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…