WYFI · investment memo
NOT UNDERWRITTEN AND NOT UNDERWRITABLE ON THIS INSTRUMENT. No reverse DCF was run: reverse_dcf.py was NOT SOLVABLE because the exit multiple is declared UNIDENTIFIED, so no terminal EBIT margin was ever held fixed or solved for. The memo substitutes an EV/RPO contract-value analysis, which embeds no margin assumption. This is a deliberate declared gap, not an omission.
Four distinct questions, one field each. A price is not a thesis: the trigger below forces a re-underwrite and freezes further purchases — it is never an automatic sell.
A daily close below $15.42 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.
Fundamental and falsifiable, never price-based. If one is satisfied the thesis is marked dead and the position is retained only by explicit decision.
Named cause: Nscale fails to take the capacity at NC-1, or renegotiates it. This is single-counterparty risk on a facility being purpose-built: 1. The $865m order is 94% of WYFI's $923.7m RPO. There is no second contract of scale. 2. NC-1 is being constructed for Nscale specifically. Billing is contingent on *"completion of construction and commissioning"* — WYFI's capex is going in ahead of the revenue, funded by the CAD 115m + 25m + 8m facilities and the customer's own prepayments. 3. Nscale is a private company (Nscale Services US Inc. and Nscale Global Holdings Limited). Its financing, con