Something doesn't smell right, page-15

Am an industry insider who has used Wisetech and its earlier models for over 15 years.

Wisetech have a huge issue with anything "live" and or "AI". The system is a glorified reporting system, which they tried to re-brand into a SaaS with a progressive tech. Investors bought it, Wisetech's clients were expected to pay for it.

The acquisitions in many instances are Wisetech's way of trying to catch up to the industry players that are able to be more modern. You will see in the New Year many more offerings that will change the view of Wisetech. Google Flexport and let me know what you think.

Stock is not going to rock bottom as there is a market, but I would offer if you could see what is on offer and what other industry Freight Tech players are doing to compare, your view as an investor or not would change.

Not many other businesses in this area also go public, that is unless they have to. The current market conditions are not favourable. Freight Forwarders turn over big cash flow for minimal profit. Industry average 6-8% GP. Using Wisetech is not the cheapest option and they want to charge more for the newer version.

The shipping and freight market is currently high on supply (Capacity) and light on demand (Freight Bookings) meaning a flat 2020. Also add into the mix the changes to IMO2020 for shipping and Wisetech may have a bumpy 2020 just on core clients and their own headaches.

Recent Goldman Sachs Report is very helpful in giving analysis.


GS Logistics 80 charts Dec. 2019.pdf