Exciting day in GSW land and one sense the panic in some posters who may have bought high or are shorting alike because GSW's response to AFR's claims is quite clear and emphatic.
In that regard the AFR might have to come clean about some of its sources for those quotes. Did they just speak to some random teller at their local CBA branch or something or what?
Anyway, I consider myself to be a pretty balanced investor. I back companies in speculative phases and I accept the risks. If you come waltzing onto the GSW HC forum right now, all high and mighty, trying to highlight how risky this investment is and warding others away, you are literally stating the obvious. This is a small cap tech stock that is working to establish itself and achieve incredible revenue growth targets. If you don't like volatility, constant crisicism from others, bi-polar media coverage that swings from love to hate each week, share security and dvidends then this is not the stock for you.
Now, to the ASX'
please explain response.
1.
Firstly, everyone keeps throwing the word "contract" around when it comes to NA Williams, CBA, Amazon, Yum etc etc. Not once in those announcement was the word contract used. NOT ONCE. This is a SaaS model with no lock in. Getswift is confident that the product will do the talking and when the customer integration is complete, the changes to the bottom line will keep the customer. THIS is the kind of relationship you WANT with a software supplier - not some monolithic "you must use us for 5 years no matter how much our software might not work out for you". People expecting that are stuck in the past, companies are agile and those that can move fast with the best solution win the day. All of these ann's were partnerships & agreements, in that GSW partners with the company to begin a white label integration with them that fits their business needs. This integration and testing can take some time. Furthermore the concept that a customer can just switch to a competitor at any time and is therefore a reason to not invest would be a valid reason to not invest in XRO or A2M or WTC. The reason a customer uses it is because a) they like the product and b) once they use it, it becomes a part of their routine and you don't leave unless something MILES better comes along. The onus is on GSW to keep making their product the best.
2.
Secondly, GSW has NEVER indicated that a trial of CBA was not required and not in effect. The very notion that a full commercial rollout has not commenced was NEVER a secret. See "CBA and GetSwift Update " dated December 18th, 2017 that states ...
"Both the Company and CBA are pleased with the progress of the program."
"Extensive testing, security reviews, stability metrics, and validation of the platform has been conducted in 2017. "
"Approximately 90,000 merchants will receive the new operating system with the GetSwift platform with go to market live rollouts planned from Feb 2018 onwards."
"The company expects to see revenues from the market utilization to start manifesting in mid-2018."
"CBA and GetSwift will jointly address and market the new product from Feb 2018 onwards."
It is almost as if the AFR completely ignored this progress update. Pathetic and insidious journalism.
3.
GSW is dead right in that their software transaction figures is the single source of truth for uptake and partnership revenue realisation. Once a partnership is announced and the integration is determined to be complete, the usage dictates the level of revenue. Getswift will NEVER be in a position to guarantee revenue from an individual customer as it is completely contingent on that customer needing to utilise the software and delivery demand. If Fantastic Furniture decides that they are phasing out deliveries because they will outsource them to someone else then it comes down to whether the new logistics partner uses Getswift. AGAIN, you have to watch the transaction growth as the main KPI. It ALL depends on this. Money/numbers talk. HC/AFR BS walks.
4.
Anyone challenging the board to be more forthcoming about partnerships not progressing quite as planned is being unrealistic. This is the nature of the bloody IT business! Sometimes things go slower and more work has to go into a project to make it come together. Integrations to third part systems are not always as easy as they first look and you are dealing with commercial in confidence projects and re-branding of the white label GSW app. Always allow time variation and a chance of execution change contingency in your investment expectations.
5.
This stock IS being actively shorted a little too coincidentally with a smear campaign at a point where stock volatility was at a low (usually a short exit point). This situation is highly suspicious and potentially manufactured. In light of all of the above and further dialogue between the ASX and GSW a suspension is absolutely warranted to prevent unnecessary market manipulation and as far as I am concerned it can stay there until all boxes are ticked. This is obviously a highly prized stock and why shouldn't it be - not every last mile logistics software supplier can even get in the front door with Amazon let alone achieve a partnership. Getswift has proven to have a good tech offering with a compelling ROI for customers and now they have the cash in the bank to give them the run way to achieve greatness for the transformative partnerships. Sure their MC is high, but the market has trouble understanding let alone valuing GSW and a lot of tech stocks. The early days can be a roller coaster.
One thing is for sure, GSW is on the cusp of turning from super speculative play to tech champion of the ASX. You either bet on them doing it, or you don't, simple. I've put my money where my mouth is, I've done far more research on GSW than I care to admit, I have some contacts in the logistics industry whose subtle comments reinforce my research. I expect bigger investors have performed even better DD. You won't see me dumping anything of the back of this manufactured farce. I will be right there on open, ready and waiting to scoop up any shares I can get from anyone who doesn't deserve them.
Come back in three years and judge me for backing GSW armchair warriors.
/microphone drop
