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

Women's Skechers 26196 Burst 2.0-New Avenues Black Women's/White 12656/BKW Memory With Memory Foam 7a3d847
Women's Skechers 26196 Burst 2.0-New Avenues Black Women's/White 12656/BKW Memory With Memory Foam 7a3d847 -

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.

VANS AUTHENTIC ZEBRA GLITTER HOT PINK BLACK SHOES MENS 9 WOMENS 10.5 27 CM NEW , ASICS Women's Fuzex Lyte 2 Running Shoe, Diva Pink/Black/White, 11 M USSalomon Womens Sneakers Hiking Walking Mesh Adjustable Strap Size 7.5Moab edge Merrell hiking shoes size 5.5 coralasics gel kayano 19 - Womens Size 9.5Nike Training Max Air Sneakers Black White Sea Foam Size 8.5 , New Women Casual Sport Leather Spliced Sneaker High Top Hidden Heel Shoes Yoooca , DEMO Under Armor Bandit 3 Size 9 US 39.5 EU Women's XC Running Shoes TriathlonKeds Women's High Rise Nylon Ankle Bootie , Puma Trinomic Disc Hyper Women's Trainers Slip On Shoes Burgundy Size 6.5Volatile Rappin Women's Platform Wedge Sneakers Shoes Size 7.5Womens NIKE black/ green fabric athletic sneakers sz. 7.5 () () , Oboz Women's Luna Low Athletic Hiking Shoe Mineral Blue Size 10M , Womens 9 1/2 Adidas Pro Model Team Color Change Stripe White Basketball Shoes , New Womens Glitter Sequins Floral Hollow Out Wedge High Heels Fashion Sneaker sz , Clarks Hedge Manor 2 Women's Sneakers White Leather Athletic Shoes Size 9.5 M , ADIDAS DURAMO 8 W BB4666 BLACK WHITE ORIGINALS RUNNING WOMEN'S SIZE 5.5 NEW WOB , VANS Chauffette (Natural Stripes) Tan/White Casual WOMEN'S 10 , JAMBU Waterbug-Barefoot Leather Silver Athletic Sneaker Waterproof US 6.5 $129Altra Womens Lone Peak 3 Zero Drop Athletic Support Trail-Running Shoes Size 6.5 , Nike Air Max Women's Black Shoes Leather Sizes 7.5 , Women's Canvas Roman Gladiator Sandals Wedge High Heel Open Toe Fashion SneakersJeffrey Campbell Ibiza Women Sneaker Wedge Black Size 10 Leather Suede Perforate , Womens Ankle Buckle Hidden Wedge High Heels Sneakers Round Toe Shoes 2Colors Hot , WOMENS NIKE AIR MAX NAVIGATE Blue Pink Navy Stealth 454249 400 SIZE 7.5 US , Vibram FiveFingers Toe Shoes W118 - Ladies Size 37. BlackNew NIKE Rival S Sprint Racing Shoes Size 7 Purple Womens Track B , Skechers Performance Women's Go Step Lite-14462 Walking Shoe - charcoal size 6.5 , Women’s 7.5 Skechers Sport Premiere Running Cross Training Shoes Sneakers

More Stories

Kendall + Kylie Womens Violet Brown Booties Shoes 6.5 Medium (B,M) BHFO 5802 , Unknown Brand Women's Brown Suede Zip Up Mid Calf Boots US Size 4 (225 MM) , Womens Block Heels Stretchy Faux Suede Over Knee thigh High Boots Shoes Sizes 40NEW Womens Marc Fisher Black Knee Boots Size 5 R18 ssNEW Womens Totes Corina Snow Boots Black Waterproof - Choose Size! , Khombu Bella Waterproof Winter Boots 660, Black, 8 USBass Ankle Boot Women size 7.5 m Brown SuedeFOSSIL Black Leather Zip Wedge Heel Buckle Boots Size 7.5 , Nature Breeze Goldrush-02 Women PU Almond Toe Buckled Chunky Heel BootieThe North Face Womens ThermoBall II Quilted Winter Boots Shoes BHFO 3225Vintage NIKE Hiking Boots Shoes CALDERA Made in Korea Women's 7.5 Blue Teal7851817 LMSBTS50 Women's Shoe Size 9.5 M Black Leather/Fur Boots Johnston Murphy , Journee Collection Sun Bootie Women Grey 8 M , Jcrew Mesh flats in metallic houndstooth silver black 8 f8477 $158 shoes NEW , Women’s Reba Short Western Brown Leather Boots Size 9 (CON15)Black L.A.M.B. Gwen Stefani Suede/Leather Platform 5" Stiletto Bootie Boot 9.5 , NIB stuart weitzman slip on loafersNIB Dansko Professional Clog in Black Metallic Suede , Sperry Top-Sider Womens A/O Fleck Canvas 2-Eye Boat Shoes Size 9 Denim Style , TOD's Black Leather Moccasins Loafer Women's Shoe Size US 9,J.CREW HARPER CUTOUT FLATS SIZE 7,5M MISTY ORCHID , Ralph Lauren Purple Label Black Rianne Kidsuede Leather Flats Spain $495 Sz 38.5Auth FENDI Vintage Pequin Pattern Sneakers Shoes Brown Black Italy YG01969 , CHIE MIHARA SHOES REINA BALLET FLATS FLOWER APPLIQUE PURPLE SUEDE RARE 38 , BY272 MBT shoes brown leather women moccasinsNautilus Women's N2485 Composite Toe Adv ESD Athletic Work Shoe Grey/Aqua , Pleaser Women's Adore 709VLRS Ankle-Strap Sandal White Patent/White , Nike Metcon 2 Women's Cross Training Shoe 821913 004 Size 12Women's Prada Beige Boots Size 38 Boots , Womens Rhinestones Kitten Heel Pull On Winter Chic Mid Calf Boots Shoes Plus Sz ,

Women's Skechers 26196 Burst 2.0-New Avenues Black Women's/White 12656/BKW Memory With Memory Foam 7a3d847 -

Athletic Shoes