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I have made the decision to disband Hindenburg Research

hindenburgresearch.com

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Re: I have made the decision to disband Hindenburg Research

#61
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

I was pretty amazed to see him link this particular Lee Burridge set from Bali. I’ve watched/listened to it many times over and it never fails to put me in a happier state of mind.

Re: I have made the decision to disband Hindenburg Research

#62
post #57
post #49

Earlier quoted context omitted.

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 c…

Yes, but borrowing short is fundamentally leveraged. As long as the stock doesn't increase in value, you don't need much of your own cash to secure it - because you're holding the cash from selling it.

But, of course, that gets ugly when the stock goes up; that's when you have to start putting your own money in against the borrow.

Re: I have made the decision to disband Hindenburg Research

#63
post #57
post #49

Earlier quoted context omitted.

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 c…

You borrow 10 shares that are currently worth $10 each. You immediately sell and get $100.

The price drops to $1 per share. You spend $10 to buy those shares and return your loan.

So you spent $10 and made $90. That's a 9x gain.

Yes you cannot make more than $100. But of course you can! Do the short on 1000 shares instead of 10.

The more confident you are of the share price going down, the more shares you borrow. Unlimited upside.

Re: I have made the decision to disband Hindenburg Research

#64
post #63
post #57

Earlier quoted context omitted.

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 c…

You borrow 10 shares that are currently worth $10 each. You immediately sell and get $100. The price drops to $1 per share. You spend $10 to buy those shares and return your loan. So you spent $10 and made $90. That's a 9x gain. Yes you cannot make more than $100. But of course you can! Do the short on 1000 shares instead of 10. The more confident you are of the share price going down, the more shares you borrow. Unl…

Isn't this a bit like arguing that you can make infinite money by borrowing infinite money and going long? You have to maintain margin requirements which limits how many shares you can borrow so again, you can really only double your money (not even double, iiuc your account has to have 150% of the value of your short), unless there's something I'm not seeing.

Re: I have made the decision to disband Hindenburg Research

#65
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.

That's not how that works. They take out short positions and then release the info to profit off the drop when they announce. Announcing publically is how they make their profit, not them letting you in on it. Informational advantage is their entire strategy.

Re: I have made the decision to disband Hindenburg Research

#66
post #12

For myself at least that was a wild behind the curtain reveal; for a group that's had such a profound impact exposing some of the better kept secrets of some of the worst people and companies, Nate presents himself and his associates as surprisingly ordinary day to day types armed with grit and determination.

They are short sellers, were you expecting roided out pro-wrestlers with tats and wild hair or something?

Absolutely, it's well known that Jane Street and other major traders draw heavily on the former WWW stable for their short staffing.

Re: I have made the decision to disband Hindenburg Research

#67
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.

That's not how that works. They take out short positions and then release the info to profit off the drop when they announce. Announcing publically is how they make their profit, not them letting you in on it. Informational advantage is their entire strategy.

Apropos user name ;)

Re: I have made the decision to disband Hindenburg Research

#68
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

I actually skimmed through looking for when the inspirational talk starts.

Re: I have made the decision to disband Hindenburg Research

#70

In an upcoming age of oligarchy, regulation will be adapted to suit business owners. As an example, it seems that Gautam Adani is friendly with Trump. What will be the impact on the SEC? What are future scenarios of fraud enabled by weaker regulations? But this is a regretable, but wise move. Love the fact that he linked a DJ set. Godspeed, Hindenburg folks! I started to really appreciate your work, when I read Dan M…

> In an upcoming age of oligarchy oligarchy has been going on for a long time, regardless of political affiliations. to see why i say this, look at (no relation) https://quiverquant.com , and you'll see professional politicians with sub $180k salaries worth tens of millions of dollars, for just one example.

'X has been happening for a long time' is an old tactic to hide bad things behind some undefined excuse of inevitability, and discourage any action. Corruption has been happening for a long time, but that doesn't mean it can't get much worse or, through our action, much better.

What does it even mean? What does it matter if it's been 'going on for a long time'?

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