Originally Posted by
Roger
Thanks. This is a momentum play, pure and simple and people have completly forgotten about fundamentals. I appreicate some big players backed the company very recently at $20, only time will tell if they're right and i was wrong at $13 and again since then but there is a serious amount of froth in this stock, surely any seasoned experienced investor remembers the tech bubble of 2000 / 2001 and can see it will will take many many years for this company to become even marginally profitable let alone earn a level of profit sufficient to justofy its present market capitalisation, which now exceeds Ryman, a company with arguably the most enviable growth record on the N.Z. market.
Its not hard to beat the MYOB system, easy pickings there. Clients fall into two distinct camps, those that will adopt new technology and those that are happy with the devil they know. Generally speaking people hate change. As stated above, there are many great systems out there and Xero don;t have the mortgage on all the good idea's nor is there really a good business moat around their systems and proceedures. You don't think other big software players will learn, adapt, change and improve their systems...
$4Billion market capitalisation for an accounting software company buring cash and making growing losses...really I thought I'd seen everything during the last tech bubble LOL Anyone old enough to remember when Goats were $3,000 a head ? I remember as a young accountant sitting down with a goat farming client and asking how he thought Goat prices at the time were justified...what is it that they produce that makes them worth $3,000 a head I asked...anyway sorry, I digress, .but because its cloud based services it must be right...fear of missing out is all that's left driving this astonishing rise...anyway I suppose I'd better do some real work.