponding quarter last year. Around the end of May, the gaming company revealed a partnership with Penn National Gaming Inc. to launch game solutions and systems expected to boost its casino revenues. The company also revealed that its WMS, Bally, and Shuffle Master-branded games are expected to account for 44% of the floor portion of new gaming devices. Besides working to expand its market share in the gaming industry, the company has been working on cost-cutting strategies in an effort to improve its financial position, making analysts more optimistic about the stock. A total of 29 hedge funds out of the funds we track were invested in the stock, with an aggregate investment of $383.52 million. These hedge funds include Debra Fine‘s Fine Capital Partners, Roberto Mignone’s Bridger Management, and Paul Reeder and Edward Shapiro’s PAR Capital Management.

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