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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers