WTC -15.88%: Whacked today after ASIC and the AFP executed a raid on the company’s Sydney office, seeking information regarding alleged share trading activity by Founder and Chairman Richard White and several employees between late 2024 and early 2025.
While no charges have been laid, nor are there any allegations against the company itself — WiseTech says it is fully cooperating. Still, the optics aren’t great.
The selloff, down as much as 17% to ~$70, reinforces the importance of Richard White. He founded it 30+ years ago, still owns >30% of the register, and recent board upheaval only heightened that key-person dependency.
Apparently, White sought legal opinion before selling within a blackout period at a time when he was not on the board, which is clearly a grey area and brings back recent personal issues that have impacted the stock in recent times.
From a fundamental perspective, nothing has changed in the underlying growth story or structural tailwinds in global logistics automation. But the market hates uncertainty — particularly governance risk in a premium-valued tech name.
We hold the stock, unfortunately added to it yesterday, probably at the time the police were at WTC HQ! Not great – but it doesn’t change our medium term thesis on the stock.
MM remains long WTC
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