Einhorn’s Influence (from Barron's)

Diffusion

My take away: what if all the side line money move into the market.

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Einhorn’s Influence A ‘Pathetic’ Sign Of ‘Shallow’ Market: Analyst
By Brendan Conway
They call it “being Einhorned.” A stock takes a sharp move (usually a plunge) when hedge-fund manager David Einhorn opines in public.

Sometimes, as with beauty-and-health products company Herbalife (HLF), Einhorn doesn’t even give an opinion. The stock moves  anyway as traders parse the Greenlight Capital chief’s words for hints of a viewpoint.

This, Davidson & Co. analyst Tim Ramey tells the Wall Street Journal, is “a pathetic indication of how shallow the stock market is right now, how uninvested people are.” Ramey was one of the analysts defending Herbalife when its stock plunged in May from above $70 to the mid-$40s. It currently trades around $51.

The Wall Street Journal takes a look at the phenomenon this morning that Einhorn has called “just weird.” If you thought that the negative comments (or those perceived as negative) get more attention, you were right:

The Wall Street Journal reviewed the performance of 22 stocks after they were mentioned by Mr. Einhorn in television interviews, investor conferences, other public events and letters to Greenlight investors. The nine companies where analysts and investors saw his comments as negative fell by a median of 4.9% on the same day, the analysis shows. Thirty days later, the median decline was 13%.

…

The Einhorn effect isn’t as strong when investors think he feels bullish about a company’s prospects. In 13 such cases, the shares posted a median increase of 0.8% on the day Mr. Einhorn discussed them—and were up 10% after 30 days, data show.

The list of stocks to slump after commentary from the hedge-fund manager includes real-estate developer St. Joe Co. (JOE), coffee maker Green Mountain Coffee Roasters (GMCR) and construction-materials company Martin Marietta Materials (MLM).

NZX

Diffusion

NZX 发表于 2012-9-18 10:25 AM