At the Ira Sohn charity conference, David Einhorn revealed his longs and shorts. We were privileged to be part of the conference. Below is a quick rundown of his presentation:
1. Short Martin Marietta Materials. Says stock is overvalued and benefitted from a one-time national fiscal stimulus. Stock is down 8% after the comments.
2. Long GJF, a stock in Norway. It has a p/e of 9 and a dividend yield of 7% .
3. Social Media Stocks. He would buy Japanese social media networks which sport single digit p/e ‘s, much lower than Facebook.
4. Long Apple. Hedge funds own only 5% of Apple. They are underweight Apple compared to the S&P 500. He thinks Apple can exceed 1 trillion dollar market cap because most Apple customers want more Apple products. Apple monetizes its value through repeated, recurring sales, and should have a higher multiple. It does not have piracy problems in China as in Microsoft (there are tons of knock-offs in China. An entire Apple store clone was built in China).