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Skilled
Yet why is no legal action being taken against Adani? where is the fraud where is the crime? My point is that some external entity knows nothing about what happens here.Is that so? I believe SEBI is a corrupt and incompetent organization that is controlled by the government. My family has been involved in the stock market since the early 1990s and we have witnessed several interesting cases. I can share some of the more recent ones with you.
I would not rule out legal action in the future by Adani against Hindenberg. You are presuming guilt on the basis of allegationsThe evidence against Adani is strong and clear. If it were false, Adani would have immediately taken legal action against Hindenburg in the USA. However, they likely recognize that pursuing legal action could lead to further damaging revelations during the discovery process.
Adani has hard assets that are not going anywhere. This is not some software company in the dot com boom. They will recover and are proving a good deal for takers who get in early. The FT report mentioned three companies he did a hatchet job on had recovered with no evidence of any wrongdoing. At some point, this guy's luck runs out and people ignore him. There will be others to take his place.Dead Cat bounce! No company goes down in a linear fashion, and the same has happened with the Adani group. Most of the Adani group shares have lost significant value, and there are currently no buyers for some of the stocks, especially the biggest holding of LIC, which is Adani Total Gas. It has gone down further from the prices of February 3rd, as shown in the screenshot below, and there are still no buyers. It's currently trading at 213 times its net profit after losing more than 75% of its value. Now imagine the peak valuations.
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I'm not interested in getting into verticals. Today it's Adani, tomorrow it's something else day after again something else. I'm talking macro. Someone asked I answered. You do not understand what is going on here at the geopolitical level. For you, this is just a stock, just another company. What it is doing, how it fits into larger plans you don't care.I hope we can limit our discussion to the facts of the company and not India, China, Pak, Ladakh, Soros Foros, etc.
It remains to be seen how much the government's plan to set up a resilient supply chain has been setback as a result of this stunt. Nobody can answer that as yet.
How much is that in real money?The bonds of Adani Ports, Adani Green, Adani International, Adani Transmission, and Adani Electricity Mumbai are currently trading in the bond markets, and they can be easily shorted on various international platforms. This should have resulted in a 30% return on capital, which is not bad for large capital. Most Adani stocks are cash market stocks except for Adani Ent and Adani Ports. Nate disclosed in the report that he does not hold an Indian derivatives position, but he does talk about exposure to international derivatives of Adani stocks, although it is unclear where they are traded.
You're saying they made their money or most of it anyway in the bond market. Not the share market. This FT report came up short on the distinction between bonds vs shares. We will have to wait for more reports to speak specifically on that.
Hundred billion of value wiped out? No, I think they would have a much bigger incentive here that to do a freebie.Nate is not alone in looking to short Adani stocks. Many domestic and international players have attempted to do so since 2020, but they have failed to find a good way and have cancelled their plans. By uncovering this fraud, both Nate and Hindenburg have gained a significant reputation, which will benefit them in the long run. It is worth noting that not all reports are created solely for the purpose of making a profit, but also for creating goodwill. His track record is legendary, and he does not produce reports until he is certain of fraud.
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