Grenke, are small Wirecards growing? collapse after the resignation of the COO
Grenke, a company specializing in technology and equipment leasing, which capitalized over 3 billion euros until last August, suffered a further blow on the stock market after its COO, Mark Kindermann , left his position in the company. All in the midst of suspicions, which began in September, of serious financial irregularities.
The title took a good shot:
In September, the stock sank when a Viceroy Research report claimed that the company's € 1078 million in cash and cash equivalents did not exist. Grenke firmly denied and went so far as to threaten a lawsuit against Viceroy, but meanwhile the damage was done and the shareholders had begun to unload the securities. After all, a company that leases computers and office equipment at a time when, due to covid-19, telework wins, cannot fare well and becomes an easy target for speculators. However, the accusations have triggered an investigation by BaFin, the German Consob at the center of the controversy for the Wirecard case. The investigation ended in December with a series of findings on the quality of internal auditing and corporate compliance
After Mark Kindermann's resignation, the company was forced to issue a statement stating that the resignation of Kindermann (who was also responsible for auditing until October) is precisely linked to the findings made by BaFin, but that these should not impact on Grenke's profitability or business soundness. But the COO has been in his post for ten years, and in ten years, as Wirecard demonstrates, you can make a lot of messes. So the market nervousness and the new stock crash is justified.
There are three cases:
a) Grenke is the new Wirecard, and then we will see a big bang that, among other things, explains the haste of the modification of the MES, wanted by Germany, to assist the credit system, because by dint of Wirecard the whole system risks;
b) Grenke is not put up like Wirecard, but it is still not a good investment because it is part of a sector in crisis;
c) Grenke is not listed as Wirecard and will retain good profitability.
Soon we will see which option is the right one ..
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Article Grenke, are small Wirecards growing? collapse after the resignation of the COO comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/grenke-piccole-wirecard-crescono-crollo-dopo-le-dimissioni-del-coo/ on Wed, 10 Feb 2021 08:00:39 +0000.