RAK Rakon

[Balance]

Now Now Balance. You know you are more widely read than your query indicates.!!

Senor Robinson recently quoted in NZHerald "No Capital Raise" for shareholders.

And Senor Robinson's statements have been ??? in the past???

[moimoi]

And Senor Robinson's statements have been ??? in the past???

Is the market forward looking?

[Balance]

Is the market forward looking?

Yes. And the past statements by Senor Robinson and company were all forward looking statements which proved to be ?????

Examples are:

"Our CEO, Brent Robinson recently said "I have never felt better about Rakon's strategic positioned opportunities for growth in the markets that we are in." Brent has 33 years experience in this business one of a few in the world with such expertise."

"As investors it is over to you to form your own views as to the company's long term value but today's starting point of 44 cents per share is half the company's net tangible asset value - in other words selling for half price."

Sept 2012 - Chairman Bryan 'of PGC George Kerr fame' Mogridge

I guess Mr Mogridge will now say that at 22 cents, Rakon is selling for quarter price?

Mr Mogridge is looking more and more like the dodgy bric n brac salesman on his van around the Sunday flea markets? "Roll up, roll up, folks! Buy one of these, they come with 3 free!"

[Alz99]

FYI for holders - Rakon oscillators launched into Space on environmental mission on board the Indo-French SARAL satellite! Mougins France, February 26, 2013 – Rakon is proud to announce it is part of the exploration of science and contributes to study the environment, from space, thanks to its Ultra Stable oscillators and Oven Controlled Crystal Oscillators used in the Indo-French oceanographic study satellite that was successfully launched on the 25 February 2013 by the Indian Space Agency ISRO.
SARAL is a 410 kg satellite with two payloads developed by Thales Alenia Space and built by the French National Space Agency (CNES). Both missions have the same objective: to promote the study of the environment from space. Argos-3 collects and distributes environmental data and AltiKa is an innovative Ka-band spatial altimeter system dedicated to accurate measurement of ocean surface topography.
The SARAL satellite is a very unique as it is designed to serve the research community in oceanographic studies. It will study the sea surface heights and ocean currents as well as climatic developments. Practical applications include study of marine animal migration, continental ice studies, protection of biodiversity and coastal erosion.
SARAL stands for Satellite for Argos-3 and Altik.
Rakon has confirmed once again its competitive edge in space applications with leading-edge technological solutions that meet the demanding requirements of major international space programs and further strengthens its strong heritage in the space industry.

[janner]

**** !!.. What do we do with the other XXXXXXXXXXXXX. ???.

[janner]

FYI for holders - Rakon oscillators launched into Space on environmental mission on board the Indo-French SARAL satellite! Mougins France, February 26, 2013 – Rakon is proud to announce it is part of the exploration of science and contributes to study the environment, from space, thanks to its Ultra Stable oscillators and Oven Controlled Crystal Oscillators used in the Indo-French oceanographic study satellite that was successfully launched on the 25 February 2013 by the Indian Space Agency ISRO.
SARAL is a 410 kg satellite with two payloads developed by Thales Alenia Space and built by the French National Space Agency (CNE
Rakon has confirmed once again its competitive edge in space applications .

Cough... cough.. Cough.. Choke evem...

Where do i see the line up of ??.. of " Secret " Buyers.. ??.. >>

Houston !!.. We have problem !!.. .. Pass the Tui...

[Hoop]

Hey Mr Robinson..I think I found your old flip top phone?... how the hell did it get out there?....cool mouth piece can I get one of them?

http://www.satnews.com/images_upload/1610885449/India%27s-Saral-sat.jpg

http://www.satnews.com/story.php?number=468416027

[Alz99]

Hilarious :cool: I think we get the point from the last few pages sounds like you guys want to buy in haha

[Alz99]

Only if you're offering them for free. In fact, I'll be generous and buy you a coffee for them.

there's heaps for sale only .24c too, cheaper than a coffee:)

[Balance]

Up 10% in the past 3 days since both the CFD shorters and the bitter last posted. !!

:-) :-)

Down, down.

Back to 21 cents and the drums are beating louder and louder.

Roll up, roll up, says Mr Bryan Mogridge, buy today because it will only get cheaper tomorrow.

Oh, oh - me thinkth he means sell?

[Balance]

And finishing the week on 20c, I note with over 4m shares traded.

https://www.nzx.com/markets/NZSX/securities/RAK

It was only two months ago on 22 January that Lazy Larry told us he bought 80,000 shares at 37c.

I genuinely feel for the guy if he is still holding. I'm sure he is because he said he was going to average down all the way to 10c. On 19 Feb he told us he bought more at 25c. I wonder if he is still buying?

Really feel for the guy too, STC.

I did some averaging down of shares (ouch, ouch ouch!) as a novice investor (and is still tempted from time to time) but learnt the very hard way that averaging down is dumbing down 9 times out of 10.

What is at extreme fault here however is the directors and management of this company continuously giving the likes of Lazy Larry false hopes and expectations.

Harbour Asset Management has clearly had enough and bear in mind they are professional investors with direct access to Rakon's management and directors. That to me speaks volume.

[blobbles]

When is their asset reassessment coming out? That will see their SP fall to the 10c range I suspect... Oh wait, our company is only worth 30 million, sorry everyone!

[Balance]

When is their asset reassessment coming out? That will see their SP fall to the 10c range I suspect... Oh wait, our company is only worth 30 million, sorry everyone!

13 Feb was when they gave the market the update and alerted to balance sheet action.

All quiet.

[biker]

Management/private equity buyout? Take some of the costs out of the business and a market cap of 40mil might not seem too shabby? Having a dabble around these levels.

[tim23]

Me too Biker I've thought a buyout from management is possible, bought in at 21c last week.

[Balance]

Management/private equity buyout? Take some of the costs out of the business and a market cap of 40mil might not seem too shabby? Having a dabble around these levels.


Harbour Asset has sold out on the basis of ?

[biker]

Harbour Asset has sold out on the basis of ?

Frustration, impatience and short sightedness ;-)

[biker]

so the robinsons have hijacked their own business to utterly destroy the sp and therefore buy the company out a lower price when they have never invested another penny since 2009? Pull the other one! You invest here and you'll lose most, if not all, your investment (in my humble opinion...).

t.w.t imho

[Balance]

Frustration, impatience and short sightedness ;-)

Agree with you on frustration but impossible to agree with you on :

1. Impatience - watching a company go from one promise to another to another without any fulfillment requires great patience. But even a saint has his limit!

2. Short sightedness - supporting a company while it restructured again and again to stay competitive and relevant requires long sightedness.

Rakon has tested 1 and 2 to breaking point.

My guess is that there will be a massive capital raising, 5 for 1 at 5 cents to raise $50m to give this company one last shot.

The fact that there is no news on the balance sheet 'review' is not good. Points towards something very ominous happen to happen.

[biker]

Agree with you on frustration but impossible to agree with you on :

1. Impatience - watching a company go from one promise to another to another without any fulfillment requires great patience. But even a saint has his limit!

2. Short sightedness - supporting a company while it restructured again and again to stay competitive and relevant requires long sightedness.

Rakon has tested 1 and 2 to breaking point.

My guess is that there will be a massive capital raising, 5 for 1 at 5 cents to raise $50m to give this company one last shot.

The fact that there is no news on the balance sheet 'review' is not good. Points towards something very ominous happen to happen.

I agree there is greater risk of downside than upside at the moment , but I am in there for a possible short term bounce, but fully aware that a balance sheet restructure may be painful. If however, they plan to raise more capital in the way you prescribe, they will have to have a pretty comprehensive, positive story, backed by an entity that isn't just the Robinsons.

[Balance]

I agree there is greater risk of downside than upside at the moment , but I am in there for a possible short term bounce, but fully aware that a balance sheet restructure may be painful. If however, they plan to raise more capital in the way you prescribe, they will have to have a pretty comprehensive, positive story, backed by an entity that isn't just the Robinsons.

If you believe in MBO, isn't that exactly what will happen (indirectly)? The Robinsons will not be dumb enough to use their own money to take the gamble - it will be somebody's else's money and a 5 for 1 at 5 cents will certainly see the punters surrender their rights to the underwriters (especially if connected to Robinson).

Come to think of it, why would the Robinsons want to do a MBO? They already have control of the company in every shape and form, and have been happily taking in funds from the likes of Harbour to run Rakon (into the ground) while paying themselves huge salaries and benefits.

BMW Rakon 1, Rakon 2 etc, anyone?

Reminds me of Helicopter Line under Chris Alpe - Mercedes S Class Maui 1, Maui 2 etc.

[winner69]

Rakon up to 27c, after languishing as low as 20c a few weeks ago. Someone is feeling optimistic!you know the worlds gone nuts when RAK WDT ECO and PEB lead the gainers on the nzx

[biker]

Management changes afoot?

[biker]

lol, hand me another Tui (would make a great billboard ad as well!)

The market may just be telling you something moosie. I'm happy to have a 29% return in 10 days.

[biker]

me thinks by now RAK have been revalued, me also thinks the bank has told them to go and raise more capitol to support your poorly run company, me thinks RAK will have a deadline to do this by.
Me also thinks this company is poorly run, me thinks RAK are trying to find a corner stone shareholder, me thinks they have probably found one but at a level per share that they dont want to announce to the market (12-15cps).

The longer shareholders wait for an announcement the worse it is going to be, but be assured it will be full of spin doctoring and rhectoric dribble offering light at the end of the tunnel.

What to do when the only new corner stone share holder you can get is at levels that value your company fairly(some 30-50% less that current levels) but if you turn it down your only other options is to go to exsisting shareholders(which include yourself) but you are not so keen on flushing your own money down the tiolet.

But if you do nothing you will have no business left which means no investers left supporting your current lifestyle, HMMMMMM WHAT TO DO

You heard something on this snapti, or just conjecture?

[Alz99]

does anyone know about factory in china where the earthquake hit? havn,t been able to find much news or if it was affected at all?

[blobbles]

Unlikely the factory in Chengdu was damaged as very little damage is being reported in Chengdu in Chinese media (I am in China, so this is from your Chinese correspondent!).

