Xro - xero

[mcdongle]

Was just wondering if they had been caught up in the nasdaq selling of co's that have never made money

[Beagle]

Was just wondering if they had been caught up in the nasdaq selling of co's that have never made money

Yes absolutely ! Listening to a guy on CNBC he described it like this. The Nasdaq companies that will start make money in say 20 years time have enjoyed unprecedented tailwinds from valuing the net present value of all future earnings with the 10 year Govt stock rate as low at 1.4%. Change that discount rate to a more normal 3-4% and their future earnings are worth a whole lot less.

Gambling, (lets not pretend its anything else), on whether a tech company might make money in 20 years time and grow quickly from there...or be a complete flop has never been my thing. Although I rate my nose to detect a feed coming in the medium term nobody can predict with any accuracy whether XRO for example really will make a fortune down the track.

I mean, come on, here we are a whopping 15 years since they listed and they're still not making money. I think Rod Drury has made complete fools of the judges who handed out those business awards and many other people besides and has been laughing his way to the bank for a very long time now on the back of what looks like for all intents and purposes a quasi Ponzi scheme.

Of course supporters would deny something so outrageous as to call this a Ponzi scheme and say future growth will generate huge profits....the same thing they have been saying for 15 years now. Can I have a Tui to go with that

[artemis]

I think Xero will be on the right side of cloud history, and their primary target is global SMEs. There are a lot of them out there, lots on unsophisticated systems.

These are strange times but not hard to see useful cloud companies like Xero quietly continuing to add customers.

[Beagle]

I think Xero will be on the right side of cloud history, and their primary target is global SMEs. There are a lot of them out there, lots on unsophisticated systems.

These are strange times but not hard to see useful cloud companies like Xero quietly continuing to add customers.

Lots of other good systems out there too. More business does not necessarily mean a decent profit...as the company has consistently proved for 15 years now. If something waddles like a duck, quacks like a duck and keeps dropping duck poo...guess what...its a duck.

I'm sorry, but the numbers do not compute and no matter how many times they use the word beautiful in their presentations and marketing material in terms of the only thing that really matters to investors, earnings per share, this is a very, very ugly company. Of course in 5, 10 or 15 years time things will be different they will tell you, or will they ? The emperor has no clothes, plain and simple.

[winner69]

When I think of Xero getting more and more customers and not making any more money (probably more customers means more expense) i envisage Xero as being one big office (maybe a pseudo cloud) full of bookkeepers (people) who take what customers input and their bookkeeping stuff on it and then sends it back to them ....maybe like a 'cloud' with zillions of elves slaving away putting data in the right cubby hole so the users see what they think is a set of accounts

Suppose it is more efficient than that ....but the numbers say the efficiency isn't improving.

[mcdongle]

Yes there are an interesting few years ahead for sure.

[RGR367]

A director's husband got some shares as per today's announcement. And it moved the sp up So just imagine what's the sp will be when this downturn is really over

[winner69]

jeez - XRO below $100

[Baa_Baa]

Yes, quite the SP rout, off almost 40%, being sucked down by the US techs? That's big money for a $100+ stock. Anyway, technically $90 looks solid support and $94 is the 61.% fib retrace. Won't be getting any myself, even with very tight stops, until the short MA's cross up and the price crosses up above them, which will be a few days after the bottom, whenever that is. Fact is, since late December 2020 this has turned into a huge range trade. It's in the grips of the bigger market forces imo. Watch those too if you're thinking about getting some, or some more XRO.

[FTG]

Yes, quite the SP rout, off almost 40%, being sucked down by the US techs? That's big money for a $100+ stock. Anyway, technically $90 looks solid support and $94 is the 61.% fib retrace. Won't be getting any myself, even with very tight stops, until the short MA's cross up and the price crosses up above them, which will be a few days after the bottom, whenever that is. Fact is, since late December 2020 this has turned into a huge range trade. It's in the grips of the bigger market forces imo. Watch those too if you're thinking about getting some, or some more XRO.

The last couple of months have presented an absolutely beautiful textbook short trade, especially from when she cracked through $130.

Agree Baa Baa, circa $90 is looking like an area of strong support. Past behaviour gives no assurance for future behaviour, but historically when XRO has rebounded off a low it has done so with some vigor. RSI on the weekly is also starting to warn of an impending pivot point, even if only providing temporary relief for the Bulls.