Xero – 92 cents – what does this mean for burger fuel?

not a great record for Xero shares so far, on very thin trading though. Remember they launched at $1.10, but cost IPO investors $1. If you didn’t get any shares at the IPO, and still believe, then now would be a good time.

nzx

well for a start BFW has not yet managed to raise their minimum $8m, and so delayed their IPO from July 16 to July 23rd. This is not boding well, but at least now ‘founding shareholders will pick up any shortfall’.

It’s Mickey Mouse stuff if you ask me – $1 IPO’s (they call these penny stocks in the USA), unscheduled IPO delays and XRO’s downward price performance as investors begin to understand the financials rather than the hype.

Published by Lance Wiggs

@lancewiggs

9 replies on “Xero – 92 cents – what does this mean for burger fuel?”

  1. If an investor didn’t read and understand (or have explained to them) the prospectus, they’re a fool.

    To be honest, given the startup nature of Xero, and the fact that they’re rapidly reiterating and developing, I can imagine that, given a choice, they’d rather be rid of nervous and flighty investors

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  2. “It’s Mickey Mouse stuff if you ask me – $1 IPO’s (they call these penny stocks in the USA), unscheduled IPO delays and XRO’s downward price performance as investors begin to understand the financials rather than the hype.”

    Mate, that’s bollocks! You’re smarter than that.

    I’m trying to understand what your motive is with this post and can’t work it out?

    Any comparison between Xero and Burger Fuel is unfair at this point. For a start Xero filled their IPO! Pricing the shares in the IPO at $1, as you know, is irrelevant. Likewise that it’s trading at a discount now. In the last week less than 50,000 shares have changed hands total. The only day there was more than 10,000 traded the price jumped up 5c. With those volumes it’s rubbish to suggest the market has re-priced the stock.

    Another way to interpret the graph you posted is to say that the vast majority of shareholders will do what the prospectus suggested and will wait until xero actually post some results.

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  3. Hi, I’m Natalie and I’m a Xero investor.

    I knew the price would go down, so I didn’t buy as many shares as a wanted.

    I still bought some, because I wanted to have the opportunity to own a slice of a company that I believe in a few years will be a major success.

    Why would Xero’s shares do anything BUT go down right now? People want instant results, and lose faith a few weeks after the IPO when success hasn’t happened yet.

    I work in and part own a startup – PlanHQ. You learn to be realistic about success. The general publis think it happens overnight, because they don’t see the years of work that goes in BEFORE that one night.

    Investing is a gamble, but isn’t that where the fun starts?

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  4. Hi Natalie – thanks for the comment
    If you knew the price would go down, then why didn’t you wait and then buy?

    Perhaps because you Suspected the shares would go down, but you didn’t Know?
    Or perhaps because the IPO process made it easy for you to buy, while trading directly on the NZX is difficult (too many forms)?

    I Suspected the shares would go down, and would have shorted then shortly post IPO if the NZ market made it easy for me. They don’t. (it is simple in the USA)

    on your last point – Investing should never be a gamble – it is about a rational strategy to maintain and accumulate wealth. What you are talking about is Speculation, which means you are willing to risk all for huge returns. What we bloggers in the wilderness have been saying is that the potential reward is not Speculation grade, while the risk is certainly not Investor grade.

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