Gautam Adani

Business is supposed to empower humanity, empower life. When I started making websites it had simple purpose, you can say a lot in it than what you can say in a vising card, and you can tell it to anyone on this planet who has a computer. The bet was in far future every home will have a desktop computer. Now most of you will be reading this on your palm top which is wrongly called as mobile phone (phone is just one functionality that the computer in your palm could do).

It’s that simple business is, you add value, and look for undervalued things now that will be valuable in the future.

So looking at Adani stocks today (the range of the graph below is 3 months):

It has kind of halved in value, and that’s because of the Hindenburg report. I thought Modi would have banned this site saying it’s a national threat, but well, he hasn’t banned BBC either. Thankfully Hindenburg does not have its offices in India, or else Modi would have raided it with tax men.

Adani haven’t submitted any comprehensive counter to Hindenburg, so this has put nervousness into its investors. If I had a stock in dubious company, definitely I would sell it. So in this blog I want to tell you what Adani could have done if it is a pure company:

Welcome Hindenburg analysis

First, asking doubts about a business is a good thing, it helps to find faults and fix it, so Adani should have welcomed questioning.

Ask time for report analysis

Next it could have asked time to analyze the report, in that time it could have set an executive team to analyze it, prepare answers to Hindenburg.

Reply to Hindenburg

Next would be a comprehensive reply to Hindenburg, it could be congratulating Hindenburg to have found faults and ways Adani would take steps to repair it, or to present their own facts countering Hindenburg. It’s as simple as that.

What happened?

The way Adani is behaving is as though it’s an unquestionable King. This I feel is due to the fact that it receives unconditional support from Indian dictators and neither Adani, nor the government feel that they are answerable to investors and people.

This simply means Adani and India will keep feeling great, just like Pakistan felt great all these years, until the day of inevitable collapse, and then nothing can be done.