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

Bearpaw Women's Zoe Ankle Bootie Black II Suede Women's Ankle Hook Suede and Loop 7892a30
Bearpaw Women's Zoe Ankle Bootie Black II Suede Women's Ankle Hook Suede and Loop 7892a30 -

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.

NIKE LUNAR AF1 FORCE 1 FLYKNIT WORKBOOT [Wmns Sz 9] $200- , Creative Recreation Cesario Low top (khaki / white / safari) WCR4LO18- Size 8 , Puma Complete Vectana 3 Quarry/Gloxinia-White 185777 05 Women's SZ 6.5JARLIF Women's Lightweight Jogging Training Running Shoes Athletic Walking...Womens Leather Trainers With Copper Heel CounterASICS GEL-Lyte III H6E5K-4444 Athletic Running Sneaker Shoe For Women Size 10Nike Air Presto Prm Pink , Silt Red, Stardust Sz 10M Style 878071 601 New , Asics Gel-Exalt 2 Running Women's Shoes Size 5 , Saucony Ride 7 Gtx Women's Shoes Size 5 , Nike Zoom Fit Fitness Women's ShoesWomen's Asics GEL-Nimbus 20 Running Athletic Shoes Black Blue Yellow GreyNike Air Force 1 2007 Ltd Ed Mid Women's Basketball Shoes Obs/Wht/Vlt Sz 8.5(US)Cole Haan Women's Grand Crosscourt Slip-On Marine Blue Perf 9.5 B USSaucony Women's Omni 16 Running Shoe, Grey Blue, 12 B USChristian Audigier Stact Skulls & Roses Leather Sneakers Sz 7 M NIB MSRP $159.99steve madden TWYNKLE TAUPE SUEDE SNEAKER SIZE 8MWomens Nike Air Zoom Vapor X HC Vast Grey, Black, Pink. Court Shoe, Tennis , Kuru Quantum Shoes Womens 7.5 Plantar Faciitis Walking Running Orthotic TrainersEasy Spirit Women's FRENEY8 Sneaker, Taupe, 9 M US , Saucony Women's Ride 9 Running Shoe, Navy/Blue/Pink, 7.5 W US , Adidas Women Running Shoes Lite Racer CLN Fashion Sneakers Boots Gym New BB6896 , Clorts Women's Lightweight Athletic Sandal Outdoor Seaside Water Sneaker RoseSkechers RESILIENT Sport Women's D'Lites Slip-On Mule Sneaker Choose Size ColorASICS Women's Gel-Cumulus 18 Running Shoe, Aqua Splash/White/Pink Glow, 8 D USDickies Men's Vanquish Health Care & Food Service Shoe - Choose SZ/ColorNew Balance Women's wx857v2 Casual Comfort Training Shoe, White/Blue, Size 8.5 ANike Wmns Tanjun Black Gold White Women Running Casual Shoes Sneakers 812655-004Altra Women's HIIT XT Cross-Training Shoe, Black/Purple, 10.5 B USPUMA Women's Suede Classic Sneaker - Choose SZ/Color ,

More Stories

MINNETONKA Ladies Suede Moccasin Boots Size 7MWomen's Toe Warmers Booties Trek Black/Black 6M , Womens 12" Mid Calf Australian Classic Tall Boots Faux Sheepskin FurNEW BRANDED LADIES WOMENS WINTER BIKER FLEECE MID CALF ZIP BOOTS LOW HEEL SHOES , Maurices Women’s Boots Size 8m. Very Good Condition. Brown With Double BucklesLadies Down To Earth Ankle Boots F5843Minnetonka Brown Suede Boots 9 NWOT-Faux Fur Lining-Faux Fur on Exterior , Rockport Womens Mid Calf Leather Zip Up Boots Womens Size 8.5M Brown 3" HeelVery Volatile Tan Fringe Back Zip Ankle Booties Size 7 , Isaac Mizrahi Kayln Dark Brown Suede Wedge Ankle Boot NEWVivienne Westwood Anglomania Melissa Chelsea Boots Black Woman US 9 , New Vince Camuto Pazell Tall Black Women's Leather Knee-high Riding Boots 6.5Marc Fisher Women's Kattie Ankle Boots Brown Leather Size 10 MBlondo Villa Waterproof Leather Booties, Women's - Size 6.5 M, Black , JOE’S Booties Size 8.5 Chainmail Tip Boots Suede Leather Pull On NEW , Emotion Womens Carved Brogue Chelsea Ankle Boots Wingtip Shoe Size 11 EEE WideMarc Fisher Grey Suede Serenity Peep-Toe Ankle Bootie 10 W SALEEasy Spirit Womens Nalli Leather Almond Toe Ankle Fashion Boots, Tan, Size 7.5 lSalvatore Ferragamo Coral Leather Flats US 7Dansko Patten Leather Clogs Black 36Taryn Rose KATHLEEN Orange Snakeskin Embossed Comfort Wedge Heels Sz 8MValentino Garavani ROCKSTUD Light ivory BALLERINA FLAT SHOES Size 36.5NIB $250+ Tory Burch ALLIE Ballet Flat Shoe Black Sz 6.5 Heidi REVA LogoVaneli FTwear FC-313 VANELi Womens Fc-313 Dress Flat,Navy,8 M USSTEVEN by Steve Madden Women's Pace-s Flat - Choose SZ/ColorSkechers Multi-Knit Slip-On Bungee Sneakers - Visions- Taupe 8 Medium , Cole Haan Womens Marcellesam Cap Toe Ballet Flats, Black, Size 6.0 , Womens Leather Trainers With Copper Heel CounterWomen's Propet Women's Tami Casual Shoe Athletic Shoes24 HOUR COMFORT Ingrid Women Wide Width Comfortable Leather Slingback Clogs ,

Bearpaw Women's Zoe Ankle Bootie Black II Suede Women's Ankle Hook Suede and Loop 7892a30 -

Athletic Shoes