I have published two new stock analyses exclusively on Seeking Alpha in which I analyze AT&T and Wirecard. In the comments below (here on the TEV blog) you will find some additional thoughts on the fine against Wirecard’s subsidiary… Feel free to share your own thoughts in the comments
Click here for the Wirecard analysis (leave the TEV blog).
Click here for the AT&T analysis (leave the TEV blog).
Why this post?
As I have already written, the TEV blog has several purposes. First and foremost, I intend to expand the possibilities of communication with my readers. Since I publish analyses on several platforms, readers can ask questions centrally here or discuss the analyses with the community. I also do not always have all the reports in view at the same time. That’s why it’s practical to have a central hub with the TEV blog, where all the strings come together.
The stock analyses are free of charge for a while
The analyses are available free of charge for a while. After that, however, Seeking Alpha will put them behind a paywall. If readers want access to the articles, they can simply leave a comment because I can free single pieces from the paywall.
So enjoy the analyses while they are still accessible for free!
All the best
TEV
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Update Wirecard analysis:
The People’s Bank of China fined Wirecard’s AllScore with $16 million.
A little evaluation of mine:
Who is AllScore?
Wirecard acquired AllScore last year. Right now, Wirecard only holds 80 percent of AllScore but has the option to purchase the remaining 20 percent.
According to a press release, “AllScore Payment Services is a local Payment Service Provider owning a license portfolio. The license portfolio enables Wirecard to offer internationally oriented Chinese merchants local acquiring services, cross-border acquiring, including settlement in their local currency and innovative digital value-added services. Additionally, the international merchants of Wirecard gain access to Chinese consumers and are enabled to accept widely-used digital mobile payments methods and receive settlements in their respective local currency. The license portfolio also provides Wirecard with the capability to issue payment cards to consumers and companies in China.
The allegations are somewhat substantial:
– Unauthorized suspension of payment operations.
– Misappropriation of provisions.
– Direct payment settlement services for illegal fund-raising platforms.
– Failure to validly identify customers who purchased prepaid cards and instances where card purchasers bought prepaid cards in bulk on behalf of employees of CCBC.
– The prepaid card operation did not manage customer provisions as required.
– Failure to maintain the required merchant information for prepaid card operations.
– Failure to manage information on authorized merchants in Internet payment services as required, and the lack of information on merchant access and cooperation agreements.
– Failure to manage the merchant profile information of the merchant information management system of the contracted merchants in the Internet payment business as required.
Evaluation
Wirecard is struggling here with misconduct on the part of its subsidiary that took place before the time of the acquisition. Likewise, not Wirecard was fined but AllScore.
I very much hope for Wirecard that this was discovered in due diligence and that close cooperation with the PBOC was established. It is becoming increasingly clear that Wirecard has grown too quickly and that in some areas, compliance has not been sufficient. AllScore is only one of these examples.
What must happen, however, is that Wirecard finally stops generating lousy publicity. This is harmful to investors and harmful to the business. But implementing countermeasures takes time. Hence, I don’t hang these events up too high. The decisive factor will be how Wirecard acts in the future and manages to set up a compliance program so that such things no longer happen.
[…] $16 Millionen belegt. Ein Tochterunternehmen soll, bevor es von AllScore übernommen wurde, unter anderem Provisionen veruntreut und direkte Geldabwicklungen für illegale Aktivitäten ermöglicht […]
[…] of May. Before Wirecard acquired its stake in AllScore, a subsidiary of AllScore is said to have embezzled commissions and enabled cash transactions for illegal […]