dorsaVi Ltd

DVL Details
· Contract with Heathrow Airport: dorsaVi Ltd (ASX: DVL) stock surged over 6.3% on December 19, 2016 driven by the group’s 12-month contract with Heathrow Airport. The group would offer a range of ViSafe services in three phases’ project (valued at $100k). Phase one would deliver ViSafe Comparison Assessments in January 2017, while in phase two the group would leverage objective data to optimize manual handling practices. During phase three, the group’s myViSafe would be used through the baggage handling area to monitor and promote safe practice.
· Recommendation: DVL stock already rallied over 77.8% (as of December 16, 2016) in the last six months placing the stock at unreasonable valuation. We give an “Expensive” recommendation on the stock at the current price of - $ 0.51

Nextdc Ltd

NXT Details
· Positive start for fiscal year of 2017: Nextdc Ltd (ASX: NXT) stock rallied over 3.6% on December 19, 2016 with a rise of over 13.85% in the last five days with positive market sentiments. The group is developing new data centers in Brisbane, Sydney and Melbourne, which would double their overall planned capacity leading to a further strong position as Australia’s leading colocation data center operator. The group got major important direct connection points-of-presence for several public cloud services in data centers like Amazon Web Services (AWS) Direct Connect, Microsoft Azure and Office 365, as well as IBM Direct Link to SoftLayer during fiscal year of 2016. They also got business from leading cloud-services companies, like NetDocuments, StorageCraft and Global Cloud Xchange during FY16. Management reported that their business momentum for fiscal year of 2017 continued given their ongoing client wins. Given their current utilization levels, the group forecasts their revenues to be in the range of $115 million to $122 million, which is a rise of 24% to 31% as compared to $92.8 million for FY16. EBITDA is expected to be in the range of $46 million to $50 million in FY17 against $27.7 million in FY16, representing a rise of 66% and 81%. Meanwhile, the group expects to incur a capital expenditure in the range of $80 million to $100 million for current facilities. B2 and M2 capital expenditure is expected to be in the range of $120 million to $140 million while S2 would incur in the range of $60 million to $100 million for FY17.
· Recommendation: NXT stock recovered over 12.3% in the last four weeks (as of December 16, 2016) and we believe this momentum to continue in the coming months. We give a “Hold” recommendation on the stock at the current price of - $ 3.49

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