The share of Wirecard (WKN: 747206) was also unable to find peace at the end of the week. At the end of Xetra, the share certificates with a share price level of EUR 1.42 (June 26, 2020, decisive for all prices) went out of trading. With another drop of over 54%, the crisis has worsened. If that is possible at all.
Preliminary highlights in the weekend sprint were, of course, the effects of bankruptcy. However, that is not all. With the Mastercard and Visa two large US companies and credit card providers have already distanced themselves from the DAX payment service provider. This could possibly lead to a rat tail, which slowly but surely pulls the remaining operational substance out of the company.
Especially since on Friday afternoon the fundamental starting situation in everyday operations has worsened again. Suddenly, it’s no longer just about bankruptcy and abandoned cooperation. No, but also about business bans. Here’s what investors should know.
It is enough for the British authorities!
As reported by several media and news services on Friday afternoon and evening, Britain was apparently the first country to draw consequences from the bankruptcy and the balance sheet scandal. Or the British financial regulator, the FCA.
Accordingly, Wirecard is now prohibited from processing electronic payments in the UK. An important step. However, it goes even further: the authority also prohibited the company from regulating all regulated activities and instructed the company to notify the respective customers. Third, there was also a ban on moving funds or assets.
The reasons for these restrictions seem to be the interests of the customers. The FCA points out that it wants to secure customer funds with the British company. Certainly another highlight in the already charged overall situation around Wirecard.
It remains: the last hopes die!
For investors who are still loyal to Wirecard after these turbulent days, a bitter realization is likely to mature slowly but surely: The DAX payment service provider is clearly lacking substance in the meantime. In addition to the 1.9 billion euros, of course, which triggered the crisis in the wake of the balance sheet scandal.
The bankruptcy showed how little future Wirecard should have. The consequences that have now been reported also point very clearly in this direction. It is noteworthy that in addition to Visa and Mastercard, an entire state has now banned it. Even in a wonderful case of bankruptcy avoidance, trust in the payment service provider should therefore have disappeared permanently.
In my opinion, Wirecard will hardly have a future. Neither operational. Still the stock. Any other way. This is how a sad chapter of an actually high-growth share ends these days. The escalation levels could be increased in the next few days.
After all, the stock can be almost irrelevant
However, investors and the stock can now hardly care. With a share price level of just over one euro, most of the value is destroyed. Even today’s volatility with a price halving is just a tiny bit of this gigantic balance sheet scandal and bankruptcy iceberg.
It will be exciting to see what other twists the topic will take. The share, on the other hand, should have priced in most of it at a low price. However, a purchase is of course still associated with high risk, including that of a total loss.
The post Wirecard horror continues: ban in Great Britain! appeared first on The Motley Fool Germany.
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Vincent owns shares of Wirecard. The Motley Fool owns shares of and recommends Mastercard and Visa shares.
Motley Fool Deutschland 2020
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