re capex assumptions I think current (already paid for) capacity is 20MB of a total 35.5MB. From what I understand the initial capex for capacity is higher than incremental capex requirement from here on in, ie the last 15.5MB won't cost as much as the first 20MB. I think NXT has several MB of capacity (5MB?) to sell before building out the remaining 15.5MB, meaning that capex could potentially be fully funded by a combination of cash on B/S, $30m debt facility, and revenue as utilisation ramps up. There's a bit of talk here around trading multiples also, I guess ultimately given that NXT is not EPS positive investors are buying their predicted future share of earnings, whether you measure that by P/S, PEG or P/Bk. It's worth noting that Equinix (although not totally comparable) is trading on a P/Bk of 3.4x vs NXT at 1.4x
NXT Price at posting:
$1.72 Sentiment: None Disclosure: Held
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