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

Nike Womens Nike (30798) Tanjun Size Black Running Shoes Size 9.5 (30798) 94c972d
Nike Womens Nike (30798) Tanjun Size Black Running Shoes Size 9.5 (30798) 94c972d -

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.

New Balance Womens Warislo1 Light Grey Running Shoes Size 6.5 (4206) , Womens Summer Open Toe Buckle Canvas Sandals Wedge Heels High Top Sneakers BootsFloral Womens Platform Sneakers Shape Up Wedge Slimming Toning Shoes for GirlsWhite Red PUMA Clyde SIZE 4.5 EUC , Adidas Duramo 8 Women's Running Shoes Sz.6 US Grey NWOB , VANS LUDLOW DESERT COWBOY PEWTER WHITE WOMEN'S SKATE SHOES/ S89105.95WOMENS REEBOK CL LEATHER MELTED META"Gigi Hadid"BS7898 Pearl Met/Grey Gold/White , CONVERSE All Stars SHORELINE Black Canvas slide On Low Top Shoes US 5.5 , Brooks Ghost 8th Edition Women's Size 8 Running Shoes Purple Coral Pink & Gray , Puma EvoSPEED Distance 8 Cleats - Pink - Womens , Converse Chuck Taylor All Star Lo Top Quartz Pink 132300F Men's 10 Women's 12ASICS Womens Dynaflyte MidGrey/FlashCoral/SafetyYellow Running Shoes Size 10Mizuno Wave Enigma 5 Womens Running Training Shoes Size 9 Blue Purple Gray , NIKE WOMEN'S W AF1 AIR FORCE ONE FLYKNIT LOW 820256-004 WARRIORS GOLD SZ: 6.5 , Womens Fashion Sneakers Ankle Boots Walking Casual Girls High Top Wedge Shoes sz , New Balance 520v2 Womens Athletic Running Training Shoes Size 10 Blue Gold GrayConverse Chuck Taylor All Star Floral Tropical Print Hi Top Women's 12 Men's 10 , Vans Authentic Pool Vibes African Violet Women's 7 Skate Shoes Dogs Food , Adidas Tubular Defiant White Womens Shoes Size 5 M Athletic MSRP $110Womens Chic Glitter Sequins Floral Hollow Out Wedge High Heels Fashion Sneaker , Bucketfeet Dj Lu Tan Embossed Pineappleade Leather Slip-On Sneaker 9 40 New , Merrell Dusty Olive J88796 Hiking Shoes Womens Size 38 / 7.5Nasty Gal Women's Soft Talk Burgundy Velvet Sneaker Sz 9US 7UK $50 , HOKA ONEONE LADIES TURQUOISE SZ 8M STINSON 3 /PREOWNED/VERY GOOD!!Autumn New Womens Rhinestone Sneakers Mixed Color Athletic Platform Shoes Yoooca , Aerosoft Women's Black & Beige Platform Sneakers Tennis Shoes Size: 7New Balance Womens - Pink Running Shoes Size 8 (364063)Nice Women NIKE BRS1000 Zoom Air Pegasus 27 Running Shoes 9.5 Blue Gray CushlonSkechers 24873 Shape-Ups Brown Rocker Toning Walking Sneakers Women's US 9

More Stories

Baretraps CATHRYN Women's Ankle Boots Black Double Zipper Shoes Size 7.5M EUCHot Tomato 10M Boots 4" Stiletto Heel Dark Brown Mid Calf Zippered Side NWT , Ann Taylor Black Leather High Heeled Booties, Ankle Boots. 7 , TEMPT-1-05 WOMEN SUEDED PULL-ON BOOTIE MISBEHAVE BLACKWestern Chief Women's Ankle Rain Bootie Boot, Black, Size 10.0 nfuZ , Loeffler Randall Women's Boots Size 6.5 Brown Over Knee Wedge Pull On ClosureNew Women DbDk Nueve-1 Leatherette Chunky Heel Zipper Back Riding Bootie SizeWomens High Heels Stilettos Faux Suede Knee High Boots Shoes Zip Plus Size New , SKECHERS Gray Faux Fur Trim Boots Size 10 Knee High , Ladies Easy B Calf Boots Sydney , Kenneth Cole New York Women's Levon Boot, Asphalt, Size 8.0Enzo Angiolini New Womens Barrows Black LE 6 M Boots HeelsBELLE Sigerson Morrison Black Leather Zip Knee High Fashion Boots Size 7.5 M , SPERRY WOMENS BROWN LEATHER BOOTS MID CALF HARNESSCarlos by Carlos Santana Women's Mandarin Ankle Boot, Black 2, Size 10.0 LfS4Women Moccasins Flat Loafers Leather Soft Slip on Casual Round Toe Driving ShoesPAUL GREEN MUNCHEN JANO BLACK WRINKLED NUBUCK LEATHER ANKLE BOOTS 5.5/US 8 FALLEARTH ETH-INTREPID Earth Womens Intrepid Soft BuckM- Choose SZ/Color. , Munro American Tallie Women's Black Kid Suede Tassel Loafer Flats Size 8.5 N , JCrew $168 Kiki Ballet Flats in Houndstooth Jacquard Sz 6 Red & Blue F8505 AVLNIB 100% AUTH ROGER VIVIER BLACK SUEDE GOMMETTE TURTLE BUCKLE FLATS 34.5 $625 , ASH Intense Bis (Light Silver/White/Grease/Nappa Wax) Women's Flat Shoes 7 M , Sneakers and Athletic G by GUESS Mallory7 White/Lavender GlitterAsics Gel-Excite 2 Women's Blue/Pink/Light-Green Running Shoes Size 8, T483N EUC , Women's Champion Women's Gusto Cross Trainer Athletic Shoes , Gianni Bini Womens Black Leather Zip Mid Calf Boots Size 7.5 Block Heels ShoesWomen's Array Aruba Pewter Fisherman Shoe Size US 6.5 N , Womens Knee High Boots Folded Cuff Buckle Accent Side Zipper Closure BrownWomens Fur Inner High Heels Platform Mid-calf Boot Casual Shoes Tassels 2ColorsVans Disney Ariel Print Little Mermaid Shoes Women's Sz 10 Mens Sz 8.5 Rare ,

Nike Womens Nike (30798) Tanjun Size Black Running Shoes Size 9.5 (30798) 94c972d -

Athletic Shoes