J Capital’s new hit WiseTech shares

WiseTech Global’s short-seller nemesis J Capital has returned with another broadside aimed at the logistics software maker.

WiseTech chief executive Richard White Picture: Britta Campion

WiseTech Global’s short-seller nemesis J Capital has returned with another broadside aimed at the logistics software maker, saying that the tech unicorn is using the coronavirus epidemic as an excuse to hide fundamental weaknesses with the business.

The latest report from J Capital weighed on WiseTech’s stock, which had been on a downward trajectory since it issued an earnings downgrade last week.

The revised guidance resulted in more than $2bn being wiped off WiseTech’s market value last week and its shares lost more ground on the back of the J Capital report, ending Thursday’s session 3.6 per cent weaker to hit a 12-month low of $16.93.

WiseTech’s shares were priced at $3.35 at its IPO in 2016 and peaked at $38.80 last year, valuing the company at more than $9bn. The ongoing market carnage, coupled with fallout from the earnings downgrade, has seen its market cap slide to $5.4bn.

While founder and CEO Richard White said the impact of the coronavirus on global supply chains was likely to be short-lived, the downgrade has revived fears about WiseTech’s valuation.

But J Capital said on Thursday WiseTech was using COVID-19 as a smokescreen to its 2020 first-half report that covered issues before anyone in Wuhan was diagnosed with the avirus.