Einhorn reiterated his short case against Green Mountain, saying the company’s capital spending is “inexplicable” and describing its profit potential as “very exposed.”
He likes Cigna and General Motors, however. He said investors are too afraid of HMOs because of uneven earnings, and described Cigna as the best bet in the sector. General Motors, he said, has improved its brand and its financial health.
One stock he didn’t discuss in detail was Herbalife . But when he said he wasn’t going to present a thesis about why Herbalife is a good short, the stock rose in a relief rally.
The final stock Einhorn discussed was Chipotle. The fast-food company faces too much competition from the likes of Taco Bell, which is owned by Yum Brands. What’s more, the stock’s value is too high, Einhorn argued.
Although each of the stocks Einhorn mentioned moved in reaction to his comments (or, in the case of Herbalife, the lack of comments), Green Mountain almost immediately snapped back into positive territory. As Einhorn wrapped up his commentary, it was up almost 1.5 percent.
- by CNBC.com senior editor John Carney
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