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

Womens Size 6 27257 B Justin Justin Cowboy L3713 PEARL LUSTER Roper Western Cowboy Boots b9e4daa
Womens Size 6 27257 B Justin Justin Cowboy L3713 PEARL LUSTER Roper Western Cowboy Boots b9e4daa -

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.

Style & Co. Womens Saraah Closed Toe Ankle Fashion Boots, TBDCognac, Size 7.5 , Western Chief Women's Ankle Rain Bootie Boot, Black, Size 6.0ROCKY WOMENS BROWN LEATHER BLACK RUBBERY SOLES\STEEL SHANK OUTDOOR BOOTS SZ 5$129 NEW INC International Concepts Henry Brown Suede Ankle Boots US 6.5 MClarks Nevella March Womens Brown Suede Casual Dress Slip On Boots Shoes 5.5 , Style & Co. Womens Tiny 2 Suede Closed Toe Mid-Calf Fashion BootsLucky Women's LK-Sancha Ankle Boot Black 6 MMatisse Midcalf Women Distress Leather Fashion Boots Beige VGUC SZ 10$69 Bjorndal Womens Rachel Wedge Chukka Bootie Shoes, Taupe, US 9 , Style & Co Bark Brown SMOOCH Ankle Boot 10 M NIB , BCBGeneration Women's Leather Pull On Ankle Boots Size / US 6 (240 MM)$69 Bjorndal Womens Rachel Wedge Chukka Bootie Shoes, Grey, US 9 , Journee Collection Womens Stormy Wide Calf Almond Toe Knee High Fashion BootsWanderlust Womens Kiara Suede Closed Toe Ankle Fashion Boots Tan Size 9.0 J53IFerragamo Ankle Boots Made in Italy Sz.8.5 B Black Leather/SuedeBare Traps Womens Tainya Closed Toe Ankle Fashion, mushroom micro, Size 7.0 1bnT , $150 NEW Type Z Anna Maria Wide Calf Black Boots 5.0 M , Betsey Johnson Womens Shoes Size 8 M Black Ankle Boots Leather Block HeelsBrinley Co Women's Sunny-wc Riding Boot, Black, Size 8.0 , Bare Traps Womens yuno Closed Toe Ankle Fashion Boots, Mushroom, Size 8.0American Rag Womens Adarra Faux Suede Stacked Heel, Truffle, Size 9.0 , VANELI Rallus Suede Leather Mid-Calf Boot Shoes Tan Brown Womens Size 6 1/2N , Banana Republic Knee Calf Tall Boot NEW Womens Size 9 Tan Leather Wedge Heel Zip , Minnetonka Womens Shoes Size 7 Brown Leather Flat Fringe Moccasin BootsNEW Designer Womens Shoes Size 8.5 Beige Fur Leather Wedge Mid Calf BootsVaneli Made in Spain Style 9408 Black Size 8 1/2 M Women's Leather Boots , VINTAGE 42nd STREET BURNT CORAL LEATHER 14.5" HI WESTERN BOOT SIZE WOMENS 6M , Call It Spring Black Leather/Side Zip Knee High Boots Women's Size 7.5Womens Size 5 M Laredo Red Roper Western Cowboy Boots

More Stories

Brinley Co Women's Julia Ankle Boot , Propet booties womens light brown felt 6 , Charles By Charles David Women’s Mid-Calf Boots Sz 7.5 M Black Leather HeeledTommy Hilfiger TWDEW Womens Black Rain Boots, Size 11 M , Bare Traps Black Leather Buckle Biker Moto Fleece Lined Boots Women Size 7.5 , BLACK GOTH SPIKE SPARKLE COSTUME HALLOWEEN Platform ANKLE HEEL OPEN TOE Size 5.5WOMENS LADIES FAUX SUEDE MID LOW HEEL WEDGE WORK ANKLE BOOTS SHOES SIZE , New Women Flat Wellies Knee High Buckle Rubber Snow Rain Boots Waterproof Shoes , Nina Womens Kristene White Perforated Shooties Heels 6.5 Medium (B,M) BHFO 6440Xhilaration Sox Tab Faux Fur Black Suede Women Boot Winter Comfort Shoe Size 8Fanco Sarto Womens Black Stretch Riding Boots Size 6.5M , JCrew $158 Sloan Suede DOrsay flats mini glitter bow 8.5 black pointed toe AVL , Custom hand painted boots Darth Vader , Aerosoles Womens Shore Fit Closed Toe Ankle Fashion Boots Tan Fabric Size 10.0J.CREW $140 NWT Pink Lottie Bow Ballet Flats Shoes In Satin Size 9 , INC International Concepts Women's Gutsy Oxford (5.5, Black)Dolce Vita Caro Velvet Loafers, 9 , Rockport Cobb Hill Collection Adalia Booties, Women's Size 6.5 M, Wine , Klogs Women's Astoria Clog Black Square Style 0408Preowned Sam Edleman Penny Loafers  Size: US 7.5 Suede Grey Taupe , TORY BURCH WOMEN'S LEATHER BALLET FLATS BALLERINAS NEW ORANGENE F09ECCO Women's Bluma Slip On Ballerina FlatTods Womens Shoes Size 41 11 Brown Solid Leather Loafers Casual , Under Armour 3020130-500 Womens Drift 2 X MNSWR- Choose SZ/Color. , Women's costume national black shoes Flats , Women's Drew Women's Amanda Flats , NOCONA Blue Leather Roper Cowboy Boots Womens Size 6.5 A Style E3180 USAStudio Paolo Womens Boots Giselle Zipper Cognac Man Made size 8.5 NEWNew Fashion Chic Womens Wedge Heels Fur Winter Rhinestones Bowknot Ankle Boots , Work Safety Comfort Shoes White Genuine Leather Women Zara Uniform Size 6.5 New

Womens Size 6 27257 B Justin Justin Cowboy L3713 PEARL LUSTER Roper Western Cowboy Boots b9e4daa -