According to Hindenburg, it focuses on “forensic financial research.” In plain English, it searches for instances of business corruption or fraud, such as abnormalities in the accounting process and dishonest managers.
According to the Washington Post, which described how Hindenburg Research allegedly helped bring down a $500 million scheme that specifically targeted Mormons, the company has even earned the reputation of being known as Ponzi hunters in some quarters.
WHERE DID IT GET ITS NAME?
The airship that memorably caught fire in the 1930s to the scream of “Oh, the humanity,” the Hindenburg, is viewed by the company as the “epitome of a fully man-made, absolutely avoidable calamity.” It claims to search for similar catastrophes in the financial markets “before they entice more gullible victims.”
WHO ELSE HINDENBURG HAS FOLLOWED?
It is likely best known for a 2020 report on Nikola, an electric vehicle firm whose founder Hindenburg made false claims to establish agreements with prestigious automakers eager to overtake Tesla. Hindenburg said, among other things, that Nikola staged a video of its truck traveling down a road to allay doubts about the truck. According to Hindenburg, the truck was simply rolling down a hill after being hauled to the top of the footage.
WHAT ADVANTAGES DOES HINDENBURG HAVE FROM THIS?
It may bring in money. It claimed in its Adani report to have acquired a “short position in Adani Group Companies” through bonds traded in the United States and other investments traded outside of India.
Similar “short” bets have been placed against other businesses that it has written unfavorable reports on. A “short” trade is a strategy to profit if the value of an investment decreases. After then, Hindenburg stands to gain if the price of a company’s shares or bonds drops as a result of the report’s unfavorable press.
These short sellers have come under fire for unfairly driving down stock values with perhaps baseless accusations. However, supporters also refer to them as a vital component of a stock market that keeps stock prices high.
FILE- Adani Group Chairman Gautam Adani speaks on January 18, 2019, in Gandhinagar, India, at the beginning of the 9th Vibrant Gujarat Global Summit. A financial research company by the name of Hindenburg Research has a reputation for driving the stock prices of its targets down. It is once again making news after challenging Indian coal mining mogul Gautam Adani, one of the richest men in the world. It charged the Adani Group, the second-largest company in India, with blatant stock manipulation and accounting fraud last week.
In Gandhinagar, India, on January 18, 2019, Adani Group Chairman Gautam Adani delivered a speech at the beginning of the 9th Vibrant Gujarat Global Summit. A financial research company by the name of Hindenburg Research has a reputation for driving the stock prices of its targets down. It is once again making news after challenging Indian coal mining mogul Gautam Adani, one of the richest men in the world. It charged the Adani Group, the second-largest company in India, with blatant stock manipulation and accounting fraud last week.
One of the richest men in the world will be challenged by Hindenburg Research, the financial research company with an explosive name and a track record of causing its targets’ stock values to plummet. After exposing the Indian company Adani Group of “a blatant stock manipulation and accounting fraud scheme” last week, Hindenburg is once again making headlines. In addition to analyses of hundreds of papers and interviews with former Adani senior executives, it referenced two years of investigation. The charges have been denounced by the Adani Group as “a vicious combination of selective misinformation and stale, unsubstantiated, and discredited allegations that have been tried and dismissed by India’s highest courts.”