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

Womens 37 Boots Attilio Giusti Leombruni Brown Ponyskin Hide Western 27773 Hide Boots Italian 15" 848cd25
Womens 37 Boots Attilio Giusti Leombruni Brown Ponyskin Hide Western 27773 Hide Boots Italian 15

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! Cole Haan Elverton Knee High Boot Black Leather Size 7 B W03573 T39Women's Corral Brown Turquoise Short Top Western Cowboy Boots 6 1/2 M w/ Tassel , Womens Vintage Panhandle Slim Maroon Leather Shorty Cowboy Boots 7.5 B NEW NIBWomen's Shoes Via Spiga EARTHA Leather Ankle Red Outside Zip Boots Size 7 M NEWFrye Womens Billy Braided Harness Boots in Gray Suede Leather Size 7.5 , DONALD J PLINER Western Couture Collection Women's Cowboy Boots Size 6.5 M$450 Genuine & Iconic Tod's Suede Booties, black 37.5 M. All leather insideNWT Carlos By Carlos Santana Garrett Suede Over Knee Heeled Boot Black 7.5 , NWT SOLUDOS Saddle Suede Braided Bootie - Size 5M - Festival Boho $149 RetailLACROSSE Women's "Laurelwood 5" Dry-Gore Brown Leather Boots size 5.5 , Sam Edelman Marmont $160 Black Leather Ankle Booties Brass Buckles Sz 7.5 , Tony Lama 8118 Black Label Grey Lizard/Leather Cowboy Boots Sz 9d USA MadeLifeStride Racey Comfort Riding Boots, Midbrown, 9.5 US / 41 EU , Thalia Sodi Brisaf Black Suede OTK Boot Size 9M E272 , Vince Camuto Laird Ruby Red Platform Tall Boots 9 FREE SHIPPING , ZARA TULLE ANKLE BOOTS WITH FAUX PEARLS US 7.5 / Euro 38 , Donald J Pliner Vive Baby Calf Brown Leather Boot Taupe New 6.5M , Lucchese Women’s Western Boots with Decorative Stitching USA Size 6B , Jack Rogers Deborah Bootie - Women's Size 5M BlackNEW WOMEN'S ROAN FOLD OVER BLACK DISTRESSED LEATHER ANKLE BOOTS WESTERN US 9OluKai Humu Brown Leather Women’s Ankle Boots Size 6.5Born Felicia Distressed Knee High Leather Black Boots Size 7 M $239 WIDE CALF , Thalia odi Women's Taavi Pointed-Toe Booties Black Size 6.5 M , BearPaw Elle Tall 1963W/Hickory 2 Boots Women's US 11 Eur 42 (P,1)New Aquatherm by Santana Canada Turnpike Waterproof Shearling Boots Women's Sz 8Sofft Felicia Knee High Dress Boots 940, Ash Grey, 6 US , WOMENS DOLCE & GABBANA BLACK PULL-ON/ BOOTS SIZE 36 1/2Carlos by Carlos Santana Women's Rumer Over-The-Knee Boots Wine Size 7 MLuichiny Fast Going Pointy Toe Knotted Side Fringe Mineral Wash Denim Booties ,

More Stories

ARRAY Womens Brittney Leather Closed Toe Ankle Fashion Boots, Black, Size 6.5W , SALOMON Waterproof Leather Winter Snow Boots Tan Women's 7 M , Vince Camuto Talorini Women Shoes Black Velvet Studded Combat Boots Sz 6.5 M , LL BEAN BOOTS Brown Maine Hunting Duck Low Shoes / Boots Women's Sz 8 MRyka Navy Blue Suede Water Resistant Hiking Boot 6.5 SaleWOMEN KNEE HIGH BLACK BOOTS SIZE 6Nine West Women's Obladee Black Leather Boot , Bearpaw Elle Tall Olive Womens Round Toe Slip On Boots for Winter [1963W] , SE Boutique Over the Knee Black Suede Pirate Boots 8 Womens Zip Inside 3.5" HeelNEW Dolce Vita Cooper Slip On Oxfords Flats Size 6 GraySAM EDELMAN REEMA Women D'Orsay Flats (9.5 M, SANGRIA) , Womens Lucky Brand Baley Perforated Chop Out Bootie Brindle Oiled Suede Sz 12 M , Anne Klein Womens Lanette Leather Closed Toe Ankle Fashion Black Size 8.0 o2sX , Jessica Simpson Carnivela Greyhound Suede Casual Wedge Side Zip Ankle BootieVINTAGE Mi Bottes WELTSCHUH Cuir et Daim T 36 TBENEW - PAPUCEI - PAINTED VEDA LEATHER WING SHOE - SIZE 40 , Dr. Marten's 8542 Made in England DM's Women's Leather Boots Size US 7 / / , POUR LA VICTOIRE, NICIA PATENT OXFORD, GREY, WOMENS, US 7.5 M, EURO 37.5, NIBMatiko Pamela Faux Fur Loafers Size 39 / 9 New Fabulous Rare!Chloe Shoes 308504 BeigexMulticolor 34 , NIB SAINT LAURENT Paris Suede Fringe HIGH-TOP Sneakers "SL 18H" Shoes EU-37 US-7 , Dr. Martens Women's 1461 W Three-Eye Oxford Shoe - Choose SZ/ColorGalaxy Fashion Smart Breathable Mesh Shoes Men Women Casual Ultralight SneakerChristian Louboutin Mix Flat Calf / Knot Spikes Glitter Ballet Flats Euro 36.5Dr. Martens Lylah Metallic Leather Slip-On Women's Sneaker Sz 8 Us Shoes **New**Donald J Pliner Womens Loafers Shoes calf hair Viky Driving Flats Shoes 6.5 M , NIKE Hyperdiamond 2 Pro Mcs 856493-018 WOLF GREY Size 12 , Women's Steve Madden Reggiee Riding Boot Boots , Womens Pointy Toe Low Wedge Heel Ankle Boots Hook Loop Casual Comfy Shoes SizesMinnetonka Womens Willow Boot - Black Size 6

Womens 37 Boots Attilio Giusti Leombruni Brown Ponyskin Hide Western 27773 Hide Boots Italian 15" 848cd25 -