NXT - NEXTDC Limited

[qldfrog]

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]

ASX ANN today

 

[bigdog]

SP is down after ASX ANN

 

[Trav.]

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]

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]

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]

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

 

[Trav.]

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]

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]

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]

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.]

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]

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]

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]

correct !!

 

[galumay]

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]

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]

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

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]

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]

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