# WTC - WiseTech Global



## System (21 March 2016)

WiseTech is a leading provider of software solutions to the logistics industry globally. The Company develops, sells and implements software solutions that enable logistics service providers to facilitate the movement and storage of goods and information domestically and internationally.

WiseTech has 6,000 customers across more than 115 countries with offices in Australia, New Zealand, China, Singapore, South Africa, United Kingdom and the United States.

It is anticipated that WTC will list on the ASX during April 2016.

http://www.wisetechglobal.com.au


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## JJZ (21 March 2016)

I work in the industry and have spoken to Richard White on several occasions. He has always impressed me with his knowledge and professionalism.

The main application/platform is "CargoWise One"   they seem to be the main player in the industry. 

Most users I know are moving to their cloud solution which adds another growing income stream to wisetech globals business.

Keen to see what others think about this, might jump on this myself.


JJZ


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## The Falcon (21 March 2016)

JJZ said:


> I work in the industry and have spoken to Richard White on several occasions. He has always impressed me with his knowledge and professionalism.
> 
> The main application/platform is "CargoWise One"   they seem to be the main player in the industry.
> 
> ...




Yep, another Wisetech customer here. I identified some years ago the switching cost + network effect moats that Cargowise has. The question really comes down to the price though...will follow with interest.


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## JJZ (23 March 2016)

IPO info here:   https://www.wisetechglobal-ipo.com.au/Country-Validation/

JJZ


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## scoobydoo (9 May 2016)

Ok WTC hit $4.50 today - Not sure why - anyone know anything ?


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## peter2 (26 September 2016)

Nice chart for break-out trader with a series of higher lows. The daily volume is quite low, so be careful if you plan to exit fast. 

I'm hoping that supply runs out soon.


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## peter2 (2 May 2018)

It took eight months for price to take off from my prior chart posting. There were two nice break-out opportunities to get into the rising trend.

Price then fell from $16 to $9. There's usually a bust after every boom.

The reason for this post is that price has made a classic head & shoulder reversal pattern on the daily chart. There's a clear resistance level at 11.00 and price is near that level now.


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## rnr (2 May 2018)

peter2 said:


> It took eight months for price to take off from my prior chart posting. There were two nice break-out opportunities to get into the rising trend.
> 
> Price then fell from $16 to $9. There's usually a bust after every boom.
> 
> ...



It will be interesting to see how the bearish A divergence plays out!


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## Ferret (5 May 2018)

It certainly went for a good run last week.  I decided to get in on Tuesday.


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## peter2 (10 May 2018)

Price has reached the H&S pattern target (13.20). 
This price also coincides with the 50-62% retracement of the move down.


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## greggles (22 August 2018)

Great FY18 financial results announced by Wisetech Global today.






Unsurprisingly the WTC share price surged on the news and is currently up 27.11% to be trading at $19.88 and looks set to break through $20.


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## notting (22 August 2018)

Shorter destruction is what is happening!


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## barney (22 August 2018)

notting said:


> Shorter destruction is what is happening!




This one and all the others you have mentioned today @notting  reminds me of what a M8 of mine who once worked on the Sydney Future's Exchange told me.   He said "the boyz" on the floor  would come out in the morning and discuss which sector/stocks they were going to target on any particular day ..

Poor bugger has been dead for many years now, but today looks like a bit of that behaviour is still going on


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## leyy (22 August 2018)

I am kicking myself for not taking a position in May 2018 when the share price retraced to circa $10.00, I have reviewed this business in detail and it has such a compelling product.

The one that got away, will definitely review when this retraces again.


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## leyy (23 August 2018)

Holy **** this stock is going up like wildfire, up 45% in two days.


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## Miner (20 February 2019)

leyy said:


> Holy **** this stock is going up like wildfire, up 45% in two days.



and dived down today 12% as I write! Already priced before announcement ??


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## leyy (20 February 2019)

Miner said:


> and dived down today 12% as I write! Already priced before announcement ??




Summary of the results below:






 Revenue expectations was ahead of consensus but slightly lower than the expectations for NPAT growth. 

In terms of outlook, management made a slight change to FY19 guidance, with revenue now expected to be in the range of $322m – 335m (was $320m - 333m) and EBITDA unchanged at $102m – 107m. 

