# NXT - NEXTDC Limited



## System (10 December 2010)

NEXTDC Limited (NXT) intends to develop the next generation of data centres focused on delivering smart, secure, scalable and energy efficient facilities to the Australian and New Zealand markets. 

http://www.nextdc.com


----------



## bazollie (18 December 2010)

It will be interesting to see what NXT will do over the coming months. I was fortunate enough to get a small allocation for this float and also topped up on day one. A very impressive debut on the ASX and a very tight register. 
Bevan Slattery has a fantastic track record in these types of businesses ( I.T. type ) 
Let's hope that he does the same for NXT that he and Stephen did for PWK!

Regards
bazollie


----------



## deceit (10 January 2012)

Anyone looking at these stocks? a quick post to probe some thoughts 

Promising outlook ahead in my view.

They have just been approved for by the WA government to commence build on their first Perth datacentre: http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01258446

They commissioned their first datacentre (DC) in Brisbane in October, 4 more going live in 2012.

NextDC is focusing on energy efficient DC with good green credentials. 
There is a huge hole in the Australian DC in this space as the increase in demand is not being satisfied at an appropriate rate.

They have major datacentre projects in most capital cities, inclusive of a ASIO-T4 rated secure DC in Canberra. Current Australian Govt IT reform calls for consolidation of some government computer systems in the 'cloud' utilising DCs such as the ones that NextDC will be commissioning.



bazollie said:


> ....Bevan Slattery has a fantastic track record in these types of businesses ( I.T. type )
> Let's hope that he does the same for NXT that he and Stephen did for PWK!




As mentioned above by bazollie, Bevan has a good record. PWK aka pipe networks had an amazing run before being bought out by TPG in 2010 for around $373 Mln

NextDCs Address to shareholders late last year: http://www.nextdc.com/attachments/article/32/4225k2nd40fggh.pdf

Unfortunately I missed the initial offering at $1/share and bought a parcel at $1.50 and another at $1.57.


----------



## robusta (10 January 2012)

Keeping a close eye on NXT and looking to buy on any sp weakness.

I do like that contracts will be inflation linked.


----------



## ChrisJH (6 March 2013)

Anyone watching this stock? It's jumped about 40 cents in the last week or two, wish I had of bought in when I started watching it; can't understand why it has gone up so much though.


----------



## Stockspy (18 May 2013)

ChrisJH said:


> Anyone watching this stock? It's jumped about 40 cents in the last week or two, wish I had of bought in when I started watching it; can't understand why it has gone up so much though.




Some discussion of government initiatives for cloud based business utilisation. May benefit Canberra D.C. Also announcement about structural completion of Sydney D.C. and it's projected late 13 completion may have kicked up s.p.


----------



## Knobby22 (18 May 2013)

I have worked on designing infrastructure for data centres. I would worry that they may hire someone incompetent. 

A data centre that does not have all the fail safes and can be trusted to operate are completely useless. It is a growing business but I would not be surprised if they mucked it up.


----------



## kenny (26 May 2013)

Excuse the Devil's Advocate approach.

I don't understand what NXT has as a point of difference to the established players such as Equinix. 

http://www.equinix.com/locations/australia/australia-data-centers/

Also, what are the barriers to entry? I mean apart from stumping up the cash to build the centre and staff it?

I can see the need for secure external storage of ever increasing data volumes with a stable power supply. But how does NXT plan to take market share from the incumbents?

Cheers,

Kenny


----------



## skc (26 May 2013)

kenny said:


> Also, what are the barriers to entry? I mean apart from stumping up the cash to build the centre and staff it?
> 
> I can see the need for secure external storage of ever increasing data volumes with a stable power supply. But how does NXT plan to take market share from the incumbents?
> 
> ...




NXT doesn't really need to take market share away from incumbents - as long as the market demand itself growing at faster rate than supply (i.e. new DCs being put up).

There's little barrier to entry. But there's probably also little incentive to change once you've picked your data center - provided that the service is up to scratch of course.

With investing in NXT you can quite easily work out a required return. The key variable is the growth aspect (and how they fund it). Spinning off centres and recycling capital in this space is a newish approach and will be interesting to see if it works out.


----------



## kenny (26 May 2013)

I agree it's a growing sector especially with the take up of cloud services in many businesses. Mobile app use will drive it too I guess.

I've only just started looking at NXT so have no idea about values yet. Any pointers to head me in the right direction would be appreciated. If following-the-management approach has merit, Bevan Slattery did well with PIPE and the early years for NXT before stepping back to focus on his new venture, SubPartners.

The Asia Pacific Data Centre spin off was well timed to attract yield chasers and as you say, skc, recycle much needed capital. An independent Australian provider of data centres may well appeal to certain customers.


----------



## Country Lad (8 June 2013)

kenny said:


> An independent Australian provider of data centres may well appeal to certain customers.




And to investors.  New customer $60 million revenue over 5 years and investor update resulted in a 13% share price jump.

A bit unexpected, I was ready to act on stop at $2.29

Cheers
Country Lad


----------



## McCoy Pauley (9 June 2013)

Darn it.  I was looking to buy in at around the $2/share point but always put off my purchase.  I do query whether this will be a good long-term investment though.  It seems to be a very capital-intensive business, and unless NXT locks in its customers to long-term contracts, there seems to me to be a risk of low switching costs and therefore low barriers to entry.


