I think what petepan is getting at is that if you're going to...

I think what petepan is getting at is that if you're going to put a price target out there you need to provide some sort of justification as to how you get to that figure.

I've previously posted that I thought xro was now totally detached from any fundamental valuation. Recent price rises and with more share now on issue my view hasn't changed.

I wasn't predicting a cap raising for at least another 18 months based on current cash burn (it actually decrease last quarter). My take on the early cash raise is a) the directors realise the price is at a pretty hefty level right now so good time to raise money b) there are a few cloud packages coming online in the next year and xro are trying to take advantage of getting there first.

Yes, xero may have a great product, and the innovator can make good margins for a while, but then the imitator comes in and does it cheaper eg: apple, Samsung. In my view this will happen quickly with the likes of reckon bringing their cloud package out soon and at a cheaper price. Anyone taken a look at reckons package?? Slap a xero logo on it and you can barely tell the difference (well you can, but you get my point).

I see this as a case of a business with great potential but a stock which has been pushed up to significantly overvalued levels.