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I have made the decision to disband Hindenburg Research

hindenburgresearch.com

51–60 of 430 posts

Re: I have made the decision to disband Hindenburg Research

#51
post #14

Did he... link the wrong URL at the end of the post? I thought for sure it was going to be some sort of heartfelt speech, or motivational message, or something. But it's an instrumental DJ set which seems totally out of left field

And the highlighted comment on that video (because it's got a lot of upvotes) is "Who's here because of Hindenburg?"...

I suppose all the research work, that comment, and the 750+ thumbs-ups, and my cynical meta-comment all brought value to the world. But I'm only sure of one of those things.

Re: I have made the decision to disband Hindenburg Research

#52
post #30

Getting out while they are ahead is a smart move, especially considering multiple governments have started to take a closer look at their shorting tactics.

Can someone give me the context please? I’ve never heard of this organisation before. What do they do and what are they known for?

Re: I have made the decision to disband Hindenburg Research

#54
post #45

Earlier quoted context omitted.

I'm assuming when he says "governments taking a look at" he means like the Indian government and it's more of a Mafia-type "taking a look at" than a serious inquiry with any actual merit. A strongarm type thing

Pretty big allegations without any source.

But the Indian regulator was going after the short seller suggesting they used non public info. Turns out India is corrupt which we already knew as a fact and one of the chiefs owned the stock.

Re: I have made the decision to disband Hindenburg Research

#55
post #30

Getting out while they are ahead is a smart move, especially considering multiple governments have started to take a closer look at their shorting tactics.

Can someone give me the context please? I’ve never heard of this organisation before. What do they do and what are they known for?

https://en.wikipedia.org/wiki/Hindenburg_Research

Re: I have made the decision to disband Hindenburg Research

#56
post #53

What no one touches is that he used to unmask the devil and also let the regular folks (if they trust him) take short positions just like he did. Sort of Robin Hood with weak reference.

I mean that's the whole business of a short seller.

Take a big short position, then spread the bad news. Hopefully, it's true: the stock drops, and you make a mint. If you fail to spread the news, or you don't get the facts right, the stock goes up and you lose.

Re: I have made the decision to disband Hindenburg Research

#57
post #49
post #8

Earlier quoted context omitted.

> Shorting tends to be intrinsically harder because the market goes up over time and Americans are generally optimists Also, with shorting the best you can do is double your money (if the stock goes to 0), while you can lose an unlimited amount (as there’s no cap on a rising stock); whereas with going long, you can only lose all your money (again, if it goes to 0), but you can gain an unlimited amount.

This is incorrect. The way shorting works is you borrow a stock (and keep paying premium for the duration) and sell it Premiums are usually small, so you can make many multiples of paid premium And since their business model is releasing the findings, which in turn makes the stock drop, they can time their short position very well and don't need to pay premiums for long

I think you misunderstood what I meant by "your money" in "double your money" (and I was unclear). You can only earn the value of the stocks you borrow. When trading long, the gain is unlimited.

According to Investopedia, "the Federal Reserve Board requires all short sale accounts to have 150% of the value of the short sale at the time the sale is initiated" so it's the same principle as going long with margin. You can leverage yourself but there's a limit.

Re: I have made the decision to disband Hindenburg Research

#59
I've ironically lost more money the more closely I've paid attention to my investments because I was naively confident in the market's ability (or as I've come to suspect, willingness) to react to evidence of fraud.

The amount of deceit put out into the world and gobbled up, on purpose, in business is obscene and seriously depressing. The magnitude of damage to psyches and thus economies that anyone acting in a fraudulent manner in finance creates is far-reaching and immeasurable. Punishment for financial crimes should be calculated based on the average lifetime earnings of a citizen -- if your victims are folks earning at or below the average wage, and you've scammed 100 lifetimes worth of average earnings, it's as if you've murdered 100 people.

Hindenburg's reports were a true pleasure to read, and their track record proves their positive contribution to society. Many self-important people online are quick to pounce on short sellers as being evil, and that will forever be a serious red flag to me thanks in no small part to Nate Anderson and the folks at Hindenburg Research.

Re: I have made the decision to disband Hindenburg Research

#60
post #2

Has anyone else publicly copied the Hindenburg investigation/financial model? It's not proprietary AFAIK.

What they do isn't anything new or revolutionary. Short sellers have existed ever since public markets have existed. See Muddy Waters Research, Citron Research, Kynikos Associates, Pershing Square (famous for their crusade against Herbalife), Gotham Research, all of the Big Short folks. And these are just the active ones.
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