A QUESTIONABLE MODEL, but there’s no denying that short-sell extraordinaire Gotham City Research is really shaking up the market, Off Balance notes.
The prescience of its withering analyst note of the accounting and management issues at Madrid stock market player Gowex has certainly earned it some serious kudos, reports the FT.
Last week, Gotham City Research’s…research prompted the WiFi provider to recruit PwC to run a forensic audit of its accounts.
Yesterday, Gowex chief executive and founder Jenaro Garcia Martin confessed to falsifying the accounts for several years, going down the route of many stars and celebs of opening up on Twitter: “I want to collaborate with justice. I will face the consequences.”
While many point out that Gotham City’s model appears to be to short shares, then publicise loads of rubbish about them, it’s fair to say they have made a few enemies. Then again, how many analysts, piled high into a share, publish ‘saccharine’ notes about the business? At least Gotham’s shaking things up, Off Balance thinks.
And if you’re telling the market how it is at your company, there’s nothing to worry about. Hmm?