The ‘Einhorn Effect’ is not only brutal but also takes a while to wear off, apparently.
This morning, after the hedge fund manager laid out his short thesis on athenahealth (ATHN) at the Sohn Investment Conference, the stock is still plunging, and has fallen over 12%.
Einhorn said that athenahealth’s CEO, Jonathan Bush, and Wall Street banks like Morgan Stanley are deluded about its capabilities, and consequently its stock price.
At that point it was at $US126, but as Einhorn spoke the stock fell 7% in after hours trading.
“Jonathan Bush likes to compare athenahealth to Amazon because they both have websites,” he said during his presentation — and followed that comment with brutal clip after clip of a giddy Bush (“yes, that Bush family,” said Einhorn) talking about the company’s wildly optimistic future.
Einhorn’s bull thesis for the stock is for it to fall to $US50, his bear case is that it could go to $US14.
Anyway check out the chart below. That’s what it’s like to get ‘Einhorn’d.’
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