I understand where you are coming from and I agree. It's really exciting to see the business expand overseas and become a Multinational on one hand but on the other hand, it seems there are early warning signs showing that the business is struggling from the massive growth.
Firstly, the business is struggling to makes sales outside of Sydney. Let's not forget money was raised few months back for S3, M3 and P2. What sales numbers were for Melb and Perth for 1H? The decision to expand in Melb and Perth will look questionable if demand is not there.
Secondly, I said in previous posts after a precursor look at the cashflow statemnent that more money will be required to finish these projects and that time will be very soon. Also, capital have not been deployed effectively causing the business to be paying a 6% interest expense for money in the bank for the last 6 months rather than having it spent on the land.
Thirdly, when is S2 up and ready? It seems that the project keeps being delayed. What are the cost overruns like? Is more capital injection required for this?
If the business is struggling with delivering in Australia, expanding overseas would be more vanity than a good business move.
NXT Price at posting:
$6.27 Sentiment: Hold Disclosure: Held
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