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

Original Black SAS Bounce Women Black WW Extra Wide 0001-020 Extra Women 8db79ab
Original Black SAS Bounce Women Black WW Extra Wide 0001-020 Extra Women 8db79ab -

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 J. CREW BIELLA TASSEL LEATHER LOAFERS SOFT SAND YELLOW 7.5 Rtl $248 ITALY , JCREW COLLECTION Sadie Ankle Strap Flats In Zebra Calf Hair F7988 SZ 7Minnetonka Moccasins Mens boat style size 8.5chiara ferragni shoes pink blue fireSTUART WEITZMAN Loafers Black Perforated Suede Shoes Women's US 8.5 $395 , Ferragamo Women's Size 7.5 Gancio Bit Leather Slip On Loafers Shoes Brown $520 , Diesel Black Gold CLEO-LU Oxford Womens Fashion Casual Tan Leather ShoesJimmy Choo Cannon 39 9 Burgundy Suede Pointed Toe Slip On Platform SneakersNaot Kirei Shoe - Black Madras Leather / Shiny Black / Black Patent - 38 (W , Badgley Mischka Gigi Crystal Pointy Toe Flat, Ivory Satin, Womens Size 7 , Marc By Marc Jacobs Helena Black Womens Shoes Size 9 M Flats MSRP $375 , NIB Dansko Delphina Peep Toe Leather Side Zip Ankle Bootie in Taupe NubuckDansko Women's Loralie Mary Jane Flat Black Size 7.5 , New Madewell The Elinor Loafer in Leather Black Sz 10 F5096DONALD J PLINER REESE BLACK GLITTER LEATHER/SYNTHETIC SNEAKERS SIZE 11 M - NEW , Freda Salvador Chance Black Womens Shoes Size 8.5 M Flats MSRP $385NIB COLE HAAN D41094 MANHATTAN BALLET Black Leather Flats size. 6 FREE GIFT LOOKTory Burch Trudy Nude Patent Leather Ballet Bow Flats Ladies Size 9 , Versace 19.69 7647 NAPLAK NERO Loafers Women's Black US , Stuart Weitzman Incircle Dressy Navy Suede Low Wedge Flats w/ Gems, Size 6M, NIB , NEW Free People Jeffrey Campbell golden brown Suede Fringed Block Heel Shoes 7.5NEW Anthropologie Coque Terra rose gold Metallic Leather Zip Ankle Boot 37/6.5-7 , NEW Gemma FRYE Sheepskin LOAFERS Boat Shoes Womens SZ 10 * Rtl $200+ AWESOMEMarc Joseph New York Grand Street Hardware Loafers - Women's Size 9.5, TanArche 'Onara' Flat- Blue -Size 7 US/ 38 $350 (P44) , BUTTER, SARINA BALLET FLAT, WOMENS, BLUE COAT, US Size 7 M, NEW WITH BOXNWOB FRYE "Melanie" Off White Leather T-Strap Ballet Flat Women's Size 8.5 M ANBMiu Miu Silver Glittered Crystal Embellished Ballet Flats SZ 38.5 , Tory Burch Women Loafers Blue Slip On Rhinestone Crystal Bow Ballet Flats 8.5 M

More Stories

Yuu Women's Saynie Wedge Ankle Booties - Black - Size 5.5 M , Golden Road  Women's Black Embossed- Accent Biker Boot Side Zip Up. Size 8MNine West Brown Ankle Booties 9.5 , New Bongo Women's Bongo Logan Knee-High Riding Boots (C15)Bass BROWN Malaya leather upper women's size 7 M , Khombu Melanie Waterproof Winter Boots, Black Multi, 6 M USNot Rated Women's Kyla Ankle Boot, Taupe, Size 6.0 aH2q , Charlotte Russe Black Studded Buckle Adjustable Faux Leather Women's 11 BootsRF ROOM OF FASHION Snow Boots Black PU Size 7Pajar Canada Black Leather Ankle Boots w/ Shearling Lining, Heritage Collection , Aerosoles Fortunate Front Zip Scrunch Ankle Boots, Grey, 8.5 US , NIB Free People Cecile Velvet Ankle Bootie Boot Block Chunky Heel Sz. 37 US 6.5Badgley Mischka Women's Sasha Ballet Flat - Choose SZ/Color , Lanvin Womens Ballet Flats Size 38.5 Black Leather Crystal Trim Slip On , Fitflop Womens Uberknit Ballerina Crystal Black Ballet Flats 9 Medium (B,M) 7120$228 ELIE TAHARI ALENA Butterscotch Brown Leather Designer Flats 8.5 , SO CUTE! Women's $450 Stubbs and Wootton Velvet "BOW-TIE" Slippers Loafers ShoesChloe Lauren Scalloped Suede Ballerina Flat, 38, Pink , Paul Green Dazzle Studded Wedge Loafers, Black SuedeNEW TORY BURCH 'Eloise' Ballet Flat (Nordstrom Exclusive)mocassins TOD'S CUIR NOIR pointure 38ATTILIO GIUSTI LEOMBRUNI Bow Platform Sneaker Black Size 7.5 MSRP $375 , Reebok Runtone Action Women's Running Shoes Gravel/ Berry/ Silver Size 7.5(US) , Vibram FiveFingers Womens Size 40 Bikila W346 Blue Barefoot Running Shoes , $315 VIVIENNE WESTWOOD ANGLOMANIA X MELISSA NAVY GLITTER SCENTED HEEL SHOES 10M , Rothy's Bottle Blue Loafer size 8.5Adidas Tubular Dawn Women’s Size 8 Black Metallic Knit Running Shoes BZ0629 NEW! , Propét Propet Women's TravelActiv Zip Walking Shoe Silver/Lime Size 8.0Asics Gel Cumulus 18 Running Shoe- Women's Size 8.5, Silver/Pink Glow/Teal , Women's Studded Ankle Booties 2 pair Boots ,

Original Black SAS Bounce Women Black WW Extra Wide 0001-020 Extra Women 8db79ab -