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18 March 2023
By Maynard Paton
You can become a better investor by occasionally visiting the stock-market graveyard.
One company that now seems destined for the cemetery is WANdisco, the software developer that the other week suddenly warned of “significant, sophisticated and potentially fraudulent irregularities“.
The shares have been suspended while independent investigators work out what exactly has occurred. Remarks including “significant going concern issues” make for grim reading:
“The identification of these irregularities will significantly impact the Company’s cash position and lead to a material uncertainty regarding its overall financial position and significant going concern issues. The Board now expects that anticipated FY22 revenue could be as low as USD 9 million and not USD 24 million as previously reported. In addition, the Company has no confidence in its announced FY22 bookings expectations.“
I wrote about WANdisco for SharePad during May 2021 and the bombshell announcement must prompt a revisit. What can we learn to help us avoid the next great investment disaster?
Let’s take a closer look.