April 2019


Stock I'm watching this month:-

WTC - WiseTech Global Ltd

Sector: Technology
Market Cap:  7.1 Billion
Price/Earnings: 133
Price/Book: 19.2
Return On Equity: 11.6%
Return On Assets: 8.66%
Debt/Equity: 0.7%

Reasons to watch: WiseTech Global is a provider of software solutions to the logistics global industry. 38 of the top 50 global third party logistics provider and 25 of the top 25 global freight forwarders uses their service, across 130 countries worldwide. WiseTech have been expanding aggressively, including acquiring businesses globally and integrating them into their CargoWise One and CargoWise Nexus system. The company plans to become the one stop shop of logistics software provider. Once the company reaches critical mass (if it haven't already), it will be hard for other companies to take market share (think YouTube for videos, or Facebook for social networking, etc.). However, the current valuation is at nosebleed level and a lot of expectation is built into the share price. I'm happy to enter at this level  for a company with such quality and accumulate more if the share price drops.

Risk: If global trade slows down, this will impact the revenue generation for the company. The current share price is also very rich.

Sentiment: Buy
Disclosure: Held
Current Price: $22.52
My Strike Price: $22.52 (Discounted Cash Flow Intrinsic Value: $9.61)



Disclaimer: This does not constitute any financial advice or stock recommendations. As always, Do Your Own Research.

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