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Evidence that Adani Group has engaged in stock manipulation and accounting fraud

hindenburgresearch.com

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Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#91

Post by BLKNSLVR »

stephen_g wrote: post #35

Wow. Adani is super scummy, and from research when they were starting construction on a big mine in Australia we knew they were structuring their tax affairs to not pay any tax here [1], but all this is something else. They have been suing a climate activist here for millions of dollars, and as part of it they had private investigators following him, his wife, and his children , including photographing his children w…

And despite the obviousness of the tax structuring and other, worse, scummy behaviour, the Australian Government at the time was determined to push ahead with clearing the path for Adani to operate what would have been one of largest, if not the largest, mines in Australia.

Infuriating.

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#92

Post by mrandish »

toomuchtodo wrote: post #5
barbazoo wrote: post #3

> Initial Disclosure: After extensive research, we have taken a short position in Adani Group Companies

That is pretty much what Hindenburg does; they find frauds and short them. Peruse their site. I mean, it’s in the name, you know, like the dirigible. https://hindenburgresearch.com/ https://en.wikipedia.org/wiki/Hindenburg_disaster

> That is pretty much what Hindenburg does; they find frauds and short them.

While such firms certainly have an incentive to make the company they've shorted look bad, it turns out that it works best (and is easier) when the company they short actually is bad. Thus, they've found a way to make a business out of identifying frothy financial bubbles built on shaky-to-fraudulent fundamentals and popping them.

It's kind of a public service in the sense that it corrects the market when it goes awry and ultimately they are betting their own money that their investigation is correct.

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#93

Post by spelunker »

barbazoo wrote: post #36
lmm wrote: post #31

Earlier quoted context omitted.

Given that we're reading this, it's probably priced in by now. But in principle the answer would be yes, but only with money you can afford to lose; any investment on a single-name stock is risky, and shorting is even more so.

And it's shorting, so no cap on losses, right?

sell short and set a limit buy order where your appetite for risk ends. But theoretically yea.

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#94

Post by kerpotgh »

gilgoomesh wrote: post #64
safog wrote: post #39

He's too big to fail status in India, so it'll be interesting to see how their short position unfolds. They can keep the scam going for much longer than Hindenburg can keep their short I imagine.

Sometimes, you just need to cut the cancer out.

[dead]

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#95

Post by spelunker »

mrandish wrote: post #92
toomuchtodo wrote: post #5

Earlier quoted context omitted.

That is pretty much what Hindenburg does; they find frauds and short them. Peruse their site. I mean, it’s in the name, you know, like the dirigible. https://hindenburgresearch.com/ https://en.wikipedia.org/wiki/Hindenburg_disaster

> That is pretty much what Hindenburg does; they find frauds and short them. While such firms certainly have an incentive to make the company they've shorted look bad, it turns out that it works best (and is easier) when the company they short actually is bad. Thus, they've found a way to make a business out of identifying frothy financial bubbles built on shaky-to-fraudulent fundamentals and popping them. It's kind…

People often don't like them but they have a function in the market for sure!

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#96

Post by vishnugupta »

HWR_14 wrote: post #65
safog wrote: post #39

He's too big to fail status in India, so it'll be interesting to see how their short position unfolds. They can keep the scam going for much longer than Hindenburg can keep their short I imagine.

I don't understand why any entity is "too big to fail".

My understanding is that if an entity going down results in a widespread wealth destruction in the entire domain then it's deemed to be too-big-to-fail. It would in turn lead to social unrest threatening the stability of government. Like a huge lender going bust would lead to credit shrinkage leading to millions of small/medium businesses going bust.

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#97

Post by suprgeek »

A few items that did not make it into the list:

1) Adani is very close to the current ruling party and the PM - deploying his extensive business network and assets (in various forms) to help get the PM elected (2014) and then re-elected. A bit of googling will reveal the vast scale of politico-corporate nexus between these two - extending all the way back to when they were chums in Gujarat - the Indian state of the PM

2) The only reason the Adani Group has not been hauled up in-front of multiple regulators and law-enforcement agencies on a constant basis is because of #1 above

3)Adani ports seem to be curiously immune to investigations despite literal TONS of drug seizures [1]

4) There were multiple stories of forced resignations being used by the companies across its workforce to trim costs during the pandemic and avoid paying hefty severance per India's strict labor laws

5)A lot of the public sector banks in India are purported to be under pressure to not recall loans or issue fresh loans on demand to him - essentially a federal backstop to all his liabilities - enabling crazy levels of debt

[1] https://www.ndtv.com/india-news/adani-ports-says-its-termina...

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#99

Post by csomar »

safog wrote: post #39

He's too big to fail status in India, so it'll be interesting to see how their short position unfolds. They can keep the scam going for much longer than Hindenburg can keep their short I imagine.

Why do you think Hidenburg released this research? They want to move the market and also pressure his position.

Re: Evidence that Adani Group has engaged in stock manipulation and accounting fraud

#100

Post by wmf »

jimbob45 wrote: post #90
stephen_g wrote: post #35

Wow. Adani is super scummy, and from research when they were starting construction on a big mine in Australia we knew they were structuring their tax affairs to not pay any tax here [1], but all this is something else. They have been suing a climate activist here for millions of dollars, and as part of it they had private investigators following him, his wife, and his children , including photographing his children w…

[flagged]

This family sounds like a hydra of fraud. It's not enough to cut off one head.
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