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Walter

26-05-2022, 03:38 PM

No I disagree. This co. has produced zilch for shareholders since listing. Retaining earnings simply keeps money in the bank for executive and director remuneration.
They should distribute profits to shareholders and take accountability in the lean years and take personal responsibility.
Robinson family have made a good living from this business and as retirement inevitably looms they'll probably find a buyer and disappear. It should never have listed.
The market is showing its contempt today.
Maybe next year.....maybe next year...maybe and on and one it goes.
It's been steadily adding value for four or five years now. There was nothing stopping a shareholder averaging down and buying at 15, 20 or 30 cents. They have been so profitable recently that all of their NZ tax losses have been used up. That said, it's a shame that they didn't offer a token dividend - say 0.5 cents a share. There are some fund managers that will not buy in without a dividend.

LoungeLizzard

26-05-2022, 05:50 PM

Strange to see the SP tank today - down by nearly 7% - on the back of record profits, margins, strengthened balanced sheet, continuing demand etc etc. The Directors need to pause before they lift their champagne glasses and give some thought about their decision not to pay any dividend. It seems the market didn't like hearing the echo of Rakons past self-serving management. I haver to agree. I get the argument that they need to invest profits back into the business but really - all of it? Could they not have paid even 2-3c out of that 23m surplus cash? They operate in a forward ordering environment so they must have a pretty good idea about the immediate future of the business, so the question remains about their dividend policy - if not now, then when? Why not set the bar low at 30-40% of net profits? Why do they feel the need to decide each year whether they can pay or not? Where is the certainty for shareholders in that? What is the criteria for paying a dividend - seems like it is just a vague unspecified notion of how the business is going. Not good enough.
Rakon still seems to find it hard to operate as a publicly funded business, with responsibilities to its shareholders. If they want to keep profits in the business or in fat salaries to themselves, then de-list. They have along history of wanting their cake and eat it too. They won't attract institutional investors - or indeed any investor - if they continue in this vein.
disc. disgruntled holder.

Beagle

26-05-2022, 06:01 PM

I totally get where you are coming from LoungeLizzard. I won't invest in any company that makes good earnings but won't at least pay a reasonable portion out to shareholders. All such companies are on this Dog's banned list.

Rawz

26-05-2022, 06:19 PM

NZs love affair for dividends is real

winner69

26-05-2022, 06:29 PM

NZs love affair for dividends is real

A love affair that isn’t good for the markets …..better off letting the likes of Rakon reinvesting it for more growth.

If punters want a divie buy an utility or something …..even retailers aren’t too bad at that game.

I’ve never understood what so many love divies as much as they do.

moimoi

26-05-2022, 07:10 PM

Unless your in the top 175 shareholders then whats a 2c dividend gonna do..?

Probably Sweet FA.

They just told you they are making 56% gross margins on some products so let them continue to do so and all holders will be well rewarded.

They haven't paid a dividend since listing in 2006...if your still hanging in here praying for a dividend then your next call needs to be to your parents and you can bleat to them about growing up in a bedroom with lead paint on the walls.

Wanting dividends?...your in the wrong stock.!

Given the environment fantastic results today. Big up's to the NZ team re-purposing old machines to get the large IOT order out from design to shipping in 3 months.

Classy outfit, misunderstood, as evidenced by some of the bleating on here.

GLTA.

LoungeLizzard

26-05-2022, 07:14 PM

A love affair that isn’t good for the markets …..better off letting the likes of Rakon reinvesting it for more growth.

If punters want a divie buy an utility or something …..even retailers aren’t too bad at that game.

I’ve never understood what so many love divies as much as they do.

You will know, or should, Rakon's chequered history when its comes to "reinvesting for growth." I wasn't an investor back when it listed but some lost their shirts in believing Rakon's growth strategy. The only thing that grew was the Robinson'a bank account and shareholders ulcers.
Which is why, this time around, the Directors had an opportunity to break from the past and put shareholders first. They instead are asking them to believe in yet enough growth strategy, with no fixed date or criteria for paying dividends. Based on their repeated record earnings and prospects for further earnings yet, a small dividend was warranted. It isn't even so much about the actual amount - as I say a nominal amount would have sufficed - more about a confirmation that a change in management culture and attitude has bedded in. I have my doubts now. Tread carefully with this one.

LoungeLizzard

26-05-2022, 07:23 PM

You're cool with no divvies and the SP continuing to slide? Interesting investment strategy. But hey, don't worry, be happy;)

Walter

26-05-2022, 07:27 PM

By reinvesting in the opportunities they see they are putting shareholders first. That said, I think they should have offered a small dividend with a dividend reinvestment option.

Rawz

26-05-2022, 07:28 PM

moimoi

26-05-2022, 07:37 PM

You're cool with no divvies and the SP continuing to slide? Interesting investment strategy. But hey, don't worry, be happy;)

As the largest shareholders a dividend disproportionately benefits the Robinsons which ironically is something you seem to be railing against.

For the 30% of shareholders holding less than 2,000 shares a 2c dividend will do sweet FA.

By reinvesting profits in the business the large decision making shareholders are attempting to grow the pie for everybody. The opposite of the "snouts in the trough" narrative that has raged on here for the best part of 5 - 10 years.

Go figure.

GLTA.

CatO'Tonic

26-05-2022, 07:45 PM

I don't mind not getting dividends as if they had a drp I'd participate in it anyway, which kind of puts the money back in the company's hands.

nztx

26-05-2022, 08:22 PM

Cycle back a few years -- the next ATM in the making .. Oh hang on a moment ;)

What could possibly go wrong with a pool of dedicated followers ;)

Poor stakeholders .. looks like you lot just got put on the RAK for some more of the
same punishment while the subject continues to make gaga noises of full steam ahead
but none, not one bit of shrapnel will be chucked out the window your way .. again :)

moimoi

26-05-2022, 08:37 PM

Comparison to ATM?...Just LOL.

ATM a one trick pony selling its baby product into a single market with an ageing demographic.

Nvidia told us today of an 83% year on year increase in sales to data centers.

Data centers one of 4 broad demand drivers for RAK.

GLTA.

