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At this point it seems like Nikola is not at all what it seems, but I've actually been surprised in the opposite direction. For a couple days, news of Nikola b
by ksdale 6y ago
At this point it seems like Nikola is not at all what it seems, but I've actually been surprised in the opposite direction.
For a couple days, news of Nikola being fraudulent were all over everywhere, and when I finally clicked on the link, it's from... someone who is obviously shorting the stock. Every short seller ever tries to convince everyone that the companies they're shorting are doing all sorts of shady stuff.
In this case, everything in the report looks legit, but the number of people credulously citing this report without anyone mentioning that Hindenburg has a massive financial incentive to have Nikola implode has been surprising.
- deleted 6y ago[deleted]
- zwily 6y agoNobody has mentioned they are a short seller? Every article I’ve seen about it mentions it, and Hindenburg themselves are clear about it. You should certainly take that into account when analyzing their report, but it does not mean they should be disregarded.
- tsycho 6y agoBut that's standard, no? The only organizations that publish equity research are investment banks (which rarely publish negative articles since they want to be part of potential future M&A activity), and hedge funds. This type of research takes significant time and effort, and almost no one else does this except short selling hedge funds.
- bhupy 6y agoHindenburg has been pretty upfront about their short position, as has most reporting. OTOH, short sellers actually have skin in the game, they're putting their money where their mouths are. It's an important mechanism in the public market, which counteracts the existing bias in favor of stock value appreciation on account of shareholders endlessly shilling the stock.