The track record is a product of fantasy, media hype and deliberate misinformation.
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Xero can forget the US and they need to fight to their tooth to maintain traction in Australia now that Intuit is coming after them there.
Xero can't control market cap. They've been completely transparent about how many paying customers that they have as opposed to MYOB and Intuit who deliberately set out to hide the real numbers behind the guise of free & trial accounts etc - to me that is misinformation. Xero can't control what one person is prepared to pay another for shares. People are simply forming opinion about Xero's possible place in the global business world and putting their money with their mouths are. If you feel so confident about your own opinion of where Xero is going, then put your money where your mouth is too and short the stock.
1. No they don't control market cap but they also don't caution people, which would be the responsible thing to do.
2. Yes Intuit and fresh books massage their numbers. They are accountants, they have to habitually massage numbers so the IRD/IRS doesn't get your money. Maybe it's force of habit. But guess what Intuit is not only a corrupt company, they are also in a corrupt country. If they had an inferior product and Xero would become a threat, they would call up their congressman and make them declare pizza a vegetable:
http://en.wikipedia.org/wiki/Intuit#...s_and_lobbying
http://www.stuff.co.nz/life-style/we...-US-Government
3. All that shorting does is to distort markets even further. There is even the risk of a massive short squeeze given these extremely low volumes. So, no thank you.
Point is that Xero has at this stage nothing going for itself in the US and my worry is that they will also get creative about customer numbers so the ship doesn't sink.
Bizarre comment, dude. Bizarre.Quote:
No they don't control market cap but they also don't caution people, which would be the responsible thing to do.
Well, companies do have responsibilities if they want to last. For example, you can't come and say
'We’re happy to report that this “Global” region is going gangbusters.'
And then 5 months later, customer numbers are USA + ROW = 16600
http://blog.xero.com/2013/04/heres-to-xero-partners-around-the-world/
Don't you think a chest beating guy like Drury would have told us by now if numbers in the US were soaring? Sometimes no information says a lot.
Let's believe them that numbers of global region are gangbusters. So what are they then in the US if the total is 16600 a few months later?
He's right. They should have a disclaimer that goes out with every announcement.
"Xero is on track to meet goals but we don't think you should invest in us because we aren't giving you the whole story and we certainly think eventually we will probably fail. We have issued an annual report but its mostly lies and made up stats."