Last week's weak share price has continued. There's been a very big drop today down 38c to $4.33 - that's over 8%. There doesn't seem to be any particular reason why - but something has obviously triggered the drop.
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Last week's weak share price has continued. There's been a very big drop today down 38c to $4.33 - that's over 8%. There doesn't seem to be any particular reason why - but something has obviously triggered the drop.
It was CJ's comment above about being fully priced in. We just need him to say something positive like " I see $6.60 by the end of the day due to ......"
doesn't look good. Drop seems big enough for a 'please explain' just to confirm there is no information that should be out in the public sphere.
Or maybe it is just because Rod has been quiet recently
The Dear Fraser letter says nothing to explain why the fall. .......just silly punters
Rod needs to tell another good story methinks
I rather suspect it is just one or two parties selling shares. Xero's market is sufficiently illiquid (or tightly held depending on your point of view) that the actions of just one or two parties can have a big impact on share price.
The share price has been highly variable this year - big rises and now big falls. More liquidity would probably smooth this out - but we're not likely to see that happening.
I wonder whether Xero is continuing to meet the liquidity demands of being a member of the NZX50. The daily volumes are generally not large.
Sparky, while I understand where you are coming from and there are plenty of people who share your opinion (see NBR), but that doesn't explain the sudden drop today. Sudden drops without public explanation tend to suggest rumours may be circulating somewhere. It may only be one or two people have heard the rumour, but their actions have had significant consequence.
I certainly understand NZX writing a please explain letter to Xero:
https://www.nzx.com/companies/XRO/announcements/226501
My guess is it is just a few people trying to exit. With the volitility in this stock and the risk that their expansion plans will not be met, speculators are just dumping their shares.
Disc - still hold. Not concerned (yet)
I see NBR is connecting the recent drop in share price to COO Alistair Grigg recently selling 124,500 shares. This occurred on August 11 but wasn't disclosed until August 21:
http://www.nbr.co.nz/article/nzx-que...drop-ck-126923
That's not a good look.
They need to get systems in place - this is simple stuff. They are a very fast growing company (at least if staff numbers are anything to go by). Maybe they could reallocate one of the new new hires could be reallocated from their current positions to look after than.
I understand they have hired 150 staff in the past 12m and have job positions open for another 50 including:
5 junior staff to kiss Rods arse
7 senior staff solely allocated to brown nosing, and
2 junior and 3 mid level people required to full time to keep the bosses egos inflated.
Disc: And for some reason I hold.