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

Saint Laurent Espadrilles YSL Espadrilles 39.5 Studded 23491 Flats Ballerina 39.5 9.5 b22a148
Saint Laurent Espadrilles YSL Espadrilles 39.5 Studded 23491 Flats Ballerina 39.5 9.5 b22a148 -

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.

New! Alberto Moretti Beige Suede Flat W/Gold FlakesNIB AGL Buckle Moccasin Coal Grey Shimmer Suede Loafer Flat /US 7 Run SmallSJP By Sarah Jessica Parker Hita Mules Heel Silver Scintillate SparkleFRYE Women's Melanie Canvas Siip On Sneaker, Off White/Multi, 8.5 M USTory Burch Lowell 2 Driver 6.5 loaferBaldan Brown Lizard Print Leather Flat With Gold Metal Toe Plate Size 36 , Louise et Cie Andres Gravel Gray Suede Fur Pompom Loafer Flat Shoes 6 New , Bottega Veneta Olive Green Satin Slip On Ballerina Ballet Flats Shoes 39 ItalyTieks by Gavrieli - Heritage Plaid Flats Tartan Size 10 Limited NIB SOLD OUTNewbarK Womens Loafers Size 8.5 Black Calf Leather Ivory Piping Melanie New $500 , Stuart Weitzman Nugal Espadrille Sneakers Fossil Suede Beige sz 9.5 New , LANVIN Size 9 Taupe Leather Snake Skin Cap Toe FlatsFrye New Gemma Gray Womens Shoes Size 6.5 M Flats MSRP $258Josef Seibel Women's Pippa 07 Flat Black Calk Kombi 39 BR/8-8.5 M US , LKNW Womens White TOD'S Patent Leather Buckle Loafers 8 ITALYNew in box SAINT LAURENT Sugar Changy Glitter Black Leather Flats Loafers 329861 , Vince “Vaughn “ Optic white booties size 7Tory Burch Reva Suede Ballet Flat Gold Lined Metal Logo Olive Green Size 10MRepetto Grey Pebbled Michael Loafer 39 EUC Worn Once , ECCO Women's Felicia Slip on Ii Wedge Pump, Black, 38 EU/7-7.5 M USJohnston & Murphy Silver Metallic Leather Paulette Slip On Shoe 8 New , BRAND NEW IN THE BOX TORY BURCH BLOSSOM BALLET FLAT SIZE 9Kenzo Womens Fashion Sneakers Shoes Platform Patent Low-top Leather Black, 39 , Vionic Women's Gramercy Ballet Flat Black Black 8.5 M , TSUBO Millay men's women's sneakers leather shoes US 6 (rrp:) , 100%authentic Prada Metallic Leather Espadrilles sz 39.5 / 9.5USAUTH NEW WOMEN TORY BURCH SERENA EMBOSSED LEATHER BALLERINA/BALLET FLAT US 6.5ara Women's Rachel Slip-On Loafer Dark Brown Croco 8 M USNWB DOLCE & GABBANA Espadrilles Pineapple Pink Size EU37, US7, UK4

More Stories

Ladies Spot On! F50274 Synthetic Zip Up Casual Ankle BootsCougar Womens Kensington Navy EVA Rain Boots Shoes 7 Medium (B,M) BHFO 0961 , POP Hemet Women's Black Boots Size 7.5COLE HAAN COUNTRY pull on ankle med heel boots 7.5 B , PURESOLE SMITTEN TALL WINTER BOOT 12 MEDIUM NAVY PO , CAPE ROBBIN Women's Clear Over The Knee Boots Ella-6 US SIZE 6Nine West Botamy Size 6M Black Knee High Stilleto Pointed Toe Boots EUCIKRUSH Women's Valentina Stretch Thigh High Embellished Boots Size in BLACK S , Women Shinning Patent Leather Ankle Boots Pearl Med Block Heel Square Head Shoes , Harley Davidson Motorcycle Boots Women's Size 7.5 Medium Black LeatherAnnie Shoes Women's Mobile Wide Calf Riding Boot Black/Leopard Size 9.0MATISSE Womens Amigo Brown Leather Cuff Fold Over Harness Ankle Boots Sz US 8.5The North Face Nuptse Purna Black Suede Waterproof Winter Fur Boots Women Size 9Dr.Martens Adrian Arcadia Cherry Womens ShoesCamper Shoes Womens Borne Flat Sneakers Yellow Canvas Shoes NEW , Ariat "Buckeye" Brown Leather Western Studded Wooden Heel Reptile Print Size 8.5 , Manolo Blahnik Probo Black Suede T Strap Ballet Flat Size 40 10 NIB $665Proenza Schouler Womens Fringe Slipper Pointed Toe Shoe Black Leather US 8 MNew balance Orthotic Green Navy Running Runner Sneakers 37 7 US 5 UK , New Sperry STS82119 Seaport Levy Navy Blue Women's Casual Shoes 6 US , Skechers BOBS Women's Plush-Art Hissstory Ballet Flat - Choose SZ/ColorNew MIU MIU Size 8.5 Burgundy Velvet Mary Jane Ballet Flats Shoes 39 Jeweled NIBRocket Dog Women's Canyon Cloud 9 Cotton Sneakeradidas AW4323 Womens Shoes | Cloudfoam Advantage Clean SneakersNIKE SHOX Turbo 9 sneakers RARE 8.5 teal blue silver & white VEEUC , Adidas Tubular Defiant Lush Red Size 7 US/ 5.5 UK LTD ETDNew Vans KVD Wedge Peace Black White Skate Shoes Skateboarding Sneakers wm 11 , Women's Burberry Flats Flats , Women's Kamik Womens Shelly (EK2690) BootsSteve Madden Womens Boots sz-3 Troopa Brown Leather Combat Distressed Rustic ,

Saint Laurent Espadrilles YSL Espadrilles 39.5 Studded 23491 Flats Ballerina 39.5 9.5 b22a148 -