Hi All, been busy with work and haven't had time to run through detailed explanation of the results. Hopefully in the next week.
$6 share price is a steal IMO. The stock wont go down lower and stay there for an extended period. If it went down to $5 and stayed there for a while i am sure there would be a take over.
In our recent results we had $162 mil in revenue and are forecasting circa $200mil in the current FY. if we take a midpoint of $180mil annualised revenue by December this year. NXT should be valued at $3.15Bil. Which is about $9. One would think that NXT with it scale is operating more efficiently than metronode so valuation based on revenue shouldn't be that off the mark. If the share price hit $5 expect a $9 takeover bid from private equity, soverign wealth fund, Global Switch or Digital Reality.
Per previous posts i have written up i am expecting a large contract in M2 by February 2019 at the latest. It also looks like that there is more contracts pending in S2 with the pull forward of built out. Contract likely announced for S2 in Aug 2019. The landing of the sub sea cables shortly is going to be another great catalyst.
NXT Price at posting:
$6.10 Sentiment: Buy Disclosure: Held
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