Xro - xero

[CJ]

Ah, thanks for that CJ, I forgot today was the first day it traded on the ASX. So it's the SP on the NZX adjusting to equate to the ASX SP??
Also, excuse my ignorance re dual listings but does the "law of one price" generally hold? If so in XROs case will the ASX SP generally track the NZX SP or visa versa?
Still tracking up by the way - up 4.2% as I write.....

Generally they should track the same. Otherwise, you would go through the process of moving your shares from the NZ registry to the Australian registry (I dont know how quick or difficult this process is).

My guess and I maybe wrong is the current buying is from investors wanting to move the shares across.

[zs_cecil]

Certainly getting a decent pop out of it no matter what the reason and looks like it's just about to hit an all time high, currently at 580 (up 6.4% on the day)

I wonder if it can be put down to a simple increase in demand; Supply is constant > effective upwards shift in demand due to ASX listing = increase in SP.

A good day for the shareholders. The side effect is there could be an increase in sale if bad news comes.

[CJ]

Turmeric - Dont really know. They didn't issue anymore shares so any Australian purchases have to come from somewhere.

Am thinking about setting a tight stop. They are up 100% for the year.

[winner69]

New punters in Australia seduced by all the rave articles in the press .... they just love this sort of stuff .... so the shareprice goes up ... being driven by the demand (albeit a bit on the light side) from Australia

Pretty clever using the ex MYOB guy to do the touting over there ... has a track record and as such credibility .... and heck he has turned his $19m or whatever to more than $100m

[zs_cecil]

New punters in Australia seduced by all the rave articles in the press .... they just love this sort of stuff .... so the shareprice goes up ... being driven by the demand (albeit a bit on the light side) from Australia

Pretty clever using the ex MYOB guy to do the touting over there ... has a track record and as such credibility .... and heck he has turned his $19m or whatever to more than $100m

Shall we feel lucky that shareholders in NZ were seduced by the stories at least a few years earlier before the new punters in Australia?

[Toasty]

I certainly feel lucky looking at that share price today. Still can't bring myself to sell any as I now feel like part of the story. Sad but true. Maybe the interim results are good and somebody has wind of it?

[winner69]

Shall we feel lucky that shareholders in NZ were seduced by the stories at least a few years earlier before the new punters in Australia?

Of course .....just like the Aussie punters will feel happy when it lists on the Nasdaq .....maybe 10 bucks by then

[kizame]

Am thinking how easy it is to fall in love with a stock!
Gotta remember it's not profitable yet,at least not as net profit.
And if so what would the p/e multiple be?
I look at diligent and think p/e a little expensive,but the runs are on the board,and still more growth to come.

[Zaphod]

Pretty clever using the ex MYOB guy to do the touting over there ... has a track record and as such credibility .... and heck he has turned his $19m or whatever to more than $100m

Yes, a very astute move that's leant a great deal of credibility to Xero in Australia. Add that to Rod's continual under-mining of MYOB and their dark private-equity overloads and you have a PR clusterbomb

Gotta remember it's not profitable yet,at least not as net profit.

And unlikely to be so for the foreseeable future, although personally I am not concerned at this time.

[Silverlight]

Gotta remember it's not profitable yet,at least not as net profit.
And if so what would the p/e multiple be?

The fundamentals of this story always make me consider selling my last shares, but then I think why bother? They are negative cost care of both of the SPP's.

If XRO tomorrow stopped trying to grow fast, and concentrated on embedding their current customers, then we assume the 16.7m half year revenue stream is 33m full year. If you assume they will opperate on similar margins to other scalable IT businesses, ie Trademe, Seek, Wotif, etc then think 30-50% margins. So 33m becomes 10m to 16m gross profit, maybe 5- 10m net profit.

All pie in the sky guesses *if* they made these profits, then you get to a current P/E of 60 -120. On that basis I would sell/ reduce if this thing was more than 1% of the portfolio, however they are not so adds a little bit of a tail wind to the portfolio, just incase they do hit their milestones. I have stated previously I think they are overvalued for the risk you taking on, however this needs to be coupled with your position size relative to your other holdings.

My portfolio can tolerate this risk, I note some other posters positions in this are very large indeed, however that maybe well within their own risk tolerance, its not within mine.