Xero Growth

(Market Update: As ever, things happen after I post! By 10.25am this morning, Xero Live's shares drop 1c on 3 small trades. Plus SMS has one trade (buy) of NZ$1,400. Result? Plus SMS increases in market value by further 27.3% to $56,604,683. No new market announcement. I still don't get it.)

On 3rd March, Xero Live, the Wellington-based online accounting company posted a trading update to the NZX.

It announced that its award-winning online accounting solution was now available to the 4.5 million small businesses in the UK. Xero, the statement said, had signed up a number of UK based accounting partners and has UK customers already using the product.

This was of course all part of the business plan, but its deployment did enable a significant execution of that plan. So how did the NZX react?

Er.....still waiting on that one. Not a single share appears to have been traded in the two days since the announcement. Yet on the same day that Xero made their announcement, a single trade in Plus SMS for approximately NZ$98 (yep, that's right, the price of a petrol fill-up) saw its market value increase by approximately 18%. No market announcement, just a single trade.

Sometimes, I just do not get it.