Thanks for the feedback all. I'm always a bit wary posting a negative view on a stock. I'm sure everyone's noticed that generally if posters are posting on an individual stock forum the views are overwhelmingly positive. Personally, I appreciate a contrarian view as it makes you challenge your own assumptions.
I'm hoping I see a pull back in price so I can get in on this. Not exactly sure what that price is yet, but would need to be significantly lower than current price (some further valuation work required), but right now the qualitative factors (ie: great product) just aren't aligning with the quantitative valuation.
DHC - Just to clarify the 20% was net margin, not gross margin. Granted GM would be considerably higher than that. Also, not surprised you're not seeing a lot of broker support for MYOB later as it was bought out by a P/E firm a few years ago and delisted.
Pezza - Shameless cross promotion. Just a conspiracy theory my friend. I own neither. I have yet to thoroughly research RKN, just mentioning I came across and will probably post some notes on it. However, at first glance I am more positive on it than xro. If i were to substitute a better revenue growth rate than managements guidance, valuation would obviously be more attractive. Generally in my modelling I like to be conservative and use a lower number than management provides so there's a margin of error.
Cheers Gralynchett
XRO Price at posting:
$15.64 Sentiment: ST Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)