Thanks for our comments West Coast. I concur that brokers are...

Thanks for our comments West Coast. I concur that brokers are constantly getting their valuations wrong (XRO is a case and point). 6 months ago, there was a magnitude of research calling for the stock to continue its rally through $NZ40 on the basis of its US growth. In that same 6 month period of time we have had a single investor update which disappointed the market and has lead to the share price correction and the once ultra bullish analysts to flip their valuations to be more inline with where the market is trading.

In reference to your question above regarding its US growth, their financial statements do detail their current marketing spend in the US (circa 20mio see page 9), but do not give forward guidance for their total planned spend. They estimate the total US market to be 29mio users and hence will need to spend a considerable amount of time and money trying to capture this mammoth market. They have the resources and are well cashed up, hence I believe their goals are more than achievable.