GSW 0.00% 29.0¢ getswift limited

There’s a new AFR article issued last night:...

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    There’s a new AFR article issued last night:
    http://www.copyright link/technolog...mpanies-operate-alex-waislitz-20180223-h0wk61

    Some of you may find it negative but in my view it’s positive or at least quite neutral.

    Here are some quotes from the article:

    Billionaire investor Alex Waislitz, who has held stock in GetSwift since its ASX float in December 2016, has called on GetSwift to make a series of board changes, including replacing Mr Hunter with a non-executive chairman, and to overhaul its governance processes and procedures, warning the company "has to step back in order to go forward".

    "I am still a firm believer in the GetSwift business model but I think the company has made some basic mistakes, including showing a lack of understanding of how Australian public companies operate and how they should be structured," Mr Waislitz told The Australian Financial Review.

    "I think they need to appoint an independent chairman [with Mr Hunter remaining a director and in an executive role] and board but still one that allows them to move in a non-bureacratic manner, because even in a fast moving company, you have to have confidence in your integrity, governance and so on."

    Mr Waislitz said he had been buying and selling GetSwift shares and the company had made some announcements which had got the market over-excited. "The best indicator to watch over the next six to 12 months will be revenue from customers because at the end of the day it's not so much which contracts have been won or lost but how much actual cash is being banked and how quickly that revenue is growing," he said.

    Mr Waislitz said he had reverse engineered calculations of the value of GetSwift contracts and from that "you may have a framework of revenue over the next 12-18 months of $20-$30 million."


    "Some tech companies are trading on 20-30 times revenue. If that promised revenue does come through for GetSwift then you could see them being valued again at $400-$800 million. If the revenue does not come through, they will be at risk because recent events mean the market will not be nearly as willing to give them the benefit of the doubt."

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    From this article and from other signs of other major shareholders recent activity, while they acknowledge the poor performance and governance of the current board, they do still see a potential positive future of this company and willing to continue holding their shares. To me this is a very positive thing not only because it boosts all shareholders confident level, but also they are pushing a real change. This is what we all want to see and what makes the company better and stronger.

    I’ve been unlucky enough to be involved in a number of garbage stocks (XTV, MNE, TB8 etc) but I can tell GSW is different from them, it’s just unfortunate the current board may be too immature to manage a public listing company, but the good thing is they are making an improvement now by getting the right people/company involved to enhance their management and also get some kick from substantial shareholders. Nothing is guaranteed but I hope this is going to the right direction now.
 
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