Greenlight Capital Owns Ensco; Should You? (ESV)
Noted value investor and hedge fund manager David Einhorn disclosed a new position in offshore drilling contractor Ensco PLC (NYSE: ESV) in his most recent 13-F filing. Einhorn's investment vehicle, Greenlight Capital, owned nearly 7.5 million ESV shares worth around $291 million as of June 30, 2010.
It is not too difficult to discern what may have drawn Einhorn to take interest in this stock. ESV was beaten up along with the rest of the drilling sector in the wake of the BP oil disaster. The shares have bounced back since hitting a 52-week low of $33.33 in early June, but still trade at a fairly cheap valuation.
The stock trades at a trailing P/E of 9.13, a forward P/E of 10.13, and a PEG ratio of 1.45. Ensco (ESV) also offers an attractive 3.24% dividend yield.
