Amazon.com, Inc. (NASDAQ:AMZN) has signed a new deal with Australian logistics company GETSWIFT LTD (OTCMKTS:GSWTF).
It was released by Reuters on December 1, 2017 that a new agreement with Amazon.com and Yum Brands Inc had been signed, which made market participants push up the share price 84 percent.
We appreciate the company, as it is delivering outstanding returns. It is a small hidden gem that not many people will get to know. Also, it is showing impressive operating performance.
We believe that it is a company that many people will talk about in the future, but the market participants need to assess now.
Have a look at the share price appreciation in the following stock chart before we provide more details. The price spiked in November 2017 as a result of the new agreements. From trading close to $1.5, the share price spiked up to hit the $4.6 share price level, which is the highest level ever.
We also need to talk about the trading volume registered, which shows the market interest in the company. More than 0.4 million shares changed hand in December.
Have a look at it:
Business And Traction
GetSwift is a tech company with offices in New York, USA, as well as Melbourne and Sydney, Australia. It provides a Software as a Service (SaaS) platform that helps businesses “optimise, dispatch, routing, visibility and tracking of their deliveries to end customers.”
The solution is sold as an affordable software intended to generate efficiencies, cost savings, and consistency in deliveries. The parent company of the group is GetSwift Limited, an Australian company, which owns several subsidiaries:
- Get Swift Logistics Pty Ltd.
- Get Swift, Inc.
- Liquorun Pty Ltd.
- Distributed Logistics Pty Ltd.
We believe that the most interesting thing that market participants look for in such type of SaaS platforms is the amount of users and the growth of platforms. We believe that those two features are very interesting in this company.
Have a look at the following slide from GetSwift. Please note the growth of transactions that the software has done so far besides the incredible growth. We believe that the company should be offering a very unique software:
Additionally, something quite important is who is willing to work with the company. Usually, finding big groups giving credibility to growing company means that there are lot of chances that the business will be a success.
Have a look at the following slide regarding the clients working with GSWTF and form your own opinion:
The most interesting was released on December 1, 2017 by Reuters. Before this date, the announcements to the market had been little, therefore many people are discovering the company now. It helps explain the share price spike.
In the press release, it was noted that the Australian software startup signed deals with Amazon.com Inc. and Yum! Brands Inc. The company communicated to Reuters in a short statement that it had “signed a global agreement with Amazon”. According to Reuters, very little details were given.
But, there is more.
In another separate communication, the company informed that it had signed a “multi-year partnership” with Yum, which is, for those who don’t know, operator of KFC, Taco Bell and Pizza Hut fast food restaurants.
The deals seemed to be quite significant, as the general tone of Bane Hunter, GetSwift Executive Chairman, was very positive:
“Extremely pleased to be partnering with one of what is indisputably a global icon”. Source
Additionally, other market participants showed their excitement. Ben McCallum, portfolio manager of Regal Funds Management Pty Ltd, which holds 9.8 stake in the company, said the following:
“They will ultimately become one of the great Australian technology stories,” Source
Financial Situation and Shareholders
The story interested us very much. We decided to research more deeply and found that the financial situation is fabulous.
The company has cash in hand and positive net asset per share. We believe that these amount of assets will help the company develop this business venture without having to care much about financing. We appreciate this fact:
Additionally, we appreciate the type of shareholders that are inside the firm. Three of them are ex-football players and others are well-known market participants:
- MR JOEL MACDONALD
- MR BANE HUNTER
- MR JAMES STRAUSS
- MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LTD
- CITICORP NOMINEES PTY LIMITED
- ARTESIAN BC PTY LTD
- HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
Currently trading with a market cap of AUD$719 million, GSWTF is an exciting story among small caps. With 166 million shares outstanding and a float of only 57 million, we believe that this company will offer quite a bit of volatility. We need to note this fact, as many of our readers enjoy volatility plays in the OTC universe.
To sum up, there seems to be a lot to like in this company, so be sure to follow the next steps and most importantly its relationship with Amazon and Yum Brands.
We will be updating our subscribers as soon as we know more. For the latest updates on GSWTF, sign up below!
Image courtesy of Michael McDonough via Flickr
Disclosure: We have no position in GSWTF and have not been compensated for this article.