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

6"DUCK BLACK SNOW BOOT BLACK soapapp-23498 COLOR size-103A- COLOR 8 06237f2

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.

Womens Ladies High Heel Perspex Clear Sandals Celebrity Designer Shoes Size New , Bottes Pointues TRINITY Cuir Marron T 40 TBEAriat Mens Accessories A10002654- Womens West Round Toe Xr FTbeds , Sugar Women's Granita Bootie with Memory Foam Sneaker,Navy Micro,9 Medium USFiel Women's Lemon Boot,Black Nappa,8 M USNaughty Monkey Womens Metalicah Ankle Bootie- Pick SZ/Color.Fringe Round Toe Cowgirl Vegan Suede Ankle Women's Vegan Leather Booties , Lucky Brand Women's Emmie FlatDark Teal Nubuck Croco LeatherUS 7 MLadies Spot On Heeled Knee High Boots With Zip Fastening , Global Win Women's 1650-1 Snow Boots SZ-10M US , Seychelles Women's Theater Ankle Boot Black Size 7.0 0cWFALDO Women's Belinna Motorcycle Boot Black Patent Size 6.0 B421women fashion sexy long boot chunky heels Platform Pull On knee boots Plus sizeLADIES DOWN TO EARTH BLACK BROWN ZIP UP ROUCHED CASUAL LONG KNEE BOOTS F4386Andrew Geller Women's HAELA Riding Boot Grey Size 10.0 , Fashion Spring Autumn Women Boots Patent PU Leather Platform Woman Shoes BotasBrinley Co Women's Spiro Ankle Boot Blue Size 6.0Fold Over Flap Buckled Strappy Biker Moto Bootie Women's BrownMadden Girl Womens party Closed Toe Ankle Fashion Boots Dark Taupe Size 8.5Sexy Womens Pointed Toe Slim Stretch Over Knee Boots Stilettos High Heels Shoes , Kamik Women's Sharonlo Rain Boot Charcoal Grey Size 5.0Style & Co. Womens Ryder Round Toe Knee High Fashion Boots Brown Size 5.0 , Fergalicious Womens Dina Fabric Closed Toe Knee High Fashion Black Size 5.5 , LADIES SPOT ON NUDE PEEP TOE ANKLE BOOTS WITH FRONT ZIP FASTENER F10724Qupid Women's Sochi-123 Ankle Boot Light Grey Size 6.0 , LADIES BLACK DOWNT TO EARTH ANKLE BOOTS F50539Karen Scott Womens DAVINA Closed Toe Knee High Fashion Boots Brown Size 7.5Ladies Down To Earth Zip Up Heeled Chelsea Boots , White Mountain Women's Battery Motorcycle Boot Black Size 8.0 762E ,

More Stories

Adult Women Pf Open Toe/heel Ankle Side Zip Shoes Boots , Tan Flat Round Toe Over The Knee Sexy Boots Side Buckle Us Womens Size 6.5Richard Tyler Black Satin Zippered Boots Shoe Size 7.5 , Y1 NEW Rag & Bone Newbury Mineral Suede Ankle Boots Women's Sz 38 MCoco Ladies Knee High Boot Taupe L9286 x 8 (R22C) , DIBA Fabric Knee High Heel pointy Boots Gold Size 8.5BWOMENS CUTE La CANADIENNE BLACK SHORT LEATHER ANKLE HIKING TRAIL BOOTS sz 9.5 M , Journee Collection Womens Angel Round Toe Over Knee Fashion Boots , Genuine Leather Brown Ankle Boots GIANNI BINNI 2.5" low heel block New Size 7.5 , Hal Rubenstein Dara Black Leather & Haircalf Herringbone Ankle Boot NEW , Indigo Rd. Womens Auburn Almond Toe Ankle Fashion Boots, Cafe, Size 9.5 , Vince Camuto Size 10 Brown Leather Ankle Boots New Womens Shoes , Womens Matisse Genuine Black Leather Tall Boots Size 7NEW Womens TOMMY HILFIGER Poetrie Black Zip Up Ankle 3" Heel Fashion Boot ShoesNew FRANCO SARTO Dipali Suede Snake Embossed Size - 11M - Camel BrownBoot Jessica Simpson Delaine Dakota Tan Split Suede , Castro Women Quilted Knew High Boots Side Zip Black Size 6 (36)Sam Edelman Rivers Women's Black Pointed Toe Flats Sz 8 1654 , J.Crew Nora Cap Toe Chain Ballet Flats 13586 In Natural Brown Sz. 8.5 $150Enzo Angiolini Women's Nehan Dress Pump, Black, 7.5 M USAmalfi By Rangoni Shoes Size 8 M Womens New Black Suede Slip On Flats NWOB , Anne Klein Women's Mady Reptile Loafer Flat Medium Orange 7 M US , G by Guess Womens Chippy Fabric Low Top Slip On Fashion White Size 10.0 Sb24Cole Haan Arlyss Block Heel Suede SkimmerALDO Women's Zusien Mary Jane Flat, Black Synthetic, 6.5 B USVionic Women's Ailie Leather Mary Jane Sport Shoe Size: USA 7,Reebok Easytone 6 Soul II Women's Gym Shoes Sport Shoes Trainers M40400 NewDVS DVF0000299003 Womens Cin LT+ Wos Skate Shoe- Choose SZ/Color. , NIKE LAB G Series leather slip on flats gray metallic comfort walking hiking 7.5Ecco Biom Train Athletic Training Running Sneaker Shoes Womens 40 /9.5 US ,

6"DUCK BLACK SNOW BOOT BLACK soapapp-23498 COLOR size-103A- COLOR 8 06237f2 -