WANdisco (LON:WAND) - Stockopedia comments28 Apr 2023 12:46
WANdisco (LON:WAND) - suspended
Update today reiterates that the entire fraud was apparently just one rogue employee. Obviously that sounds ludicrous, but that’s what we’re being told.
Hoping to lift suspension of the shares. New CFO started on 11 April. New CEO being sought. No mention of solvency or cash position, which was flagged by the company as a concern when the fraud news first broke.
Paul’s view - is not printable. Any recovery from this share would be good, as I’ve already mentally written it down to zero. Likely outcome? If it comes back from suspension I would work on the basis that it might resume trading at maybe 90% down? Because the valuation rested entirely on the positive contract announcements, which were made up. The big lesson here remains - don’t believe the trading updates from jam tomorrow companies until the numbers are audited, and the cash is in the bank. Especially when management has a track record of being overly-promotional, with false dawns before.