Have you heard the name of Hindenburg Research before, recently came into discussion in the whole country because this report has accused Gautam Adani of a scam. What does this research say, let's know
Hindenburg Research has come into the limelight in India by alleging the biggest corporate scam against Adani Group. The firm has published a comprehensive report on India's richest businessman Gautam Adani, titled 'Adani Group: How The World's 3rd Richest Man Is Pulling The Largest Con In Corporate History'. The Hindenburg report alleges that the Adani Group has been involved in blatant stock manipulation and account fraud for decades. Since the arrival of this report, the group's market cap of 4.1 lakh crores has been cleared. Who is Hindenburg Research, let's know.
The company openly describes itself as an activist short seller.
It is an investment research firm or a forensic financial research firm. The firm brings out analysis reports on Equity, Credit, and Derivatives. Nathan Anderson is its CFA. He started this firm in New York in 2017. The company openly describes itself as an activist short seller. Short selling means triggering the sale of a stock, security, or commodity so that its price falls before the delivery time and it can be bought at a lower price. That is, the company openly targets a company and removes its flaws, then its shares fall, then it buys it and earns profit later.
Shares fell by 25% within two days
Even in the report against Adani Group, the company has told that after this report, the shares of the group can fall by up to 85%. Within two days of the report, the shares have fallen by 25%. Since the year 2020, the company has come out with 30 reports and if we look at the average stock report of these 30 companies, then their shares have seen a decline of about 15%. At the same time, an average decline of 26% was observed in six months. He brought out a report on Nikola in 2020, after which the company's shares fell by 94%.
The US Department of Justice is investigating this firm that it is doing short selling in association with hedge funds. But they already tell that they are short in that company and their investors also take short in it, after which the report is issued. Before publishing the report, it is shared with 10 investors.
The track record is great
Shares have declined after the company's report, in which the track record of price reaction has been very good. There was a company named SCWORX, on which the shares fell by 3.3% the next day after the report came, but after 3 months they had fallen by 90%. At the same time, the company's shares fell by 13.4% when the report came against Genius Brand, but after 3 months the shares fell by 85%. Ideanomic's shares fell 40%, and after 3 months it registered a decline of 64%. Many companies have shown such price reactions.
