Fiddling about with stocks, funds, etc. No conspiracy theories, please.

792 posts in this topic

1 hour ago, MikeMelga said:

6 months later it collapsed, although all the authorities said it was reliable until the last minute.

 

I have invested a large sum yesterday in its stock. Are you saying it will collapse? I thought wirecard has a lucrative market and when the corruption has been removed from the firm, things will improve...i.e. a good business model won't suffer from greedy board managers :unsure:

0

Share this post


Link to post
Share on other sites
26 minutes ago, dom said:

 

I have invested a large sum yesterday in its stock. Are you saying it will collapse? I thought wirecard has a lucrative market and when the corruption has been removed from the firm, things will improve...i.e. a good business model won't suffer from greedy board managers :unsure:

Wirecard is down today a further 42%. If it continues like this, it will become a penny stock. 

0

Share this post


Link to post
Share on other sites

FT had been flagging up Wirecard's finances as iffy for ages and BaFin the regulator backed up Wirecard, banned the short selling of Wirecard stock and even instigated legal proceedings against the FT journalist.

 

So the German regulator has some egg on its face today.

0

Share this post


Link to post
Share on other sites

The CEO stepped down, further dismissals to be expected. They must present an annual report today, otherwise banks might cancel credits in value of €2 billion.

 

TBC.

0

Share this post


Link to post
Share on other sites
2 hours ago, fraufruit said:

Hang in there, dom. It might turn around.

 

Did you buy on the dip yesterday?

yes!:ph34r:

0

Share this post


Link to post
Share on other sites
3 hours ago, dom said:

 

I have invested a large sum yesterday in its stock. Are you saying it will collapse? I thought wirecard has a lucrative market and when the corruption has been removed from the firm, things will improve...i.e. a good business model won't suffer from greedy board managers :unsure:

When an auditor does not sign the report... you can bet it is very serious.

This probably means they are not being honest about their accounting and money is missing.

This is probably not due to bad management, but perhaps criminal management. And as everything related with finance, trust is king.

0

Share this post


Link to post
Share on other sites
7 minutes ago, MikeMelga said:

And as everything related with finance, trust is king.

Yes, but take tesla 3 months ago, when Musk tried to manipulate the market by making announcements on twitter.

The share price took a dive over a month, but thanks to the company's competency, thr recovery was significant:

ffd.png.f0d84199dbfebf9ad5dcfb846e1c9848

0

Share this post


Link to post
Share on other sites

Tesla, were not involved in matter like missing money !

 

If it was theft, then they will probably go broke.

If it was incompedence, then they will go broke over a longer period or become a penny share, financail institutions. will not trust them and look for other suppliers in the future

 

Either way, as Mike said, trust is everything in finance, and at the moment no one trusts them, tesla, just had normal problems.

 

its your money at the end of the day, but I would be looking a cutting my losses one this one, if I had bought in - which I did not

1

Share this post


Link to post
Share on other sites

The tweet from Musk was start of May. All shares dropped in March because of Covid.

0

Share this post


Link to post
Share on other sites
27 minutes ago, yesterday said:

its your money at the end of the day, but I would be looking a cutting my losses one this one, if I had bought in - which I did not

 

I bought at 27 euros...can't afford to lose on this otherwise I'll have to mortgage the house.

Are you saying to sell a day later?

0

Share this post


Link to post
Share on other sites

I would wait it out. That is just me.

 

Lesson learned - never put too many eggs into one basket. I think that most of us investors have gotten to learn that lesson more than once - some of us multiple times.

0

Share this post


Link to post
Share on other sites

Well of course I do not really know whats going to happen in the end, this is the stock market, basically you put your money where you its going to work best.

 

I researched the company a bit, not a lot...   its more of a gut feeling and whats gone on on the past.

 

Seems to me that this company mostly processes card payments for VISA etc. If VISA losses confidence in them, then I guess VISA will re route the work else where, to a more reliable partner, then what does wirecard make money from ??

 

Its your deceison on what to do, and I wish you good luck on whatever you do, either to hang on or accept a small loss in the short term, or maybe a bigger loss in the longer term, hell they could recover as well.  It looks like they need their accounts approved today so you do not have much time to think

 

Erm, yes if everything works out, you could have a lot more money on this share, but personally, I never want to be in the position that if a share goes wrong then I get  real financial problems like mortgaging the house - only invest what you can afford to lose without masive problems.

 

0

Share this post


Link to post
Share on other sites
23 minutes ago, yesterday said:

It looks like they need their accounts approved today so you do not have much time to think

 

Thanks for the advice. I don't usually buy individual shares, so this a learning experience for me. Is it know wen the approval should come?

0

Share this post


Link to post
Share on other sites

One of my investment rules is not to bet on financial sector, as the risk is huge, it can go down to zero in a matter of weeks. The problem is that in most cases there is no underlying value. If Tesla had issues, they have patents, factories, stock, brand value, etc. If a bank goes bust, there is nothing left.

Although Wirecard might have some underlying value, it seems dependent on very few key accounts, meaning if trust cannot be reestablished, it can go bust really fast.

 

My opinion: reduce your bet on it, most likely this is going bust. Only keep the money which you are willing to lose completely.

Regarding selling one day later, I've done that several times. And lots of people buy and sell in the same day.

You can also make a stop loss order, meaning if it goes under a certain value, it is sold immediately, but there is a catch: if nobody is buying, you won't be able to sell.

0

Share this post


Link to post
Share on other sites

As Tesla was mentioned, I seem to recall Musk was charged with securities fraud by the SEC

 

https://www.sec.gov/news/press-release/2018-219

 

And he is also facing a 2.6 billion lawsuit for breach of fiduciary duties and unjustly enriching himself with the purpose of Solar City.

 

https://www.reuters.com/article/us-tesla-solarcity-lawsuit/tesla-directors-settle-isolating-musk-as-solarcity-trial-looms-idUSKBN1ZT2HF

 

Also, some major shareholders are opposing the reappointment of the Tesla chairperson. So maybe it's not as squeaky clean under the hood as an electric car...

0

Share this post


Link to post
Share on other sites

I sold my ETFs today. I got a good run since mid March, but I think stocks will sink again in the next 3 months. US is not taking Covid seriously and unless a good treatment shows up quickly, US will shutdown again in a few months and stocks will sink, creating a new opportunity.

 

I am keeping my Tesla stocks because in the long run they will go up. I will just buy more in the dip.

2

Share this post


Link to post
Share on other sites

I start to think in that direction aswell :)

 

Lock-in the profit now, the future only looks worse at the moment, but the UK Vaccine is only 3 months away ... 

0

Share this post


Link to post
Share on other sites

The Fed is buying anything and everything at the moment, and with so much stimulus it is hard to see where the fall will come from.

 

The fed is even buying junk bonds ETF`s.

 

 

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now