5:42 Speaker 14, David Einhorn, Greenlight Capital

5:43 Presentation: “Two Longs And Two Types Of Overhang”

5:43 David wants to start with a quote by Jean Claude Juncter: “When it becomes serious you have to lie”

5:44 Einhorn’s first long idea is…

Delta Lloyd

5:45 Strong balance sheet, good risk management, well-positioned, etc

5:47 Overhang: (parent-company) Aviva

5:48 (There will be a third idea posted on the Value Investing site later because Greenlight “has so many good ones we had a hard time choosing)

5:49 Second long idea: Microsoft

5:50 Einhorn said five years ago that Microsoft “was the stock market’s A-Rod equivalent”

5:52 Microsoft “doesn’t get enough credit for all of its achievements”

5:53 Microsoft can’t win as a team with A-Rod on his own; Microsoft suffers from “Charlie Brown management”

5:55 Steve Ballmer is “stuck in the past”

5:57 Einhorn would like to remind you of a statement by Ballmer to a reporter a couple years back wherein The Balm said “There is no chance for for the iPod to get any signifcant market share.”

5:58 Microsoft needs a leadership situation like the one Einhorn encountered on the field during intramural football his freshman year at Cornell. An upper-classman told him, “You’re tall, you should play quarterback.” After less than 30 minutes it was clear that Einhorn “should not be quarterback.” The upperclassman told him, “Okay, we’ve seen what you could do, let’s give someone else a chance.” Steve Ballmer should let the board say to him, “We’ve seen what you can do, let’s give so and so a chance.”

6:02: Steve Ballmer’s presence “is the biggest overhang on Microsoft’s stock.” Balmer, your move! Thank you and good night!

6:04: Einhorn would like to add, “Go Mets”

And some slides, in case the point was unclear:


6:20 Speaker 15, Carl Icahn

6:30 Carl Icahn long idea? IEP (Icahn Enterprises)

15 comments (hidden to protect delicate sensibilities)
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Comments (15)

  1. Posted by Guest | May 25, 2011 at 10:55 PM

    Great headline

  2. Posted by Tomtabil | May 25, 2011 at 11:30 PM

    Guess I’m backwoods but what does the fucking rake mean.  Is he good or not?

  3. Posted by The Chef | May 25, 2011 at 11:44 PM

    Where’s Carl?

  4. Posted by Dotcomlover | May 25, 2011 at 11:47 PM

    Isnt Einhorn a short?
    what the f**k does he know about Tech?

  5. Posted by Guest | May 26, 2011 at 1:48 AM

    wow. you’re quite the idiot, aren’t you?

  6. Posted by Guest | May 26, 2011 at 1:49 AM

    It means bad. Einhorn thinks Microsoft is good, will be great sans Ballmer.

  7. Posted by Guest | May 26, 2011 at 1:49 AM

    It’s a poker term…

  8. Posted by Guest | May 26, 2011 at 1:50 AM

    Agreed.

    -Worm

  9. Posted by SteveB | May 26, 2011 at 2:04 AM

    mr einhorn needs to be disabused.  billg had his fingerprints all over the skype deal, spends a lot of his time with his thumb on the switch of the bing cash incinerator.

  10. Posted by Guest | May 26, 2011 at 2:06 AM

    what?

  11. Posted by Jonah | May 26, 2011 at 2:13 AM

    Didn’t Einhorn already pitch MSFT like 3-4 yrs ago at Ira Sohn? I generally agree with long-term horizons, but in this case he’s overestimating our patience?

  12. Posted by Guest | May 26, 2011 at 2:22 AM

    Five years ago (as he apparently said in the presentation).

  13. Posted by DE | May 26, 2011 at 2:22 AM

    Beggars can’t be choosers. 

  14. Posted by Guest | May 26, 2011 at 3:03 PM

    I guess you were one of the people he fooled all of the time?

  15. Posted by Dotcomlover | May 27, 2011 at 7:02 AM

    maybe just maybe you should just go away….msft ebitda up 220% since 00, stock up 0%. 7x ebitda ….and just maybe Einhorn should shut the fuck up