Still trading at a large premium to contracted future earnings.
It's good they'll be cashflow positive, but need to see them:
* Continue to close deals. * Announce their plans for all the cash.
So far they have have contracts for 27% of total power capacity, for $27M in Revenue. That equates to $100M/Yr Revenue for 100% capacity or $2.8M/Mw.
I'm not sure how that compares with the market average or if it's discounted slightly for "cornerstone" customers.
Significant costs are: * ~$15M/Yr in Leases. (Should get ~$2.9M back as AJD Div) * Wages * Power * Water * Not sure who pays Land Tax under the Lease Agreements, but I'd assume NEXTDC.
All in all I'd expect them to make a small profit.
New contracts will add a lot more cream as a lot of those costs wont change.
Anyway just my rough thoughts.
NXT Price at posting:
$2.58 Sentiment: None Disclosure: Not Held
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)