Xro - xero

[CJ]

I do beleive Xero has just hit $5 for the first time.

In other Tech company in the NZX50 news, Diligent is just of its all time high of $3.69 in April

Is this delayed NZX50 index action or something to justify the climbs.

Disc: hold both

[Toasty]

Browsing the net about all things investment as I sometimes do at work when I am not busy...ie, constantly, I came across this unusual thread. It looks a bit suspect but contains enough truth to make it interesting.

http://www.hotstockmarket.com/t/2348...p-xero-nze-xro

Any thoughts?

[Blendy]

hmmm.....that is interesting.... *blendy cancels current sell order just in case*

[CJ]

Browsing the net about all things investment as I sometimes do at work when I am not busy...ie, constantly, I came across this unusual thread. It looks a bit suspect but contains enough truth to make it interesting.

http://www.hotstockmarket.com/t/2348...p-xero-nze-xro

Any thoughts?

Interesting and I think it has a high degree of truth to it. Theil has just raised a new fund.

The missing link, which isn't even explicit, just implied in that post, is that the new fund will be investing in Xero, almost exlusively. How can that assumption be made. He has a NZ private equity fund and this is separate and I understand is to focus on US investments. Have a search on Techcruch which I think detailed the new fund - http://techcrunch.com/2012/06/19/peter-thiel-mithril/.

Ok so US$310m - not going to buy the company as it currenlty has a MV of NZ$500m (per Google). And it wont be an equity injection as not even Xero needs that much money in the bank to expand (You cant rule out a smaller injection like the previous ones though - say upto $20m).

Looks like someone pumping and dumping - and from someone with ....

wait for it ...

only one post.

[CJ]

Interesting that CCH has just acquired http://www.acclipse.co.nz/ . http://unlimited.co.nz/unlimited.nsf...-services-firm

I think this is a competitor to Xero's WorkflowMax product which it acquired recently - ie. accounting practice management and tax returns etc though the acclipse product looks more comprehensive from a very quick look (ie. DMS solution aswell (not a user of either).

Not a core product for Xero but getting workflowmax into a accounting firm will obviously drive more Xero sales due to close integration. Acclipse is in 1000 firms (average of 10 users per firm). I wonder how many Workflowmax is in? (this preso from May 2012 says 200+ firms committed : https://www.nzx.com/files/attachments/158023.pdf )

[CJ]

Interesting that CCH has just acquired http://www.acclipse.co.nz/ . http://unlimited.co.nz/unlimited.nsf...-services-firm

Obvioulsy this didn't concern the market. It was up 20c and antoehr 5c yesterday.

Rumor has it they Xero will announce a new acquisition at their next conference which starts soon.

[CJ]

That is a good announcement - they have 150,000 customers which can now easily integrate with Xero. NOt sure if they integrate easily with the other accounting products but for companys moving to a SAAS model for their software, ADP and Xero are a good match

[Everwood]

Obvioulsy this didn't concern the market. It was up 20c and antoehr 5c yesterday.

Rumor has it they Xero will announce a new acquisition at their next conference which starts soon.

It would not surprise me if they announce acquisition at the annual meeting. I'm hoping they will announce they have surpassed 100,000 customers.

[CJ]

Where do people see XRO's share price in say 12 months time?

Who knows, Xeros success in part relies on the big incumbents not providing a modern equivelent, resulting in people changing to Xero rather than just the new version. Also competition for other similar products such as Wave (mentioned above) and Saasu which from what I have seen are not as good - this is less of a risk as in my opinion as they are many years behind in R&D though they could be acquired by an incumbent and integrated.

One also has to remember that is market cap is over $500m for a company that has never made a profit.

I am bullish at the moment though keep a close eye given the risks.

Disc - after kicking myself for years for not buying in (was going to buy when Peter Theil first invested but couldn't for various reasons), I relooked at it early this year and was happy to buy in at $4.15.

[CJ]

One think I have noted is the volumes traded are alot smaller than those in Diligent. There are a lot more key shareholders but still. Anyone got any views on this.