Bankruptcy games with sudden high price jumps are not uncommon on the Frankfurt Stock Exchange. Wirecard is no exception. Again and again it is mainly messages from the bankruptcy proceedings that represent invitations to the “gamers”. This applies especially to news in connection with the breakup of the insolvent companies, if potential investors can make use of the operative business for bargain prices.
What is often overlooked by investors in the short-term gamble of gamblers: The prices paid for the operating business are regularly not enough to pay out even the creditors, let alone that something can still jump out of the sales for the shareholders. In plain language: at the end of the bankruptcy proceedings there is a total loss. This does not prevent traders from trying their luck again and again in the environment of such reports and betting on fast, high profits.
Yesterday it was time again at Wirecard and the high-risk game started. The trigger was a message from the bankruptcy administrator Michael Jaffé, who – again – emphasized the high number of interested parties for various parts of Wirecard’s operational activities. This happened in July: On July 7, Jaffé provided the first details on the number of potential buyers for parts from Wirecard and the company’s share price soared from EUR 2.05 to EUR 3.44 – in around two hours, mind you. In the days that followed, not only were all profits lost again, the Wirecard share also fell significantly below the EUR 2 mark and fell to EUR 1.52.
Yesterday, according to Jaffé, the upward movement was not quite as drastic. The Wirecard share went out of the XETRA trade at EUR 1.59 and shot in the evening after 3pm Press release from the Wirecard insolvency administrator then in Tradegate trading up to 2.10 euros. With 2,064 euros and a market capitalization of 255 million euros, the insolvent scandal group then went out of business into the weekend.