One trick that Warren Buffett uses when he first looks at a company is NOT to look at the price OR another person’s opinion. He doesn’t want price to influence his valuation of the company, and he seeks his own counsel.
Why don’t we test our valuation skills and do a valuation of Core Labs (CLB) with the data below.
Do your own work BEFORE looking at the post below. See how you compare or differ Einhorn’s short thesis on CLB. Do you differ? Why and how.
Half Moon Capital Returns 12.2% In 2020 Despite Short Position Drag
Eric DeLamarter's Half Moon Capital produced a return of 8% net of fees in the fourth quarter of 2020, bringing the full-year return to 12.2%, according to a copy of its fourth-quarter letter, which ValueWalk has been able to review. The fund maintained an average net exposure of 45% during the period. Q4 2020 hedge Read More
Whitney Tilson: CLB and HHC
1) I (Whitney Tilson) attended the always-excellent Ira Sohn conference on Monday and, as often happens, Bill Ackman and David Einhorn stole the show with two outstanding, incredibly-well-researched ideas, long Howard Hughes (which has been one of my largest positions since it was spun out of GGP when it emerged from bankruptcy after the credit crisis) and short Core Laboratories (CLB), respectively.
They have posted their presentations here:
If you’re interested in learning more about HHC (and seeing the incredible development underway at South Street Seaport), the company is hosting its first investor day there a week from today, Wed. 5/17 from 8:00am to 1:30pm. Email [email protected] to register. I hope to see you there.
As for CLB, it doesn’t happen very often – maybe once every two years – but sometimes I (Whitney Tilson) see (at a conference) or read (on something like ValueInvestorsClub) an investment thesis that is so compelling and blindingly obvious that I immediately put the position on – which is what I did on Monday just after Einhorn’s presentation. Check it out for yourself – it’s that good. A highly cyclical company masquerading as a secular growth story – trading at nearly 9x REVENUES!