[Balance]

Wouldn't that be the nail in the coffin and sign from God that RAK should not be in business!

Let's not be too harsh on Rakon.

Let's be very harsh on the directors and management who have squandered a huge opportunity to build up an internationally competitive and thriving business by attracting the best brains and best personnel.

New Zealand needs businesses with global aspirations and capabilities.

Rakon promised so much but sadly, like many other NZ businesses, has faltered because a few individuals could not accept their used by dates.

The saddest part for Rakon is that these individuals are still in denial.

Contrast that with the likes of Ralph Waters resigning well ahead of time even though they were considered to be top of their game. Why? Because they recognise their limitations.

[biker]

Unlikely the factory in Chengdu was damaged as very little damage is being reported in Chengdu in Chinese media (I am in China, so this is from your Chinese correspondent!).




Hey, blobbles, good to hear from our man on the spot! ( or closer to it than we are anyway!)

[Alz99]

Rakon has signed four different contracts with the CNES agency (Centre National d’Etudes Spatiales) to provide innovative technological solutions for:
- Development of SMD crystal and programmable XO family
- Development of a die for mini Space TCXO and OCXO to reduce the cost and the size of the oscillator
- Development of a new gluing process for space oscillators in order to resist to higher and higher shocks and vibrations
- Evaluation of new quartz cuts and inverted mesa crystal resonator to address the demand of higher and higher frequencies for space applications.

not sure how much this is worth

[blobbles]

Moosie, did you just tell turmeric to go and buy SUM POT? Well I suppose it might help him forget about the beating he took on RakCon...

[Master98]

Rakon has signed four different contracts with the CNES agency (Centre National d’Etudes Spatiales) to provide innovative technological solutions for:
- Development of SMD crystal and programmable XO family
- Development of a die for mini Space TCXO and OCXO to reduce the cost and the size of the oscillator
- Development of a new gluing process for space oscillators in order to resist to higher and higher shocks and vibrations
- Evaluation of new quartz cuts and inverted mesa crystal resonator to address the demand of higher and higher frequencies for space applications.

not sure how much this is worth

worth nothing, more cost and more loss.

[blobbles]

Yep, if you are losing money from your current products, and you make/sell more of them, you lose more money.

Rakon needs to announce they have negotiated new prices for better margins. Announcements of new deals just make their bottom line worse otherwise. Not reporting this to the market... Isn't that a breach of NZX terms though?

[Hoop]

I sold my last remaining shares in RAK the other day and realised the biggest loss of my short investing life. Feel like a sucker for waiting so long to sell out completely. Managed to mitigate even larger loses by selling the majority of my holding a while back but still took a pretty big hit overall. I can handle the loss and accept some investments just do not pay off, the thing that irked me with RAK was the extremely poor management which IMO has been pretty well documented here on ST.

Anyway I am might relieved to free up my remaining cash held in this company and so happy to wash my hands of it.

We've all been there Turmeric..some times they can be deep dark evil investment places too...the good news is you learn from your mistakes the bad news is you will create new ways of making mistakes....so over time when you become an experienced investor you have to find more creative ways to keep making mistakes and due to that extra knowledge from experience it is amazing how you can keep on finding ways.. :):(:mad ;:

After 37 years of investing..and bombing out on the expected dead cat bounce with RAK I found yet another way to lose money on Tuesday... I dipped my toes back into FBU at 8.71 ..today just 3 days later it's 8.15 and $1120 poorer down 6.3%..I'm shaking head thinking .."your timing sucks Hoop, you idiot"

But its the good decisions you make that gets you there in the end ...its the SUM RYM, found STU at the bottom and rode it up ...bought into uptrends etc etc.

chin up ..Tally ho ..Spray and walk away ...up up and away.... :)
Hoop

[corpr8raider]

Where to from here?

[blobbles]

Predictions for quotes on Thursdays meeting? My prediction:

"The mobile market is growing hugely and we are part of it."
"The high NZ currency is the entire problem and that is completely out of our control."
"We have potential new customers in the pipeline and a healthy balance sheet."
"This year we made a $4 million loss, but none of this is under our control."
"We anticipate a $10 million profit for next year."
"We now have 6 months of stock on hand (up from 3 months last year), which is why our Assets part is looking huge. This is "standard industry practice" and will see us through times of high demand."

The reality:

"The mobile market is growing hugely, but we aren't part of the growth."
"The high NZ currency is manageable for almost everyone else except us who couldn't manage our way out of a paper bag."
"The same customers will place bigger orders from us but pay less for our goods. Essentially, we will be paying them to take our goods. 'PLEASE take our goods for less than we make them' is our new company sales pitch. Our balance sheet is full of dreamed up numbers, particularly for the Assets section. We completely ignored the actual value of our Assets that our auditors gave us and just put a number we liked to see in there."
"We will revise this to $6 million profit in 2 months, $4 million profit in 5 months and a $2 million loss in 8 months. In 12 months we report an $8 million loss, but because none of that was in our control and we (the Robinsons) still got $2 million in profits from the company still operating, we don't care."
"We make lots more things than we can sell. We put this in the Assets section of our balance sheet to pump it up a bit."

So basically the same stuff, different year. Too easy to predict!

Rakon shares are probably double the price they should, that's my prediction...

[Balance]

Two days to go.

https://www.nzx.com/companies/RAK/announcements/235864

Pundits and masochists can dial in for the management explanations.

Bryan Mogridge will put in his usual bravado act - "we are listening and we are responding. Give us time and it's so sad most of you out there have no appreciation of how hard we work for you all. A word here on George Kerr, another misunderstood individual whose company, PGC, I chair. George is an outstanding individual whose deeds will one day be recognized for what they are - selfless acts to improve the lot of all shareholders. Of course he has to take care of No 1 first before he can do that. And I, Bryan Mogridge, will stand shoulder to shoulder with him and the Robinsons, to make sure all of you benefit from the great potential of the businesses in future."

From September 2012 : "Over the past year we have received a lot of criticism and advice about the performance of Rakon, from shareholders, commentators and the shareholders association. Some of it is helpful but a large percentage is not and often reflects a serious misunderstanding about the business that we own together and what it does, what its strategies are and the potential that it has."

[Balance]

With any luck he will direct criticism towards "anonymous online commenters, intent on shorting the stock for their own greedy needs"

And if he was 10% of the man he was when he managed CIL/Montana, he will launch a takeover bid at NTA and show the world what he is made of.

Sadly, he is but a shadow now - a man whose good name and reputation have been squandered by his association with Rakon and PGC.

[corpr8raider]

Thanks for the feedback, I expect the SP is not going anywhere near where it was at the peak soon. Will continue to hold, at this price it's not really worthwhile selling and realising the loss.

[janner]

I have averaged down on RAK as I said I would at 25c to take my holdings to over 100,000 shares.
Great price at this level. I am prepared to average down all the way. The fools are the ones selling out now.

I suspect they are going to sign a preferred supplier agreement with Huawei. Bring on 15c!


Do not forget STC that lazylarry is waiting in the wings.

[janner]

I had completely forgotten! Yes, LazyLarry is there to buy more at 15c.

I wonder if he was kidding us though, as there doesn't appear to be an order in place to buy at 15c.... :-)

There does not appear to be a lazylarry anymore :-)0

[janner]

wonder if ll thinks he's gping to get a free used bmw if the sp hits the big doughnut?

With out Rego and WOF..

[janner]

And if he was 10% of the man he was when he managed CIL/Montana, he will launch a takeover bid at NTA and show the world what he is made of.

Sadly, he is but a shadow now - a man whose good name and reputation have been squandered by his association with Rakon and PGC.

Must agree with that last statement.. He was a man to be looked up to in those days..

[Balance]

Hey biker, you out before the Robinson's faecal matter hits the proverbial fan tomorrow?

Let's try and guess the announcement :

1. We have reviewed our balance sheet and disagree with commentators on Sharetrader that our asset values are inflated. In fact, we are revaluing our assets up by 15%.

2. We have signed with a partner whose name will remain secret at this stage. The partner is going to triple our revenue in the next 2 years.

3. A bigger balance sheet due to 1 needs a bigger capital base. Likewise, more capital is required to fund the working capital needs of a tripling of revenues in the next 2 years.

4. Accordingly, directors are extremely pleased to announce a bonus issue as well as a capital raising.

[stevo1]

I suspect this thread will be a hive of activity tomorrow.... Given the earnings downgrades (note, Rakon had two downgrades leading up to the end of the year) it is unlikely the news is going to be pleasant.

As commenters have noted we will likely see

1. Big cut in NTA. Probable evaporation of all goodwill, writedown of inventory value and receivables past one year.
2. Ongoing issues with inventory (it's reducing they will say, but nowhere near as fast as revenue is shrinking)
3. margins decreasing
4. no changes to the board
5. no changes to the executives and senior management (apart from welcoming the poor sap who became CFO)
6. blame on the currency rate
7. "backlog of orders" (meaning suppliers don't want stock)
8. Vague promises about a capital raise or rights issue.

The only potential upside is that they may announce a partnership with Huawei and/or HTC or another technology player, in much the same way that Haier bought a minor stake in F&P that blossomed into full ownership when F&P turned a corner.


Sparky you are one scary clown but here is a laugh for you
directors acknowledge their past and forgo their salaries until they can return divs to shareholders and use their past collective salaries to buy shares at market.yeah right

[corpr8raider]

Maybe they will announce a licensing tie-in with the Star Trek franchise to capitalise on their recent successes in the space sector and the new Star Trek title Into Darkness seems apt. Last one out turn off the lights.

[andysh]

*Skips straight to NTA*

See they say they still have NTA of 0.69 per share. They did put through a impairment charge in the current year, but this was on Goodwill. There was also a slight writedown of inventory, $4m worth on $46m of inventory.

[andysh]

Their gross margin has decreased 19.6% to 23.5%, and with that sort of low margin when they turn over inventory every 129 days, that margin is just not good enough to sustain that sort of poor turnover.

