Valuation. When it was $7 it was around 80% overvalued relative to global peers on EV/EBITDA (global comps 18-20x, NxT >30x) . This was justified by some (not all, there are a few brokers who have had a sell on valuation grounds for a while) on basis it had superior growth. This is now being called into question because of the weak 1MW sales result in 2H18. The bulls and the company say this was timing related and the big sales deals will come soon; the funds selling and new shorters think the quantum of sales that they expected won’t now come to pass (or at least not in a timeframe to justify the rich valuation premium today)
NXT Price at posting:
$5.95 Sentiment: None Disclosure: Not Held
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