My view is that this is a terrific opportunity to buy.


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## leyy (20 February 2019)

Also executive management have aligned goals with shareholders.

They have some serious holdings.


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## Miner (22 February 2019)

leyy said:


> Also executive management have aligned goals with shareholders.
> 
> They have some serious holdings.
> 
> View attachment 92368



For some reason, market is not convinced with the EMT holding


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## tinhat (22 February 2019)

Another stock delisted from Lincoln Indicators Star Stock selection this reporting season:



> Following our review of Wisetech Global Limited we have removed the company from coverage as a Borderline Star Growth Stock as the company no longer complies with Golden Rule 1, Financial Health. Over the half, and despite the strong rise in operating cashflow, its financial health deteriorated due to the growth in intangible assets, decrease in the tangible asset and an increase in contingent consideration liabilities tied to the acquisitions WTC has been executing.


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## Miner (22 February 2019)

tinhat said:


> Another stock delisted from Lincoln Indicators Star Stock selection this reporting season:



Gees @tinhat
You are having ball with Lincoln feedback and sharing the same .
Much appreciated


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## kenny (22 February 2019)

tinhat said:


> Another stock delisted from Lincoln Indicators Star Stock selection this reporting season:




Thanks tinhat. Do they offer a price target for fair value given the deteriorating financial health? Bell Potter's recent report maintains WTC as a Sell with a 12 mth PT of $17.50.

The results appeared quite solid despite the higher net interest and amortisation expenses.


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## tinhat (22 February 2019)

kenny said:


> Thanks tinhat. Do they offer a price target for fair value given the deteriorating financial health?




$14.50


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## Miner (28 March 2019)

tinhat said:


> $14.50



Could any one please provide his/her opinion on the rights placed by WTC at only 2% discount $20 about and market price is still $23. Normally on CR announcement market goes south.
I was referring to previous postings on WTC including how Bell Potter price target for WTC was $17. But digging into their research notes, I found interestingly BP has been consistent to declare WTC as a sell and ironically market did not oblige them.
Please refer some snips .
BP reported on 20 March WTC as a sell still with price target of $20 when market price was $20. Is it some sort of vendetta they have considering they have been consistent sell rating on WTC even back in Sept 2017, they predicted a price target of $8 when market price was $8.85. Both extracts are pasted here.
I knew when BP was dead against of FMG in every forum to be an useless share. I remember Quint's lecture some 6 years (?) in Perth. He mentioned DONT TOUCH FMG but stock market did not listen and you do not need me to lecture on FMG.
I partially off loaded WTC earlier and thinking of committing on the share rights. Like to hear from you and your experience on this.


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## Knobby22 (28 March 2019)

It appears to me a good company, the question is whether it is overpriced. Just because Bell think its a little overpriced short term doesn't mean long term it won't still do well. Don't forget Bell have discounted for risk. If you can't see the risk then the discount doesn't apply and the present price is fair under their evaluation. the prediction is that eps will be double in two years time which is a pretty good growth rate.
Dividends will more than double. the problem is that the price is very high P/E of 134 so the growth needs to be fabulous.  it hasn't got any debt also which is good.

I think the company is a little bit priced for perfection. I worry that it is too easy to compete against (that is not much of a moat).
I normally think you should take the rights purely as you will be diluted unfavourably but
what are they going to do with the cash? Takeover? I think it all depends how good you think management is. Tough one.

I don't own (more fool me as price doubled).


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## Miner (28 March 2019)

Knobby22 said:


> It appears to me a good company, the question is whether it is overpriced. Just because Bell think its a little overpriced short term doesn't mean long term it won't still do well. Don't forget Bell have discounted for risk. If you can't see the risk then the discount doesn't apply and the present price is fair under their evaluation. the prediction is that eps will be double in two years time which is a pretty good growth rate.
> Dividends will more than double. the problem is that the price is very high P/E of 134 so the growth needs to be fabulous.  it hasn't got any debt also which is good.
> 
> I think the company is a little bit priced for perfection. I worry that it is too easy to compete against (that is not much of a moat).
> ...



thanks @Knobby22  for sharing your thought and view.  They are useful to see from another angle than just my own.
Only I would say about Bell that their predicted prices have constantly upped since 2017 but their ranking of sell has been consistent. So my query was why Bell kept on moving up their price target.
PE ratio is absolutely horrendous and being a tech stock, the puncture to the balloon would be horrendous. 
Let me read what other posters are saying.


