Xro - xero

[arc]

I think you also need to consider the banks fees for doing the swap, in addition to any brokers fees, and current exchange rate. Do you operate an online multi currency account through your broker ?, you may consider selling and leaving the proceeds in AU for some time...

[moka]

https://www.stuff.co.nz/business/ind...gation-decides

'Xero to see here', Financial Markets Authority investigation decides
The Financial Markets Authority has found no evidence of wrongdoing after spending more than two years investigating suspicious trading in Xero shares by overseas investors.

[mikeybycrikey]

Some of the feedback from investors
https://simplywall.st/news/2017/10/30/when-will-xero-limited-nzsexro-need-to-raise-more-money/

When Will Xero Limited (NZSE:XRO) Need To Raise More Money?
Mercedes Harden October 30, 2017
"things will have to start changing, since its current operation is unsustainable."

This article doesn’t even make sense to me.

It talks about opex going up by 44% but neglects to mention that revenue went up by 44%. Xero has been trying to keep a lid on expenses to opex (as far as I can tell) went up by a lot less than 44%.

The article was published a week before the HY results came out and predicts impending doom but the reality is anything but.

I totally believe the story that they can be cash flow positive without raising further funds and that the $100m is a useful buffer for whatever comes in the future. Although maybe that is a little naive and trusting of me.

[Muppett]

I will take this as a genuine question , Muppet please consider the following ....markets do move.
If you purchase 1000 shares @ NZ $ 33.00 fine , what if they are NZ $ 30.00 in Feb 18 ?
Also what if the shares are still NZ $ 33.00 however the exchange rate has moved to .9500, that gives you the equivalent of NZ$ 31,589

Thanks for the reply. Yes it was a genuine question.
The market in NZ does not like the move to ASX, as evidenced by the SP since the announcement. It seems to me that the market expects the exchange to rise, hence the drop in the SP. Otherwise if expectations were that the exchange rate remained about the same or dropped, it would be a positive move to the ASX for repatriating money back to NZ, certainly for retail investors anyway.

[stoploss]

Thanks for the reply. Yes it was a genuine question.
The market in NZ does not like the move to ASX, as evidenced by the SP since the announcement. It seems to me that the market expects the exchange to rise, hence the drop in the SP. Otherwise if expectations were that the exchange rate remained about the same or dropped, it would be a positive move to the ASX for repatriating money back to NZ, certainly for retail investors anyway.

If anyone could accurately pick the exchange rate they would not be on here , long retired in the Bahamas ..... What will drive the share price is Profits or hopes of a profit and growth in the company in this case imo.
Forget about where it is listed ...If you want to reference this check out the TIL thread .Plenty of clowns thought just because it was getting a dual listing in Australia that the s/p would go up ....... Or because it could more easily be compared to BWX on the same exchange then it would close the gap to BWX ..... Share price went down and the gap got wider ........

[RGR367]

http://www.nzherald.co.nz/business/n...ectid=11942805

And on this, Brian Gaynor said: "Two of its biggest problems are the huge amount of off-market trading and the dominance of one broker. The NZX needs to address these issues immediately if it wishes to boost the integrity and long-term viability of the New Zealand sharemarket" but did not identify the broker. Would anyone know who that broker be?

[blackcap]

Does anyone know what’s wrong with this XRO example:
Ignoring brokerage and fees … assume the SP and Ex Rate figures which are correct at the time of posting
Buy 1,000 @ NZ$33.00 total cost = $33,000
Hold shares till 31 January 2018, when the 1,000 shares get transferred to the ASX.
Sell 1,000 @ A$30.00 in Feb 2018 with exchange rate NZDAUD .9015 à Total cost = $33,278
Profit = NZ$278

Why can you not take advantage of that now instead of having to wait a year? So you buy on the NZX and sell on the ASX instantaneously? for those amounts the $278 "profit" (brokerage to come off that) is just change and this is just a timing issue. There is no arbitrage opportunity here. It is irrelevant if XRO is on the ASX or the NZX or both.

[Muppett]

Why can you not take advantage of that now instead of having to wait a year? So you buy on the NZX and sell on the ASX instantaneously? for those amounts the $278 "profit" (brokerage to come off that) is just change and this is just a timing issue. There is no arbitrage opportunity here. It is irrelevant if XRO is on the ASX or the NZX or both.

Because the shares will be transferred over to the ASX with no exchange rate "costs".
It seems to me that if the SP gets driven down before 31 January and then due to more liquidity, institutional buying etc... once solely on the ASX, the SP may go north. Then profitable to bring home the money.

[blackcap]

Because the shares will be transferred over to the ASX with no exchange rate "costs".
It seems to me that if the SP gets driven down before 31 January and then due to more liquidity, institutional buying etc... once solely on the ASX, the SP may go north. Then profitable to bring home the money.

I still do not get what you are trying to get at? Where is the "profit"? If you are gambling that the shares will be worth more with only an ASX listing, then sure, but that is not certain. Shares that have moved their listing to the ASX have also gone down in the past.
There is no cost to transferring your shares to an ASX listing if you want to do that now. Contact your broker or get some transfer forms and they can shunt your NZX shares to the ASX. You do not have to wait till Jan 31 to do this. Many an arbitrageur on dual listed stocks has used and continues to use this shunting process to get shares on the desired exchange.

[bull....]

dont think your be making much profit at the moment last week news killed the rally i reckon heading south for the foreseeable future support 26 looks like