Hindenburgresearch — Trading Ideas on TradingView

CVNA Carvana Sell-Off: Hindenburg Research Short Position If you haven`t bought CVNA at $25: Carvana Stock Now Faces Major Risks: A Price Target of $127 Carvana Co. (CVNA), currently trading at $199, faces mounting scrutiny after allegations from Hindenburg Research. The short-seller’s report, titled “Carvana: A Father-Son Accounting Grift for the Ages,” accuses the company of unsustainable growth fueled by lax underwriting standards and questionable insider dealings. Key Concerns: Insider Selling: CEO Ernest Garcia III and his father, Ernie Garcia II, sold $3.6 billion in stock between 2020-2021, with an additional $1.4 billion sold last year after a 284% stock surge. Loan Portfolio Risks: Claims suggest Carvana approves nearly all loan applicants, increasing exposure to subprime defaults as economic conditions tighten. DriveTime Transactions: Allegations of inflated revenues through sales to DriveTime, owned by Garcia II, raise conflict-of-interest concerns. Manipulated Results: Extensions on subprime loans reportedly delay delinquencies, misrepresenting financial health. Outlook: While the stock has shown resilience, we believe these risks significantly outweigh the rewards. With questionable accounting practices and a vulnerable loan portfolio, our price target is $127.

Quick Update on Nifty and BankNifty after Hindenburg report Hello Traders, Checkout the latest update on Nifty and BankNifty after Hindenburg report on SEBI chairperson and Adani

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ADANI Total Gas Ltd looks ultra bullish!ATGL looks ultra bullish and can be a multi-bagger in the long-run. After a pro-longed downfall, stock has shown some strength in past few days based on technicals + fundamental indicators. In the chart as well, from technical point of view, there are too many inefficiencies left behind while stock was taking a hit and price was falling. In my opinion, all those inefficiencies should be filled in long-run.

NIFTY 50 Elliott Wave Analysis Hourly chart NIFTY-50 INDEX If we closely observe the counts from 15194 low point it is not looking like an impulsive move. The nifty has been in the corrective move so far. The correction is so irregular the laymen cant understand what is happening right now in Nifty. Thanks to Elliott wave theory we can read fine prints of the candlestick printed by the market make. The moves are in 3 wave structures and every move has double correction. The last move under the channel is looking like an WXYXZ correction. All the levels are marked what could I understand from the NIFTY 50, Chart. Thank for your love.

Fin Nifty Key Trading Levels for 7th Feb 2023-Expiry trade Setup Fin Nifty Key Trading Levels for 7th Feb 2023-Expiry trade Setup Keep Eye on Stop loss levels they will either work as Support/Resistance breakout or breakdown can give Explosive moves which are good level for Options Buying Disclaimer: These levels are purely based on Price action/demand and supply zones & and consumed only for educational purpose & should not be taken as buy/sell recommendation. I will not be responsible for any loss/profit incurred if anyone takes trades based on my views. Please consult your Financial Advisor before making any trading decision.

