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.

$89 size 10 Bare Traps Rhapsody Mushroom Fashion Ankle Heel Boots Womens ShoesCougar 'Marni' Brown Suede Mid Calf Side Zip Winter Boots Women's 11 M , Nine West Sharano Leather Knee High Boots Size 9 M , BOTTES BOTTINES BATA TAILLE 40 CHAUSSURE CUIR BOOTS/BOTAS/STIVALILadies 10M Cougar MOONWALKER Boots Waterproof Pink/Purple Cougar Sport Boots EUC , QUPID black colorblock vegan suede open toe booties sz 8 , SO "Lasalle tan" women all man made wedge high boots size 7.5Tek Gear Women’s Tall Puff Winter Boots Melon 9 As-IsReport Signature Womens NADYA Almond Toe Over Knee Platform, Grey, Size 5.5 M4Bv , LADIES ODEON LB8485 GREY ANKLE BOOTS WOMENS UK4 / EU37 , Journee Collection Womens Rimi Closed Toe Ankle Fashion Boots, Pink, Size 6.0 ADKelly & Katie Womens Balantina Round Toe Ankle Chelsea Boots Black Size 8.0 Pj , focus-35 Fashion Over Knee Casual Party 4 Inch High Heel Women Boots Brown 5.5Capella67 Fashion Over the Knee Zipper Casual Med Heel Women Winter Boots 7.5$79 size 7 American Rag Faylln Black Mid Calf Riding Boots Womens Shoes NEW , Kelly & Katie Womens Balantina Round Toe Ankle Chelsea Boots, Black, Size 8.0 P1NWOB MADELINE WOMEN'S ANKLE BOOT... BLACK BUCKLE ANKLE BOOT CUFFED SIZE 6 , Women's Merona Brown Ankle Short Boots Square Toe Side Zip 7.5 CocoBrinley Co Womens Faux Suede Wrap Strap Tasseled Booties, Black, Size 8.5 bm7Q , Madden Girl Woven Ankle Boots Size 6 GreyBROWN LEATHER BOOTS "NEUTRALIZER" WOMENS SIZE (6.5) *WINTERCATO WOMENS ANKLE SNAKE SKIN Crocs Alligator Sexy High Heels BOOTS SIZE 8.5 ❤Earth Origins Women's Danielle Suede Faux Fur Boots in Grey Size 6.5Capella67 Fashion Over the Knee Zipper Casual Med Heel Women Winter Boots 6.5Easy Spirit Womens NIVEN Almond Toe Ankle Fashion Boots, Brown, Size 11.0 aFqx , Brinley Co Women's Echo Ankle Boot, Brown, Size 6.5 VUY6Calza Donna Naturale Stance Spirit Fox Everyday 200 Needle Woman NaturalWomens suede camel brown boots 6.5 sheep skin fleece lined pull on low Covesgg , Brown Boots size 5 1/2 M ,

More Stories

Style & Co. Womens mabbel WC Closed Toe Mid-Calf Riding Boots , Designer Black Round Toe Buckle Detail Back Zip Knee High Boots Size 8 , "CARDY" CLASSIC CARDY SHORT BOOTS ~ GRAY , Bernie Mev. Black Patent Rubber Cap Toe Bootie Boot Shoes 38.5 US 7 , Vero Cuoio leather boots size 38.5 Made in Italy Cream color , Easy Street Women's Clear Booties - Ankle Boots Brown Size 7 MMarc Fisher Green Suede Vandy Block Heel Ankle Boots 7 New , White Mountain Womens NWB Garnet Brown Smooth Boots Shoes 11 MED NEW , NIB Louise et Cie Stacie Gray Suede 4" Stacked Heel Ankle Boots 9.5 M (39.5) , SPERRY Top Sider Bahama Yellow Jersey Sequin Slip On Shoes US 8.5 NWBPelle Moda Flex Black Burnish Calf Leather Riding Boots Flat 6 M Below the KneeNWOB Tory Burch Veranda Canvas & Leather Flat Slipon Espadrille in TanROSES ROSEBUDS Clogs Papillio Birkenstock Sz 38 US 7 Germany FloralAlegria Paloma Multi - Womens 41- Size 9.5-10 WIDEMunro American Ramie Black Suede Penny Loafers Casual Flats Womens Size 8.5 W* , $865 NEW Manolo Blahnik PELOSUS PELOSUSFE Flat Slides Feather Shoes 36 37 38 39 , NEW CLARKS WOMENS MARGOT LOAFER - WOMENS ORIGINALS SHOES - BLACK SUEDE , Camper 20614-083 Womens Peu Senda 20614 Flat /- Choose SZ/Color.NEW AGL shoes Quilted Cap Toe Ballet Flat /US 8 Black/Pewter ATTILIO GIUSTIBrooks Womens Pureflow Running Shoes 4 D14 , Jessica Simpson Monetah Bow Tie Flats, Light Gold, 9.5 US / 39.5 EU , at211 DANIELE ANCARANI shoes blue suede women ballet flatsConverse Women's Madison Leather Low Top Sneaker - Choose SZ/Color , Adidas Womens Size 6 Stellasport Rainbow Training Runner Blue Shoes Sneakers , Saucony Grid Omni Walker Athletic Shoe - Women's Size 8N, White/SilverReebok Women's Royal Aspire 2 Fashion White/Frostbite Metallic Size 10.0 LS4d , NIKE Ladies HYPERVENOM VOLT Soccer Cleats Size US 9Women's mid calf boots Boots , Dr. Scholl's Women's Palm Slide Black Snake Print Microfiber Slides , MCM VISETOS COLLECTION WOMENS LEATHER SNEAKERS NEW SIZE 4.5-5 () ,