Contrasting Fortunes For Xero, AMP
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An all time high for Xero, the accounting software group, and an all time low for AMP yesterday.
Xero touched an all-time high yesterday, touching $A44.75 during trading as the accounting software giant held its annual conference in the US and changed its slogan from ‘beautiful accounting software’ to ‘beautiful business” - such is the needs of marketing hype these days.
Xero is now worth just over $A5.8 billion.
Foundation CEP, Rod Dury has stepped down to be replaced by Australian tech veteran, Steve Vamos, changed its tagline from “beautiful accounting software” to “beautiful business” on Wednesday.
The company claims the change is designed to emphasise it now offers a wider service, beyond its core business of cloud-based accounting software.It announced a new partnership with financial services giant Citi and new product features.
Xero shares ended at $44.01, up 0.9%.
Meanwhile AMP shares hit an all time low of $3.615 yesterday as another class action - the fourth - was announced by Slater and Gordon (itself no stranger to class actions over the destruction of shareholder value).
Slater & Gordon will undertake its claim work for shareholders on a ‘no win, no fee’ basis which sounds great for angry shareholders until you realise the firm will grab substantial commission fees on whatever compensation is awarded. If there is none then its another big loss for Slater and Gordon. there are no freebies in the egal world.
Slater & Gordon will claim that AMP failed to disclose to the ASX some egregious business practices that came out in the wash during AMP’s pasting at the Royal Commission into financial services. The lawyers will allege that AMP failed to notify investors that it charged clients fees for no services, and misled ASIC over its unusual fee-charging practices. they are the usual claims in this type of class action.
AMP shares ended at $3.62, down 2.9%, itself an all time record low close. the shares are now down more than 30% this year and the company is valued at just over $11 billion.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.