Rawz

26-05-2022, 08:44 PM

RAK has so far today been compared to FPH and now ATM. Lol

LoungeLizzard

26-05-2022, 08:50 PM

As the largest shareholders a dividend disproportionately benefits the Robinsons which ironically is something you seem to be railing against.

For the 30% of shareholders holding less than 2,000 shares a 2c dividend will do sweet FA.

By reinvesting profits in the business the large decision making shareholders are attempting to grow the pie for everybody. The opposite of the "snouts in the trough" narrative that has raged on here for the best part of 5 - 10 years.

Go figure.

GLTA.

Great theory but it ignores past history. I dare say people were saying exactly the same thing back when 85% of shareholder value was trashed in 1 year. You may be right this time - time will tell - but returning some profits back to shareholders is a milestone that most companies, properly run, should aspire to. If nothing else, it shows confidence Directors confidence in the future of the company.

nztx

26-05-2022, 09:03 PM

I guess the history tells us why RAK isn't a $5 share nor likely to be soon :)

Muse

26-05-2022, 09:04 PM

SPC

26-05-2022, 09:09 PM

Actually I think the Directors and Executive management are scared to pay out dividends because that sets the bar against which they will be judged. Safer to keep the profits for 'investment' in the business aka forward banking salaries from blue ink on the ledger rather than red.
There be won't be a Phoenix from the ashes moment with RAK. It's just going to muddle on year in year out. More recent holders need to believe the story, after all you don't buy something without hope and optimism.
Rakon isn't an F&P in the making. It never was and never will be. The market ignores it . And today your saw and heard why.

nztx

26-05-2022, 09:15 PM

NZTX true to form - meandering from one thread to another, contributing drivel with a heavy dose of smiley faces.

Not really Moose - you'd have to be fairly dedicated or long suffering to like RAK

Sorry to blind you with the smilies

Put your sunnies on, then you won't notice them .. or the acres of Red on NZX tables either :)

Raro

26-05-2022, 09:47 PM

Not really Moose - you'd have to be fairly dedicated or long suffering to like RAK

Sorry to blind you with the smilies

Put your sunnies on, then you won't notice them .. or the acres of Red on NZX tables either :)

It does seem that the share price (not the business' value) is based on disgruntled previous holders. What a waste of time and energy from said previous holders. This business has dug itself out of an almightly hole and is now at the forefront of technology we all use right now and leading the way in tech they simply can't talk about based on todays call (defence, space etc). This should be a Kiwi success story but some pissed off punters from 2006 seem to be having some sway. I say shame on you. Disclaimer - I'll keep buying if you keep selling.

Azz

29-05-2022, 09:10 PM

So devoid of reason: the paying of dividends to prove what exactly I don't know. As for "long sufferers", why not sell out and be gone? Seems to be all negativity and complaints and bashing here on this website. Give Rakon time to grow, from now, not from "history".

nztx

29-05-2022, 09:16 PM

Azz

29-05-2022, 09:17 PM

Do we have a new seasoned investor among us with lamp post holdings (or none) ? :)

You make a lot of stupid assumptions.

Walter

30-05-2022, 08:34 AM

Do we have a new seasoned investor among us with lamp post holdings (or none) ? :)
I got a small allocation in the float, which I kept so that I could keep up to date with the company. About five years ago, I noticed that they had turned the corner and the future was looking bright, so I greatly increased my holdings. Those that chose to invest looking in the rear view mirror instead of the windscreen missed a great opportunity, Rakon is up 10 fold since then. The company is different than it was.

SPC

30-05-2022, 09:13 AM

Sideshow Bob

30-05-2022, 09:28 AM

I wonder how many of those who chose to invest in the high $1s and early $2s in the recent euphoria run wished they HAD looked in the rear view mirror. It's going to be a long trip ahead. 16 years on the road and no snacks...

You'd think they'd give shareholders (some of them long suffering) a bit of a snack.....

The company might be "different than what it was", but doesn't exactly have a stellar track record of shareholder value.

Rawz

30-05-2022, 09:32 AM

Mum said no snacks before dinner. Because she has been working all afternoon on a huge roast with all the trimmings. Just a little more patience and your belly's will be full :p

Waltzing

30-05-2022, 09:35 AM

"16 years on the road and no snacks..."

classic...staved and dead by now..

It was a case of watch the emergence of this new growth model.

Its still a case of watch the new growth model...

Maybe the SP will reward and it will be a case of no DIV but who cares we have an SP that is going up... hopefully soon.

AT least they report a good profit it has to be good value at some point if the SP keep falling..

Which is worse RAK or PEB.

SPC

30-05-2022, 09:42 AM

Mum's been cooking that roast for 16 years.
It's still cooking and the txo oven just keeps burning the bejeezus out of it.
It's not about the roast. It's the cooks..

Waltzing

30-05-2022, 09:55 AM

Surprised someone hasnt bought it out..

SPC

30-05-2022, 10:25 AM

Mum and all her relies are standing in front of the oven door so it can't be bought out 😉

Azz

30-05-2022, 10:40 AM

Lol this thread is classic.

sb9

13-06-2022, 10:12 AM

Price range now into some sort of corporate activity territory...

Rawz

13-06-2022, 10:27 AM

Price range now into some sort of corporate activity territory...

Can you expand on that please. ?

Like institutions selling or something?

Price down 7 cents or 4.9%

sb9

13-06-2022, 10:35 AM

Can you expand on that please. ?

Like institutions selling or something?

Price down 7 cents or 4.9%

My comments are more around the fact that, someone seem to be selling down even after such a strong performance by the company and with a decent outlook. With chip shortages still widely prevalent across the globe and the sectors these guys supply, surely they'll be attractive to some multinational giant and they can acquire the whole company at nice multiple if Robinsons are willing. And I'm sure they would be tempted by nice premium.

On the institution side of things, not sure if ACC are completely out or still have some stake as they were the ones offloading before.

Rawz

13-06-2022, 10:41 AM

My comments are more around the fact that, someone seem to be selling down even after such a strong performance by the company and with a decent outlook. With chip shortages still widely prevalent across the globe and the sectors these guys supply, surely they'll be attractive to some multinational giant and they can acquire the whole company at nice multiple if Robinsons are willing. And I'm sure they would be tempted by nice premium.

