Hedge fund heavyweight David Einhorn, who runs Greenlight Capital, was just on CNBC’s “Halftime Report” with Scott Wapner from the inaugural Robin Hood Investors Conference.
Earlier today at the conference, Einhorn revealed that’s he’s long Micron Technology.
Wapner got Einhorn to talk about St. Joe’s, Apple and Green Mountain Coffee Roasters. Einhorn also touched upon his investment in gold.
Einhorn has been short St. Joe for three years now. He’s still short the stock.
“What’s interesting about St. Joe is it’s not a business. It’s a pool of land that’s being liquidated over time,” Einhorn said.
Einhorn believes that St. Joe is worth about $US7 dollars a share, but right now it’s trading around $US18. He says that it’s hard to even come up with a number higher than $US10 a share.
Einhorn said he’s still long Apple. He made headlines when he took aim at the tech giant’s massive cash hoard earlier this year.
“The thing with Apple is we bought the stock about three years ago. Our goal was to be sort of happy passive holders,” Einhorn said. He explained that the cash built up and it “kind of became out of hand.” He said his idea was meant to unlock some value.
He called getting involved in the company a “rare event” for him.
He said he still thinks Apple’s capital management is a C+. He said it had been at a D- and that more could be done.
The conversation moved to gold. Gold hasn’t been playing out well this year, Einhorn acknowledged.
“We bought the gold in 2008 when we saw what was going on with policy,” he said.
“What we really own gold for is just in case something goes really haywire. What I’m thinking about is mostly the monetary policies and the fiscal policies being run by the big economies,” he said.
Einhorn said he’s still short Green Mountain Coffee Roasters. He wouldn’t detail if he covered any shares.
The stock is trading up more than 14% today after it reported earnings yesterday. Einhorn called those numbers “a little cheesy.”
Einhorn believes that Green Mountain’s monopoly on K-cups is over.
“The real problem they have is this was theoretically a razor blade business … they lost the patents … anybody can make these things [K cups] and they have,” he said.
“We think there’s ultimately going to be competition, commoditization and a price war,” Einhorn said.
Shorts and the market rally
As for his fund, Einhorn said that it’s been a tough year for Greenlight’s short positions. Einhorn is a famed short-seller who predicted the demise of Lehman Brothers. He noted that his longs have done well, though.
“We don’t know which way the market is going.”
Wapner asked him if we’re in a bubble.
“It’s really hard to say. There are certain aspects of the market and certain stocks that are behaving like we’re in a bubble…”
Wapner asked Einhorn about the digital currency.
“I don’t know about Bitcoin,” he replied.
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