[winner69]

love it .... ebitda (before a lot of other stuff) of $5m odd .... but $4m from associates and JV

Doesn't seem to leave much from what they do every day

[blah]

"The Group's management awards qualifying employees bonuses in the form of share options and conditional rights to redeemable ordinary shares, from time to time, on a discretionary basis"

If I were an employee, I don't think I would want to take up any share options!! Having said that, 7000% growth in profit is quite remarkable actually - only that it's going the other way

[biker]

Hey biker, you out before the Robinson's faecal matter hits the proverbial fan tomorrow?


Have just read your post Moosie. Got out this morning. made 10% in a couple of months so not unhappy, but certainly not impressed with the announcement and continued dithering over a capital restructure. Will wait for the bottom of the rights issue and have another look then. Can see a bit of shareholder pain between now and then!

[winner69]

whether you look at look through profit, ebita before this and that, ebit, npat or any other angle it looks like they lost money last year .... even before the impairment charge

Hows that for a conclusion

[blah]

Imagine the pain of those that got in back when this thing was $3 evne $5 plus!! Makes me feel better that my realised losses on this thing were only in tha magnitude of 50% but I really do feel sorry for those that believed in this company and it's management and got screwed. But we all must ultimately be accountable for our own investment decisions. What a sad sad company - worst investment I've ever made by a long long way, just so glad I've washed my hands of it now.

Yes I'm happy to have cut my losses and put the residual money into something with more potential than a dying company. Having said that, the very negative result will offer opportunities for speculators and traders.

As mentioned by Sparky and othes, this profit downgrade will probably make Rakon a better value takeover target for the downstream network companies, like Huawei and the like. For one; they taking over Rakon will remove the sufferage from unfavourable currency conversion, which has been one of the factors to blame for Rakon's demise.

[blah]

Biker you must understand that a rights issue is unlikely as that will force the Robinson's as major shareholders to stump up with some of thier own money.
They will continue to try and find a strategic partner but I think you will find they have been trying to do this unsuccessfully for sometime.

I don't understand what you are saying. Rights issues gives you the right, rather than the obligation, to buy an issuance of shares. Rakon could very well issue rights, and the Robinson's need not take part.

However I do agree with you in thinking Rakon will not issue rights, since I don't think there is much appetite for Rakon at the moment. Share issuance really only works when a company is thriving and needs funds to grow and fund their expansion; rather than getting funds to dig them out of a hole which they may still be stuck in even with more funds.

[biker]

Biker you must understand that a rights issue is unlikely as that will force the Robinson's as major shareholders to stump up with some of thier own money.
They will continue to try and find a strategic partner but I think you will find they have been trying to do this unsuccessfully for sometime.

I agree with the Robinson issue and hear there may be division within the family, hence the dithering, however I wouldn't discount entirely the possibility eventually of a deeply discounted rights issue. I guess what I'm saying is I will wait for the complete shakeout, see what results and have another look then. In the meantime I'm staying well clear.

[biker]

Good on ya mate, at least someone is making money from the Robinson's stupidity. Going to catch the falling knife again?

Answered in my previous post. These Robinson's do indeed seem to be a bunch of Turkeys. When I bought in I was prepared to give them the benefit of the doubt, having heard there may have been some positive management changes.
No sign of that with this announcement!

[blobbles]

Just reading the report now... 4 hours behind in China!

Volume of goods sold up a massive 73%. That's big numbers!
Loss of 32 million. My god....
Debt skyrocketing, virtually all monetary reserves gone.
Hedging looks like it is (finally) under control.

"deletion of the requirement for an independent valuer to conduct the valuation of investment property and property, plant and equipment;"

Whaaaaaaattt??? The part that all shareholders should be interested in and ... nope, we aren't going to do it. Can they actually do that? Clearly this is an admission that their Assets are way over valued and that they don't want someone to come in and tell them the real value as it would affect their balance sheet poorly. Which makes you ask why? Could it be that they want to keep the Asset value high due to the chance of a takeover and therefore an offering above the worth of the company? Or could it be that they want to keep it high so that there is LESS chance of a takeover due to obviously overstated Assets?

This company is imploding/imploded. Under current management, there is absolutely no way that anything can get any better. If you still hold their stock, RUN FOR THE HILLS!

[winner69]

C'mon fess up, who made this comment on the NBR website

Rakon, once the tech market darling. Wind the tape forward five years from now and contemplate today's tech darlings - Xero, Diligent, SLI systems, Wynard, Aria, et al
And the lesson is, easy come, easy go.

[ratkin]

Amen brother. Hold a stock and on a long enough timeline it will go to zero ;)

Only if you hold the wrong type of stock

[Schrodinger]

Run. Run very fast away.

They are trying to win a war with the Japanese/koreans/taiwan/china in electronics manufacturing with no point of difference.

Result is a huge cash burner that will be out of business in 2 yrs on present course.

Hard to win against these guys.

[Balance]

plenty of suckers lined up at 20 cps.
Did not think it would hold above 20 cps.

Snap. 20 cents is gone.

Looks like it's going to get harder to raise capital for Rakon.

Bryan Mogridge may want to call on his good pal George Kerr to put in some money? After all, they boast of being experts at looking for distressed and undervalued assets!

[Blendy]

sigh. what to do. *shoulda sold ages ago*

[Blendy]

good idea :)

[biker]

Biker you must understand that a rights issue is unlikely as that will force the Robinson's as major shareholders to stump up with some of thier own money.
They will continue to try and find a strategic partner but I think you will find they have been trying to do this unsuccessfully for sometime.
Quite right Snapiti. One of the Robinson Turkeys gobbling on National Radio this morning stated that there definitely won't be a rights issue capital raising so I guess that settles that.

[winner69]

Altman Z score is 1.1 meaning . Your Z score is in the low range. Your company is highly vulnerable - to bankruptcy that is (unless they do something to fix the balance sheet, like more capital)

But as we know and as many tell me Altman-z is a load of crap

So Rak will be ok

[winner69]

.....and that based on published accounts as well ....and I didn't even count the impairment expense in the ebit bit

[Balance]

Hard to disagree. You didn't mention the part where they are forecasting two more years of losses.

They have set themselves a deadline of July for an announcement. If they miss that deadline, then the company is heading to 5c.

Why would a strategic partner buy in now, when they can pick the bones over from a receiver? A potential partner would be better off building up a relationship with PWC and Korda Mentha. Just because a white knight can, doesn't mean a white knight will.

They have made the mistake of borrowing from the banks - so the banks will now call the shots.

Nothing makes a bank nervous than a company which is bleeding but cannot find a plaster to stop the bleeding.

Nothing makes investors more nervous than a bank nervous about a company.

Bryan Mgridge better call in his mate, Georgie Porgie and his lackey at PGC, Greg 'not so' Bright, to rescue this damsel in distress.

[winner69]

Altman-z and beneish-m I often use just as a final check if I have any doubts about a companies viability. It is not a stock selection tool or screen.

Usually a quick glance at cash flow statement and the balance sheet is sufficient to tell whether any company is financially ok or not - these tools just quantitive it if one goes down that path.

With Rak the numbers are so consistently bad I'm sure beneish score would be ok ...no manipulation there. Except some of their methodologies prob need challenging, valuations etc. but st least they are consistent eh

[Snow Leopard]

So not so much

Rakon Limited, Full Year Annual Report

as

Rakon, Limited Full Year Annual Report

Best Wishes
Paper Tiger

[janner]

exactly, thank you pt. Missing key points like the true value of assets as assessed by a third party.

What a horrible company, why would anyone touch it right now...?

masochists !!!...

[blobbles]

On the back of a report that looks like the company is being dragged through gorse bushes and cesspools of sewage... a 20% rise in the SP! Someone is a masochist!

Noticeably absent from the report was a section explaining how they were going to drag them out of this mess. So why would people invest in them if they themselves have no idea to stop their company from going belly up? Or maybe people believe the company is about to be taken over or liquidate all its assets and therefore return 25c in the dollar (despite what they claim their assets to be)?

Maybe I am missing some news?

[Zaphod]

On the back of a report that looks like the company is being dragged through gorse bushes and cesspools of sewage... a 20% rise in the SP! Someone is a masochist!

Noticeably absent from the report was a section explaining how they were going to drag them out of this mess. So why would people invest in them if they themselves have no idea to stop their company from going belly up? Or maybe people believe the company is about to be taken over or liquidate all its assets and therefore return 25c in the dollar (despite what they claim their assets to be)?

Maybe I am missing some news?

I had an employee once, hired by the HR team but seconded to my team, that would spend every lunch time looking a table of companies listed on the NZX. One day I questioned him on what sort of company he was looking for as he was obviously very committed, to which he replied "Something trading under 5 cents per share so that when it goes up by a cent, I stand to make a fortune". Perhaps he is the phantom trader you speak of.

[blobbles]

Rakon going up a couple of cents can be explained by the fact that sometimes shares do that for no real reason at all. only $59k worth traded, so hardly someone leaping in on projected good news.

Yep, I figured that was the case, I was just amazed that after such an abysmal report, their share price went UP instead of halving in value like I expected. I guess we will just have to wait for someone to eventually call them out on their Asset values for that to happen...

[Alz99]

perhaps they are supplying russia again after there proton M rocket exploded on launch, 3 satelites up in smoke 200 million worth :)

[blobbles]

What's happening over at Rakon? A trading halt after the price has risen 25% in 2 days... Do I smell a takeover? Or a capital raising with prices being manipulated to get closer to the raising SP? Whatever it is I am a little more suspicious now of the last 2 days rise in price on the back of a report that should have seen the floor drop out from under the SP... I would suggest someone knows something material before the rest of the market has been told...

[whatsup]

T H , Whatsup, material ann pending !!

[RTM]

No...not yet !
https://www.nzx.com/companies/RAK/announcements/238269

[blobbles]

lmao, taking 18.8m for an 80% stake in a factory as well as taking a 32.2m impairment hit on it to retire debt! where do they get these guys, seriously?!?! and the market thinks this is good???

That's what I read as well! "We are (essentially) selling 32 million of assets for 18.8 million, while transferring our tech to a Chinese firm."

So the company shrinks and gives away any tech advantage it has/had to the Chinese. Awesome. It also appears they want to exit the consumer electronics market? So after years of saying "LOOK AT THE GROWTH OF THIS MARKET THAT WE ARE INVOLVED IN!!!" they are now admitting they don't have a chance to compete and throwing in the towel?

