NextDC: A stock the market has misunderstood

PM Capital

PM Capital

NextDC is an ASX listed company which owns and operates data storage facilities for the technology industry. Uday Cheruvu, Portfolio Manager at PM CAPITAL, believes the company is misunderstood and that the market has been slow to come to grips with NextDC’s ‘non-linear’ earnings. “The fact is that the data industry doesn’t work like that, the industry works on big contracts. These big contracts can come at lumpy times and once they come in they lock in for five years.” NextDC is now cash flow positive and has recently raised capital to increase their capacity. Cheruvu says the company is well positioned to benefit from accelerating demand for data storage which is be driven by global companies such as Google, Amazon and Microsoft. “We think the market is only now starting to learn the true earnings potential of this business.”


1 stock mentioned

We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world, using a focused, patient and considered approach to finding simple investment ideas.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.