The Difference between Wirecard and Steinhoff

Wirecard and Steinhoff are both companies of German origin which had accounting scandals. In this post I want to describe why these two accounting scandals are completely different and why I choose to take a long position in Steinhoff after the scandal, although I did make a profit with a short position in Wirecard.

I am writing this article because I want to describe that shorting a stock with an accounting scandal / fraud isn’t always the best option. Sometimes this can be a chance for a long position.

The Wirecard Scandal