Not seen anything on the equivalent dollars to ECG from the woolworths deal. I think the share price increase is more from increased confidence in the business, and also publicity from the deal which has resulted in more awareness of ECG and its current performance and potential. As for logistics - ECG works closely with other Cargo Services companies - entire global organisation employs over 8,000 full time employees, of which ECG has 150. Regardless of where the products are made, transport is just one of a multitude of the logistics - i.e. only the cost of transport would be saved (warehousing, picking, etc still needs to happen) - so Woolworths will be hanging its reputation and startup in China on the back of eCargo. Having such a huge dependency on Ecargo will translate to significant $ transaction.
ECG Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
