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Wednesday, February 09, 2011

Quote of the Day: Einhorn on JOE

"With the company trading at more than three times its value, it is easy to see why the Board wants to sell, but hard to fathom why anyone would buy. The lack of cash flow creates a particular challenge for any financial buyer," a spokesman for Einhorn's Greenlight Capital said in an e-mailed statement on Tuesday.  -Reuters

-KD

disclosure: no positions in JOE

3 comments:

Nemo said...

I wonder what his cost basis is.

Kid Dynamite said...

Nemo - I believe that Einhorn has been short JOE for years.

Michael said...

This is a very compelling story - If you were able to flip through Einhorn's presentation from VIC, you came away wondering how this stock was trading at anything higher than $10/share.

Given Einhorn's track record of weeding out short stories,, particularly in regards to valuation issues (Allied, LEH, among others), you have to think Berkowitz must see another angle, at least above and beyond what he is letting on in the press.

I just can;t fathom what it might be, outside of a mega short squeeze/capitulation play.