----------



## Country Lad (9 June 2013)

McCoy Pauley said:


> It seems to be a very capital-intensive business, and unless NXT locks in its customers to long-term contracts, there seems to me to be a risk of low switching costs and therefore low barriers to entry.




I can't go along with that.  

It doesn't matter who the competition is, the capital costs will be very similar, even if the prospective customer decides to have the facility in-house.  So competitors are in the same boat but NXT at least has the cash for more capital expenditure. 

Their target is large corporations which they are signing up for 4 or 5 year contracts plus options.  For that customer to then switch at the end of the period will be no quick 'n easy task, disruptive and expensive, so as long as NXT meets customer expectations, there will  be no reason to switch.

I like the business model.

Cheers
Country Lad


----------



## tinhat (13 June 2013)

Country Lad said:


> And to investors.  New customer $60 million revenue over 5 years and investor update resulted in a 13% share price jump.
> 
> A bit unexpected, I was ready to act on stop at $2.29
> 
> ...




I am always interested to see the patterns you mark up on your P&F charts. This stock has been on my watch list for a couple of years now but I've never pulled up a P&F chart for it.


----------



## McCoy Pauley (14 June 2013)

Country Lad said:


> I can't go along with that.
> 
> It doesn't matter who the competition is, the capital costs will be very similar, even if the prospective customer decides to have the facility in-house.  So competitors are in the same boat but NXT at least has the cash for more capital expenditure.
> 
> ...




Fair enough.

But having advised a number of clients in this field, I suggest that switching costs may not be as high as you think.  Customers should be insisting on their service providers make it as easy as possible to extract their data to avoid problems of "vendor lock-in", and those service providers do that in most situations.

NXT is not the only provider of data center infrastructure in Australia, and I'd say that the market is becoming crowded with quite a few choices available.

I'd be watching carefully to monitor their utilization rates, if they make that available. There will be a point where it becomes profitable for NXT, and if the utilization rate drops below that point, then trouble will likely follow.

Only my opinion.


----------



## Huskar (14 June 2013)

McCoy Pauley said:


> But having advised a number of clients in this field, I suggest that switching costs may not be as high as you think.  Customers should be insisting on their service providers make it as easy as possible to extract their data to avoid problems of "vendor lock-in", and those service providers do that in most situations.
> 
> NXT is not the only provider of data center infrastructure in Australia, and I'd say that the market is becoming crowded with quite a few choices available.




Always very interesting to hear someone's view who is close to the business.

Is Macquarie Telecom in the same market or do they have distinct points of difference - I have never quite been able to work it out. Who would NXT's other main competitors be?

And isn't Amazon Web Services going to blow all of them away in any case?..


----------



## Ves (14 June 2013)

McCoy Pauley said:


> NXT is not the only provider of data center infrastructure in Australia, and I'd say that the market is becoming crowded with quite a few choices available.



I believe there are a number of international entrants to this space in Australia with very deep pockets, indeed.


----------



## McCoy Pauley (19 June 2013)

Huskar said:


> Always very interesting to hear someone's view who is close to the business.
> 
> Is Macquarie Telecom in the same market or do they have distinct points of difference - I have never quite been able to work it out. Who would NXT's other main competitors be?
> 
> And isn't Amazon Web Services going to blow all of them away in any case?..






Ves said:


> I believe there are a number of international entrants to this space in Australia with very deep pockets, indeed.




Microsoft also is getting into the game here in Australia some time in the future, but I believe that's only to support their clients that use SharePoint and Azure, not as a general data centre provider.

I've also heard that Amazon Web Services are making a decent splash into Australia.  I also believe that Telstra is another company that's looking at this area of the market, to support its cloud computing applications.

There are some private operators that I'm aware of in Australia, including Interactive and Dimension Data, who offer the same or similar services to NXT.  They might not be quite on the same scale as NXT, but they have a decent head start on NXT.

I wish NXT all the best, as I think that there is definitely space in the market for a well-run data centre provider, but I'm not sure that it'll have a big profit margin.


----------



## Huskar (21 June 2013)

McCoy Pauley said:


> Microsoft also is getting into the game here in Australia some time in the future, but I believe that's only to support their clients that use SharePoint and Azure, not as a general data centre provider.
> 
> I've also heard that Amazon Web Services are making a decent splash into Australia.  I also believe that Telstra is another company that's looking at this area of the market, to support its cloud computing applications.
> 
> ...




Some interesting reading here on AWS and its potential impact:

http://www.itnews.com.au/News/326103,amazon-in-australia-the-industry-impact.aspx


----------



## McCoy Pauley (30 August 2013)

NXT announced this morning that its share purchase plan will be withdrawn due to volatility in the share price.  It has pulled back almost 10% during the month of August from a high of $2.80/share to $2.42/share this morning.


