Einhorn: Apple Is Great Company With Great Balance Sheet
May 16 2012 - 5:43PM
Dow Jones News
Greenlight Capital's David Einhorn vouched for Apple Inc. (APPL)
in his speech at the Ira Sohn conference in New York on Wednesday,
saying the company is a "great company with great balance
sheet."
He said some investors' concern that Apple can't maintain its
hyper growth was based on the "misunderstanding" that Apple, like
other hardware manufacturers, may suffer from a one-hit wonder. But
the hedge-fund manager said Apple is a software company that can
get consumers hooked onto its products through its various hardware
products.
The value investor said Apple's current value "isn't demanding,"
as "most cellphones aren't smartphones and tablets are still young
and immature."
On Apple's huge cash holdings, Einhorn said Apple doesn't need
to give out dividends. Rather, he said the company should issued
preferred shares, as it doesn't demand an immediate use of cash and
poses no maturity or refinancing risk.
In his over-100-page slide presentation, Einhorn commented on an
eclectic range of stocks and topics, including his dislike of
Martin Marietta Materials Inc. (MLM), saying the company "has a lot
of problems"; and China, cautioning the nation's credit tightening
may stifle economic growth. He also criticized United States Steel
Corp. (X) for generating a loss despite its iron ore cost being
just over a third of what its competitors had paid.
Martin Marietta Materials (NYSE:MLM)
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