I was surprised to read about Hindenburg Research - a company that only makes money from short selling.
They analyze the markets and look for black sheep who are doing fraudulent business.
Then they take a short position and make their research results public.
It is expected that the findings will be classified as plausible and that many new short sellers will join them which will result in more profit for Hindenburg Research.
The company recently attracted attention because it was very successful in analyzing and selling short a large Indian company, "Adani Enterprises", which then lost more than half of its stock market value.
The biggest problem of these companies would be that the market will not have the same opinion and maybe another report could lead to a rise in stock price.
Another reason to short a company could be a not that profitable business model. Many Hedge Funds are doing it this way for example with Gamestop stock.
But they did their calculations without the reddit community, which triggered a huge short squeeze as displayed in the chart below:
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