----------



## tinhat (31 August 2013)

Huskar said:


> Some interesting reading here on AWS and its potential impact:
> 
> http://www.itnews.com.au/News/326103,amazon-in-australia-the-industry-impact.aspx




I've thought a bit about investing in data centres such as NextDC and Data3,  Macquarie Telecom but I think the industry is too contestable and that in the long run the only margins that will be defendable are achieved either through economy of scale or servicing market niches (and off the top of my head I can't think of any niches).

I've been involved in setting up one AWS instance (Amazon) and it is amazing how easy and quick it is to deploy a virtual linux machine in their cloud.

To a large degree cloud computing services, such as AWS are delivering a generic product - a virtual machine running either Windows or Linux.


----------



## Ves (31 August 2013)

tinhat said:


> I've thought a bit about investing in data centres such as NextDC and *Data3*,  Macquarie Telecom but I think the industry is too contestable



DTL don't own and run data centres, by the way!


----------



## tinhat (31 August 2013)

Ves said:


> DTL don't own and run data centres, by the way!




Oh right, thanks. Who was I thinking of I wonder? Macquarie Telecom, NextDC and the other one! : Sorry to go off topic.


----------



## Ves (31 August 2013)

tinhat said:


> Oh right, thanks. Who was I thinking of I wonder? Macquarie Telecom, NextDC and the other one! : Sorry to go off topic.



Possibly ASZ.    Also might be interesting to note that NXT changed their ownership structure and now lease their data centres off the demerged listed trust AJD.


----------



## McCoy Pauley (25 February 2014)

Almost six months on and NXT has basically retraced down to where it was before it announced its good news.  May give it a closer look now that it's retraced.


----------



## McCoy Pauley (27 February 2014)

Half-year report out.  Haven't seen the numbers yet, but they must have been impressive.  Share price has popped almost 6.5% today.


----------



## VSntchr (27 February 2014)

McCoy Pauley said:


> Half-year report out.  Haven't seen the numbers yet, but they must have been impressive.  Share price has popped almost 6.5% today.




Without analysing this one it looks pretty obvious that utilisation rates are still pretty low and the small increase they have provided have given the market hope that when they start to really take off that the bottom line will swell quite nicely. The revenue growth looked pretty good.


----------



## galumay (12 February 2017)

I dont believe Little Hedge understand the sector sufficiently. Their assumptions about the industry are not consistent with my understanding and knowledge of the sector. Tinhat makes some relevant points about the potential problems for companies in this sector.


----------



## Little Hedge (12 February 2017)

Thanks Galumay. Whilst there are potential risks from an increase in competition in the DC market we see the market for DC's growing rapidly enough to support NXT and it's competitors without significantly damaging margins. We like that NXT has a head start on Equinix (and Airtrunk) in terms of building out it's footprint in Australia and believe a consolidation is a real possibility (Equinix being the obvious buyer).


----------



## nulla nulla (8 March 2017)

Someone likes it. Share price flat lining on moderate volumes then a 12% spike in one day followed by a 6.00% spike the following day. Although I think the previous poster may have it wrong as to which company had the head start it would seem that "someone" has rated it a buy or there could be a takeover rumour circulating?


----------



## bigdog (31 August 2018)

NXT  31/08/2018 8:04:06 AM 4 
	

	
	
		
		

		
		
	


	







 FY18 Results Announcement

ASX Release 31 August 2018

*FY18 Record Results*
NEXTDC Limited (ASX: NXT) (“NEXTDC” or “the Company”) today announced its financial results for the
full-year ended 30 June 2018 (“FY18”).

*FY18 financial highlights*
 Revenue of $161.5 million vs guidance range of $152-158 million (FY17: $123.6 million)
 Underlying EBITDA1,2 of $62.6 million vs guidance range of $58-62 million (FY17: $49.0 million)
 Capital expenditure of $285 million vs underlying guidance range of $307-327 million3 (FY17: $159
million)
 Statutory net profit after tax of $6.6 million (FY17: $23.0 million4)
 Operating cash flow of $33.4 million (FY17: $44.9 million)
 Cash and term deposits of $418 million at 30 June 2018

Subsequent to 30 June 2018, the Company raised $300 million in the form of Notes IV, bringing its pro-forma cash and term deposits balance to $718 million. NEXTDC also continues to have access to senior debt facilities of $300 million, which currently remain undrawn.

Commenting on the FY18 financial results, Mr Scroggie, Chief Executive Officer said:
“We’re very pleased to report today’s results, with the Company achieving FY18 revenue and EBITDA above the top end of its upgraded guidance range. These results demonstrate NEXTDC’s continued strong growth and when combined with pro forma liquidity of more than $1 billion, the Company is extremely well placed to continue taking advantage of exciting growth opportunities.”

*Business performance*
As at 30 June 2018:
 Contracted utilisation up 28% to 40.2MW (30 June 2017: 31.5MW)
 Number of customers up 26% to 972 (30 June 2017: 772)
 Interconnection5 (cross connects) up 37% to 8,671 (30 June 2016: 6,342)

Commenting on the Company’s sales performance, Mr Scroggie said:
“We continue to experience strong demand for NEXTDC’s premium data centre services, with the Company experiencing not only strong growth in contracted utilisation, but also adding a record number of more than 2,300 interconnections during FY18. Furthermore, with NEXTDC currently in advanced negotiations in relation to further large customer opportunities, we expect to carry this strong momentum into FY19.”

