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 to be no longer in business.
Gowex told some investors that New York City was paying them €7.5 million. GOW told us €2 million. The real number is <€200,000, according to New York City.
Gowex does not publicly disclose basic metrics, such as hotspot count or wireless revenue segment details.
The head of investor relations is the CEO’s wife. She signed off on GOW’s annual reports.
The June 5th MallPlaza press release (in English) makes demonstrably false claims. The same press release in the native Spanish omits the false claims.
GOW lied to the European Union’s Transparency Register, claiming it spent over €50 mm in political contributions.
CEO Jenaro Garcia was a Director of Advanced Refractive Technologies, a penny stock fraud whose shares were revoked by the US Securities and Exchange Commission.
GOW’s private market valuation is only €0.14 per share, based on Arqiva’s acquisition valuation.