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.

CLARKS originaux x goodhood femmes,érable unisexe,édition limitée, D , Remonte Sporty Mary Jane (R3510) Shoe - NIB - Free Shipping , Eric Michael Womens Shoes NEW Bella Snake RED Leather Penny Loafer 41Yosi Samra Women's Samara Ballet Flat Pure Gold Metallic Leather FlatsEarth Intrepid Black Soft Buck Size 11 M , GIUSEPPE ZANOTTI DESIGN Shoes 230067 GreenxMulticolor 36NEW WITH TAGS COLE HAAN WOMENS FAUX BLACK CROC LEATHER LOAFERS 6.5B MSRP $198 , See By Chloe Shoes 350976 Grey 37 , Tory Burch Verbena Leather Smoke Roccia Black Ballet Flats Womens Size 8.5 M* , Mani 51238 Lime / Silver Snakeskin Print Stamped Leather Flats 36 / US 6 , GIORGIO ARMANI Shoes 564891 Black 35Vince Camuto Signature Women's Timotha Buff Calf Hair Loafer Flats , NEW J.CREW EVERLY CRACLED METALIC LEATHER PUMPS, A1109, SIZE 9.5 $255Apex Women's A3000WX09 Oxford Flat Black Size 10.0 , Butter Women´s Joyce Nude Leopard Leather Slingback FlatsSTEVEN by Steve Madden Womens Doris Closed Toe Suede Fashion Boots, Tan, Size 11ISABEL MARANT ETOILE Shoes 985781 BrownxMulticolor 37 , Ne-net Shoes 977586 Brown 01BALENCIAGA Shoes 172412 Black 36 , FABIO RUSCONI Shoes 700118 BeigexMulticolor 38La Redoute Womens Comfortable Leather Ballet Pumps , NEW J.CREW LEATHER OXFORDS WITH FRINGE, F4979, SIZE 10.5, WARM SEPIA, $228tricot COMME des GARCONS Shoes 174780 Brown 23.5cm , chausser Shoes 683914 Brown 23.5cm , JCREW BIELLA HIGH-HEEL LOAFERS - SIZE 8 - SOLD OUT!!BURBERRY (4 - 7 Yrs): Blue, Leather, Sneakers w/ Logo Sz: 11.5 $350 MINT!!DOLCE & GABBANA - D&G Purple Patent Leather Gold Buckled Mary Jane Flats 6.5 37 , wh99 HOGAN shoes silver leather women ballet flats , YVES SAINT LAURENT rive gauche Shoes 696468 Brown 37

More Stories

Brinley Co Womens Henley Open Toe Ankle Fashion BootsChapter-13 Mid Calf Synthetic Zipper Low Heel Women's Casual Boots Black -- , Vintage 90's Reebok Hiking Boots Women's Size 7.5 Brown Suede Leather Purple , new ladies Black 1"block Heel gold stud side elastic Sexy Ankle Boot Size 6PADORA BY CHARLES BY CHARLES DAVID CB207-K4 ANKLE BOOT BROWN 10 MMODA FUSION ASTOR WOMEN'S CUTE BLACK FASHION BOOTS ON HEELS SZ 7.5 VERY GOOD+Ladies Rubber Cowboy Boots Western Design Multi Swirl Available Sizes 9 &10 NIB , Boot G by GUESS Tammie Espresso , madden girl Kiickbak Strappy Knee High Side Zip Boots, CognacBoot G by GUESS Brittian Black , Tory Burch Lonnie Flat Logo Espadrille Canvas Soft Patent Chambray 6374 Sz 7.5 , Eastland 2562-29 Womens Sunset Mlb Blue Jays Boat Shoe- Choose SZ/Color.Nine West Womens Mai Suede Ballet Flat- Pick SZ/Color.Ladies Padders Double Strap Casual Shoes Caitlin , Artemis x Anthropologie Womens Silk Loafers Shoes Pink Rose Size 36 NewJOSEF SEIBEL Ladies 'REBECCA 33' Clogs Bozen/ Kombi Sz. 11 M (42EU) NIBKenneth Cole New York Women's Blair 2 Espadrille , Merrell OrthoLite Women's Black Leather Mary Jane Flats 6.5Belvedere Women's Alba Genuine Snake Rubber sole Pink Shoes 0J3 , 54649 auth BOTTEGA VENETA midnight blue suede leather INTRECCIATO Flats Shoes 38 , Tory Burch Mini Miller Lizard Embossed Ballet Flats Shoes Size 8 M White NEW (K) , Le Silla suede black red Crystal ballerina Flat Size 38Adidas Womens Flb_Runner W Green Running Shoes Size 7.5 (11834)Dr. Scholl's Shoes Women's Frankie Mesh Ballet Flat - Choose SZ/ColorStuart Weitzman - Bmoc Loafer - Women's Size 8.5 M - Black Suede , ASICS Running Shoes LADY GEL-KAYANO24 TJG758 Soft Gray US9.5(26cm) , Nike Women's Size 10 Tanjun Black White Training Running Athletic Shoes F3-134adidas Originals Superstar BW 35 Slip On women's 9 lifestyle shoes NEW BY9138Women's womens nike shoes size 9 Athletic ShoesWomen's Saint Laurent Smoking Slippers 38.5 Flats ,