What was the reason for the downgrade? I don't recall them asking any questions on the CC.
I can't believe that no-one here has heard of PEG.
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What was the reason for the downgrade? I don't recall them asking any questions on the CC.
I can't believe that no-one here has heard of PEG.
comment was to the effect `we think the price has got ahead of itself'. in other words, overvalued, a little irrational exuberance..
Thats why its now up to 526
I saw that comment too, my interpretation from anaylst speak to the English language was "we don't really understand why the SP has gone up, hopefully it will go down so we can buy some"
FYI the analysts had a visit to the factory after the CC, none of this has been reported, also Mr Maire had no trouble placing his 1.6m parcel following earnings.
IMO GPS will be pervasive in mobile devices in a few years.
Yes, we have heard of her, but we're not sure yet that the time has come to place RAK's PEG up there with Bill Gates' PEG - they're two different ladies, but time may well prove their close relationship - I would like to think so, for the sake of my small indirect interest via my holding in KFL.Quote:
quote:Originally posted by hairdresser
What was the reason for the downgrade? I don't recall them asking any questions on the CC.
I can't believe that no-one here has heard of PEG.
I think you missed the point, P/E is not good for valuing high growth stocks.
With RAK the high P/E may make the SP appear overvaled, but when you consider the explosive growth of RAK's markets it may not be as over valued as it appears.
There are not many growth stocks in NZ with solid markets and customers and high growth for a top 30 company in NZ is quite unique.
Its a bit of a moot point anyway as there is little in the way of coverage of RAK and what I have seen reported has just been a recycling of what the company has said anyway.
The ref to MSFT [and others] was for illustrative purposes only. You would hardly categorise MSFT as a high growth stock ie forecast 5 year EG of c30% is good but not really explosive. NB trailing PE of 22 forward PE of 18.
From KFL Newsletter re a overseas trip:
Warren gives us an update about Rakon, following his visit to the London headquarters of recently acquired subsidiary C-Mac.
In February, Rakon acquired a UK-based, crystal-quartz oscillator (CXO) manufacturer called C-Mac. Before this sounds so complicated as to make you stop reading - a reminder that a crystal-quartz oscillator is a shaving of quartz crystal that vibrates at a particular frequency when an electric current is applied to it. This frequency is picked up and used to tune into a radio signal. C-Macs technology is complementary to Rakon’s, with C-Macs CXOs used primarily in the telecommunications industry versus Rakon’s which are sold primarily to the consumer global positioning system (GPS) industry. Following this acquisition, Rakon has substantial intellectual property, manufacturing capability and relationships in the crystal oscillator market supplying the high growth cellular, WiMax and GPS infrastructure and device markets.
As with Rakon, C-Macs competitive advantage comes from miniaturization (of its frequency components) while achieving maximum specification and functionality. Miniaturization is of critical importance because it reduces power consumption, circuitry requirements and price. With this acquisition, Rakon has positioned itself well to capitalize on an exciting telecommunication market development in the coming years.
A key driver for C-Macs future growth is “triple play”. Triple-play is the term used to describe the technology for a single cellular base-station in the office or, even more exciting, the home, enabling wireless providers and others perhaps to provide additional services. Triple-play is being driven by network providers under pressure worldwide to both increase bandwidth to the consumer and from competing platforms/providers. Network providers are very keen for this technology to roll-out (as it has started to) as it will lock-in the subscriber for a bundled service. Rakon/C-Macs tiny CXOs are critical for the synchronization requirements of the base stations and indeed the only product which can meet the stability specification and the price required. Mass penetration akin to cell phone take-up “cannot happen without the lower cost CXO solution”. To finish with a tantalising quote from C-Macs Operations Manager, Phil Davies: “…if triple play takes off, this could be monstrous”.
Thanks for the info
Cheers
Hi Hairdresser - agree with your comments on PEG.
SP +8 today ...
p/e is relevant
the moment you say its not....thats when u get into trouble
however, it's the fwd p/e you need to worry about.
im focusing on FY09 earnings........
my f/cast is 0.30 cps....
for FY09
the price could afford to get to 6.50 before id think its overpriced