I think for there to be any chance of a $5 in front of the share price within 12 months you will need a lot of things to align and go right, at the very least imo:
* Overall market well up (sentiment).
* Hit top of revenue/Beat revenue forecast - The reason I believe it will need to do that is for 2 reasons.
1. It will show us maintaining/accelerating revenue growth, it would be bad for sentiment to see a deceleration going into investing $441M across 3 new Data Centres is growth falls, it would raise serious questions about demand & fill rates for what are very large facilities.
2. It will be required if C1/P1 are to show decent sales growth.
* Significant revenue increase at C1/P1. (the company would be killing it if we were firing on all cylinders).
I personally give it a less than 2% chance because I don't see all of those factors coming together over the next 12 months.
Saying that I couldn't really care less about seeing a $5 in front of the SP in 12months (I'd actually probably sell out again if it got there as I believe it would have run to hard again).
In any event the only reason there is any angst at the moment is by people looking at the short-medium/term volatility and have totally unrealistic expectations of SP growth.
I'm more interested in seeing the business:
* Run well with the right key staff in place and continuing to invest in appropriate staff.
* Good Communication.
* Finance/Balance sheet looked after.
Of which I am overall very happy with.
I think Craig is excellent for the job.
Very happy with the capital management. From the AGM it sounds like this is an area that has been given a lot of thought. Their timing was excellent too and significantly de-risks the company too. We have already seen them spin the property assets off into a separate trust, issuing notes and raising capital at good prices.
Going forward over the next couple of years my major concerns are:
* Competition - oversupply while we are still in a high growth phase would be sub-optimal.
* Demand.
* Australian Economy (including possible housing slowdown).
* Chinese economy and its effect on ours.
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$14.51 |
Change
0.220(1.54%) |
Mkt cap ! $9.292B |
Open | High | Low | Value | Volume |
$14.25 | $14.62 | $14.19 | $28.12M | 1.942M |
Buyers (Bids)
No. | Vol. | Price($) |
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2 | 1597 | $14.51 |
Sellers (Offers)
Price($) | Vol. | No. |
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$14.55 | 37 | 1 |
View Market Depth
No. | Vol. | Price($) |
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2 | 1597 | 14.510 |
4 | 8872 | 14.500 |
1 | 50 | 14.490 |
1 | 4562 | 14.480 |
1 | 3051 | 14.470 |
Price($) | Vol. | No. |
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14.550 | 37 | 1 |
14.560 | 500 | 1 |
14.620 | 10000 | 1 |
14.650 | 1325 | 3 |
14.690 | 350 | 1 |
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