On the institution side of things, not sure if ACC are completely out or still have some stake as they were the ones offloading before.

Thanks for your post. Yes agree with the above. Looking forward to the investor day presentations they promised with better guidance for the years ahead. shouldnt be too far away.

RAK in a very good space right now. Wish they would push more into the defense industry. Suppose thats not allowed for a NZ company. Too many greenie people would jump up and down

sb9

13-06-2022, 10:47 AM

Thanks for your post. Yes agree with the above. Looking forward to the investor day presentations they promised with better guidance for the years ahead. shouldnt be too far away.

RAK in a very good space right now. Wish they would push more into the defense industry. Suppose thats not allowed for a NZ company. Too many greenie people would jump up and down

With current P/E multiple of around 10 or so, its nuts for chip maker in that space.

That's my point too them expanding into Defense sector, as long as they are NZX listed they've limited ability, hence the founders might be frustrated and would be tempted if there was to be mouth watering offer on the table.

Mel

13-06-2022, 09:05 PM

My comments are more around the fact that, someone seem to be selling down even after such a strong performance by the company and with a decent outlook. With chip shortages still widely prevalent across the globe and the sectors these guys supply, surely they'll be attractive to some multinational giant and they can acquire the whole company at nice multiple if Robinsons are willing. And I'm sure they would be tempted by nice premium.

On the institution side of things, not sure if ACC are completely out or still have some stake as they were the ones offloading before.
Can't explain the sig drop today, however, institutions would have more luck promoting RAK to their investor base if RAK had declared even a nominal dividend.

Mel

14-06-2022, 10:29 AM

Can't explain the sig drop today, however, institutions would have more luck promoting RAK to their investor base if RAK had declared even a nominal dividend.
What is going on with RAK, down another ~5% this morning??

Rawz

14-06-2022, 10:34 AM

What is going on with RAK, down another ~5% this morning??

Those forced to sell are selling into weak demand because everyone is expecting markets to drop further.

When to buy... when to buy... RAK on my hitlist but maybe I can get them cheaper...? Its a huge sale!!! Wish i had more cash.

I get a quarterly bonus next month. cant wait, will invest it straight away!!!

LoungeLizzard

14-06-2022, 10:49 AM

What is going on with RAK, down another ~5% this morning??

Yep, it's getting a hammering alright.

I said at the time that RAK released their results, which were very positive, that RAK missed a trick in not making some some sort of return - however nominal - to shareholders.
It would have showed Directors confidence in the future of the company and some sort of yield would have given the stock a bit of a buffer against general negative market sentiment. However they chose not to, and ever since then the SP has been on quite dramatic downward trajectory. Co-incidence? Quite possibly, as we do not know who is selling and for what reason.
I still believe that RAK is well positioned for future growth but at this time, investors are going to gravitate towards more more defensive, yield bearing stocks.

sb9

14-06-2022, 10:58 AM

What is going on with RAK, down another ~5% this morning??

One or two big boys really hitting it hard and sending some stern message to the Board.

moimoi

14-06-2022, 12:15 PM

One or two big boys really hitting it hard and sending some stern message to the Board.

Today's turnover so far is $54k...hardly "big boys"....

Practically the entire SP500 was down overnight many of whom pay dividends.

Anyone believing the announcement of a 1 cent divi was going to protect RAK from events like today are misguided.

LoungeLizzard

14-06-2022, 12:55 PM

Today's turnover so far is $54k...hardly "big boys"....

Practically the entire SP500 was down overnight many of whom pay dividends.

Anyone believing the announcement of a 1 cent divi was going to protect RAK from events like today are misguided.

Well, we'll never know will we?

Profit up 132%, forward earnings projected to be strong, NP of $23.5m and they still couldn't pay even a 3c dividend (less than 7m of profit). Something wrong there, and some with large holdings would have been grateful for the income. Not only did RAK not pay any dividends they refused to be specific about when that might occur. Not a good look.

Rawz

14-06-2022, 01:11 PM

Well, we'll never know will we?

Profit up 132%, forward earnings projected to be strong, NP of $23.5m and they still couldn't pay even a 3c dividend (less than 7m of profit). Something wrong there, and some with large holdings would have been grateful for the income. Not only did RAK not pay any dividends they refused to be specific about when that might occur. Not a good look.

Investing profits for future growth is a great look.

Who on earth owns RAK for a dividend anyway???

LoungeLizzard

14-06-2022, 02:17 PM

Investing profits for future growth is a great look.

Who on earth owns RAK for a dividend anyway???

Investing for growth has been the story of Rakon for literally decades. There were investors that lost their shirts following that mantra. Rakon boomed and then went bust. At some point in the business path, it is normal - and desirable - to start returning some profits back to shareholders by way of dividends or buybacks. If a company doesn't do that despite it boasting of record sales and profit, then I get suspicious of who they are running the business for - themselves or stakeholders.

SPC

14-06-2022, 02:23 PM

Yes and that's the truth. Couple of years ago the CEO told investors that dividends were coming soon. They didn't, and so essentially the market considers there are huge trust issues to be factored in now
No dividends and no growth after 16yrs + speaks volumes. Market commentary is non existent because there's nothing worth commenting on.
This company should not have listed.

Rawz

14-06-2022, 02:32 PM

Due to RAK track record which is being highlighted very well you shouldn't have been expecting dividends lol

RAK is not a long term set and forget company. Its cheap and got some great tailwinds is the only reason why im in it.

SPC

14-06-2022, 03:06 PM

No it isn't cheap. When I paid junk share prices of around 30c that was cheap. Recent buyers haven't done their homework imo.

Rawz

14-06-2022, 03:09 PM

No it isn't cheap. When I paid junk share prices of around 30c that was cheap. Recent buyers haven't done their homework imo.

Yes 30 cents was a great buy. Well done. Wish i bought in then

SPC

14-06-2022, 03:14 PM

Not when it traded later at 15c. I can't remember if I sank that low but averaging down becomes almost a well trodden path with this one. Buyers beware.

LoungeLizzard

14-06-2022, 03:45 PM

Yes 30 cents was a great buy. Well done. Wish i bought in then

You seem to have proved my point. Don't buy - in fact sell and take your profits - because RAK won't return profits by way of dividend and can't be trusted to hold on to your profits by way of SP growth.

