Xro - xero

[CJ]

A couple of big international buys this morning. $11.51 and $11.83.

Q - How do you know they are international?

Drongo - thanks for that. Can you provide the link as well?

Interesting that a price/sales of 20 appears to be validated as "normal". I'm not an expect in P/S, but it "felt right" for a growing company in the SaaS space.

Its from the continually updating NBR article: http://www.nbr.co.nz/xero-nasdaq

I first saw the 20 x P/S mentioned in relation to US tech companies last year some time and was the basis of my buy into Xero as, on that basis, it was undervalued (really!!) at the time. I think it was the based on a number of big $ value take overs that were occuring. Yammer being one $B buyout by Microsoft. There have been a number of buy outs of new, fast growing tech companies by the likes of Oracle, microsoft etc who, in theory, can take the technology of the company and apply/sell it to their huge existing customer bases. By using their exsinting customer bases, I assume that justifies the high multiples.

Drongo - that $55 needs 4.2m customers. That is a long way off and not even XRO is targeting that (at least not publically).

[Toasty]

Q - How do you know they are international?

They have a little international abbreviation next to them on my depth list

[Newman]

[The article at NBR is password protected for subscribers only.

http://www.nbr.co.nz/article/xero-sh...r--nk-p-137564

It also says that PieFunds is invested in Diligent instead.]

What is the MOTIVATION for a fund manager to say the share price of a particular company is over-valued or under-valued? Even the God would not know the exact value of a company.

[CJ]

They have a little international abbreviation next to them on my depth list

Interesting.

What is the MOTIVATION for a fund manager to say the share price of a particular company is over-valued or under-valued? Even the God would not know the exact value of a company.

My guess is they were asked so they answered. Fund managers get money because they make the right decisions. By putting out there for all to see, they can then be judged in the future as being right or wrong (risky but separates the strong from the weak). Whether you invest with Woodside or PieFunds in a couple of years time may well depend on which direction XRO takes, (or XRO in comparison to DIL). Plus to be managing millions of dollars of peoples money, you have to be strong in your convictions so why not disclose (once your position is taken - PieFunds newsletter is an interesting read)

[777]

CJ if you go to Direct Broking and click on "need some help" and then from there click on glossary you will find all the codes.

[Newman]

They have a little international abbreviation next to them on my depth list

What other abbreviations stand for? e.g., SP and OL. Thanks.

[Toasty]

What other abbreviations stand for? e.g., SP and OL. Thanks.

Sp is an off market trade and OL is a market trade too small for price setting.

I notice that there is an overseas code as well so not sure how thats different to international?

[CJ]

CJ if you go to Direct Broking and click on "need some help" and then from there click on glossary you will find all the codes.

I use ASB. Their info doesn't seem to be anywhere near as comprehesive as Direct.

[Toasty]

Its dropping away gradually. Moosie will be happy. Nice round $11.00. I feel vindicated about the decision to get a chunk out yesterday although nothing emphatic yet...

[777]

ex Telecom workers have hope with XRO.

http://www.nzherald.co.nz/business/n...ectid=10872891