David Einhorn of Greenlight Capital was probably not happy to see the 31% decline in retailer Conn’s. Greenlight owns 3.5 million shares of the company, and is one of the largest shareholders of Conn’s. Greenlight, which has risen 4.8% year to date, bought a stake in the company while predicting 15-20% unit growth on the belief that the stock had been unfairly sold off.
In its recent quarter, Conn’s reported an impressive 11% growth in same store sales, improved margins and rising revenues, but admitted it had credit difficulties, which caused the stock to sell off. CEO Theodore Wright said, “Overall, our results were not satisfactory. Our credit operations ran into unexpected headwinds, resulting in portfolio performance deterioration.”