That would explain the recent unprecedented weakness. I agree, this is good news as the overhanging supply has been removed from the market. However, I'm still in (long 20 contracts 17.5 calls) on the possibility of a 9/8/15 news announcement.
Greenlight Capital At UBS: More Disappointment From August
Last update: 1:58:40 pm
Greenlight Capital Re, Ltd. (NASDAQ: GLRE) reported another month of negative portfolio returns.
The firm lost 5.5 percent in August, after negative returns of -5.9 percent in July. Moreover, since the beginning of the quarter, the portfolio has fallen 11.1 percent and 14 percent since the beginning of the year.
The fund attributed the poor performance to its large stakes in Micron Technology, Inc. (NASDAQ: MU), down 11.35 percent over August, and Sunedison Inc (NYSE: SUNE), which plummeted 55.33 percent.
Related Link: David Einhorn Takes A Hit: Greenlight Capital Fell 5.3% In August, 13.8% YTD
In a report issued Tuesday, UBS analysts Brian Meredith and Jason Efkeman reiterated a Buy rating on shares of Greenlight Capital, but, after another tough month, they decided to lower their price target (from $37 to $34) and their estimates for 2015 and 2016.
They now expect 2015 EPS of $(4.73) – down from a previous estimate of $0.89, and 2016 EPS of $3.95 – down from $4.48. The firm’s third-quarter investment portfolio return estimate now stands at -10.0 percent, assuming a “modest positive return in September.”
Changes To The Portfolio
After the soft results were announced, David Einhorn’s firm disclosed a few changes in its portfolio. Micron and Sunedison seem to no longer be a part of it; however, many of the top holdings, including Apple Inc. (NASDAQ: AAPL), CONSOL Energy Inc. (NYSE: CNX), General Motors Company (NYSE: GM) and gold, remain in there.
Replacing Micron and Sunedison in the top picks list, investors can now find small-cap real estate operator Green Brick Partners Inc (NASDAQ: GRBK) and ISS A/S (ISS-DK), a Danish company providing facilities management services.
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