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## bigdog (20 August 2019)

WTC is reporting 2019 Full Year Accounts tomorrow August 21

ASX announcement yesterday
19/08/2019 11:58:36 AM WTC acquires US container yard solutions, Depot Systems

WiseTech announced the acquisition of a US-based container yard and terminal management logistic solution company for $4.4 million upfront.

Depot Systems is a leading provider of container yard management, maintenance and repair estimating, with WiseTech paying $4.4 million with a further multi-year earn-out potential of $2.7 million."
*
Depot Systems* is a leading provider of container yard management, maintenance and repair estimating, with WiseTech paying $4.4 million with a further multi-year earn-out potential of $2.7 million.

Share price did have high of $27.92 up 0.64 cents earlier today






893


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## Garpal Gumnut (20 August 2019)

bigdog said:


> WTC is reporting 2019 Full Year Accounts tomorrow August 21
> 
> ASX announcement yesterday
> 19/08/2019 11:58:36 AM WTC acquires US container yard solutions, Depot Systems
> ...




I must admit to knowing nothing about this stock but a near 2 fold increase in price of 3 years cannot be ignored. 

From my tech perspective this stock is headed for $20.

It seems to being pushed atm by brokers or instos wishing to get out. 

It is a classical 1-2-3 case which would fit in with Bell's anticipation of a $20 price or thereabouts. 

I trust this chart explains my TA on this stock. 

$20 or thereabouts is support and resistance.

gg


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## leyy (21 August 2019)

WTC report this morning.

Above guidance and expectations for Revenue & EBITDA.


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## leyy (21 August 2019)

Outlook for FY20.


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## bigdog (17 October 2019)

ASX announcements
17/10/2019 1:41:48 PM 2 Trading Halt (PDF 214.1 KB)
17/10/2019 12:18:28 PM Pause in Trade

This morning J Capital released a report claiming that WiseTech Global is overstating its profits.

The short seller estimates “that overstated profit in the three years since WiseTech listed may be as high as $116 million. That would be an overstatement of 178%.”

After obtaining financial fillings of its European subsidiaries, J Capital has doubts over its European business. It alleges that the company’s “European revenues were overstated by as much as $48 mln in FY 2018.”






Today had a low of $28.93 and stopped trading at midday






470


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## bigdog (19 October 2019)

bigdog said:


> ASX announcements
> 17/10/2019 1:41:48 PM 2 Trading Halt (PDF 214.1 KB)
> 17/10/2019 12:18:28 PM Pause in Trade
> 
> ...




*WTC ASX announcement after close on Friday October 18*

18/10/2019 4:41:25 PM  *WTC responds to misinformation in the market






refer file uploaded to read responses to the key allegations
*
549


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## kid hustlr (19 October 2019)

These short raids are really becoming a thing.

I like WTC's reply and I think they've gone about it the right way, still wouldn't suprise me if they get sold off Mo day though


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## bigdog (22 October 2019)

https://www.theage.com.au/business/...battle-with-tech-darling-20191021-p532qn.html

*Short seller fires second torpedo in bloody battle with tech darling*




*Elizabeth Knight*

October 22, 2019

If there is enough smoke billowing from a company that investors can’t actually see what’s going on then there doesn’t need to be a fire to justify selling. And this is precisely why shares in one of Australia’s tech darlings, WiseTech, have fallen more than 22 per cent over its past two trading sessions.

The first scramble for the exit was triggered by a scathing report from hedge fund J Capital in which it contended WiseTech, a logistics software company, had inflated its revenues and its assets

This report landed on Thursday prompting WiseTech to halt share trading on Friday so that it could refute J Capital’s findings.

But no sooner than WiseTech had responded to the report and the shares started trading on Monday morning,  J Capital released is second torpedo, which picked holes in WiseTech’s attempted repudiation and found a new avenue of attack.

