We are unimpressed with Ströer’s response to our initial report. There seems to be a cottage industry that has grown up around responding to criticism from short activists. Accordingly, Ströer leaves major issues unaddressed, which we presume is because it has no good answers. Further, certain of its response were highly misleading.
This response to Ströer is 10 pages long, plus a 14-page appendix. It covers the following topics:
1. Historic Organic Growth Remains Overstated
2. Whether Ströer Reports Q1 Organic Growth that Exceeds Guidance is Irrelevant
3. Müller Misleads in Response to a Question on Self Dealing
4. Ströer’s Operational EBITDA Justification Does Not Hold Water
5. Ströer’s Response Strengthens Our Conviction that the Cash Flow Statement is Prepared Erroneously (and Misleadingly)
6. Ströer Appears to Contradict Itself on freeXmedia, and Strengthened Our Conviction this was an Improper Transaction
7. Müller Appears to have told an Untruth
8. “Project Zero” and Alleged Ballroom Material Misstatements
9. Ströer Confirmed that Public Video is Unusually Profitable; Yet it Offered No Explanation as to Why
10. Müller and Ströer’s Moaning is Disingenuous
11. Dirk Ströer’s Relationship to Sambara Stiftung / Müller’s Failure to Address His Irregular Series of Share Transactions
12. Dirk Ströer’s Bizarre “Temporary Retirement”
13. Former CIA Behavioral Analyst and Polygrapher Found Numerous Indicia of Deception in Ströer’s Call and Written Response
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