unemon Profile picture
15 Sep, 4 tweets, 1 min read
SHORT GRENKE $GJL

Point 1 - Fact -
Franchise Companies were related parties not disclosed to investors (all of them)

Point 2 - Fact -
Grenke acquired them for over 100m in cash (when they ere on aggregate loss making) - Results in 100m goodwill on Grenke Balance sheet
SHORT GRENKE $GJL

Point 3 - Fact -
Grenke has loaned the Franchise Co. money to finance lease receivables!

Point 4 - interesting conicidence -
Aggregate amounts post acquisition Goodwill, lease receivables at the Franchise Level, Money lended to Franchise are very similar
SHORT GRENKE $GJL

As of now GRENKE has lended another 130-170m to Franchise Co (annual reports).

Point 6 - My Speculation -
Will over time ... GRENKE ... announce the acquisition of further Franchise Companies for a Cash consideration of 130-170m ? resulting in Goodwill?
SHORT GRENKE $GJL

GRENKE Squeezing small business is an interesting angle ... BUT if you really want to understand GRENKE you need to look into the Franchise Companies Systems?

Why did investors not know The system was related parties?

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More from @unemon1

16 Apr 19
1/N - $WDI - for full transparency - here the math behind my analysis - Gonna be a few tweets .... hopefully someone will take the time and interest to go walk through them @AlderLaneeggs @SafkhetCapital @QCMFunds
2/N - Everything starts with Wirecard AG filings in Germany signed by EY - There you can see how much money Wirecard AG (not consolidated level) has risen over the years.
3/N I then try to understand where the money goes I see 3 options:
1. Stays in WAG
2. GOES to Subsidiaries (new "Forderungen" are created)
3. Goes to Subsidiaries in form of Capital Injections

Point 2 can be a bit tricky because of the Profit Transfer agreements WAG has
Read 10 tweets

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