ha. Penetration? It's at about 7% of all global FF. And besides they are also building new platforms for other forwarding functions i.e. they only do some functions of forwarding duties. Growth is not an issue.
The misunderstanding is the difference between designing a platform for a complex ecosystem or designing a decent platform and marketing the hell out of it. Wisetech is pumping lots of design $, along with strategic acquisitions, into their product so it is inevitable that the product will stick to the system. Richard is very clear on this but I think people misinterpret what he means by strategic acquisitions. They are purchased not because they are in different countries or new markets...but because they are drivers for the ecosystem. He is looking at controlling important feedback loops in FF which, if successful, will ensure that the only sensible way to move objects will be through Wisetech. There will be too many barriers with other products.
And on the topic of PE, as mentioned in countless places, it is hard to make any sensible judgements of SaaS companies using PE. PE is a rough guide to future earnings. So, the real question is about future earnings, not a number. There are many factors to guess future earnings but with such a strategic view I just can't see how the company can fail. It is true that if I bought now and they stayed as they are it would take two lifetimes to get my make money, that much the PE number is telling us...but my argument is, if they target the right feedback loops, it is almost inevitable that they will master the FF world. And with products so deeply imbedded in the system Wisetech becomes valuable to so many other areas of the trade system. Think of all that valuable trade data
R1
WTC Price at posting:
$26.37 Sentiment: Buy Disclosure: Held
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