Cathie Wood vs. Hindenburg In the Blue Corner: Cathie Wood Who is Cathie Wood? Cathie Wood is the founder and CEO of Ark Invest. One of the most popular investment management firms that focus on growth sectors and long-term, high-reward investments. Wood is the former Chief Investment Officer at AllianceBernstein, but left the company in 2014 to start Ark Invest after her popular disruptive innovation funds were deemed to be too risky. Why has she become so famous? In 2021, Forbes named her in the “50 over 50” list of influential figures over the age of 50. She was named the Best Stock Picker of the Year by Bloomberg News in 2020. Wood has gained a massive following in social media communities such as FinTwit and Reddit. Her focus on popular growth names is held by many as the industry standard of how growth sectors are performing. Wood has made several forward-looking forecasts that have gained both the ire and praise of Wall Street. In 2018, she famously predicted Tesla TSLA would hit $4,000.00 per share. She was ridiculed at the time, but in January of 2021, Tesla shares hit that mark on a split-adjusted basis. Wood has also predicted that the digital currency Bitcoin BTC will one day hit a price of $500,000.00. She definitely puts her money where her mouth is by adding both Grayscale Bitcoin Trust GBTC and Coinbase COIN shares to her various ETFs. In the Red Corner: Hindenburg Research Who is Hindenburg Research? Hindenburg Research is a well-known investment research firm that focuses on short-selling stocks by releasing reports alleging things like fraud or providing information that misleads investors. Hindenburg was founded by Nathan Anderson. An activist short-seller that has made a living off of taking down publicly traded companies. Why are they so famous? Hindenburg Research has been one of the more accurate short-selling investment research firms over the past few years and have revealed fraudulent activities by several different companies. First, it exposed electric truck maker Nikola Motors NKLA in a damning report that revealed CEO Trevor Milton was behind operating Nikola as an ‘intricate fraud’ . The timing of the report couldn’t have been better: It was on September 10, 2020. Just days after Nikola announced it was entering into an agreement with auto industry heavyweight General Motors GM . Milton was ousted as CEO and never did deliver his long awaited rebuttal to Hindenburg. Shares of Nikola have plummeted from unimaginable highs of $93.99 in June of 2020, to its current price of just over $15.00 per share. Nikola is now the poster child of skepticism surrounding companies that come public via SPAC IPOs. Hindenburg took on another EV SPAC company in Lordstown Motors RIDE , releasing a scathing report on March 12 of this year. Just last week, Lordstown saw both its CEO and CFO resign. As well as the company reporting that there is significant doubt it will be able to meet previous production estimates. Hindenburg has taken on other heavyweights and is well known for taking a short position and driving stock prices lower. The Heavyweight Fight: Cathie Wood vs. Hindenburg Research Round 1: Hindenburg Throws The First Punch On June 15th, Hindenburg struck again, this time targeting popular sports gambling and fantasy sports company DraftKings DKNG . Some well-known investors in DraftKings include Walt Disney DIS , WWE owner Vince McMahon, and owner of the New England Patriots, Robert Kraft. DraftKings also has lucrative partnerships with the NFL, MLB, NHL, NASCAR, UFC, and the Dish Network. A lot of potential brands could be hurt by these allegations if proven true. n the report, Hindenburg alleges that DraftKings’ SPAC merger partner, a Bulgarian company called SBTech, is heavily involved in the black market and illicit gambling that has ties to money laundering and organized crime. SBTech was absorbed into DraftKings as a part of the SPAC merger. It now operates as an in-house part of the DraftKings brand. Therefore, allegations against SBTech are allegations against DraftKings as well. According to Hindenburg, SBTech attempted to distance itself from the black market and organized crime prior to the merger with DraftKings. It even created a new entity called BTi, that acted as a front for SBTech so it could continue to make revenues from markets where gambling was illegal. Hindenburg gives an estimate that 50% of SBTech’s revenues are made in markets where gambling is considered illegal. n fact, Hindenburg actually gives several gambling websites that have ties to known organized crime rings, that led back to SBTech and its subsidiaries. These allegations are some of the most serious that Hindenburg has reported, with legitimate legal consequences that could have a long-term effect on the DraftKings brand. Shares of DraftKings fell by 4.2% following the news. Does Hindenburg Research have a short position on DKNG? At what price? Oh you better believe Hindenburg has a short position in DKNG. So as with most short-seller reports, take them with a grain of salt. While Hindenburg does not reveal how large of a short position they own, fundamentally it is in their best interest for the DKNG stock to continue to fall. Round 2: Cathie Wood Attacks Enter Cathie Wood, who may just be the personification of buying the dip! Wood is well known to target companies she likes long-term that are beaten down. Some examples of this include her continued support of Coinbase COIN and Teladoc TDOC during their prolonged dips. So how much DraftKings did Wood buy? She added $42 million worth or 870,299 shares following Hindenburg’s report. Wood added these shares to both her Ark Next Generation Internet ETF ARKW and her Ark Innovation ETF (ARKK). The stock now represents the 19th and 17th largest holdings in each ETF respectively. It seems like the markets were supportive of Wood’s investment as shares of DraftKings closed the next day higher by 0.6%, outpacing the broader markets. There Can Be Only One! … Who will win? Judging from DraftKings’ rise the next day, it looks as though Wood and Ark Invest have taken round one from Hindenburg. The report from Hindenburg was thorough and detailed, but unfortunately for them, there is a general disdain right now for short sellers in this market. Retail investors have made it their mission to blow up short positions across the market, so we just don’t think Hindenburg’s latest report will hold up against the Queen of Growth, the Duchess of Buying that Dip, Cathie Wood. What do YOU think? Who will win this fight?

