Xro - xero

[tzbang]

Is it just me or do the charts suggest XRO is very oversold at the moment?

[Santiago]

?...Interesting how the XRO sp reacted so strongly to the NASDAQ fall but has not bounced back as strongly as the other tech stocks. I suspect the negative analyst reports of the last few weeks are still dragging on sentiment. Hopefully it has stabilized though and we wont see further large falls.

Which is indeed interesting, in my view, as it is the one NZ tech stock that's actually selling a tangible service to real customers, growing at 80%+, and by all indications executing to plan. I'm not saying that WYN, PEB, DIL and SLI aren't delivering results, but you have to say that XRO is the most established and promising of them at this stage. I suppose its valuation ran too far ahead of itself in the past few months. But I reckon whoever gets in now will do well in the medium/long term (Disc.- I topped up again).

[LegendOfRiot]

Which is indeed interesting, in my view, as it is the one NZ tech stock that's actually selling a tangible service to real customers, growing at 80%+, and by all indications executing to plan. I'm not saying that WYN, PEB, DIL and SLI aren't delivering results, but you have to say that XRO is the most established and promising of them at this stage. I suppose its valuation ran too far ahead of itself in the past few months. But I reckon whoever gets in now will do well in the medium/long term (Disc.- I topped up again).

I think it's exactly for this reason that XRO seems to sometimes trade like the NASDAQ and sometimes it seems completely independent i.e. when good news occurs.

[Santiago]

It's a "put your money where your mouth is" moment, I reckon. Unfortunately my money isn't as big as my mouth...

[Bilbo]

I think it's exactly for this reason that XRO seems to sometimes trade like the NASDAQ and sometimes it seems completely independent i.e. when good news occurs.

What concerns me is what will happen if the NASDAQ suffers further big falls in the coming weeks. Will XRO continue to fall in line with or in excess of falls on the NASDAQ even though it has not bounced to the same extent as other shares?

[tzbang]

What are you fellows even talking about?

[tzbang]

oh right?.. weird.

So anyway.. XRO.. it's not rallying like it ought to..

[Shore]

Volume is down and price doesn't seem to be moving.

I think there are buyers out there, but I imagine they're all waiting to see if it will drop further before stepping in. If NASDAQ and Xero's contemporaries further gains overnight, it might provide enough of a spark.

[Bobcat.]

I'm still waiting for a large spike down as the seller(s) unload the last of their order(s). Most bounce-backs occur after such a final plunge. Although so far today we do have a higher low (2820 c/w 2800), I don't think that we are quite there yet.

The next time the NASDAQ closes lower, I'll be putting in an order 5% below market price anticipating that final plunge. Currently, 2700 is my entry point. What entry point do others have, and what's your rationale?

BC

[Lorne Ranger]

tbh, I think the market has now awoken to just how ridiculous previous SP levels really were.

I'd expect this to consolidate around the late 20s/early 30s until further confirmation that growth is still on track (and that the company may actually even earn a profit in future)

I dont think growth is in question to be fair, you can always hang out for the next step sure, but so far so good with growth. I know some are commenting on the figures for the "all important" US, but they showed decent growth, but yes early days there.

I think the delay in the SP bounce is just that this share has further to fall than most. The NASDAQ has finished higher last few sessions, but only due to late rallys, it still looked volatile (making for some surprisingly thrilling viewing!). I suspect people are looking to get back in to Xero but just waiting for the NASDAQ to be more convincing in its sure-footedness.

As to comments that the "sentiment has changed", this is probably true, if generalised, but sentiment is always changing, and given the wider context of nothing dire on the immediate horizon for global markets, I doubt the sentiment will not turn back to eagerness. Seems like just a good shake of the tree to me.

Disc: Holding but have sold and re-bought a couple of times on way down.