Looks like the market is agreeing with you this morning, my fears about disappointment with the results were obviously misplaced. It now looks like we have a company which is relatively low-risk with good earnings potential in the medium term.
My question now though - to all those out there with more knowledge than me - is what the longer-term plan might be and the financial targets along the way?
So my starting assumption is that existing DC capacity keeps getting filled up along with current trends until there is essentially no more space in existing DCs (I accept that some DCs might fill up faster than others but let's ignore that for now).
So question (1) is what is the forecast earnings / profit profile at that point (i.e. steady state profit with no growth potential).
Question (2) is how, and when, the company is likely to decide they need to invest in more capacity to fuel future earnings growth, and what that means for us e.g. is there a Capital Raising requirement?
Thoughts welcomed and appreciated.
NXT Price at posting:
$2.40 Sentiment: Hold Disclosure: Held
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