Hindenburg Research Report

The Hindenburg a short sell Research Compay came out with a 413 page report and is making waves to the level of Tsunami. The Indian Stock market has taken a tremendous jolt.

Adani supporters are downsizing the effect of the report that this company is only established in the last five years in 2017 and has only 5 employees. How can such company with meager resources can challenge a worlds richest man.

I also discussed with Shiv as his job was do research on Biotechnology sector. His observation on such a research job is given below:

Usually Research firms are with small employees.

I shall tell you a story on Shiv. They were two member team. Shiv researched Gilead, and with his report the stocks fell down 50% and they lost 1B in one day.

Later they threatened him that he knew where he lived and had two young kids.

It’s normal in this business.

The above story he narrated me today after 15 years. He purposely avoided to disclose it to me.

I dug out the internet another report below:

By Ron Leuty  

Feb 22, 2010 
Updated Feb 22, 2010, 1:58pm PST

Gilead Sciences Inc. shares dipped on Monday as a stock analyst said the Foster City-based company (NASDAQ: GILD) faces a steep patent cliff, beginning in 2014.

Patents for the HIV drug Viread, flu treatment Tamiflu and hepatits B treatment Hepsera are among those that lose their legal protection between 2014 and 2018, Morgan Joseph analyst Shiv Kapoor said, according to the Associated Press. Along with “underwhelming acquisitions” and the clinical failure of blood pressure drug Darusentan, the loss of key patents leads to “our pessimism about Gilead’s ability to diversify its revenue,” Kapoor wrote in a research note.

“We believe Gilead has the worst patent cliff in the large-cap biotechnology industry due to its concentration of sales from certain drugs and because its drugs are easily genericized small molecules,” Kapoor wrote.

Kapoor downgraded the stock two notches — to “sell” from “buy” — and cut his price target to $37 per share from $57.