This time the short seller homed in on WiseTech’s history of poor acquisitions and alleged the logistics software group had misled investors on the real rates of customer attrition from its main product CargoWise.

The shares were hit a second time - down another 12 per cent in an hour. Once again WiseTech halted trading in order to respond to the latest salvo.

The hapless investors that may have wanted to sell can do little but strain their necks as they watch the two combatants, that are locked in a high stakes argument, lob insults back and forth.

And with so much smoke it is extremely difficult for shareholders to know who to believe.

Even if WiseTech’s accounts are pristine there remains one logical reason that investors should be concerned. The stock is trading on a price-earnings multiple of almost 150 times which means it is wildly expensive.

This company listed in 2016 for $3.35 a share and until last week was trading at more than $33.

When a company is priced at these nose-bleed levels there can be no room for error. These companies need to grow revenue or profit exponentially to justify the share price.

Any suggestions that profit or revenue have been pumped by accounting treatment would be a concern.

In WiseTech’s case its aggressive acquisition strategy, which has seen the company invest $400 million on new businesses over the past three years, could be considered a red flag, particularly to short sellers.

Although this may not be a problem in and of itself, rapid-fire acquisitions can cloud the picture for investors who are unable to read through comparisons from one year to the next.

Excessive growth through acquisitions can also result in indigestion and execution risk.

We believe that when WiseTech slows or stops acquisitions, shareholders will realise they own a motley global collection of small, poorly-integrated companies with dispirited staff.

Another in any short seller’s repertoire of red flag issues is executives/directors/founders selling shares. There has been a bit of this going on which isn’t a great sign but most still own a reasonable chunk of stock.

All of these features mean that WiseTech is ripe picking for a short seller - regardless of whether the concerns are legitimate.

And history shows that plenty of these kinds of highly critical reports unearth some major problems within companies.

Not all have been life-threatening but they have had a major impact on the value of their shares.

J Capital is running the argument that WiseTech’s strategy to growth through acquisition is flawed.

It describes as "bollocks" comments made by WiseTech chief executive Richard White on a recent earnings call that, "Our acquisitions are strategic, not revenue roll-ups. We are building highly efficient and scalable mini WiseTechs with significant market positions and key customer bases across the world".

J Capital says that because the companies WiseTech acquires don’t produce the desired results, it just accelerates acquisitions to keep the growth narrative going.

"We believe that when WiseTech slows or stops acquisitions, shareholders will realise they own a motley global collection of small, poorly-integrated companies with dispirited staff," J Capital says.

It’s a big call but one that has inflicted a couple of billion dollars in value damage in two days.


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## bigdog (23 October 2019)

https://www.theage.com.au/business/...-by-short-seller-hit-job-20191022-p53319.html

*WiseTech backers unconvinced by short seller 'hit job'*




*By Colin Kruger*
October 23, 2019

One of WiseTech's earliest institutional shareholders has sprung to the defence of the logistics software company, while a market analyst dismissed the allegations levelled at the firm by J Capital Research as a 'hit job'.

WiseTech shares remain halted as the company prepares to respond to the second incendiary report from Beijing-based short seller and researcher J Capital Research that claimed the company has overstated its profits.

"At this stage, we are not particularly convinced or concerned by the allegations," said Morningstar analyst Gareth James who called the short seller's reports "unconvincing" in a research note on Monday.

He said the release of two separate research reports makes sense if the objective is to try and scare people and create fear amongst investors *"but it does look a little bit like a hit job."*

Morningstar remains bearish on the stock's valuation. It has a price target that values WiseTech at less than $2.6 billion compared to its current market capitalisation of $8.37 billion. But the research firm it has no problem with the quality of the business itself.

"We’re still comfortable that this is a decent business that should deliver relatively high earnings growth," he said.

WiseTech is aiming to become the operating system for the trillion dollar logistics industry with a cloud-based solution which ensures data gets entered once and shared everywhere on the system between different logistics providers.

*TMS Capital portfolio manager Ben Clark also backed WiseTech* and its management, lead by company founder Richard White, against the reports which allege the company has overstated revenue and earnings.

Mr Clark remains unconvinced by the J Capital arguments and its motivations.