SPC

14-06-2022, 04:16 PM

Yes exactly. The growth story never holds true. It's best a trade if you're a recent holder.
No dividends today are not rewarded by the growth tomorrow. It has never happened.

sb9

14-06-2022, 06:01 PM

Today's turnover so far is $54k...hardly "big boys"....

Practically the entire SP500 was down overnight many of whom pay dividends.

Anyone believing the announcement of a 1 cent divi was going to protect RAK from events like today are misguided.

371K volume by end of trading, surely can't all be retail. Decent recovery too in the end in the scheme of things.

Rawz

14-06-2022, 07:32 PM

Trading on a 8.8 p/e
Investor day coming up where new CEO is going to explain, in greater detail, where the business is heading and he will be putting some projections on paper.
Its a buy imo

I get that one needs to look in the rear view mirror now and then.. but (sorry cant help myself lol) this time is different :eek2:

Wai Wai

15-06-2022, 08:45 AM

Simply Wall St yesterday's valuation at $4.50
Rakon (NZSE:RAK) - Share price, News & Analysis - Simply Wall St (https://simplywall.st/stocks/nz/tech/nzx-rak/rakon-shares)

sb9

15-06-2022, 08:47 AM

Simply Wall St yesterday's valuation at $4.50
Rakon (NZSE:RAK) - Share price, News & Analysis - Simply Wall St (https://simplywall.st/stocks/nz/tech/nzx-rak/rakon-shares)

Sure, that's exactly the reason why at current prices it such a steal for any international giant to gobble them up in that sector.

Shareguy

15-06-2022, 08:49 AM

I do agree that not paying a dividend after dangling carrots for years was very disappointing and I have no doubt that some people have sold as a result. However the future has never looked so bright. The current multiples do not justify the share price in my opinion. Only time will tell on this one. The next couple of years will be critical as the Robinsons look for a handsome payout for retirement.

Here’s an insert from Forsyth Barr’s latest report

Rakon Limited (RAK) reported its most profitable year (in its fifty year history) over FY22, with underlying EBITDA of NZ$54.4m +132%, on revenue of NZ$172m +34%. With RAK flexing its local manufacturing base and avoiding supply chain issues, it was able to reap the benefits of global industry shortages. The result was above management’s guidance range of NZ$49m–NZ$53m and ahead of our NZ$51m underlying EBITDA estimate. Management’s comments about the strength in underlying core markets provides confidence for the future. Given current capacity constraints, RAK awaits the completion of its new Indian manufacturing facility to take advantage of strong demand. The Board refreshed RAK's ESG policies with a framework disclosed. WACC adjustments, given higher interest rates, and higher costs see our spot valuation falling 9% to NZ$2.09.

Waltzing

29-06-2022, 05:18 AM

Even with no DIV the company has TECH.

Just out over the wire is the possible failure of apple to create a chip to rival QCOM for 5 G.

Shows that once you have head start in R&D in tech it can be very hard to bridge that gap.

RAK can continue to refine product and increase REV's.

Azz

02-07-2022, 01:23 PM

This is down like everything else, but as far as I can tell on very low volume. Which is something positive, I guess.

Mel

04-07-2022, 12:57 PM

This is down like everything else, but as far as I can tell on very low volume. Which is something positive, I guess.

Not following the market trend today.....down today, while everything else is up. Still a buy IMHO.

sb9

08-07-2022, 01:02 PM

Into more respectable price range after taking a beating over past few weeks, probably on back of positive overseas sentiment last night for Chip making companies.

Will be an interesting ASM in a months time. Board will have to face the wrath of long term suffering shareholders.

SPC

08-07-2022, 01:30 PM

Rawz

08-07-2022, 01:39 PM

The Board in its various guises has a very very long history of 'sympathizing' with and then ignoring the wrath of long suffering shareholders.
You could pull out any speech from the last decade and more and find the same old nonsense repeated year after year.
The recent promise to commence dividends subject to certain metrics, followed by a subsequent backtrack when the metrics were achieved has destroyed any shread of credibility imo.

New CEO and Chairman April this year.
I get looking in the past.. but also need to give the new guys at the helm a go.

Exciting space RAK is operating in with a rock solid balance sheet. THey are in growth mode and trading on a 9.5 price earnings multiple. Even if you back out the entire extra profits from the tcxo chip shortage it is trading on a 15 P/E.

moimoi

08-07-2022, 02:24 PM

New CEO and Chairman April this year.
I get looking in the past.. but also need to give the new guys at the helm a go.

Exciting space RAK is operating in with a rock solid balance sheet. THey are in growth mode and trading on a 9.5 price earnings multiple. Even if you back out the entire extra profits from the tcxo chip shortage it is trading on a 15 P/E.

And Samsung result out overnight re-iterated Data Centre growth. The Macro environment for the products RAK is involved in still seems solid...

Azz

08-07-2022, 02:29 PM

Will be an interesting ASM in a months time. Board will have to face the wrath of long term suffering shareholders.

Might be some good entertainment? :-)

Wai Wai

09-08-2022, 10:58 AM

Rakon right in this?
https://www.nzherald.co.nz/business/the-huge-property-deal-behind-dcis-giant-albany-data-centre/QYLVMRYGFNFDBABJBS7U4GWU4A/

sb9

09-08-2022, 03:43 PM

Seem to be having a pre ASM run up which is on Thu 11th.

winner69

11-08-2022, 08:41 AM

sb9

11-08-2022, 10:04 AM

2nd best year ever for Rakon comingbup

Rakon Chief Executive Dr Sinan Altug said: “The current financial year is an inflection point for the company. Core business is growing,

Seems world is goingbthebinflection point way these days ….much better than crisis after crisis

That's nice, was never going better FY22 numbers which was mainly due to short term opportunities at that time (like fire at major chip manufacturer). Good to see business is more solid and consistent growth plan.

That "I" word seem to be quite popular with lot of CEOs of late.

sb9

11-08-2022, 12:44 PM

Very impressive preso by new CEO Sinan at the ASM. Came across intelligent, knows the industry trends and with a likable character.

