Wirecard/Enron & QCM Statement20 Jul 2023 14:11
i will probably be shot down in flames for saying this here, but i see many parallels between darktrace and companies like wirecard and enron. in the case of both those companies, there were a small handful of investigative analysts who detected signs of fraud, corruption and irregularities years before the sh*t finally hit the fan.
for this reason, i think it is unwise and shortsighted to write off qcm's diligence even if the share price has almost doubled since they released their report earlier this year. i have a very strong feeling that they will be vindicated in the long run. look at their track record. i am very tempted to take a short position here, but i do not have the guts to in this market. timing is impossible.
the ramper posters saying that this will go to £6, £8 etc really need to take a good look in the mirror. please read the latest statement from july 19th by qcm in response to the ey review. why won't darktrace unveil the details of the ey review? darktrace have also failed to answer the 27 questions from qcm.
for immediate release
new york, ny, july 19, 2023 - *****essential capital management (qcm), as a responsible and concerned investor, has today reiterated its apprehension following the conclusion of ernst & young llp's (ey) review into darktrace plc's financial systems and practices.
darktrace's announcement of ey's findings does little to mollify our concerns, first highlighted in our earlier analysis. notably, ey's review has identified errors and inconsistencies in darktrace's systems, processes, and controls, which affirm our prior assertions regarding the company's questionable financial practices.
it is noteworthy to mention that the decision on the materiality of these errors and inconsistencies, as well as the decision not to proceed with accounting restatements, appear to be the sole judgments of darktrace and its board, rather than recommendations from ey. this stance potentially brings into question the company's approach towards financial transparency and governance.
we call upon darktrace to fully unveil the details of the ey review and facilitate an open dialogue on its findings. given the severity of our allegations, we believe this situation warrants a significantly higher level of transparency, which darktrace has yet to provide.
qcm remains steadfast in our commitment to uphold the integrity of the financial market. we will continue to monitor darktrace's responses and actions in the aftermath of these findings closely.
gabriel grego founder, *****essential capital management