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

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

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

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of