In this article, we discuss the 5 stocks under $30 to buy according to David Einhorn’s Greenlight Capital. If you want our detailed analysis of these stocks, go directly to the 10 Stocks Under $30 to Buy According to David Einhorn’s Greenlight Capital.
5. Danimer Scientific, Inc. (NYSE:DNMR)
Greenlight Capital’s Stake Value: $38,532,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.58%
Number of Hedge Fund Holders: 21
Share Price as of December 15: $10.89
Danimer Scientific, Inc. (NYSE:DNMR), a Georgia-based biopolymer manufacturer, is one of the best stocks under $30 to invest in according to Greenlight Capital’s David Einhorn. Einhorn, as of Q3 2021, holds 2.35 million Danimer Scientific, Inc. (NYSE:DNMR) shares, worth $38.5 million. The stock accounts for 2.58% of David Einhorn’s total investments in the third quarter.
On November 15, Danimer Scientific, Inc. (NYSE:DNMR) announced its Q3 results, reporting a loss per share of $0.15, missing estimates by $0.06. The quarterly revenue totaled $13.37 million, missing estimated revenue by $1.20 million.
As per the Q3 database of Insider Monkey, 21 hedge funds were bullish on Danimer Scientific, Inc. (NYSE:DNMR), with stakes equaling $153 million. This is compared to 30 funds holding stakes worth $309.5 million in Danimer Scientific, Inc. (NYSE:DNMR) in the preceding quarter.
Here is what Nelson Capital Management has to say about Danimer Scientific, Inc. (NYSE:DNMR) in its Q1 2021 investor letter:
“In the materials sector, we bought Danimer Scientific (tkr: DNMR), a next-generation bioplastics company offering completely biodegradable plastics that break down in virtually any environment.
While essential to modern life, plastic products are an ongoing environmental concern due to their longevity and therefore the pollution that results. Despite nationwide efforts to recycle plastics, only 8.5% of plastics waste in t he U .S. is being recycled, according to a study by the U.S. Environmental Protection Agency. Danimer Scientific (t k r: DNMR) has developed a method to make plastic products that are 100% biodegradable and compostable without compromising on functionality. The company sells its PHA- based plastics under the brand name Nodax and is currently the only viable commercial-scale offering.
Danimer uses canola oil to create 100% biodegradable and compostable biopolymer, PHA, through a completely waste-free process. PH A biodegrades in both anaerobic (without oxygen) and aerobic (with oxygen) environments, and unlike other biodegradable plastics, it does not need heat, moisture, or an industrial composting plant to break down. PHA-based plastics can effectively biodegrade in a waste treatment facility, the ocean, or even in home compost piles within 12-18 weeks after the product is discarded.
PHA plastics are versatile, adaptable and heat and UV-resistant. They have been FDA approved for food contact and are comparable in functionality to many products produced using petrochemicals. The formula can be customized to create many types of plastic resins for a multitude of purposes. The range of applications for products made with PH A is enormous and includes straws, cups, lids, bottles, produce bags, shopping bags, utensils, diaper linings, plates, wipes, toys, trash bags, seals, labels, glues and much more.
Danimer went public in late 2020 via Special Purpose Acquisition Company (SPAC). As a newly public company, Danimer’s stock price tends to be rather volatile, but we bought a small position for the long-term opportunities it offers. Dem and for PHA plastics is likely to accelerate over the next several years as corporations and the public become increasingly concerned about the environmental impact of wrappers from consumer- packaged goods. More government regulation of single- use plastics has pressured large corporations to adapt. Additionally, the Biden administration has a strong emphasis on climate change and sustainability which will provide a near- to-mid-term tailwind for Danimer. As the leading PHA innovator with over 125 patents across 20 countries, Danimer is well-positioned to benefit from these trends.”
