Connect with us

News

Wirecard Shares on the way of Becoming a Penny Stock !

pennystockwirecard

Wirecard has filed for bankruptcy and the business, or what is left of it, practically belongs to the creditors. Nevertheless, the Wirecard share behave on the DAX almost as if nothing had happened.

At the beginning of the week, it was still well on the way to becoming a penny stock, falling below the value of one euro per share. Then a strong, albeit short-lived recovery came out of nowhere, which almost brought the share back up to 10 euros, but at some point, however, the reality started again and the rate quickly fell back to a few euros. The price is currently 3.45 euros (as of 03.07.2020), which means that the company is still valued at a completely Utopian 350 million euros!

No hope for shareholders

One thing should be clear: the shares are actually no longer worth anything and sooner or later it will have to fall to a value close to 0. After the bankruptcy, the Wirecard share no longer represents a stake in the company, but ranks last in the long queue of creditors and  this line is very long.

On the one hand there are the banks that have lent Wirecard more than 1 billion euros and on the other hand there is a bond in the amount of 500 million euros. Only when the banks and bond holders have received all of their money back will Wirecard shareholders have a chance to see some money.

The price of the bond shows how unlikely this is. It is only a few cents per euro borrowed and bondholders expect to see only a fraction of their investments ever again. Lending banks are also reportedly looking for buyers of at least part of the loan granted and here too, one seems to expect only a few cents per euro borrowed.

There is therefore practically no chance for shareholders to get an equivalent value for the purchase of the Wirecard share. But why did the price rise so much?

Speculators have a firm grip on the Wirecard share

Well, on the one hand, a large part of Wirecard’s shares had been sold short to bet on a falling price and some market participants borrowed shares and then sold them in the hope of being able to buy them again later at a lower price. These short sales must now be balanced again and short sellers must therefore buy shares on the market in order to be able to return the borrowed shares.

Under certain circumstances, this can drive up the price.

On the other hand, speculators are obviously at work at the moment and they buy the shares in the hope that there is someone who wants to buy them later for a higher price.

The strong price fluctuations of sometimes more than 100% in one day only attract more speculators.

With a little luck, you can surely make a lot of money in no time but the only problem is that gambling of Wirecard shares inevitably has to come to an end at some point in time and you don’t want to be the last one to hold on those highly toxic shares as they become worthless one day.

No matter how you look at it, there is no way around it:

The Wirecard share will soon become penny stock and will certainly leave the DAX.

How useful was this post?

Click on a star to rate it!

Average rating 4.3 / 5. Vote count: 60

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

Latest Articles

chinagermanphd1000x600 chinagermanphd1000x600
Germany5 days ago

Chinese Guest Scientists in Germany are often Members of the Chinese Military PLA

China has long overtaken the United States as the leading nation in the number of scientific publications. In the list...

xitop xitop
Hong Kong6 days ago

Why does Beijing Risk Hong Kong’s Future as a Global Financial Center?

The new security law which punishes criticism of Beijing, is a threat to the financial center and the beginning of...

xiwuhanvirus4 xiwuhanvirus4
Hong Kong6 days ago

Tony Chung : First Arrests under new Security Law in Hong Kong

The former leader of a student group in Hong Kong has been arrested – 19-year-old Tony Chung is accused of...

Austria Austria
Austria7 days ago

Greed won – Ischgl in Austria has become Europe’s coronavirus breeding ground

Austria’s authorities have long failed to respond Many infections with the corona virus in Europe are said to be due...

coronavirus-vietnam1000x600 coronavirus-vietnam1000x600
Coronavirus1 week ago

Vietnamese city Da Nang flies 80,000 people out after 4 Corona Infections

After 4 new corona infections in the coastal city of Da Nang, the Vietnamese authorities let 80,000 people fly out of the metropolis. Most...

St. Wolfgang1000x600 St. Wolfgang1000x600
Austria1 week ago

Corona Infection Numbers in St. Wolfgang continue to rise

The number of corona infections in the tourist town in St. Wolfgang in Upper Austria has risen by eighteen to...

abtwerp1000x600 abtwerp1000x600
Belgium1 week ago

Belgium Significantly Tightened Corona Measures

Infection numbers in Belgium are increasing strongly again and the government has announced stricter contact restrictions to prevent another lockdown. As of...

Huaweimamibia1000x600 Huaweimamibia1000x600
Africa1 week ago

Corruption allegations in Namibian 5G deal with Huawei

A city councillor in Namibia’s capital has alleged she was offered a bribe by a local politician to ensure Chinese tech...

ussronaldreagon1000x600 ussronaldreagon1000x600
Australia1 week ago

Australia sent letter to the SG of the United Nations, refuting China’s sovereign position in the South China Sea

Australia stated to the United Nations that China’s sovereignty position in the South China Sea is not in conformity with...

presidentofestonia1000x600 presidentofestonia1000x600
News1 week ago

Eastern Europe changes its attitude towards Beijing

While Beijing vigorously promoted the 17+1 mechanism between China and Central plus Eastern Europe and actively implemented the One Belt...

alibabaofficebeijing alibabaofficebeijing
India1 week ago

Alibaba and Jack Ma summoned by Indian Courts to respond to Complaints

Court documents show that an Indian court issued subpoenas to more than a dozen individuals and companies including Chinese Internet...

Dickson Yeo1000x600 Dickson Yeo1000x600
News1 week ago

Singaporean pleads Guilty to Spying for China in the United States

A Singaporean man recently pleaded guilty to spying for Chinese intelligence services, the US Department of Justice announced Friday. The...

marsalek1000x600 marsalek1000x600
Germany1 week ago

Jan Marsalek, from a School Dropout to the Number 2 at Wirecard

Marsalek came to Wirecard at the age of 20. The tech-savvy school dropout had caught the interest of the Wirecard management...

grenadapassport1000x600 grenadapassport1000x600
Germany2 weeks ago

Breaking News : Jan Marsalek possible citizen of the Caribbean Island of Grenada with a New Name

According to German Intelligence sources, Jan Marsalek – an Austrian and former COO of Wirecard might carry a Diplomatic passport...

Germany2 weeks ago

Thanks to Wirecard Erotic Massage Services move to MyDirtyHobby, Pornhub & Big7

Massage Studio’s are moving to the Virtual Online Space thanks to Wirecard’s Bank and some porn portals registered in Cyprus,...

wirecard1000x600 wirecard1000x600
Germany2 weeks ago

Three new arrest warrants issued in the Wirecard Scandal

The public prosecutor has made great progress in investigating the Wirecard balance sheet scandal. Accordingly, the group has been in the...

masksallrubbish masksallrubbish
Coronavirus2 weeks ago

German Transport Minister Scheuer “Eleven million masks, all junk from China”

Medical protective material is currently a scarce commodity worldwide and that is why the procurement of FFP2 masks for Germany...

heikomaas1000x600 heikomaas1000x600
News2 weeks ago

Germany Announces Response to China’s Hong Kong Security Law

German Foreign Minister Heiko Maas, visited his British counterpart Dominic Raab in London on Wednesday. If necessary, Germany would implement...

Advertisement

Trending Now