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


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.

42 Womens ECCO U.S. 11.5 Burgundy crinkle Patent Leather Loafers Horsebit Shoes , Sz 9M J.Crew woman suede shoes flats ballet gold studs loafers made in Italy EUCTods Womens Shoes Size 41 11 Brown Solid Leather Loafers Casual , Women's Sperry Songfish Waxy Canvas Taupe (STS96656 ),Boat Deck Shoes , Demonia Gothic Goth Scene-20 Platform Mary-Jane Creepers , PRADA pointy toe black leather ballet flat size 39JP TOD'S 2 TONE CALFSKIN HIDE FUR DRIVING LOAFERS SHOES WOMEN'S 40NEW WOMEN'S 8 J CREW ANKLE STRAP POINTED TOE SLINGBACK FLATS IN STRIPE SHOESJuicy Couture New Womens Anita Gold Sequins Leather Flats 6 M ShoesNEW Merrell Dassie Tie Women 7.5M Oxford Shoes Leather Metal Eyelet Tie On BrownTory Burch Divine Bow Driver silver new in box size 7.5 ballet flats , Alberto Moretti Moccasins IT 40 orEcco Size US 6 6.5 Black Slip On Loafer New Womens ShoesLadies Rieker Casual Soft Leather Everyday Shoes 41389 , Stuart Weitzman Womens Sugar Blue Espadrilles Flats 9.5 Medium (B,M) BHFO 8433 , Sam Edelman Felicia Saddle Leather Flat Ballet Pump Women's sizes 6-10/NEW!Clergerie Robert Clergerie Black Soft Leather Espadrille Loafers Shoes 5 , Kilim shoes Handmade leather shoes chic oxfords leather loafer moroccan shoesJCREW Gemma Glitter ballet flats $145 8.5 Shoes metallic sand e0229 AVLTory Burch penny loafer flats metallic Pewter size 9 M eucSperry Top-Sider Songfish Suede Boat Shoes Mult SzJCrew $108 Gemma Cap-Toe Flats Sz 10 Vintage Champagne F4854 AVL , Cole Haan Original Grand Women’s Size 5 B Metallic Wingtip Oxford Waterproof NIBZARA NUDE BALLERINAS FLAT STUDDED SHOES SIZEAlice + Olivia Hilary Travel Printed Canvas Flat Sz 37-NEW , French Sole Womens Passport Closed Toe Espadrille Flats, Black, Size 7.5 9TUUJ.CREW EMBROIDERED SMOKING SLIPPER LOAFER MULES SIZE 8,5M DARK PACIFIC H1845SPRING STEP Zemira-b Black Leather Hook & Loop Mary Jane Shoes , LADIES SHOES/FOOTWEAR - Boston Belle Scuff Sam black ,

More Stories

DERION BEYONCÉ Sz 8.5 Medium Black Patent Thigh Boots Faux Suede StilettoSTEVE MADDEN Womens Sz 7.5B MARTINA Burgundy Platform High Heel Ankle Boots A4Women’s Mossimo 7 1/2 Beige Ankle Boots With Zipper , Aldo Nylander boots new in box , Coogi Australia Women's BOOTS Textile Shoes Size 8Women's Shoes Soda Mug Faux Suede Casual Zip Booties Black / Brown *New*Women's Columbia Vallara Thermolite Waterproof Winter Boots Sz 6 , Boohoo Side Zip Chunky Heel Black Ankle Boot, Womens /US 10Bottes LA REDOUTE CREATION Daim Violet T 37 TTBE , AHNU MONTARA II WOMEN HIKING SHOES LEATHER CHOCOLATE CHIP US 6 /UK4.5/EU37/JP 23 , SoftWalk Bellrider 10W black boots wide calf , Northside Women Boots Carrington Waterproof Duck Boot Dark Brown , Women Gap Suade Fur Boots Wedge Sole Size 11Free People Jeffrey Campbell Harley Mule Woven Leather Boot Heel Size 10/41 New , American Rag Baylie Women's Boots BlackWomen's Steve Madden Parley Shoes Brown Leather Ankle Boots Size 7 M NEW!GIANNI BINI Fancy Black Wine Leather Gold Stud Western Heel Boot Women's sz 8M , Hot Women Shoes Platform Riding Wedge Heel Knee High Boots Zip Buckle Strap R830 , Born Zena Ankle Boots, (Charcoal) SIZE 8 () (sh) v1207 , AG874 POKEMAOKE shoes black leather women ballet flatsSAS Classic LOAFERS Made in USA Womens size 6.5 M Black Leather Shoes New in Box , NWD $1862 Brunello Cucinelli 100%Leather Shiny Metallic HiTop Tuxedo Derbys 37/7 , Spring Step Women's Shondra Smoking Flat Light Grey Leather Flats , Rocco P Shoes 764218 Orange 34miu miu Women's Black Buckle Front Flats Low Heels - Size 36.5 , WOMEN'S HOKA ONE CLIFTON 5 size 10.5 (D) WIDE ! RUNNING SHOES!FROM DISPLAY! , Saucony Women's Eros Sneaker Charcoal Size 6.0 kIu3Asics Gel Cumulus 18 running Shoes, Women's Size 8.5, Silver/Turquoise/PinkWomen's Seychelles Women's Theater Ankle Boot BootsWomens Over Knee Knight Boots Side Zip High Chunky Heels Winter Warm Shoes SIZE ,