David Einhorn Sells Shares of Apple Inc (AAPL), General Motors (GM) As He Seeks Turnaround

Time Warner Inc (NYSE:TWX) is one of the stocks David Einhorn is bullish on, having increased his bet on it by a whooping 68% to amass 6.44 million shares by the end of December, valued at $416 million. The company released its fourth quarter financial results on February 10, providing investors with mixed news. Although Time Warner Inc (NYSE:TWX) managed to post impressive revenue from advertising, subscription revenue disappointed. Overall, the company said it registered a profit of $857 million or $1.06 per share on the back of $7.08 billion in revenue, down by 5.9% year-over-year. Analysts, in turn, were looking for $7.53 billion in revenue and earnings of $1.01 per share. Time Warner Inc (NYSE:TWX) also announced a $5 billion increase to its share buyback program and an increase to its quarterly dividend of 15%, to $1.61 per share.

News of Einhorn’s new position in Macy’s, Inc. (NYSE:M) broke on January 19 and investors rejoiced, sending the stock higher by more than 10% of the following few days. According to its recent 13F filing, Greenlight Capital holds 6.74 million shares of Macy’s valued at $235 million. It is yet unclear whether Einhorn will go activist on Macy’s, Inc. (NYSE:M) and team up with Starboard Value’s Jeffrey Smith to force the troubled department-store chain to reorganize itself as a real estate investment trust (REIT), a move that the company’s management has resisted so far. Einhorn only commented that he would not be a surprised if Macy’s is taken private to unlock the value of its real estate holdings. Starboard’s analysts estimate the value of these holdings at $21 billion, which is far larger than the current market cap of the entire company.

David Einhorn also believes it’s a good time to buy Avangrid Inc (NYSE:AGR), a diversified energy and utilities company. Greenlight Capital reported ownership of 5.25 million Avangrid shares in the fourth quarter, worth in excess of $201 million. Avangrid Inc (NYSE:AGR) went public in December 2015 and ranks as the second-largest wind energy producer in the United States. The company, which resulted from the merger of Iberdrola USA  and UIL Holdings, which was finalized on December 18, has assets valued at more than $30 billion, spread across 25 states. Israel Englander was also impressed by the prospects of the company, having acquired 2.38 million shares of it in the fourth quarter, valued at $91.6 million at the end of December.

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