Thursday, March 21, 2013

Share Price Alert: Xero Ltd 4




Xero Ltd [XRO.NZX] is a company that I just cant take my eyes off.  How long can it keep going up and up, like a well, like a rocket.

It traded down at $11.25 today after going past the 10 buck mark late last week..

It surpasses several of my current portfolio MFT - Mainfreight LtdWHS - Warehouse Group Ltd ,MHI - Michael Hill International Ltd ,  FRE - Freightways Ltd , BGR - Briscoe Group Ltd PPL ,- Pumpkin Patch Ltd and these all make handsome profits.

None of the aforementioned are even close except for the often mentioned  MFT - Mainfreight Ltd  is currently trading at around $11.25c , itself making a net profit of around $65 million to March 31 2013.

The depth of buying shows little wavering, with some people on a well known share site even picking $20 per share and another skilled player boasting of over 1000% returns - good on him, we like making money but we like people to keep it.

You know it is time to start selling when people start talking like this.

NO share, cash, investment is worth it if it hasn't yet made money and I will spell it out, Xero Ltd [XRO.NZX] has not made any M-O-N-E-Y and  is far from reporting one any time soon. In fact its many years away.

Furthermore its revenue to March 31 of an expected $38.6m, meaning Xero is currently trading at a multiple of 36 times forecast revenues.

Now I have spoken to CEO Rod Drury on one occasion and while is a very smart cookie, he cannot yet make 10 dollars into $1000 or make his company make money no matter how good it is.

That is a worry, just how good the company is. There must be another company around run by some background nerd just itching with his index finger on go button. 

Then it is all go into the next big thing.


Xero Ltd @ Share Investor 

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Xero: To those I haven't warned before
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Share Investor Interview: Xero's Rod Drury
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Rod Drury on Xero and Growing Business
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Love Xero? 
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Discuss Xero @ Share Investor Forum
Download Xero Company Report
Listen to Rod Drury Interview


Recommended Amazon Reading

The Intelligent Investor: The Definitive Book on Value Investing. A    Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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Shareinvestor 2013