[blobbles]

And if we were to extrapolate...

If 32 million of assets are worth only 18.8 million, does that mean the rest of their assets are only worth 59% of the quoted value?

[biker]

What have they been doing over there?


'......It’s a purpose-built plant with considerable capacity to be expanded from its current 20% utilisation........'



20% ??

[Snow Leopard]

That's what I read as well! "We are (essentially) selling 32 million of assets for 18.8 million....

As I read it, they valued their stake in the factory at $52M had to cut that to $20M, to sell 80% for $18.8M.
The remaining 5% that they keep is worth $1M2.

Best Wishes
Paper Tiger

[blobbles]

A quick look into the balance sheet of the last company report and after the sale of this asset...





Stated Value ($ million)
Real Value ($ million)


Cash
10
10


Trade & Other
48
48


Derivatives
2
2


Inventory
46
15**







Trade & Other
6
6


Property Plant & Equipment
87
32*


Intangible
25
0


Investments
12
12


Deferred Tax
5
5







Plus 19 million from sale

19







Total
241
149







Liabilities (which I can't see any upside to)
84
84







Position
157
65


CPS
0.82
0.34





* This was calculated at 87-32=55*0.59 (same ratio as assets just sold at)
** Assuming a fire sale on their inventory, most likely if company goes belly up

Not including share capital, negative reserves etc in here as well... I aren't a financial analyst though, feel free to correct any mistakes I have made!

[The BOWMAN]

20% price jump from a pretty negative news. Or is it actually positive? I thought that factory was the best asset they have. The one that they can actually use to generate profit. A slow death with a thousand cuts.

[blobbles]

As I read it, they valued their stake in the factory at $52M had to cut that to $20M, to sell 80% for $18.8M.
The remaining 5% that they keep is worth $1M2.

Best Wishes
Paper Tiger

Holy moly, that would make the assets look rather worse off than they are... the market seems to be loving it though, up 5c now!

[blobbles]

Oh and can I mutter the words "insider trading" under my breath for the Monday to Thursday rise in SP?

[The BOWMAN]

I can't wait to see the next Rakon financial report.

[evag]

I think we are looking at a take-over very soon, their are hints in the report "Market consolidation"!

[blackcap]

Yeah and some poor suckers got in at 27 :) Sorry Sparky but for every buyer there is a seller ;)
But yeah, buyer beware with stocks like this.

[Balance]

Oh sure - I didn't want to put the boot into the buyers at 27c. Merely congratulate those who got a bit more when they sold.

Insider trading complaint launched according to NBR.

NZX totally at fault here - sp moved over 20% in a few days and no price inquiry.

Those who sold out at 22 cents and below should be demanding an inquiry as well.

[Master98]

One most nasty company listed on NZX. AVOID!

[Jaa]

At risk of being laughing at by you guys....

Is there not the possiblity of RAK now being in play along similar lines as FPA??

A Chinese electronics company buys a small stake in a struggling NZ exporter mostly for its technology and international reach only later to mount a full take over...

Granted the Chinese company first needs to actually buy the 5% stake on market as yet only signaled by RAK in their press release and obviously the Robinson family have to want to move on but neither of these things sound that far fetched?

[Vaygor1]

At risk of being laughing at by you guys....

Is there not the possiblity of RAK now being in play along similar lines as FPA??

A Chinese electronics company buys a small stake in a struggling NZ exporter mostly for its technology and international reach only later to mount a full take over...

Granted the Chinese company first needs to actually buy the 5% stake on market as yet only signaled by RAK in their press release and obviously the Robinson family have to want to move on but neither of these things sound that far fetched?

Whether you are right or not, RAK's board are not worth one ounce of trust. Just Avoid. You'll have more luck at the casino.

[Master98]

At risk of being laughing at by you guys....

Is there not the possiblity of RAK now being in play along similar lines as FPA??

A Chinese electronics company buys a small stake in a struggling NZ exporter mostly for its technology and international reach only later to mount a full take over...

Granted the Chinese company first needs to actually buy the 5% stake on market as yet only signaled by RAK in their press release and obviously the Robinson family have to want to move on but neither of these things sound that far fetched?

In No Way, RAK can compareable to FPA, chinese are more smarter than us.

[blobbles]

Well well well, finally the RAK management is going to pay.

PILLORY THEM TO THE WALL FMA!!!! :t_up:

Not sure management will have anything to do with it, unless they were the ones trading. But that would have required notices to NZX most likely, so unless they really really want to break rules it probably wasn't them!

Most likely someone working for the company spilled the beans to a couple of people over some wines during the weekend! That guy/gal might find themselves being harassed...

But I am hoping it was one of the Robinsons, just like you moosie!

In all likelihood though the FMA will "investigate" the matter by calling up some people, someone will lie to them and said "I didn't say nuffin!" and they won't bother to investigate further saying they "thoroughly investigated all parties involved and could find no fault whatsoever".

[Under Surveillance]

Rakon say they did not authorise insider trading [but don't say that was no insider trading]:

4:28pm, 12 Jul 2013 | GENERALRakon Limited (NZX: RAK) is aware of media speculation regarding trading in its shares prior to a trading halt on Friday 5 July 2013 at which time the company announced a strategic partnership with ZheJiang East Crystal Electronic Co. Ltd.
Rakon can confirm no company directors or staff, or their related parties, who are required to comply with the company’s Securities Trading Policy, have sought or been granted approval to buy or sell shares before the announcement.
Bryan Mogridge
Chairman

[stoploss]

Rakon say they did not authorise insider trading :

[B]4:28pm, 12 Jul 2013 | GENERAL

Rakon Limited (NZX: RAK) is aware of media speculation regarding trading in its shares prior to a trading halt on Friday 5 July 2013 at which time the company announced a strategic partnership with ZheJiang East Crystal Electronic Co. Ltd.
Rakon can confirm no company directors or staff, or their related parties, who are required to comply with the company’s Securities Trading Policy, have sought or been granted approval to buy or sell shares before the announcement.
Bryan Mogridge
Chairman

When was the last time someone at this company did put their own cash in .........

[Balance]

When was the last time someone at this company did put their own cash in .........

I think some in the market are saying that there was a quick trade here - buy at 20c before the news and flick out at 26 or 27 cents when the news break.

But the company has stated 'no one sought approval'.

[blobbles]

Their announcement is a bit useless.

It does not say that information was not leaked to a third party about what was about to happen. It simply says the staff didn't buy/sell shares.

Someones wife/husband/friend/brother might have, but hey, I guess that's a bit hard to deny.

[Vaygor1]

Their announcement is a bit useless.

It does not say that information was not leaked to a third party about what was about to happen. It simply says the staff didn't buy/sell shares.

Someones wife/husband/friend/brother might have, but hey, I guess that's a bit hard to deny.

Abso-f**kinglutly. How thick do they think we are?

[Vaygor1]

Abso-f**kinglutly. How thick do they think we are?

Obviously thick enough I guess.

[zigzag]

Obviously thick enough I guess.

Calm down guys. The leak, if there was one, could have easily come from the other side of the deal.

[blobbles]

Calm down guys. The leak, if there was one, could have easily come from the other side of the deal.

Good point zigzag, and probably more likely considering the state of the Chinese market where insider trading is all but promoted.

[Vaygor1]

Calm down guys. The leak, if there was one, could have easily come from the other side of the deal.

Good point zigzag, and probably more likely considering the state of the Chinese market where insider trading is all but promoted.

Good point fellas and fallesses.
Less likely to have come from the Chinese side in my view, but if it did, I'd wager both sides have a few fingers in a few pies.

[Balance]

Good point fellas and fallesses.
Less likely to have come from the Chinese side in my view, but if it did, I'd wager both sides have a few fingers in a few pies.

And the Chinese are dumb enough to think that this is a good deal for Rakon?

Rakon is screwed even further with this deal and there's no reason why anyone would buy Rakon shares!

[blobbles]

And the Chinese are dumb enough to think that this is a good deal for Rakon?

Rakon is screwed even further with this deal and there's no reason why anyone would buy Rakon shares!

The Chinese company, I believe, just got a great deal for themselves. An asset they got for less than half its book value plus current and future access to better technology? Not sure I would be calling them stupid!

That doesn't mean to say they didn't leak details of the deal to someone else of course, who may have interpreted the deal as a big win for Rakon who would reduce most of their debt, hence maybe thought the SP would jump up. Little did they know that we understand that you actually need assets like manufacturing hubs and better technology than your rivals to have an edge over your competition, not just low debt. Rakon just threw all those away.

[Balance]

The Chinese company, I believe, just got a great deal for themselves. An asset they got for less than half its book value plus current and future access to better technology? Not sure I would be calling them stupid!

That doesn't mean to say they didn't leak details of the deal to someone else of course, who may have interpreted the deal as a big win for Rakon who would reduce most of their debt, hence maybe thought the SP would jump up. Little did they know that we understand that you actually need assets like manufacturing hubs and better technology than your rivals to have an edge over your competition, not just low debt. Rakon just threw all those away.

The evidence to date shows Rakon to be most unreliable when it comes to providing timely and accurate information and assessments to the market and its shareholders (outside of the insiders).

Let's see what the NZX and FMA come up with.

Based upon their historical track record, don't hold your breath.

Anyone being brought to task can challenge the NZX and FMA over a few cases where they chose to look the other way and not take action.

[Under Surveillance]

Rakon is screwed even further with this deal and there's no reason why anyone would buy Rakon shares!
Well, two of the Robinsons spent some of their pocket money buying shares last week, according to announcements just posted. Perhaps they think that this will fool the unwashed, or gull the delusional.

[Vaygor1]

thanks sparky, just on the phone so can't be bothered looking up an announcement for a dwad company!

perhaps a cover for the actual insider trading going on?

I was going to look up the announcement but decided I would be more interested in watching the corrugated iron warp on the next door neighbour's shed.... failing that, my shower trap needs cleaning.

