Adani Group Shares Slide After Hindenburg Alleges 'Largest Con In Corporate History'

[sl8]

https://www.forbes.com/sites/siladityaray/2023/01/25/adani-group-shares-slide-after-hindenburg-alleges-largest-con-in-corporate-history/

Adani Group Shares Slide After Hindenburg Alleges ‘Largest Con In Corporate History’

Siladitya Ray
Forbes Staff
Jan 25, 2023,02:20am EST
Updated Jan 25, 2023, 04:37am EST

Shares of India’s Adani Group companies slid sharply on Wednesday morning after activist investment firm Hindenburg Research disclosed a short position against the conglomerate, while accusing the companies owned by the world’s third richest person, Gautam Adani, of fraud.

In a report disclosing its short position, Hindenburg alleged that Adani Group companies—owned by Asia’s richest man—had “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”

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[bucolic_frolic]

1. Short first, then declare corporate con ... seems like it will pay off /nt

[Beachnutt]

2. Works every time for the crooks

now they will short it into delisting or r/s.
The SEC is blind.

[Lucky Luciano]

6. Ask the shorts of GameStop how that worked out.

[Beachnutt]

3. 👇

[Just A Box Of Rain]

4. So this group takes a short position, and then publicly announces alleged malsence

against entities who they have placed a bet against (ie that their stock price would fall) and this isn't considered "stock manipulation?"

Seems problematic.

[Lucky Luciano]

5. Perfectly legitimate in my view.

They stand to get run over if wrong. People are allowed to give their opinions.

Incentivizes people to uncover frauds.

Publicizing your shorts takes guts these days. Ask the shorts of GameStop and AMC. The small retail guys if WallStreet Bets ganged up on those shorts and destroyed them utterly and completely.

[Beachnutt]

7. So insider trading is ok too huh ?

I mean let's take a position on a stock then drop some Huge positive news and take a ride up.
Hedge funds are crooked as hell imo.
Citadel posted 16 BILLION profit last year shorting stocks mainly with computer trading using algorythms to manipulate share price and the ceo Ken Griffin is the biggest rethug donor and Desantis supporter.
Amc took a brief run as did gamestop but the algorythms drove them right back down.
Many companies have been driven out of business due to stock manipulation by big hedgefunds.
Hopefully Gensler will get replaced soon or enforce the securities laws.
Imo he is bought off.
Done ranting, have a Great Evening

[Lucky Luciano]

8. An opinion is huge positive news?

There are restrictions on investment bank research departments with regard to trading, but if a hedge fund published their position and the reason they took it, that isn’t suspicious.

I know Citadel well. He didn’t make $16B strictly shorting stocks, but it is certainly a component of their trading.

They do market make stocks and options, so they do need to be able to short freely, but they also need to deliver shares so they can’t be naked short for long. Market making and liquidity would break down if they could not short naked. It is a case where the SEC decided liquidity was far more important than very temporary short positions that might be naked (they cover most of those naked shorts by buying on the bid as MMs).

To be clear, Ken Griffin is a fucking scumbag and is a nightmare to work for - you will be paid well, but you will have no life whatsoever…I have a coworker that used to work there…during his sister’s wedding he was frantically working on his laptop in the parking lot of the venue to get his project over the finish line before the DEADline.

The algos didn’t push GME or AMC back to earth. Their shitty values did. When Wall St Bets ran out of buyers, of course those stocks puked.

[Beachnutt]

9. Take a read here when you have time

https://www.reuters.com/business/finance/federal-prosecutors-probing-short-sellers-wsj-2022-02-16/

https://www.reuters.com/world/us/us-prosecutors-explore-racketeering-charges-short-seller-probe-sources-2022-02-18/

https://www.marketwatch.com/story/why-naked-short-selling-has-suddenly-become-a-hot-topic-11674503568

https://corporatefinanceinstitute.com/resources/equities/dark-pool/

[Just A Box Of Rain]

10. They can get out before any facts are known if they can move the market.

This incentivizes outfits to manipulate stock prices for their own financial gain.

Doesn't seem legal or ethical to me.