The Story. Shareholders of Conn's, Inc recently loss 30 percent, following the Dallas based company's earnings released on September 2014 that missed analysts' consensus estimates of 75 cents per share. A fundamental metric differentiating a profitable business from a "run of the mills" company, earning is not the problem for Conn's business; rather the market's exuberant expectations, when unmet, can cause an inefficiently priced situation.

While the general market seems pessimistic about Conn's prospect, Greenlight Capital Advisors, a fund with an asset under management of $7.1 billion, which returns 13.9 percent compounding gains for the past five years, thinks otherwise.

Greenlight is a reputable fund with a good track record of performance. Daniel Roitman joined Greenlight as a Chief Operating Officer since 2003 after he left his previous employment with Goldman Sachs as a Vice President.

Source: Greenlight Capital

In a filing with the Security Exchange Commission on June 30, Greenlight Capital, founded by David Einhorn reveals 3.5 million shares stake or 9.6 percent of Conn's shares outstanding; the $177 million comprises roughly 2.4 percent of the fund's assets.

"Mr. Market," an allegorical description of the fickle nature of the stock market by the Father of Value Investing, Benjamin Graham quoted Conn's share at a significant bargain price due to an unexpected increased in long-term credit default, defined as 60 plus days of failing to post payment, of Conn's customers.

Read more on this report at Retail Investor 360.