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“Xero (XRO) is the largest provider of accounting software to the small and medium business sector in Australia,” Julia says.
“It is increasing its fees by $2 a month from 18 March this year, which means revenue per user should rise sharply.
“In addition, the Australian government’s single touch payroll (STP) legislation, which commenced on 1 July 2019 for small employers (5-19 employees) and will commence on 30 June 2020 for micro employers (1-4 employees) should help drive subscriber numbers.
“Business conditions for Xero should remain strong over next couple of years,” she adds.
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Regis Resources (RRL)
“While gold prices have been hitting multi-year highs, Regis Resources is still near multi-year lows,” Julia says.
“The gold sub sector is up 20% over the past 52 weeks, while Regis Resources is down 11%. “This shows that investors have lost faith.
“Confidence could return from better news flow on McPhillamys, which makes up around 20% of RRL’s valuation or good drilling results from Duketon.
“For the time being, the slump in sentiment looks likely to stick around.
“It’s disappointing, given that gold prices have been shining,” she adds.
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