September, 2018 (Volume: 35 / Issue: 9)
In Focus

CCILU Womens Horizon Horizon US Link W 8 Water Shoe Grey Size 8 M US e3cd140
CCILU Womens Horizon Horizon US Link W 8 Water Shoe Grey Size 8 M US e3cd140 -

Einhorn ... blasting frackers

Greenlight’s Einhorn slams oil frackers for burning cash

The hedge fund manager, who often unveils short-bets against companies at these events, cited Pioneer Natural Resources as a particular offender

BILLIONAIRE hedge fund manager David Einhorn, who often moves a stock simply by speaking its name, kicked off the year’s most prominent investment conference by laying out a case against oil frackers, arguing these companies drill “lots and lots of holes” and burn through plenty of cash.

Einhorn, who often unveils short-bets against companies at these events, cited Pioneer Natural Resources as a particular offender at the 20th annual Sohn Investment Conference. “We call it the motherfracker,” he said, prompting investors to kick the share price down as much as 5.3 per cent. The company should trade closer to $78 a share, he said, not the $166.50 the stock is trading at now.

“Pioneer is burning cash and its reserves are not growing,” said Einhorn, who runs $11 billion Greenlight Capital, adding “Pioneer ought to stop touting estimates based on stale pricing.” The company is losing 20 cents of present value for every dollar it invests.

Einhorn also mentioned EOG Resources, which he called the “father fracker,” Concho Resources, Whiting Petroleum and Continental Resources.

Last year Einhorn unveiled a short bet against athenahealth at a previous Sohn conference and was the first to underscore problems at Lehman Brothers months before the investment bank filed for bankruptcy.

Einhorn was one of the few investors at the conference who unveiled a short bet, as most other investors put forth ideas that investors can buy and hold.

Leon Cooperman and David Tepper talked about markets and sought to soothe investors fearful that the long-running equities bull market might be over.

Tepper, founder of Appaloosa Management, shocked markets a year ago by warning that investors should not be too long in the stock market. He said that investors should not be “too long bonds, not too short stocks” and warned that investors should be careful with commodity investments.

Investors at this conference, even the billionaires, are told to keep it short and talk no more than 15 minutes. Tepper who didn’t use all of his time joked that he would sell some of his unused minutes to Bill Ackman, who is known for speaking at a breakneck pace to race through dozens and dozen of slides.

Cooperman, who runs Omega Advisors and has long been saying the stock market would continue to climb, stuck by his bullish outlook, saying the stock market can still end higher this year. “If there is a bubble out there, it is not in the stock market,” Cooperman said, adding it may be in the fixed income market.

He pitched a handful of US-based companies including Google, Dow Chemical, Priceline Group and drugmaker Actavis.
Picking up on the pharmaceutical industry theme, Larry Robbins, who runs Glenview Capital Management, touted AbbVie, saying the stock price could double. The company’s price is relatively cheap and management is disciplined, Robbins said.

Even though AbbVie called off a planned $55 billion takeover of Shire late last year, industry analysts are still holding out forecasts that the breakneck pace of mergers and acquisitions in the pharmaceutical industry will continue. The company could be taken over or it could be the one taking over someone else, Robbins said.

Ackman, founder and chief executive of Pershing Square Capital Management LP, talked about his most recent addition to the portfolio: Canadian pharmaceutical company Valeant Pharmaceuticals International Inc VRX.TO, which he called “massively undervalued.” He said companies that buy up others at a steady pace are often misunderstood and said Valeant, which announced plans to buy Salix earlier this year, is an early stage Berkshire Hathaway, referring to Warren Buffett’s company.

Keith Meister, a former Carl Icahn lieutenant who now runs $8 billion Corvex Management, focused on fast food restaurant chain Yum Brands, saying his firm is one of the five largest investors and that the company is Corvex’s second-biggest investment ever. Daniel Loeb’s Third Point said it had taken a significant stake in Yum.

