:( Old one? Anyway, TY. But still, I'm buying the company story and picking up some on the dip.
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Really interesting article, if a few months old. Succinctly sums up the challenge: the US. Things appear to be going well in the UK and Australia. In the article Rod says a full force push into the US requires payroll. It seems, from today's Xero blog, they're starting to limit their immediate ambition: perhaps a strategy change, or maybe they have bitten off more than they can chew? They can't realistically compete against Intuit across the board until they offer an across the board product:
"Our vision is to provide you with the worlds best payroll experience for small businesses, in all states, allowing you to manage your payroll; easily and without fear. However, at this time we have no plans in the short term to support more states as we focus on the experience in the current states. With our Payroll Add-Ons you can still benefit from using Xero by using one of our integrated partners to manage your payroll."
Sentiment has sent the SP right up as people has been buying into the company's ability to convert users to up take the software. Plus its ability to accumulated cash. Has this changed?
So on the other hand it could send the SP down well pass $15 if the venture in US goes very wrong... It may and it may not.
Remember, however, Xero doesn't have to be a market leader to succeed in that States, even though it is their goal. They just have to attain a reasonable market share and have potential for growth within their market share.
This is right. The US and indeed the world is such a big market that a few percentage points of market share could be wildly profitable. I sometimes think that the sentiment is that Xero has to be the leader or it will be deemed a failure. In reality there is no reason why they can't be a big player like Intuit with a significant share of the market.
I also think that Xero is looking beyond just the accounting requirements of small business and delving into the underlying banking relationships those businesses have with their providers, suppliers and customers.
Then there is the datamining aspects that were touched on a while back.
I've been in since 90 cents and its bought me some significant toys already so I am in for the long haul.
Toasty. Did you ever envisage it got as far as this?
As long as you making some profit... can't be bad eh!. Every time I jumped in and out the market I loose money :). So I tend to hold on for a little bit longer and may be a little too long on this stock.
I still enjoying its story. I got in at $5.60. Still holding. I have envisaged it could go beyond $25 plus and it did. Purely based it ability to accumulate more clients + cash in the bank.