July is almost here......., page-2

You really need to calm down a bit here mate. I understand your disappointment and I am also not happy about the share price performance either but you seem to be obsessing over this a bit too much given the sheer number of posts you make. Im sure we will see an update from management soon. If they are running site tours for customers Im sure they would run one for a shareholder. If you are in Sydney why dont you call them up and ask them to give you a site tour?

The sites are late and that cant be changed. The original CEO is gone and that says that there was an issue with management. Also $1200-$1400 a day for directors is quite normal. Its $150 an hour. They would probably be helping to cover whatever short term gaps there may be and I doubt its a full time position. Some of the biggest shareholders are sitting on the board too and would be as equally concerned about spending as any other shareholder Im sure.

Now its not all doom and gloom either. I have posted here previously that it took NXT 18 months to report revenue, and it was a minuscule amount timed perfectly for their annual report. They really only started to see revenue well into their second year of operation. DXN have already been reporting revenue and they have announced new contracts to supply modular data centres to their customers. So to say that there have been no announcements about any new deals is not exactly true.

There were two sides to this business that we all invested in. There was colocation and the side that designs and builds modular data centres for their customers. A previous announcement said that they were the first company in the world to be awarded with Tier 4 certification for their modular data centres if I recall correctly. Not in Australia, in the world. Add that to the contracts they have been securing and it shows good and very positive progress on that front. There is some genuine engineering capability in place from the looks of it.

That is a massive market on its own and one that none of their colocation competitors are anywhere near. Its going to be estimated to be a $50 billion (USD) industry by 2025. They are going to be slap bang in the middle of massive 5G rollouts, not to mention IOT and the growth in edge networks. This is on top of their colocation offering.

https://www.missioncriticalmagazine.com/articles/92259-report-by-2025-modular-data-center-market-to-see-23-growth

People also forget that data centre delays hit NextDC too, and who can forget them selling out the properties from underneath shareholders as they scrambled to raise capital in the early days. Im not saying that this excuses DXN for missing their deadlines given what they committed to but it does demonstrate that this is a tricky business and its rarely smooth sailing for startups. If you want low risk, stick your money in index fund rather than giving yourself sleepless nights like this. Small caps tend to be a rocky ride.

Lastly, DXN also raised money to build bigger facilities than originally planned. They doubled the size of the facilities due to initial customer interest we were told. Their burn rate with the delays is obviously an issue but its not like all the capital raised went into operational overheads and salaries. If they are building bigger they are deploying more capital and if that translates to strong sales within a few months of opening then it would have proven to be the right decision. There will be a lot less to be angry about then.

Full disclosure, I invested in NXT early and I have topped up over the years but it took quite a while before we saw much movement with them too. I also only invest in tech because its what I understand and I hold a lot outside Australia because we have so many limited options here.