All still on track and strategy playing out nicely
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All still on track and strategy playing out nicely
Not to me in this report. In fact the customer and revenue growth was a bit on the high side of my expectations.
Then you have them issue a price hike in NZ and Aus last month. And now news of their intense employment drive starting to cool down . I can see why sentiment is up. (to the tune of 10% in two days)
It will be interesting to see how the employment situation develops.
When Xero becomes profitable, will they be able to offset any past losses against that?
(Sorry, I'm not an accountant so not even sure the question makes sense).
It would appear so according to the IRD:
"Carrying losses forward to future tax years
For a company to be able to carry forward a loss to a future tax year it must meet the shareholder continuity test. The shareholder continuity test will generally be met if there is a group of shareholders whose combined voting interest in the company during the “continuity period” is 49% or more.
The “continuity period” is the period from the beginning of the tax year in which the loss was incurred until the end of the tax year in which it offset. If a company suffers tax losses for several years in a row it will have to calculate its shareholder continuity for each year separately"
Just note that the text you quote implies continuity from loss made to profit offset claim.
So I presume that if you make make losses for say 10 years before your first profit you will be needing to show that 49% of those who held eleven years ago still hold (and I am not going to guess whether/how all those capital raising on the way affect the outcome).
Best Wishes
Paper Tiger
Agree with what you've said. Many investors find Amazon's lack of meaningful profitability objectionable too. It crossed my mind to have a go but its cuts against everything I believe in regarding investing in real companies that make real money. Call me an old cynic but "talk is cheap" and they do plenty.
If that's ok, would you mind expanding a little bit on what made you get into this trade and your entry/exit strategy?
I'm asking this because I've just finished reading “The New Trading For a Living” book and everything made kinda sense until the trading system part which seemed to contradict some of what was previously said.
Anyways, as an exercise I've been looking at XRO's weekly and daily charts to determine if the current SP rise was the start of a bullish trend worth buying into, and my notes so far are as below.
Edit: I will be referring to ASX:XRO, sorry for the confusion.
/ Weekly chart
Good points:
- SP crossed above EMA 25 -> bullish
- EMA 25 just turned up -> bullish
- MACD 12/26 lines crossed above signal line -> bulls are dominating
- MACD histogram going up -> bulls growing stronger
- DMI+ crossed above DMI- -> bullish
- volume 2x bigger than 14-week average -> confirms the trend
Not as good points:
- EMA 25 below EMA 100 -> death cross!
- SP just hit EMA 100 -> resistance?
- RSI getting oversold -> bearish but to ignore if this is an actual trend
/ Daily chart
Pretty much the same results as above, but this time with an EMA 50/200:
- SP crossed above EMA 50 and EMA 200 -> bullish
- EMA 50 just turned up -> bullish
- EMA 50 below EMA 200 -> death cross!
- last SP closed lower than its high -> possible exhaustion of the bulls with a pullback to come?
So I'm a bit confused. I understand that it's acceptable to not have all the signals turning green to get in but, for example, I thought that a death cross would be a definitive no to buy in a bullish trend? In fact I'm not even sure if we can consider being currently in a trend or still in a trading range. I'd somehow be tempted to go for the latter if a support level at around 12.5 and a resistance at around 18.5 make sense. As such, buying now while using such large MAs (50/200) means aiming at picking the early stage of a major trend that yet has to be confirmed, and hoping that the SP won't be pulled back in the trading range? Is it the high volume that makes the bullish trend the most likely outcome?
PS: apologies if this kind post of mine doesn't have its place on this thread—maybe I should create a separate one to gather my TA wonderings?