Xro - xero

[Hawkeye]

Ill second that - can anyone shed light on what happens in the event of a NASDAQ listing??

I asked a similar question in post #2404, and got no reply, perhaps the people who read my comment didn't know, ill go ask my broker if we haven't had a reply by next week and post up his answer on here.

[Everwood]

A big congratulations needs to go Rod Drury who has been named EY Entrepreneur of the Year and will represent New Zealand in the EY Global Entrepreneur of the Year awards in Monaco next year.

http://www.stuff.co.nz/business/bett...epreneur-prize

[winner69]

With all this buying (from Asia) whose selling?

[Dentie]

You do realise what percentage of the NZX PEB and XRO make up right?

M... Given how quickly the "market cap" of XRO is changing on an intraday basis ... the % changes quicker than my fingers can hit the calculator buttons.

To me at least, the "market cap" is heading northwards due only to the rate of how quickly and how much traders (investors?) are prepared to swap shares for $$$. Its appears to be a competition to see who has the deeper pockets.

People appear to be caught up in the market fervour of this stock and the whirlpool of narrative and chatter being created by interested parties. IMO the current pricing is extremely far ahead of what the true value is and is obviously being based on what people perceive XRO's future trading results MIGHT be (what - in 10 years time??). In the cold light of day however, the financial fundamentals for me are just not there .... look at the trading account & balance sheet. Its all very well to be funded by equity, but at some point this baby is going to have to be funded by its own trading ability and the results of that is going to have to extend onto the balance sheet. I do not believe the excuse that they are foregoing profit for market share. When are they predicting dividends will start to be paid to their keen shareholders who are currently forking out $25 per share? Or are those shareholders just waiting for the price to go to $30 to get their ROI??

Having said all that - it is a great product and I certainly take my hat off to Rod etc. but the current pricing of $25 per share is sheer lunacy in my mind. Maybe when they have a balance sheet and trading results like eg Ryman it will justify the bigger SP, but they are currently losing $14m per annum on a turnover of only $39m. The only tangible asset is $200m cash - provided not through trading. I am just hoping this craziness doesn't start affecting the rest of the NZX. I repeat, if that happens, we are all in the poop!

Oooopppss... sorry Moosie - you did ask.

[blackcap]

all good dentie, I tend to agree apart from taking the NZX with it. the mCap is so far forward looking its incredible. it is past my buy back price so I am out for the foreseeable future, but traders being ijits could easily pump it even higher. trading money for the sake of trading money really, with a listed vehicle to do it. I think traders are also going nuts over XRO because the entire market over in Oz is currently risk-on for growth stocks, even if they aren't making money! it has all the hallmarks of the last stages of a bubble, but I'm not calling it that as you can only see bubbles in hindsight unfortunately!

rod named entrepreuner of the year, over $3B market cap, guaranteed uptrend everyday. looking a bit peaky eh???

good luck to those buying today, I have other stocks in mind with less risk and more upside potential. when a 27 year old trader tells you even he isn't touching the stock again, take note!

I would never have believed it.... Moosie the voice of reason. But I actually agree 100% with your post there Moosie. Yes XRO could easily go to $50 or whatever figure one wants to put on it. This is driven purely by hype. I have seen this sort of thing before and know it will blow up at some stage and when it does... ouch.
Dentie... that is scary. did not know their revenue was that low. I assumed turnover was in the range of $200-$400 to justify such huge premiums. This just makes the current price super ridiculous.

[Dentie]

"trading money for the sake of trading money really, with a listed vehicle to do it"

Perhaps they are ex-Forex traders moosie ... Dangerous when movements in a SP are quicker than movements in a Currency. Equities are a different animal though, which actually need to have a tangible backing to be ultimately successful. Perhaps it's just a case of Kiwi's transferring their NZ SP paper wealth into real paper USD (which I note have been dropping against the NZD). So, nothing wrong with transferring the great risk from NZ to the US!

Let's see where it goes today....

[Dentie]

I would never have believed it.... Moosie the voice of reason. But I actually agree 100% with your post there Moosie. Yes XRO could easily go to $50 or whatever figure one wants to put on it. This is driven purely by hype. I have seen this sort of thing before and know it will blow up at some stage and when it does... ouch.
Dentie... that is scary. did not know their revenue was that low. I assumed turnover was in the range of $200-$400 to justify such huge premiums. This just makes the current price super ridiculous.

Yes BC ... plenty of new customers (because its a good product) BUT seems to me if they want to start making a decent NPAT, they will need to increase the price of the product. Perhaps the plan..... focus on market share (because they have to - due to the low price of the product) and then use that market dominance to increase the prices. Sort of like Microsoft's model. For example, used to be able to buy the Microsoft Office as an application (ie - pay once) but now, for new MS Office it is all in the cloud and, of course, an annual subscription now applies ...

Mind you, it might also be once they have the product (Xero) in final form, they will ditch the expensive IT experts

[Toasty]

What is the likelihood of a takeover? They are clearly poised to do some damage to Intuit. Whats it worth to them to take them out of play? The value is probably starting to scream out of reach but say 4 billion for such a company is not that much in some respects...

[shoe54]

These are the most popular feature requests from their users

Regarding developers. Xero is built on top of Microsoft technologies. I believe this is a major impediment for attracting good talent. Very few "rockstar" developers are going to attracted when they run on a MS stack.

Its far too late now.. but I think their technology choices could be the one major thorn in their side.

I think Xero are doing a great job of recruiting top talent and are doing it aggressively to put in the final remaining core accounting features. They have been recruiting heavily the past year and will be into it the coming year as well. I don't think running MS technologies is as much of a factor for developers looking to join a company as other criteria such as company culture.

[gv1]

I was the same but after reading some infor , USA based. I started watching SP movements, I think there will be lot of interest from USA coming or already started. It might get to more crazy price because this stock has broken the barriers. Why people buy microsoft etc beause they have something special about them BUT you do the maths and invest wisely.