Great news............well done Xero.A nice bonus to help things along!
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Great news............well done Xero.A nice bonus to help things along!
And from their Facebook page...
Xero now supports over 5000 bank feeds.
- another nice milestone.
Progress is steady, but high NZ dollar won't be helping the bottom line.
Great win for Xero. Should do good for the share price as it will slow the cash burn. I dont think it requires additional R&D to be done, just that they match whatever grant money with their own investment.
but not sure what the R&D that they are doing is. R&D normally requires a scientific element to it. Software development doesn't normally cut it. What they are doing isn't 'new', all they are doing is putting a desktop product onto the web. Compare to the 2 F&P that actually lead the world in technology and secure patents. Does anyone have insight into this or has the govt just propped them up.
CJ you make a very valid observation and ask a great question. All governments have "causes" that they support. This is the same National govt that scrapped the R&D tax credit, so we can all make our own judgements. I don't think you will have anyone who will offer you a clear insight into this.
I'm not really commenting on Xero as I have no idea what they plan to do, however...
...By the same argument F&P aren't doing anything "new", they just invented a different way to wash dishes, wash clothes, breathe... Software developers can indeed register patents, as Samsung has just discovered to it's cost. Think of something as simple as the single click purchase process - every time someone buys something on Apple's I-tunes, Amazon earns some money from it's "1-click" patent. Purchasing something isn't exactly a new concept either but Amazon monetized the concept of an easy purchasing process via a patent.
http://worldwide.espacenet.com/publi...E&locale=en_EP
In case the followers of Xero missed it, there was some interesting developments:
Sam Morgan bought some shares at 2.40, not many just a hand full
The new CFO, bought 40K shares around the same time
and finally we know the price that Rod wants for Xero - anything, as long as its more than the Trade Me deal - as per last weeks interview in the NBR when talking about the MYOB deal and the possibility that Sage may come knocking on Rod's door.
Thanks Nandi,that was very interesting.I was away on holiday and although I saw the share acquisitions I missed the NBR report regarding Sage`s billion dollar offer for MYOB.Rod did comment at the agm that he wanted to surpass Sam Morgan`s Trade Me success and turn XRO into a billion dollar company........a buyout would be very nice by Sage,Microsoft or anyone for that matter haha!Did you get the impression from the interview that this was a possibility or that the company was focused on getting there under it`s own steam?
Man, I wish I knew for sure! I have always had a very strong sense that Xero for Rod was always a another step towards becoming a master of the universe (I mean that in the nicest possible way). All the talk of building an enduring business etc in MHO is just PR talk. I think initially MYOB would have been the target buyer of choice but then they went and got bought out themselves, which has meant that Xero have had to go through the pain of becoming a proper business under Rod's leadership - as the results show, its been a bit of a mixed bag. Go back and read the prospectus and then you will see my basis for making that comment. Xero have no other choice but to do its level best to "get there". I have always been a believer of the need for something better than MYOB. The Cloud space is getting interesting, so anything can happen.
One of the funny things about Archer was that back in 2008/09 they took over MYOB for around $450 million. This resulted in Craig Winkler being kicked out of his own company. Winkler left with a pocketful of cash, some of which he put into Xero. If he hadn't done that Xero was well on its way to running out of money. Xero probably would have got someone else to stump up the cash - but who knows? Archer may have saved Xero.
On the other hand Winkler left MYOB and three years later his company gets sold to Bain for $1.2 billion. You could argue Winkler's inability to maintain control of his own company and the faith of his shareholders has cost him and those previous MYOB shareholders $750 million. That's a huge amount of value to miss out on. This man who cost his investors $750 million is now on the board of Xero, making strategic decisions for the company and for some reason presented as an astute investor. Go figure!
I'm guessing Winkler's pretty peeved over the whole Archer-Bain deal and Drury's jealous because they didn't come offering real dollars for Xero.
I agree with Nandi that Rod views Xero as another step on the way to somewhere else. The problem he has is that the sharemarket has overvalued Xero. Its capitalisation make no sense based on its performance, the significant challenges it faces in its markets and the ongoing investment it requires.
Yes,fair enough!It`s hard to fathom how this will all pan out re XRO.It will be interesting to see how quickly Bain Capital(the company which has taken over MYOB) capitalizes on the considerable customer base of it`s acquisition in Australia and NZ,whether it develops new products and if this impacts on the progress XRO are making there longer term.Come results time I will be interested to see if XRO`s own aquisition has had the desired effect in Aussie re the number of sign-ups.