Xro - xero

[Hawkeye]

When their newly recruited american representative walked out of his position after only a few months saying xro would not make it in the USA as it didn't understand the local competition and how rapidly they have reacted/adapted... things have gone pear shaped.

I didn't read the article that said that, please post

[Goldstein]

I didn't read the article that said that, please post

Yes, I's be interested too. I remember at the time I thought the announcement was odd. I did a little digging but came up short.

[dingoNZ]

NFLX shares down 19% on the day. Was down over 25% in pre-market trading, so gained a little ground through the day.

Market expectation was +3.7 million new subscribers in Q3
Actual result was +3.0 million new subscribers

NFLX attributing slower growth to having raised prices by US$1 per month in may (from US$7.99/month to US$8.99/month)
“slightly higher prices result in slightly less growth”
So an interesting insight into price elasticity for TV programs





Concern potentially for XRO?

[Beagle]

As per my earlier post, I would be happy to invest - as a pure punt - under $10. However, $5 looks closer to fair value IMHO.

Wts funny that you say that NG. Forest and I had a good chat about XRO back on 30 April when we were flying down to the SUM ASM. We both thought the value is somewhere around $5-6 based on gut instinct but didn't mention it on here at that time as it was $31 back then. Honestly it might be a good product but as losses grow with turnover I can't see the point where it gets to break even so how low will it go is frankly anyone's guess. I guess people either have faith or they don't. I don't.

[blackcap]

Wts funny that you say that NG. Forest and I had a good chat about XRO back on 30 April when we were flying down to the SUM ASM. We both thought the value is somewhere around $5-6 based on gut instinct but didn't mention it on here at that time as it was $31 back then. Honestly it might be a good product but as losses grow with turnover I can't see the point where it gets to break even so how low will it go is frankly anyone's guess. I guess people either have faith or they don't.

If they do not ever make a profit or break even..., regardless of the turnover and customer numbers... well they will be worth $0.

(based on an investor purchasing an investment for a series of future positive cashflows. If those cashflows will never eventuate then the investment is worth nothing)

[winner69]

When then CEO says we need to "reassesses its US growth plans" when the sales guy departs isn't that corporate speak for we seemed to have stuffed up because didn't understand the local competition and how rapidly they have reacted/adapted...and things have gone pear shaped like arc has said

Listen carefully .... the things that are not said are the important things

Like arc I don't think I specifically read the unsaid things in any one particular media piece etc but I am sure that is what it means

[winner69]

Wts funny that you say that NG. Forest and I had a good chat about XRO back on 30 April when we were flying down to the SUM ASM. We both thought the value is somewhere around $5-6 based on gut instinct but didn't mention it on here at that time as it was $31 back then. Honestly it might be a good product but as losses grow with turnover I can't see the point where it gets to break even so how low will it go is frankly anyone's guess. I guess people either have faith or they don't. I don't.

Clare Capital has a valuation about this amount under one of their growth scenarios

You remember Baycorp Roger -- reaching stupid valuations but luckily some foolish Australians came and bought them out so NZ shareholders managed to capture the value ..... somebody taking Xero out at a ridiculous price seems the best outcome now .... isn't that how the greater fool theory works

[arc]

Sorry folks but I cant post it as it was not a web article, it was a discussion {second hand}.
I personally hope they can make a comeback and give the other players a run for their money... no pun intended.

[Beagle]

If they do not ever make a profit or break even..., regardless of the turnover and customer numbers... well they will be worth $0.

(based on an investor purchasing an investment for a series of future positive cashflows. If those cashflows will never eventuate then the investment is worth nothing)

Accountants and sharebrokers definitely agree on that one mate.
What I find perhaps even more amazing than how the SP ran away with itself is how influential people in the business world are treating a said individual like royalty and showering him with business awards LONG BEFORE he's even proven his business model actually works. Every time there's an announcement that customers and losses have grown contemporaneously I shake my head and wonder where this all ends... I would have thought it rudimentary that if we are ever to get to a break even losses must start diminishing if customers numbers keep growing.
Did they put Phar Lap on a pedestal before he even won a single race at the trials...

[RGR367]

............... Did they put Phar Lap on a pedestal before he even won a single race at the trials...

the other side could be said too that there are those who were rediculed too at first and achieved greatness afterwards. And Roger, Phar Lap was not that kind that can talk up a position with journos and/or admirers