Tag Archives: Einhorn

Core Labs (CLB) So What is It Worth? Is Einhorn Right?

One trick that Warren Buffett uses when he first looks at a company is NOT to look at the price OR another person’s opinion.  He doesn’t want price to influence his valuation of the company, and he seeks his own counsel.

Why don’t we test our valuation skills and do a valuation of Core Labs (CLB) with the data below.

  1. CLB VL 2015
  2. CLB VL 2017
  3. Core Labs CLB 2016_annual_report
  4. CLB 2017_1q_10q

Do your own work BEFORE looking at the post below.  See how you compare or differ Einhorn’s short thesis on CLB.    Do you differ?   Why and how.

 —
Whitney Tilson: CLB and HHC

If someone forwarded you this email and you would like to be added to my email list to receive emails like this one roughly once a week, simply send an email to investors-subscribe@mailer.kasecapital.com. If you wish to unsubscribe, email investors-unsubscribe@mailer.kasecapital.com.

CSInvesting: I suggest subscribing.

——————————-

1) I (Whitney Tilson) attended the always-excellent Ira Sohn conference on Monday and, as often happens, Bill Ackman and David Einhorn stole the show with two outstanding, incredibly-well-researched ideas, long Howard Hughes (which has been one of my largest positions since it was spun out of GGP when it emerged from bankruptcy after the credit crisis) and short Core Laboratories (CLB), respectively.

They have posted their presentations here:

  • HHC
  • CLB   Here is Einhorn’s short thesis on CLB (Core Labs)

If you’re interested in learning more about HHC (and seeing the incredible development underway at South Street Seaport), the company is hosting its first investor day there a week from today, Wed. 5/17 from 8:00am to 1:30pm. Email Tracey.Wynn@howardhughes.com to register. I hope to see you there.

As for CLB, it doesn’t happen very often – maybe once every two years – but sometimes I (Whitney Tilson) see (at a conference) or read (on something like ValueInvestorsClub) an investment thesis that is so compelling and blindingly obvious that I immediately put the position on – which is what I did on Monday just after Einhorn’s presentation. Check it out for yourself – it’s that good. A highly cyclical company masquerading as a secular growth story – trading at nearly 9x REVENUES!


Must see video on indexeshttps://vimeo.com/216016883/10b948b174

I highly suggest you view the video—Yeah, there is hope for value investors.

What Happened to Einhorn’s Mojo?

Einhorn

Einhorn, Has he lost his mojo?

Can anyone understand the change in performance. Is it Einhorn’s process or the market?  Hint: I don’t think Einhorn went from brilliance to idiocy or was it random luck?  Comments welcome.