Thanks brother for the kind sentiments. I noticed the guy is moderated so obviously he will learn not to waste our time. I looked at the article in the AFR Weekend today, which I posted last night on the thread. Richard White is bubbling with Confidence, when he says " His blunt message to the shareholders is get ready for growth " and " when he said I am not going to follow the Share price Everyday, the SP is going to follow me ". Don't you guys think that's one hell of a strong positive confidant CEO talking as he achieved many runs on board to date from his Garage. He is so cocky about the growth of WTC, which indicates I reckon some more major announcements must be in the pipeline after his DHL partnership announced days before the lodgement. Apparently DHL wasted US$300 MIL or so last year after written down that amount ( I did a bit of digging around to see what's the big deal about DHL partnership, I know DHL is the world's top Logistics Business by large ) after attempting to come up with their own Integrated Software Platform and failed in its attempt. That's why RW is saying in that AFR article.
"HR said big global logistics companies were increasingly relying on software providers such as WiseTech, rather than building their own operating systems. WiseTech's customers include large forwarding groups, including Australia Post, Toll, Mainfreight and DHL. It's fairly proven now that big logistics companies, despite being wealthy and capable of investment, don't have the same genetics as a software innovator," he said.
So these world's top Logistics Guys don't want to waste 100's of Millions of Dollars by attempting to create their own software rather choose the best one available like WiseTech as 19 of the top 25 use WiseTech exclusively and the word is after the DHL deal the others would follow suit.Their Revenue growth is $79 Mil in 2015 $106 mil to 2016 and $ 135 Mil in 2017. Its not rocket science that after the DHL deal and knowing their customer retention rate is in the very high 90's these figures would be exceeded very significantly particularly in 2017.
There won't be any debt after listing I believe as the small remaining debt would be repaid. So No debt, Very high Growth through acquisitions and Organically and extremely very high customer retention, highly satisfied clients and cash to acquire struggling logistics businesses and integrating them into his Software Platform cheaply : No wonder the man is bursting with confidence and sounds almost cocky! After my research I did find that Cargowise 1 software is the rising star in its field and like the JLM's mentioned in their Research, " it has all the potential to be the Winner takes it all scenario " given by the JLM's. No wonder the demand is what it has been taking into consideration all the above points. And believe it or not this is the biggest Tech Float this year worldwide for a while, I believe.
Having said all that in my summary I have to say this. Market is always 100% right in choosing its price. So should know what it says at 12 pm. We can only guess based on fundamentals and what is available to us.Remember what happened with Hestia Health in which a lot of us participated : it has all the crappy instos etc on the top 20 by UBS ( unlike WTC, it has long only world class instos as RW said in the article in the AFR ) and tanked big time at open but flew like hell after that and is flying now. Then we have the likes of MYOB and LINK etc which I didn't participate thinking they are priced way higher ( even more than WTC compared to its peers, I reckon RW could have easily gone $3.65 if he wanted and still be below the high end of the range ) and many of us didn't apply, but my great mate Katavi did and gained from the 12% or so stag . That's why I trust his analysis is way better than any other analyst out there. So we missed out on MYOB and LINK stags. Then the likes of FLN and SLC and MP1 which went to the stratosphere at open. We all know WTC won't be an FLN or SLC or MP1. I believe based on demand, the type of long instos it had, the type of retail demand it has and being the rising star and the proven leader in its field, with no debt after listing I believe, with very high growth, with expected $27 mil NPAT for 2017 ( I reckon they will beat this by a mile ) and compared to Aconex it is around half the PE, knowing the likes of Xero and MYOB don't even have a Positive PE atm, based on all these Technicals and Facts, it should Open like Link and MYOB I believe. having said that I conclude by saying " Market will decide on Monday at 12 PM what WTC is worth and she is always right, never ever wrong. " Cheers.
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