US-based investment research firm fires a broadside against Temenos, prompting the shares of the software specialist to plunge.
Hindenburg Research, the eponymous short seller, has now drawn Geneva-based software specialist Temenos into its cross-hairs. A report accused the company led by CEO and acting chairman Andreas Andreades of accounting irregularities, failed products, and an illusive turnaround, prompting the software company's shares to fall dramatically after it was released.
In Asia, Hindenburg became widely shown in January 2023 when it accused India's Gautam Adani, the world's third richest man, of pulling the largest con in corporate history with his conglomerate. As finews.asia reported Wednesday, that had significant consequences, as his net worth was almost cut in half after the Hindenburg report. Since then, Adani's share price has recovered somewhat while in January Indian authorities declined to investigate the case.
Insiders Talk
Hindenburg's accusations are based on a four-month investigation including interviews with 25 former employees that uncovered classic red flags. They saw signs of manipulated earnings, including roundtripped revenue, sham partnerships, irregular contract renewals, backdated contracts, and excessive capitalization of research and development investments.
The report indicates a long list of deals that it raised doubts about. Hindenburg also said that it had taken a short position in Temenos, meaning that it would profit from any decline in the software company's share price.
Taking Cover
It appears that they have since made a tidy sum from that. After the report was publicly disclosed, Temenos shares fell by a third, declining from 89.34 Swiss francs to as low as 58.60 francs. They recovered slightly after that to close the day at 63.54 francs.
Temenons declined to discuss the Hindenburg accusations when asked by «AWP» a Swiss-German financial news service.
