Posted on 05/04/2015 1:45:22 PM PDT by Citizen Zed
Billionaire hedge fund manager David Einhorn, who often moves a stock simply by speaking its name, on Monday 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 so-called short-bets against companies at these events, cited Pioneer Natural Resources Co (PXD.N) 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 percent. 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.
Last year Einhorn unveiled a short bet against athenahealth Inc (ATHN.O) 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 with most other investors putting forth ideas that investors can buy and hold.
(Excerpt) Read more at mobile.reuters.com ...
Ace Ventura: “Oh, my GOD! Einhorn is a man! “
those b@stards!!!
I will put my money an AMERIAN ingenuity to get fracking to as low a cost as needed to profit with 50 60 oil.
Was he short this security at the time? Will he buy it when it bottoms after his remarks?
Ping.
... on full-cycle costs, perhaps, but PXD isn't doing that.
I guess Einhorn is short and jawboning it lower..
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