Looks like Hindenburg has done its homework on Adani, says NYU professor

‘Corporations are more likely to be corporate autocratic in their behaviour…when the holding company is controlled by a family, it’s terrible, and it’s dangerous when that family’s holding company has political ties’

Hindenburg Research has done its homework on the Adani group, said Ashwath Damodaran, a renowned professor of finance at New York University. But if the group manages to falsify even some trivial component of the Hindenburg report, the New York-based investment research firm risks losing credibility, he said in an interview.

It has been more than a year since the US and many other stock markets were at their peak. So, are there good buying opportunities for equity investors today?

When do you expect the stock to resume its uptrend?

To be honest, why does it matter if you are an investor? If you’re a trader, you care about price changes here and now, but I’m not. As long as the market isn’t massively overvalued when you enter, and you find a stock that you believe is going to give you good value if you’re paying it. offered, does it matter to you that the stock may go down a few days, weeks or even months before it is delivered? If your answer is yes, then you might not be suited to invest by nature, but to make trading your sport.

How do you view corporate governance and regulation of equity markets in India in the wake of the Adani-Hindenburg controversy?

Corporations are shareholder democracies only in theory and are more likely to be corporate autocracies in practice. Of course, it gets worse when you invest in a holding company, which is a holding pen for a dozen or more different companies; Terrible, when that holding company is controlled by a family, which can transfer value to the companies it holds; More dangerous, when that family holding company has political ties. I’ll take the Hindenburg group’s thesis with a grain of salt, as they’re interested in whether it’s true, but they seem to have done their homework. My criticism is that by making so many different claims of wrongdoing at the company, some trivial and some massive, they risk losing credibility, because all Adani has to do is show that among the trivial components of the thesis One does not get caught.

What is the future of cryptocurrencies after the crash in 2022? Will they make a comeback, and will central banks allow this to happen?

Since very few people were using them in actual transactions before 2022, and very few are using them now, I’m not sure much has changed. Bitcoin is an inefficient currency and a poorly performing collectible, which leaves open the question of what exactly you were getting for $50,000 in 2021, $20,000 today or $2,000 or $200,000 from now.