From the moment this company listed in 2007 it promised big things. Xero Ltd [XRO.NZ]has thus far failed to turn a profit. It is growing pretty fast but from a smallish base.
Its recent listing in Australia last week has seen its shares hit the stratosphere. Nearly $6.50!
The shares started the year at $2.25 and since then (see chart above) they have continued to rise like a rocket ship. It seems $10.00 would not be out of question given now that the Aussies are having a go at it.
It is clear that there are two different things at play here.
One the success of the company and its growth - which appears to be growing fast - and the price and fluctuation of shares.
One way or the other you are going to have some burnt fingers, when the truth comes out about how profitable they are going to be.
Watch for the share price take a slow trip the other way when this happens, and believe me it will .
Rods interview with me in 2010 , made it clear where the company was heading and more interesting one with a user gave an interesting take on the Xero phenomenon .
You have been warned.
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c Share Investor 2012