[blobbles]

And Rakon appears to continue to be an old boys club:

https://www.nzx.com/companies/RAK/announcements/238681

Am quite amazed that they don't have a single woman in their upper management! Maybe they should think about getting some female directors and listening to them? They sure as hell aren't doing anything right with all the boys on board at the moment... maybe even a female Robinson???

[Snow Leopard]

... maybe even a female Robinson???

That would be a Robindaughter ?

Best Wishes
Paper Tiger

[Guild]

Brilliant PT

[winner69]

maybe for a dog of a company this sort of board make up would work .... and a women as well

Think it came from the New Yorker

[percy]

maybe for a dog of a company this sort of board make up would work .... and a women as well

Think it came from the New Yorker

Snoopy? ?????

[winner69]

Snoopy? ?????

that's mean percy. You mow 10 pensioners lawns for that

[percy]

that's mean percy. You mow 10 pensioners lawns for that

Fair cop!!
Must learn more self control.!!

[iceman]

That would be a Robindaughter ?

Best Wishes
Paper Tiger

Shouldn´t that be Robinsdóttir PT ? Sorry had to get you at your own game, cleverly correcting others :p

[corpr8raider]

Chairman buys shares:

https://www.nzx.com/companies/RAK/announcements/238829

[winner69]

Chairman buys shares:

https://www.nzx.com/companies/RAK/announcements/238829

Insiders buying ...... Good sign ....BUY BUY BUY

[Vaygor1]

Hmmmmmm !!!! I not sure what to make of the directors buying share's, normally(in other companies) it would be a great buy signal, have I become so negative towards this management team that I can't see the wood through the tree's.

Take a look at the volumes purchased. It is a pittance. I am convinced it is nothing more than a ploy. History screams out that one cannot trust these guys.

[blobbles]

With insider trading possibly going on, maybe it is a good time to buy? No wait, that makes it the worst time to buy!

Aren't these the first shares the Robinsons have bought in a long time? It's tempting to believe, if there weren't insider trading claims, that they believe the price has bottomed out and there is some positive results coming. But thats just wilful dreaming I think.

[Crisis]

Does NZX have regulation regarding minimum holding period for the directors between buy and sale?

[Silverlight]

Does NZX have regulation regarding minimum holding period for the directors between buy and sale?

All rules regarding trading by directors specifically are in the Securities Act, and internal policies by each individual company, that are usually designed to protect the company from rogue director trading.

In the act there are no minimum holding periods, however a company may internally have a policy of X amount of days.

[stoploss]

Take a look at the volumes purchased. It is a pittance. I am convinced it is nothing more than a ploy. History screams out that one cannot trust these guys.

Lol they could'nt even get this right....piss up in brewery comes to mind...

[Xerof]

I think it's spelt Robbin'sons

[Master98]

How those idiots can manage a public listed company!!!! shocking.

[tosspot]

Please be careful in throwing around the word "tosspot".

There is a relatively new, enthusiastic Sharetrader member by that name.

I would hate for his enthusiastic and welcome commentary to be confused with the valid shaming of the Robinsons.... :-)

haha that where I got the name, people acting like real clowns. I think its funny

[tosspot]

Good on you for the sense of humour. I hope you don't own any Rakon shares.
it may be my name but im not really a tosspot

[blackcap]

it may be my name but im not really a tosspot
Im glad to hear it tosspot.... I was starting to wonder :) (ie the reason for choosing that name alone....)

[biker]

these toss pots told us 12 month ago the chinese factory was running at full capcity 24/7.
factory now sold for massive loss and only running at 80% ............

It is actually running at 20% capacity according to the announcement of the deal

[Blendy]

lolz @ you two ;)

[minimoke]

Given the usual detailed analysis we have come to expect on nz start ups you can count me in on the basis of the above posts.

[janner]

I wish to clarify, that if possible, I do not want to have any same sex.

SEX !!.. OMG !!.. Said that I would never be interested in this company again !!..

Sex !!.. Oh.. ****.. Been waiting to long for some real action..

Will have to pass on that.. They never turn up with the deal.. :-((((

[moimoi]

Yes, I see they lodged their ID10T forms.

Why did they undertake to sell the shares.........?

Could they not simply gift the "in breach of takeovers code" purchases to Staff (maybe even some of the folk recently laid off) or a Charity...? Who knows, they may even be worth something by Christmas. Such actions could of received some positive publicity even.

Mind you, given the tone of posts on here someone will be soon to suggest that they couldn't give them away i suppose... lol.

[Food4Thought]

from quartz crystal chips to "do you want fries with that?"

........rofl

[Under Surveillance]

NBR's take on this inglorious shambles is at :
http://www.nbr.co.nz/article/nzx-denies-rakon-waiver-over-china-factory-sale-dw-144517
The Robinsons are soon to see a large chunk of their remaining $50 million evaporate.

[BIRMANBOY]

So this is for you Moosie...you can sing along as you wield your hammer:scared:
And here's to you, Mrs. Robinson
Jesus loves you more than you will know wo wo wo
God bless you please, Mrs. Robinson
Heaven holds a place for those who pray
Hey hey hey, hey hey hey


Read more: Simon And Garfunkel - Mrs Robinson Lyrics | MetroLyrics (http://www.metrolyrics.com/mrs-robinson-lyrics-simon-and-garfunkel.html#ixzz2cBONqwmz)


goid, nail the f***tards to the floorboards. trying to go over sh's heads in selling a plant for much less than they paid as they think they are the only 30% that matter. the fact their wealth has evapourated by 70% also fills me with a great joy. the sooner the family withers away and files for bankruptcy, the sooner we can get this scum off the NZX and a better company in its place. I look forward to that day.

[Vaygor1]

goid, nail the f***tards to the floorboards. trying to go over sh's heads in selling a plant for much less than they paid as they think they are the only 30% that matter. the fact their wealth has evapourated by 70% also fills me with a great joy. the sooner the family withers away and files for bankruptcy, the sooner we can get this scum off the NZX and a better company in its place. I look forward to that day.

I wonder how much spin and bulls**t the bozosons will put around 'the deal' at the special shareholders meeting. For the sake of all the other shareholders I hope there are no fans in the room.

[Sideshow Bob]

Yes! Buy exactly one share.

"I comment as a gravely concerned shareholder...."

An old trick of Bob Jones I think.

Question is, could you eat 23 cents (plus minimum brokerage) worth of sausage rolls??

[zigzag]

Question is, could you eat 23 cents (plus minimum brokerage) worth of sausage rolls??

Can they afford sausage rolls?

[blackcap]

you should buy some CRP or AOR shares.... free beer and wine over a 3 hour period at their AGM this year. Must say I was a little sozzled at 8pm!

[Vaygor1]

I'm 27 and still have the mentality, when it comes to free food, of a university student. I say bring it on Robinsons!

They will put on chips and dip.

The chips will not be blue, may be made out of silicon, but will be worthless nonetheless.
The dip will be a permanent one in the share price.

[QOH]

If you took a partner to the AGM you would only have to eat half as many sausage rolls.
When I used to go to AGM's there seemed to be lots of old couples together, most of them probably didn't both own shares.

[stoploss]

ill take my dog, she can eat $30.24 worth of sausage rolls no problem. be a very worthy mascot for RAK as well
Moosie - Think you might be selling your dog a big short here......

[Schrodinger]

Rakon threaten to close factory if they don't get their way.

from what I am reading the factory is a waste of time and money. It also tells me they lied to the public on its performance by saying it was at full capacity.

what kind of idiots run this business.

[iceman]

Scathing commentary from the Shareholder's Association yesterday. At the upcoming AGM they will be voting against the re-appointments of Darren Robinson and Bryan Mogridge but for new Director Herb Hunt.

[Balance]

Yes - an excellent newsletter from the NZSA. Here are the choice bits:

Ah, but have they read Rakon's review where Mr Bryan 'George Kerr lackey' Mogridge declared that 'Rakon's strength is in our ability to adapt to change'?

It is sad to see a person like Mogridge sink to the depths of haplessness he has - something has gone seriously wrong with this guy - he was such an outstanding executive when he was at Montana.

[Schrodinger]

trainwreck...$500M shareholder wealth destroyed and counting.

[Balance]

Mogridge: "it makes no sense to chop and change"

Brent Ribinson: "Darren and I complement each others skills very well"

seriously, how the hell can they think these things? I am going to put forth a mandate to the UN for a surgical strike on Rakon HQ after they're done in syria. they only control 30% of the company, how can other shareholders NOT vote against them at this point in time?! if they are not voted out I am of the firm conclusion the NZ market is totally insane...

http://www.scoop.co.nz/stories/BU1308/S01149/nz-shareholders-association-to-agitate-at-rakon-agm.htm


They have prematurely gone senile?

[Under Surveillance]

F#$% me now I see the problem at RAK these guys( current directors) are so use to working with muppets(each other) they dont even realise that they are the muppets.

Sleep with dogs you will wake up with flee's.
Birds of the same feather flock together.
I reckon you guys are being way too hard on the RAK guys. Surely you can't have forgotten the high regard in which Brent Robinson, for one, is held by the captains of commerce. Less than 12 months ago Brent was a finalist in the prestigious NZ Entrepreneur of the Year bun fight sponsored by Ernst and Young.

[janner]

sponsored by Ernst and Young.

Pencil Pushers Protecting Their Lively-hood By Extending The Dream.. IMHO.. ( Read Bernanke )..

[Balance]

I reckon you guys are being way too hard on the RAK guys. Surely you can't have forgotten the high regard in which Brent Robinson, for one, is held by the captains of commerce. Less than 12 months ago Brent was a finalist in the prestigious NZ Entrepreneur of the Year bun fight sponsored by Ernst and Young.

EY can kiss my posterior :D

[janner]

How can he do that with his tongue firmly in his cheek ??

[blobbles]

the worst part is my work colleague who is much, much older and has a lot more money to pkay with is looking to buy into RAK when it goes lower! doesn't matter what the price is, with those directors there 0.0 is the correct price for RAK


I would think about it at 5 cents. Their real asset worth must be 10c at least... well hopefully... but at that point I would try and get the rest of the shareholders to try and wind up the company! Sorry to the workers their but get out while you can!

