GN Store Nord (GN DC) Denmark
Report by Forensic Alpha
Forensic Alpha always finds it interesting when a company flags on their system during a large capital raise since the incentive for manipulation is particularly high. GN's rapid increase in capitalisation of costs (especially since 2020) should be cause for concern. This pattern stands in sharp contrast to the amortisation of these intangibles remaining remarkably flat (aided by the "Useful Life" of the software intangible suddenly expanding from "1-7 years" in 2021 to "3-10 years"). If Demant is indeed actively looking at the company, some careful due diligence on the intangibles would be a good place to start.