David Einhorn gave a rare interview on Bloomberg TV this afternoon. The Greenlight Capital manager spoke about Vodafone plc (LON:VOD), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), and the Robin Hood Investment Conference: a new conference Einhorn will be presenting at in November.
Einhorn spoke about two big plays, the first is an old one, but it demonstrates why Einhorn is considered a market mover. Einhorn told Bloomberg TV that he is still short Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), a position he hasn’t spoken about in a while. The investor didn’t mention the bet in a recent investor letter, but he made it a prime part of today’s interview.
Einhorn still short on Green Mountain
David Einhorn is still short on Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). Because he has not spoken about that position in some time, there were rumors that he had quietly abandoned it. Shares in GMCR have risen by more than 80 percent so far in 2013, and have more than tripled in value in the last twelve months.
David Einhorn doesn’t give up that easily, however. Einhorn told Bloomberg today that the company’s books were “over caffeinated.” He doesn’t think the company sells nearly as much coffee as it claims to and the obfuscating financial records it publishes are support for that idea. According to Einhorn, the company’s CEO said “We don’t do straight math,” when asked about the numbers at a recent analyst conference.
Einhorn is looking for Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) to miss on earnings some time this year. The company’s stock appeared to move lower on Einhorn’s comments, but was already trading down earlier today. When Einhorn began speaking about the company last year it shed a huge amount of value almost instantly.
Einhorn and Vodafone M&A
David Einhorn reckons that Vodafone plc (LON:LOD) is a ripe target for a merger or acquisition as consolidation drives the wireless industry right now. In his last investor letter, the hedge fund manager showed he maintained a large holding of Vodafone plc (LON:VOD) stock.
Einhorn told Bloomberg that Vodafone plc (LON:VOD) could become part of a bigger telecom company sometime soon. Shares in the firm drifted upward after the hedge fund manager made the proclamation. Einhorn thinks that AT&T could be served well by bidding for the company and said the stock remains attractive.
Transcript and video below
Einhorn Transcript by ValueWalk.com