Must be so frustrating for them when a lot of people and even the ASX just don't get it
You sense he grumpiness in the announcement
Believe the story
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Good old XRO... Always good for a bit of how do you do trading :D
I'd like to think ASX would wheel out some sanctions for their flagrant disregard for the long established rules.
I don't care if Rod thinks he's reinvented double entry accounting from 500 years ago or if he thinks he's the next Messiah of the investment world. Flagrant contempt for established listing rules needs to be forcefully condemmed. Suspending XRO's listing while a full investigation is undertaken would teach him a very much needed lesson. This guy appears to exist in his own fantasy world where long established market rules don't apply. The nerve of this guy to think he can re-invent listing rules that have served the market well for many decades.
I see the SP of XRO is down again...not impressed with Rod's gross arrogance, Gee there's a surprise !!, (NOT). It'll be back to $15 before Christmas, you read it here first.
Wellingtonians interested in a peek over the fence might like to attend this: http://iitp.nz/events/wellington/112...nd_Cloud_world
"For MYOB, which employs more than 1100 staff in New Zealand and Australia, the change required was huge; and was as much cultural as technical. With the transition now complete and the investment paying off (the majority of new registrations are cloud based), Simon will reflect on the transition: what worked, what didn't, and some of the lessons learnt along the way."
Their ASX reply maybe construed as bordering on arrogance but since I had the opportunity of working with Rod Drury before, arrogant is definitely not the word you'll use to describe him.
And by Christmas I hope the sp is back to very high 20's once again. Just my gut feel of course.
Ha ha Roger ......by Xero definition of 'reasonable person' you are NOT a reasonable person
Ha... how unreasonable of me to think its unreasonable for a company to make up whatever convenience interpretation of the rules they think is reasonable at their whim...AKA make up the rules as they go along. Traditional metrics don't apply to us, we're special...YEAH RIGHT...there's some nutter leader at Gloriavale sect that thinks he's special and normal rules of child molestation don't apply in his community... someone had me another Tui.
Sorry to startle you but I respectfully disagree. I am seeing massive value creation being realised for shareholders.
The numbers are quite clear. They are making more money out of each customer over time than it costs to acquire them.
The P&L shows only up a loss because they can't recognise future revenue.
I certainly don't want dividends! Far from it.
If they could get access to cheap cash then I would expect them to get it and make even bigger short term losses. The main caveat to this is that they can't hire too fast and destroy the company culture and they can't risk getting too low on cash reserves.
Yes - This is risky. Future revenue may never eventuate if they lose their customers. But I use the product and have used the competitors - so I am confident on this front.
To me it is not even close to the risk of investing at IPO when they had no customers.
This is how you run a good business. Respond quickly when something doesn't work. The sustained revenue growth is a testament to how well run it is. You'd be hard pressed to find many examples of other companies (In any industry) with such prolonged revenue and customer growth.
f'all? 35,000 customers so soon after market entry isn't f'all in my books. They have got to 35000 customers much faster than they did in NZ, AU and UK. Good growth comes from word of mouth more than google ads. I was an early customer of Xero in NZ. I waxed lyrical to friends who owned businesses about it at BBQ's. 35,000 people in the US will wax lyrical about Xero at BBQ's. It will soon become 64000 businesses. I have no doubt.
In my eyes Xero is much less risky than at IPO.