Smurph, being profitable is never a given. Remember the old adage, success breeds complacency, and complacency breeds failure. NEXTDC has only managed to be profitable for 12 months before dropping down to a loss again. Missing timelines, bad judgement on finance side, poor sales are all early warning signals. Blaming 360 capital and additional work for phase 3 expansion will be poor form (actually glad that did not come from management). Usage of the undrawn debt facility would worsen the financial position of the company and likely put it to a loss making tailspin very difficult to get out of. Trend of the industry has a decade ahead no doubt of it. Careful not to confuse industry trend with trend of the company. The market has high hopes for NEXTDC hence the high p/e ratio. And as owners, we all have the best interest of the company and breeding complacency in management would not be the best interest.
Side note: News today of the company director not knowing his shares being sold for a week is a bit worrisome... guy can't even manage his own affairs... though to his credit a nice profitable mistake.
NXT Price at posting:
$6.16 Sentiment: Hold Disclosure: Held
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