*Development activity*
 B2 (Brisbane) and M2 (Melbourne) facilities opened for customer access
 S2 (Sydney) construction underway and remains on track to open in 1H19 for customer access with an initial capacity of 6MW and an accelerated development of an additional 8MW of capacity
 P1 (Perth) third data hall opened with development underway on the fourth and final data hall
 Announced three new sites at S3 in Sydney, M3 in Melbourne and P2 in Perth, with design and
development work to commence immediately for P2
 Expanded cloud offerings from anywhere in Australia through Oracle Fast Connect and Google Cloud
Platform via the NEXTDC AXON network, in addition to existing seamless connectivity to Amazon Web
Services, Microsoft ExpressRoute, IBM Cloud and other cloud on-ramps

*Setting new industry standards*
 B2 and M2 are the first Australian data centres, and the first Asia Pacific colocation data centres, to
achieve Uptime Institute (UTI) Tier IV Certification of Constructed Facility (TCCF), in recognition of their
exceptional fault tolerance
 P1 and S1 both certified global best practice UTI Gold Certification of Operational Sustainability
 In August 2018, B2 also received UTI Tier IV Gold Certification of Operational Sustainability, becoming
the first data centre to achieve the Tier IV Operational Gold rating in the southern hemisphere
 S2 is designed to achieve Tier IV TCCF for its opening in 1H19
 B2, M2 and S2 are designed to achieve an industry-leading NABERS 5-star rating for energy efficiency

Commenting on the Company’s achievement in setting new industry standards, Mr Scroggie said:
“I am incredibly proud of the outstanding milestones achieved by our team in FY18 and NEXTDC continues to raise the bar for the industry. The past twelve months has seen the Company deliver Australia’s first UTI certified Tier IV constructed facilities, deliver the industry’s most efficient NABERS 5-star designed data centres that certify record low PUEs as well as demonstrate operational excellence via UTI Tier III Gold Certification of Operational Sustainability across P1 and S1 and now delivering another benchmark first with UTI Tier IV Gold Certification of Operational Sustainability for B2.”


----------



## greggles (14 September 2018)

Bottom in for NEXTDC Limited following its share price decline in the wake of their FY18 financial results?

After falling from around $7.50 to a low of $5.78, NXT has consolidated around the $6 mark and appears to be forming a base at current levels. Volume is declining as the selling peters out and buyers move back in.

NXT is up 3.03% to $6.13 so far today.


----------



## bigdog (8 October 2018)

NEXTDC Limited (ASX: NXT) On-Market Takeover Bid for Asia Pacific Data Centre Group (ASX: AJD)
--- *Trading Status* PreOpen






Asia Pacific Data Centre Holdings Limited and Asia Pacific Data Centre Trust
NEXTDC Limited (ASX: NXT) On-Market Takeover Bid

Asia Pacific Data Centre Group (ASX: AJD) and NEXTDC Limited (ASX: NXT) have entered into a bid implementation agreement (Bid Implementation Agreement) relating to an, all-cash, on-market takeover bid by NEXTDC Limited (NEXTDC) to acquire all of the securities in AJD which it does not already own (NEXTDC Offer). NEXTDC currently holds an interest in 29.2% of the AJD securities.

The Bidder's Statement, which NEXTDC released via the ASX platform today, will be sent to AJD securityholders in the next 14 days. AJD will then issue its Target's Statement within 14 days.

The offer price under the NEXTDC Offer is $2.00 cash per security (Offer Price).
AJD securityholders will also be entitled to a special distribution of $0.02 per security payable on 14 November 2018, with a record date of 12 October 2018 (Special Distribution). To ensure they receive the Special Distribution, AJD securityholders must be on the AJD register of securityholders on 10 October 2018. Accordingly, AJD securityholders who wish to receive their Special Distribution, should not dispose of their AJD securities until the securities trade "ex" the Special Distribution. It is expected that the AJD securities will trade "ex" the Special Distribution on 11 October 2018.

AJD securityholders will be entitled to the Special Distribution irrespective of the NEXTDC Offer. The NEXTDC Offer will also have no impact on the September quarterly distribution of $0.02 per security, which was declared on 20 September 2018 and is payable on 25 October 2018, with a record date of 28 September 2018.

NEXTDC has stated it will offer to buy on market all securities which it does not already hold at the Offer Price from today until the close of the NEXTDC Offer.

===================================================================
*Currently two buyers for AJD 81,656,599 shares at $2.00*


----------



## bigdog (12 October 2018)

SP $6.20 at 10:56 today


----------



## bigdog (17 October 2018)

ASX announcement today
17/10/2018 9:18:25 AM   APDC Group Takeover Bid - Bankwest Default






Share price up!!


----------



## bigdog (12 November 2018)

ASX Announcement today
12/11/2018 8:27:00 AM  *Sydney S2 - 14MW Contracted Commitments*

ASX Release
12 November 2018
Sydney S2 – 14MW Contracted Commitments

NEXTDC Limited (ASX: NXT) (“NEXTDC” or “the Company”) is pleased to advise that its new Sydney S2
data centre has now increased its contracted commitments by approximately 9MW to more than 14MW (47% of total planned capacity) since 30 June 2018.

