Editor’s note: This article was first published in October 2014; SunEdison’s $18.86 share price, David Einhorn’s view that it was worth more than $32, and his remarks on Greece, France and a second tech bubble reflect that time. These October 2014 ideas are kept as a historical record and are not investment advice. SunEdison filed for bankruptcy in April 2016.
In a long and thorough presentation for investors, David Einhorn, head of Greenlight Capital, put forward several investment ideas that could turn out to be great opportunities.
First, Einhorn recommends buying shares in the solar energy company SunEdison, a company with a good track record and great potential for its share price to rise. Its shares trade at $18.86, and he thinks the company can only get better in the long run, as he considers it undervalued. Einhorn believes the stock is worth more than $32 a share. This investor is clearly betting heavily on a prosperous future for solar energy.
Einhorn also turns his attention to Europe, focusing on Greece. He argues that the worst is over for Greece and therefore recommends buying shares in Greek banks, specifically Alpha Bank and Piraeus Bank.
The truth is that both banks trade at very low prices, so if Greece pulls through, they would be an excellent investment opportunity.
France, on the other hand, is a country whose outlook, in this investor’s view, “looks very ugly”.
As for tech stocks, Einhorn thinks we are witnessing the second tech bubble in 15 years.
See also: David Einhorn: 5 poker lessons applied to stock market investing
Featured image: Boubloub, CC0 1.0, via Wikimedia Commons.
