Greenlight...GLRE...whats not to like..Einhorn

Discussion in 'Stocks' started by gimp570, Mar 12, 2009.

  1. gimp570

    gimp570

    Time will tell if Einhorn is spot on with this call once again..The thing i like about him is he puts his balls on the line!



    Einhorn bets on major currency 'death spiral'
    Oct. 19, 2009, 2:39 p.m. EDT
    Major institutions should be broken up if necessary, Greenlight manager says

    By Alistair Barr, MarketWatch

    NEW YORK (MarketWatch) -- Greenlight Capital is betting on the possibility of a major currency collapse and a surge in interest rates, the hedge-fund firm's manager David Einhorn said Monday, citing ballooning government deficits in some of the world's most developed countries.

    Einhorn, who warned about Lehman Brothers' frailty before it collapsed last year, also said financial institutions that are deemed as "too big to fail," such as Citigroup Inc. , should be broken up.

    Greenlight has been buying physical gold this year because Einhorn is concerned that efforts to save the financial system and fuel economic recovery are undermining the value of such currencies as the U.S. dollar.

    On Monday, he said Greenlight has added new trades to this investment theme, buying long-dated options on much higher interest rates in Japan and other developed regions -- effectively giving the firm the chance to make big profits from a jump in rates. The options, bought from major banks, are tied to interest rates four to five years out, Einhorn noted.

    "Japan may already be past the point of no return," he said during a presentation at the Value Investing Congress in New York.

    'Lehman shouldn't have existed in any size to threaten the financial system.'

    Japan's debt is equal to 190% of the country's gross domestic product and its government deficit will be 10% of GDP this year, according to Einhorn.

    Japan has been able to borrow money at roughly 2% a year to finance these deficits, partly because the country has many savers willing to buy low-yielding government bonds. However, some of these savers may begin spending instead as they enter retirement, Einhorn argued.

    "When the market refuses to refinance at cheap rates, problems emerge," he said, adding that this could trigger a "currency death spiral."

    Interest rates have been very stable in Japan for years, so the options on higher rates that Greenlight bought were relatively cheap. Einhorn said the "asymmetry" of that trade was interesting: If rates were to jump suddenly in Japan, Greenlight stands to make "multiples" on its positions.

    "There remains a possibility that I'm wrong, and I hope I am," he commented. But earlier in the speech he remarked: "Just because something hasn't happened before, that doesn't mean it won't."
    Remedy to shore up system

    Einhorn also compared potential problems in sovereign-debt markets to the financial crisis that engulfed markets last year.

    When Lehman collapsed, investors reacted by dramatically increasing the cost of borrowing for rival Wall Street firms to the point where their business models were threatened, he Einhorn. The collapse of any major currency could have same impact of rerating the cost of financing governments in deficit.

    Unlike Japan, the United States isn't past the point of no return, the fund manager stressed. However, he criticized financial-reform proposals pushed by Treasury Secretary Timothy Geithner, arguing they provide a government backstop for the largest institutions, entrenching them further.

    No institution should be too big to fail, Einhorn contended. "The real solution is to break up anything that fails that test. Lehman shouldn't have existed in any size to threaten the financial system."

    The same applies to Citigroup and Bear Stearns, which J.P. Mortgage Chase & Co. acquired, as well as American International Group Inc. and "dozens" of other firms, he said.
     
    #21     Oct 20, 2009
  2. gimp570

    gimp570

    By Michael Corkery
    When David Einhorn speaks, people listen.

    Remember what happened when Einhorn spoke out about Lehman Brothers in the spring of 2008? The hedge fund manager publicly questioned whether Lehman was coming clean on the real value of its real estate holdings and complex debt securities.

    His speech also sparked a public feud with Lehman’s financial officer, Erin Callan, who said Einhorn used information from their phone conversation in his speech to lambast the bank.

    Amid her flap with Einhorn and Lehman’s deteriorating financial problems generally, Callan was demoted.

    Einhorn’s latest targets are Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke. He called the men, “quintessential short-term decision makers” in a speech at the fifth Annual Value Investing Congress in New York on Monday.

    “Although our leaders ought to be making some serious choices, they appear too trapped in short-termism and special interests to make them,” he said. “They explicitly do whatever it takes to solve one problem at a time and deal with the unintended consequences later.”

