Monday, October 20, 2014

XERO hits a 16-Month Low / dropping 5.9 percent to NZD $16.05 / USD $12.74 its lowest since August last year.

Suze Metherell for writes: New Zealand shares rebounded from last week's drop, led by SkyCity Entertainment Group and Meridian Energy, as investors hunted reliable income in a volatile market. Xero extended its decline, dropping to a 16 month low.
Xero [NZX:XRO], the cloud-based accounting firm, was the worst performer on the benchmark index, dropping 5.9 percent to NZD $16.05 / $USD $12.74, its lowest since August last year. The stock has dropped 25 percent in the past month, as investors question the Wellington-based company's pace of growth in the US, where it is competing against incumbent Intuit. Xero wants a million customers worldwide, and is targeting growth in the US market where so  far it has some 22,000 of its total 371,000 customers.
"They haven't been hitting their stride in the US and a lot of peoples' view of its value is based on it beating Intuit," Lindsay said. Despite the stock's fall, it would still look expensive to many brokers, he said.