Gotham City Research initiates coverage on Let’s Gowex SA, with a price target of € 0.00/share (100% downside)
SUMMARY OF OPINIONS
- Gowex shares are worth €0.00 per share.
- Over 90% of Gowex’s reported revenues do not exist. We estimate GOW’s actual revenues to be <€10 million.
- The shares will be suspended, just as Pescanova’s shares were suspended.
SUMMARY OF FINDINGS
- Gowex’s actual Wireless revenues are at most 10% of what GOW reports in its financial statements.
- GOW’s Hotspot network it owns or manages is ~5K in size. CEO told us 100K+ & JBCapitalMarkets estimates 35K.
- GOW’s audit fee is €40,000, which makes sense if Gowex’s actual revenues are only 5%-10% of reported revenue.
- 90% of Telecom revenue originated from undisclosed related parties, tied to GOW CFO & an early investor. We have evidence Gowex’s largest customer was really itself.
- Gowex Telecom (i.e. Iber-x) website has not been updated in years. It appears…
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