I think there are two interesting questions about David Einhorn’s least favorite deli: Why was it worth so much on Thursday, and why was it worth so much on Friday? Those strike me as very different questions.
So. On Thursday, Einhorn’s Greenlight Capital published a quarterly investor letter that mentioned Hometown International Inc., which is a deli, as an example of the insanity of the current stock market:
Someone pointed us to Hometown International (HWIN), which owns a single deli in rural New Jersey. The deli had $21,772 in sales in 2019 and only $13,976 in 2020, as it was closed due to COVID from March to September. HWIN reached a market cap of $113 million on February 8. The largest shareholder is also the CEO/CFO/Treasurer and a Director, who also happens to be the wrestling coach of the high school next door to the deli. The pastrami must be amazing. Small investors who get sucked into these…