Corporate Behaviour and Free Speech

How The Adani Fraud Actually Works (Allegedly)

How Money Works
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67,113 views Feb 17, 2023 #finance #investing #adani
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Edited By: Andrew Gonzales

Music Courtesy of: Epidemic Sound

Select Footage Courtesy of: Getty Images

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#finance #investing #adani

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Hindenburg research is an investment research firm which specialises in short selling using a very simple four step process.

Step 1, find a company with something going wrong that isn’t yet public knowledge, like a serious fault in their growth model, a significant market threat, or just plain old systemic fraud, as is the case with this Adani situation.

Step 2, short the companies stock.

Step 3, make a public announcement in the firm of a research paper accompanied by a big marketing campaign to expose the problems with the company so that other investors also short sell the business which will push the price down.

Step 4, exit the short positions at the new low price with a healthy profit.

It’s a simple process that has made the appropriately named Hindenburg research and other investment firms using a similar strategy have made lots of money be exposing corporate frauds before.

The great thing about this strategy for the short selling research firm is that even if the underlying problems with the company turn out to not be true, just the market panic caused by a widely circulated accusation of corporate fraud can be enough to push the stock price down for long enough to allow the firm to cash out their short position at a profit.

If the allegations do end up being overblown, then the short sellers that followed the lead of the initial short selling research firm can end up burnt as the stock rallies back to its original price.

Bill Ackman the Manager of the hedge fund Pershing Square Capital put a lot of investors in this position with his failed short play on the multi-level marketing company Herbalife. Ackman accused the company of being a fraudulent pyramid scheme after taking on a major short position combined with a marketing campaign that even included a documentary, Betting On Zero.

The short failed to play out as regulars didn’t file any charges against the company and it continues to operate to this day with a stock price even higher than it was before Ackmans short sale.

The failed short play hurt Ackmans reputation meaning other short sellers will be less likely to follow him into similar positions in the future making it harder for him to profit off this four-step plan in the future.

A good reputation for digging up credible problems are very important for making this investment play work, so how is Hindenburg’s track record?

Hindenburg’s last big short play was against Nikola motors and their CEO Trevor Milton. After their report was released to the investing public, Nikolas stock price fell 40% and an investigation by the SEC was opened into Milton which eventually resulted in a conviction for wire and securities fraud.

Since the paper was published in September of 2020 Nikola stock is down over 90%, so when the same investment firm made similar accusations against one of the largest conglomerates in India, it understandably drew some attention.

The seven publicly listed companies in the Adani group are now down over 50% from the record high prices they were trading at before Hindenburg’s report was made public. Investors are now taking sides because there is a lot of money to be made no matter what happens from now on.

If it turns out that the short thesis presented by Hindenburg research is true, then the stocks could fall even further making a lot of money for short sellers following Hindenburg’s lead.

If the report turns out to baseless FUD coming from an investment firm with a financial conflict of interest against the Adani group or if Indian authorities do not prosecute the Adani group for the alleged crimes, then the stocks could rally back to their previous trading highs leaving short sellers with a potential 100% loss on their positions.

For everybody else on the side lines it is going to be fun to watch, so it’s time to learn How Money Works to find out how the Adani fraud actually worked to create so much excess value in the stock’s price.

मित्र Adani के लिए भी अब इस मैगज़ीन पर छापा ? Mahua ने खोला खेल अडानी के घाटे भरने में जुटी सरकार?  https://www.youtube.com/watch?v=2fLSoZWj6Kg  The Samachar Express Feb 15, 2023 #बेगाने_धंधे_में_महुआ_दीवानी

Adani Ports to build LPG handling facility at Gangavaram Port backed by take-or-pay deal with Indian Oil Corp

Adani ka Bloomberg cover page pr photo, Bloomberg business magazine cover photo, adani lpg vizag port to ganga aram port,

BBC पर छापा मार फंस गए Modi - Shah, Mahua Moitra ने Adani का इधर कोयला साम्राज्य उखाड़ दिया
Income tax raid on bbc offices, amit shah interview on adani, adani coal industry in Australia,
Mahua moitra asks when it will raid sweetheart adani
Adani केस में टूटी मित्र मोदी सरकार की अकड़, कोर्ट की एक्सपर्ट जांच कमेटी में Mahua भी होंगी?
Adani Hindenburg case supreme court monitor expert probe committee, adani supreme court expert janch kamiti me mahua mitra

Adani को Mahua Moitra से पंगा भारी पड़ा, हो गया केस, अडानी के डायरेक्टर को जेल
Adani agri logistics director land fraud exposed, mahua moitra gautam adani, adani directors
जिस बात का डर था आखिर वही हुआ, Mahua Moitra पर टूट पड़े Adani भक्त
Begane dhandhe me mahua diwani, #बेगाने_धंधे_में_महुआ_दीवानी

Mahua ने दिखाए Adani के 403 मिलियन डॉलर फ्रॉड के सबूत, कहा- अब तो सच कबूलो सेठ । mahua ne dikhae adani ke new maha fraud ke proof
Adani green energy stock, new leaina investment limited Cyprus,
Adani green energy new aleaina scam,

Adani ने खुन्नस में Mahua Moitra के पीछे आदमी छोड़े, अब Japan और फ्रांस ने Adani के उड़ाए होश
#adanimahua mahua on adani japan report on adani, france total energy cancel 50 arab dollar contract with adani,

Mahua Moitra ने भरी सभा में कबूला हां मैंने ही Adani को किया बेनकाब, अब जज भी Adani केस में फंसे
Mahua disclose adani exposed by her then Hindenburg.

https://www.youtube.com/watch?v=nZkRaoVQZiY Mahua Moitra on Adani old Video Viral: जब लोकसभा में महुआ मोइत्रा ने अडानी घेरा था #adanigroup अडानी हिंडनबर्ग रिपोर्ट पर सड़क से संसद तक संग्राम छिड़ा है, विपक्ष एकजुट है, अडानी मामले में JPC की मांग को लेकर लोकसभा और राज्यसभा में भी जमकर हंगामा हुआ था, विपक्ष के सारे नेता लगातार अडानी पर निशाना साध रहे हैं, इस बीच तृणमूल कांग्रेस की सांसद महुआ मोइत्रा का 2019 का एक वीडियो वायरल हो रहा है, जिसमें वो अडानी पर निशाना साधते हुए नजर आ रही है, महुआ मोइत्रा ने ट्वीटर पर लोकसभा का एक वीडियो शेयर करते हुए लिखा (google translation -There is a war which has moved from the streets  to Parliament on the Adani Hindenburg report. The opposition is united.  there was a lot of uproar in the Lok Sabha and the Rajya Sabha regarding the demand for JPC in the Adani case.  all the leaders of the opposition are continuously targeting Adani. Meanwhile a  2019 video of MP Mahua Moitra is going viral, in which she is seen targeting Adani, Mahua Moitra shared a video of Lok Sabha on Twitter and wrote..

Gautam Adani की वजह से हुए नुकसान के लिए PM Modi को Subramanian swami ने दी सलाह | Adani Hindenburg  https://www.youtube.com/watch?v=Uzp9tjkd7gA