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

Reebok Reebok Classic Leather Women's Black 498022/Gum Black/Gum 498022 43bf68f
Reebok Reebok Classic Leather Women's Black 498022/Gum Black/Gum 498022 43bf68f -

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.

Ryka Women's Devotion Plus 2 Cross Trainer Black , Under Armour Adapt Women's Black/Black/Charcoal 20372002adidas adiZero Ambition 4 Women's Core Black/Footwear White/Orange CG3829Clarks Women's Flores Tulip Wedge Black Suede Heels , adidas Originals Stan Smith Women's Black/Copper Metallic BB1433 , Adidas Tubular Shadow Womens BB8870 Solid Grey Granite Athletic Shoes Size 10Wolverine Women's Jetstream CarbonMax Toe Sneaker Grey/Pink Mesh/TPU SneakersNIKE Womens Nike Tanjun 812655-606 SHEEN/WHITE-SHEEN Womens Size 9Rockport Women's Briah Perfed Slingback Taupe Full Grain LeatherNike Air Force 1 '07 SE Prm Nocturne Womens AH6827-600 Port Wine Shoes Size 9.5 , Nike Air Zoom Pegasus 33 Pure Platinum/Black-Cool Grey 831356-006 Women's SZ 5Nike Zoom Strike Women's Midnight Navy/Wolf Grey/Dark Obsidian/Black J0188403 , Keen Women's Elsa Sneaker Black/Star White Sneakers , ADIDAS Barricade 2017 Clay Black White , New Balance Fresh Foam Cruz V2 Women's Black/Black CRUZRB2BWomen's Nike Roshe One Casual Shoes White/Pure Platinum 844994 100Converse One Star Ox Women's Fuchsia 161587C , Under Armour Speedform Slingshot 2 Chambray Blue/Oxford Blue/Silver 00097400Comfortiva Women's Renee Flat Tan Cow Vintage Slip-on Shoes , Sam Edelman Women's Patti Ankle Strap Sandal Pewter FabricNike Zoom Strike 2 Running String/Metallic Gold/Phantom/Thunder AO1913 200Dansko Women's Charlie Perforated Sneaker Sage SuedeNina Women's Ganice Slingback White Gold Metallic Foil/Polyurethane SlingbacksNike Air Force 1 '07 SE - Women's Red Crush/Red Crush/White/Black A0287602Nike Free RN Cmtr Womens 831511-400 Obsidian Squadron Blue Running Shoes Size 6 , Women's Reebok Freestyle Hi Casual Shoes Black 71W BLK , Nike Vandal Hi Women's White/White/Black J9750100Propét Women's Wprx25 Olivia Black Size 8.0 , Clarks Women's Raisie Eletta Penny Loafer Black Full Grain Leather Loafers ,

More Stories

Ladies Womens Suede Black Grey High Mid Block Heel Tassel Ankle Boots Shoes SizeApt. 9 Manager Womens Size 9.5 Medium Black High Heel Ankle Boots $80 NewKelly & Katie Womens Balantina Round Toe Ankle Chelsea Boots, Black, Size 8.0 EY , MUSA 90s // Size US 8 // Black heels casual women's shoes , Propét Womens Delaney Leather Closed Toe Ankle Fashion, Dark Red, Size 7.0 8UgMLucky Brand Jofeen Ankle Booties, Dark Earch, 6.5 US / 36.5 EUCliffs by White Mountain Pinch Hiking Boot - Women's size 11 M - Dark Brown , White Mountain Womens bethesda Leather Almond Toe Knee High, Stone, Size 11.0 , SAM EDELMAN "WAKEFIELD" BROWN LEATHER WEDGE SUMMER BOOTIES / / US 8MWomen's size 7 Black LEATHER BOGS Winter Waterproof Insulated Boga BootsWHITE MOUNTAIN Vintage Fashion Boots Size 7.5 M Women'sTommy Hilfiger Woman's Boots Size 8 Tw02949 Black Leather Chunky , Style & Co. Womens Jerardy Black Ankle Boots Wedges 6 Medium (B,M) BHFO 9613Naot Women Kirei Mary Jane Shoes Black Leather Patent Suede Comfort Sz 41 , Willowbee Women's Naomi Boot Grey 8 M USCesti Womens Black Patent Leather Boots W/ Side Buckle Korean Size 240/ US Sz 6 , Marc Fisher New Womens Trist Black Boots 10 M ShoesSam Edelman Damian Ivory Womens Shoes Size 7 M Flats MSRP $130CLARKS Womens Neenah Garden Leather Closed Toe Ballet Flats Grey Size 9.0 , NIB TORY BURCH BURGUNDY LAILA PORT SUEDE BOW GOLD REVA BALLET DRIVER FLATS 7Womens AGL 226247 black leather cap toe ballet flats sz. 35 , Jack Rogers Women's Rebecca Suede Ballet Flat - Choose SZ/Color , Rockport Cobb Hill Collection Ch Penfield Zip Shoe Almond Womens Slip-On 8.5MSkechers Women's Breathe Easy Take on Anything Sneaker - Choose SZ/ColorREEBOK Women's Shoes SNEAKERS BLUE Reebok Zprint Run Hazard AR2851 SIZE 8.5,NEWTretorn Women's Tournet Cotton Net Sneaker Lavender size 7MNew Balance Size 10 Womens Tennis Shoes Grey Black Running Comfort Pillow Cush , Women's Bed Stu Awaken Boots 7.5 Boots , Women’s Skechers Boots Black With Gray Fur Lined Size 8.5Flirt by Alegria Metallic Pewter Dazzler Comfort Shoes Wedge Heel FLI-532 Sz 9

Reebok Reebok Classic Leather Women's Black 498022/Gum Black/Gum 498022 43bf68f -

Athletic Shoes