text: One of Billionaire David Einhorn's Favorite Stocks is a Great Value Right Now - Insider Monkey
  Published on October 23, 2012 at 2:15 pm by SA in Stock Analysis
  Starting with just $900,000 in 1996, he has grown the assets of his fund, Greenlight Capital, to more than $6 billion. The fund has earned an average return of 22% since its launch, thanks to Einhorn's prescient long and short stock picks. Compare this to the average hedge fund and Greenlight stands heads and shoulders above.
  Einhorn is a noted activist investor who believes in the value approach for stock picking. Believe it or not, his investment philosophy is quite simple: He operates with the idea that a company'sintrinsic value will achieve consistent absolute returns for its investors. He's really made his name on some high-profile short sales, betting against the likes of Lehman Brothers prior to the financial market crash of 2008 and Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), which had increased more than tenfold within two years and plunged by 50% within one month after the he announced his short position.
  Einhorn owns nearly 11 million shares of Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL), a stock with a very appropriate ticker symbol as it specializes in bagel specialty restaurants. Einstein Noah was founded in 1992 and currently operates close to 800 bagel shops in 39 states.
  Risks to Consider: It's critical to keep in mind that just because a major and successful money managerowns shares in a company, it is not a guarantee it can't drop in value. While this type of ownership is a powerful bullish signal, it is not foolproof by any means. The big guys can and do lose money, as no one is larger than the market itself.
  Action to Take –> I firmly think the odds lay on the bullish side with Einstein Noah Restaurant Group. However, at the same time, I don't want to catch a falling knife should the weakness continue. My plan, right now, is to wait for a bounce above the 200-day simple moving averagein the $16 range prior to buying. Once long, I will use the 200-day simple moving average as the stop level, closing the trade on a daily close below it.
  David EinhornEinstein Noah Restaurant Group (BAGL)Green Mountain Coffee Roasters Inc. (GMCR)Greenlight CapitalLehman BrothersRelative Strength Index (RSI)World Series of Poker
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