7% sounds very low considering they have DHL, DSV, Toll and most of the others.
The only big guys they don't "truly" provide for are K&N and DAMCO - I would be surprised to see K&N leave their proprietary systems and DAMCO uses Kewill which is garbage but they spent so much money implementing it I doubt they would switch.
I think the 7% number is mis-leading at best - I think they have 70pct or more of the addressable market - one guy working out of a closet is not a longterm market for Wisetech or any other vendor and I think that's where the rest of the numbers mostly are. There are niche markets of forwarders who address one tradelane and use a local supplier or their own custom developed systems - again these guys would see no advantage to moving to Wisetech.
Wisetech have a good system (the best global/cloud system available now) - but as I said before they have had a charmed life so far - they hit the market (software market) at the perfect time. They were the only cloud based MSSql solution available and everyone (just about) was looking for a solution - then after they decided to go public DHL decided to can the SAP solution and picked up Cargowise - huge boost.
Moving forward they will add users as the roll-outs continue but this will slow down and if they are losing customers as suggested in Australia (due to price and lack of service flexibility) they will become vulnerable to competition in the future. Software moves so quickly now and once you have a large customer base it becomes harder and more expensive to innovate. I like Wisetech, I think Richard is incredibly smart but I stand by the fact that the P/E is way above what it should be.
WTC Price at posting:
$26.37 Sentiment: Hold Disclosure: Not Held
(20min delay)