That's a bingo, couldn't agree with you more.
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My initial thought was that Thiel paid too much but I don't think they did. Bain Capital paid around 1.3 billion for MYOB. With MYOB's debt that's an EV of 2 billion for a company that has no global aspirations, is not really in the cloud yet and increasingly marginalised in Australia!!! Thiel got Xero for the same price.
Who's jumping in at these levels? Where are we at on the greed-fear scale? I'm tempted to top up.
I think the profit-taking that we saw was healthy and we are only back to December levels. Let them appreciate by a billion if there are news that warrant huge increases and we didn't always see that. On the other hand, the Square deal was really important in my view but there was no reaction. Many US customers had asked for square integration and it's good to have somebody like Thiel who surely knows about payments...
Couta you've hit the nail on the head with this quote. Bought heavily into Xero at $2.86 and haven't touched them since. Easy to get excited about the paper profits and break into a sweat over the tens of thousands i've seen dissappear this week. For me it's always been a long term play and having been to a few Xero presentations over the years, most recently a month ago, I'm absolutely convinced Rod is the messiah who will take us and Xero to the promised land in 3-5 years time. Seen too many big swings in the SP over the past 3 years to think this week is no different to the others. Keep the faith y'all.
Totally agree Malpaso. I too am convinced Rod is the messiah, from the very first day I saw him release Xero and what the plans are for it. No other product I have seen even comes close for small to medium size businesses (keeping in mind everyone has different requirements I know). The product is a hands down winner for so many reasons.
I had the opportunity to buy early on as well. But having not bought shares before and not being a risk taker I didn't. Should have because I believed in Rod and the product. So I watched the shares for along time and then bought at $10.70 - this exact time last year. They were $10 on the Friday, and by the time I got myself to Craigs and all signed up at lunchtime Monday, they were $10.70. Bought more at $14. I thought about selling this week - but am putting them in the draw for a few mores years yet.
Hey Kerry & Malpaso - t-shirts are heading your way! Newguy & Roger - are you sure you don't want me to put an order in for you?
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