In this article, we will take a look at billionaire David Einhorn’s 5 stock picks with huge upside potential. To read our analysis of David Einhorn’s investment strategy and Greenlight Capital’s previous performance, you can go to the Billionaire David Einhorn’s 10 Stock Picks with Huge Upside Potential.
5. The ODP Corporation (NYSE:ODP)
Greenlight Capital’s Stake Value: $74,502,252
Upside Potential as of December 1: 47.86%
Boca Raton, Florida-based The ODP Corporation (NYSE:ODP) is a leading provider of products and services through an integrated B2B distribution platform and omnichannel presence. Its network includes supply chain and distribution operations, sales professionals, a B2B digital procurement solution, online presence, and a network of Office Depot and OfficeMax retail stores.
On November 8, The ODP Corporation (NYSE:ODP) released its financial results for Q3 2023. Its revenue declined by 8% y-o-y to $2.0 billion while it generated a net income of $70 million.
The ODP Corporation (NYSE:ODP) has repurchased nearly 9 million shares for nearly $420 million since November 2022 under its previously announced $1.0 billion share repurchase program. The repurchase program is available through the end of 2025.
According to Insider Monkey data on 910 hedge funds, 34 hedge funds held shares of The ODP Corporation (NYSE:ODP), valued at $397 million, as of Q3 2023. Greenlight Capital held 1.6 million shares of the company, 7% more than the previous quarter and valued at $74.5 million. It accounted for 4.23% of the firm’s 13F portfolio, the highest on our list.
4. Coya Therapeutics, Inc. (NASDAQ:COYA)
Greenlight Capital’s Stake Value: $1,797,377
Upside Potential as of December 1: 87.86%
Based in Houston, Texas, Coya Therapeutics, Inc. (NASDAQ:COYA) is a clinical-stage biotechnology company focused on developing proprietary new therapies to enhance the function of regulatory T cells. It is currently developing multi-modality Treg therapies for neurodegenerative, autoimmune, and metabolic diseases.
Howard Berman, Ph.D., Chief Executive Officer of Coya Therapeutics, Inc. (NASDAQ:COYA), made the following comments in Q3 2023 release:
“We are aiming for a busy end to 2023 and productive 2024 with numerous anticipated catalysts and milestones driving the value of the business. Of importance, we plan to release top-line double-blind, placebo-controlled Phase 2 data of LD IL-2 in AD, expected by summer 2024. We also intend to submit an IND application for a randomized double-blind placebo-controlled Phase 2 trial in ALS in 1H 2024. Further, we anticipate publishing multiple peer reviewed publications during this time related to blood biomarker findings in the prior LD IL-2/CTLA4Ig proof of concept clinical trial, as well as clinical data findings for LD IL-2 in AD”.
3. NET Power Inc. (NYSE:NPWR)
Greenlight Capital’s Stake Value: $42,840,361
Upside Potential as of December 1: 117.98%
NET Power Inc. (NYSE:NPWR) is a clean energy technology company developing its proprietary NET Power Cycle, which transforms natural gas into low-cost, clean and reliable power. It plans to deploy its utility-scale plants across the world by partnering with local communities, power producers, energy producers, technology providers and other stakeholders.
NET Power Inc. (NYSE:NPWR) went public through a merger with Rice Acquisition Corp. II (NYSE:RONI), a publicly traded special purpose acquisition company, in June 2023. The transaction implied an enterprise value of nearly $1.5 billion for the combined company and provided more than $675 million in gross proceeds.
NET Power Inc. (NYSE:NPWR) is currently working on its first Texas-based project located near Midland-Odessa, Project Permian, and expects to achieve initial power generation sometime between the second half of 2027 and first half of 2028. It had $645 million of cash and short-term investments and no debt, at the end of Q3 2023.
NET Power Inc. (NYSE:NPWR) ranks 3rd on our list of billionaire David Einhorn’s 10 stock picks with huge upside potential. The shares of the company were owned by 19 hedge funds with a total value of $133 million. Greenlight Capital owned 2.9 million shares of the company, valued at $43 million. The stock accounted for 2.43% weightage in the firm’s 13F portfolio.
2. Danimer Scientific, Inc. (NYSE:DNMR)
Greenlight Capital’s Stake Value: $5,387,568
Upside Potential as of December 1: 160.87%
Founded in 2004, Bainbridge, Georgia-based, Danimer Scientific, Inc. (NYSE:DNMR) is a producer of biopolymers manufacturing PHA bioplastics from renewable, natural resources. It boasts 100% biodegradable and compostable plastics that equal or exceed petroleum-based plastic commodities for price and performance.
On November 15, Danimer Scientific, Inc. (NYSE:DNMR) released its financial results for the third quarter of 2023. Its revenues increased by 5% y-o-y to $11 million, while its net loss shrunk by 58% y-oy to $40 million. At -$0.39, its normalized EPS missed consensus estimates by $0.04.
As of Q3 2023, 11 of the 910 hedge funds tracked by Insider Monkey were long Danimer Scientific, Inc. (NYSE:DNMR) and held shares worth $13 million. David Einhorn’s Greenlight Capital was its largest hedge fund shareholder with ownership of 2.6 million shares valued at $5.4 million. The stock accounted for 0.30% of the firm’s portfolio.
1. Gain Therapeutics, Inc. (NASDAQ:GANX)
Greenlight Capital’s Stake Value: $1,929,985
Upside Potential as of December 1: 309.09%
Bethesda, Maryland-based Gain Therapeutics, Inc. (NASDAQ:GANX) is a biotechnology company focused on developing new medicines for protein misfolding diseases. Its supercomputer-driven target-based drug discovery platform, “SEE-Tx™,” is a novel approach that uses structural and computational biology to discover previously unidentified allosteric binding sites with high potential for druggability.
On December 1, Gain Therapeutics, Inc. (NASDAQ:GANX) announced the publication of preclinical data identifying a novel class of small molecule allosteric regulators that demonstrate therapeutic potential for galactosidase beta 1 (GLB1)-related lysosomal storage disorders (LSDs), including GM1 gangliosidosis.
Gain Therapeutics, Inc. (NASDAQ:GANX) is also investigating a Parkinson’s disease candidate in a Phase I trial with a completion date expected in H1 2024.
As of Q3 2023, Gain Therapeutics, Inc. (NASDAQ:GANX) was ranked highest on our list of billionaire David Einhorn’s 10 stock picks with huge upside potential. The stock was held by 4 hedge funds with the total shares held by hedge funds valued at $2.3 million. David Einhorn’s Greenlight Capital was its largest hedge fund shareholder with ownership of 0.59 million shares valued at $1.9 million. The stock accounted for 0.10% of the firm’s portfolio.
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