NXT - Nextdc

[ash_1050]

NXT are a data centre provider with a $5.4b market cap. While I don't want to sound too excited I'm tipping them to be the CSL of the tech space in terms of steady share price growth and eventual blue chip status. With ongoing year on year growth, limited running costs and an incredibly sticky product I'm getting as much into NXT as I can at the moment with a view to holding for 10+ years.

A quick overview on NXT can be found here from 10:25 onwards, as well as MP1 thereafter (who also have a stack of potential) who are also in this industry but as a connector rather than a host.

 

[Gigantic]

My largest holding at the moment.

They have been a good opportunity for anyone to buy into the last month as they hover at sub $12.00. Probably not going to stay this way for long.

They didn't get the huge buy-up leading into the earnings announcement like many other stocks have this reporting season - so I don't see a massive sell-off today. You'd be stupid to sell off based off the results announced last night.

 

[Gigantic]

I think CEO Craig Scoggie said it well in this AFR article

NextDC set for an exceptional 2021

NextDC CEO Craig Scroggie says everything has aligned for a year of record construction and sales next year.

www.afr.com

"About 70 per cent of businesses haven't moved [their data centres] out of their buildings yet. A lot of people still want to own and operate their own infrastructure. People want to know where their information lives and there's the backdrop of privacy and security issues today," Mr Scroggie said.

...

For hyper-scale deployments, which consume megawatts of capacity, these can take upwards of 18 months to fully activate.

"You can’t activate enormous amounts of capacity on very short notice and we need regular and detailed planning work with our customers," Mr Scroggie said.

The huge demand for data centres is still in its very early stages and many have yet to really utilise data centre services like NextDC as they go digital. Businesses are still working on how they're going to go from on prem to cloud etc etc. With COVID bringing a lot of that technology transformation projects forward means most of that will be starting to happen over the next year.

 

[Gigantic]

Has now dipped below $11.00 which for me is a definite buy to top up.

Can't top up too much though since this is already a significant weighting of my portfolio.

 

[ash_1050]

Yep also added some more NXT at around $11.20. Bargain price at the moment.

 

[Gigantic]

Probably has a bit more to fall seeing as the NASDAQ has continued to drop

 

[Wakwahn]

What are people thinking about NXT these days? Interested to hear others thoughts.


Sent from my iPhone using BigFooty.com

 

[Kram]

Back in the green on it today, missed topping up in the $10s before they reported pretty well late Feb iirc.