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AVID EINHORN, GREENLIGHT CAPITAL, SPEAKS EXCLUSIVELY WITH CNBC TODAY

EINHORN ON MOODY'S INVESTOR SERVICE:

BURNETT: THE MAN WHO BLEW THE LID OFF LEHMAN BROTHERS LAST YEAR IS MAKING ANOTHER BOLD CALL. DAVID EINHORN HEAD OF HEDGEFUND GREENLIGHT CAPITAL SHORTING THE CREDIT AGENCY MOODY SAYING THAT AAA IS A CURSE. NOW, HE DOESN'T SPEAK OFTEN BUT HE DID SPEAK EXCLUSIVELY TO CNBC. HERE'S WHAT HE SAID.

EINHORN: OUR IDEA FOR THE CONFERENCE TODAY IS ACTUALLY IN LINE WITH THE RATING AGENCIES. IT'S TO SHORT THE MOODY'S INVESTOR SERVICE COMPANY. WHAT'S INTERESTING IS THATT HE CREDIT ANALYSTS, THEY DON'T USE RATINGS ANYMORE BUT EQUITY ANALYSTS SEEM TO LIKE THEM A LOT. SO THE STOCK TRADE ABOUT 19 TIMES EARNINGS.YES, THEY'RE SUPPOSED TO BEAT THEM THIS YEAR. BUT THAT SEEMS TO ME TO BE A HIGH PRICE TO PAY FOR A COMPANY THAT HAS REALLY DONE A LOT TO DESTROY ITS BRAND.I THINK 19 TIMES IS A PRETTY HIGH PRICE TO PAY FOR THAT SORT OF A -- REALLY A DESTROYED FRANCHISE.

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EINHORN ON WHAT HE IS BUYING NOW:

HERERA: WE'RE GOING TO TALK ABOUT A GUY WHO IS PRETTY MUCH KNOWN AS A LEGEND FOR HIS ACTIONS DAVID EINHORN IS WHO I AM TALKING ABOUT AND HE PROBABLY IS BEST KNOWN FOR SHORTING LEHMAN STOCK WELL BEFORE IT FILED FOR BANKRUPTCY IT HAS BEEN ALMOST A YEAR SINCE HE HAS SPOKEN TO THE MEDIA AND HE IS NOW BREAKING HIS SILENCE AND IN A CNBC EXLCUSIVE INTERVIEW DAVID EINHORN TELLS US WHAT HE IS BUYING NOW

EINHORN: SINCE I DON'T REALLY KNOW HOW WE ARE GOING TO RESOLVE THE ISSUE BETWEEN POTENTIALLY A LOT OF INFLATION VS A FISCAL AUSTERITY THAT I THINK HAS TO COME DOWN THE ROAD I THINK IT MAKES SENSE FOR US TO HAVE A FRACTION OF OUR ASSETS IN GOLD WE OWN TWO ETFS WE OWN GLD AND A SMALLER ONE WE OWN THE GDX

HERERA: WE ALSO TALKED TO MR EINHORN ABOUT ANOTHER SECTOR HERE'S WHAT HE HAD TO TELL US

EINHORN: WE BOUGHT BOTH PFIZER AND WYETH THE IDEA IS THAT I THINK THE PFIZER STOCK REALLY GOT HURT VERY BADLY WHEN THEY CUT THEIR DIVIDEND WHEN THEY ANNOUNCED THIS ACQUISITION AND I THINK THE COMPANY IS IN A BIT OF A PENALTY BOX FOR THE TIME BEING BUT AS WE LOOK AT IT I THINK THE ACQUISITION MAKES SENSE PFIZER SHOULD CONTINUE TO EARN ABOUT $2 OR MAYBE A LITTLE BIT MORE AND I THINK THE STOCK WAS $14 OR $15 A SHARE TODAY I THINK THAT'S A PRETTY GOOD BARGAIN FOR A HIGH-QUALITY FRANCHISE LIKE THAT




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