David Einhorn Warning On Lehman Brothers (LEH) Proves Correct

September 9, 2008 1:20 PM EDT
With shares of Lehman Brothers (NYSE: LEH) down 30% today and 85% year-to-date, David Einhorn of Greenlight Capital looks like a genius. Einhorn highlighted his thesis on a short sale of Lehman at the Value Investor Congress in November of last year.

It is unclear if Einhorn stay convicted to keep the short following the massive drop, but either way he profited wildly and was ultimately RIGHT.

Here are the alerts we sent on David Einhorn, discussing Lehman, from last year's Congress:

Nov 29, 2007 09:50 AM Further Update From Value Investing Congress On Lehman Brothers (LEH)
Nov 29, 2007 09:35 AM Further Update From Greenlight's Einhorn On Lehman Brothers (LEH)
Nov 29, 2007 09:19 AM David Einhorn of Greenlight Capital Negative On Lehman Brothers (LEH)
Nov 29, 2007 09:12 AM David Einhorn Currently Speaking At Value Investor Congress Conference Today (LEH, BSC, MER)

Einhorn is again speaking at the Value Investor Congress this year, which is coming up on Oct 6-7th. If you can attend, you should. If you can't then will be giving updates from the Congress. Here is the link to our Value Investing Congress entity page. All our updates from the Congress will be reported here.

What is Einhorn focused on now? While we know his long positions, short positions are not disclosed in mandatory quarterly 13F filings --- so we hope at the Congress this year Einhorn reveals a new double on the short side. We will have to wait and see. On the long side, we find Einhorn's new bet on Teradata Corporation (NYSE: TDC) interesting. In his latest quarterly filing, Einhorn disclosed a new 3,775,000 share stake in the company.

Teradata provides enterprise data warehousing solutions, including enterprise analytic technologies and services. In August, Teradata reported quarterly EPS of $0.38, which was 5 cents better than the analyst estimates. Revenues for the quarter were $455 million, versus the consensus of $447.17 million. Teradata sees revs growth in the range of 5-8% and EPS of $1.35-$1.45. With the stock trading at $23.88, Teradata at about 16x the top end of that EPS range.

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Value Investing Congress, Greenlight Capital, David Einhorn, Lehman Brothers