What I don't get about Mogridges "No need to chop and change" rhetoric is that they just chopped and changed their Chinese move. Not long ago they were saying how moving into China was going to give them more profit, more products more more more. No, let's chop and change that to say how China is now weighing us down and selling it a couple of years later for less than we made it for is a good idea.

So who is chopping and changing?

[moimoi]

The Grant Samuel report advises total investment to date in Chengdu of NZ$55M and attempts to lay the impending catastrophic losses about to be worn by shareholders at the recent devaluation of the Yen against the US$.

It also notes however that management believes a further US$25M in capital expenditure and an additional US$20M in operational expenditure is required to get the factory fully fitted out.

Go back to the capital raising in September 2009, and it appears shareholders that were relying on publicly available information, were not informed that the the cost of the Chinese Venture was expected to be in excess of NZ$100M.

So while the Yen aspect could be regarded as a recent factor, the primary factor it seems is a woeful assessment by management of the cost of the venture.

What stops the products of the 3 remaining arms of the business from being commoditised just as the SWD segment has...?

[Under Surveillance]

I hope NBR writes a good, long, Robinson-destroying article about Rakon's series of unmitigated disasters, lies, cover-ups, deception, share price manipulation, insider trading and wealth destruction. How some people compare DIL to this ungodly mess of a company is beyond me...
RAK certainly have left few stones unturned when it comes to incompetence and unsavoury behaviour. What more could they do by way of stuffing things up? Perhaps place Guy Hallwright in sole charge of developing relationships in Asia?

[iceman]

The Grant Samuel report advises total investment to date in Chengdu of NZ$55M and attempts to lay the impending catastrophic losses about to be worn by shareholders at the recent devaluation of the Yen against the US$.

It also notes however that management believes a further US$25M in capital expenditure and an additional US$20M in operational expenditure is required to get the factory fully fitted out.

Go back to the capital raising in September 2009, and it appears shareholders that were relying on publicly available information, were not informed that the the cost of the Chinese Venture was expected to be in excess of NZ$100M.

So while the Yen aspect could be regarded as a recent factor, the primary factor it seems is a woeful assessment by management of the cost of the venture.

What stops the products of the 3 remaining arms of the business from being commoditised just as the SWD segment has...?

What has the Yen got to do with their investment in China ? I don't follow Rakon closely but don't understand how an investment loss in China can be blamed on the Japanese Yen !

[moimoi]

What has the Yen got to do with their investment in China ? I don't follow Rakon closely but don't understand how an investment loss in China can be blamed on the Japanese Yen !

Components are priced in US$ and some of RAK's competitors in the SWD segment are Japanese. Devaluation of the Yen allowed them to cut pricing to gain market share.

[iceman]

Components are priced in US$ and some of RAK's competitors in the SWD segment are Japanese. Devaluation of the Yen allowed them to cut pricing to gain market share.

Thanks for the clarification moimoi, now makes perfect sense.

[Schrodinger]

The Grant Samuel report advises total investment to date in Chengdu of NZ$55M and attempts to lay the impending catastrophic losses about to be worn by shareholders at the recent devaluation of the Yen against the US$.

It also notes however that management believes a further US$25M in capital expenditure and an additional US$20M in operational expenditure is required to get the factory fully fitted out.

Go back to the capital raising in September 2009, and it appears shareholders that were relying on publicly available information, were not informed that the the cost of the Chinese Venture was expected to be in excess of NZ$100M.

So while the Yen aspect could be regarded as a recent factor, the primary factor it seems is a woeful assessment by management of the cost of the venture.

What stops the products of the 3 remaining arms of the business from being commoditised just as the SWD segment has...?

Say what..... a brand new factory needs a fitout? Total investment required $45M. Is this what the new Chinese owner has quoted?

[moimoi]

US$45M estimated by RAK, is potentially required to get the factory thru to break even position operationally.

The problem in a nutshell is that while the machinery in the factory is operating at close to 100% of capacity, only 20% of the factory is being utilised and RAK doesn't have the dough to put in more machines.

It seems Chengdu is one of surely only a few large cities in the world, where a brand spanking 12,000 sqm state of the art factory, is worth less than half of what you paid to build it, once its complete. Go figure...

[Schrodinger]

US$45M estimated by RAK, is potentially required to get the factory thru to break even position operationally.

The problem in a nutshell is that while the machinery in the factory is operating at close to 100% of capacity, only 20% of the factory is being utilised and RAK doesn't have the dough to put in more machines.

It seems Chengdu is one of surely only a few large cities in the world, where a brand spanking 12,000 sqm state of the art factory, is worth less than half of what you paid to build it, once its complete. Go figure...

Sounds like the management made misleading statements "this is about to operate at 100% capacity ". I remember reading this from one of their press releases. It should of read: operating at 100% in a small corner of the factory. We have room for 10 times more machines.

[blobbles]

Sounds like the management made misleading statements "this is about to operate at 100% capacity ". I remember reading this from one of their press releases. It should of read: operating at 100% in a small corner of the factory. We have room for 10 times more machines.

Wouldn't be the first time and it won't be the last. That is about the only thing we can be sure of from RAK - lies and half truths.

[blobbles]

A full year loss of 32 million, selling assets to not go into debt, a clear cash cow for the people running it... how long has it got?


Their assets = 124 million, though this includes 23 of non tangibles, so 100 million. Yet they are perfectly OK selling stuff for half its declared value, which makes me think the value on their paper is probably half actual value. So maybe this should be 50 million? This is 26c per share. Losses of 32 million a year, which means they could probably keep the company going for another year, by selling off some more stuff (which they will clearly do). End of 2014 this puppy will be wound up?

[blackcap]

just got a mention on channel 3 business news report by Nick Tuffy. Said they were going to make a loss for FY 14 but expected to be back in profit for FY 15 after the restructuring....

Hmmmm yes I guess he couldnt really say anything else on the news.

[winner69]

Our mate Mogridge reported as saying "becoming a market darling was often the kiss of death"

Some would say having Mogridge. As Chairman is the "kiss of death"

[Balance]

Our mate Mogridge reported as saying "becoming a market darling was often the kiss of death"

Some would say having Mogridge. As Chairman is the "kiss of death"

Pathetic comment from a loser.

[Balance]

Pathetic comment from a loser.

Oops - of course I meant Bryan Mogridge!

Here's hoping W69 reads it like I meant it for! Sincere apology if you are offended.

[Balance]

"Bryan Mogridge" is this our PGC friend , Oh dear..... can one ever believe anything this man says? Who was the idiot that put this man in charge...

I saws Bryan the other day and he had a t-shirt with the words 'Muppet for hire'.

In bold red letters, the back of his t-shirt read :" George Kerr and Brent Robinson available for references"

[janner]

the only assett's RAK now have is machinery. (and the banks know it)
One thing for sure is it will be way over valued on the books.
RAK machinery has little resale value because it is job specific.
Apart from the the odd componet RAK machinery is scrap value.

Combine this with poor management RAK is IMHO worth a highly speculative 4-5 cps

It appears that you have more money than sense snapiti.. ..

Surely any one with more than 5 cps to invest on spec, could quite easily find some where better to place it..

Oh !!.. Forgot.. There is still LL out there .... Some where..

[janner]

hell's teeth Janner I would not do it with my own money or sudgest anyone does.

Just trying to question why the shares are still at current levels.

Could LL be an insider ??.. Attempting to support ... ???..

Long time not here supporting..

Are there any members of the inside Rakon family called LAURENCE.. ??

Lazy and Robinson .. Makes one wonder..

[Balance]

I still want the FMA to ping them on insider trading. it was blatantly obvious and I can't see how they could miss it (although their laziness and ineptitude is quite amazing and can only be compared to RAK...)

They bought their shares after announcement of sale of China plant. I think that's ok.

What is not ok is that they breached takeover rule and NZX decided to waive breach.

[Balance]

I'm not refferring to their buying shares. I. refferring to the huge price increase in the days before the announcement as it was obvious someone with knowledge was buying up.

Got you. My apologies.

That's for FMA and NZX to investigate and prosecute if appropriate however - not Rakon.

They need someone to complain before they will get off their backside and investigate - too much hardwork, see?

[blobbles]

Wow, Rakon got signoff from the majority that selling their Chinese plant is OK!

https://www.nzx.com/companies/RAK/announcements/240905

Big surprise when the majority have Robinson as their last names (either directly or through Trusts). I think that's right isn't it? The Robinsons own rougly 40% directly then there is another 20% owned by a trust they control? Wait, am I just making this up or did I read this somewhere?

[janner]

only 330,000 against and 9M+ for??? jeez, shareholders must be pretty scared of their capital disappearing forever if they did say yes! more telling is how many abstained from voting though...

moosie... What is your problem ??.. How many shares do you own in RAKON ??

Why the constant rant against a company that is well known as a complete DOG ??.

Let sleeping dogs lie.. ( Oh ****.. Was that the correct spelling )..

[janner]

i used to own some at 60 and sold out at 62, maybe one of the very lucky few who ever made some money from the company!

I take pleasure in warning smaller investors, who are at a disadvantage 95% of the time compared to the larger fish out there, off investing in companies that destroy their wealth. case in point right here. the longer it is at the top of this forum the better. you should try it sometime, feels good helping others once in awhile...

Nice to know that there is some one on here that is all heart !!. :-))

[iceman]

All RAK have achieved by this latest deal is to get the bank off their backs for a longer period.

NBR reporting yesterday that documents relating to the sale of the Chinese factory has been held up by customs in China, "causing the timing to conclude the deal a little tight now".
Are the Chinese getting cold feet and if so, what does it mean for RAK ? The banks may not be happy if the sale doesn't go through !

[Balance]

thanks janner, I am committed to the sharemarket and best practices when it comes down to it. a few stacking the field against the rest is not a way to run a business or inure shareholders for the best of all.

iceman, its the usual chinese BS delaying tactic trying to get the best deal possible by potentially pulling out when they intend to go ahead no mater what. have to put up with that kind of crap when doing business in that country!

Rakon is a babe in the woods when it comes to doing deals in China.

What ever happened with the Huawei deal which was going to quadruple sales for Rakon?

