Greenlight Capital’s David Einhorn has five US companies he is bullish on — including two “sexy” ones.
Speaking at the Sohn conference crowd on Tuesday, Einhorn said he has found five companies across different industries in “transition” that he believes will emerge stronger from their transformations.
Though the companies face different problems, Einhorn said they each had something resilient within their business models that gives him comfort.
In a presentation riddled with cartoons and soundbites from classic songs like “Eye of the Tiger,” Einhorn’s five picks were:
- Acadia Healthcare, a mental-health and addiction treatment center conglomerate
- Centene, a health insurer primarily focused on administering Obamacare plans
- Fluor, a construction and engineering firm
- Versant Media, a spinout from Comcast that includes CNBC, MS Now, and other channels
- Victoria’s Secret, the lingerie and women’s clothing giant
Einhorn believes these stocks could soar, with prices jumping between 52% (Centene) to 167% (Fluor), but without a singular driver.
For some companies, such as Fluor, macro tailwinds — such as a large infrastructure boom — will drive earnings growth. Others have specific changes that will help them bounce back from a tough run or stand out in a crowded sector. Or it could simply be a matter of price point.
Versant, Einhorn said, is “supercheap, and we find that very sexy.”
Victoria’s Secret, meanwhile, has new leadership that is bringing back its “sexy DNA,” Einhorn said, which includes the annual televised fashion show.
Either way, Einhorn — known for being an ardent short-seller of companies like Tesla — spent his time in front of the Sohn audience this year pitching with optimism and a smile. He even did a little jig as a snippet of Gloria Gaynor’s “I Will Survive” played before he laid out his case for Centene.
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