Thanks for sharing. I like at the end of the video.. the interviewer asks Sinan Altug (CEO) what the next 5 years for Rakon holds.. Sinan explains in some detail and then says if you want me to summarise its "GROWTH"
The market appears to show no confidence in this business. IPOed at around $1.60 in 2006 and initially shot up to around $5 before heading steadily down. Investors then had to stump up for more ( to avoid dilution at that time) via a rights issue at $1.15 per new share a year or so after IPO because they ran out of cash. It's returned no dividends an no capital growth in its entire listed history of 17 years.
There is absolutely no reason to believe this company will ever reward it's investor owners. History is everything with this one. Your best hope is that it gets taken over and you might get your money back. Or not.
Yeah if he says growth he needs to grow the bloody thing. None of this FY24 revenue could be down crap..
Still holding.. see what happens to that big inventory build up they had at half year and if its cleared what do operating cashflows look like.. problem is this is so very cheap. Winner will say thats for a good reason..
just had this terrible thought i could be in a few years time one of the moaners complaining that RAK doesn't do anything, no dividends, no capital growth etc etc lol. because ive held for a long time and seen nothing for it haha
I would be very surprised of they're still listed on NZX in few years time. Robinsons must be thinking they had enough and any juicy offer (more like $2+) from an overseas outfit they'll lap it up in no time.
Good article in NBR written after they had a tour of the factory
Extract: Rakon intends to use a potential recessionary economic environment to out-manoeuvre its competitors as it continues to invest heavily in growth, while optimising its existing operations and grappling with an ongoing "inventory correction" among its customers.
It’s an approach inspired in part by the late, legendary Formula One driver Ayrton Senna, according to the NZX-listed company's chief executive Dr Sinan Altug, who hosted NBR on a recent visit to the Auckland manufacturing facility, where Rakon makes the frequency control devices it sells globally.
“One thing [Senna] said that I think fits our situation quite well,” Altug offered, “Is he said: ‘you cannot overtake 15 cars when there’s sunshine, but you can when it’s raining’.”
Altug said the company is approaching a potential economic downside “quite conservatively” but also looking at “quite a growth plan... This situation and the volatility in the market will allow us to get to a point that will put us ahead of our competitors”.
Reply With Quote
Originally Posted by Raro
Bookmarks