See What David Einhorn's $7 Billion Hedge Fund Company Is Selling

He sold, but you might want to buy some of these companies.

May 22, 2014 at 5:51PM

The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider highly regarded value investor David Einhorn and Greenlight Capital, which he founded. Einhorn's investing success as well as his advocacy of financial transparency and accountability have attracted many fans. Although he isn't afraid to short stocks, he prefers going long, and looks for situations where he feels a stock is mispriced. He started Greenlight with less than $1 million, and it now boasts a stock portfolio worth $6.7 billion.

Greenlight Capital's latest 13F report shows that it sold General Motors Company (NYSE:GM), Marvell Technology Group Ltd. (NASDAQ:MRVL), and Rite Aid Corporation (NYSE:RAD).

General Motors is facing a big headwind in costs related to many recalls and litigation. According to, "GM has now recalled more cars for safety problems this year than it sold all last year (9.7 million)." Despite that, though, its first-quarter results exceeded expectations -- though earnings took an 82% hit. The company has been doing many things right, such as applying more discipline to pricing and incentives. It has a lot riding on its Silverado truck, too, which has been redesigned. General Motors stock yields a generous 3.5% for investors with faith in new CEO Mary Barra.

Marvell Technology Group, a chip specialist, has been struggling, with revenue growing slowly over the past three years, while profit margins and free cash flow shrank. Bulls are hopeful about its prospects, though, due to the growing adoption of solid-state drives (SSDs) and global demand for data storage, not to mention the growing LTE market in China. They like its valuation, with a forward P/E ratio near 15, too. The company topped expectations in its fourth quarter and is set to report its latest quarterly results on the 22nd. Marvell stock yields 1.5%.

Rite Aid Corporation has been executing an "explosive" turnaround, and its shares are near a 52-week high. It has been closing some stores, while redecorating and relocating others. It's creating "wellness stores," too, and has also acquired a chain of retail health-care clinics. Rite Aid's last quarter was a great one, trouncing expectations as earnings soared nearly 43% over year-ago levels and also featuring management upping its projections. Generic drugs, which offer fatter profit margins, are likely to boost Rite Aid's bottom line, and analysts expect much faster growth from it than from its rivals. Still, don't forget that the company carries a lot of debt.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it: Every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.

Longtime Fool specialist Selena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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