For long suffering shareholders expect no divvy for foreseeable future, they've too many growth opportunities to invest profits back into which is better use of in their view and grow capital return.

Looking for organic growth opportunities in the form of acquisitions that fits with their growth plans, mainly in the US.

India factory looks stunning and near completion very soon. This could be the game changer once its fully operational and they've smartly invested in buying their own piece of land which appreciated about 20% in value since last year. That'll look good on balance sheet.

There was question about working with Peter Beck of Rocket Lab, to which their comment was there's is good lines of communication and relationship with him atm, but nothing material in terms of numbers. But they're looking forward to some sort of strategic relationship in future.

All in all good ASM, I noticed being logged online lot of senior s/holders at attendance physically, must be those that bought at high point few years ago. In fact one of them said he bought them for $5 piece, that's gotta really hurt all through these years and can understand why some of them want dividends.

Lola

12-08-2022, 12:10 PM

2nd best year ever for Rakon comingbup

Rakon Chief Executive Dr Sinan Altug said: “The current financial year is an inflection point for the company. Core business is growing,

Seems world is goingbthebinflection point way these days ….much better than crisis after crisis

Im confused. Todays Herald (12/8 Page A33) carries a comment on the RAK results as follows: " RAK shareholders warned earnings may fall by as much as a third etc etc...".

Yet on page A20 the small article on the same result under the headline:..." Rakon on a Roll". Is far more bullish.
Confusing?
Some clarification is needed urgently.
Thanks Herald.

winner69

12-08-2022, 12:49 PM

Rakon guidance ebitda $36m-$44m

Last year ebitda was $54

so 'earnings may fall as much as a third' is correct

They are on a roll because if you take out some one off $18m ebitda last year they will be doing very well in F23

Wai Wai

18-11-2022, 08:03 AM

https://www.google.com/search?q=Buffet%20buying%20Taiwan%20Semiconductor&tbm= (https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.google.com%2Fsearch%3Fq%3DB uffet%2520buying%2520Taiwan%2520Semiconductor%26tb m%3D&data=05%7C01%7C%7C937b472264f049bd45c008dac8c88e8c %7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C6380 43060956858006%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4 wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M n0%3D%7C3000%7C%7C%7C&sdata=Si06zq4f%2B6r%2F%2FKeS4GvQbbSUNhjWdGwZbiHTE1 n0P0Q%3D&reserved=0)

Rawz

18-11-2022, 08:45 AM

sb9

18-11-2022, 08:51 AM

SPC

18-11-2022, 04:26 PM

xafalcon

19-11-2022, 10:23 AM

While a single Robertson is involved in this company in any way, stay well clear is my advice. I lost $30k on never ending Robinson promises of a turn around that never came. But somehow the Robinson's always rewarded themselves very handsomely every year while shareholders got nothing

Wai Wai

19-11-2022, 11:01 AM

https://www.fool.com/investing/2022/11/18/will-taiwan-semiconductor-manufacturing-stock-fly/

Rep

19-11-2022, 11:33 AM

Sadly that's all we can really hope for, the only way many long term holders and some more recent ones will get any return. Current management team haven't rewarded shareholders whatsoever for 16 years of public listing. The sooner the Rs sell up the better. What the heck did they go public for in the first place ?

I've previously observed that Rakon's governance structure has never thrilled me. I lump it with Burger Fuel Group (previously Burger Fuel Worldwide - the one with the IPO tagged 'would you like shares with that') as companies where the governance and the hype never materialised.

There always seems to be a pot of gold on the other side of the rainbow - GPS for navigation equipment, hardened GPS crystal chips for drone weapons, mass adoption of smart phones, IoT and location tracking... these things happen but for various reasons, Rakon never quite achieves the hyped results and then shareholders never seem to get a reward for their patience and fortitude. The Robinsons got cheap capital for going public rather than debt but managed to hang onto control of their remuneration because of the governance structure.

For BFG, it was Australia (never got traction), Middle East (here for a good time not a long time) and the US (where there are more burger joints than I've had hot dinners) - which resulted in a founding shareholder buying out the last remaining outlet in Indianapolis and then defaulting on the purchase price after the store was shuttered and ending up effectively with a share forfeiture.

SPC

19-11-2022, 04:55 PM

Yes there is an implicit expectation that when you take money from the public in a share float that investors will be rewarded for the risk. Not here. They should have sought private debt for their expansion plans from an investment bank rather than the investing public. Some have done very well salary wise while shareholders got nothing but 16 years of fanciful dreams.
The only reason I still hold is because my initial capital losses have been offset by massive buy ups at junk bond prices during the GFC 12 years ago at 15 to 30c, but it's nothing to crow about. Lessons learnt with this one. Some still believe in a future paved with riches but history is against them imo.

Sideshow Bob

24-11-2022, 08:46 AM

https://www.nzx.com/announcements/402927

24/11/2022, 8:30 amHALFYR24 November 2022
UNAUDITED RESULTS FOR THE HALF YEAR TO 30 SEPTEMBER 2022
Core business growth drives strong Rakon half-year result
Highlights:

Revenue $87.2m (1H22: $85.4m)
Underlying EBITDA up 6% to $28.1m (1H22: $26.4m)
Net profit after tax $16.0m (1H22: $18.9m)
Positive earnings impact from foreign exchange gains
Sustained core market growth, particularly 5G and positioning
India expansion on track for completion early 2023
All amounts are in New Zealand Dollars

Rakon (NZX.RAK) today announced a strong result for the six months to 30 September 2022, on the back of continued growth in global demand for its industry-leading frequency control and timing solutions.

Solid core business revenue growth, combined with management of costs and margins and foreign exchange gains have driven a 6% increase in Underlying EBITDA.
“We are pleased with this first-half performance. Our customers have remained our priority and we are pleased to have achieved high levels of delivery despite challenging conditions through the period,” said Chief Executive Dr Sinan Altug.

“Last year was a significant step up in revenue as we took advantage of short-term market opportunities. With that business now tailing off, it is pleasing to see that the higher levels of revenue and margins were maintained in the first half through growth in our core business.”
Financial and market performance

Total revenue rose 2% to $87.2 million (1H22: $85.4 million). Dr Altug said that core business revenue growth has largely offset the decline in the one-off chip shortage business delivered during the period.

