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


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! Women's Olive Street Pency Faux Fur Lined Mid Calf Boots - (Size: 7M) , Women's Fashion Shoes Knee High Riding Boots Black Cowboy Slouch Military Sz 6.5 , NEW Black Cut Out Gold Ankle Boots Cushion Walk Avon Pointed Toe SIZE 10 11033 , VALERIE STEVENS WOMENS BLACK LEATHER ANKLE BOOTS WOMENS SIZE 8 M , Stephany Womens High Boots Buckle Design Black Size 38- AH15Eddie Bauer 'Diane' Brown Suede Mid Shaft Tall Boots Wmns Size 8 /38 Latex soleBandolino HAVIS Women's Brown Leather Block Heel Ankle Boots Size US 6 M , WOMEN'S SHOES 41 BOOTS BY RAIN COMBAT BOOTS BATA FUND FUCHSIA , size 6.5 Madden Girl Prissley Black Over Knee Riding Flat Boots Womens ShoesWOMEN'S SHOES 39 BOOTS BY RAIN COMBAT BOOTS BATA FUND BLUE , BCBG Womens Boots High Heel Black Size 8.5 Zipper Down Back , WOMENS SZ 6 CUTE SPIKE HEEL FOLD OVER ANKLE BOOTS DIVA LOUNGE , NEW Burgundy Abound ankle Booties size 6.5 MVintage Rule 21 Black Over Knee Boots Size 8.5 , NEW STYLE & CO BLACK RYDER BUCKLE HIGH ZIP FAUX LEATHER KNEE BOOTS SIZE 5Womens Girls Diamante Wedge Heel Ankle High Top Trainers Sneakers Boots ShoesNO BOUNDARIES WOMENS CHOCOLATE BROWN FAUX SUEDE KNEE HIGH BOOTS SIZE 9 , Hoelle Comfort Women's Brown Round Toe Rubi Heel Ankle Boots EU Size 40NEW Women Fashion Shoes Ankle Boots High Heels Platform Booties Casual Round Toe , Old Navy Women's Brown Suede Slanted Fawler Heel Ankle Boots Size US 10 , Size 10 1/2 Ladies Black Patent Page Boots , Merrell Taupe Sz 7 Jungle Moc Classic Hiking ShoeNEW ~Michelle D Stunning Brown Leather Look Knee High Boots Heels Size 8.5 Wide , Nine West Black Boots 8.5 M Patchwork Leather Women Ladies High Heel Fashion 39New Women's Riding Boots Brown Over the Knee Shoes Winter Snow Ladies size 6 , NEW Women Fashion Shoe Motorcycle Combat Knee High Boots Military Riding Comfort , New Womens Skechers Suede Ankle Boots 48718 Black (E20)Spot On Ladies - Mid Heel High Leg Boots , LANDS' END Soft Brown Leather Ankle Boots Shoes w/ Orange Leaf Pattern Women's 6 ,

More Stories

LifeStride Women's Xandy Riding Boot, Dark Tan, 6 W USMAG 39 TAN LEATHER OLD SCHOOL ANKLE BOOTSGLOSSY RAIN BOOTIES WOMEN MARSALA-100-05 HENRY FERRERA BLACK , Womens Faux Suede Block Heels Chunky Ankle Boots Shoes Booties Buckle FashionMIA Ankle Boots Size 9.5 Grey-- NWOT $49.99 , Via Spiga Fashion Knee High Boots Tall Leather Zip Heel Black 7.5 M ItalyNew Bucco Women's Black Knee High Boots Elastic Detail Size 7MSoft Style by Hush Puppies Women's Gleda Ankle Bootie, Taupe Nubuck, 9.5 M USJoe Browns Raven Women's Embroidered Side Zip Up High Heel Ankle Boots New , Bottes Cuissardes Sexy Zip Cuir Vernis Talon Aiguille 12 cm !Du 34 au 43!Neuves! , Madden Girl Womens gabby Almond Toe Ankle Fashion Boots, Black, Size 9.0Athleta Scout Slip On Sneaker Dr. Scholl's,Gardenia Mesh/Leather SIZE 8Spring Step SLINGBACK SHOES SIZE 41 open Toe Casual Comfort Brown Suede Sandal , Sperry Top Sider Women's Gold Cup A/O Raspberry Boat Shoe 6.5M , Naturalizer Women's Caldo Boot, Navy, Size 6.0 , NIB TORY BURCH $228 BLACK FLORAL MINNIE TRAVEL BALLET FLAT SHOE/Sz 6Marc Joseph NY Fashion Shoes Wall Street Tassel Loafers, Black MetallicWomen’s Shoes Camper PEU SENDA K400054 Boots Sz 5Reef Women's Salty Island Multi Tweed 6 M US , V 1969 Italia Womens Ballerina E08 SATINATO BORDO'Miz Mooz Women's Maria Ballet Flat, - Choose SZ/ColorSergio Rossi Ballet Flats, Black Suede, Size 38.5, NWBAGL Womens Red Suede Leather Ballet Flats Sz 36.5 , Saucony Women's Ride 9 Running Shoe, Pink/Berry, 5.5 M USSkechers breathe Easy Established Charcoal Gray 8M 8 Medium comfortable $80 , ASICS GEL-Lyte III - Green - WomensEverlast Sport Women's Silver Spark 2 Athletic Sneaker Shoes Sz 9 MediumCole Haan NikeAir Soles Women's 9.5B Suede Leather Wedge Brown Ankle Boots , 02-1742 CHINESE LAUNDRY KRISTIN CAVALLARI KANE KID SUEDE SIZE 9.5 , YRU Youth Rise Up Qozmo Hi 2 Pink Tall Womens Platform Sneaker Shoes Goth Punk ,