Just having a look at PTEC (Playtech), capitalised at £699m. Brickington Trading Ltd. (Tedi Sagy) owns £291m (42%), whilst David Einhorn owns 8.9m shares worth £20.6m personally, with his hedge fund (Geenlight Capital) owning an identical amount. So the total holding is 6.2%.
But there are some things that worry me. Directors shareholdings are practically non-existent, totalling £56,300, for starters.
The company was floated in 2006, during which time revenues have increased at a rate of 35.6% pa. Operating profits have increased at a rate of 25.6% pa. Number of shares in issue has grown at a rate of about 4.5% pa - pre-placing. So far, so good (if perhaps a little too good). It has net cash of £56m, trades at a yield of 6.7%, and a PER of 6.6. The latter figure is a little suspicious considering it's such a rapidly-growing company. ROE is 28.9%, but it's a figure that's been declining every year since flotation.
The company recently had a placing, taking the number of shares in issue from 242.7m to 289.2m. That is to help its acquisition strategy. They seem to be undisciplined. Issuing shares when the price is cheap doesn't seem like a great strategy, especially in light of steadily declining returns on equity, and lack of insider holdings. Playtech does actually provide legitimate software, so we've got that at least.
Could be a "magical formula" company. I must say, though, that there's a fair element of doubt in my mind about what's going on here. I hope David Einhorn knows what he's doing.