Month: May 2012

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).