The S2 data centre remains under development and on track to open in 1H19, with critical infrastructure
build out expected to continue for at least another two years.

Revenue recognition for the new contracted commitments will ramp up during FY20, with the full run rate impact expected to be recognised in FY21.

*S2 capacity*
At the start of S2’s construction, the site’s initial planned capacity at opening was only 6MW (phase 1).

At the Company’s FY18 results, an additional 8MW of new capacity was announced to reflect demand
expectations at the time (phase 2).

Given recent positive developments in the Sydney market, NEXTDC will now bring forward an additional
8MW (phase 3). As a result, the current capacity under design and development for S2 is now 22MW of the 30MW total planned capacity. This will not change the Company’s existing FY19 capex guidance (between $430-$470m) as the additional capex will form part of the additional capacity to be delivered in FY20.

Commenting on the new contracted commitments at S2, Mr Craig Scroggie, Chief Executive Officer said:

“We advised the market at the time of FY18 results that the Company’s sales pipeline was very strong and the timing of large sales to the hyperscale cloud market would be unpredictable given the long run nature of the sales cycle. We’re very pleased to have now locked in material MW contracted commitments against these expectations.

The demand for our data centre services continues to accelerate and exceed our expectations, particularly in the Sydney market, yet requires discipline and patience as the nexus between the hyperscale capacity planning, site development, infrastructure deployment and revenue recognition can in practice be 2-3 years for these very large hyperscale developments. This is all part of NEXTDC’s digital infrastructure business model, which continues to build long term value through contracted capacity and tangible asset backing.”

*About S2*
S2 is planned to be the third Tier IV data centre constructed in the Australian market and the first Tier IV data centre in Sydney. Furthermore, S2 is also scheduled to undergo the Tier IV GOLD operational sustainability certification. NEXTDC has already delivered the first two Tier IV design and construct certified data centres in Australia, being M2 Melbourne and B2 Brisbane, with B2 having already achieved the highly acclaimed Tier IV GOLD operational sustainability certification.

S2 represents the Company’s first hyperscale high-rise data centre. As part of NEXTDC’s ongoing focus on environmental sustainability, the facility will feature independent benchmarking of cooling efficiency with a full year target PUE of 1.29 and a seasonal best target PUE of 1.15, driving new levels of efficiency and sustainability. S2 will also feature our next generation of biometric security technology with those security systems being supported by our 24/7 security and around the clock onsite technical capabilities.

Building on the second generation of development with M2 and B2, S2 reflects NEXTDC Continuous
Development Methodology. In this regard, S2’s highly modular design delivers just in time capacity with over 75% of the critical plant being manufactured and tested off-site, minimising deployment and commissioning times and accelerating productivity.


----------



## Paul_Fox (12 December 2018)

As someone who works in the IT industry I have been watching NXT closely. I feel they have a lot of potential and are going about everything the right way for further expansion.


As of today they have Brisbane 1 and 2, Melbourne 1 and 2, Canberra 1, Sydney 1 and Perth 1 online and making money. Sydney 2 is due for completion early-mid next year.

They have also announced they are preparing for Sydney 3, Perth 2 and Melbourne 3.


The Sydney 2 facility has so much demand waiting for it they are completing phase 1 and 2 at the same time.

When DCs are built they are usually built in phases based on demand. There is no point maxing out your operational rack space if you have no customers in there (or contracted) yet as you’d be paying costs for things you aren’t turning a profit on yet. While they have the raw floor space already built into the facility, a new phase would consist of the aircon units, battery backups, electrical upgrades, internal cross connect upgrades, potentially even another backup generator. If you buy them before you have enough demand, not only do you incur the capital cost of the goods there is also the ongoing maintenance. This is why they are built in phases.


Perth 2 is right next to the CBD and has just been approved by council for construction. Demand for P2 has already started with the new INDIGO cable to Singapore and as a result they will be installing some pre-fab shipping container DCs for this comms link which will be fully built into and integrated with the new facility when its finished. This just creates more demand for local DC space in Perth which NXT are capitalising on.


Building new data centres costs a lot of money. With that being said they are still turning a profit and re-investing it back into the business. I can only assume that they are wanting to become the next Equinix, starting in Australia and more than likely expanding into Asia then the rest of the world. The INDIGO cable that terminates into P2 and cross connects into Sydney would be a good boost to interconnection should they announce plans for a DC in Singapore.


I am only seeing good things coming out of this company. The management care about their staff and their development (the last 3 years upper management forewent pay rises to pay their staff more). They are also investing in green power in the hopes of offsetting their power usage to be carbon neutral.


Given the current share price of $6.24 today, this might be a bargain price for a growth stock.


Disclaimer: Held


----------



## Miner (16 December 2018)

Paul_Fox said:


> As someone who works in the IT industry I have been watching NXT closely. I feel they have a lot of potential and are going about everything the right way for further expansion.
> 
> 
> As of today they have Brisbane 1 and 2, Melbourne 1 and 2, Canberra 1, Sydney 1 and Perth 1 online and making money. Sydney 2 is due for completion early-mid next year.
> ...




