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Wirecard share price exploded by more than 200%, becoming the best-performing companies in the DAX index. The company’s share performance imply that some investors still see some value in the bankrupt company even after it filed for bankruptcy. Still, the performance is a clear example of what penny stocks do because their performance is usually driven by retail traders. Is there any value in Wirecard? For starters, Wirecard used to be a fintech company in Germany. The company owns a bank in the country and a payment network that helps companies process their funds. At its peak, the company was valued at more than €24 billion, making it the most valued technology company in Germany after SAP. The company’s problems started to emerge late last year when the Financial Times started publishing reports about the company. This followed a report from a whistle blower who said that the company’s reporting was not accurate. In response, the board requested KPMG to investigate the reporting. In April, KPMG released a report, clearing the company of any wrongdoing. However, it cited a difficult research process as the company denied it access to key materials. The last nail on the coffin came last week, when EY said that it could not find nearly $2 billion. In a report later, the company said that the $2 billion never existed. This left the highly indebted company with nowhere to go. The CEO resigned and the company decided to file for bankruptcy. He was also arrested by German authorities. Is there any value in Wirecard share price? At the current price, investors are putting a valuation of more than €120 million. They believe that some parts of the company can be sold to investors. However, the original business for the company is almost dead since Visa and Mastercard could opt to blacklist the company. Also, it will be impossible for most clients to remain within the network. Why is Wirecard share price surging? As mentioned above, Wirecard share price is up by more than 200% today. Does this make it a good buy? There are two main reasons why the stock price is rising. First, some investors believe that it is undervalued and that some parts of the business can be salvaged. Second, the stock is behaving as a typical penny stock. Most penny stocks see large swings as retail traders seek to benefit from its volatility. Therefore, for any long-term investor, it would be unwise to invest in Wirecard. Download our Q2 Market Global Market Outlook Wirecard share price technical analysis The daily chart shows the tragic performance of Wirecard share price. The shares are trading at €3.28, which is higher than the all-time low of €0.6. The price is below the 100-day and 50-day exponential moving averages. The RSI has also moved to the most oversold level on record while volatility, as measured by the Average True Range (ATR) has continued to rise. Therefore, the outlook for the shares is still dovish in the longer term.