    Einhon, who runs Greenlight Capital with $5 billion under management, is clear with his audience that he’s talking his own book. While criticizing Lehman, he was heavily shorting its stock. In this case, Einhorn is investing in gold because he says the commodity tends to rally amid “when monetary and fiscal policies are poor and does poorly when they are sensible.”

    Einhorn is of the school that the low interest rate environment is not helping rescue the economy, but rather increasing the deficit and causing a serious inflation risk. As the dollar gets devalued, gold becomes a good investment. Bernanke, Geithner and the rest of the Obama economic team argue that the low rates are helping stimulate consumer demand again without inflaming inflation.

    Einhorn was good at calling out Lehman’s bluff. The bank’s balance sheet turned out to be over-valued. Einhorn may be gaining ground in his bet against the federal government. Today’s news that starts of new single family homes declined in September (overall starts which include multi-family were up) show that even rock-bottom interest rates and a generous $8,000 tax credit cannot stir enough demand to propel a fleeting resurgence of home building, which is a big job driver.

    Just one word of advice for Geithner and Bernanke: If Einhorn calls and wants to chat, don’t answer.
     
    #22     Oct 20, 2009
  3. gimp570

    gimp570

    its been cookin lately.....



    must have had pretty good earnings
     
    #23     Nov 4, 2009
  4. gimp570

    gimp570

    someone has been buying the pisss out of GLRE for a week or so....


    this thing can not lose a bid and just keeps crankin
     
    #24     Nov 9, 2009
  5. gimp570

    gimp570

    GLRE Has earning today..

    any predictions? I am a little worried. They took a big hit in BSX lately. I guess we will see soon enough


    i am hoping it will be the last chance to buy it under 30 bucks
     
    #25     May 3, 2010
  6. gimp570

    gimp570

    well eearnings are out ...they dont seem good



    GRAND CAYMAN, Cayman Islands, May 3, 2010 (GLOBE NEWSWIRE) -- Greenlight Capital Re, Ltd. (Nasdaq:GLRE - News) today announced financial results for the first quarter of 2010. Greenlight Re reported a net loss of $12.4 million for the first quarter of 2010 compared to net income of $27.8 million for the same period in 2009. The net loss per share was $0.34 for the first quarter of 2010, compared to fully diluted earnings per share of $0.77 for the same period in 2009.
     
    #26     May 3, 2010
  7. gimp570

    gimp570


    i guess its going to be a painful tuesday!!
     
    #27     May 3, 2010
  8. gimp570

    gimp570

    glre earnings out....again the dont look great...

    For the three months ended June 30, 2010, we reported net income of $17.7 million, as compared to $92.2 million reported for the same period in 2009. The decrease in net income is principally due to our investment portfolio reporting a net gain of $22.6 million, or a return of 2.6% on our investment account, for the second quarter of 2010 as compared to a net investment income of $88.3 million, or a return of 13.9%, for the same period in 2009. Additionally, we reported an underwriting loss of $0.6 million for the three months ended June 30, 2010 compared to underwriting income of $10.2 million reported for the three months ended June 30, 2009. The underwriting loss was attributed in large part to adverse loss development on a motor liability contract and a 2007 casualty clash contract.



    For the six months ended June 30, 2010, we reported a net income of $5.3 million, as compared to net income of $120.0 million reported for the same period in 2009. The decrease in net income is principally due to our investment portfolio reporting a net gain of $5.8 million, or a return of 0.6% on our investment account, for the six months ended June 30, 2010 as compared to a net investment income of $116.0 million, or a return of 19.1%, for the same period in 2009. Underwriting income reported for the six months ended June 30, 2010 decreased by $4.3 million to $8.7 million from $13.0 million reported for the six months ended June 30, 2009. The decrease in underwriting income was attributed in large part to adverse loss development on a motor liability contract and a 2007 casualty clash contract as discussed above.






    but then again...when it comes to earnings...i dont really get em
     
    #28     Aug 2, 2010
  9. gimp570

    gimp570

    GLRE halted all day..


    anyone have any idea whats going on?
     
    #29     Jan 25, 2012
  10. gaj

    gaj

    paid multi-million dollar fine in europe for inside trading.
     
    #30     Jan 26, 2012