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

NIKE AIR MAX 90 (896497 PRM SZ: WMNS 6.5 27687 (896497 WMNS 007) RETAIL: $130.00 60eef7f
NIKE AIR MAX 90 (896497 PRM SZ: WMNS 6.5 27687 (896497 WMNS 007) RETAIL: $130.00 60eef7f -

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.

Nike Air Zoom Pegasus 33 Womens Running Trainers 831356 Sneakers Shoes 603 , Nike Womens Lunarglide 9 Running Trainers 904716 Sneakers Shoes 006Florsheim Work Women's FS245adidas Originals Tubular Shadow CK W Pharrell Williams Trace Maroon Women B37759 , NIKE WOMENS AIR PRESTO PREMIUM 878071-004 LIGHT BONE WHITE DS SIZE 7 , Adidas Women's Nmd_R1 Stlt Primeknit Originals Running Shoe , Adidas Originals Eqt Equipment Support RF W Women's Sneakers Shoe Sneaker BY9105Puma Ignite Ronin Wns White Black Women Running Casual Shoes Sneakers 191218-03 , Skechers Go Run Mojo-Mania [14814PNK] Women Running Shoes Pink/White , Nike Womens Lunarglide 8 Runing Trainers 843726 Sneakers Shoes 4052007 Womens Nike Air Force One 1 Low sz 12 Shades Of Blue 315115-412 CR , Brand New Nike Women's Air Presto Running Shoe Size 9 Red Fuchsia White , NIKE WOMENS SF AF1 AIR FORCE 1 MID MUSHROOM TAN LIGHT BONE BOOT AA3966 200 SZ 6 , YRU Qozmo Aiire Reflective Punk Emo Mutlicolored Vegan Leather Sneaker Shoe , adidas Originals Tubular Shadow Women's White/White/Black AC8334Shoes adidas Campus W Orange Women AQ1071 , nike womens air huarache trainers 634835 109 sneakers shoes , PUMA Women's Fierce Kurim Training Shoes , New Women Athletic Sneaker Creeper Wedge Heel High Top Board Shoes Real Leather , ADIDAS ALPHABOUNCE RC Running Shoes Womens Trace Scarlet Red Orange CG4746 NewNike Wmns Air Zoom Pegasus 35 Bright Crimson/Ice Blue-Sail Running 942855-600New Balance 574 Classic Women's Black/White WL574EB , Nike Womens Lunarcharge Essential Running Trainers 923620 Sneakers Shoes 001 , Durango Boot Women's DRD0308 Music City Western Embossed High Top Cocoa , Adidas Originals Superstar 80s W Women's Sneakers Fashion Shoes Sneakers S76415Apex Women's Ambulator Stretcher Double Strapadidas Aerobounce 2 W White Grey Silver Women Running Shoes Sneakers AQ0541W Nike Air More Money LX Black/Black-Summit White AJ1312-003 Size: 7.5 , SAVE $$$ Asics Gel GT 1000 6 Womens Running Shoes (D) (1456) ,

More Stories

Women's Born Concept Size 8M/W Booties Clogs Shoes Brown Leather Monk Strap F2Restricted Womens pablo Closed Toe Ankle Fashion Boots, Black, Size 6.5 1pmY7856193 LFTBTS50 Women's Shoes Size 7 M Beige Suede Boots Johnston & MurphyBamboo Knee High Red Boots- Faux suede Size 8Impo Womens priscilla Almond Toe Ankle Fashion Boots, Scarlet Red, Size 9.5 , Guess Women Boots Size 8.5 M Brown Genuine Leather Knee Length Heel , Women Flat Thick Bottom Shoes Slip On Ankle Boots Casual Platform Sport ShoesSoft Line by Jana Womens 7" Fleece Lined Ankle Boots sz 7.5 - 8 US 38 EU ComfortNike Womens Kaishi Winter High Sneakerboot Shoes Black , Steve Madden Ashleey Black Suede Knee High Wedge Boot Sz 9.5 Platform Shoe 90'sSam Edelman Boutique Black Tall Leather Boots, Women's Size 10VERY VOLATILE Los Angeles Womens Black BANJO Leather Ankle Boots Size US 7Slouchy Holographic Sequin Pointy Toe Western Knee High BootsNew EMU Australian Womens Short Winter Boots Tan Sheepskin Bows Size 6.5TOD's penny loafers, black leather, womens shoe size, US 8.5 $480 , TN29 Tracy Neuls Black leather shoes 37/6.5M Canada London , Paul Mayer Brandy Flats Croco Brown Linen Women's US Sizes 6.5 or 7 , Roberto Serpentini Women's Piombo Leather Brogues 1703***NEW*** Cushe Groove Stylus Women Shoes Cool & Comfortable U.S. Size 6Authentic Manolo Blahnik Women's Camouflage Pointy Toe Flats Size 35 1/2PUMA Women's Smash V2 L Perf Sneaker PUMA Black/PUMA Black SneakersLadies Skechers Slip On Trainers - Propel 14170 , Nike Womens Air Zoom Resistance Running Shoes Size 10.5 (25321) , U.S. Polo Assn. Women's Cora2 Fashion Sneaker - Choose SZ/Color , CONVERSE ALL STAR DOREE TAILLE 36Women's Women Nike Shows Athletic ShoesWomen's Tod's Suede Loafer Flats Flats , H Womens Sexy Pumps Block Chunky High Heels Platform Winter Over Knee High Boots , DanskoTapestry Clog Mules Size Work Occupational , Converse Women CTAS Dainty Canvas OX 553373C Sneakers Blue UK4 RRP BCF78

NIKE AIR MAX 90 (896497 PRM SZ: WMNS 6.5 27687 (896497 WMNS 007) RETAIL: $130.00 60eef7f -

Athletic Shoes