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

Bernie localjoes-26524 Mev Women's Gummies Gem Bernie Flat Bronze Bronze/Pewter/Pewter 40 EU/9.5-10 M US 0150b84
Bernie localjoes-26524 Mev Women's Gummies Gem Bernie Flat Bronze Bronze/Pewter/Pewter 40 EU/9.5-10 M US 0150b84 -

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.

JBU by Jambu Women's Deep Sea - Encore Mary Jane Flat, Navy, 6 M US , Tory Burch 'Caroline' 2 in Sand/Dark Leather Ballet Flat Shoes Size 5.5 M , Naturalizer Women's Saban Loafer Flat, Navy, 7 M USTory Burch Reva Black Tumbled Leather Flats Sz 7 M , Klogs Mission - Leather Clog - Many Colors Black Oiled - 12 Medium , Zee Alexis Women's Danielle Sneaker, Navy White Bottom, 9Vionic Women's Camden Wedge Black 6 MRockport Women's Total Motion Novalie Dress Pump, Black Leather, 9 W US , Nine West Women's Saxiphone Ballet Flat Black/Multi 8 M USSperry Top-Sider Women's Angelfish,Linen/Oat,6 W US , Dansko Women's Helen Fashion Sneaker, Black Print Suede, 37 EU/6.5-7 M US , Derek Lam Women's Shoes Flats Sz. 7 B ItalyJBU by Jambu Women's Peterson Ankle Bootie, Brown, 9.5 M UST.U.K. Women's T1002 Brogue Mary Jane Flat Black 8 M USClarks Women's Keesha Donna Mule,gold/metallic leather,9.5 Medium US , JSport by Jambu Women's Bath Encore Flat, Black, 8 M USCrocs Women's Sarah Luxe Lined Clog Mule, Espresso, 8 M US , Aerosoles Women's Trend Setter Loafer Dark Gray Combo 7 M US , Klogs Mission - Leather Clog - Many Colors Black Oiled - 7.5 MediumNine West Women's Gingerbred Metallic Oxford Flat - Choose SZ/Color , Tory Burch Claire Ballet Flats Size 9 Blue White Floral Gold Career/Casual Shoes , Tory Burch Caroline Black Womens Ballet Flats Size 8.5 , Sesto Meucci Women's Diva Beige Nabuk/Mtch Elastic 9 N USClarks Women's Neenah Garden Ballet Flat, Navy Nubuck, 8 M US , Burberry Women Loafers Tan Nude Fabric Leather Loafers Slip On Buckle Shoes 38.5 , Spenco Alicia Women's Leather Supportive Slides Navy - 10 , FRYE Women's Sienna Multi Stud Ballet FlatClarks 10774 Keesha Luca Loafers Womens Black , Teva Women's W Ember Moc Shoe, North Atlantic, 7 M US

More Stories

BareTraps Avita Short Winter Boots 507, Mushroom Suede, 6.5 USConverse Shoes Womans Plaid Gray SZ US 6.5 Model 100369F , Sam Edelman Women’s Size 10 Suede Louie Fringe Ankle Booties Boots EUCWomen's SPERRY Top-Sider Gray Suede Leather Ankle Boots Size 8.5 MCliffs by White Mountain Womens Kansas Fabric Closed, Stone/Sweater, Size 7.5 pzRockport Total Motion Bronze Suede Boots Women's Shoes Size 9.5 M NEW RTL $190 , DR. SCHOLLS Knee High ladies Boots Platform heel 3.5" NEW great style 7M , Rockport Total Motion Lynix Pointed Toe Booties 153, Black, 8.5 W US , L. K. Bennett Women Boots Nora Suede Black size US 11 , Jessica Simpson Allest Platform Ankle Boots, Black, 9.5 US / 39.5 EUDINGO - Women's Size US 5.5 Ankle Boots with 1.5 Inch Heel , Aldo Norerwen - Women's Knee High Boots Size 6.5, Natural (Repair) , Pink And Black Ring Lizard Boots For Women By Los Altos Exotic Boots HandcraftedBCBGeneration BCBG Size 10 M CHAZZ Black Leather Heels Boots New Womens Shoes , Zodiac USA Arizona Black Fringed And Studded Cowboy Boots Leather Cowgirl Sz 5.5Vince Mason Maroon Burgundy Calf Leather Pony Hair Slip On Loafers Flats 7.5 NIBTory Burch Women Striped Blue Multi Color Big Logo Ballet Flats Shoes Size 6.5 M , Womens Irregular Choice Mini McNutty Brown Slip On Flat Ballet Shoes Shu Size , Clacquettes model 101529 Zoki - Matter - ShoesNEW DANSKO WOMEN'S AUDREY HOOK AND LOOP PUMP BLACK CRACKLE 40 10 MEDIUM $145 , Jimmy Choo CRU Crushed Metallic-210 Anthr 36.5 Pre-Owned Excellent ShapeU.S. Polo Assn. Emery-k Fashion Sneaker - Women's Size 8.5 - Pink/Black , David Tate Women's Nadine Perforated Espadrille, Black Calf, Size 9.0Pleaser Women's Electra 2090 Red/White Stretch Patent , adidas Performance Womens Pure Boost X TR Zip Cross-Trainer Shoe, Grey Heather,Women's Nike Dart 8 Shoes Size 6.5 ( 396050-106) (W-44) , Skechers Modern Comfort Womens Bikers-Curbed Sneaker- Select SZ/Color.Women's Ladies Leopard design heeled wellies Boots , Dolce Vita Women's Pistal Bootie Tan US 8 NWDNike SF Air Force 1 Mid Elemental Gold/Elemental Gold/Gum Lt Brown A3966700

Bernie localjoes-26524 Mev Women's Gummies Gem Bernie Flat Bronze Bronze/Pewter/Pewter 40 EU/9.5-10 M US 0150b84 -