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%.