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[deleted] t1_j6vbkux wrote

[deleted]

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VanimalCracker t1_j6veozz wrote

They don't have stock. It's a private company. It caused their valuation to crumble. The short seller was like "there's no way anyone would pay that price per share" and the market was like, yep good call. That does seem overpriced. So their valuation fell.

So now the valuation fell to a point where the owners declined to sell shares to the public at all. They think the shares are worth more than what the marker will buy and the market thinks they are worth less than the company asks.

Spoiler: the market is right. Their valuation doubled in a year. Yes, the valuation tanked ~50% in a few days, but it's still +8-9% in 12 months. It was extremely overvalued.

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[deleted] t1_j6vs3oa wrote

[removed]

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alternativepuffin t1_j6w8ghi wrote

You're literally describing how the market works though. People doing their due diligence and investigating the proper value of things will be rewarded financially. Either they won't expose themselves to unnecessary risk, or they'll directly profit. They will either preserve their capital or gain more of it.

This is why shorts exist. To financially compensate the due diligence of people who call bullshit on companies.

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pmmichalowski t1_j6wchc4 wrote

You just figured out why so many people look at free market and capitalism and see them as insane idea.

Congratulations comrade.

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psu021 t1_j6vkxgy wrote

The business world is cut-throat. Maybe you’re right and the accusations are false, and Hindenburg Research has a significant long position in a competing company, which would give them reason to publish this. If that is that case, Adani should sue them. An unwillingness to do so could be interpreted by investors as the claims being true.

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Mydickradiates t1_j6whxo3 wrote

yes maybe, if you don't look at them. They are extremely detailed accusations

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