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Not read entirely though but first signs of Adani stock manipulation coming through.
Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History
https://hindenburgresearch.com/adani/ US-based firm Hindenburg alleges 'brazen' fraud by Adani; company calls it malicious, baseless https://www.tribuneindia.com/news/bu...aseless-473648 Quote:
The Hindenburg's report details a web of Adani-family controlled offshore shell entities in tax havens spanning the Caribbean and Mauritius to the United Arab Emirates, which it claims were used to facilitate corruption, money laundering and taxpayer theft, while siphoning off money from the group's listed companies.
"Our research involved speaking with dozens of individuals, including former senior executives of Adani Group, reviewing thousands of documents, and conducting diligence site visits in almost half a dozen countries," it said.
Hindenburg claimed to have uncovered "rudimentary efforts seemingly designed to mask the nature of some of the shell entities." "Even if you ignore the findings of our investigation and take the financials of Adani Group at face value, its 7 key listed companies have 85 per cent downside purely on a fundamental basis owing to sky-high valuations," the report said adding key listed Adani companies have also taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing.
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Quote:
Originally Posted by csnanjappa
(Post 5482683)
Not read entirely though but first signs of Adani stock manipulation coming through.
Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History https://hindenburgresearch.com/adani/
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This perhaps deserves a dedicated thread.
The hindenburgresearch are unique and have a track record of flagging corporate misdeeds and making money out of it.
Quote:
Originally Posted by csnanjappa
(Post 5482683)
Not read entirely though but first signs of Adani stock manipulation coming through.
Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History https://hindenburgresearch.com/adani/
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Considering the precarious fundamentals, am not surprised, it was a matter of time. As my Business Strategy Prof told me, you need the Short Sellers, Corporate raiders in this world to ensure companies are kept honest!
Mod Note: Moved posts to a new thread. Read rule no.13 before posting (no political posts)
A couple days ago Lord Adani had some full page front page ads in TOI and ET about how he is busy creating investor wealth and value and all the rest of the con man’s bunkum stock in trade.
How is it that this company or group was simply unheard of till relatively recently?
All cronyism in the end.
From Nothing to Everything in No Time at all!
Let’s just say that it will be difficult to have any kind of open or meaningful discussion on this subject without things getting political. Adani’s fortunes have always been intrinsically tied to the ruling party.
Don't know why but I was always sceptical about buying Adani company stocks and haven't bought any. There was no visible product apart from Adani Ports and the stock prices were just shooting upwards for the past 3 years.
Quote:
Originally Posted by shankar.balan
(Post 5482965)
A couple days ago Lord Adani had some full page front page ads in TOI and ET about how he is busy creating investor wealth and value and all the rest of the con man’s bunkum stock in trade.
How is it that this company or group was simply unheard of till relatively recently?
All cronyism in the end.
From Nothing to Everything in No Time at all!
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Exactly, I mean a fairly not so financially educated, normal middle class Indian like me who stays away from mainstream news noticed Mr. Adani moving from a known entrepreneur to like being Richest in this and that. His net worth grew from maybe a couple of billions to 100s of billions in the span of 2 years, without any of his company producing something that can have such a big impact. They have acquired so many companies and opened new companies whom most likely have not produced anything or neither have the expertise in those fields.
If a guy like me can notice this and have a huge Red Flag in my mind, where are the people who are supposed to have Red flags around this?
The problem is, when this goes bust, which it most likely will, it will be common man who will pay the price.
Rachit
The previous attempt to expose by an Australian media firm who had sensitive info about this same company was muzzled quite badly. I have faith Nationalism will again save the day!
I must admit I made some good money from three three Adani group stocks. Made a timely exit last year :)
Quote:
Originally Posted by Rachit.K.Dogra
(Post 5483042)
If a guy like me can notice this and have a huge Red Flag in my mind, where are the people who are supposed to have Red flags around this?
The problem is, when this goes bust, which it most likely will, it will be common man who will pay the price.
Rachit
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At the risk of going off topic here:
Some of us had similar opinion about Bitcoins and other crypto currency. And some of us chose to ride the wave. End results were the same as you have predicted. However in case of Adani stocks, unknown/clueless participants of this game, who have mutual funds or pension funds, might also end up burning their fingers.
There is a reason why almost no actively managed mutual fund owns Adani group stocks like Adani Enterprises, Adani Total Gas, Adani Green, Adani Transmission and Adani Power. Mutual funds not owning Adani Group stocks is a big red flag.
This means the mutual fund managers know everything there is to know about the Adani Group. After all, these managers don't just spend time infront of their computers/excel sheets - they network among themselves and with investment bankers/research heads/insiders/HNI investors.
However, Adani Ports (Mundra port) and Adani Wilmar (Fortune cooking oil) are an exception, and seem to be proper/legit businesses with good financials (low debt) & reasonable valuation/marketcap (relatively speaking). Having said that, I hope I won't have to eat my words a few years down the line lol:
If Adani stock crashes, it can take down banks that gave loans to the group. So, even if one didn't invest in Adani Enterprises, investments in other stocks like SBI can get affected by a crash in Adani stock. Especially because large amount of loans may have been secured by pledging stock which itself is inflated.
Quote:
Originally Posted by SmartCat
(Post 5483064)
There is a reason why almost no actively managed mutual fund owns Adani group stocks like Adani Enterprises, Adani Total Gas, Adani Green, Adani Transmission and Adani Power. Mutual funds not owning Adani Group stocks is a big red flag.
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Bang on thanks for your analysis, and also all the more reason for alarm that passive index funds have investments in these stocks. Nifty and Nifty Next funds specifically. Retail will be left holding the bag, as usual.
Quote:
Originally Posted by SmartCat
(Post 5483064)
There is a reason why almost no actively managed mutual fund owns Adani group stocks like Adani Enterprises, Adani Total Gas, Adani Green, Adani Transmission and Adani Power. Mutual funds not owning Adani Group stocks is a big red flag.
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Calling it a family business, and the fact that younger brother Rajesh Adani (MD of Adani Enterprises) has been arrested twice in the past is also a red flag.
It would suck to see big banks threatening to go belly up in all this leverage without asset backing, and then the tax payer bailing the banks out. The news will be quickly forgotten, and it all plays out again. We used to see many posts about Subrato Roy and Sahara, that none of the clout made any sense without having any profit making products. I dont know if anyone ever saw a summary of how much the common man got screwed by Sahara. What were the changes that came about after Sahara, Mallya etc. It seems like these stories replay with new characters.
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