is a value-oriented investor who consistently mentions price and
valuation when discussing his holdings. In the first quarter, his
Greenlight Capital funds returned 5.8%, as opposed to 10.5% for
the S&P 500. While Marvell Technology Group (
) and Yen puts led his gainers, massive position Apple (
) sunk to his biggest loser.
Apple's continued to slide in the second quarter. It and several
of Einhorn's other positions are at their lowest price point in a
solid year: Barrick Gold Corp. (
) and Symmetricom Inc. (
Barrick Gold Corp. (
Einhorn owns 1,967,500 shares of Barrick Gold Corp. as of the
third quarter, in a position started in the third quarter of 2011
at $50 per share on average and increased as the price fell. It
has since fallen to $14.85 after opening 7.8% lower Wednesday,
which is close to a 10-year low.
Barrick Gold has mines and operations on four continents, with
140.2 million ounces of gold reserves, 1.05 billion ounces of
silver in the gold reserves and 13.9 billion pounds of copper in
reserves. In 2012 it produced 7.4 million ounces of gold, and it
expects to produce 7.0 to 7.4 million ounces in 2013.
In the first quarter, net earnings were $847 million, lower than
$1.04 billion a year ago. Declining earnings are being driven by
a declining price of gold and copper, lower gold and copper sales
volumes and higher cost of sales of gold and copper.
As a response, the company reduced its 2013 outlook for capex,
all-in sustaining costs and exploration, and is also considering
selling some assets.
Barrick Gold's 10-year price, revenue, earnings and P/E history:
The company's P/B ratio and P/S ratio are both near their 10-year
low as well, at 0.77 and 1.21, respectively. The Peter Lynch
chart shows it is undervalued:
The holding accounts for a tiny 0.88% of Einhorn's portfolio.
, Paul Tudor Jones and John Burbank all established positions in
the first quarter at the new lower prices.
Apple Inc. (
Einhorn's largest position, Apple is 16% of his portfolio. He has
made numerous purchases of the company's shares beginning in
2010, when the price was an average of $255. Most recently, he
added 1,090,700 shares at a price of $466 on average, for a total
position size of 2,397,706 shares.
At $413.50 on Wednesday, Apple's stock is inching closer to its
one-year low share price of $390.53.
Einhorn commented extensively on Apple in his first quarter
letter, in which he stated some of the company's problems but why
he still ultimately believed in it:
"Our thesis is that AAPL has a terrific operating platform,
engendering a loyal, sticky and growing customer base that will
make repeated purchases of an expanding AAPL product offering.
Unfortunately, there have been a series of disappointments
including slower sales growth, lower margins, and increased
competition. There have also been delays in new carrier wins,
next generation product introductions, and new product category
launches. While all of these have had an understandably negative
impact on AAPL's share price, we take a longer view and believe
our thesis is intact." (Continue reading here.)
In the second quarter ended March 30, 2013, Apple announced
quarterly revenue of $43.6 billion and net profit of $9.5
billion, compared o $39.2 billion and $11.6 billion, the previous
year. The results came on higher iPhone and iPad sales, and a
slight decline in Mac sales. Its gross margin was 37.5%, compared
to 47.5% a year previously.
Apple also issued lower sequential and year-over-year guidance
for the third quarter, expecting revenue between $33.5 billion
and $35.5 billion and gross margin between 36% and 37%.
Apple's CEO, Tim Cook, hinted at new products in the future in
the company's earnings release:
"Our teams are hard at work on some amazing new hardware,
software, and services and we are very excited about the products
in our pipeline," he said.
Apple's three-year price, revenue, net income and P/E ratio net
Ratios stand at a near 10-year low 9.87 P/E, and a near five-year
low 2.32 P/S. Its P/B stands at 3.2, and the Peter Lynch chart
Symmetricom Inc. (
A less prominent position, Symmetricom accounts for 0.038% of
Einhorn's portfolio. He bought 1,709,846 shares in the second and
third quarter of 2010, at about $6 and $5 per share on average,
respectively. In the first quarter he reduced 1,160,796 shares
for $5 on average and retains 549,050 shares.
The stock priced at $4.51 on Wednesday has slipped near to its
three-year low of $4.19.
Symmetricom is a timekeeping company whose technologies appear in
GPS satellites, power grids and military and civilian networks,
to name a few.
In its third quarter ended March 31, 2013, the company reported
lower revenue of $53.3 million, from $60.4 million a year
previously and net income of $0.8 million, also down from $2.2
million the previous year. Revenue and net income both increased
sequentially, and revenue veered toward the high end of its
Improved sequential earnings resulted from higher revenue,
improved CSAC margins and cost-cutting initiatives. Declined
year-over-year revenue was influenced by a drop in its government
and enterprise business to $23.3 million from $27.8 million.
On June 18, the company announced a restructuring plan in order
to "improve operational and financial efficiency while maximizing
resources to support its growth initiatives" that includes the
elimination of 12% of its workforce, and lowered its fourth
"The steps we announced today are the result of a recent
comprehensive business review and reflect the driving of
efficiencies across our operations, while continuing to meet the
needs of our customers." said Elizabeth Fetter, chief executive
officer of Symmetricom. "The overall business environment remains
challenging as we face a number of headwinds which we expect will
continue into fiscal 2014.
The company's 10-year price, revenue, net income and P/E ratio
have progressed as follows:
In addition to the three-year low price, Symmetricom's P/B and
P/S ratios are close to three-year lows as well, at 0.98 and
0.84, respectively. It has a P/B of 1. The Peter Lynch chart
would suggest that it remains overvalued:
To see additional David Einhorn buys and sells, visit his
portfolio here. Also check out the Undervalued Stocks, Top Growth
Companies and High Yield stocks of David Einhorn.About GuruFocus:
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