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    NXT or GMG for data storage

    Your market report today briefly talked about NXT in your tech section but said you preferred GMG in this space. I understand that GMG recently announced moving into data storage as part of their overall portfolio. On the other hand, NXT portfolio is data storage. I believe there is a very specific expertise to this sort of structures. NXT measures growth (sales) in megawatts MW, that is energy required for customer needs. Given the exceptional growth in data storage needs, wouldn’t you think having an expert supplier such as NXT would be better to build a stake in this segment?

    Answer

    Hi Glenn,

    An excellent question that could have been covered in more depth in Fridays AM report. Both stocks offer exposure to the growth in data centers with NXT the proven player and GMG the new but highly credentialed entrant. Firstly its important to point out that we like both businesses but overall feel that GMG offers better risk/reward through 2024/5.

    Goodman is trading on 23x and 10% below its all-time high after interest rates started rising in 2021. Importantly, GMG have better access to a couple of important things, sites to put centers on, and capital partners to help fund them. We actually talked about this theme in our live event at the end of last year – click here to watch,

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