This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Three Small-Cap Picks From Top Hedge Fund

BOSTON ( TheStreet) -- The hedge fund Greenlight Capital, run by David Einhorn, has returned 22% annually, on average, since its 1996 inception, outperforming U.S. stock benchmarks by wide margins. Here are three of Einhorn's favorite small-cap stocks.

3. Einstein Noah Restaurant Group (BAGL) owns and franchises bagel shops. During the past three years, it has doubled earnings per share annually, on average. Greenlight Capital owns about 11 million shares, or 65% of the float.

Quarter: First-quarter profit tumbled 66% to $620,000, or 3 cents, as revenue inched up to $101 million. The operating margin widened from 3.1% to 4.4%. Einstein holds $11 million of cash and $96 million of debt, equal to a debt-to-equity ratio of 1.3.

Stock: Einstein Noah has advanced 71% during the past year, beating U.S. stock indices. It trades at a price-to-projected-earnings ratio of 14 and a price-to-cash-flow ratio of 5.9, 59% and 54% discounts to peer averages. It's also cheap based on sales.

Consensus: Of analysts covering Einstein Noah, five, or 63%, advise purchasing its shares and three recommend holding them. D.A. Davidson offers a price target of $17, leaving a potential return of 29%. Jefferies (JEF) expects the stock to hit $15.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAGL $20.23 -0.05%
NVR $1,328.66 -0.70%
URS $52.73 -2.71%
AAPL $124.43 -1.54%
FB $82.22 -1.18%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs