161–169 of 169 posts
A total of around $2B has simply "disappeared" -- as in, no one yet has been able to figure out what happened to it. I keep imagining a Monty Python-esque skit: "Was it stolen? We don't know." "Was it spent? We don't know." "Was it lent? We don't know." "Was it transferred? We don't know." "Was it burned? We don't know." Coincidentally, or maybe not, the company's last fictitious balance sheet, which was published in…
I wonder how many companies in the world are basially built on warm words without any real value behind. I made the experience that a lot of people don't really care if a company has positive revenue streams anymore, they don't even know what a balance sheet is. They simply invest because other people do. And those other people invested because people before them did. This new style "invest billions now in a lossy st…
OTOH, why does a German company keep 2 billion euros in a Philippine account, that’s strange.
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I'm wondering why the CEO called in KPMG for an independent audit. Was he expecting a different result? Or he just picked them to break the news?
At some point you start believing your own lies so he probably thought everything would be fine and the markets would be calmed with another auditor confirming the results.
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What other exchanges are they listed on? It is pretty uncommon for a company to ever list on more than one exchange.
Depends. Very common for non-US Shares (Germany, China, UK etc.)
What actual percentage of the 100,000+ public companies around the world trade on another exchange?
Most of the DAX 30 in Germany don't even trade on another exchange. Adidas doesn't. BMW doesn't. Siemens doesn't (they were delisted by the NYSE in 2014.) Does any of the DAX 30 trade on an exchange outside of Germany?
As far as I can tell, only 8 companies in Germany trade on another exchange but maybe my source is wrong.
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What other exchanges are they listed on? It is pretty uncommon for a company to ever list on more than one exchange.
Shell is dual listed and plenty of foreign companies have ADR's on the US exchanges
I said it was pretty uncommon, not that people couldn't name individual, rare examples.
I wonder how many companies in the world are basially built on warm words without any real value behind. I made the experience that a lot of people don't really care if a company has positive revenue streams anymore, they don't even know what a balance sheet is. They simply invest because other people do. And those other people invested because people before them did. This new style "invest billions now in a lossy st…
>For how many companies EY did the same? How superficially do they check their customers?
Public perception of audits is basically a giant example of survivorship bias. All the stuff that auditor do catch generally gets fixed without it making the news. Cause you know confidentiality.
It's not a widget factory where six sigma is possible. It's a messy imperfect process, because well the global economy & most businesses are. 100% is about is plausible as demanding that all programmers globally write bug free code. It's just not happening.
That said...2 billion is like 1/3rd of the company assets. That's one hell of an oversight even in light of the above.
Invisibilia just released a great podcast about trust, based on the experience of a trader who was harassed by Wirecard. The trader, who was shorting Wirecard, was subject to surveillance, and a constant stream of phishing attacks. https://www.npr.org/2020/06/02/868001948/trust-fall
How would wirecard learn who is actually shorting them?
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How can you find out about who is auditing a company?
For public U.S. companies, the annual shareholders' report (available on the company's web site) usually includes a letter signed by the auditors certifying that the reported financial results are accurate.