Nextdc Ltd

NXT Details
· Ongoing performance for the coming year: Nextdc Ltd (ASX: NXT) stock surged over 4.14% on November 24, 2016 driven by their solid fiscal year of 2016 results. The group reported a 52% rise in revenue to over $93 million, and a 20% growth in contracted utilization to over 26 megawatts. NXT remains a preferable choice among telecommunications and technology providers. NEXTDC won major direct connection points-of-presence for several public cloud services in their data centers, including, Amazon Web Services (AWS) Direct Connect, Microsoft Azure and Office 365, and IBM Direct Link to SoftLayer. NXT expects the similar performance even for fiscal year of 2017 given the same current utilization levels and new contract wins. Revenues are forecasted to be in the range of $115 million to $122 million, for fiscal year of 2017 which is a rise of about 24% to 31% over FY16. EBITDA is forecasted to rise over 66% and 81% to the range of $46 million to $50 million in FY17. Capital expenditure for existing facilities will be from $80 million to $100 million; for B2 and M2 from $120 million to $140 million; and for S2 from $60 million to $100 million.

· Recommendation: We reiterate our “Hold” recommendation at the current price of – $ 3.27

Nick Scali Ltd

NCK Details
· Upgraded profit guidance: Nick Scali Ltd (ASX: NCK) soared 8.07% on November 24, 2016 as the group reported that it now expects a better net profit after tax for the half year 2017. The group projected a rise of 30% to 35% for the year as compared to the prior corresponding period. NCK generated a solid year to date sales while their efforts to control costs have paid off. On the other hand, Nick Scali stock already surged over 25% in the last six months.

· Recommendation: NCK stock is trading at a slightly high P/E. We give an “Expensive” recommendation on the stock at the current price of – $ 6.16

SDI Limited

SDI Details
· Disappointing trading update: SDI Limited (ASX: SDI) stock moved up 1.4% on November 24, 2016 post an initial fall of about 6%. SDI expects non-amalgam sales growth of 10% with amalgam sales growth to be flat for year. But SDI forecasts a lower net profit after tax to be in range of $2.0m to $2.5m for second half of fiscal year of 2016, against $3 million in the first half due to currency impact. Moreover, the first half of fiscal year of 2017 amalgam sales are expected to fall by 7% during the period.

· Recommendation: The stock already generated over 39.6% in the last six months. We rate the stock “Expensive” at the current price of - $ 0.73

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