Hello @Paul_Fox 
Great informative positing. I do not hold and have been watching NXT for some time.
I do not know how I should call a stock a bargain price with PE is 280.
My knowledge is shallow and appreciate to know your logics to call $6.24 for NXT is a bargain.
Thanks


----------



## bigdog (1 February 2019)

Motley Fool reports today

The *NEXTDC Ltd* (ASX: NXT) share price has zoomed 19% higher since this time last year. Investors have been buying the data centre operator’s shares after it reported yet another year of strong growth and pulled forward capacity expansions in response to increasing demand. Demand has been so strong that NEXTDC has seen customer numbers increase by a compound annual growth rate of 49% and interconnections by a compound annual growth rate of 76% over the last five years. I expect similarly strong growth over the coming years due to the cloud computing boom, potentially making it a good option for investors. Though, given the premium its shares trade at, it is a high risk one.


----------



## bigdog (22 February 2019)

Motley Fool reports
https://www.fool.com.au/2019/02/22/2-asx-tech-companies-with-massive-growth-potential/

*2 ASX tech companies with massive growth potential*
Michael Guinery | February 22, 2019 

*NEXTDC Limited  (ASX: NXT)*
NEXTDC is a technology company enabling business transformation through innovative data centre outsourcing solutions, connectivity services and infrastructure management software.

The NEXTDC share price has benefitted from the increasing need for data warehousing.  As data continues to grow, the need to store that data also increases and therefore the company receives economic tailwinds to its earnings.

NEXTDC is Australia’s largest hyperscale data centre solutions provider and currently has 8 data centres across the country, with 3 more in development.  The company operates on a “Build it and they will come” type model, where there are large costs associated in building the centres before it receives a return on investment through contracts with customers.

The issue NEXTDC faces is maintaining utilisation of the data centres, as they’re an expensive fixed cost and need to be generating revenue.  Whilst the tailwinds are currently there for more data flowing in if the market gets saturated with centres than they may struggle to charge any sort of premium for service.

NEXTDC currently has a P/E of 271 and is generating earnings per share of 2.2c.  It has a market capitalisation of ~$2.4 billion.

I hold


----------



## qldfrog (22 February 2019)

I will  only add one thing:
I know the domain, i know the company, and its management
While i could do some speculation on it, quick buy and sell i would never buy these shares and call it an investment
Dig a bit on the subject, yes cloud is big etc but absolutely no advantage, a price taker of a resold commodity, management..well google them..next enron at this valuation?
My 2c please dyor


----------



## bigdog (27 February 2019)

ASX ANN today


----------



## bigdog (27 February 2019)

SP is down after ASX ANN


----------



## Trav. (4 May 2019)

I might look for an entry next week on this one. Looks promising and a Change in substantial holding from CGF was released on the 18/4 indicating they have been buying on the dip (holding 7.42%).


----------



## bigdog (29 August 2019)

NXT announcement to day uploaded below
29/08/2019 8:07:29 AM 3  * FY19 Results Announcement*

The problem was the $9.8 million loss reported


----------



## bigdog (18 September 2019)

*Rain, hail or shine, it’s pouring CEO bonuses, ACSI report finds*










The problem was the $9.8 million loss reported

*Rain, hail or shine, it’s pouring CEO bonuses, ACSI report finds*

*



*
Even as the banking royal commission was lifting the lid on bad behaviour, our biggest companies were filling the pockets of their CEOs with generous bonuses, according to new research.

*Peter Taylor*, Herald Sun
September 16, 2019 11:59pm

The generous bonuses being lavished on the nation’s leading executives suggest there is a “culture of entitlement” in corporate Australia, according to a major superannuation industry group.

And Australian companies are not getting the message that bonuses should be variable rather than merely being “fixed pay under another name”, the group says.

The Australian Council of Superannuation Investors says just one chief executive at the nation’s top 100 listed companies failed to receive a bonus in the 2018 financial year — an all-time low in records going back to 2001.

Six chief executives did not receive bonuses in the 2017 financial year.

The group will today release its 18th annual report scrutinising pay for chief executives across the ASX 200 index, which broadly covers the 200 biggest listed companies in Australia.

Among the top 100 companies, the median bonus given to chief executives clocked in at 70 per cent of their maximum entitlements in the 2018 financial year, the report says. That figure has barely changed in four years.

Only 7 per cent of chief executives received less than 30 per cent of their maximum entitlements.

“The way bonuses are being handed out suggests there is a culture of entitlement whereby supposedly ‘at risk’ pay is not very risky at all,” ACSI chief Louise Davidson said.

Ms Davidson noted the group’s report covered a year when the financial services royal commission was underway, and the inquiry had revealed evidence “executives were not being held accountable for poor conduct”.

It also followed a jump in the rate of “first strikes” against pay reports during annual meetings hosted by top listed companies, she said.

Under Australian corporate law, companies receive a strike if their remuneration reports receive “no” votes of 25 per cent or more.

If a company receives a strike in successive years, shareholders can then vote for a spill of the board.

“Clearly, corporate Australia is not getting the message that bonus payments should be variable and awarded for stretch performance, rather than being fixed pay under another name,” Ms Davidson said in a statement.






