You missed the best bit 'the executive team should sell the company'
Seeing that $330m of shareholder cash has already been turned into $3 billion on the market maybe tha suggestion is not all that outrageous?
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We talk punting and horses (and successfully as well) on Sharetrader. Punters talk shares on racechat.co.nz
While some are bashing poor old Rod here's a few comments from punters
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Time to unload your XERO shares. Rod Drury the founder is starting to behave more like former BRIDGECORP founder Rod Petrovecic. Anytime an analyst makes an opinion on XERO that Drury doesn't like he bites back.The same behavior was used by MR Bridgecorp before he went down. Mind you its only my opinion.
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Congrats to everybody who got out of XERO IN APRIL. Shares have just hit an 8 month low.
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Nick Lewis,an analyst from Woodward Partners Equities has down grader the share price of XERO. As expected Rod Drury has unholstered his gun and is taking aim. Maybe he should take a lesson from his name sake James DRURY of the Virginian and think before he shoots. After all what he is selling is only software and it will get outdated pretty quickly. .Sell now. I HAVE NO FINANCIAL QAULIFICATIONS AT ALL SO MY ADVICE IS ONLY MY OPINION.
Just a different perspective on the other side of the fenceQuote:
Rod Drury is upset that Craigs Investments has slapped a sell on Xero shares.
He says that they are a bit dissapointed with this assesment.He then goes on to say that they have 29 million potential customers in the US OF WICH THEY CURRENTLY HAVE 18K.
My advice to Mr Drury would be that they will remain potential customers until they are yours.Go out and get them Sir.
One poster loves Heartland
The Craigs analyst also said Rod should focus more on running the company and not what the analysts are saying. He should be looking at growing the company and not being deterred by analysts. He has a great produce he just need to implement it effectively.
Does anybody, pro- or anti- XRO, think that Drury isn't focusing on running the business?
There is reason why the Craigs analyst is a commentator (as opposed to an entrepreneur).
Even analysts make mistakes in this investment world. It is better to do our own research to find great companies. I can remember some analysts downgraded some meat stocks in the past. This situation created buying opportunity for intelligent market players. These downgraded meat stocks have outperformed even broader market. Similarly it is time to study XERO before we take any decisions. Value investors should pay attention to great value and future prospects before buy any stock. There should be specific reason to buy and sell stocks.
Actually xero is in a similar position as August 2012. Market cap 25 times revenue. Cash on hand 5 times last financial years loss. Analysts and financial writers saying it's overvalued by 20%. Many observers saying its a great company but overvalued. In 2012 it was MYOB that was the hurdle in term of competition this time it's INTUIT. Comes down to xero's execution and INTUITS response that's the space to watch the answer will be in carefully looking at how accountants in the US rate the product in forums/blogs/reviews/professional journalism and try and get a better grip of where xero is ahead of the pack. Today's share price is justified because of the market it will get in the UK,NZ,Australia and to a lesser extent US. increase In SP in the long term will depend on what % they get of the US market. In 2012 xero was about to list on the ASX this time it's the NASDAQ. Xero will not have problems raising more cash either.
Same position as August 2012 thats my opinion for what it's worth.
Headline in the NBR: Xero rival MYOB tipped for IPO valuing it at $A2.5b to $A3b
http://www.nbr.co.nz/article/xero-ri...po-ck-p-161282
I'm surprised no one has commented on this. At the top end of the range quoted, MYOB would be valued at more than Xero. If that were to eventuate, it would be interesting to see which company analysts call overvalued. For my money, when buying shares in a company I am buying for the long term, 5-10 years or more, and treat the decision as if I was buying the whole business. When viewed that way I don't pay so much attention to the current price, but more to the prospects of the company. Will the company grow and be worth 5+ times what I paid in 5-10 years. If Xero and MYOB were to have the same market cap today, which would you buy as a long term hold? For me the decision is clear.
Disc: Have held XRO for 5 years and continue to hold. Will not be buying MYOB