When I look at the current profit vs the MW utilised and extrapolate out as if the new DC's are full, I still get a very poor result. How come it isn't spitting out more EPS from the existing DC's, sufficient to avoid the large capital raising it recently did.
I also don't understand the "first mover advantage" premium that seems to be attributed to this company, as any later DC that is built uses newer lower power / higher performance / smaller size tech which makes it much more efficient. Existing DC's would surely become totally obsolete within 5-10 years if you can store the same amount of stuff in something a tenth of the size. If you say "but they can upgrade capacity as they go along", I just see that as further endless capex when the company isn't producing much EPS to start with.
Interested in holders thoughts or if anyone is an expert of some sort in DC's.
NXT Price at posting:
$2.49 Sentiment: None Disclosure: Not Held
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