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 NewBottes Pointues TRINITY Cuir Marron T 40 TBEAriat Mens Accessories A10002654- Womens West Round Toe Xr FTbedsSugar Women's Granita Bootie with Memory Foam Sneaker,Navy Micro,9 Medium USFiel Women's Lemon Boot,Black Nappa,8 M US , Naughty 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 FasteningGlobal Win Women's 1650-1 Snow Boots SZ-10M US , Seychelles Women's Theater Ankle Boot Black Size 7.0 0cWF , ALDO Women's Belinna Motorcycle Boot Black Patent Size 6.0 B421women fashion sexy long boot chunky heels Platform Pull On knee boots Plus size , LADIES DOWN TO EARTH BLACK BROWN ZIP UP ROUCHED CASUAL LONG KNEE BOOTS F4386 , Andrew Geller Women's HAELA Riding Boot Grey Size 10.0Fashion Spring Autumn Women Boots Patent PU Leather Platform Woman Shoes Botas , Brinley Co Women's Spiro Ankle Boot Blue Size 6.0Fold Over Flap Buckled Strappy Biker Moto Bootie Women's Brown , Madden Girl Womens party Closed Toe Ankle Fashion Boots Dark Taupe Size 8.5 , Sexy Womens Pointed Toe Slim Stretch Over Knee Boots Stilettos High Heels ShoesKamik Women's Sharonlo Rain Boot Charcoal Grey Size 5.0 , Style & Co. Womens Ryder Round Toe Knee High Fashion Boots Brown Size 5.0Fergalicious 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 6.0LADIES 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 BootsWhite Mountain Women's Battery Motorcycle Boot Black Size 8.0 762E

More Stories

RUIDOSO collection Vintage Men's Boots. Size 8.5 , vintage FRYE REBEL ZIP dark brown suede chinky grunge MAD Max tall boots 6.5 M * , Lauren Ralph Lauren Berna Burnished Vachetta Women's Riding Boots Size 7.5 , PRE-Owned Pink & Pepper Zolly Round Toe Synthetic Over the Knee Boot 8.5M , Enzo Angiolini Saharia Brown Leather Moorcycle Boots Size 5 MSC35 Beana2 Flat Ankle Boots, Black/Natural , Jessica Simpson Rayli Gold Metallic Ankle Strap High Heel Single Sole SandalsWomen's Bare Traps Bootleg Brown Leather Casual Ankle Boots Size 7.5 B , Yellow Box Exceed Zip-Up Tassel Pull Booties, BlackNEW Vans Women's Hadley Hiker Boots Shoes Brown Red Sneakers Size 5New Nine West Fifer Pointy Toe Red Suede Leather Ankle Booties Shoes size 8.5M , Brazilian White Gold Trim Women's Leather Boots Sz 7B Vintage 9 West New , Belle by Sigerson Morrison Malina black suede boots size 8 new in boxMaurices Nora Womens Fur Lined Mid Calf Duck Boots Waterproof Size 7.5 8CHLOE Metallic Gold Black Trim Leather V-Cut Slip On Ballet Flats 41/11/10.5J.CREW Gemma Flats Watercolor Floral Sz 7 Purple e0752 $145ZARA Black Leather Spike D'orsay Studded Pointed Ballerina Flats Rare US 9 40AUTHENTIC LUXURY CAR SHOE SLIPPER SCHUHE KDD006 GOLD US 10.5Nine West Women's Oxidize Leather Moccasin Black 10.5 M US , Django & Juliette Aduki Metallic Orange Leather Shoe , Womens Fila Memory Foam Aerosprinter 2 Pink/Blk/Wht Size 7 USSam Edelman Britt High Top Sneaker Navy Blue Real Dyed Cow Fur w/ Snake Skin 10M , Eastland Women's Sage Slip-On Loafer, Brown, 9 M US , LIZ LISA - High Cut Frill SneakersLADIES NIKE RUNNING SHOE SZ 7 white & teal swoosh womens sneakers athletic shoesWomen's bzees 8w Women Athletic Shoes , Women's trendy women handmade sheepskin boots BootsMadden Girl Brown Synthetic Leather Knee High Pull On Boots Sz 10 New w Box! , Espadrij l'originale Pantoufle Classic Norvége Women Espadrilles slipper - NEW , ASICS T6K7N.9606 Womens Gel-Scram 3 Trail Runner- Choose SZ/Color. ,

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