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


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.

Tommy Hilfiger Women's Classic Square Toe Boots Size 8M , BCBGeneration Women's Kimba Bootie Black Size 7.5 njNn$119 BCBG BCBGeneration Womens BG-Indie Knee High Wedge Boot Shoe, Oak, US 9.5 , CARLOS by Carlos Santana FAWN Brown Leather Tall Knee Flat Riding Boots Size 8 , KENNETH COLE REACTION NWT Pull Ashore Black Fringe Zipper Booties Shoes sz 8.5$189 BCBG BCBGeneration Womens BG-Bekki Layered Cuff Bootie Shoe,Black,US 6 , $139 BCBG BCBGeneration Womens BG-Joesana Platform Suede Boot Shoe,Black,US 5.5 , La Victoire Black Leather Over Knee Boots Women's Size 6 Medium , Sam Edelman Louie Gray Suede Ankle Boots 8 Fringed Stacked Heel Western StyleVince Camuto Parka Suede Slouchy Boot Padded Lining Sugar Plum 6.5M NEW 431-823Cat By Caterpillar Corrine Fireweed Womens Riding Boots 10 M,BCBG Max Azria Womens Lexy Moc Toe Knee High Boot Shoes, Dark Caramel, US 6.5 , Women BCBGirls Chill Black Stretch Patent Boots Heel Size 6.5 M , New Gianni Bini Brown Suede Fringe Zip Studded Ankle Boot Size 7.5WOMENS JUSTIN L3775 RED OILED LEATHER ROPER COWBOY WESTERN BOOTS SZ 5 B 5BNew Blackstone Women's Camel Studded Chukka Boots/Booties Suede Size 40-10USNew 1. State Salvyn Pink Leather Slide Sandal Ruffle Platform Size 7.5 , Minnetonka Women's Ankle Hi Tramper Boot$199 BCBG Max Azria Women Lexy Moc Toe Knee High Boot Shoe, Dark Caramel, US 10CAPE ROBBIN Plaid & Rubber DUCK BOOTS Sophisticate Style Shoes Womens Sz 11 �b2 , New Womens Jennifer Lopez Cognac Block Heel Knee High Boots Size 7.5 MSRP $100$159 BCBG BCBGeneration Women BG-Galaxi Monk Strap Combat Boot Shoe,Onyx,US 7.5Clarks Muckers Women's 7M Waterproof Red Leather Bungee Shoes Rain Snow Slip on , $80 NEW Tundra Gerri Winter Suede and Wool Chestnut Bows Boots Size 10.0 MCole Haan Womens Shoes Size 6.5 Black Textured Suede Leather Ankle Boots , NEW! Black/Turquoise Blu Suede BEARPAW Boots Sheepskin Hiking Snow/Ski Womens 7LifeStride Women's Marvel Grey Motorcycle Boots 5MDAWGS~NIB~ 13" Tall ~Chocolate Microfiber ~Boots Sz 9 , $298 BCBG MAXAZRIA Women MA-Dorota Tall Zipper Boot Shoe, Black, US 6.5

More Stories

Journee Collection Sun Women Round Toe Synthetic Bootie SUN-Grey Size 9MVince Camuto Soreen Women's Boots Blk , Chinese Laundry Women's Fixer Winter Boot, Grey Suedette, 7.5 M US , Homage Boot Wraps Solid Blue Women's Size 7 4539 , Black Silver Gold SHIMMER RHINESTONE ACCENT PLATFORM WEDGES HEELS FAUX LEATHERTommy Hilfiger Women's Size 6 Boots Tan Leather Side Zip BrazilMinnetonka Womens Lacy Suede Fringe Bootie - Burgundy Size US 6 |Aquatalia by Marvin K 'Marvel' Brown Weatherproof Suede Boots sz: US 10Sexy Pleaser 4" Chunky Heel Platform Stretch Red Patent GoGo Knee Boots 6-14 , Material Girl Womens Capri Almond Toe Knee High Fashion Boots, Black, Size 11.0 , Clarks Allura Mystic Black Womens Shoes Size 6 M Boots MSRP $140 , $365 size 8 Stuart Weitzman Exflat Patent Leather Flats Slip on Open Toe shoesVince Warner Casual Slip On Shoes - Women's Size 9 M, Black (REPAIR) , JOAN OLOFF Gorgeous Suede Nude Heels Size 10.5 NIB , Birkenstock 18FW myra narrow fit RFSO8G815N2 shoes navy , Sam Edelman Women's Francis Ballet Flat Primrose Metallic Leather 9.5 M USAuthentic Bottega Veneta Nude Suede Oxford Flat Shoes 37.5Adrianna Papell Women's Paloma Slip-On LoaferC9 by Champion Women's Black Loren Faux Fur Lined Bungee Jogger Boot Size 8 , Womens Leather Flat Casual Shoes Loafer Slip on Mules Hot Slipper Fashion Buckle , Versace 19.69 E08 SPRAY CELESTE DOLLARO ballerina shoes Women's Light Blue US , BNIB NEW PUMA SMASH PERF SNEAKERS BLACK & GOLD UK5 US7-7.5 EU38Reebok Womens Hexaffect Run 3.0 MTM Running Shoe- Pick SZ/Color.trainer lightweight black leather Cole Haan oxford Femme Misha Grand Sport sz 9 , VINTAGE WOMEN'S 80'S NIKE WHITE LEATHER LO-TOP SNEAKERS SIZE US 5 MADE REP OF KOConverse Chuck Taylor All Star Dainty Suede Leather Shearling Black Sz 9 BootsNIKE WOMENS RARE 2002 NIKE LUX GREEN/WHITE 6.5M ATHLETIC SHOES XLNT. COND.Women's muk luks womens boots Grey Boots , Womens Suede Round Toe High Block Heels Fashion Pull On Office Work Shoes SboxWOMENS SIZE 7.5 SKECHERS SLIP ON SHOES