The reduction in debt interest rates is pretty old news - it has been the main cause of the positive rerating over over the last couple of months. In regard to expansion overseas I also think that has been put on hold with yesterdays press release that management are withdrawing the AGM motion to refresh the company's ability to issue up to 15% more shares without referral to shareholders. It looks like some of the larger shareholders have said lets just bed down the capital you have just raised before going after more. I think that is probably wise. They are very close to becoming NPAT positive. It would be better to use its own cash flow to expand rather than continuously diluting existing shareholders. A bit slower to reach its ultimate goals, but a bit more conservative in these uncertain times.
I think the drop in price is just Institutions rotating out of tech stocks into cyclicals. It was overdone yesterday with all of them making up their minds at the same time. I anticipate we will see NXT regaining some of what was lost yesterday over the next couple of weeks.
NXT Price at posting:
$12.10 Sentiment: Hold Disclosure: Held
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