David Einhorn Trims Apple (AAPL) Stake, Buys Calpine (CPN), Rite Aid (RAD)

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No Worries About Chemours

David Einhorn and his team are still bullish on Chemours Co (NYSE:CC). In its latest letter to investors, Greenlight Capital stated its belief that the company is well positioned to benefit from recovering TiO2 (titanium dioxide used in the food and cosmetic industries) prices. Mr Einhorn has found himself at sorts with activist short-seller Andrew Left, who believes the company is on its way to bankruptcy because of legal issues. Greenlight and Einhorn insist that Chemours Co (NYSE:CC)’s former parent company is the primary defendant in all the litigations and the outcome should not affect Chemours. A provider of performance chemicals, the company has a market cap of $2.26 billion and pays an annual dividend of $0.12 per share, providing shareholders with a 1.05% yield. For the second quarter, Chemours Co (NYSE:CC) posted adjusted earnings of $0.27 per share and $1.38 billion in revenue, down 8.3% year over year. Having managed to top analysts’ estimates of $0.17 in earnings per share, the stock was upgraded at Argus to ‘Buy’ from ‘Hold’ with a price target of $13 per share.

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Betting On Energy Turnaround

Calpine Corporation (NYSE:CPN) is the largest new addition to Greenlight Capital’s portfolio, as the fund acquired 5.66 million shares by the end of the quarter, a position worth $83.5 million. So far this year, the stock has been trading in a range, oscillating between the $12 and $16 levels. Calpine Corporation (NYSE:CPN) swung to a loss in the most recent quarter, as the company adjusts to the changes in the energy sector. Calpine Corporation (NYSE:CPN)  posted a loss of $29 million or $0.08 per share, but, when adjusted for non-recurring costs, earnings stood at $0.06 per share. Revenue fell 19% to $1.16 billion, below analysts’ estimates of $1.29 billion. “Baseload resources continue to be threatened by a combination of lower gas prices, increasingly stringent environmental regulations and further penetration of renewables,” commented Thad Hill, CEO of Calpine.

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Merger Play

Greenlight Capital’s management team also sees Rite Aid Corporation (NYSE:RAD) as a good investment opportunity, having initiated stake during the quarter. According to its latest 13F filing, the fund held 10.3 million shares worth $77.4 million at the end of June. So far this year, Rite Aid Corporation (NYSE:RAD) has been a disappointment, as it wobbled around without a clear direction until mid-May, when it took a nosedive, dropping by as much as 13% before regaining some of the lost ground. The company is currently the subject of a $17 billion takeover bid from Walgreens Boots Alliance Inc (NASDAQ:WBA). The merger has been put on hold, however, as the companies await the approval from the Federal Trade Commission. Billionaire John Paulson is also bullish on Rite Aid Corporation (NYSE:RAD), having boosted his fund’s holding by 120% to 580,900 shares worth $435 million.

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Disclosure: none.

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