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

VANS Chauffette localjoes-27800 USA SF Surfsider SF Vault Lady size USA 7 29b04dd
VANS Chauffette localjoes-27800 USA SF Surfsider SF Vault Lady size USA 7 29b04dd -

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.

Dr SCHOLL'S WOMEN'S ATHLETIC SNEAKERS s 6.5 Genuine Leather FRIDA BLACKWOMENS brown zip on MULES SHOES = EASY SPIRIT = SIZE 6N = DE15Dream Pairs Women's 1610042-W Lt.Grey Pink Athletic Slip On Water Shoes - 8 M US , L 03 Nike Women's Flex Supreme TR4 Cross-Trainer Sz 10 819026 003 Cool Grey/Volt , VANS New Palisades SF Vault Lady size USA 7 , Nike Women's Size 11 Primo Court Suede GrayWomen NEW Breathable Trainers Sports Tennis Sneakers Running Athletic Shoes Size , Skechers Women's Shoes 7.5 Shape-Ups Walking Toning Shoes Light Grey BlueMerrel Womens 8.5 Select Grip Grey & Mint Green Outdoor Hiking Trail Shoe , Puma 698 Ignite Metallic 361086 02 Women'sLadies Canvas Shoes Sneakers Casual Shoes Shoes Sneakers Size 36 v. VICTORY , Baby Phat Women's White Leather Shoes Size 8.5Osiris Sneakers Size 7 Black Pink Blue Silver , Womens Saucony Excursion TR 8 Gray Size 8.5M , WOMEN'S adidas NEW Original Box RUNNING SNEAKS Size 9.5 Tag $119.95 Now $23.22 , Asics Gel 1160 Womens Running Shoes Size 11M White Pink Sneakers-4844new balance ww577Vk women walking shoesMunro Sport Beige Shoes Suede Comfort Athletic Sneakers 9 Womens Casual , MOSSIMO Black Satin Upper White Chunky Sole Pom Pom Accented Sneaker Sz 10 B2578Bloch Dance Women's Prolite II Leather Ballet Slipper, White, Size 4.0 , SOFT JOYS BY FOOT JOY White Textured Golf Shoes W Cleats Size 9 Synthetic B3234 , HoverKicks LED High Top women size 9.5Anywear Women's Range Health Care Professional Shoe , K-Swiss anniversary Display Bar with sample One right shoe only , VANS Abiza Aloha Surfsider Vault Lady size USA 7Patagonia Maui Jane Air Fog Performance Sneakers Size 7 Women's GUC , Avia 1050 Athletic Sport Sneaker Tan/Cream WMAI26ES002 Shoes Women's Sz 8.5 EUC , Skechers Womens Size 5.5 () Love Peace Pink Spangled SneakersMerrell Women Sz 8 Black Slip On Comfort Tennis Shoes

More Stories

Breckelles Women Hilary-71 Faux Suede Wraparound Tassel Chunky Heel Black BootieNine West Davnia Black Leather Double Zip Ankle Boots Size 8.5 MNEW! Metaphor Camille Womens Black Suede Boot 412M & 412N da , ShoeDazzle Milana 4 1/2" Black Lame Platform Dress Boots w/ Zipper-8M-NWD , BCBGeneration Women's "CARLAH" Black SUEDE LEATHER ANKLE BOOTS, Size 7.5M ~ EUC , WOMENS NEW LADIES BLACK MIDCALF FAUX SUEDE FUR LINED WINTER STYLE BOOTS 888Earth Origins Cooper Brown Suede Water Resistant Ankle Boot 8 M & W SALENIB Sporto Lemier Womens Faux Leather Combat Boots 9 Black MSRP$80women's size 7 paisley print suede and leather cowboy boots, pointed toeFranco Sarto Womens Shoes Size 10 Brown Color Block Leather Knee High Boots , BORN Women's Boots Leather Shearling PINK Mid Calf Fold Over Ankle SZ 8 39Naturalizer Natural Soul Coltrane Womens Ankle Boots Black 6.5SAN MARINA - BOTTINES BOOTS ORIGINALES TALONS 8.5 CM CUIR NOIR 38 -TRES BON ETATG by GUESS Black Quilted Ankle Lug Boots MARTHA Women's Shoes US 5.5Tretorn Foley Rain Boots-Women's size 9 M BlackNIB Vince Camuto Kantha Over The Knee Boot OTK Granite Peak Women's Size 8.5 NIBSeychelles Womens's Peridot Bootie In NaturalJ.Crew Cleo Stripe Canvas Loafers With Bow Sz.10 $165Bogs Pearl Tall Tan Boots W/P Sz.10.5New Carlos by Carlos Santana DESEO Women's Brown Suede Knee-High Boots 9M NWOB , DIBA True Wedge Booties Size 9Women's 9 Wide Black Rockport BootsDansko XP 2.0 Pro Brown Pullup Leather - size US 7 - was $140MUNRO KIERA NATURAL PYTHON PRINT BEIGE 8 W $210 NIB WOMEN LOAFER SLIPON M206771 , ROBERT CLERGERIE Womens Beige Weaved Slip On Platform Shoes Sz 36.5DC HIGH TOP SKATE SHOES PINK PURPLE WHITE WOMENS SIZE 7W , Steve Madden Women's Feather Loafer Camel Suede , Women's MBT Sport 04 Toning Rocking Shoes Grey Silver Size 7.5Women's Breathable Air Cushion Shoes Athletic ShoesMarchez Vous By Yeardley Black Suede Side Zip Ankle Boots Heels Sz 8 Italy ,

VANS Chauffette localjoes-27800 USA SF Surfsider SF Vault Lady size USA 7 29b04dd -

Athletic Shoes