I'm unfamiliar with WiseTech, but JCapital's report hit the share price hard. On the 16/10/19 WTC was trading as high as $34.83, within 3 days of trading (after halts) it was as low as $24.32. Down 30%. If you stretch that from the open the day before to the close an additional day after it was down 23%. It hasn't returned to that pre report price, but that should be qualified with the effect of the pandemic.
If JCapital's approach to NEA is similar to their approach with WTC we may well see a second report coming from them on Monday or Tuesday.
From AFR 26/10/19 - Re the JCapital Report on WiseTech
...Alarmed investors dumped WiseTech shares, causing the price to slump more than 10 per cent, before trading in the stock was halted last Thursday.
No sooner had WiseTech shares resumed trading on Monday morning, than JCap unleashed a second barrage.
This time, the report highlighted WiseTech's history of dubious acquisitions and revealed that an independent survey found high levels of dissatisfaction among companies touted on the logistics software group's website as model clients.
Once again, the WiseTech shares were sent reeling, and a second trading halt was declared...
In my opinion their report on NEA (while it holds grains of truth) was
- highly selective (US offices in San Francisco, select counties choosing competitor, outdated Glassdoor reviews)
- poorly researched (Director selling at the direction of the Family Court)
- and a strong flavour of bias toward a particular competitor.
A slovenly document that the author should feel no pride in.
NEA Price at posting:
$2.16 Sentiment: None Disclosure: Held