RAK
20/08/2012 08:30
GENERAL

REL: 0830 HRS Rakon Limited

GENERAL: RAK: Rakon & Huawei Technology Partnership

Technology company Rakon (RAK) will today sign a letter of intent with
Chinese Huawei Technologies Co. Ltd. The deal targets a quadrupling of
Rakon's sales to Huawei over the next five years to USD56 million.

Rakon's product range, advanced technology and competitiveness were
significant factors for Huawei, who will use the company's frequency control
products in its handsets, smart devices and infrastructure programmes.

[karen1]

As snapiti said above, me thinks they have something to hide, and they did:

http://www.stuff.co.nz/business/industries/9146408/Rakon-profit-warning-disturbing

[winner69]

As snapiti said above, me thinks they have something to hide, and they did:

http://www.stuff.co.nz/business/industries/9146408/Rakon-profit-warning-disturbing

This is the man who said the warning about a huge loss didn't affect the vote for him to be re-elected. Yes the 17% who said no had already made their minds up

[_Michael]

This is the man who said the warning about a huge loss didn't affect the vote for him to be re-elected. Yes the 17% who said no had already made their minds up

When is a mo ok?

[karen1]

Interesting to read the Rakon site top 20 holders, one of which is HLR Holdings Company Ltd, which I cannot find on the Companies Office Register. Oddly enough though, a google shows the address as 1 Pacific Rise, which looks likes it's right next door to RAK... bit hard to see, it's (hiding) behind the trees!

[Silverlight]

Directors selling at these low levels, not a good sign at all.

The Robinson Trust sold 50k shares for just $10k, still hold over 10m, they can't be that hard up for cash can they?

[Silverlight]

I think they are still over their 20% limit, so HAVE to sell down. idiocy in action!

20% limit? Are they been forced to hold less than 20% of the company?

[goldfish]

Haha now they are comparing there position with ibm...bunch of dreamers.

[Jay]

Beat me to it goldfish
Yes they say they are in a similar position to what IBM once was and looked what happened to them

It must be a buy buy buy now while the sp is so low, won't see 20 cents again!

[stevo1]

Haha now they are comparing there position with ibm...bunch of dreamers.

Goldy does ibm stand for incompetent bunch of morons or incapable brewhaha of miscreants or do they think they are like that big American IBM or is there another definition

[baller18]

Why are ppl still buying rakon shares?? :SSS

[janner]

Why are ppl still buying rakon shares?? :SSS

Well my guess would be ..

1. They do not read this Forum.
2. They are mostly " Newbies " Looking for a quick buck.
3. Robinson's ( or " Friends " ) desperately holding the price up with such low numbers being traded.

Just be grateful baller18 that you have had the good sense to be on here ..

As you walk away shaking your head in disbelief.. :-))

[winner69]

Maybe they are Mogridge followers

After all PGC is 50% of its lows

Maybe think that RAK can follow and get to 36 as well

[janner]

Maybe they are Mogridge followers

After all PGC is 50% of its lows

Maybe think that RAK can follow and get to 36 as well

Bwahahahaaa..

[Vaygor1]

Here is yet another article regarding this bunch of peewits... 3news this time. Rakon's impudence is unbelievable. The share trades were illegal and they neither bought no sold any except to each other from what I can tell. Then in their statement, Rakon say "The off-market purchases reflect the confidence of each in the company's current position and prospects and are a signal to investors of their continued commitment to the company".

I can't find the words to describe my negative opinions on the Robinsons and the entire board to any degree of satisfaction without resorting to swearing.

http://www.3news.co.nz/Rakons-Robinsons-shed-illegal-shares/tabid/421/articleID/313609/Default.aspx

[Under Surveillance]

An absurd aspect is that the Robinsons offloaded shares to "independent" director Irvine in an off-market transaction. If Irvine genuinely was independent he not have had a bar of that. After 8 years as a lickspittle on the RAK board, Irvine clearly is past caring who sees he is not independent in the slightest.

[karen1]

And... he was appointed a mere 16 months ago, according to the companies register. Maybe he is very wise.

[karen1]

and the latest, no surprise:


Equity Transfer Agreement - Settlement & Completion

8:52am, 30 Sep 2013 | ASSET

30 SEPTEMBER 2013 (RAK)

RAKON & ECEC EQUITY TRANSFER AGREEMENT – SETTLEMENT & COMPLETION

Further to Rakon Limited’s (NZX:RAK) announcement on 13 August 2013 in relation to the ECEC Equity Transfer Agreement, Rakon advises that settlement & completion is now expected to take place during October 2013.

The previously expected completion date of 30 September 2013 relied on the timely processing of approvals through a number of Chinese regulatory authorities. The delay is simply a result of moving timelines associated with a number of agencies approving a transaction in China, rather than any specific approval issue or change in commitment from either of the parties. Rakon will advise on the completion outcome during October.

-ends

[moimoi]

Hmmm...The ability to repay a large portion of the companies debt courtesy of ECEC has left the market unmoved..

I wonder how that "intention" to purchase a stake of up to 5% of Rakon's shares on-market is coming along...?

[winner69]

RAK one of the stars of the NZX today ... up 10%

The euphoria from XRO and PEB must be spreading .... nothing can go wrong

RAK to double in next few weeks .... you never know

[golden city]

double down chance better than double up i guessed

[blobbles]

RAK one of the stars of the NZX today ... up 10%

The euphoria from XRO and PEB must be spreading .... nothing can go wrong

RAK to double in next few weeks .... you never know

Oh god, why would you? It may be up 10% today but that is on $2700 of trading and no new announcements. I think you are in dreamland if you imagine this stock is ever going to double. It is much more likely to halve.

[blobbles]

a rising tide lifts all boats

Except the ones with holes in them that are rapidly sinking!

[Vaygor1]

Any new news on Rakon lately? I feel like I need some jokes/negativity today :)

No news but I do have some ANAGRAMS.

Warren Robinson = Err owns no brain.
Simon Bosley = Noise symbol.
Bryan Mogridge = Grim danger boy.
Bruce Robertson Irvine = Verb: Rob in intercourse.
Darren Robinson = Droner, no brains.
Brent Robinson = No Sir, born bent.
Peter Springford = Ferret droppings.
Peter Maire = Perimeter 'A'.
Herbie Hunt = Burn it, hehe

[Schrodinger]

Producing more to increase losses. Good strategy..

[ratsinvest]

Guys, this is fascinating. I just read the first few posts in this thread and it looked like Rakon had a great idea and implementation. Can someone please summarise what happened between 2006 and now?

[karen1]

The sons of the father

There are surely no surprises in today’s ann., if anything I expected worse. My guess is maybe three more anns, the last of which will be final, and by the time that comes out the family will have milked the “business” for every last cent, and of course that includes any shareholders left.

This business has long since become unique, in that it is the only one I am aware of which has for several years formed into an entity seemingly designed to do very well for the family, no one else. Creative accounting at its best? Renting/leasing buildings to/from each other?

I haven’t been in the markets a lot of years, but this, for me, is the worst rip off of shareholders I have ever seen, when one realises that the business was born in a garage out of a very bright mind. I no longer believe that mind has very much to do with the current running of the business, could be wrong. The appalling rhetoric that has gone on over the last several years serves to show that greed is a sickening trait, as in this case it is, and only, the family who have done extremely well.

From the annual meeting: "We are very confident that we will become profitable next year" Profitable for whom, I wonder. And where have I read that before, and before.....pass the Tui

[moimoi]

Hi All,

Did anyone listen in to the conference call? Was there anything remotely positive within it? (the results presentation slides showing volume up with revenue down looks toxic!)

[goldfish]

Why dont the media come down harder on these clowns?

[Hoop]

Half year disaster:

https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=3485779

One of the best performing shares on the NZSX today 23c up 1c (+4.5%)....

logic says.... another 500 disasters will see the shareprice back up to where it once was

[janner]

Guys, this is fascinating. I just read the first few posts in this thread and it looked like Rakon had a great idea and implementation. Can someone please summarise what happened between 2006 and now?

There are only 1700 odd posts.. Read them all and weep.. A good learning exercise :-)0

Disc.. Never held.

[zs_cecil]

Why do people still seem very keen on buying this stock despite its disastrous management and much poorer financial result? Interesting....

[blobbles]

Why do people still seem very keen on buying this stock despite its disastrous management and much poorer financial result? Interesting....

It does make you scratch your head huh? I often wonder if the Robinson's sell to each other for ****s and giggles, or just to keep the SP up. Not saying they do, but it wouldn't surprise me!

[Leftfield]

Must confess I once owned this stock.... I purchased on the strong rec of a Craigs broker and lost heap. I would never touch this stock again, nor listen to the relevant broker again.

My learning; "anything that doesn't kill you makes you stronger." I now do my own research, don't listen to brokers, and purchase shares via DB. I've now made all my losses back, showing gains of over 86% pa on my personal portfolio and over 101% on my 'stock picking competition' results. Revenge is sweet.

[blobbles]

One must assess now the potential profit of the company for the next few years... What is best case scenario? 10 million profit in 5 years time? That would be eps of 5c a share.. Say they were going to return 2c of that to shareholders (unlikely given their history) that gives em a fundamental value of 28-72c in 5 years, best case scenario.

Worst case.... Well, I think we all know what that would be... Eps of minus quite a lot.

I am betting they will just keep the company breaking even so they can continue to support their lifestyles, or make a small profit that shareholders will never see.

[blobbles]

I am just like you Left Field! The only difference is my portfolio and stock picking compo results are reversed! :-p

[warthog]

Must confess I once owned this stock..

The hog once held a small position in RAK but realised the circumstances were not favourable and departed the RAK register on very marginally negative terms.

RAK is a dog says the hog.

[zs_cecil]

I am betting they will just keep the company breaking even so they can continue to support their lifestyles, or make a small profit that shareholders will never see.

This sounds very pathetic for this used-to-be great company with a great product.

[blobbles]

This sounds very pathetic for this used-to-be great company with a great product.

Self interest took over a long time ago at Rakon. Look back in this thread and you will see myself and a few other users calculate that the Robinson family rakes in (pun intended!) $2.2 million a year at least in rent payments and salary benefits REGARDLESS of their performance. They make a profit or break even, salary increases hugely. They make a loss, no change in salary.

