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

XOXO Katniss Ankle Booties, Black, 6 Katniss US/ US Booties, 36.5 EU 4d2aab5
XOXO Katniss Ankle Booties, Black, 6 Katniss US/ US Booties, 36.5 EU 4d2aab5 -

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.

Bandolino "Carmine" Black Leather Knee High Zip Side Riding Boots - Size 8 MSeven Dials Dillon Mid-Calf Boots, Grey Suede, 6 USCape Robbin BETISA-59 Pink Mirror Metallic Pointy Toe Flare Heel Mod Ankle Boot , Vintage Fabiano THE ALPS Suede Hiking Boots 7 M ITALY Mountaineering , Jennifer Lopez Women's Ankle Boots Size 6.5 M NWT , I35 Rickiel Block Heel Pull On Ankle Boots, Cognac, 8 USEarthies Halley Black Leather Suede Bootie Heel with Scallop Detail Size 7Rock & Candy Spraypaint Foldover Ankle Boots, Taupe , Easy Street Northern Cross Strap Ankle Booties, Tan/Brown Croc, 7 W USG by Guess Hailee Black Womens Shoes Size 10 M Boots MSRP $89Hunter for Target Adult WOMENS Dipped Canvas High Top Sneakers-Khaki Green/Black , Sporto Side Winder Waterproof Cold Weather Boots 136, Black, 6 US Display , Made In Italy - Designer Cavallini Ruched Black Ankle BootsAndiamo Rodeo Women's Boots Size 6Mudruckers Women’s Waterproof Insulated Rain Ankle Boots 100% Rubber EUC! Size 6 , Brazilian BASS 'Zippo' Size 11 Brown Leather Side-Zip Med-Heel Dress Ankle Boots , Dingo Womens Cowgirl Western Fringe Boots USA Mid-Calf Pull On Tan Leather Sz 9Hush Puppies Gianna Motive Riding Boots, Dark Brown , Victoria's Secret Gray Knit Pom Pom Suede Sole Tall Boot Mukluks SZ M 7/8Sporto Nadia Mid-Calf Boots, Black, 5.5 USWomen's Clarks Bendables Stroll Vine Ankle Boots Size 6M Brown Rust Leather Z15 , Rock & Candy Danlea Mid-Calf Winter Boots, Black/Grey , Seychelles Gander Black Size 6.5 Leather Ankle Booties , Baretraps Vairy Brown Round Toe Synthetic Wedge Over the Knee Boot Sz 8.5Justin L3057 Black Leather Roper Cowboy Western Boots Women Size 7.5A - USAKeen Womens Flint Low Steel Toe Waterproof Comfort Safety Work Boots Size 8.5 , BOC BY BORN Women's Sz 10 Brown Leather Bootie Distressed Monk Strap Boot Zipper , 02-2155 Columbia boots Bangor Slip Omni - Heat/ size 12western cowgirl leather boots sz 8.5 M

More Stories

Womens Italian-Made PREVATA Black Leather Suede Ankle Boots Pointed Toe Size 7Relativity Marin Casual Tall Wide Calf Boot Blackwomen's justin ropers boots, gray, 7 and 1/2 , Very Volatile Clogs Cowboy Boot Style Mules Black Crackle Leather US size 8.5Brinley Co Women's Avita Ankle Boot, Tan, Size 7.5 yrYh , BASS "Sydney" Women's Black Suede Faux Fur lined Boots Size 6 M w/ zipper Nice! , NEW LADIES Black 4"High Stiletto Heel Pointy Toe Sexy Mid-Calf BootS Size 7 , XOXO Women's Olivia Snow, Winter Mid-Calf Boots Faux Suede Black Size 10 MAnouk Womens Sz 9 Pebbled Leather Brown Zip Tall Riding Biker Equestrian Boots , Fashion women Plus size zip knee high heels boots Korean solid winter Luxury , NOMAD YIPPY LADIES BLUE PLAID WATERPROOF RAIN WESTERN INSPIRED BOOTS SIZE 7 MSTEVE MADDEN lorredo cowboy western boots leather embroidered Thunderbird 6.5 M , VANELi ALISHA 506791-001 Womens Alisha M- Choose SZ/Color. , J Crew Espadrilles Wedge Metallic Gold Soft Leather Size 6 Made In Italy EUC , Naturalizer Brown Vegan Knee High Boots 7 M Zip Up Medium Heel , Skechers Womens Sure Trak Erath in Black , New ENZO ANGIOLINI Women Leather Textile Black Flat Loafer Shoe Sz 7 M , Lanvin Ballet Flat Size 38.5 Persimmon Patent Leather , Skechers BOBS Women's Plush-Peace and Love Flat - Choose SZ/ColorBARRACUDA MONK STRAP LEATHER DARK GREEN/BLACKNIB Christian Louboutin Toerless Muse Nude Leather Strappy Cage Ballet Flat 41.5 , MARNI Sabbot Slip On Tassel Loafers 637, Black, 7 US / 37 EU , tricot COMME des GARCONS Shoes 413406 White 22cm , VINCE Womens 'Alona' Black Patent Leather Slip On Almond Toe Oxfords Sz 8 NEW!Versace 19.69 302999 OTTICO BEIGE AZZURRO ballerina shoes Women's Multicolor USRalph Lauren Womens Black Size 10 Alligator Print Leather Penny Loafers , New Balance For J.Crew 620 Sneakers Neon Mango New In Box Women's US Sizes: 6-10 , Harley-Davidson Women's Zia Vulcanized Shoe - Choose SZ/Color143 Girl Womens Olla Round Toe Slip-On Sneakers, Black, Size 8.5Nike Air Force 1 07 LE Low Women's White/White 23498067

XOXO Katniss Ankle Booties, Black, 6 Katniss US/ US Booties, 36.5 EU 4d2aab5 -