WiseTech Ltd is one of Australia’s leading technology company and developer of cloud-based software solutions to the logistics industries around the world. Yesterday, WiseTech ltd’s released the results of their AGM and an announcement that WiseTech ltd is on track to deliver their Financial Year 2020 guidance.
(Source Sydney Morning Herald)
Result of WiseTech Ltd’s (ASX: WTC) AGM
The Chairman for WiseTech, Mr. A. Harrison, asserted that: "our business continued to experience strong growth with revenues up 57% to A$348.3M" and echoed previous assurances that "These results were fuelled by significant organic growth in revenues across our global business."
Similarly, the CEO Mr. R. White, confirmed the company’s strong momentum and growth from the power of their CargoWise One logistic platform, low customer attrition and investment into global innovation and expansion. White highlighting a FY20 revenue of A$440M - A$460M, representing a revenue growth of 25% - 32% and EBITDA of A$145M – A$153M, representing a growth of 34% - 42%.
J Capital’s Twitter Attacks
Following WiseTech ltd’s recent announcements and outlook, the short seller, J Capital launched another series of attacks against the tech company. This is the second round of attacks from the short seller, lowering the value of WiseTech’s share price. Last month in October WiseTech suffered a similar attack. J Capital made big headlines with their research paper, describing WiseTech’s earnings as ‘highly inflated’ and ‘inorganic’. This resulted in WiseTech heading into a trading halt and issuing a response to mitigate any further drop to their share price due to a misinformed market report.
More recently, J Capital has launched scathing attacks on twitter against WiseTech over the company’s financial reporting and integrity. J Capital’s tweets and research stressed the inauthenticity of WiseTech’s accounts and scepticism over their audit practices with the group’s acquired subsidiaries.
Following WiseTech’s AGM and twitter storm from J Capital, WiseTech’s share price have tanked. As of 2:00PM AEST 20/11/19, WiseTech ltd’s share price (ASX: WTC) have decreased to A$26. Compared to their closing value on the 18th of November A$28.87, right before J Capital took onto twitter. This represents an 11% decrease in share price. Previously at 15th October, before J Capital initially issued their first findings, WiseTech’s share price were valued at $A34.37, this indicates that WiseTech’s share price has fallen by 32%.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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