Einhorn is speaking quickly as usually, but we are doing our best job to get all the information down accurately.
3:31: Being introduced as the best short seller: Allied Capital, Lehman Brothers, Bear Sterns, First Solar, St. Joe, Green mountain are among his notable shorts.
3:34: Dan Loeb’s help was very helpful with this.
3:35: Looking at France, the country is in bad shape. It has huge exposure to Italy and Spain
3:36: A return to the Franc is not out of the question.
3:37: Norway is only country that can finance itself. GJF.NO has a 9 pe 7% dividend yield.
3:38: Cairn trades at discount to assets in Britain and India alone. The company is at 24% asset value without including oil in Greenland
3:39: China is misunderstood by most Westerners, they are willing to accept gullible Government investors
3:40: China’s banks use the money for housing
3:41: The boom now looks like a bust with empty roads, and loans coming due. As China’s trade surplus has shrunk there is not enough dollars to feed the economy.
3:42: Banks are becoming illiquid and money seems to be flowing out of the country.
3:43: Japan is a mess in so many ways, adult diaper sales now exceed those of children. Trade surplus is over, and the Bank of Japan is having problems with the Yen and members. The Yen keeps strengthening, which will eventually end. 9% of REITs in US are owned by Japanese, as they search for yield.
3:44: The trusts are shrinking their dividends, and REITs are trading at a huge premium. However, the Japanese are pulling money out.
3:45: japan’s largest social networks are now under regulatory scrutiny as people become addicted to games. These stocks can be bought at a single digit valuation, it’s a better value than Facebook.
3:46: On a play of Warren Buffett’s attack on Gold, Einhorn makes some jokes. He talks about covering all the money in circulation can cover Omaha, but the Federal Reserve could just print more.
3:47: Amazon is growing revenues at a superb pace. However, operating profits have not grown. They have taken more revenue but the bottom line is not growing.
3:48: Like Obama, CEO Jeff Bezos leaves the future of Amazon’s profits to be determined. Einhorn throws in joke about the mets and Ebay.
3:50: As Iron ore increases US Steel (NYSE:X) benefits, yet it still lost money in 9 of the last 13 quarters. A growing Iron ore supply, union obligations, and a slowing China are catalysts for downturn.
3:51: Apple Inc. (NASDAQ:AAPL) most misunderstood stock in the market. Hedge funds only own 5% of Apple, most hedge funds are underweight apple compared to the S&P 500.
3:52: There is no prohibition on Apple Inc. (NASDAQ:AAPL) being a one trillion dollar company. Most apple customers want more Apple products. Apple monetizes its value through repeated sales, and should have a higher multiple.
3:54: The current multiple is fair, and Apple continues to gain market share. It does not face piracy problems in China like Microsoft Corporation (NASDAQ:MSFT).
It Ends Here..