New Delhi: After the report of the American research firm Hindenburg Research came out, the difficulties of Asian businessman Gautam Adani seem to be increasing. Adani, who was once the world's second-richest person, has now slipped to the 21st position in the list of the world's top richest person list. According to the Bloomberg Billionaires Index, due to the decline in Gautam Adani's net worth, he has now slipped to the 21st position on the list of billionaires. His net worth has come down to $61.3 billion and he has suffered a loss of $10.7 billion in the last 24 hours. All this is the result of the Hindenburg report, which is why the shares of Adani Group companies are continuously falling.
Actually, Hindenburg has made big revelations about the Adani Group in his report. He has alleged that the shares of Adani Group are overpriced. Not only this, but Hindenburg has also made serious allegations regarding irregularities in the accounts of the Adani Group. After this disclosure, the selling of the shares of Adani Group has intensified. The shares of Adani Group are continuously falling and the market cap is continuously declining. A report has vacated Rs 5.5 lakh crore from Adani's market cap. In such a situation, the question is also arising in the minds of many people how does that American company, which is looting Adani's money, earn? What about Hindenburg's earnings? How does one report make Hindenburg billions?
What is the source of income of Hindenburg?
Let us tell you that apart from being a short selling company, Hindenburg is also an investment company. As per the company profile, the research firm is an activist short seller. Now to understand a short seller company you have to first understand short selling. Actually, buying a share at a low price and selling it at an increased price when its price rises are considered a hit formula for earning in the stock market. In the business world, this is called a log position. Investors adopt this method when the market is expected to rise. On the contrary, when there is a possibility of recession or a fall in the stock of a company, then the method of a short position is adopted. That is, when the investor feels that the share prices of this company will fall in the coming days and will benefit from it, then he adopts the method of short selling. Now the activists who are short sellers, constantly try to convince investors that the company is overvalued or in debt. In relation to the company which the short seller 'targets', they repeatedly express the possibility of debt and overpricing or disturbances. Many times the shares of that company crash and these short selling companies benefit from it.
Hindenburg is also one such company and it earns in the same way. Now Hindenburg has also taken a short position in Adani company's bond in America to make a profit and he himself has given information regarding this. Hindenburg has issued a report on Adani Group after taking a short position in Adani shares. Let us take an example to understand this. Suppose a short seller expects that the price of a stock is going to fall, he will borrow the stock from a broker and sell it to other investors. The short seller will get the profit between this high and low price. Similarly, Hindenburg is now preparing to reap profits from the falling shares of Adani Group.
Let us tell you that Adani is not the first company for which Hindenburg has released the report. Even before this, Hindenburg has issued such reports against many big companies. This company targets any company and first finds flaws in it, then issues its report. During this report, when the shares of that company start falling, Hindenburg earns profit by buying it. Due to Hindenburg's report, Adani's shares have fallen by 25 percent.
How many companies Hindenburg has already targeted:-
Even before the negative report of Adani Group, Hindenburg has looted many companies. In the year 2020, Hindenburg released about 16 reports. Because of his reports, the shares of the companies registered an average decline of 15 percent. According to a media report, Hindenburg had issued reports against companies like Nikola, SCWORX, Genius Brand, Ideanomic, Vince Finance, Genius Brands, SC Wrox, HF Food, Bloom Energy, Aphria, Twitter Inc and earned profit.
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