Local technology unicorn WiseTech Global has hit back against another short-seller attack which has cast doubts on whether the host of acquisitions made by the $10 billion logistics software maker has added any real value to the company.
Analysis by short seller Viceroy Research obtained by The Age and The Sydney Morning Herald reveals of the 37listed acquisitions made by WiseTech over the past four years, many are from distressed sales or bankrupt companies with revenues falling post-acquisition.
Viceroy claims WiseTech created “fake value” through dozens of non-material acquisitions, effectively buying revenue at a lower multiple than what it trades at in a strategy known as a “roll-up”. Read more…..
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CNBC’s Jim Cramer said the market rally taking place this week is partly due to short sellers who have been squeezed. The “Mad Money” host said hedge funds were not ready for Friday’s sell off.