Einhorn Continues to Like Marvell Tech, Computer Sciences
In a letter to investors dated January 22, David Einhorn's Greenlight Capital discussed its positions.
The letter, which is signed by the fund, states that, despite the drop in Marvell Tech (NASDAQ: MRVL), Greenlight continues to like the stock. Likewise, Greenlight is also a fan of Computer Sciences (NYSE: CSC), a position it began to build in February of 2012.
Greenlight admits that the $1 billion patent infringement case dealt a severe blow to its Marvell position, but doesn't believe that it's fundamentally in the wrong on the company. Greenlight reiterated its belief that Marvell was on the cusp of a “large product transition” that was “not in the [present] valuation.”
Greenlight compared Marvell to its position in Sprint (NYSE: S): The telecom giant was poor performer until late 2012 when Japan's Softbank stepped up to purchase a 70 percent stake.
On Computer Sciences, Greenlight stated that it believes the company is capable of earning more than $4 per share. Despite the recent appreciation in shares, Greenlight believes they have the potential to move even higher.
Shares of Computer Sciences were down about 1 percent on Wednesday, while shares of Marvell moved up about 1 percent.
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