Whispirs of a Stock Takeoff

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.

 

General Advice Warning
The information provided in this post is general information only. Unless otherwise stated the information is not designed for the purpose of providing personal, financial or investment advice. Any examples are presented for illustration purposes and past performance is not a reliable indicator of future performance. The information provided does not take into account your particular investment objectives, financial situation or investment needs.

Without limiting the generality of the above paragraph no person, persons or organisation should invest monies or take action on the reliance of the material contained in this post, but instead should satisfy themselves independently (whether by expert advice or otherwise) of the appropriateness of any such action. Unless otherwise stated the information presented is not a recommendation to invest in any investments, securities or financial products.

This service, like all other financial services, is subject to market forces and unpredictable events that may adversely affect its future performance. Whilst all care has been taken in compiling information in this post, and is provided in good faith, it is not to be relied upon as a substitute for professional advice. The views expressed are commentary only and the writer accepts no responsibility for the accuracy, completeness or timeliness of the information.

Super Equity Pty Ltd ACN 609 373 202 is a Corporate Authorised Representative 001238425 of ANDIKA Pty Ltd AFSL 297069. It should also be noted that references and hyperlinks to any third party information (including, but not limited to: news articles, blogs, reports, videos or other mediums of information) is not an endorsement of that party or product.