Who’s daring enough to short several U.S. shale oil and gas drillers? Why it’s short-selling expert Jim Chanos, president and founder of Kynikos Associates, of course.
Mr. Chanos spoke at the Delivering Alpha Conference last week and gave insight on why he believes the Wall Street opinion on US shale and gas stocks is faulty.
(It’s important to note, these frackers were not located in the Permian Basin in Texas and New Mexico, where costs are lower.)
Chanos isn’t the first, and most likely won’t be the last, person to warn about issues within the US shale sector, such as their lack of positive cash flow. If Chanos is correct with his short sales, it won’t be his first big win, either, as he also forecasted the breakdown of Enron.
To read the full article from CNBC click here.