Is GetSwift the Real Deal?, page-71

Speaking of GetSwift and and ASX dotcom bubble, I Found the following article published by an Australian company, Forager Funds Management - Quarterly report December 2017 re GetSwift. The link to it is on GetSwift's Nasdaq stock quote page (GSWTF), and I have included the hyperlink to it below anyway). I found it an interesting read as it appears to have gone for publication not long before the AFR news on GSW came out...

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GET WARY OF GETSWIFT

ASX-listed GetSwift is a logistics software startup with a fully-diluted market capitalisation of roughly half a billion dollars.

Despite generating less then $1m of revenue last year, a flurry of ASX announcements has investors excited.

In September GetSwift announced an “exclusive 5 year agreement with N.A. Williams” that, once up and running, is expected to generate $138m per annum of revenue. The only problem being that N.A. Williams doesn’t seem to be a company of any significance. Even Google doesn’t know much about it and the only financial information I could find suggested US$23m of revenue and 90 employees.

The ensuing months saw a flurry of other deals announced and then, in November, the big daddy of them all: "GetSwift is pleased to announce that it has signed a global services agreement with Amazon.”

Even the bulls of yesteryear would have been sceptical. One can only assume this is the same Amazon that built the world’s most sophisticated cloud computing service because it couldn’t find an offering that met its requirements. The same Amazon that already offers same day delivery to more than 8,000 cities and towns. The same Amazon that spent US$21 billion on research and development in the past 12 months.

I will be very surprised if Amazon buys logistics software off anyone. Let alone an Australian minnow with less than $1m of revenue.


In the mania of late 2017, however, it is being lapped up.
The GetSwift share price has rocketed from $0.25 at listing to $4.00 at the time of recent capital raising. It was up 84% on the day of the Amazon announcement.

Picking on GetSwift is possibly unfair. It is but one of at least a dozen small companies I could have chosen. It is emblematic, however, of the frenzy that has taken hold at the speculative end of the market.

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Also of interest is another article in the report alluding to what they call Dotcom Bubble 2.0 . They may have a point when you look at this chart they provide. Even here, GSW stands out like a piece of soap in a coal bucket:



Ref: https://seekingalpha.com/article/413...arterly-report
Disc: Have no affiliation or relationship with Forager Funds Management. Not holding ASX:GSW or NASDAQ:GSWTF