GRWG - A Bear Case Weighing both impending federal policy changes and strong fundamentals, GrowGeneration (GRWG) looks like a promising cannabis stock to buy & hold. With an incoming Biden administration, federal cannabis decriminalization will happen, paving the way to allow banking institutions to service the industry. While GRWG doesn’t operate in the agricultural or distribution segments of the cannabis plant (most impacted from federal banking regulations), it will benefit when legal barriers are removed. As a distributor sales channel of hydroponic equipment and consumable products used to grow cannabis, GRWG stands to benefit from a large shift in federal policy and has already benefited from state policies legalizing both medical and recreational cannabis use. With everything good happening to the cannabis industry, I lay out a bear case for GRWG and why it should not be bought as an investment. Executive leadership is the primary reason GRWG is uninvestable. Hindenburg Research, an activist short seller, has published findings detailing the company’s leadership indiscretions going back decades...and it’s ugly. Strong executive leadership teams should display the industry’s best business minds, squeaky clean personal backgrounds, and a track record of wins in previous business dealings. Hindenburg brings to light GRWG’s leadership’s ties to prior penny stock pump & dump schemes, various SEC entanglements, personal relationships with known persons associated with criminal syndicates, various failed business ventures, financial accounting gaps … the list goes on and on and on. Before moving forward, let’s call a spade a spade: the purpose of Hindenburg’s research is to convince investors to sell GRWG. Hindenburg has a publicly stated short position in GRWG and has an agenda to drive the stock price down. They directly benefit from painting this company or its leadership in a negative light. One should take the research with a grain of salt when weighing its importance in a decision to buy or sell the stock. While Hindenburg Research’s findings were enough for me to sell my position, I found this wasn’t the only red flag. Following Bill O’Neil’s CANSLIM methodology when analyzing stocks, one of the metrics is Cash Flow per Share vs EPS. Cash Flow per Share for a great stock should be +20% greater than EPS in the same quarter. Starting with FY2019, they posted four quarters of Cash Flow per share equaling EPS; a 0% increase in Cash Flow per Share vs EPS. FY2020 was shaping up with Q1 & Q3 having both +16.6% Cash Flow per Share increases vs EPS. 2020Q2 posted a -83.3% decrease of Cash Flow per Share vs EPS. I would normally give this one miss a pass due to their strong sales growth over the past 8 quarters, increasing more than 125% (QoQ vs PY Q) and strong EPS growth over the past 6 of 7 quarters (QoQ vs PY Q) because, we’re measuring the total sum and not measuring just one metric. But, I also wanted to deep dive that 1 quarter (1 of 7) where EPS contracted. At first glance, the -700% decrease in EPS vs PY Q occurred in 2020Q1 and my first inclination was, it must have been the impact on their business due to COVID-19. I dug deeper into their 10Q and read: The net loss for the quarter ended March 31, 2020 was primarily due to the increase in share-based compensation from approximately $80,000 in 2019 to $4.1 million for the quarter ended March 31, 2020. … If the new share-based awards effective January 1, 2020 were level vesting over two years and not front loaded vesting then the first quarter of 2020 expense would have been reduced by approximately $2.43 million and the first quarter of 2020 net loss would have been net income of approximately $332,000. Future periods share-based compensation would increase as a result of spreading the $2.35 million over two years, had the awards been level vested. TRANSLATE: Management decided to bump up compensation all at once vs spreading it out over the next two years and by doing that, hurt earnings for the quarter. What kind of forward thinking, long-term oriented management team would do that? With everything good happening in this industry, management couldn’t have taken compensation increases over the next two years in order to preserve positive momentum the in their fundamentals? I suppose spreading it out over the future 8 quarters could put stress on future earnings, but then, maybe this isn’t the time to increase compensation if it can’t be successfully managed. I get it, an increase in executive compensation after growing at an insane clip for the past 5 quarters feels earned, but great business leaders are supposed to be the harbingers of good faith with the intention of growing the stock price for all shareholders. There was no better way to increase compensation? In my opinion, this decision represents terrible judgment at worst and poor planning at best. This was red flag strike number 3. 1) Hindenburg Research 2) Cash Flow per Share vs EPS not hitting the mark 3) Management throwing a wrench into earnings, when they had the option to otherwise not, in order to benefit themselves. For these reasons, GRWG is entirely uninvestable. In all honesty, if we play devil’s advocate and assume everything in Hindenburg’s Research is true, that is more than enough reason to not own this stock. I encourage everyone to read it in order to familiarize themselves with what a worst case scenario looks like. The overall fundamentals in this stock look pretty damn good and even Hindenburg states, “... bulls would likely argue that the business is positioned well to consolidate its industry niche and grow into its numbers with the backing of strong management.” Unfortunately, that does not seem to be the case. When heeding activist research, be skeptical when talking heads make claims like the those laid out in Hindenburg’s piece. They have a short position; they want the stock to go down. Gauge your own risk profile and trading style. Do your own homework. Happy Stock Picking!