Personally I think the whole short squeeze / bevan factor won't be too much of a factor longer term. It'll come down to it's ability to fill the centre and make a profit on top of its fixed cost base, and this is something you pointed out in a prior post.
The stock has moved from 1.60-2.15 in the space of two months with little to no fundamental news. The latest update at the AGM showed sales pace roughly the in line with what it was doing in the year to date. If you believe as I do that revenues can probably triple from here with costs staying relatively fixed in 5 years, it's probably still a good investment, though not as good as it was at 1.60.
That said, the stock run-up might have outpaced revenue generation by a bit. At $2 is trading at 7x FY15 revenue multiple, longer term it should trade on 6x IMO assuming 50-60% ebitda and 3-4% annual maintenance capex to sales when centres fill up
What's bugging me is sales pace hasn't accelerated much. Hopefully microsoft azure adds materially to co-lo demand next year for nextdc.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)