In our core business, Telecommunications remains the biggest driver of growth, with revenue up 14% to $47.5 million (1H22: $41.8 million) as 5G network infrastructure continues to be built around the globe. Space and defence revenue increased 19% to $12.3 million (1H22: $10.3 million), and Positioning was also up 16% to $16.4 million (1H22: $14.2 million). Dr Altug said the company had experienced a post-Covid pick up in key space programmes and the emergency locator beacon market, both segments where Rakon’s precision timing products excel.

Gross profit remained steady at $43.5 million, with a gross margin percentage of 50% (1H22: 51%). After a long period of cost stability, operating expenses were $3.7 million higher at $28.4 million. While this increase was partly due to increased investment in people and resources to support growth, cost inflation, including labour and energy prices, is also having an impact across the business.

Underlying EBITDA increased 6% to $28.1 million (1H22: $26.4 million). Over the half year, the significant reduction in the NZD/USD exchange rate had also favourably impacted Rakon’s Underlying EBITDA.

Foreign exchange gains were made on USD sales where hedging was at less than 100%. Some of these gains were realised and the rest unrealised. The unrealised gains mainly relate to the revaluation of Rakon’s USD bank balances and debtors not hedged at 30 September.

Despite higher operating earnings, net profit after tax fell 15% to $16.0 million due to a higher taxation expense after accumulated New Zealand tax losses were fully used in FY22.

Capital management

As signalled at the company’s annual meeting in August 2022, Rakon’s earnings growth has enabled the company to self-fund key strategic growth projects. During the six-month period, $6.8 million was invested in R&D including technology innovation, new product development and manufacturing capability to meet anticipated demand. This investment, comprising both capital and operating expenditure, was funded by a combination of operating cash and cash reserves.

Inventory increased over the six-month period by $14.7 million, following a decision to further build safety stocks of raw materials and finished products to mitigate supply chain risks and ensure delivery continuity for key customers. Rakon India has also built buffer stocks to ensure delivery continuity during the transfer of its manufacturing operation to the new facility, starting in 2023.

“We believe these actions have been prudent given the current macro environment and the Rakon India new facility project, but nonetheless expect inventory levels to start reducing in the coming months”, Dr Altug said.

Rakon’s balance sheet remains robust, with net assets increasing by 3% to $140 million. Net cash was $18.4 million, down $4.8 million since March as the company invested in additional inventory and in the construction of the new building in India. During the period Rakon repaid an existing $10 million debt facility, which had been established in 2021.

Consistent with Rakon’s dividend policy the board has determined not to declare an interim dividend.

Operations

Dr Altug said that while supply chain conditions had improved during the period, operating cost inflation and labour shortages remained a concern. These are being actively managed to ensure delivery for customers and protection of margins.

Construction at Rakon India’s new manufacturing facility in Bengaluru is on track for completion by the end of 2022. Once the building is complete, Rakon India’s manufacturing operations will be transferred from the existing sites to the new facility on a phased basis. This will include the commissioning of plant and equipment, product qualification by customers and commencement of production.

“We will be working extremely hard to execute the transfer of our Rakon India operation to its new facility effectively and with minimal disruption to customers or supply,” said Dr Altug. “Once complete, we believe that the new operation, with its enhanced manufacturing capacity and capability will be a vital long-term competitive advantage for Rakon.”

Growth plan

Rakon is making solid progress against its growth plan unveiled at the company’s annual meeting in August.

The company is investing in people, products and capability to drive organic growth, as well as exploring potential acquisition opportunities that may provide access to new markets or technologies. Key growth projects are focused primarily on the development of new ASIC semiconductor chips and their associated products, the new XMEMS® nanotechnology production process, and a new suite of NewSpace products for Low Earth Orbit (LEO) satellites.

“We are on track to achieve the milestones identified in our three-year roadmap,” Dr Altug said. “We have a significant new semiconductor chip due for release in the second half, and we already have five products being manufactured using our new XMEMS® nanotechnology production process. We are establishing our presence in the NewSpace ecosystem and are excited to be aboard a planned In-orbit demonstration mission in early 2023.”

Outlook

Rakon’s board has updated guidance for Underlying EBITDA to be in the range of $38 million to $44 million for the financial year to 31 March 2023.
“Although we expect the first-half challenges and uncertainties, including exchange rate movements, to continue throughout the year, we remain well positioned to deliver a solid result for FY23,” said Dr Altug.

“Our forward orders are strong. However, we are closely monitoring our markets and may see some dampening of customer demand due to macroeconomic volatility and inventory correction. We are also working hard to manage the ongoing impacts of supply chain disruptions, labour shortages and cost inflation; as well as the business continuity risks around the critical transfer of our Indian manufacturing operation to its new facility.”

“Nonetheless, we remain confident about Rakon’s future growth. The quality of our core markets combined with our operating agility, technology innovation and strong customer relationships provide a high level of resilience and provide a solid platform for long-term success.”

-Ends-

Rawz

24-11-2022, 09:05 AM

This is a good update imo.
Solid double digit growth in the core business segments.

Balance sheet very strong now.

The new management team are doing a fine job. Happy to see what they can do over the coming years.

Wai Wai

24-11-2022, 01:03 PM

Don't expect much share price growth until the ACC bear finally sells out (has 4.9mil to go)

sb9

25-11-2022, 09:39 AM

Don't expect much share price growth until the ACC bear finally sells out (has 4.9mil to go)

And that gives us an opportunity for lower top up and be rewarded handsomely long term. Solid result overall and like new CEO's strategy and direction for the company.

SPC

25-11-2022, 11:09 AM

How long is your term?
16 years so far and counting for me.
You'll need the patience of a Saint if past performance is any indicator.

Sideshow Bob

25-11-2022, 11:46 AM

How long is your term?
16 years so far and counting for me.
You'll need the patience of a Saint if past performance is any indicator.

14341

Yep, pretty ugly and think there has been no divvy feeds along the way......;)

SPC

25-11-2022, 01:59 PM

sb9

05-12-2022, 01:19 PM

Don't expect much share price growth until the ACC bear finally sells out (has 4.9mil to go)

Do you know how much is their latest holding, couldn't see any SSH notice from them recently.

