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05-06-2015, 08:57 PM
#6261
Originally Posted by Baa_Baa
He is a tech geek who has a vision which is funded by his shareholders and his story is morphing from SME accounting to big data. Who can value that?
Such a move has limited potential in tiny markets that Xero operates in and carries significant risks.
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05-06-2015, 10:55 PM
#6262
Banned
How much is a promise they could be profitable worth, maybe nothing, maybe 2.5 billion(!!) maybe more(!!!).
Really??
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06-06-2015, 12:00 AM
#6263
Member
Originally Posted by Jantar
But not having any tangible assets (net worth) is a sure way to fail it.
I don't think many would share this view.
They have no debt, a ton of cash, publicly listed, huge market cap, future subscription revenue and shareholders with deep pockets.
Probably the least likely company in NZ to have the receivers called in.
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06-06-2015, 12:11 AM
#6264
Member
Originally Posted by PSE
Right, but Jantar said they are solvent now and on their way to being insolvent in four years time unless they improve profitability or find more people to believe the story (raise capital).
No. He didn't mention capital raising. He said they have to reach significant profitability within 4 years or they will be insolvent.
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06-06-2015, 10:20 AM
#6265
Originally Posted by JamesST
I don't think many would share this view.
They have no debt, a ton of cash, publicly listed, huge market cap, future subscription revenue and shareholders with deep pockets.
Probably the least likely company in NZ to have the receivers called in.
So they have a ton of cash etc. That is included in the NTA which they are currently burning at more than 25% per annum.
Maybe they can raise more capital, but any investor is going to want to know that they will get a return on that investment, and so far they have given no indication that that will ever happen.
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06-06-2015, 11:16 AM
#6266
Member
Originally Posted by Jantar
So they have a ton of cash etc. That is included in the NTA which they are currently burning at more than 25% per annum.
Maybe they can raise more capital, but any investor is going to want to know that they will get a return on that investment, and so far they have given no indication that that will ever happen.
Maybe they can raise more capital? Almost certainly they can raise more. They're dual listed.
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06-06-2015, 11:26 AM
#6267
Originally Posted by Jantar
So they have a ton of cash etc. That is included in the NTA which they are currently burning at more than 25% per annum.
Maybe they can raise more capital, but any investor is going to want to know that they will get a return on that investment, and so far they have given no indication that that will ever happen.
From the recent NZ herald live chat with Rod:
"We could slow down and do it next year. We could delay it 5 years. As this year develops we can can decide. The role of the board and I is to maximise long term value for shareholders."
"But we of course would love to get to profitability as soon as we can, but not at the expense of growth. We did our biggest hiring spurt last year, so the loss widened. This year we can slow that down and with our revenue growth the cost and revenue lines will cross over. With 1/4 of Billion of cash we have plenty of time but personally we think about that every day. Will be quite a party."
Patience is a virtue.
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06-06-2015, 02:57 PM
#6268
You have to see this latest integration of Alavara (sales tax software) to just comprehend how complicated doing business in the US of A.
https://www.youtube.com/watch?v=aSPf...ature=youtu.be
But yes, it may even take them another 36 months to crack that territory but I am willing to wait
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07-06-2015, 05:12 PM
#6269
Member
This has become a bit of a haters' forum, which I suppose is fair enough as the Internet is wonderfully democratic. Anyway, just thought I'd post this- I've followed it for over a year now and it does tend to mirror their subscription growth. Not particularly scientific, and doesn't speak to profit/revenue/NTA etc and all those other issues that are being, rightly, debated here- but posting it for a little bit of balance...
http://www.google.com/trends/explore...j7z&cmpt=q&tz=
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07-06-2015, 05:37 PM
#6270
Originally Posted by Santiago
This has become a bit of a haters' forum, which I suppose is fair enough as the Internet is wonderfully democratic. Anyway, just thought I'd post this- I've followed it for over a year now and it does tend to mirror their subscription growth. Not particularly scientific, and doesn't speak to profit/revenue/NTA etc and all those other issues that are being, rightly, debated here- but posting it for a little bit of balance...
http://www.google.com/trends/explore...j7z&cmpt=q&tz=
Interesting. Not much interest in the US though
I am not a hater
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