David Einhorn Sees Broken Markets in a New Jersey Deli Valued at $105 Million

(Bloomberg) — Hedge fund legend David Einhorn presented his choice for the new icon of irrational exuberance — Hometown International Inc.

If you haven’t heard of the company, that’s probably because it operates a single store, Your Hometown Deli, in rural New Jersey. “Your Hometown Deli is a delicatessen concept that will focus on providing high-quality food products not available in local supermarkets or take-out restaurants,” the company said in its latest annual report.

In Greenlight Capital’s most recent investor letter, Einhorn points out the stock reached a market capitalization of $113 million. The shares gained 200% in the past year. The deli rang up less than $14,000 in sales in 2020.

Just 25,486 shares worth $352,363 have traded year-to-date, according to data compiled by Bloomberg.

Greenlight brought attention to the stock as part of a broader discussion in the letter about the current state of regulation in U.S. financial markets.

“But for the most part, there is no cop on the beat,” Greenlight’s letter said. “It’s as if there are no financial fraud prosecutors; companies and managements that are emboldened enough to engage in malfeasance have little to fear.”

A call for comment placed to the phone number listed on Hometown International’s annual report wasn’t answered.

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