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Comment by paxys

3 days ago

Getting out while they are ahead is a smart move, especially considering multiple governments have started to take a closer look at their shorting tactics.

20 comments

paxys

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CyberDildonics  3 days ago

Their "shorting tactics" ? You mean doing extensive well sourced research that convinces other people that their position is correct?

  • aprilthird2021  3 days ago

    I'm assuming when he says "governments taking a look at" he means like the Indian government and it's more of a Mafia-type "taking a look at" than a serious inquiry with any actual merit. A strongarm type thing

    • Over2Chars  3 days ago

      I think its brought attention to numerous cases of accounting and other shenanigans.

      What I've noticed, casually, is that they often target companies or management with a pattern of fraud and abuse, and surprise they keep doing it.

      VP of Sales gets slapped on the wrist for illegal tactics?

      A few years later he goes on to be promoted to CEO and.... does the same thing!

      Amazing.

      2 replies →

  • adastra22  3 days ago

    They interview people involved with these companies, then based on these interviews write report that is privately distributed and take out coordinated short positions.

    That’s almost the definition of insider trading. Almost. Now afaik what they are doing is nominally above board, but they are walking a very fine line.

    In less than a week a president will take power whose chief advisor has a really big grudge against short sellers.

    Getting out now is on point for Hindenburg.

hiyer  3 days ago

I wouldn't say they were ahead at least in terms of reputation. They targeted India's Adani group and failed. The Supermicro "revelation" was also a damp squib. I suppose they made plenty of money with their short-selling though, so in that sense they are, perhaps, ahead enough.

  • fakedang  2 days ago

    Only failed Adani because they misunderstood how deep the Indian government would go to join in the cover-up, instead of actually investigating it.

    The Big 4 auditor for Supermicro literally quit, citing concerns. It's the SEC's job to do the investigating (and it's failed badly and likely to fail more with the coming admin).

  • omcnoe  3 days ago

    Supermicro stock is down 40% from the publishing of the report, hardly a damp squib.

arrowsmith  3 days ago

Can someone give me the context please? I’ve never heard of this organisation before. What do they do and what are they known for?