Kelsi Dagger Womens Royce Slip On Mesh Suede Sneaker Black 8.5 M USSkechers Sport Premium Women's Black Sneaker 7.5MSaucony Spitfire Women's Green/Citron Track Spike Racing Shoe 7M , Dakota Women's Quad Lite ATCP Black/Pink Athletic Shoes 8 2EG.H Bass & Co. Surfside Womens Brown Water Sneaker 11M , Style & Co. Dashh Women's Black/Black Sneaker 10MInov-8 F-Lite 195 Women's White/Lime Running Shoe 7MNike Women's Blue Lagoon/Blck/Whte Vortex II FG Soccer Cleat 9M , Nike WomensTeal/Lime Air Zoom Fly 2 10.5M , Puma EvoPower 4.2 Firm Ground Blck/Whte/Hawaiian Ocean Big Kid Jr. Soccer 6M , Puma Evospeed 5.3 TT Jr Kid Bright Plasma/White Peacoat 4.5MSkazz S33 Women's Mesh Black/Red Dance Shoes 18M (Men's 16M/Women's 13M) , PUMA Women's Trinomic R698 NC Burnt Olive Sneaker 9.5M , Skechers Performance Women's Go Vulc Vulcanized Chocolate Fashion Sneaker 5MDC Women's Trase HI TX Turquoise/Citrus Skateboard Shoe 7MInov-8 F-Lite Women's 195 Black/Teal/Purple Sneaker 11M , Reebok Women's Transfusion 3.0MTBlack/Ornage/Magenta Training Sneaker 11M , Converse John Varvatos Unisex All Star OX Pigment Dark Navy men's 3/Women's 5Salomon X-Ultra J Unisex Kids Topaz Blue/Peacock Blue/Hot Pink Running Shoe 5M , New Balance Women's Wx623 White Cross Training Shoe 10MSkechers Sport Women's Synergy Elite Status White Cross Training Sneaker 11M , U.S. Polo Assn. Juno Fashion Sneaker Black/Exotic Animal Print 6.5M , Nike Women's T-Lite XI White/Mtllc Slvr/Pr Pltnm/Blk Training Shoe 7M , Rockport Truwalk Zero Women's Black Touring T-Toe Oxford 8W , Skechers Interstellar-Intergalactic Women's Natural Fashion Sneaker 11M , DC Women's Trase TX SE Beige/Teal Sneaker 10.5M , Style & Co. Dashh Women's Black Sneaker 9.5M , Converse CT Ox Womens Blush Multi Trainers 7.5MNew Balance W860V4 Women's Silver/Pink Sneaker 10.5W

More Stories

Calvin Klein Womens Booties 7M Ankle Boots Brown Suede 3.5" Heels Ruched TieHush Puppies Black Leather Lined Winter Fashion Boots Size 7.5 M US Excellent , j.crew LANGSTON BOOTS 7 (orig price $248)Women's NWOB Carlos Santana Crushed Velvet Fabric Boots 6M Blue Reza Zipper , Qupid Ankle Boot Faux Vegan Suede Warm Taupe Beige Black Wenona - 03 , GUESS Black Genuine Leather Booties High Heel Boots Size 6Soda Women's Round Toe Faux Suede Stacked Heel Western Ankle Bootie Black 6SONOMA UPPER COW SUEDE WOMEN SHOES -BLACK ANKLE HEEL 10/MDONALD J. PLINER "Bolade" Black Suede Riding Boot- Women's size 7.5MUnisa Womens dedrii Closed Toe Knee High Fashion Boots, Black, Size 10.0 BvJUZOE+LUCA PIERRE Brown Suede Designer Comfort Casual Knee High Boots 8.5Ariat 4LR FatBaby Camo Camoflouge Green leather suede, Western boots size 6 1/2Ridgy Velvet Pointy Toe Curved Cylindrical Heeled Booties , Anne Klein Womens Noris Leather Square Toe Loafers, Black, Size 6.5JOJO Women's Alana Casual Leather Slip On Shoes Brown Croc Print Size 40Clarks Size 7 Black Leather Slip On New Womens ShoesKEEN Women's Targhee II Mid Hiking Boot US 5.5 Women Brown WaterproofSTEVEN BY STEVE MADDEN BLUE RHINESTONE FLATS SHOES SIZE 10 M - NEW , Womens Apex Shoes Emmy Black Monk Strap Medium Width Size Comfort $130 Retail , EEUC Tieks Ballet Flats in Pop Pink, 8JCrew $228 Leather Oxfords with Fringe 10.5 Warm Sepia Brown Loafers f4979 , Paul Mayer Bingo Flats Galaxy Black Women's US Size 7 or 8 , Cobb Hill Rockport Women's Paulette Flat, Grey, 10 W US , Skechers GoGa Mat Navy Blue Womens 8.5 M Running Shoes Sneaker 13732 Casual WalkNew VANS Womens SUEDE Authentic CREAM WHITE VN0A38EMU5L US W 5.5-10.5 TAKSE , women's shoes 2 STAR 10 () sneakers green brown suede textile AP710-C , Women's Vans Shooting Stars Slip-On Canvas Skate Shoe sz 9 Men's sz 7.5Women's Black CYDWOQ Oxfords 8.5 39.5 Flats , Women's Donald Pliner Leanne Suede Loafer FlatsCode West Women's Brown Cowboy Western Loafers Ankle Boots Size 6.5 M ,

CCILU Womens Horizon Horizon US Link W 8 Water Shoe Grey Size 8 M US e3cd140 -

Athletic Shoes