079


----------



## qldfrog (19 September 2019)

Read my post in February if you are surprised
Some scams are legal...


----------



## Trav. (25 January 2020)

NXT having a nice run lately and ATH of $8.18 might be insight as a number of stocks are going gang busters.

NXT broke through the resistance line and ran.  run forest run !!






holding


----------



## Dona Ferentes (17 February 2020)

*NEXTDC Ltd *

A note out of *Citi* reveals that its analysts have retained their *buy* rating and lifted the price target on this data centre operator’s shares to $9.10. According to the note, the broker expects its short term earnings growth to be driven by its contracted order book. After which, it sees NEXTDC benefiting from more workloads moving to the cloud and increasing data consumption


----------



## rnr (7 March 2020)

Trav. said:


> NXT having a nice run lately and ATH of $8.18 might be insight as a number of stocks are going gang busters.
> 
> NXT broke through the resistance line and ran.  run forest run !!
> 
> holding




Hi @trav,
Maybe you bailed out of this stock when things got a bit ugly in late Feb, however if you are still holding, then you should be happy with the end result.
Cheers,
Rob


----------



## Dona Ferentes (7 March 2020)

There's always two sides to a story, and it's interesting looking at the graph, and then casting an eye back a while.  From early Feb 2019, :


> In many ways, NextDC is perfect fodder for the shorts: a toppy valuation, which some argue is more befitting a technology company than a technology infrastructure player; increasing competition and the prospect of falling prices; and the move to attract larger clients who will be able to demand better pricing.
> 
> Newgate Capital Partners' Tim Hannon is one investor who is short NextDC. "The return expectation of 20 per cent for a data-centre operator is double that of the United States' companies, and it makes no commercial sense given the maturity of the industry," he says.



 Now all those reasons may well have been valid, but, a year on, where are but 25% higher. Tough luck, _short fella_

Not that there aren't challenges. I've held MP1 for a while ridden from $2 to $11 and taken profits along the way (free carry now), plus have seen MAQ move away from telephony to data, so I haven't felt the need to take a position in NXT. Its an explosive space and with the continual move to the cloud and uptake of IoT and analytics, robotics and AI, *data is growing at*, some say,* 100% pa.* Now what does this mean, other than a snapshot of centres shows capacity utilisation at 30, some say closer to 20, per cent.  But that's full up, because by the time a new centre is planned, utilisation will be close to 100%.

And then there's the call on cash. For growth, expect underwritten institutional placements and capital raises to buy any new properties to house data centres. Pretty easy to announce record revenues and record earnings before interest, tax, depreciation and amortisation (EBITDA) with such growth.

And another factor; power and cooling requirements for the IT equipment. this is by no means a small contributor and, globally, data centers used roughly 416 terawatts (4.16 x 1014 *watts*), or about 3% of the total electricity generated around the world.


----------



## Trav. (7 March 2020)

rnr said:


> however if you are still holding, then you should be happy with the end result.
> Cheers,
> Rob




Unfortunately not holding any more mate. But I do have a couple that I would gladly swap it with


----------



## Dona Ferentes (27 August 2020)

NEXTDC is expecting revenue growth of at least 20.5 per cent for 2021, as momentum builds in the business thanks to the ongoing acceleration of enterprises' digital transformation agendas.

Revenue increased by 14 per cent to $205.2 million for the year to June 30, coming in at the upper end of its guidance. Earnings before interest, tax, depreciation and amortisation grew of 31 per cent to $103.6 million.

Data centres in Sydney, Melbourne, Perth, Brisbane and Canberra, the business added 17.4 megawatts (MW) in contracted utilisation - up 33 per cent to 70MW - with new sales of 17.8MW before adjusting for a one-off clawback of wholesale capacity of 0.4MW.

NEXTDC builds hybrid data centres, which cater to both the retail and wholesale customers. Retail data centre deployments are usually smaller contracts, which rely on the data centre providing additional services like connectivity to cloud providers and on-site staff. Wholesale contracts are those where businesses with large footprints, like banks, rent the space and power but provide their own services.

The business is currently building its third locations in Sydney and Melbourne and has earmarked $380 million to $400 million of capital expenditure in 2021.

Its major new contract commitments were all centred on its M2 facility, thanks to "hyperscale" activity starting to emerge for the location. Hyperscale contracts, or "hyperscalers", are a form of wholesale contract. At the moment there are three main hyperscalers – Amazon Web Services, the Google Cloud Platform and Microsoft's Azure.

During the 2020 financial year the company's *net loss *expanded from $9.8 million in 2019 to $45.2 million.

It brought onboard 180 more customers, taking its total number to 1,364.

For 2021, the business forecast revenue from its data centres to be in the range of $242 million to $250 million and underlying EBITDA of $125 million to $130 million, compared to $104.6 million in 2020


----------



## qldfrog (27 August 2020)

Dona Ferentes said:


> During the 2020 financial year the company's *net loss *expanded from $9.8 fg in 2019 to $45.2 million.



If not able to make money now,when?


----------



## Dona Ferentes (27 August 2020)

correct !!


