Introduction –
The Hindenburg Research LLC a American registered private company comes into lime light specially in India after India’s most growing company lose nearly 100 billion dollar market capital in share market after published report on 24 January 2023. Earlier only financial field experts or professionals knows about this company who do their work from America all over the world as a forensic finance research, some media says them activism of financial world.
Hindenburg Research specially a short seller company who makes financial reports of the companies who they feel financial fraud towards peoples investment as per their website. In India we have seen crash in share market specially in Adani Group’s companies after published report of Hindenburg Research. We have seen the criticism on this Research company from some group of people and main stream media where as social media and opposition group of politics justify this report. So must see the facts about this company and their activism critically through this article.
Background of Hindenburg Research Company –
The found of Hindenburg Research USA based company had Nathen Anderson registered in 2017, named this from Hindenburg airship accident tragedy in 1937 which was presumed to be happened because of lack of negligence and 35 people were died. They look for similar man-made disasters floating around in the market and their aim to shed light on them before they lure in more unsuspecting victims as per their official website.
The founder named this to his company as a activism in financial system with business and enlighten the investors of the world through their forensic research on various companies whose intention is doing fraud and increase their wealth in financial market.
Nathen Anderson comes from Israel and founded the Hindenburg Research company in America where in their mail object of company is as per disclosed with their official website.
- Find out Accounting irregularities.
- Bad actors in management or key service provider roles
- Undisclosed related-party transactions
- Illegal/unethical business or financial reporting practices
- Undisclosed regulatory, product, or financial issues
What does Hindenburg Research do –
The Hindenburg Research company is private company whose main business model is investment in short selling through world wide before that they are doing their research on that particular company. Hindenburg Research specializes in forensic financial research. Their experience in the investment management industry spans over a decade, with a historical focus on equity, credit, and derivatives analysis as specified in their social media profile.
Forensic financial research which they work on with their team to find out wrongs of the company in the world, Nichola and the Adani Group company is their main activism in financial market. They makes money from short selling all over the world with their research which is very risky with legally and financially also. Their highlights report published in September 2020 of Nichola company and 2023 of Adani Group of companies. They have published various another reports in the market which increased their credibility in financial world.
How did the Hindenburg impact the world? –
- * 2020 September published report against Nochola the American company titled “How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America” then Nichola’s stock dropped by 40% and Securities and Exchange Commission(SEC) enquiry was opened. The founder of the Nichola Trevor Milton specially target of this report which result in to resignation of his post as Executive Chairman.
- * 2020 June Hindenburg published report against “WINS Finance” pointing out that a company subsidiary in China was subject to a RMB 350 million asset freeze which had not been disclosed to U.S. investors. Hindenburg also pointed out that WINS’ parent, which owned 67.7% of WINS’ equity, had already been declared insolvent in China with no disclosure to U.S. investors.
- * 2019 September Hindenburg published Report against Bloom Energy (NASDAQ:BE) had billions of dollars in undisclosed off-balance sheet liabilities. They specifically pointed out issues relating to the company’s accounting around its service agreements.
- * 2018 December Hindenburg published Report against Yangtze River Port & Logistics (NASDAQ:YRIV), a $2 billion market cap China-based logistics company. Their investigation found that the company’s key asset didn’t appear to exist, among other major anomalies. The company filed case against Hindenburg, alleging defamation. The company was delisted from NASDAQ 6 months later, lost over 98% of its market cap, and now has a “caveat emptor” warning on its OTC ticker. The lawsuit against Hindenburg Research was subsequently dismissed
- * 2017 December Hindenburg published Report against Riot Blockchain’s (NASDAQ:RIOT) suspicious acquisitions that appeared designed to benefit insiders. Later in February 2018 CNBC ran an exposé that corroborated and expounded on our findings. Riot’s then-CEO was charged with fraud by the SEC. Its former CEO is reportedly now under active criminal investigation.
- * 2016 Hindenburg founder Nate Anderson submitted a whistleblower report before formation of Hindenburg Research Company to the SEC relating to RD Legal, a hedge fund that was later charged by the commission for allegedly making material misstatements to its investors. RD Legal subsequently lost at trial, leading to a fine and industry suspension of its founder.
