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

Minnetonka Calf Hi 5 3-Layer Calf Fringe Fringe Boot size 5 5cdd730
Minnetonka Calf Hi 5 3-Layer Calf Fringe Fringe Boot size 5 5cdd730 -

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.

Lucky Brand Womens Kassidy Leather Peep Toe Ankle Chelsea, Brindle, Size 9.0 M3BMemory Foam Hiking Boot Rainbow Collar Womens 8M , Renzo Renzi Black Suede Short Boot With Quilted Top On Rubber Unit Size 40 , Justin Womens Boots Size 5 Black Western Pointed Toe LeatherNine West Gofish Womens Brown Mid Calf Fashion Winter Boots size 7.5 , New in Box - $318 Nicole Miller Artelier Jackie Leather/Calf Hair Boots Size 11ASH Brown Leather Ankle Boots W/Straps & Buckles Lug Sole Sz 37/7 Retail $398 , Style&co. Fearse Knee High Boot Black Womens 5 M US - MSRP $109Carlos Santana Grey Suede Ankle Boots Booties Size 5.5 , Harley Davidson Womens Size 5.5M Black Motorcycle Boots Buckle Oil ResistantCaterpillar Women's Jenny Steel Plain Toe Black Boot Size 5 MEUC Treasure & Bond Brown Leather Equestrian Boot Harness Strap Rustic 8.5 , dav Women's Jackson Rain Shoe, Black, Size 9.0 , Unisa Womens Piera Suede Closed Toe Ankle Fashion Boots Black Size 6.0 7LlFJack Rogers Womens Size 6.5 Plum Purple Heeled Booties Ankle Boots leather EUC , $129 size 7.5 Marc Fisher Humor Black Over Knee Boots Womens Shoes NEW , BCBGeneration Womens Anders Pointed Toe Ankle Fashion Boots, Black, Size 7.5 MFl~Dan Post~ DINGO Dark Khaki Leather Trouser Cowboy BOOTS Women's Size 8.5B , Justin L0994 Casual Camp Moc Toe Brown Full grain Leather Boots size US 7M , MUK LUKS Women's Stacy Boots Fashion, Black, Size 10.0UNZE LB1562 WMN'S HIGH HEEL ANKLE BOOTS W/CONE HEEL & ZIPPER BLK US SZ 8 MEDIUMNine West Gofish Womens Brown Mid Calf Winter Boots size 7.5 , Lucky Brand Womens Kaeliya Suede Closed Toe Knee High Fashion, Black, Size 6.0 P , Zara Womens Shoes Sz 37 Us 6.5 Blue Zip Front Chunkly High Heel Ankle Boots Nwt , Joie Womens Lacole Suede Almond Toe Ankle Fashion Boots, Gravel, Size 8.5 6q35Women Fashionable Scrub Wild Pearl Single Square Trend Solid Cute Short BootsMichael Antonio Women's Mathis Tan Ankle Boots 7.5M , East5th Women's Amy Knee High Boots, Black Leather, Size 7 M US , INC INTERNATIONAL CONCEPTS (HENRY BLACK BOOT) WOMEN'S SIZE 10 BRAND NEW!!

More Stories

Nine West 'Leeto' black man made elastic bootie pointed toe heel 8.5M , Rebel by Zigi Olaa Over The Knee Stretch Back Boots 816, Black, 7.5 USSize 10 Beige High Heel Knee Boots from StoneWomen's Fashion-Mid-Calf SO boots size 7M Style Elmira Brown low heel pull on , Anne Michelle L9325 Turn up or Down Boots Tan or Black X 8 (R21A)BLU SHU Ankle Boots Black Faux Leather Heel Size 40 / SB 507 , Gloria Vanderbilt Women's Knee High Boot Brown Size 6M , $299 BCBG BCBGMAXAZRIA Womens MA-Cameron Pump Ankle Bootie Shoes, Black, US 8.5 , Women Winter Boots Rain Snow Boots Size 5.5 M Fur lined Collar PU Leather BootsUnionbay Brown Boots Faux Fur Wedge JR Size 8.5 NIB #SH13 , US4.5-10.5 Suede Clear Heels Pointy Toe Ankle Boots Leopard Womens Shoes NewJeffery Campbell Havana Last Camel Suede Ankle Boots Booties size 6.5-GORGEOUSAerosoles Womens Password Mid Calf Boot- Pick SZ/Color.Steve Madden Kimmi Black Womens Shoes Size 6.5 M Boots MSRP $129Hush Puppies Women's Classic Walker - Extra Wide Casual Shoe , Ladies Rockport Zana Quilted Snow Boots K60673Stubbs & Wootton Palm Beach Jane Slipper Leopard Woven Tan Loafers 7 1/2 AA GUCVintage Juicy Couture Shoes 9.5M Gold Leather Peggy W/box Made In Italy , Calvin Klein Women's Vance Sneaker, Black, 8 Medium US NEWJslides - Women's Edie Leather - Platino Crinkle , Frye Women's Khaki Sienna Multi Stud Ballet Flats - Pointed Toe - 72266-KHI , NEW JCREW $248 Double-strap flats in leopard calf hair Size6 F4861Asics Women's GEL-Flux 3 Athletic Running Shoes T664N Indigo Blue White Size 9.5NEW COLE HAAN WOMENS TALI BOW SKIMMER FLAT - CORAL ALMOND PATENTNEW SPERRY TOP-SIDER A/O ORANGE CVS COGNAC BOAT SHOES WOMENS 9.5 FREE SHIP $130JEFFREY CAMPBELL BELAN CLEAR Black FRINGE KILTIE Loafers Shoes 9 ONLY ONE onEBayWomen's privio women sneakers 9m Athletic Shoes , Women's Tod's ladies ballerina XXW0DK0E180RTU161H FlatsWomen's Warm Winter Booties Boots , WOMEN'S Nike Metcon 3 FADE Sz 8.5-11 Sunset Glow/Platinum 902175-800 FREE SHIP ,

Minnetonka Calf Hi 5 3-Layer Calf Fringe Fringe Boot size 5 5cdd730 -