If everything they say is real, you would have seen a lot more insider selling

TMS Capital portfolio manager Ben Clark

"You’ve just always got to keep in mind that the complete motivation of whoever disseminates the information is to get the share price down because that’s the only way they will make money," said Mr Clark.

“My view would be that Richard White has delivered on and more everything he’s said. He has barely taken any money out of his personal holding in WiseTech shares, and that to us is a real sign of confidence," he said.

TMS has owned WiseTech shares since 2016.

“If everything they say is real, you would have seen a lot more insider selling because there has been plenty of opportunities for the founders of this business to sell down their stakes. They have been incredibly reluctant to,” said Mr Clark.

Wisetech lodged a rebuttal on Friday to the first report saying it "rejects entirely the allegations of financial impropriety and irregularity contained in the document".

The stock has dropped more than 20 per cent since last Thursday when the first report from J Capital was released.

*J Capital was co-founded by former Labor candidate for the federal seat of Wentworth, Tim Murray.*

In _China_ 'if you're not bending the rules you can't win,' says _Tim Murray_


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## Knobby22 (23 October 2019)

I  have not looked very  closely, but it appears to me that if the price got to around $20 it would be a buy on fundamentals and in technical terms it would be oversold and bound to bounce back a bit.


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## bigdog (23 October 2019)

Trading again
High today of $29.38 and low of $24.32

At 2:34 PM






ASX Announcement this morning
*WTC responds to misinformation in market report*










REFER UNLOADED FILE "WTC responds to misinformation in market report" FOR RESPONSE TO KEY CLAIMS

743


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## galumay (23 October 2019)

Do you have any thoughts on the business, @bigdog?


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## bigdog (19 November 2019)

WTC was a  major loser today after AGM announcement

In FY 2019 WiseTech Global delivered revenue of $348.3million and net profit after tax of $54.1million. This was a 57% and 33% increase, respectively, on FY 2018’s result.

The logistics solutions company reiterated its revenue and earnings guidance for FY 2020.

FY 2020 revenue is expected in the region of $440 million to $460 million, implying revenue growth of 26% to 32%. Whereas EBITDA is expected in the range of $145 million to $153 million. This represents EBITDA growth of 34% to 42%.

No doubt, the short seller J Capital has weighed on its shares today and a reminder that the short seller attack is far from over.

19/11/2019 9:33:19 AM WTC AGM addresses, on track to deliver FY20 guidance (uploaded)












009


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## tinhat (19 November 2019)

I bought some after J Capital fired their second salvo. I was hoping the share price might have bounced back a bit harder since then. Time will tell who is telling the truth, but Lincoln Indicators are still backing the company and I pay them the money to give me the info.


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## Trav. (11 February 2020)

WTC popped up on my scan the other day as I was looking at stocks in stronger sectors (Information Technology / Software ) and today WTC broke through some resistance @ $28 which should see a HH generator soon. Volume is not huge but is distorted a bit on the charge by the huge bar in November

not held


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## zaxacel1975 (12 February 2020)

What is a HH generator if you don’t mind explaining Trav?
I got into this stock on the last day of last year @$23.38, gone sideways until the last week or so.


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## Trav. (12 February 2020)

Higher high

probably didn't help that i spelt generated incorrectly, just gives a bit of an indication of price trending higher


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## zaxacel1975 (12 February 2020)

Trav. said:


> Higher high
> 
> probably didn't help that i spelt generated incorrectly, just gives a bit of an indication of price trending higher




Thanks Trav. I did assume higher high, but was wondering if a HH generator was some sort of tech tool.
Appreciate the response.


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## Dona Ferentes (19 February 2020)

You'd expect an outfit like WTC, involved as it is in international logistics and customs clearance, to be hit with China in a pickle. And it has.







> WiseTech Global said it expects full-year revenue of between $420 and $450 million, an increase of 21 to 29 per cent on 2019. It expects full year earnings (EBITDA) of between $114 million to $132m, an increase of between 5 and 22 per cent on last year.
> 
> Previously, the firm guided to revenue of $440 million to $460 million and EBITDA in a range of $145 million to $153 million for the year.



