{"id":50573,"date":"2014-05-07T05:34:26","date_gmt":"2014-05-07T09:34:26","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=50573"},"modified":"2014-05-07T06:55:50","modified_gmt":"2014-05-07T10:55:50","slug":"einhorns-real-reason-for-shorting-athenahealth","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/07\/einhorns-real-reason-for-shorting-athenahealth\/","title":{"rendered":"Einhorn\u2019s Real Reason for Shorting Athenahealth"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> \"Billionaire<\/p>\n

As of midnight last night, billionaire hedge fund manager and co-founder of Greenlight Capital Inc., David Einhorn, had beaten me.<\/p>\n

You see, Einhorn just publicly announced that he had opened a short position on Athenahealth<\/strong> (ATHN<\/a>), saying the stock could plummet 80% from its present price of $126 per share. (The stock quickly cratered – dropping 13.86% on the news.)<\/p>\n

At the Sohn Investment Conference in New York City, Einhorn further warned that the technology sector was witnessing its second bubble in 15 years.<\/p>\n

Of course, I knew not to take Einhorn’s actions at face value.<\/p>\n

Einhorn is somewhat of a media whore who loves attention.<\/p>\n

He could also be shorting Athenahealth’s stock simply to boost another position in his portfolio, as this is done all the time on Wall Street.<\/p>\n

So I dug into Athenahealth’s latest quarterly report.<\/p>\n

Having authored such reports during my analyst days, I’m damn hard to trick.<\/p>\n

As of 12:05 AM EST, though, I couldn’t find the reason Einhorn was warning of an 80% price implosion.<\/p>\n

Athenahealth is still experiencing strong revenue growth – albeit at a lesser pace than analysts were expecting – and costs are nicely in line, too.<\/p>\n

The company’s SEC filing also failed to reveal a white elephant. That is, some type of catastrophic lawsuit or copyright infringement.<\/p>\n

Its cash position is strong, as well.<\/p>\n

Frustrated, I picked up my phone and started asking my industry contacts what I might be missing.<\/p>\n

What could possibly be causing a billionaire investor to bet against<\/em> such an outwardly attractive stock?<\/p>\n

That’s when I found it!<\/p>\n

As it turns out, Athenahealth’s CFO, Tim Adams, just resigned on Friday.<\/p>\n

Adams recently accepted the position of CFO at Demandware Inc.<\/strong> (DWRE<\/a>), the Burlington-based e-commerce software firm, and will start on June 2.<\/p>\n

Why would a CFO hit the exits if his company was on strong footing? Odds are, he wouldn’t!<\/p>\n

So Einhorn is merely following one of the greatest stock influencers known to exist. A CFO’s resignation is an incredibly bearish signal, one that has just recently proved its worth again…<\/p>\n

Brinker International<\/strong> (EAT<\/a>) and DangDang<\/strong> (DANG<\/a>) both lost their CFOs back in March, and both stocks are getting crushed.<\/p>\n

Nice try, Einhorn!<\/p>\n

You may have fooled every media outlet on Earth on Monday, but you can’t fool me.<\/p>\n

For those looking for yet another profit angle, you might be interested in knowing that Starwood Hotels and Resorts<\/strong> (HOT<\/a>) just lost its CFO, Alan Schnaid, last week. So put your “shorts” on, ASAP!<\/p>\n

Onward and Upward,<\/p>\n

Robert Williams
\nFounder, Wall Street Daily<\/em><\/p>\n

 <\/p>\n

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The post Einhorn\u2019s Real Reason for Shorting Athenahealth<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Einhorn\u2019s Real Reason for Shorting Athenahealth<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com As of midnight last night, billionaire hedge fund manager and co-founder of Greenlight Capital Inc., David Einhorn, had beaten me. You see, Einhorn just publicly announced that he had opened a short position on Athenahealth (ATHN), saying the stock could plummet 80% from its present price of $126 per share. (The stock quickly … <\/p>\n

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