Jim Chanos: Tesla a Poster Child of This Market #SALT2017

May 18 2017 | 7:32pm ET

During the media Q&A session at the 2017 SALT Conference, hedge fund manager Jim Chanos reiterated his short stance on Tesla Inc.

Chanos said the firm was “one of the poster children of this market.” Chanos said that investors are overlooking the fact that the company has missed many of its own targets. He also warned that too many analysts are pricing the stock based on what it might earn in 2025. The analysts "can't predict the next quarter...but they're happy to tell you what happens in 2025," he said. "That's absurd."

Chanos asked if that you’re not shorting a company will negative cash flows, mass debt levels and a significant cash churn, “what would you be short?”

Before the Q&A session, Chanos gave a presentation in which he recommended that investors short drug company Mallinckrodt and Express Scripts. Chanos called the distribution partnership over Mallinckrodt’s drug Acthar a “murky alliance.”

"This alliance may lead to performance-enhancing drug prices," Chanos said, "but it could give investors the blues."

Following the statement, Mallinckrodt shares finished the day off 3.5%.


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of