Sophisticated US investor first referred to GSW by Union Square capital writes on Seeking Alpha. He has some very salient points.
The Lowdown, Contributor
Comments (78) |
Following |
Send Message
Author’s reply »
Once the ASX publishes GetSwift's response, I will be able to offer a more thoughtful opinion. What I can say is that over the course of the last 8-months I have spoken with technology leads, various c-suite executives, and the IR departments at various "contract" clients/partners of GetSwift. Each of these conversations has echoed a similar theme. The product is very real, the stability of the system is first-in-class, and among others, the responsiveness for customization is second to none. The AFR (in potential collaboration with a few small hedge-funds) has made some very serious claims that are likely to be addressed. Most of these claims run completely contrary to my ongoing due-diligence. In addition, the one point I come back to is that insider shares remain in the IPO-mandated escrow account for almost 1 year from today. This means that management cannot personally monotize a higher market cap (cannot sell their shares). This investment is especially unique in the sense that 99.9% of these opportunities are privately held. The fact that GSW trades publicly means that the company now has an obligation to effectively communicate with their shareholders. The added layer of complexity is that none of their contract partners want/need their name in the press. A contract partner does not want to broadcast their white label technology solution to their competition. In addition, GetSwift does not want to broadcast pricing specifics as this could/would impact their pricing power on future opportunities.
Again, I will provide a more thoughtful response once GetSwift's response is published.
The more important response in the short term will be in the form of performance. While my expectations for the 4C (4th quarter report due shortly) are low, continued upward momentum is important. In addition, reaching the Class C performance milestone (750,000 transactions in a calendar month), updating the market on NA Williams, and securing the CTO role, will all help support the trajectory of the company.
While I am very disappointed by the level of professionalism displayed by the AFR, I am excited that they might be providing GetSwift with an important opportunity. Based on my recent communications, I remain very optimistic.
