Xro - xero

[Toasty]

Its different this time and the market will never go down...the taxi guys at the rank outside told me this...

[CJ]

$2b+ company now with a p/e of -131. "gimme more debt!" they screamed. and Rod provided. and it was good. and they all drank milk and honey from gold cups.

I've pulled you up on this one before - XRO has no debt, it has enough cash in the bank to continue running losses for about 2 years. If it decides the current high growth/cashflow negative approach is still justified, it will raise more funds before it runs out (my guess is they wont get any debt until they are profitable).

While they are adopting a high risk strategy, they are doing it right and implementing to plan (so far).

[CJ]

sorry, imean loses! its just a fact, and its funny to watch the market operate backwards. I've stated I'm starting to belueve now as well

I was happy upto about P/S 25

[lastmoa]

I've pulled you up on this one before - XRO has no debt, it has enough cash in the bank to continue running losses for about 2 years. If it decides the current high growth/cashflow negative approach is still justified, it will raise more funds before it runs out (my guess is they wont get any debt until they are profitable).

While they are adopting a high risk strategy, they are doing it right and implementing to plan (so far).

Good post CJ. Whilst the are implementing to plan I am happy with their strategy and the money that is necessary to spend to become a leading global cloud-accounting solution. I also look at a large amount of the increased spend is for the hiring of developers/software tec's which translate to an ever improving product which translates to distancing themselves from competitors. Pedal to the metal.
Call me mad but I actually topped up at mid $15's. And will probably do so more as they deliver to plan.

[Schrodinger]

As I said before understand a SaaS business model before making silly comments.

These models are very common overseas. Read up on Google, Amazon etc and understand what Xero is trying to do and why they have chosen this structure.

[lastmoa]

http://www.stuff.co.nz/business/indu...-value-tops-2b

Excerpt - Chief executive Rod Drury's 18.5 per cent stake in Xero is now worth $377m. However, the stock would inevitably suffer tremendously were he to attempt to suddenly cash-in that holding given his own importance to the company he founded.

Dah. Almost laughable journalism.

[Toasty]

Jeez. $17.50 up now. Maybe no psychological barriers until $20?

[Everwood]

I was just watching Midday Finance News on TV1 and someone from Craig Investment Partners said it could be worth $40 per share in 12 months time.

[Toasty]

Sold out just under half about 3 months ago at $11. A quick check shows that I gave away a years after tax salary. I know you shouldn't focus on these things but....and I know it could easily go the other way but.....

[Dentie]

I wonder how many of the big managed funds are invested here ... and how many are kicking themselves.