, value investor and head of hedge fund Greenlight Capital,
bought three new stocks in the fourth quarter: Google Inc. (
), Vodafone Group Plc (
) and Western Digital Corp. (
). Greenlight Capital since inception in May 1996 has returned
19.4% on annualized basis, net of fees and expenses, after
underperforming the market being up 8.3% 2012.
Google Inc. (
Einhorn bought 63,000 shares of Google Inc. for an average price
of $700 per share in the fourth quarter. Google shares on Friday
are $792.20, touching an all-time high.
Google in the past five years has grown at the following rates
per share: 22.9% for revenue, 17% for EBITDA, 21.8% for free cash
flow and 25.5% for book value.
In 2012, its revenue grew to $50.2 billion, from $37.91 billion
in 2011. Net income increased to $10.74 billion, from $9.74
billion. Google also has over $56 billion in cash on its balance
On Jan. 22, Google reported a 36% year-over-year increase in
revenue to $14.42 billion. Net income was $2.89 billion, compared
to $2.71 billion in the fourth quarter of 2011.
Google has a P/E of 23.78, P/B of 3.4 and P/S of 5.1.
Vodafone Group Plc (
Einhorn bought 1.6 million shares of Vodafone for $27 per share
on average in the fourth quarter.
Vodafone is a mobile communications company with a global
presence with equity interests in more than 30 countries and more
than 40 partner markets.
Vodafone has the following growth rates per share: 7.7% for
revenue, 5.3% for eBITDA and 0.8% for book value. Free cash flow
per share declined at a rate of 6.5%.
For the quarter ended Dec. 31, 2012, Vodafone reported
�11.39 billion in revenue, a 2% decline from a year
Vodafone has a P/E of 21.7, P/B of 1.2 and P/S of 1.87.
Western Digital Corp. (
Einhorn bought 600,000 shares of Western Digital Corp for $37 per
share on average. Western Digital shares on Friday afternoon are
priced at $48.59. Einhorn owned the stock at much lower prices
before, in 2008 and 2009:
Western Digital provides products and services that preserve
digital content, such as storage devices, networking equipment
and home entertainment products under the name brands of WD, HGST
In the past five years some of its business fundamentals
increased at the following rates: 9.5% for revenue, 14.1% for
EBITDA, 23.3% for free cash flow and 27.4% for book value.
In the quarter ended Dec. 28, 2012, Western Digital reported $3.8
billion in revenue, up from $2 billion a year previously, and net
income of $513 million, or $2.09 per share, compared to $145
million, or $2.09 per share, a year previously.
Western Digital has a P/E of 5.9, P/B of 1.4 and P/S of 0.78.
. Also check out the
, Top Growth Companies and High Yield stocks of David
Einhorn.About GuruFocus: GuruFocus.com tracks the stocks picks
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