The Robinsons are clearly milking it for as long as they can.

[Vaygor1]

Look at the timing of these announcements.

14-Nov-2013 9:39am
RAK announce a 1/2 year disaster of a loss.

40 minutes later.
RAK announce a dial in 'presentation' and business update of the 1/2 year result with 40 minutes notice.

Another 40 minutes later.
RAK hold the 'presentation' (this is an assumption as I did not dial in).

This is one one of the most gutless things I have ever seen from a board. I mean 40 minutes notice?... to present a loss that the 1/2 year announcement tries to smooth over by describing it as 'substantial'.

Totally and utterly unacceptable.

Disclosure: I have never held, do not hold, and will never hold.


ADDRESS: RAK: Rakon HY14 Results Presentation & Business Update
RAK
14/11/2013 10:19
ADDRESS

REL: 1019 HRS Rakon Limited

ADDRESS: RAK: Rakon HY14 Results Presentation & Business Update

This presentation supports the announcement of Rakon's 30 September 2013 Half
Year Financial Results and teleconference to be held at 11:00am today; 14
November 2013.

The full presentation will also be on the companies website from today -
www.rakon.com.

Dial one of the following access numbers listed below and enter the PIN code
followed by the # key
....

[Vaygor1]

They should rename Rakon to Bacon in an effort to capture the essence of what the board really are.

[winner69]

Robinson "we did the right thing by selling our china factory"

[winner69]

From radio nz

Rakon defends selling major stake in Chinese facility
Updated at 7:56 am on 15 November 2013
Rakon says selling most of its factory in China was the right thing to do despite the company making a loss because of the sale.
The crystal timing devices manufacturer on Thursday reported a $45.7 million net loss for the six months to September with just over half that due to selling 80% of its Chengdu factory.
Managing director Brent Robinson says the result is disappointing but selling its assets in China was the right move.
"If we look at the further erosion of prices and negative margins that we see in that market, we believe that we absolutely have done the right thing."
Mr Robinson says Rakon's partner in China is much better positioned to make the necessary capital investment and hopefully grow the business to a strong player in China.
Rakon's first-half loss widened from the previous year's $3.96 million.
The result is also worse than the $33 million loss Rakon reported for the 12 months to March.
But Mr Robinson, is promising the company will make an operating profit in its second half and reaffirmed guidance the operating result for the full year will be between a $3 million loss and break-even.

[winner69]

All good on the western front ......moving from putting crystals into missiles and other evil uses into something productive and good for the world

Can't go wrong if associated with John Deere ...and heck the markets worth nearly 4 billion bucks

The gods will look down on them now


. Rakon predicts huge growth in precision agriculture market

Updated at 7:56 am on 15 November 2013

A high-tech New Zealand company has its eye on the precision agriculture market.
Rakon specialises in advanced crystal and oscillator technologies that are used in global positioning and navigational systems.

Rakon managing director Brent Robinson says it's believed the global precision agriculture market will be worth $3.7 billion within five years as farmers adopt increasingly sophisticated technology.

He says precision agriculture is a rapidly growing field and GPS devices are being put in tractors, automatic steering and asset management.

Mr Robinson says tractors are being manufactured that do ploughing and crop fertilising - but have no drivers.

He says the market is emerging and one of Rakon's customers, John Deere, believes it's so important that they have their own GPS division, and Rhttp://www.radionz.co.nz/news/rural/227797/rakon-predicts-huge-growth-in-precision-agriculture-marketakon is a key part of that.
http://www.radionz.co.nz/news/rural/227797/rakon-predicts-huge-growth-in-precision-agriculture-market

[Vaygor1]

"Rakon managing director Brent Robinson says it's believed the global precision agriculture market will be worth...." blah blah blah


It is a crystal for crying out loud. The gypsies have been using them for centuries and look how advanced they are... still homeless.

...and to use the term "global precision agriculture" to describe a farmer with a tractor?... give me a break.

[winner69]

It is a crystal for crying out loud. The gypsies have been using them for centuries and look how advanced they are... still homeless.

...and to use the term "global precision agriculture" to describe a farmer with a tractor?... give me a break.

A bit like 'Boardbooks' to describe something with the meeting papers on it eh ...... Give me a break

[blobbles]

All good on the western front ......moving from putting crystals into missiles and other evil uses into something productive and good for the world

Can't go wrong if associated with John Deere ...and heck the markets worth nearly 4 billion bucks

The gods will look down on them now


. Rakon predicts huge growth in precision agriculture market

Updated at 7:56 am on 15 November 2013

A high-tech New Zealand company has its eye on the precision agriculture market.
Rakon specialises in advanced crystal and oscillator technologies that are used in global positioning and navigational systems.

Rakon managing director Brent Robinson says it's believed the global precision agriculture market will be worth $3.7 billion within five years as farmers adopt increasingly sophisticated technology.

He says precision agriculture is a rapidly growing field and GPS devices are being put in tractors, automatic steering and asset management.

Mr Robinson says tractors are being manufactured that do ploughing and crop fertilising - but have no drivers.

He says the market is emerging and one of Rakon's customers, John Deere, believes it's so important that they have their own GPS division, and Rhttp://www.radionz.co.nz/news/rural/227797/rakon-predicts-huge-growth-in-precision-agriculture-marketakon is a key part of that.
http://www.radionz.co.nz/news/rural/227797/rakon-predicts-huge-growth-in-precision-agriculture-market

So they are beating the same drum as they did a few years ago when they were talking about the huge growth in the smart wireless devices market... If investors haven't learnt yet how the Rak-con artists operate, there is no hope!

[blobbles]

Just figured out what the ticker translates to:

Robinsons
Are
Konning

[Schrodinger]

http://ir.arm.com/phoenix.zhtml?c=197211&p=irol-homeprofile

What Rakon should of turned into

[Vaygor1]

http://ir.arm.com/phoenix.zhtml?c=197211&p=irol-homeprofile

What Rakon should of turned into

What Rakon has turned into....

5131

.... can we put a crystal in that and call it Global Detritus Positioning Technology to ensure the s*** really does hit the fan?

[corpr8raider]

Not the darling it once was, but surely it's still worth a trade as it bounces around the 20c mark?

[Vaygor1]

Not the darling it once was, but surely it's still worth a trade as it bounces around the 20c mark?
Why bother? More fun and better odds at the casino.

[janner]

Why bother? More fun and better odds at the casino.


18.5 today..

Almost reaching Lazy Larry's support price of $0.15

A BARGAIN..

What ever happened to him ??

It's not you is it moosie ?

[janner]

Me thinks thou protesteth to much moosie :-))

In for a killing are you ??

Hahahaaa..

[janner]

I prefer not be hung up from the roof by my hooves and have my carcass hacked at thank you very much!


Yeah right.. About .. May .. The roaring season !!.. :-))

Well some one will be getting rooted :-)

[JohnnyTheHorse]

http://www.stuff.co.nz/business/industries/9614518/140m-in-grants-to-high-tech-businesses

Rakon have received a R&D grant from the Government. What a waste of taxpayer money.

[Balance]

http://www.stuff.co.nz/business/industries/9614518/140m-in-grants-to-high-tech-businesses

Rakon have received a R&D grant from the Government. What a waste of taxpayer money.

Yup - money to fund the next fleet of BMWs, corporate largess and first class flights for the directors and executives.

I throw my worn out shoes at them.

[Santiago]

What a joke. Maybe they'll use the funds to get their gps crystals on donkeys.

[couta1]

Seems like the Govt wants to support this company by giving them free money perhaps they could look at taking an equity stake to really gets things moving and of course they could share limos so that would save money also:scared:

[winner69]

Another plant to close and another profit downgrade ...or rather a loss upgrade ha ha ......just as well for those grants eh

It's all ok though ....positive EBITDA in 2015

[bull....]

management good at something a

[winner69]

The DIL chart is rather like the long term RAK chart - even with the recent spike in DIL. Spooky eh

[Santiago]

Another plant to close and another profit downgrade ...or rather a loss upgrade ha ha ......just as well for those grants eh

It's all ok though ....positive EBITDA in 2015

What, you don't believe them?

[Hawkeye]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11187481

http://www.nbr.co.nz/article/rakon-coming-back-home-cost-db-150722

[blobbles]

And surprise surprise, Rakons guidance goes backwards again. This will likely happen 2 or 3 more times this year if previous years are anything to go by.

[Santiago]

Yes, no small irony that a company making GPS components has crap guidance.

Anyone would think they've lost their way

[Toasty]

I am sure most have seen this but it seemed worth mentioning. Rakon making the news for all the wrong reasons again.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11214233

Dics: not a holder although this was a company recommended to me at various functions a few years back. Thanks goodness I am slow to move...

[Balance]

and the muppet shows continue's.
RAK fined 30k plus has to pay all costs(which including their own lawyer's, the nzx lawyers and the tribunal will be alot more than 30k)
But the government has just given them 10 million so no problems.
Good to see the NZX keeping an eye on market announcement timings.

That being the case, why is the NZX not fining NZOG for differential timing of announcements?

[Leftfield]

Phew, what a joke RAK has turned out to be.

(Disc not holding and sad for those who are.)

[Leftfield]

Last one out, turn out the lights



Rakon Limited (NZX:RAK) ("Rakon") advises the market that it expects to


report a Net Loss After Tax (NLAT) for the year ended 31 March 2014 of -$79.9


million (previous guidance of NLAT of -$59 million to -$55 million).

[Balance]

"Accelerated depreciation on Property Plant and Equipment".

Read: we lied about NTA (the only good thing about RAK) and we now have to cover our asses as the auditors will figure it out sooner rather than later.

What a joke. I hope the Robinsons commit hari kari sometime in the immediate future...

No, cannot do that! Who will then drive the company BMWs?

[Xerof]

They need the Beemers to accelerate away from irate investors at the AGM:p

[Balance]

They need the Beemers to accelerate away from irate investors at the AGM:p

Hush - they may switch over to Mercs then!

[Balance]

They need the Beemers to accelerate away from irate investors at the AGM:p

Hush - they may switch over to Mercs then!