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

Marc Fisher Humor2 Over the Knee Humor2 Boots 455, 2564 Black Boots Multi, 6.5 US 7aa1a66
Marc Fisher Humor2 Over the Knee Humor2 Boots 455, 2564 Black Boots Multi, 6.5 US 7aa1a66 -

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.

BCBG Girls Cowboy Boots Copper Bronze Metallic Leather Western Women's 7 BVince Camuto Sashe Rust Verona Suede Tall Boots size 6.5 , BOUTIQUE 9 WOMENS SLOUCH FUR LINE BLACK SUEDE HEELED ANKLE BOOTIES SZ 6.5 , Womens Eastland Overdrive Brown Leather Ankle Boots Size 7.5M. , Sporto Minor Mid Calf Soft Linded Waterproof Winter Boots 387, Black, 9 US , NEW Kamik Kenya Blue Leopard Animal Print Rainboots Rain Boots Size 7M US , Easy Spirit Brown Prisco Ankle Short Boots Suede Leather Faux FurKhombu Quechee Stingray Snow Boots 378, Brown, 5 US , Womens Shoes Enzo Angiolini Easaylem Tall Side Zip Brown Leather Boots Size 10MCape Robbin ANNIE-4 Nude Rose Gold Rhinestone Slouch Ankle Boot Kitten Heel , Cape Robbin Gigi-16 Black Stretch Pointed Stiletto Designer ankle Dress BootieSC35 Ciley Sherling Lined Mid-Calf Winter Boots, Grey , Vintage acme Womens Western cowboy boots Size 5.5 D Leather USA MadeRoxy Idaho cam brown suede boots womens size 10 synth fur lined Orig $70.00Clarks Artisan 82798 Women's Black Leather Ankle Boots - Size 8 1/2 Narrow , New KENNETH COLE Cue The Music Sequin Embroidered Block Heel Bootie 9.5 , Saks Fifth Avenue New York Women's Leather Boots Bootie Heel Made In Italy Sz 37 , Life Stride Womens Size 6M Wide Calf Stark Brown BootsCape Robbin Mona FRONT ROW OLIVE vegan Stretch suede High High BootsSporto Charles Angled Calf Waterproof Winter Boots, Marsala, 8 US Used , B35 Rene Over The Knee Boots 925, Black, 7 USHot Tomato Pink Camouflage Western Boots, Size 10 Wide , Boutique 9 NEW Sexy Bridge Beige Womens Shoes Ankle Heels Boots SZ 6 M MSRP $180 , Matisse Leather Ankle Boots Snake Sz 10M , SC35 Jamila Dress Ankle Booties, Gris, 9 US DisplayWOMEN'S JOHNSTON MURPHY TALL KNEE BLACK BOOTS 6.5 SLIP ON WITH BUCKLESNIB Dawgs Women's 13" Microfiber SheepDawgs Boots Size 8 Chestnut , Softwalk Ramsey Ankle Boots - Women's Size 8 W, Burgundy , Sperry Top-Sider Womens Rain Shoe 6.5 Cormorant Turquoise Blue Rubber Booties

More Stories

VTG WOMENS DAN POST COWBOY LEATHER GRAY BOOTS SIZE 6.5 C DEFECTS , BAMBOO Nature nn New Sequins Faux Fur Interior Womens Ankle Boots Shoes Sz 8.5 , NICE! womens shoes SUNDANCE red western cowboy boots sz 9 M Made in USA , Rampage Tempest Women's Boots Size 6.5 M BrownWomens STEVE MADDEN NIPPER Leather Ankle Moto BOOTS BROWN Booties 6 Boho ShoesJoan Rivers Signature Slingback Pumps 8M A97790 , ZARA BASIC Brown PULL ON ANKLE BOOTS BLOCK 2" HEEL 40/9L Plus Size 4-11 Women's Shoes Warm Fur Lined Winter Short Low Cuban Heel Boots , Zigisoho Women's Brown Canvas Shailene Fringe Zip Bootie Size 10Rocket Dog Women's Rainy Swag Rubber Printed Rain Boot, White Multi, sz 8 , Claudia Ciuti Brown Suede "Dea" Knee High Boots SZ 7.5 , G GUESS Hailee Wide Calf Riding Boots, Dark Brown , Women's Robert Zur Black Woven Casual Shoes EU Size 39 US 9 , Donald J Pliner New Rue Brown Womens Shoes Size 5.5 M Flats MSRP $228 , tricot COMME des GARCONS Shoes White 23.5cm , adidas Women's Cloudfoam Lite Racer Slip-onTory Burch 'Reva' Patent Leather Ballerina Flat - Size 5.5M - $225Women's Frye Carson Ballet Flat Black Antique Soft Vintage LeatherJOYA ORTHOLITE MARILYN BROWN NUBUCK LEATHER MARY JANE SHOE WOMEN'S 9 MINT , JIMMY CHOO - BALLERINES CUIR - NOIR - P.36fr - AUTHENTIQUEUS ARMY CAMOUFLAGE BASKETS SNEAKERS TENNIS CHAUSSURES TOILE 38 FEMME KAKI , New Authentic Black BURBERRY Housecheck Falcony Bridle Flats Shoes 38 7.5 or 8 , Tory Burch Powder Coated ‘Melinda’ Leather Ballet Flat Nude Pink Size 38.5 , Florida Black and White Jon Josef Leather Sandal ClogPUMA Basket Classic Women's Black 36041801 , Inov-8 Men's F-Lite 235 V2 Cross-Trainer Shoe - Choose SZ/Color , Clarks Wave Black Leather Comfort Walking Shoes Women's Size 9.5New Reebok Womens Royalluminapace-W White/SilverMetallic Walking Shoes Size 9 , Women's Easy Spirit Women's Faisal2 Sneaker Athletic ShoesWomen's OLD NAVY 3M Thinsulate Boots Boots ,

Marc Fisher Humor2 Over the Knee Humor2 Boots 455, 2564 Black Boots Multi, 6.5 US 7aa1a66 -