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

Under Armour Gemini Women's Speedform Under Gemini 3 - Choose SZ Choose/Color ad948d5
Under Armour Gemini Women's Speedform Under Gemini 3 - Choose SZ Choose/Color ad948d5 -

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 Balance Women's 775v2 Comfort Ride Running ShoeRockport Women's Truwalk Zero Moreza T-Toe Walking Shoe - Choose SZ/ColorSkechers Women's Skech Air Extreme Awaken Fashion Sneaker - Choose SZ/ColorNew Balance Women's WLPROV1 Classice Court ShoeReebok Women's Harmony Road 2 Sneaker - Choose SZ/ColorSkechers Performance Women's Go Train Walking Shoe - Choose SZ/Color , PUMA Women's Suede TSSL Wn Sneaker, - Choose SZ/ColorReebok AR2969 Womens Twistform Blaze 2.0 Mtm Running Shoe- Choose SZ/Color.Fila 5SH40030 Womens AscentTrail Runner- Choose SZ/Color. , DC ADJS300147-BKW Womens Evan HI Skateboarding Shoe- Choose SZ/Color.Mizuno Wave Catalyst-W Womens Running Shoe- Choose SZ/Color.PUMA DUPLEX EVO GOLD WN'S-W Womens Duplex Evo Gold Wns Fashion SneakerPUMA 36111202 Womens Suede Elemental Wns Fashion Sneaker- Choose SZ/Color. , DC Heathrow SE Skate Shoe-W Womens Shoe- Choose SZ/Color.Skechers Performance Women's Go Run Ride 6 Running Shoe - Choose SZ/ColorPUMA Women's Fierce Strap Metallic Wn's Cross-Trainer Shoe - Choose SZ/ColorAsh Womens Idol Bis Fashion SneakerEU/- Pick SZ/Color. , SKECHERS USA Inc 12452 Womens Flex Appeal-Stiches Sneaker 10- Choose SZ/Color.Reebok BD6046 Womens Skycush Evolution Woven Track Shoe- Choose SZ/Color. , Mizuno Women's Wave Bolt 5 Volleyball ShoeECCO Womens Sense Sport Fashion Sneaker /9-- Pick SZ/Color. , Merrell Women's Siren Sport Q2 Mid Waterproof Hiking Boot, Dusty Olive, 8.5 M US , Under Armour Women's Charged Reactor Run Shoe, - Choose SZ/Color , PUMA Women's Fierce Slip-On Wn Sneaker, - Choose SZ/ColorPUMA Women's Ignite Limitless Weave Wn Sneaker - Choose SZ/Color , New Balance Women's Vazee Prism V2 Running Shoe , adidas CP9517 Womens Energy Cloud V Running Shoe- Choose SZ/Color. , Skechers 14050 Performance Womens Go Walk 3 Dominate Walking Shoe , Skechers 49125 Womens Easy Going-Super Chill Fashion Sneaker- Choose SZ/Color.

More Stories

Colorado Women’s Winter Duck Shoes Thinsulate Steel Shank Thermolite Sz 8Maui Surf Company Tan Boots Size 8 , LUCKY BRAND FRINGED BOOTS 6.5 6 1/2 NWOB , Style & Co. Aria Western Ankle Boots, Black, 8.5 US, Black, 8.5 US , Rieker Ankle Boots Black Leather Slip On Block Heel Booties Size 39 EUR , Nine West Pickwickl Natural Brown Full Zipper Textile Knee Boot 7 1/2 M Heel , Tommy Hilfiger Womens Boots Black Leather Below Knee Heeled Zip Up Shoes Size 7 , Merrell 200g Insulation Polartec Womens Sz 11 Leather Winter Waterproof Boots , Isaac Mizrahi Suede Peep Oval Toe Side Zipper Booties Black 8.5W NEW A271831LifeStride Womens dee Suede Closed Toe , A8 NEW COLE HAAN Silver Metallic Leather Grant Driving Moccasin Shoes Size 9.5 BWomens Musse & Cloud OTK Boots Joyse Over The Knee Leather Heeled Taupe Tall 7 , Vtg Hush Puppies Womens Sz 8.5 Blue Suede Loafers Tassels Slip On Shoes NEWJoan & David Davinton Collection Sz 8 Brown Patent Leather Loafers Slip On Shoes , MBT shoes gray suede women ballet flats AC462 , Brunello Cucinelli Women's Ankle Strap Heels With Snake Skin NEW IT 37 US 7 BW84NIB TORY BURCH NAVY LEATHER AMBROSE GOLD REVA CAP TOE BALLET FLATS 10 , FitFlop Women's FRINGEY Sneakerloafer Ballet Flat, - Choose SZ/Color , Munro Yacht Slip On Coconut Women's Sneaker Sz 9.5N 4825 , Com + Sens Womens Lirassa Canvas Low Top Slip On Fashion Black Size 6.5 vqMgNike Womens Size 8.5 Tanjun ENG White Athletic Running Training Shoes F5-177VANS Palisades Vulc Ombre Stripes Surfsider Vault Lady size USA 7 , Birkenstock London Brown Gloss Leather Closed Footbed Shoe Women's US 7 , Ladies Fly London Yaba Mousse Leather Peep Toe Holiday Shoe Wedge Heel All Sizes , Pleaser Women's Adore 708G Clear PVC/Royal Blue Glitter InsertNew Women Platform Wedge High Heel Sport Sandal Fashion Sneaker Breathable BootsWomen's Junya watanabe Flats , Women's olive green ankle boots BootsWomens Knee High Boots Rivets Chunky Heels Slim Fit Round Toe Shoes Faux Suede , Gotta Flurt Women's Swerve II Black Tumbled Synthetic High Tops

Under Armour Gemini Women's Speedform Under Gemini 3 - Choose SZ Choose/Color ad948d5 -

Athletic Shoes