Rayeiris Maduro Rondon @Rayeiris: "𝗪𝗵𝗮𝘁 𝘄𝗲 𝗲𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝘁𝗼 𝗯𝗲..."

Spain

𝗪𝗵𝗮𝘁 𝘄𝗲 𝗲𝘅𝗽𝗲𝗰𝘁𝗲𝗱 𝘁𝗼 𝗯𝗲 𝗶𝗻𝗰𝗿𝗲𝗱𝗶𝗯𝗹𝗲 𝗻𝗲𝘄𝘀 𝗳𝗼𝗿 𝗪𝗶𝘀𝗲'𝘀 𝗳𝘂𝘁𝘂𝗿𝗲 𝗶𝘀 𝗻𝗼𝘄 𝗯𝗮𝗰𝗸𝗳𝗶𝗿𝗶𝗻𝗴? I explain why not. Last May 11th, Wise went with their dual listing on NASDAQ with the ticker $WSE (Wise Group Plc), which they and we expected was a whole new economy able to trade and with extensive liquidity for the share, and now we can trade $WSE on eToro, saving opening taxes from the UK. However, the US market didn’t recognise Wise’s value and dropped the price of the UK shares by around -13% since May 11th. First, with now the exposure to the US environment, we can expect more volatility now linked into the two shares. Second, after watching Wise’s dual listing conference, we can get some conclusions, regarding the analyst who covered the conference, one of the factors people still do not comprehend is the reduction of the take rates, being last Q426 as low as 51bsp ($RELY (Remitly Global Inc) is now at 213bsp, and the World Bank says it costs on average 636 basis points of the amount sent). However, they keep their long term goal since their start, becoming an economy of scale and a major player in international transfers, the goal here is create a MOAT higher enough to make really hard for competitors to replicate their network with both, their ecosystem of licences (+80) all around the world, and being the cheapest provider, all of this, possible thanks to their cost savings mindset and discipline. I’ve been a client of Wise longer than I’ve been a shareholder, and I'm following the evolution of the company, their prices, their app and customer service improvement, while many people see only troubles, and an easy to replicate network. But after you understand what’s behind it, and when comparing it with competitor take rates, I consider that Wise is a misunderstood company by the market with high chances of becoming the number one provider globally for international transfers. With operating margins of +30% and ROCE 5YAVG of 31%, trading at 23x PE while competitors such as Remitly $RELY at 44x with worse margins and higher take rates, Wise has all the numbers to be the winner in this competition. That’s why Wise is my nº1 position, contrary to the market consensus, but this contrarian mindset has provided me with +29% annualised returns, and a +150% compounded for the last 4Y, facing through periods of uncertainty and extreme volatility. If you’re looking for an active strategy sustainable on time, copy my portfolio 💕 What do you think? wishful thinking or a company misunderstood by the market? Here we have Kristo Wise's CEO and largest shareholder, sharing during the conference call: youtu.be/qtA-as6BJQ0?si=l98r3hK5yKvZuN5y $WISE.L (Wise Ltd) $NSDQ100 $LSEG.L (London Stock Exchange)

Not investment advice. The author may have financial interests in the mentioned instruments.