TradeMe API / Xero

Irrational behaviour and incomprehensible decisions 101 - this is the place. If they're really silly, you could win a chocolate fish.* (* Highly unlikely and they're only virtual chocolate fish)

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digidog
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Post by digidog » Fri Dec 21, 2012 2:55 am

2009
NBR reports that Sam Morgan has just bought $1m worth of shares in Xero giving him 5% of the company.

2012
Sam Morgan has just sold 1 million Xero shares at $7.40 each to NZ institutions. Only last month Xero's three largest shareholders - Rod Drury, Craig Winkler and Hamish Edward - sold a total of $22 million shares. What's going on at Xero? Who else shares the view that such a high share price can't be maintained for a company that's yet to turn a profit?
Last month Xero posted a wider first-half loss and said the loss will be bigger still in the second half as it takes on workers to chase global sales. Sales soared 119% to $17.3 million in the first half, while operating expenses rose 105% to $22.8 million.

http://www.nbr.co.nz/article/sam-morgan ... -bd-134184" onclick="window.open(this.href);return false;

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digidog
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Re: TradeMe API / Xero

Post by digidog » Thu Nov 07, 2013 4:11 am

In 2012 Sam Morgan sold his 1 million Xero shares at $7.40 each - a year later instead of $7.4m Sam would net $37m. Maybe he sold out a little early? These days Xero shares seem to be bouncing up and down like a yoyo.
After opening at $37.30 this morning, shares in the Wellington-based firm surged in early trading, valuing the company at $5.3 billion.

But a sudden shift saw them trading at $36.70 just before 3pm, more than 11 per cent below the all-time-high of $41.50 they hit earlier.

They have since risen back to $37 just slightly down for the day.

http://www.nzherald.co.nz/business/news ... d=11153006" onclick="window.open(this.href);return false;
I still have trouble getting my head around the perceived $5.3b value for a company that's never made a profit. I know a couple of people who pay Xero $30 each month and are happy with their book-keeping service, but at the end of September Xero only had 211,300 paying customers. Divide the company "value" by the number of clients, and that works out to a staggering $25k per client. While this makes no sense to me, maybe that's why I'm not rich and Rod Drury is?

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