----------



## galumay (29 August 2020)

qldfrog said:


> I will  only add one thing:
> I know the domain, i know the company, and its management
> While i could do some speculation on it, quick buy and sell i would never buy these shares and call it an investment
> Dig a bit on the subject, yes cloud is big etc but absolutely no advantage, a price taker of a resold commodity, management..well google them..next enron at this valuation?
> My 2c please dyor




An old post, but accurate assessment, there is not a single metric to like in this business, yet the SP has had a stellar run over the last 4 years. The stonk market is hard!


----------



## bk1 (29 August 2020)

That is one point of view, however, NXT are not the only ones enjoying stock market appreciation. MAQ and MP1, to name just two, enjoy the same sort of metrics. Covid 19 is only going to magnify the growing dependency on cloud computing.
I hold NXT.


----------



## qldfrog (29 August 2020)

by the same aspect, you could invest in an A/C builder, the more cloud servers, the more A/C;
It seems everyone need their ENRON


bk1 said:


> That is one point of view, however, NXT are not the only ones enjoying stock market appreciation. MAQ and MP1, to name just two, enjoy the same sort of metrics. Covid 19 is only going to magnify the growing dependency on cloud computing.
> I hold NXT.


----------



## galumay (30 August 2020)

bk1 said:


> That is one point of view, however, NXT are not the only ones enjoying stock market appreciation. MAQ and MP1, to name just two, enjoy the same sort of metrics. Covid 19 is only going to magnify the growing dependency on cloud computing.
> I hold NXT.




Yes, but if the business is so awful that all the metrics are dismal its just gambling and the greater fool theory. There is no investible business here, just price action. Increased activity in cloud computing doesnt mean there are viable margins.


----------



## qldfrog (30 August 2020)

I recopy my initial input
_While i could do some speculation on it, quick buy and sell i would never buy these shares and call it an investment_
My view is unchanged.i bought and sold since as part of some systems but this is not investing


----------



## peter2 (7 October 2020)

Interesting to read the past comments as I post the latest chart of NXT showing that price has gone from $7 to $12.50 inside nine months. 
NXT hardly buckled during the COVID selloff (Mar 2020).


----------



## galumay (7 October 2020)

Amazing disconnected price action from what is basically a REIT.


----------



## Dona Ferentes (12 November 2020)

and Joe Aston giving them a serve


> Seven months after data centre group NextDC spectacularly double-crossed some of its largest shareholders in a $672 million capital raising, those shareholders have delivered the board a salutary lesson.  ...... major long-term investors were left dumbfounded in April when NextDC diluted them in the placement by as much as 25 per cent (the ASX’s temporary, COVID-19 limit for dilutive raisings). Chief executive *Craig Scroggie*, with all of the institutional market cognisance of a carroty dilettante, personally curated the stock allocations to “zero out hedge funds and others that were looking to profit off the trade”. Pro-rata be damned. And by dilettante, we really mean rank amateur. Scroggie diluted substantial shareholders Ellerston Capital and Macquarie Investment Management, neither of which are hedge funds, while handing a whopping haul to Greencape Capital, which sold its entire allocation the same week. He diluted Parametric and Dimensional Fund Advisors. Not even an investment bank’s receptionist would mistake them for short sellers. And that’s just a taste of the senseless inequity.





> NextDC’s annual meeting is on Friday. On Tuesday, the company withdrew a resolution from the agenda seeking retrospective approval for the April capital raising. Shareholder approval would have the effect of resetting NextDC’s dilution limit under the ASX Listing. Put another way, the board wanted permission to dilute existing shareholders by an additional 15 per cent before April 2021 when they’d just finished diluting them by 25 per cent. Yeah, nah.
> NextDC’s board “decided to withdraw Resolution 5 following feedback from some shareholders”, the withdrawal notice read. “The board acknowledges these views and would like to thank shareholders for their engagement on the matter.” A masterful turn in understatement.





> And herein lies the most delicious part of Scroggie’s bungled “opportunity to really think deeply about the composition of the register” (deep thought not an endeavour he’s renowned for), as he put it in April. Under the Listing Rules, participants in the April raising are ineligible to vote on the AGM resolution to reset the dilution cap. By allocating all major shareholders even a measly handful of shares in the raising, Scroggie would have rendered them mute on this resolution. But the ginger maniac couldn’t help himself and gave a whole bunch of his owners zero. Rendering them the only shareholders with voting power on the resolution. And their engagement with the board on the matter is now concluded. It’s deadset fabulous...











						NextDC board rolled by 'zeroed out' shareholders
					

Major NextDC shareholders have delivered the board a salutary lesson.




					www.afr.com


----------



## bk1 (24 February 2021)

NXT reporting half year results after market today. Data centre services revenue up 27%, Underlying EBITDA up 29%.
Strong growth in customers and interconnections.
Contracted utilisation at 80%..............But still not in profit.


----------



## galumay (24 February 2021)

Still an underperforming REIT!


----------



## bk1 (27 August 2021)

NXT results, Revenue and EBITDA (u) both up over 20%, operating costs up by 16%, narrowed the profit and loss to $20M.
Continued expansion and increase in customers, but the market still doesn't like it.
Down over 4%  currently.


----------

