(Adds quotes, details on Einhorn's views on company)
NEW YORK May 5 Hedge fund manager David Einhorn
said on Monday that athenahealth Inc is one of the
companies in which his firm, Greenlight Capital, has taken a
Einhorn, speaking at the Sohn Investment Conference, said
shares of the company, a provider of software for healthcare
records and billing, could fall 80 percent from their recent
peak. In the last year, the stock has surged 46 percent.
"It isn't positioned to succeed the way the bulls hope,"
said Einhorn, who is widely followed by other investors. "The
stock is simply at the wrong price."
He said that athena will not become the preferred supplier
of software for hospitals.
In his presentation, Einhorn worked step-by-step through a
recent Morgan Stanley report on athenahealth, pointing to
assumption after assumption that he called overly optimistic.
Athena "has much farther to fall," he said.
Einhorn interspersed his talk with video clips of
athenahealth's chief executive, Jonathan Bush.
"Jonathan Bush likes to compare athena to Amazon. ... When a
store adds a website, it does not magically become a cloud-based
retailer," Einhorn said. "His use of the word cloud is somewhat
Shares of athenahealth closed at $126.78 on Monday. The
stock was down 12 percent in after-hours trading.
The Sohn Investment Conference, an annual event that helps
raise money to fight pediatric cancer, is where Einhorn unveiled
his short bet against Lehman Brothers in 2008 before Lehman
Einhorn on Monday said he would not name other stocks that
his hedge fund is shorting.
Greenlight Capital, which manages $10 billion, gained 4.3
percent in April.
(Reporting by Svea Herbst-Bayliss and Luciana Lopez; Additional
reporting by Rodrigo Campos and Sam Forgione; Editing by Leslie