Share Price Catalyst?, page-10

Yes Next DC is trading at a premium. Premium to what? Well earnings metrics aren't relevant at the moment so let's look at Price to Book value. P/Bk of Next DC is 1.4x (and Price/Tangible books value of 1.4x). This compares to a P/Bk of 4.2x for Equinix (and over 7x for Price/Tangible Book value for EQIX). So yes Next is trading at a premium to book value, but is still far cheaper than comps.

Fitting out capacity is capital intensive. But bringing forward that capex spend would be a positive in my view as it means that there is demand for that capacity (meaning that earnings are coming sooner rather than later). I doubt management would spent money on fitting out additional capacity only to have it lay idle for years on end. The only negative for shareholders I see in bringing forward capex is if a dilutive equity raising was required. Given the company has just raised $60m in debt a near term equity raising seems less likely IMO.

There is a huge amount of short interest in Next. I can understand if some investors don't believe the data centre story but to say Next is a sell when it is trading at a mild premium to book value and such a large discount to listed competitors just does not compute with me...