( Source : HINDENBURG RESEARCH OFFICIAL WEBSITE)
How does Hindenburg Research make money?-
Adani Group alleged that Hindenburg had personal interest with fall of Adani Groups stocks. Hindenburg Research can make money. In its Adani report, it said that it had taken a “short position in Adani Group Companies” through bonds that trade in the U.S. and other investments that trade outside India. But they are smart business firm who targets those companies who has actually some thing wrong in it which legally protect them and they do their business with financial activism.
Hindenburg Research has made similar “short” bets against other companies it published unflattering reports on. A “short” trade is a way for someone to make money if an investment’s price falls. Afterward, if the price of a company’s stock or bonds falls because of the negative attention from the report, Hindenburg can profit.
Such short sellers have been criticized for unfairly pushing down prices of stocks with potentially unfounded allegations. But proponents also call them a healthy part of a stock market, keeping stock prices in check and preventing them from running too high or over price. In India there is no facility of investment in part of the stock price so already stock prices are today very high and normal invest cant able to buy these stocks.
What is Hindenburg research controversy? –
At 2030 India become 3rd largest economy of the world by overtaking the developed countries like Japan and Germany. India is the world’s biggest consumer market for the multi national companies therefore on the world map India is the crucial market. In the World’s biggest top 10 companies America has most of the companies in it so we can imagine that the dominance of America in world economical market. Indian most people alleged that Adani Group’s controversy is western world’s political agenda but there is no official statement from the Indian government yet.
Hindenburg Research definitely profiting from these controversies but they smartly targeting those companies who had some thing wrong in the their companies. Hindenburg past records of investigation of these companies shows that and legally there were filed some cases against them but most of the time it was wrong decisions by them. Because their research has been fact base and evidence are there of frauds in past. So there business model is very risky in practically says because by purchasing bonds on International market and short selling them in by publishing reports against these companies will be revers back but they chosen companies very smartly and carefully till the date.
What is Hindenburg report about Adani Group? –
The Hindenburg Research company a forensic finance research company earlier nobody knows in India who they are ? except financial professionals. After published report against Adani group their listed companies lose nearly 100 billion US dollar in stock market and many more financial crises faced by this group. As we seen the various reports against world companies from Hindenburg Research firm most of the companies loose their goodwill and share price from concern stock market.
After releasing this report the officials of Adani group and himself Gautam Adani clarified allegation of Hindenburg Report and said that this attack on Indian economical growth. More politics we have seen for this controversy in India from ruling party to opposition leader for their own interest. Truth is still be judged by in the court which Adani said in his media interview about filing a suit against Hindenburg. But Hindenburg is a US base company suit filed in USA increased the problems to Adani Group strategically ?
Is Hindenburg Research under investigation? –
Anderson on his tweeter handle debunked the social media criticism against their firm for personal interest, As per tweeter handle of Anderson “We are banned by FINRA (never); Had bank accounts seized (no); Can’t publish on NYSE-listed co’s (this isn’t a thing); Are under investigation (no),” he said. That means both party criticized each other and if this case goes to US court then it has been political influence on this case? who knows.
Hindenburg smartly targeting companies to published investigation reports against them and most of the companies they are having short selling of bonds in International market. They also not denied this fact that they have their personal bonds short selling interest in this company but legally what Adani Group do against Hindenburg Research firm the crucial question.
Critical Analysis of Hindenburg Research Company –
There is always conflict between western world and other part of the world China and India is the world’s emerging countries, every body know China and USA political and economical war at public domain. There is another major conflict between Russia and USA which last two years we have seen the stand of Indian foreign affairs towards neutrality and priority with their own interest rather than favoring western interest.
Is the Hindenburg Research firm tool of political agenda against other part of the world to maintained supremacy of America as super power ? Because BBC report against prime minister of India and Hindenburg report timing is one year of loksabha election 2024 in India. CIA role in international politics is not hidden from all countries of the world. Hindenburg Research firm is a short seller who project themselves activist against fraud happens in economical and financial world.
Conclusion –
In Hindenburg report they alleged most of their target by publishing their financial report on their website which was founded Nathen Anderson who is chartered financial Analyst and his firm work as a forensic finance research.
Through their various reports specially Nichola and Adani Group report is highlights of their career. Before 24 January 2023 not much people know about what is Hindenburg Research firm and who is Nathen Anderson.
Hindenburg Research firm has a forensic finance research work which their earning source is investment and advisory. Short selling thorough bonds where they profiting but it is very risky and courageous business because to fight with powerful corporate giant in the world is very dangerous job. But We have to see, are they published report against giant companies of USA who is the backbone of their economy and economical rule of worldwide.
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