Name: There’s a single New Jersey deli doing $35,000 in sales valued at $100 million in the stock market
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There’s a single New Jersey deli doing $35,000 in sales valued at $100 million in the stock market

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In this articleHedge fund manager David Einhorn warned of dangers for retail investors that he sees in the market, and one of his main examples was a tiny New Jersey deli with a market capitalization of more than $100 million.The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for , which has an eye-popping market value despite totaling $35,748 in sales in the last two years combined, according to securities filings."Someone pointed us to Hometown International (HWIN), which owns a single deli in rural New Jersey ... 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 to the deli. The pastrami must be amazing," Einhorn said in .Hometown, which appears to have begun trading in 2019, according to FactSet, has shares that trade over the counter and rarely has more than a few hundred shares change hands per day. Often, there are no trades logged in an entire trading day.Still, the company's market cap is just over $100 million, according to FactSet.Hometown did not immediately return a request seeking comment made to the phone number listed in the company's securities filings. A manager was not available to comment at the deli's phone number.According to the company's latest 10-K filing, the company's single location was closed from March 23 to September 8 of last year because of the coronavirus pandemic. During that time, the company's stock price rose to $9.25 per share from $3.25 per share. It last traded at just under $14 per share.The company sold 2.5 million shares last year and has about 60 total shareholders, according a filing.Einhorn takes aim at Chamath Palihapitiya, Elon Musk for role in GME squeezeHometown reported more than $600,000 in expenses last year, up from about $154,000 in 2019. The company also reported a net cash gain of $2.2 million from financing activities, such as selling stock, in 2020.Einhorn's highlighting of Hometown comes as , and high-profile investors have publicly fretted about the boom in certain types of stocks over the past year.As a new wave of retail investors joined the market in recent months, special purpose acquisition companies have launched at a record pace and some stocks, like GameStop and Discovery, have seen wild swings after being bid up by traders on Reddit or hedge funds.The over-the-counter stock market, often referred to as pink sheets and penny stocks, have historically been a risky place for investors. Shares of penny stocks have also soared in recent months.Enjoyed this article?For exclusive stock picks, investment ideas and CNBC global livestreamSign up for&nbsp;CNBC ProStart your&nbsp;

In this articleHedge fund manager David Einhorn warned of dangers for retail investors that he sees in the market, and one of his main examples was a tiny New Jersey deli with a market capitalization of more than $100 million.The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for , which has an eye-popping market value despite totaling $35,748 in sales in the last two years combined, according to securities filings."Someone pointed us to Hometown International (HWIN), which owns a single deli in rural New Jersey ... HWIN reached a market cap of $113 million on February...

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There’s a single New Jersey deli doing $35,000 in sales valued at $100 million in the stock market

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