Would an internationally diversified company with total revenue growing at an annualised rate of 21% that has no direct competition, and its stock is trading at a 40% discount to its 5 year high ($4.72), sound like a no-brainer investment decision?
For the rational investor, it appears so.
Whispir Ltd (WSP) sells software to large organisations to remove communication inefficiencies. For example, once you have ordered an item with a company that uses Australia Post for delivery, Whispir’s software will update you on the details of your order, such as “your order is on its way”.
What is the future outlook for Whispir?
Prior to COVID-19, technology had been an important part of day-to-day operations of many workplaces. Following the spread of the virus around the globe digital solutions have become essential in ensuring that businesses can continue to operate. With this in mind, the Whispir prospects are promising.
If Whispir’s revenue growth remains constant, which is likely due the strength of its customer base (for example, Telstra and Westpac) and the fact that 95% of its revenue is recurring and diversified amongst three key markets (Operational messaging, API messaging (enabling different software to talk to each other) and Marketing messages), the company is expected to breakeven in Financial Year 2022. This event will be music to the ears of its shareholders, where the company’s share price will no doubt be positively affected.
Given Whispir’s current financial position and its resulting share price of $2.84, the inclusion of this stock in your portfolio seems inevitable given its upside potential.
Conclusion
The name of the game is to purchase low, with Whispir representing a unique investment opportunity to purchase a company that is likely to be profitable in the near future.
