India.. the worlds largest democracy (I always come close to choking hearing that line) is the MAIN conduit for Russian oil.. but not what the US wants to shoot at.
I don't know...but, poking at that a bit today, as the "fire sale" in Adani stock continues... now carving out a typical divot pattern... as I see in a lot of the cliff divers I follow... Interesting how SMOOTH that curve is, though... which is a bit unusual for stocks that actually have run into difficulties... which tend to have higher volatility... not a smooth curve that's more reflective of "engineered" trading patterns...
Adani Total Gas down from 3800 - 3900 just prior... to around 712 INR now, in a smooth curve lower... but, with that, still has a PE of 147... which has it far from my favs in the energy sector... a $9 stock with $7.23 in earnings... a PE of 1.25... with huge upside in exploration potential... a bit more in my wheel house. Oops... 679 suddenly...
Adani Enterprised Ltd, up 11% on the day... the PE only 80... so "a bargain" I guess ?
Poking continues... with a lot of less than fully transparent interactions popping up... which I've found to be pretty typical of any Asian conglomerate I've ever poked at, as... "comes with the territory". It does appear that what Soros's crew got a burr on about... is now looking like... maybe nothing more than that. But, apparently, a lot of ESG funds hold Adani stocks... or, the Green Energy anyway... and the new push seems to be about... that apparent lack of transparency not meeting western G standards. Scary new headlines now: J PMorgan Investment Arm Purges Its ESG Funds of Adani Stocks delivers another giant nothing burger... as JPM held hardly any Adani shares in ESG funds... and isn't dumping Adani stocks from its other funds. Mostly looks like Soros is trying to strong arm ESG fund managers into taking losses... so he can win a trade.
How much has India's largest insurer suffered in the Adani fiasco? Offers another nothing burger... the answer is... the stock is down around 12% recently... but, other than the short attack... not clear that Adani holdings are a valid reason to worry... the company has a PE of 14... so hardly at risk from Adani stock losses... and should probably consider doubling up on them at the bottom... or buy back their own shares, here. The drop hasn't had follow through... after a 10% drop on Feb 1 and 2... which looks like there may still be a large short position... about 4 million shares... with the last two days trading looking like shorts are probably now trying to cover... and not really getting much traction in the trade. Given the blistering pace in their earnings growth, the plummeting PE over the last year... it looks like the best trade I see in result of Hindenberg's effort thus far... to buy Life Insurance Corporation of India on sale now... as a long term hold... or just to let the shorts give it a quick bump, for you... with the next report to be dated at the end of March...
What I find suspicious, given the lack of any real bombshells coming out in the wake of the Soros attack... [the biggest being only Adani using his personal shares in (ESG fund held) Green Energy.. to pledge them in backing a coal project]... is that the timing of the Soros effort aligns pretty conveniently with what the chart here shows... as India's share of Russian crude purchases plummets... but, "unknown buyers" step in to fill that void ?
Feb 27: Sanctions Headache Threatens to Dent India’s Russian Oil Imports
Were they thinking hitting India with a stick would elicit greater cooperation in sanctions enforcement ?
I don't know... but, that's not any more obviously stupid than the other stupid stuff you see them doing now ? |
