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

Jack Rogers Women's 24543 Astor Rogers Brown/Black Tortoise Leather Astor Flats 6M 199b0ef
Jack Rogers Women's 24543 Astor Rogers Brown/Black Tortoise Leather Astor Flats 6M 199b0ef -

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.

Franco Sarto Women's Saletha Pointed Toe Flat Black Patent Size 7.5 , NEW J CREW Gemma Glitter ballet flats 6.5 Shoes Sand $148 #e0229Cole Haan Womens Louannasam Closed Toe Ballet Flats, Blue Snakeprint, Size 6.0 , One of a kind Handmade DEERSKIN Moccasins! I ordered direct from craftsmen , igi&co Babette Scamoscio/Nuv.Met Taupe ballets sale 77343 , BZ488 VITTORIA MENGONI shoes brown leather women moccasinsVan Eli Serene Flat Women’s 9 Tan Black Quilted Leather Nappa MINTRalph Lauren Collection Purple Label Shoes Size 6.5 Black Velvet Ballet Flats , Cole Haan Womens Harrietsam Closed Toe Ballet Flats, Navy, Size 6.0 , DORA DARK TAN LMSP70 Women's Shoes Size 7 Eur 4.5 Leather Ankle Strap MephistoMy Little Pony Rainbow Dash MLP LADIES Classic High Top Canvas Shoes , DANSKO 41 BLACK TOOLED LEATHER CLOGS WOMEN USA SIZE 10.5 - 11 MBX139 JEANNOT shoes bronze leather women moccasins , BX378 2 STAR shoes gold textile women slip onLadies Padders Extra Wide Fitting Shoes - Darcy , ZARA NEW WOMAN SS18 RED FLAT SLINGBACK SHOES REF:7594/301SEVERINE WINE LMSP70 Women's Shoes Size 7 M Eur 4.5 Leather Zip Up Mephistoladies size 7.5 AA (narrow) brown leather COLE HAAN loafers shoes , JENNY by ARA Womens RUFFINA Black Calf Mules US 9.5H; (4049303402988) , BX377 2 STAR shoes black white textile women slip on EUBX134 JEANNOT shoes bronze leather women moccasins , Bed Stu Darla Women's Black Driftwood Loafer 10M Z410532 , Versace 19.69 E08 VITELLO CUOIO FIOCCO CUOIO ballerina shoes Women's Camel USLADIES "DB" EASY B SHOES PHOEBE BLACK , Versace 19.69 C01 CAMOSCIO GRIGIO Classic Shoes Women's Grey US , NEW Earth Kalso Invoke Negative Heel Technology w 3.7° incline full-grain 7.5/38 , Sesto Meucci Women's Neda Slip-On Loafer, Brown, Size 8.0 vBkL , DANSKO 41 BROWN OILED LEATHER CLOGS WOMEN SIZE 10.5 - 11 MRara Avis Iris Apfel Suede Smoking Loafer Dodo Bird Sequin Tan Flats Size 7.5 ,

More Stories

LFL by Lust for Life Women's Ramsey Fashion Boot, Grey, 11 Medium USNEW, WOMEN, SWIFT CREEK COWBOY BOOTS, RED , SIZE 5.5, ROUND TOE, VEGAN MADE , Sam Edleman Womens Tan Leather Knee High Boots Size 8 M , BellaMarie Women's Lauren-21 Low Heel Almond Toe Ankle Strap Knee High Riding Bo , Rockfish Wellington Tall Matte RFWB1011 CH Chocolate Women SZ 5 - 9 !ENZO ANGIOLINI (KASPI LEATHER BLK BOOT) WOMEN'S 11 BRAND NEW!!!Bare Traps Womens Fabulous Closed Toe Ankle Rainboots, Black, Size 9.0 m0t3 , The North Face Thermoball Black Micro Baffle Winter Boots Womens Size 10 , Bruglia 4733 Women Shoes dark brown - leatherDansko Women's Franny Comfort Shoes Black Leather Sizes 37-42Paul Green Lourdes Slip On Loafers 595, Nude, 6.5 US , NWB $650 Giuseppe Zanotti Black Velvet Lip Loafers Shoes SZ 38/8 , STUART WEITZMAN SZ 6.5 SS Black Quilted Leather and Patent Captoe Flats New , Miz Mooz Ashby Oxford Style Loafer, 7/37.5, Black Leather and CanvasCLARKS Women's Jocolin Vista Boat ShoeBrunello Cucinelli Womens Light Gray Suede Monili Ballerina Flats Sz36/6~RTL$995NEW 2017 auth $265 TORY BURCH sz9 Gigi Patent Leather Ballet Pumps SHOES LogoStubbs & Wootton Women's Shoes Needlepoint Knit Leather Trim Mules SZ 9.5 , Robert Clergerie Womens Eloise Espadrille Chukka Shoe Metallic Rose Gold 10.5 US , Nine West Women's Hammer Leather Loafer FlatNaturalizer Womens Porsha Blue Denim Walking Shoes Size 8 (C,D,W) (22778)Inov-8 Women's F-Lite 235 Fitness Shoe SIZE 9.5 WOMENSSergio rossi Shoes 128800 WhitexMulticolor 37.5CB CECILIA BRINGHELI $400 canvas shoes tassel flats mocassin loafers 36/6 NEWWomen's Nature Breeze Women Lug-11 Boots BootsWomen's NEW FRYE WOMENS ERICA OXFORD FlatsWomen's Public Desire Ankle Boots Suede Boots , Pink & Pepper New Alabama Brown Womens Shoes Size 8.5 M Boots MSRP $59Coconuts By Matisse Booties Grey Size 6 1/2 Pre-owned , Marco Tozzi Booties 25130 Women Booties Booties Boots sweet bow comfy - NEW

Jack Rogers Women's 24543 Astor Rogers Brown/Black Tortoise Leather Astor Flats 6M 199b0ef -