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

Trader Bay Brown Distressed Leather Hiking M or Boots Leather Casual Boots Women's Size 8.5 M 7248f5a
Trader Bay Brown Distressed Leather Hiking M or Boots Leather Casual Boots Women's Size 8.5 M 7248f5a -

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.

Mossimo Brown Knee High Zip Riding Boots Size 10TOGETHER Tan Suede Leather Ankle Cowboy Western Boots Womens Size 7 B , Bandolino Black Leather Alligator Embossed Mid Calf Zip Fashion Boots Size 6.5 Mxoxo women's heeled booties sz 10 black slip onCrown Vintage Black Ankle Booties Size 9New Ladies Hooked ankle Zip Up Boots “Jane” Black Size 7 1/2Women's Knee High Leather Heel Boots Zip Buckles Size Medium 7/8Women 9.5 M Kenneth Cole Reaction Tailgate Black Suede Tassel Ankle Booties , Royal Blue Suede Fringed Hot Heel Boots , Mia Distressed Brown Leather Buckle Heeled Ankle Boots Booties Size 7 M , Velvet Floral Boots Chinese Laundry Dirty Laundry ModCloth AnthropologieMUNRO AMERICAN Women's Black Leather Ankle Boots Booties Slip On 6.5CLICKS Pink Purple Blue Orange Patch Suede Comfort Mid Calf Boots Size 7.5 BAerology Aerosoles Women's Low Boots Sz 7.5 Wide Brown Leather Slip On 2.5" Heel , Women's Winter Boots Fur Lined Insulated Water Repellent Zipper Ski Snow ShoesClarks womens black leather ankle boots size 7.5BLONDO Comfort Black Suede Leather Side Zip Heels Ankle Boots Size 7.5 M , BRIGHTON Brown Black Leather Alligator Embossed Mid Calf Zip Boots Size 6.5 M , Aldo Black Leather Ankle Boots Booties Heeled Zip Size 7.5 , Lower East Side Tan Butterfly Inlay Western Cowboy Boots Size 8.5 Style 44352 , Croft & Barrow Black Textile Mid Calf Boot 8.5 M Side ZipperWomens White Mountain boots - size 7.5 - black - 01-W18345SSUnlisted Beyond Pumped Knee High Boot - Women's Size 11M - BLK *Repair , Aerosoles Womens Size 8 Commentary Brown Cap Toe Stacked Heel Zip Ankle BootsCROWN VINTAGE TAN LEATHER/SUEDE CUT Out SLIP ON ANKLE BOOTS WOMEN SZ 9.5M , Steve Madden Boots Tan Leather Zip Fashion Ankle Booties Size 7 M Got Youbar III Rene Metal-Heel Over-The-Knee Boots Black US 5.5 , VTG WOMENS LUCKY BRAND COWBOY LEATHER BROWN BOOTS SIZE 10 M , Women's Girl Burgundy leather CAPEZIO cowboy western boots , sz 5.5 M

More Stories

Shoes Women's Eddie Bauer Madison Ankle Boots Brown Sz 8 1/2 Suede Leather , WOMENS KAREN SCOTT HADLEY BLACK MANMADE KNEE HIGH BOOTSSIZE 7M , MOTO TALL RIDING BOOT WOMEN MANGO-29-05 FOREVER FOOTWEAR BLACKNorth Face Hiking Boots Womens 10.5 Black Ultra FastPack Mid GTX GoreTexCole Haan women's knee-high black suede boots size 9.5 , G By Guess Tall Boots, Women's Size 6 M, BrownChooka Womens Midtown Strappy Rubber Almond Toe Ankle Cold Black Size 8.0 zLg0WOMEN'S BLACK LEATHER *TOMMY HILFIGER* KNEE BOOTS*9M-VERY NICE , Sundance Catalog laser-cut leather wedge boots (Stardust Boots), 6 US, NEW , BCBG BCBGeneration Women BG-Mocha Knee High Wedge Boot Shoes, Coconut, US 8 , Nike Womens Woodside 2 Taupe Outdoor Chukka Boots Shoes 5 Medium (B,M) BHFO 5155Women Wolverine Serve Sr Oxford Slip Resistance Work shoes W20533 Black Original , Leila Stone Womens savanha Closed Toe Mid-Calf Fashion Boots, Black, Size 10.0White Mountain Legend Boot Dark Brown Low Heel 8 M New Zipper Side Knee HighClaudia Ciuti made in Italy boots 7MZARA NEW AW17 100% Real Leather Flat Ankle Boots US6.5, EU37,7164/201Tory Burch 'Minnie' Foldable Ballet Flat Size 6.5M , new TARYN ROSE 'Odessa' red patent leather flats mules shoes 6 very comfortable , € 380 FRATELLI ROSSETTI Pink Suede Sneakers Pearls 37.5 IT 7.5 US With Box , Clarks Bella Womens Quilted Closed Back Slippers- Choose SZ/Color. , Paul Green Nina Loafer, Black Patent Leather, Womens Various SizesOriginal Car Shoe by PRADA Brown Green 37.5 *GORGEOUS < $1,890 Display item-NEW!Clarks 26118662-260 Womens Cabaret Ruby 7 M- Choose SZ/Color.ASICS Gel-Craze TR 4 Womens Size: 9.5M Color: Mid Grey / White / Black SET 3Asics GT-2000 Running Shoes Silver/Green/Blue Women's US Size 9 (M1,11) , Women's Puma Women's Poseidon Cross-Training Shoe Athletic ShoesWomen's Snakeskin Heeled Booties BootsWomens Mid Calf Boots Ladies Pleated Bowknot Shoes High Heels Zipper US SIzeASICS Women's Gel-Fujilyte Trail Runner - Choose SZ/Color , SAS 'Weave' Brown Leather Slip-On Loafers Comfort Shoes Women's Sz. 7M ,

Trader Bay Brown Distressed Leather Hiking M or Boots Leather Casual Boots Women's Size 8.5 M 7248f5a -