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

Skechers Street localjoes-21437 Women's Sneaker Hi-Lite-Metallic Toe Into Toe Sneaker 74fd1c6
Skechers Street localjoes-21437 Women's Sneaker Hi-Lite-Metallic Toe Into Toe Sneaker 74fd1c6 -

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.

Skechers Women's Go Walk Outdoors 2-Transport Hiking Shoe - Choose SZ/ColorReef Women's Girls Walled Low Le Fashion Sneaker - Choose SZ/ColorSkechers BOBS Women's Clique Sneaker - Choose SZ/ColorSam Edelman Women's Leila 2 Sneaker - Choose SZ/Color , ALDO Women's Cadassa Fashion Sneaker, - Choose SZ/ColorQOMOLANGMA Women's Suede Slip-Resistant Hiking Shoes Walking Sneakers... , NIB Cole Haan Women's ZeroGrand Slip-On Sneakers Grey / Yellow Size 8.5 $178 , Skechers Women's DLITE Ultra Sneaker - Choose SZ/ColorNew Balance Women's 611v1 Cush + Cross Trainer - Choose SZ/Color , DC Women's Trase SE Skateboarding Shoe - Choose SZ/ColorCapezio Women's CG17 Fluid Tap Shoe - Choose SZ/ColorCrossFit Oly Lifting Shoes womens 7.5 , Skechers Women's Microburst-Pure Cleanse Sneaker - Choose SZ/Color , Womens Nike Air Huarache Run Ultra Breathe White Pure Platinum 833292-100Roxy Women's Bayshore Slip on Shoe SneakerSkechers Women's Ultra Flex Bright Horizon SneakerPUMA Women's Enzo Terrain Wn Sneaker - Choose SZ/Color , PUMA Women's Fierce Gold Cross-Trainer Shoe White/Gold 7.5 B(M) USSaucony Shadow 5000 S60033-90 Light Blue Casual Fashion Shoes Medium B, M Women , ASICS Women's Gel-Resolution 6 Clay Court Tennis Shoe - Choose SZ/Color , Reebok Women's Print HER 2.0 CAMO Track Shoe, - Choose SZ/Color , Skechers Women's Goldie - Glitter Kicks Sneaker, - Choose SZ/Color , Reebok Zpump Fusion Running Women's Shoesadidas Women's Energy Cloud V Running Shoe - Choose SZ/Color , New Balance Women's Wlazrmh - Choose SZ/ColorNew Balance Men's Nitrel v1 FuelCore Trail Running Shoe - Choose SZ/Color , Womens Nike Lunarlon Breast Cancer Awareness Pink Silver Athletic Shoes Size 8.5Salomon Speedcross 4 Women's walking shoes sz 8.5 US Black/Black MetallicSkechers Women's You ZEN Wide Sneaker

More Stories

S.C. Faee Riding Boots, Mushroom, 6.5 US DisplayLadies X1171 Funky Red, White & Blue Union Jack Print Wellies , New Bonbons Winki Womens Leather Chelsea Ankle BootsSteve Madden Womens Beacon Knee High Slouch Boot Shoes, Black, US 9Baretraps Stiller Slouch Boots - Women's Size 8.5M, Black MSRP $100Colorful Handmade Peruvian Alpaca Slippers (US Size 10-10.5) womansNIKE SHOX Q´VIDA women's boot sneaker turbo rivalry nz air , Sporto Charles Angled Calf Waterproof Winter Boots, Pewter, 8 W US Used , Call It Spring Womens Talcahuano-99 Velvet Closed Toe, Black Velvet, Size 5.0 a6Ladies TONY LAMA 5084 Brown Leather Cowboy Western Boots Size 5B USA , CL by Chinese Laundry Women's Newly Boot, Black, Size 6.5 , BORN Crown Brown Leather High Heel Zip Buckle Knee High Fashion Boots Size 9 MWNew Women DbDk Fierce-1 Denim Peep Toe Frayed Stiletto Ankle BootJeffrey Campbell Honesty Pointed Flat Nude Suede Clear Lucite Wedge Ankle Strap , Alegria Paloma Women Black Glitter Patent PAL-249 Leather Mary Jane Shoe Size 36 , Fashion Women's Stilettos Pointy Toe Buckle strap Pull On Zipper Knee high Boots , Farylrobin Womens Kyle Ankle Boots Booties Berry Size 9.5 NewWOMEN PATENT LEATHER BUCKLE BALLERINAS FLATS CRYSTAL BUTTERFLIES & COCCINELLIDNEW MADEWELL/J. CREW CALEB PATENT LEATHER OXFORDS FOG GRAY Sz 7 BRAZIL Rtl $238Womens Fly London Yote Wedge Heel Leather Summer Open Toe Cut Out Sandal US 5-12 , Easy Street Women's Serenity Mule Tan 10 M US , New JCrew Velvet Bow Gladiator Flats Shoes $198 9 black glitter e4669 SOLD OUT!! , Jimmy Choo TULITA Shimmer Sexy Logo Buckle Flats I LOVE SHOES , Hush Puppies Womens Cherish Gwen Slip-On Loafer 6 W US- Pick SZ/Color.MEPHISTO Linda Wo's 8M Black Stretch Gore-Tex Knee Rain Boot Side Zip Wedge HeelNike 833802 201 Womens Mayfly Woven Lightweight Running Sneakers Shoes , DC Women's Trase Slip-on X TR Skate Shoe 9 MASICS Gel-Foundation 12 Running Shoes, Women's Size 7, Silver/Gray/Green/PinkWomen's Grasshoppers Women's Jade Fashion Sneaker Athletic ShoesNine West Womens Holdon Ankle Bootie Taupe Size 9.5 M US ,

Skechers Street localjoes-21437 Women's Sneaker Hi-Lite-Metallic Toe Into Toe Sneaker 74fd1c6 -

Athletic Shoes