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

Women's 26757 Classic Flats Flats Women's Sapphire Blue Flats c5053d4
Women's 26757 Classic Flats Flats Women's Sapphire Blue Flats c5053d4 -

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.

Women's Vince Verrell Women's FLATS OffWhite FlatsWomen's Noris Navy Anne Klein FlatsWomen's Lacoste Women's Marice-BL Loafers Shoes FlatsWomen's Baretraps Nafila Women's FLATS Black Flats , Women's Baretraps Naydia Women's FLATS Black FlatsWomen's Chloe 37 Flats FlatsWomen's womens pikolinos shoes FlatsWomen's Tory Burch flats 12M FlatsWomen's Munro Wellesley Women's FLATS Blue Flats , Women's Tommy Hilfiger Vinn2 Flats, Black FlatsWomen's chaussures hogan cuir noir 36 Flats , Women's Zara Women Leather mules 5519/301/001 Flats , Women's escarpins jonak cuir python 38 Flats , Women's Seychelles Womens Mule- Pick SZ/Color. Flats , Women's Zara Women Braided slides 5607/301/040 Flats , Women's Aerosoles Womens Flat- Pick SZ/Color. FlatsWomen's Zara Women Beaded slides 1606/301/040 FlatsWomen's Zara Women Leather mules 5515/301/040 FlatsWomen's Eastland Womens Shoe- Pick SZ/Color. Flats , Women's crocs Womens - Pick SZ/Color. FlatsWomen's Ladies remonte Shoes Label D1632-W Flats , Women's SanShuffle Womens Slip-On- Choose SZ/Color. Flats , Women's Ladies Remonte Shoes R4010 Flats , Women's Ladies Remonte Shoes Style R4010 Flats , Women's Ladies Remonte Casual Shoes D1635 Flats , Women's Ladies Remonte Shoes Label R4010 Flats , Women's Ladies remonte Shoes D1632-W FlatsWomen's Ladies Rieker Flats L8360 FlatsWomen's ladies Rieker Shoes 40089-W Flats

More Stories

Skechers Women's D'Lites Plaza Snow Boot 48634 Black Size 9M , WOMENS TONY LAMA WING TIP LEATHER WESTERN COWBOY BOOTS SIZE 6 , Steve Madden Tan Iglou Suede Pom Pom Boots Faux Fur Line Moccasins Women's 7 M , Not Rated Aadila Woven Fringe Booties, Black , KEEN Dry Tall Brown Leather Winter Boots Womens 6.5 embossed Snow outdoor hikingARIAT FAT BABY Women's Distressed Leather Boot Round Toe - 14829 Size 6 1/2 BJ.Crew Brown Leather And Suede Knee High Heeled Boots, Size 7.5mBrown 1.5" Low Block Heel Combat Riding Winter Sexy Ankle Boot Size 5.5Ladies Shoes Genuine Leather Low Cuban Heels Zip Up Over Knee Boots US Size b951Art Company AMSTERDAM Wine Red Suede Snake Embossed Ankle Boots sz 38/7.5 , Cole Haan Women's Black Ankle Boots 8 B , Sam Edelman Wilson Suede Wedge Booties, Women's Size 9M, Dark GreyASOLO GORE TEX FSN 70 GTX HIKING BOOTS WON 8 ROMANIA MADE GOOD COND NOT MUCH USECharles David Dark Red Leather Riding BootsKnee High Womens Size 7$185 size 10 Via Spiga yovela Black Leather Ballet Flat Ankle Strap Womens Shoes , NEW Women's SAS Simplify Antique Wine Leather Casual Slip On Comfort ShoeBallerines neuves REPETTO en cuir écailles Noir 39 40 F , Jimmy Choo Coarse Gold Suede Flats Size 38 1/2 $495 , Prada Embellished Suede 10mm Mule MSRP: $875 Size 37WOMENS SAUCONY GRID IGNITION RUNNING SHOES - SIZE 7.5 M , New Balance Women's 711v3 Cross Trainer, Pigment/White, Size 5.0 , Skechers 22959 Sport Womens Dreamstep-Enliven Fashion Sneaker- Choose SZ/Color. , Madden M-Icekap Fashion Sneaker - Women's Size 11, Light Blue , NIKE Ladies HYPERVENOM Soccer Cleats Size US 8 CM 25Womens Nike 6.0 Retro Basketball White Blue Multi Color 366409-611 Gym Shoes 7.5 , NEW VANS CHECKERBOARD AUTHENTIC PINK & WHITE SHOES , adidas pureboost Running Shoes $140 Womens 11 New With Tags , Dansko Women's Black Slip On Loafer Professional Nurse Clogs Size 7.5 / 38 Shoes , Ariat Women's Cowboy Western Mules Clogs Slides Black leather black shoes sz 7 M , Freeshipping WMNS NIKE EPIC REACT FLYKNIT AQ0067-600 Size 8 for Women ,

Women's 26757 Classic Flats Flats Women's Sapphire Blue Flats c5053d4 -