Down some 20%


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## Dona Ferentes (19 February 2020)




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## pikhang033 (19 February 2020)

still drops 6% even with strong financial results?!


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## bigdog (19 February 2020)

ASX  19/02/2020 10:18:22 AM 9  WTC continued strong growth, revenue up 31%, EBITDA up 29%

26353 trades $61 million todate!!












Page 9 of this asx announcement today
19/02/2020 10:18:22 AM WTC continued strong growth, revenue up 31%, EBITDA up 29% (uploaded)

*Outlook FY20*
WiseTech Global Founder and CEO, Richard White, said “The predicted early 2020 recovery from the end of 2019 trade volume softness within the logistics industry (as a result of US-China trade war), was in effect in early January. However, the unexpected outbreak of coronavirus (COVID-19) and the effective shutdown of China, a critical driver of the global manufacturing supply chain and a ~16% contributor to global GDP, is creating negative flow-on effects to manufacturing, slowing supply chains and economic trade across the world. While we have a diversified array of revenue drivers that provide resilient organic revenue growth across our global platform, we do anticipate that the manufacturing slowdown will delay execution of logistics activities by logistics service providers.”

“The speed of recovery of China manufacturing, replenishment of inventories worldwide and restoration of supply chain volumes, once started, will likely create a significant rebound in volumes and logistics transactions, however, the interim delay may cause some transactional revenues to move into the next reporting period and potentially delay the launch of new products planned for 2H20.”

“Despite this, what has not changed throughout this period is the accelerating adoption and continued rollout of the CargoWise solution among our customers. While these short-term challenges represent immediate headwinds for industry and the world economy, they in no way diminish the rising demand drivers for our platform among logistics providers. Our success has been founded on a long-term focus and strategy which has enabled us to make deep investments to cement our technology and product leadership. We will continue to focus on delivering on our five levers of growth as we build the operating system for global logistics.”

“We have delivered strong progress in 1H20 across our technology and operations, which will create long-term value for our shareholders, and we will continue to drive the business through 2020 and beyond in the uncompromising execution of our strategy.”


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## Miner (19 February 2020)

Like EML  this one also dived down even after EPS surged by 147 % just because the guidance was downgraded.
all part of bubble ??
https://www.asx.com.au/asxpdf/20200219/pdf/44f7512fjgrdvy.pdf
https://www.fool.com.au/2020/02/19/wisetech-share-price-crashes-20-after-downgrading-guidance/


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## Dona Ferentes (19 February 2020)

Miner said:


> Like EML  this one also dived down even after EPS surged by 147 % just because the guidance was downgraded.
> all part of bubble ??



 WAAAX and wane?


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## Miner (28 November 2020)

Interesting sale by one director - about $13.5 M sale over 11 days - latest on 18 Nov


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## Trav. (28 November 2020)

wow he still holds a significant number of shares, I would be happy with 10%


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## barney (28 November 2020)

Miner said:


> Interesting sale by one director - about $13.5 M sale over 11 days - latest on 18 Nov




He must need some petty cash to buy Xmas presents! 

Am I correct that his remaining shares at around $30 per share equates to over $4 billion dollars!!  Speechless


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## Garpal Gumnut (25 August 2021)

This has gone past the RIHR.

Anyone else pick it up?

gg


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## dyna (26 August 2021)

shorters covering their asses ,maybe ?


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## dyna (12 September 2021)

Latest earnings : up 28%. Latest gossip : CEO Richard White to offload a few more shares.  $ 100 Million worth, in fact. And good on him, too.
It's only less than 1 % of the Wise Tech register. The poor guy's timing is a bit better, this time, however. About a year ago, he sold less than 2 % for $ 165 Mill. With the S.P 60 % higher today, he could have made $ 118 Million more. The billionaire tech founder still retains over 40 % of his company's shares.


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## Dona Ferentes (24 August 2022)

good results:

profit surging 80 per cent to $194.6 million.
EBITDA of $319 million, up 54 per cent on the previous year (top end of guidance)
revenue was also at the top end of its $600 - $635 million guidance range, coming in at $632.2 million – up 25 per cent.
signed 10 new global customers to its flagship CargoWise software platform in the 2022 financial year, including UPS, FedEx and Access World.


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