Wirecard: A Gift Served On A Silver Platter?

Apr. 29, 2019 8:14 PM ETWirecard AG (WCAGY), WRCDFPYPL, SFTBF, SFTBY31 Comments
Güner Soysal profile picture
Güner Soysal


  • First, based on my last article dated March 21, 2019, I will briefly discuss the latest developments in the case of Wirecard.
  • Secondly, I will present the results for fiscal year 2018 as well as the traceability of Wirecard's "Vision 2025."
  • Third, I will present my fair value based on a discounted cash flow and earnings per share calculation.

Be greedy when others are fearful, and fearful when others are greedy - Warren Buffett

A Short Review

Most recently, on March 21, 2019, I published an article about Wirecard (OTCPK:WRCDF;OTCPK:WCAGY) on Seeking Alpha, "Ignore The Noise And Focus On Fundamentals?"

In the aforementioned article I presented the current allegations, the business model, the growth rates, the fundamental situation, the valuation (compared to the peer group), the opportunities and strengths and the risks and weaknesses in connection with Wirecard.

In the conclusion, I wrote that "considering the high growth rate, solid balance sheet, competitive advantage based on global footprint and broad technological base, Wirecard seems to be one of the best (European) growth stocks at the moment. I would say that wirecard is a conviction buy at the current level. In addition, the share should have significant upside potential if allegations can be disproved."

Second, I wrote that "while I do not believe that Wirecard has committed any intentional misconduct, it is difficult to rule out whether individual employees have committed any misconduct. Nevertheless, history tells us that in the past all accusations have proven to be unfounded. Furthermore, CEO Braun sounds very optimistic in his tweet, which could suggest that at least no serious findings should arise."

Third, I explained that "there were two main factors for my investment in Wirecard. First, the growth potential in Asia and (Eastern) Europe. Second, the skills and vision of CEO Markus Braun. If the allegations prove to be true and there is a real threat of a license withdrawal in parts of the Asian business, I would be forced to reconsider my investment thesis."

In this article I would like to briefly discuss the latest developments and - now that the allegations have been disproved for the most part - use my fair value calculation to

This article was written by

Güner Soysal profile picture
Real Financial Dynamics - Investing In Growth In Every Market Phase. Banker, Investor, Investment Advisor, Wealth Manager, Finance Blogger from Germany. Website | Instagram | LinkedIn | Güner Soysal

Disclosure: I am/we are long WRCDF, WCAGY, PYPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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