Let me be very clear here in my intentions in taking an interest in GSW over the past week, as I stated in my initial post I do not post here to take joy in others misery but as a fan of history, investor psychology and markets. I also have what I consider to be reasonable market and life experience in the tech space going back ~20 years.
For full disclosure here, I am not short the stock, I know of only one fund that is short the stock, Newgate Capital due to Tim Hannan’s quotes in the media recently and I have no intention of ever owning this stock at any price.
The Exec Chair and CEO of GSW remind me very very much of the Ted Pretties, Chris Tylers and Stephen Moignards of the dot-com era for those of you with life experience and reasonable memories. For some of the youngsters here on this forum these names, quite fairly, may not resonate. Distressed Player
44 posts.
Date:
26/01/18
Time:
14:35:14
Post #: 30591733
I am perplexed at what may be considered GSW’s clear lack of governance in its verbiage used in its ASX releases to date, at best it may display an extreme naivety as to the rules of operating as an ASX listed company. At worst – well ??? I am also somewhat perplexed by what appears to be a fair degree of hubris by the GSW leadership team and a naivety in effectively dealing with the ASX when it raises concerns on disclosure matters.
Governance, trust and integrity lies at the heart of entering the public domain and accessing support from both mum and dad retail investors and sophisticated/institutional investors alike. It’s not about hype, capital raising and “cash boxes” as happened in the late 80’s for example which the ASX woke up to in the aftermath of the 1987 crash. The late 1990’s Dot-Con boom saw a few different issues, of which Tony Boyd’s initial Chanticleer column touched upon. Chanticleer’s initial piece opens with “One of Chanticleer's lasting regrets from the tech bubble of the late 1990s was a failure to show sufficient skepticism towards the outrageous promises made by several fast-growing companies.” http://www.copyright link/brand/chanticleer/getswifts-climb-has-echoes-of-dot-com-boom-20180119-h0l3b8#ixzz55YfzCm8x IMO GSW has been running at a million miles an hour since listing signing new deals at a rate that would even humble Solution 6’s “Two Bags” Chris Tyler with scant attention to detail. IMO this does not bode well for broader commercial aspects of having an appropriate attention to detail.
The board of GSW appears dominated by 2 strong executive directors who are deeply invested in GSW via a significant amount of Ordinary Shares, Performance Rights and Options (refer Appendix 3Y’s released to ASX on 22 August 2017 to get a feel for the quantum of Performance Rights issued here). I understand that these Performance Rights vest subject to ‘transaction volume milestones’ which while a little better than One-tel Jodee Rich’s absolute share price and % of market cap vesting conditions for those recalling that old gem, doesn’t necessarily align with creating value on a per share basis. For example, NA Williams may indeed contribute additional transactions but how profitable will they be ?
GSW’s only Independent director Ms Jamila Gordon (prior to the appointment of Nevash Pillay) resigned from GSW on 20 November 2017 some 10 days or so prior to the ASX announcement of the Amazon deal and prior to the $75m placement raise to FIL, IFM and other institutional and Section 708 investors. PreliminaryP raised this as a potential red flag in his post of 26 January.
11 posts.
Date:
26/01/18
Time:
02:44:25
Post #: 30585136
I do not hold a high degree of confidence that a number of corners haven’t been cut here at the board level of GSW. If this is the case this may extend to contacts/agreements, disclosures to ASX and aspects that pertain to Sect 674 of the Corps Act (2001).
I have a number of red flags here and these are not merely based on my nose, head and life experience but really just some basic 101 stuff like WHERE IS GSW’S LODGEMENT OF AN APPENDIX 3Z FOR THE RESIGNATION OF JAMILA GORDON ???
Does Jamila still hold her ~550K GSW Ordinary Shares that were converted from Class A and B Performance Rights on 25 October 2017 ?
I note with interest that Jamila Gordon is a listed as a Non-Executive Director of a debut small cap tech IPO today on ASX called Jayride (ASX:JAY) in its $1.5m IPO capital raise (yes that’s right they raised $1.5m under their IPO ! Jamila has all the skin in the game of 34,900 Ordinary Shares held in her family trust. These shares are valued at $17,450 at the $0.50 IPO issue price. She may have had the capacity to invest a little more if she has indeed taken some $$$ off the table in GSW.
At least JAY’s legal advisors correctly briefed her to lodge an Appendix 3X. I just hope that JAY doesn’t get caught up in running at a million miles an hour announcing deal after deal and making the same rookie disclosure errors as it appears GSW have.
Has GSW made other rookie errors in respect to the ASX listing rules and Sect 674 of the Corps Act (2001) ?
I have the utmost confidence that Stepanie So and her team at the ASX will ensure that all the relevant i’s are dotted and t’s crossed prior to GSW resuming trade. FIL who wrote out a cheque for $54m of the recent $75m capital raise will also.
I appreciate that some of GSW holders may be so livid at the AFR you may not want to click on the link so I copy an excerpt from this AFR piece below.
“Fidelity isn't commenting on GetSwift's travails at this stage.
While Fidelity sits on the GetSwift share register – alongside other well-regarded fund managers including IFM, Alex Waislitz's Thorney Investments and Regal Funds Management – the timing of its investment means it will suffer the biggest reputational hit should the situation at GetSwift get worse. It was the last in, and had therefore had more data to look at than any other major investor.
With this in mind, Fidelity and other investors may also be asking its lawyers whether it has a reasonable prospect of clawing back the cash invested in the December capital raising. This would be unusual, but our legal sources tell us it is far from impossible.”
DYOR
GSW Price at posting:
$2.92 Sentiment: None Disclosure: Not Held
