WiseTech shares suspended after profit allegations
By Gavin van Marle Oct 17 2019 / The Load Star
Australian freight software developer WiseTech Global suspended trading in its shares on the Australian Stock Exchange (ASX) after it was accused by financial analyst J Capital of overstating its profits. Considered to be part of series of attacks by short-sellers on listed Australian companies, the research firm alleged: “We have spent months analysing the company and concluded that WiseTech is manipulating its accounts to make growth and profit appear higher than they really are.” Since listing on the ASX as little as three years ago, WiseTech has made some 34 acquisitions around the world of freight software developers and now has a market capitalisation of A$9.5bn (US$6.48bn) and has forecasted 2019 profits of A$145-153m. The Loadstar understands that a response is likely to be issued in the next few days and the firm said trading in its shares would resume next week.