Greenlight Capital founder David Einhorn (Trades, Portfolio) has raised his bet on one of his holdings, Civeo Corp (CVEO) by 73.2%, according to GuruFocus Real Time Picks.
Einhorn purchased 4,504,529 additional shares in the company, reflecting a 73.2% increase from the 6,154,400 shares he bought in the second quarter when he started the position. Shares then cost $24 each on average and have since dropped 49% to close at $12.26
Civeo is a provider of workplace accommodations particularly in the Canadian oil sands and Australian natural resource regions, providing workers with housing. It came into existence as a result of a spin-off from Oil States International Inc. (OIS) on May 30.
Accounting for the dramatic price drop in September was the company's announcement on Sept. 29 that after a review of structural alternatives it and decided to continue as a corporation and redomicile to Canada. It had considered converting to a real estate investment trust (REIT), among other things. The company already generates 90% of its earnings outside the U.S. and said that REIT conversion would be too costly.
Einhorn, in possession of a 9.9% stake in the company, called for an ouster of the CEO, Bradley Dodson, who he said had "lost the support and confidence of the Issuer's shareholders," according to a regulatory filing dated Oct. 9. Einhorn also said he was instrumental in the push to convert to a real estate company to increase dividends. The filing reveals that he bought shares both before and after the price drop.
In the second quarter, the company reported results in-line with guidance. Civeo generated revenues of $227.1 million, from $243 million a year ago. Net income was $13.9 million, or $.013 per diluted share, from $33 million or $0.31 per diluted share a year ago. The 2014 results included transaction and one-time costs and expenses of $21.2 million pre-tax, or $0.17 per diluted share after-tax.
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This article first appeared on GuruFocus.