Walter

05-12-2022, 05:26 PM

That's right the only lucky souls being fed here are the Board of Directors, company execs and the employees. Not a single crumb yet for the non employee shareholders who own this company.
Make sure you've eaten a very large animal before investing here and hope like hell you have a slow digestive system.
Just saying...
I'm really happy with my Rakon investment. Everybody had the chance to buy at sub 20 cents three years ago. If you dollar cost averaged instead of whinging about how you overpaid years ago, you could be in profit by now.

moimoi

06-12-2022, 09:17 PM

Steady on Walter.... ;-)

You don't expect shareholders to accept personal responsibility for their investing decisions do you.. And surely you wouldn't expect shareholders underwater from a decade ago and having sat and watched their "investment" decline in value, to then decide to take action and do something about it. ie: Sell and invest in whatever it is they think will increase in value

Nah nah nah...

Sadly, its easier to come on Sharetrader instead and bleat about how ****e Management is..

SPC

07-12-2022, 04:30 PM

Clearly neither of you read my post of 19/11/22. I'm well in black on RAK by virtue of the very slump at around 15c years ago I mentioned. No losses here.
Does good management and a confident market lead to such a bargain price - approx 10% of IPO price?. Afraid not. Nothings happened for 16 years and I doubt it ever will. I'll ditch, when I'm ready, and let others brimming with confidence wait for the bright future ahead. I speak from past experience, others may speak with hope for the future.
I haven't bought in years and for very good reasons. This is not another FPH. I'd say it's another FPA (now delisted and long gone) but I don't hear Haier (ie. a White Knight) or anyone else knocking at the door.
Yes I've seen this movie before...

winner69

08-12-2022, 08:01 AM

Shareholders vent their displeasure at ASM about no dividends

Extract from article -

Mike Daniel holds a 6% stake in Rakon and has written to Witten outlining his concerns about the policy.

He told BusinessDesk it was an “outstanding” company – "it truly is well ahead of everyone else in the market" – but despite it being in a great position financially, it has never paid a dividend.

Rakon had about $14m in excess working capital and inventories, which the company had signalled would be liquidated into cash, a net-cash position of $18m and its net profit from the second half of last year.

That combined, the company could have a net-cash position of close to $40m.

Daniel said, as a shareholder, he felt it was “outrageous” the board was not sharing some of that or at least suggesting that they will if they reach a certain threshold.

"By definition, equity investors are risk takers, however, these days it seems that for whatever reason, some professional directors' risk appetites are much lower than the shareholders they represent," he said.

“The risk here [to the board] is minimal. Absolutely minimal.”

Daniel is not alone in his frustration. Many other shareholders took to the share market forum Sharetrader to express their opinions.

“They won’t attract institutional investors – or indeed any investor – if they continue in this vein,” one said.

Another suggested shareholders should have been offered a small dividend with a reinvestment option.

https://businessdesk.co.nz/article/finance/rakon-shareholders-want-a-dividend-please

SPC

10-12-2022, 02:18 PM

Salient words from Michael Daniel, who has run one of NZs great medical tech companies, and been decorated for it.
I'm one of many who have opined that despite listing in 2006 this outfit is still run very much like a family business. It isn't and hasn't been for 16 years.
And it's time they stopped hoarding profits for internal uses and pay the 'other owners' of this company - those that don't happen to walk through the company doors each day.
Mr Daniel has certainly given serious credibility to this issue now.
If RAK want the market to recognise them as a great business it's time those in charge recognised what the expectations of a profitable listed business are ie. you share the profits of the business.

Rawz

10-12-2022, 02:44 PM

That’s only weird ole NZ expectations. Most other markets want to see companies reinvest for growth.

If RAK start consistently growing EPS the market will rate it more so than a dividend

winner69

10-12-2022, 02:52 PM

That’s only weird ole NZ expectations. Most other markets want to see companies reinvest for growth.

If RAK start consistently growing EPS the market will rate it more so than a dividend

Next punters will be crying out for a share buy back ...seems to be the current big thing to do

I keep hearing earnings drive share price .... so I suppose current share price of about a $1 is fair enough

winner69

10-12-2022, 03:00 PM

Suppose earnings not that important if 'investing for growth'

F22 Underlying EBITDA was $54.4m - they say about $40m in F23

Jeez that's some decline in profit ... and being priced accordingly?

But

Walter

10-12-2022, 03:06 PM

The decline was well flagged and last year's abnormal profits were indicated as such. I'm more interested in the underlying trends and changes in management that have occurred over the last few years.

SPC

10-12-2022, 03:07 PM

For those who speak of whinging long term holders wanting a return, well I think you've now heard this complaint validated by one of NZs finest businessmen.
I wouldn't mind speculating he was an early investor as well. If he has a complaint then I'd be confident there is a real problem here.
He'd be a very useful addition to the BOD, someone who's been at the very top of this game for a very long time.

Rawz

10-12-2022, 04:12 PM

I’m a recent investor in RAK. Came in with the new management.

I haven’t checked too far back in the past but did RAK even have the ability to pay dividends in the past?? I’m aware at least that they turned in a number of years of poor performance.

It’s only recently that the balance sheet has come right and profits flowed. Got to give the new management the chance to grow this thing and see what has always been a lot of potential. A $200m market cap company operating in the chip space needs to retain all capital. Maybe once a billion dollar company it should consider paying a few pennys out to us annoying shareholders

SPC

10-12-2022, 04:51 PM

I repeat my opinion that RAK seems very much like FPA in its later years after listing (prior to being bought out by Haier and delisted, now long gone) yes great technology, world leading in fact, but set back by foreign exchange rate impacts on earnings in the first decade after 2000 causing profits to be eroded, there were overseas manufacturing expansions that didn't pan out too well, (possibly) a long standing CEO who grew up with the business having spent much of his working life there (many companies refresh this role to acquire outside knowledge, skills and new thinking) and products that were rapidly matched by competitors and commodified thus returning reduced profits, to name the bulk of them as I remember.
A White Knight for holders - certainly me (Haier) finally knocked on the door once the share price had been beaten to hell and a new CEO took over. I left the room with my shirt still on. I see this as RAKs fate. I personally think this all goes back to the original BOD choices.
I'm sure I have seen this movie before, It's just a matter of time imo.

zigzag

11-12-2022, 08:04 PM

I think that you may have you're Mikes Muddled up???

