Ann: Becoming a substantial holder, page-5

I'm still optimistic about the long-term prospects, but I believe short-term sentiment has influenced the business's current situation. The new centre (IC3SW), along with the undrawn $450 million facility and capital raise, has altered the outlook and introduced some risks for me. While the business has the potential to triple in size, which would significantly increase margins, the added debt requires careful monitoring, especially given the construction challenges and overall volatility in the AI and tech sectors.

I’ve extended my investment thesis to a long-term horizon of 2-3 years to see earnings power double. Capital expenditures will be substantial until after FY26. However, there are strong tailwinds from the rising demand for AI data centres, the SaaS income stream, and key government client. I believe they can maintain their competitive advantage for the foreseeable future.

I'm holding my position and may consider buying more if there’s another downturn. I got into this late, with an average purchase price around $60, having overlooked it until it surged about seven times since 2016…nicely played.