Nothing except expenses? In the opinion of the Wirecard (ETR:WDI) shareholders, the KPMG test report did not deliver the hoped-for acquittal from the balance sheet allegations. After its publication, the share temporarily dropped by more than a quarter on Tuesday and plunged well below the 100-euro mark.
Why is Wirecard down?
The reason: Especially in criticized business with third-party partners, the test report cannot give the all-clear. In the absence of access to relevant documents from the partner companies, the KPMG experts spoke of an ” obstacle to investigation” and did not issue a judgment ( THE SHAREHOLDER reported ).
Is Wirecard still a buy?
Yes, Wirecard is a buy now, more than it was a day before, especially since you are getting WDI this cheap. Wirecard was also relieved in other areas, such as the business examined in Singapore, a purchase in India and the dealership pre-financing business. Nevertheless, KPMG was not able to completely eliminate certain allegations in these areas – but was also unable to prove them.
In addition to the external partners, Wirecard does not get away too well in the KPMG report: The auditors complain about the “delayed delivery of documents” or repeated postponements of interview appointments. The documents submitted were “almost exclusively electronic copies whose authenticity could not be verified,” reports KPMG.
In addition, the auditors complain about documentation and organizational weaknesses in the investigation period, which, according to company information, have already been identified and have been successively remedied since 2019.
No evidence, no problem?
The fact that the report, according to CEO Markus Braun, is final in the remaining three of four audit areas and contains “clearly no evidence” for the allegations made cannot convince investors at first. Neither did the repeated assertions that there were no substantial findings that would result in the corrections to the balance sheets from 2016 to 2018.
Many shareholders already suspect that the hoped-for acquittal that once and for all takes the wind out of the sails of skeptics and short sellers was not. Instead, the KPMG report may even provide ammunition to critics. In any case, uncertainty remains high