Comments by "Sankalp" (@sankalp6872) on "Market has won: For Adani to decide whether he will lose or not" video.

Mr Gupta, this is a wonderful read. You have driven home the essential point without getting into the technicalities of short selling. Very few have the knack for simplifying complex concepts in this manner.
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There is NO "fall" of an Indian company. Adani Group is doing fine. It's just a minor setback for them. They'll have to slow down their expansion and win back the trust of investors. As to Opposition, it's another Rafale and "Chowkidar Chor hai". Once again, they pulled the trigger too early. Personal assaults always work in favor of Modi.
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My heartiest congratulations to the LEFTISTS. Mr. Gautam Adani is out of the world's "Richest 20" list. He is "poor" now. You guys finally did it.
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So what is your point? Let's shut all industries and just start farming? Irrespective of who is in power (BJP or Congress or someone else), without industrialization, there is NO DEVELOPMENT. Also, FYI, Farm subsidies are given to ease inflation. Farm output is already at its MAXIMUM. Farmer income cannot increase without an increase in prices which no govt will ever allow. Hence, we need a mix of efficient farming and more labor force in Industries to PROSPER.
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Empirical evidence is mixed. In fact, when wrong unwinding short positions can backfire very badly. However, it is an efficient practice of price discovery. It provides a playing field to those who think that the stock is "overvalued". These investors would otherwise simply avoid trading in that stock. Nevertheless, speculators dominate the arena.
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@juicy11 You have skipped financial literacy classes hence you wouldn't understand the difference between paper wealth and cash. Nevertheless, I am sure when Adani was in the top 5 "Richest", you were crying about how he got there. At least, you got your wish that he is "poor" now. CONGRATULATIONS.
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Not sure if being "Honest" has got anything to do here. Hindenburg took a bet at mispricing. Unlike Nikola where the proof of concept was suspect, Adani actually has a lot of tangible assets. Short selling is not always a success. In fact, if wrong unwinding those positions could be brutal.
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@tajnotpm6281 A day tops for Retail investors. Market will square off your position at the end of the trading day. Short selling is actually quite difficult in India. In fact, all of Hindenburg's positions were through US traded bonds and derivatives.
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@jaisalsanghvi Hi Jaisal. Firstly, I am not giving Adani a free pass, but the appropriate word to use is "allegedly". Thus, "Adani allegedly transferred...". The supposed "related" party transactions with Vinod Adani should have been flagged by auditors. Nevertheless, unless we know more can only speculate about the quality. As you know, speculations are not evidence admissible in courts. Loans were extended by both public and private banks. Adani has not defaulted on any of his payments. Pledged shares of promoters are less than 10% now (from the over 50% high of 2019-20). Collateral extends to hard assets. These are not really that troublesome. However, the central allegations of stock price manipulation are of more importance. If I remember correctly, a few months back, Sucheta Dalal had already exposed this. She had tweeted regarding Mauritius-based companies involved in rigging prices. That should have been the first warning. Finally. Yes, these were public records, and it is quite surprising that in a country of 1.4 billion, nobody reads a 200-page annual report. So yes, an American did put "honest," and thorough efforts into its research and is now minting money. Adani group needs better corporate governance. It has its task cut out going forward. Regarding the "fraud" part, I wouldn't buy so much as that would require several more qualifications. It was an overvalued stock that crashed.
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The Hindenburg Report is devoid of evidence and is mostly based on conjectures. Corporate disclosure mishaps are just a few fines at best. Nevertheless, at 400% P/E, the firms were always OVERVALUED (esp Adani Green). Hence, PRICE CORRECTION was imminent. The group has a comfortable pre-tax profit of Rs 17,000 crores. It is in no immediate danger of any kind. The Left's JUBILATION is premature & schadenfreude, while the Right's shoddy defense is laughable. Markets have NO IDEOLOGY and owe loyalty only to MONEY. Overall, a BRUTAL REALITY CHECK with plenty of lessons. First, for Adani Group as it grows, it will have to build trust and profile like the Tatas or cashflows like Mukesh Ambani, so that it is immune to "hit jobs". For investors, it's back to basics. Fundamentals and valuations CANNOT deviate for too long. Short selling leads to price discovery. Short Selling is tricky and if wrong unwinding could be a nightmare. We shouldn't DEMONIZE success.
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