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

crocs Womens Freesail Chelsea tkphotog-23073 W crocs Rain Boot, Navy M/Floral, 9 M US 817db95
crocs Womens Freesail Chelsea tkphotog-23073 W crocs Rain Boot, Navy M/Floral, 9 M US 817db95 -

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.

Aerosoles PORTRAIT Womens Portrait Boot- Choose SZ/Color.Nautica Womens Lovise Rain Boot- Pick SZ/Color. , Roxy ARJB700411 Womens Laurel Boot Ankle Bootie- Choose SZ/Color. , Nine West Womens Cedar Leather Boot- Pick SZ/Color. , Aldo Womens Kelii Ankle Bootie- Pick SZ/Color. , Bottes Sexy jean Haut Talons Carrés 12 cm ! du 33 au 50 ! 2 couleurs, NEUVES! , Breckelle's Beverly-16 Women Faux Suede Pointy Toe Stiletto Heel Over The Kne... , Steve Madden ROCKING Womens Rocking Motorcycle Boot- Choose SZ/Color. , Rocket Dog SOUNDOFFVW womens Soundoff- Choose SZ/Color. , Funtasma Womens Gogo-306 Knee High Boot- Pick SZ/Color. , PleaserUSA Pleaser Womens Delight Mid Calf Boot- Pick SZ/Color.Blowfish Frappe Womens Formal Texas Pu Zip Up Two Buckle Strap Ankle Boots NewRoper Short Stuff Womens Western Boot- Choose SZ/Color. , $178 New Splendid Women's Hampton Ankle Boots Moss Nubuck Size 8.5 B(M)T.U.K. Faux Fur Creeper Unisex Fashion Sneaker 6 M- Choose SZ/Color. , Nevados Women's Klondike Mid Waterproof Hiking Boot,Shiitake Brown/Dark Aqua,9 MGlobal Win Women's KadiMaya16YY25 22Boots 7 M US Women's, Brown01 , Rocket Dog TOBIELA Womens Tobie Lewis Pu-Altan Cotton Ankle BootieM , Nine West 25020162 Womens Ballico Suede Ankle Bootie- Choose SZ/Color.Ellie Shoes Women's 253 Amelia Victorian Boot, Black Polyurethane, 6 M USNine West Womens Edoin Leather Boot- Pick SZ/Color.Naughty Monkey Womens Zoey Ankle Bootie- Pick SZ/Color.Seychelles Womens Accordion Ankle Bootie- Pick SZ/Color. , Skechers 48814 Womens DLites Winter Boot- Choose SZ/Color.Rampage Women's Islet Motorcycle Boots, Mid-Calf Low-Heel Buckles Black US-8.5Naughty Monkey NMLB0153 Womens Deco Stytch Boot- Choose SZ/Color.Rocky Women's RKK0223 Construction Boot, Brown, 7 W US!Bottes Cuissardes Aspect Cuir Mode Fashion Haut-Talon carré P35- 45 NEUVES , Dr. Scholl's Shoes Women's Wander Boot Ankle Bootie, Black Microfiber, 11 M US ,

More Stories

Comfort bootie Womens boots grip sole zipper rounded toe 3.5inch 6 6.5 7 7.5 8Womens Sz 10 Shoes Black Suede leather Winter Warm Boots Fluffy Mid Calf , Blowfish Womens sava Closed Toe Ankle Fashion Boots, Grey, Size 7.0 ZNLo , Born Ankle Boots Womens Size 6.5 M Dark Brown Leather Fringe FREE SHIPPING$159 NEW Corso Como Adona Brown Ankle Western Boots New Brandy Size 6.0 MBare Traps Rei Ash Grey Suede Water Repellant Faux Fur Winter Boot NewExtrreme By Eddie Marc Soho Flat Boots Brown with Buckle Size US 10 , New Wild Diva Black Knee High Wedge Boots Women’s Size 7.5 M*Ximena Womens Low Heels Buckle Mid Calf Biker Boots Ladies Winter Shoes Size New , 74% OFF NEW J. RENEE Walkaline Kidsuede Fashion Boots sz 7, 8 Retail $225AQUATALIA by Marvin K KOLD Weatherproof Mid-Calf Black Suede Faux Fur Boots Sz 8 , Women's ECCO Black Mid Calf Leather Boots 38 Euro 7 1/2 US Free Shipping , Melissa Ultragirl Minnie III Disney Collab Flats Women in Black US 8 9 10Aerosoles - CUBECLE Womens Cubecle Ballet Flat- Choose SZ/Color. , COLE HAAN FLEX COMFORT BROWN WOVEN LEATHER PENNY LOAFER WOMEN SHOES 7.5B , womens Low Block Heel oxford Bowknot shoes cow Leather Flats Slip On shoes sizeCOLE HAAN COUNTRY - BLACK & BROWN WOVEN TASSEL LOAFER DRIVING SHOES FLATS-6.5B , Rebecca Minkoff Gwyn Espadrille Loafer 8.5 M Blush Nubuck Snake New w/BoxOLUKAI WOMENS PEHUEA PRINT TRENCH BLUE STORMY BLUE SIZE 8.5 , Rag & Bone Milo Oxford Shoes Black BRAND NEW Size 39 9 , VIVETTA Princi pink leather red toe nail bow upper platform monk shoes EU37 US7Drew Shoe Women's Zippy BootsBrown9 WW , Taryn Rose Women's Darla Loafer Flat - Choose SZ/ColorBahama Morocco Sneaker 2-EYE GREY (STS15657) 9.5M MENAldo Women's Beige Leather Pointed Toe Flats Size 9 , JARLIF Women's Lightweight Jogging Training Running Shoes Athletic Walking...Merrell Womens Moab FST Mid Waterproof Hiking Athletic Active Shoes Sz 8.5Women's Alfani Courtnee Women's Boots Cognac Boots , Dansko Kelsey Size 41 / 10.5 - 11 Black Leather Clogs Slip On Shoes Nursing ou3 , adidas Originals Women's Swift Run W Clear Brown/White/Core Black 8 B(M) US ,

crocs Womens Freesail Chelsea tkphotog-23073 W crocs Rain Boot, Navy M/Floral, 9 M US 817db95 -