value and opportunity

Prof. Damodaran looks at Zomato, the Indian Food Delivery market leader

An interesting analysis on (abnormal) returns of SPACs

A good reminder how bad behavior can prevent success in investing

The story of (soon to be public) Chobani Greek Yoghurt

Form Energy (backed by Bezos and Gates) has developed a new (and cheap) powerful Iron based battery 

Nice pitch for European Stocks in general

Fred Wilson on how the VC process and landscape has changed since the start of the pandemic

Disclosure: I have no exposure to Grenke nor do I plan to have no exposure for the foreseeable future.

Grenke is a company I have written about quite often in this blog. My only investment had been the purchase of Grenke Bonds after the “Short Attack” in September 2020. I divested them relatively soon after the first rebound with a decent profit.

Since then a couple of things happened: The COO suddenly resigned on Feb. 8th, with an understandable explanation given only one day later. The story that was also communicated via some back channels was, that everything was fine and the main issue was that the German regulator BAFIN is over eager after the Wirecard Fiasco and there is no reason to worry. Another story is that Grenke is still an “innocent” inexperienced company and therefore communication is not so professional but the company as such is a great company with a great future.

Personally, I always had issues with Grenke. Yes the numbers always looked great, but I found the reporting very intransparent, for instance their “Free Cash Flow” definition which included debt issuance which at least in my “old school” thinking is not even close to free cash flow.

Last week now, Grenke came out with an update which at first sounded like what we in Germany would say is a “Persilschein” or a proof that everything is great. It starts as follows:

Read more