GetSwift Ltd (ASX: GSW)

GSW Details

Expanding geographic reach: GetSwift, which optimises delivery logistics at the global level, has witnessed a stock price rally of 286.7% this year to date (as at September 01, 2017) and has been up 8.6% on September 04, 2017. GSW had lately announced for a steep rise in revenue for the year ended June 2017. Meanwhile, the information technology company has completed tranche 2 of $24 million capital raising and has issued about 16,281,608 shares at $0.80 per share to raise $13.025 million.

Financial result (Source: Company reports)
 
Recently, the group signed an exclusive commercial multi-year agreement with Bareburger.com (fastest growing company in New York City). In July, the group inked an exclusive commercial multi-year agreement with Vietnammm.com, a subsidiary of Takeaway.com. The group now has a growing number of companies that use its software (including Red Rooster and Pizza Hut) and the recent expansion in Asia with Takeaway.com enhances the geographic reach. The group’s ability to have unrestricted access to many touchpoints that require delivery or order fulfillment functions regardless of industry and geographic placement is its greatest strength. GSW’s number of deliveries is thus growing at a tremendous pace (exceeding 250,000 deliveries per month as at July 2017). The stock of the company is trading at very high levels and some more upside potential is expected going forward. Given the present trading scenario, we put a “Hold” recommendation at the current price of $ 1.26


GSW Daily Chart (Source: Thomson Reuters)

Vocus Group Ltd (ASX: VOC)

VOC Details

Re-gaining momentum: Vocus shares surged about 5.3% on September 04, 2017 at the back of positive sentiments after falling about 35% in last one month (as at September 01, 2017). Recently, Greencape Capital increased their interests in the company from 8.14% to 9.18%. The market seems to be regaining confidence on the stock at the back of the recent result reported by the company, which depicted a decent year of growth with revenue rise of 119% over the prior corresponding period (pcp). The rise in revenue was driven by the contribution from Nextgen and the M2 merger. VOC’s underlying EBITDA was up 70% while underlying NPAT surged 50% over pcp. On the other hand, there was an impact from effective tax rate of 33.4%. The group also announced that its FY18 underlying EBITDA guidance is in the range of $370 million -$390 million on $1.9-2.0 billion revenue, and underlying NPAT is expected to be in the range $140-150 million. VOC has its net debt standing at around 2.6x underlying trailing EBITDA and is within the debt covenants. Australia Singapore Cable project is also said to be tracking ahead of schedule and is expected to be ready for service in Q1FY19. Moreover, the group’s top line growth is expected to find support from drivers such as relaunch of iPrimus while transformation of operations will help improve cost base. While we see value in the company, it might be prudent to wait and watch the company’s efforts in achieving its targets given the present competitive industry scenario. We give a “Hold” at the current price of $ 2.40


VOC Daily Chart (Source: Thomson Reuters)

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