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

CLARKS Women's Everlay Heidi Slip-On Loafer CLARKS - Choose Women's Everlay SZ/Color 10b3eac
CLARKS Women's Everlay Heidi Slip-On Loafer CLARKS - Choose Women's Everlay SZ/Color 10b3eac -

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.

Cobb Hill Women's Gabby-CH, - Choose SZ/Color , Rockport Women's Total Motion Trixie Perf Shootie Pump - Choose SZ/Color , Cole Haan Women's TALI Bow Espadrille Loafer - Choose SZ/ColorAerosoles Women's Pantheon Fashion Sneaker - Choose SZ/Color , Cole Haan Women's Grant Escape Driving Loafer - Choose SZ/ColorMerrell Women's Ashland Tie Shoe - Choose SZ/Color , FRYE Women's Melanie Perf Slip On Sneaker, - Choose SZ/ColorMerrell Women's Encore Breeze 3 Slip-On Shoe - Choose SZ/Color , FRYE Women's Melanie Perf Mule Sneaker, - Choose SZ/Color , FitFlop Women's Superbendy Ballerinas Ballet FlatNaturalizer Women's Natasha Penny Loafer - Choose SZ/ColorKenneth Cole New York Women's Aisley Pointed Toe Flat Slip on Mule , PRADA BLACK SLIP ON SUEDE LEATHER LOAFER SNEAKERS SIZE 38 , Taos Footwear Women's Studio Mary JaneFendi Gray Fox Fur Clogs Funky Rave 90s Sz 7.5 Avant Garde Hipster , Aquatalia Women's Kate Diamond Suede Ballet Flat , NIB TORY BURCH BLOSSOM PORT WINE FLOWERS LEATHER GOLD REVA BALLET FLATS 7 , Tory Burch REva Ballet Flats Size 10Splendid Women's Babette Loafer Flat - Choose SZ/ColorINC International Concepts Womens Caleyy Closed Toe Espadrille Flats , NIB TORY BURCH NAVY PATENT LEATHER TRUDY BOW GOLD REVA SMOKING FLATS 9.5 $250Camper Women's Casi Tiptap K200449 Ballet Flat - Choose SZ/Color , Via Spiga Women's Marlow Slip ON Sneaker - Choose SZ/Color , Vince Women's Emberly Mule - Choose SZ/Color , 1100 stella mcartney elyse shoes 40 , NWOB TABITHA SIMMONS $575 “Cleo” navy satin knot double bow slides 38.5/8.5 , NIB TORY BURCH LAILA RETRO PINK LEATHER BOW GOLD REVA BALLET DRIVER FLATS 8.5 , MM6 Martin Margiela Derbies En Cuir Taupe, Taille 36. , NEW Giorgio Armani Shoes (Flats)! US 8.5 Euro 38.5 Silver Brocade with Bow

More Stories

Madden Girl Women's Melinda Fashion Boot , Hippey Laundry Ankle Boots In Burgundy With Embroidered Floral Pattern-Sz 7.5New Women DbDk Texas-2 Leopard Lug Sole Zip Wedge Riding Bootie SizeWomen's Block High Heel Short Ankle Boots Casual Shoes USAerosoles My Time Combat Boots 544, Black, 7 USLucky Brand Ashbee Brown Womens Shoes Size 9 M Boots MSRP $89 , NEW!!! Original Unisex Native Apollo Rain Black boots size 36 US 6 , Clarks Ruby Bet Gray Leather Buckle Ankle Boot Bootie NEWMinnetonka Boots Women's Mid Calf Moccasins 3 Layer Fringe Black Suede Sz 6Style By Charles David Connor Boot - Women' Size 8.5 M, SlateCalvin Klein Elle ballet Flat Size 6.5 MSLOOSH Italy Women's Mid-Height Matte Rain Shoe, Nero, 36 EU/6 M US$99 Size 10 Steve Madden Rocking Heels Black Over-The-Knee Boots Womens Shoes , Claudia Ciuti Black Suede Platform Knee High Boots Size 7SPERRY 9301242 Top Sider Acklins Olive Nylon Brown Boots Shoes US 6 M NWOBNo.6 Womens 35 5 Brown Leather Buckle Ankle Strap Clogs Wood Soles Swedish Shoes , AllSaints Ladies Sol Low Sneakers Black Leather Size 6.5 ()Jimmy Choo Pink Slingback Leather Ballet Flats Size 37 - Made in Italy!Superga White Leather Gum Sole 2750 Sneakers Tennis Shoes Wms 10 NWT $129 DISC , DRIES VAN NOTEN Shoes 540381 SilverxMulticolor 37Gianni Renzi 0006f Beige Leather Loafer Fold-Down Heel / Flats 37 / US 740183 auth ISABEL MARANT baby blue suede OG BAYLEY STAR Wedge Sneakers Shoes 37 , Dr Martens Harlen 1461 Spike Leather 3 Eye Punk Ska Shoes RareAvelon Stacked Heel Burgundy Patent Leather Oxford Tuxedo Shoes Size 8 , Yosi Samra Women's Samara 2.0 Ballet Flat, Simply Taupe 420, 9 M USJCrew $238 Mary Jane Pumps Ratti Graphic Diamond Print 8.5 Green Brown G8171Stuart Weitzman Black Leather Manila Loafers w/ Tassels Size 8.5 , Keds Women's Kickstart Leather Fashion Sneaker,White/Blue,8.5 M US , ASICS GEL NIMBUS Pink Green Black Running Women's Shoes Size 10.5 T485N , Ahnu Yoga Flex Lightweight Running Training Shoes Sneakers Black Womens 9.5

CLARKS Women's Everlay Heidi Slip-On Loafer CLARKS - Choose Women's Everlay SZ/Color 10b3eac -