I made a trade 3 weeks back when Hindenburg Research published a paper accusing the legendary activist investor, Carl Icahn, of running a Ponzi scheme with his listed investment vehicle; Icahn Enterprise L.P. (IEP).
Background Story
On 2nd May 2023, Hindenburg Research published a paper online accusing the investor Carl Icahn, of running a Ponzi scheme and overvaluing its underlying investments to prop up the share price.
IEP stock crashed from $50 to $32 (-36%) within 2 days of the paper's release.
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Analysis
I took notice of the massive dip and immediately thought if a short-term trade could happen in this scenario.
I went to look up the previous 2 companies that Hindenburg had released a short report on - Adani Enterprise and Block Inc; and noticed a trend.
Adani Enterprise -53% within 5 trading days of the short report released on 25 Jan 2023....