Xro - xero

[blobbles]

I would just like to point out to people that if XRO is making 70 million this year, which would be fabulous, and magically this cost them nothing to give their services (i.e. they paid their workers nothing and everyone gave them servers and everything for free), they would have EPS of 55c.

Based on EPS of 55c, current P/E is 62. And on the $45 valuation from that amazing analyst (insane!), it would be 82.

This for a company that is growing at 80-100%? And isn't expecting earnings, at all, until probably 2018?

Naaaahhhh, not a bubble, sweet as!

[Lost in space]

Actually, as per my previous post, had a trailing 300 cent stop loss so kicked out at $38 with a very very nice profit. New car? Nah now thats a waste of money. Will play this all over again for the umpteenth time.

[CJ]

Based on EPS of 55c, current P/E is 62. And on the $45 valuation from that amazing analyst (insane!), it would be 82.

P/R ratio are common for start ups like this. I think Facebook trades of a P/R of 10 and Twitter about 15. 20 is not unheard of. P/R of 62 is pretty high though, especially since it is 7 years old, though in the US, I guess it is less than 2 years old.

[Beagle]

I know some are disinclined to bother clicking on links so I've cut and pasted this article kindly provided by Winner69 above.
If that doesn't give some new investors cause to pause and reflect then there is no helping those with an almost religious fervour towards Xero. Blinded by their paper profits to date or are we just talking about good old fashioned Gordon Geeko style greed...

The 18 per cent rise in the share price of accounting software company Xero on Wednesday makes it a bigger company than tech favourite SEEK and delivered a windfall gain of $96 million to Rich 200 member Craig Winkler.

Xero has enjoyed phenomenal growth on the ASX since its debut on November 8, 2012. In the year since, its share price has risen by 660 per cent to close at $34.20 on November 6. This lifts its market capitalisation to $4.36 billion.

The growth has led to investment bank Credit Suisse dubbing Xero as the “Apple of accounting”.

In early trading on Thursday, Xero is 5.9 per cent higher at $36.20.

Xero sells accounting software and uses cloud computing technology to keep prices low.

The biggest beneficiary of Xero’s share price growth is its chief executive Rod Drury. The New Zealander’s shares were worth $743 million at the close of trading on November 6.

Melbourne-based Winkler made his first fortune from another accounting software company, MYOB. He exited the company in 2008 when he sold his 28 per cent stake for about $125 million.

A year later, Winkler spent about $15 million on his Xero stock. He remains a non-executive director of the New Zealand based company, of which he owns 16.4 per cent. As of yesterday, Winkler’s stake was worth $632 million.

More than money
Most of Winkler’s Xero shares are held in a charitable trust. An active Christian, Winkler is a long-time supporter of indigenous causes. Little is known about Winkler’s plans for the money but he appears to be on the verge of making one of the biggest philanthropic gifts in history.

That is if Xero shares can maintain their momentum. Investors fondness for Xero stock is largely based on speculation. In its full year report for the year to March 2013, Xero reported a $NZ14.4 million ($12.7 million) loss on revenue of $NZ39 million ($34.3 million).

This means that its market capitalisation is a staggering 127 times larger than its most recent full year revenue result.

Investors’ confidence about the company’s ability to grow was buoyed on October 3 when Xero informed the market that it was set to exceed NZ$30 million ($26.4 million) in operating revenue for the first half of the 2014 financial year.

Among other achievements, the 18 per cent surge on November 6 made Xero larger than employment classified business SEEK.

SEEK, which is worth $4.34 billion, is widely regarded as one of the best technology companies ever to come out of Australia.

In contrast to Xero, SEEK reported revenue of $620.2 million last year and a $141.1 million profit.

Companies smaller than Xero by market cap*
•SEEK, $4.34 billion
•Toll Holdings, $4.11 billion
•Bank of Queensland, $3.90 billion
•Harvey Norman, $3.44 billion
•Qantas Airways, $2.72 billion
•Seven Group Holdings, $2.44 billion

[Lost in space]

what a swing lol , i may sell my old car to buy another 100 shares im sure next week ill be able to buy a newer one

Actually, as per my previous post, had a trailing 300 cent stop loss so kicked out at $38 with a very very nice profit. New car? Nah now thats a waste of money. Will play this all over again for the umpteenth time.

[winner69]

Thay story I linked about Craigs company said This means that its market capitalisation is a staggering 127 times larger than its most recent full year revenue result

[winner69]

Thay story I linked about Craigs company said This means that its market capitalisation is a staggering 127 times larger than its most recent full year revenue result

So the ratio falls pretty quick eh as revenues double every year

[Lorne Ranger]

I would just like to point out to people that if XRO is making 70 million this year, which would be fabulous, and magically this cost them nothing to give their services (i.e. they paid their workers nothing and everyone gave them servers and everything for free), they would have EPS of 55c.

Based on EPS of 55c, current P/E is 62. And on the $45 valuation from that amazing analyst (insane!), it would be 82.

This for a company that is growing at 80-100%? And isn't expecting earnings, at all, until probably 2018?

Naaaahhhh, not a bubble, sweet as!

I note that accusations of it being a bubble are generally made by those I assume dont have shares. Oh dear.

Time will tell. Well, every share collapses at some stage and that will be the "proof" of bubbledom.... then when it recovers.....

Even today you can choose to focus on the reduction in shareprice by days end, or the fact that it reached a record high, take your pick.

[CJ]

Nice work with the stop. Its gone even lower in Australia (under NZD$33 now) so expect it to open even lower tomorrow. More stops will be hit??? Anyone who knows what they are talking about have a view on tomorrow?

[Beagle]

^^Closed in Aussie at $32.34 using an interbank closing exchange rate of 0.8824.

Even today you can choose to focus on the reduction in shareprice by days end, or the fact that it reached a record high, take your pick.

Went out to get four new tyres for wife's car and when I left at lunchtime yesterday I'd made enough paper profit on my SUM shares to pay for the tyres ten times over. By end of day I'd only paid for them, (on paper), twice over...a timely reminder that the closing price for the day or the price you sold them at are the only two relevant figures.