Thursday, April 1, 2010

Xero Set for surprise to the Market?

A little birdy told me at 11.21am yesterday:

"If you were going to invest in Xero, today is the day. Xero are going to announce their customer numbers soon and it is going to be quite a shock to the market."

Apparently, according to another close Xero watcher, Xero Ltd [XRO.NZ] is going to release their customer numbers to the NZX tomorrow morning at 9.00am and his own analysis (and a bit of educated guesswork I'm thinking) tells him the figure will be around 20000 customers signed up, give or take a few thousand.

Now of course if the anonymous tipster is aware of inside information he/she shouldn't be telling me or anyone else because this sort of stuff is share price sensitive. I am only telling you now as the market is going to know anyway before it opens trading at 10.00am.

The stock was up by 6c or 3.77% yesterday to NZ$1.65 on 7000 shares and 5 trades. Hardly the stuff of billionaire making but nonetheless the principle should be constant - the market as a whole should know such information at the same time.

Xero shares have traded in a steady fashion for the last 4 days (see 5 day chart below) and the spike yesterday was the biggest one since a 4c drop last Thursday. Please keep in mind that this stock can swing wildly for no particular reason because of its thin trading volumes. Its big rise yesterday before the apparent big news out this morning could be a coincidence or...make up your own mind.

Xero was a Stock of the Week back in July, and I picked it again for the 2010 Share Investor Stock Picks back in December as one of the riskier outside picks on the grounds of overwhelming support from users of Xero's products and the inside buzz surrounding those invested in the company.

I continue to remain interested in the market hype surrounding Xero but don't understand the business so will not be investing.

It is either going to be one of New Zealand's overwhelming success stories or vanish into the ether as quickly as it arrived.

I wish current and prospective investors in Xero all the best of luck for that announcement latter this morning and hope the "insider" was on the money.

Related Share Investor Reading

Love Xero?

Share Investor's 2010 Stock Picks
Stock of the Week: Xero Ltd

Discuss Xero @ Share Investor Forum

Related Links

Xero - Corporate Website

c Share Investor 2010