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

You might actually want to buy one or more of these stocks.

Jun 2, 2014 at 5:15PM

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, founder of Greenlight Capital. Einhorn's investing success, along with his advocacy of financial transparency and accountability, has attracted many fans. Although he isn't afraid to short stocks, he prefers going long and looks for situations in which he feels a stock is mispriced. He started Greenlight with less than a million dollars, and it now boasts a stock portfolio worth $6.7 billion.

Greenlight Capital's latest 13F report shows that it sold off some or all of its positions in Delphi Automotive PLC (NYSE:DLPH), Micron Technology, (NASDAQ:MU), and NCR Corporation (NYSE:NCR).

Delphi Automotive's stock has gained more than 40% over the past year, recently hitting an all-time high. The company makes vehicle components and has been boosted by the recovering auto market. Indeed, it expects to double its revenue in China to nearly $5.5 billion thanks to the growing vehicle market there. Delphi is not clinging to traditional technology, either, as it recently signed an agreement with Westport Innovations to jointly develop high pressure direct natural gas injectors. (Westport specializes in natural-gas engines and fuel systems.) Meanwhile, Delphi is busy cranking out replacement parts for General Motors as the carmaker addresses the recall of 2.6 million vehicles with flawed ignition switches. (Both companies are also being sued over the switches.) Delphi's first quarter featured revenue up 6% year over year and earnings per share rising 18% and topping estimates as management upped its guidance for the year. Delphi's stock yields 1.4%.

Micron Technology's stock has surged some 140% over the past year, and its forward P/E ratio is still just near 11, suggesting that it's attractively priced. The company's second quarter featured expenses falling and revenue roughly doubling. Bulls see demand growing for solid state drives and 3D NAND technology, too, which can drive growth. Stabilizing DRAM and NAND prices are also a plus. My colleague Anders Bylund has dubbed Micron "a high-octane growth stock, but priced like a sleepy value play." Some expect the company to start paying a dividend again one of these days, too, as its free cash flow is substantial and profit margins are growing. A bit of unwelcome news recently was the company's fall  from second-largest to third-largest DRAM chip maker, though it remains in second place in global DRAM revenue.

NCR Corporation, which was once National Cash Register, is now in the business of hardware, software, and services related to ATMs, point-of-sale retail terminals, self-serve kiosks, and more. It's poised to benefit from retailers and banks upgrading their equipment to deal with the new, more secure, EMV standard, which calls for chip-embedded credit and bank cards. The company is also moving into the mobile realm, with tools such as its NCR Mobile Pay app. NCR's last quarter featured revenue rising 8% year over year and earnings topping estimates, though the company also lowered projections for 2014.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock and join Buffett in his quest for a veritable landslide of profits!

Longtime Fool specialist Selena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool recommends General Motors and Westport Innovations. The Motley Fool owns shares of Westport Innovations. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information