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

BareTraps Riding Dallia Scrunch Toe Brown, Riding Boots 892, Dark Dark Brown, 8 US c8d663b
BareTraps Riding Dallia Scrunch Toe Brown, Riding Boots 892, Dark Dark Brown, 8 US c8d663b -

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.

Olive Street Short winter boot LLF042 Blk 8 womens 7.5Dollhouse black ankle boots size 8 Vented Strappy Sexy Look 5" HeelsHi Tec HI-TEC Women's Black Kneehigh Pleather Boots Rain Rainboots - SZ 8 , LL Bean Gortex Women's Hiking Boots 6 1/2 , Womans UNBRANDED Leather Brown Fashion Cowboy Boot Shoes: 7 1/2 M , JESSICA SIMPSON 'Hazell' Black Leather Ankle Boot Heels Buckle Women's SZ 10MNINE WEST 7 M Black/ Green Patent Leather 4" Heel GOOR Ankle BootsCrown Vintage, Tess Platform Pump, Women size 9.5, brown, WORN ONCENice Fall Womens Size 8.5 Coconuts Gaucho Cowboy Boots ~ Bronze Copper!!HARDY DESIGN WOMEN HYDE COGNAC SUEDE BOOTS SIZE 10M , Mata Womens Distressed High Heel Black Sandals Booties Sz 7.5 NEW/Store DisplayNEW WOMENS MONROE & MAIN RUST COLOR IZZIE BOOTS SIZE 6M 6 MWomen's Suede Boots Size 9 Tall Brown Target Shoes Buckle Faux Fur Lined , NEW! Candies 73277 Womens Einstein Black Taupe 118K laSofft Womens Boots Brown Suede Size 9.5" Balsov Leather Straps Stack Heels 3.75" , Women’s Lug Heel Street Feet ShoesH&M Black Suede Chunke Booties High Ankle Boot size 37 7 M Chunky Heel Women'sLAUREN RALPH LAUREN 'Medora' Brown Giraffe Print Calf High Heel Size 7B zip bootVince Camuto Women's Suede Maves Heeled Pull On Ankle Moto Boots Size 6.5M , NEW WOMENS DOLCE BY MOJO MOXY BLACK TINKER BOOTS SIZE 8.5M 8.5 M , Unisa Womens Loafers Shoes Brown Suede Genuine Leather (J)Naturino Spring Step Rain Boots EUC 36 US 5.5 SuedeMadeline Leather Slouch Brown Boots Lined Sz 8Nine West "Gogetito" Brown Suede Leather Wedge Short Boots Size 7.5M , Red Wing Worx Women's Shoes 7M Genuine Leather Upper-Black-Clog Style , LaCrosse womens cold weather hiking/winter waterproof boots (size 7 m)NEW Womens Short Wrinkle Slouch Ankle Boots Flat Heel Suede Booties BLK GRY Size , TS35 Kaarmen Side Cutout Peep-Toe Ankle Booties 521, Grey, 7.5 USAMERICAN EAGLE Black (Suede Look) Mid-Calf, Riding Boots Women's Size 9 ,

More Stories

Sam Edelman Boot Black Willow Knee High Size 7.5 Boa Snake Print High HeelWomens Liz Claiborne Cecil Ankle Boots Side Zip High Heels Brown Sz 6M , New ladies Black 4"Stiletto High Heel Sexy Long Knee Boots Pointy Toe Size 7 , Minnetonka Womens 299 Black Suede Hi Top Back Zipper Boot Hardsole Boot sz 7Nordstrom Black Suede Platform Wedge Tall Zipper Boot Sz 9.5I35 Fedee Harness Strap Riding Boots 873, Cognac, 6.5 USWomen's Knit Booties Size 8.5 Beige Rocket Dog EU39 Spark Bootie Short BootsBeverly Feldman Womens Shoes Size 6.5 Black Textured Suede Mid Calf Boots , L Womens Ankle Pull On Boots Mid Block Heels Booties Leather Boots Chelsea ShoesDansko Women's Diana Mary Jane Size 6 M USWomens Jessica Simpson Rallie Tall Cuff Boots Black Suede Size 8.5Thick Penguin Pattern Snow Casual Boots Ski Snowboard Sports Warm Ankle Shoes , i.n.c. international concepts knee high heeled boots women size 7 , Aldo Thiasa Black Womens Shoes Size 8.5 M Sandals MSRP $90 , Tory Burch Reva Ballet Leather Flat Black Women Sz 6 M 2814 , oXs ITALY WOOBIE Leather Sneakers Travel Shoe 8.5, 10 NIB Black~Navy~Blue $285Sam Edelman Felicia Black Leather Ballet Slippers Flats Shoes 10 New , JEFFREY CAMPBELL Vionnet Smoking Flats Pointy Toe Loafer Sz 8 Beige NEW (RK160)Tod's 60 Orange Suede / Leather Silver Hardware Ballerina Flats 38 / US 8 , $570 New Charlotte Olympia White Polka Dot Leather Kitty Flats Shoes 37 40.5 , Walking Cradles Women's Flynn Ballet Flat Tobacco Leather Flats , Women New Sports Casual Shoes Breathable Soft Thick Sole Flat Running ShoesBernie Mev Women's Maile Fashion Boot, Turquoise Mix, 36-41 M Medium USAna Lublin Shoes Woman Mocassins Short Elegance casual Pink 73368 Outlet BDX , Andrew Charles D126 VERNICE NERO CAMOSCIO TAUPE ballerina shoes Women's Taupe US , Cole Haan Women's Green Leather Pinch Slip-on Loafer Size 7.5 , Nike Court Force Hi Premium Madeira/Madeira-Black Cheetah 317072-221 SZ 8.5Converse Women's CT All Star Daybreak 551632C Sneakers Multi RRP BCF73 , $125 Under Armour Womens Street Precision Slip Fabric Low Top Slip On Size 10Women's Skechers Women's You-14958 Sneaker Athletic Shoes ,

BareTraps Riding Dallia Scrunch Toe Brown, Riding Boots 892, Dark Dark Brown, 8 US c8d663b -