SPC

11-12-2022, 09:27 PM

Comparing RAK to FPA (the old NZX listed entity of many years ago prior to its acquisition by Haier and subsequent delisting from NZX - not the present day entity) as appearing to follow similar trajectories, no Mikes involved in these two.

moimoi

12-12-2022, 04:22 PM

For the 70% of shareholders who hold less than 10,000 shares a 2 cent dividend will provide sweet FA. eg: $4 a week.

MFB pays a dividend and doing so hasn't stemmed their losses in capital value.

The concept that a divi "will prove" something to the market and lead to a value uplift for RAK seems fanciful...

Lego_Man

13-12-2022, 02:47 PM

Zero interest in a dividend. Would rather they maximised EPS growth.

TJ1

05-01-2023, 10:40 AM

You would think div or not profits are now strong enough to see a consolidation of SP price not this steady drop.

Raro

03-02-2023, 01:46 PM

https://www.nzherald.co.nz/business/rakon-eyes-us-aerospace-play-feels-co2-squeeze/AK5CZJLH35DJVP6PD354GM3ZNE/

Rawz

03-02-2023, 02:08 PM

https://www.nzherald.co.nz/business/rakon-eyes-us-aerospace-play-feels-co2-squeeze/AK5CZJLH35DJVP6PD354GM3ZNE/

Thanks for sharing. I like at the end of the video.. the interviewer asks Sinan Altug (CEO) what the next 5 years for Rakon holds.. Sinan explains in some detail and then says if you want me to summarise its "GROWTH" :t_up:

winner69

06-03-2023, 06:20 PM

From 90 cents to $2.20 and back to 90 cents (next support around 30 cents)

That’s some ride in just over a year

And the man on that video says GROWTH …..hopefully 5 years time share price isn’t still 90 cents

SPC

06-03-2023, 08:43 PM

The market appears to show no confidence in this business. IPOed at around $1.60 in 2006 and initially shot up to around $5 before heading steadily down. Investors then had to stump up for more ( to avoid dilution at that time) via a rights issue at $1.15 per new share a year or so after IPO because they ran out of cash. It's returned no dividends an no capital growth in its entire listed history of 17 years.
There is absolutely no reason to believe this company will ever reward it's investor owners. History is everything with this one. Your best hope is that it gets taken over and you might get your money back. Or not.

nztx

06-03-2023, 09:46 PM

winner69

07-03-2023, 08:54 AM

Better do something about the collapsing share price said the Chair só an announcement comes out

Tightens up F23 guidance but jeez year nearly over so the guess should be better

But the cynic in me says this announcement is the first profit downgrade (against expectations) for FY24

The Dr says GROWTH …who am I to doubt him.

Rawz

07-03-2023, 09:50 AM

Yeah if he says growth he needs to grow the bloody thing. None of this FY24 revenue could be down crap..

Still holding.. see what happens to that big inventory build up they had at half year and if its cleared what do operating cashflows look like.. problem is this is so very cheap. Winner will say thats for a good reason..

Rawz

07-03-2023, 09:53 AM

just had this terrible thought i could be in a few years time one of the moaners complaining that RAK doesn't do anything, no dividends, no capital growth etc etc lol. because ive held for a long time and seen nothing for it haha

oh dear hope not. Come on Doc you got this

sb9

07-03-2023, 09:54 AM

I would be very surprised of they're still listed on NZX in few years time. Robinsons must be thinking they had enough and any juicy offer (more like $2+) from an overseas outfit they'll lap it up in no time.

winner69

14-03-2023, 11:44 AM

Good article in NBR written after they had a tour of the factory

Extract:
Rakon intends to use a potential recessionary economic environment to out-manoeuvre its competitors as it continues to invest heavily in growth, while optimising its existing operations and grappling with an ongoing "inventory correction" among its customers.

It’s an approach inspired in part by the late, legendary Formula One driver Ayrton Senna, according to the NZX-listed company's chief executive Dr Sinan Altug, who hosted NBR on a recent visit to the Auckland manufacturing facility, where Rakon makes the frequency control devices it sells globally.

“One thing [Senna] said that I think fits our situation quite well,” Altug offered, “Is he said: ‘you cannot overtake 15 cars when there’s sunshine, but you can when it’s raining’.”

Altug said the company is approaching a potential economic downside “quite conservatively” but also looking at “quite a growth plan... This situation and the volatility in the market will allow us to get to a point that will put us ahead of our competitors”.

https://www.nbr.co.nz/investment/rakon-ceo-says-economic-downturn-is-perfect-time-to-pounce/
Prob paywalled

moimoi

14-03-2023, 08:12 PM

Liquidity seems to have disappeared from this stock recently.. There simply seems to be no buyers.

Looking at the depth tonight it's unlikely that an instituitional seller would leave a sell order for the entire average daily volume of recent times at the ask price overnight.

Disgruntled retail holder possibly.

Down 20% in 10 days after re-affirming previous guidance. Go figure...

There was a recent interview with the CEO of one of the major chip companies a couple of weeks ago where they intimated that the internet behemoths, Amazon, Meta, etc, are currently building internal AI networks that are forecasted to be triple the size of their existing massive cloud data centres...

All of this requires timing (data) synchronisation. Go Rakon.

Never before such a macro tailwind behind what they produce and yet RAK shrivels away with its price falling 2% a day on $30k volume.

:-(

Wai Wai

17-03-2023, 12:18 PM

The silly selling looked like a margin call to me

Wai Wai

21-04-2023, 03:27 PM

Cutting edge products from Kiwi high-tech manufacturer Rakon are onboard the European Space Agency’s (ESA) Jupiter Icy Moons Explorer mission, or JUICE, which will make detailed observations of Jupiter and three of its biggest moons – looking for signs of life.

The mission launched from the ESA’s spaceport in French Guiana last Friday and has now begun its 8-year journey to Jupiter.

Three Rakon products will play a critical role on the mission, by providing precise references for several of the scientific payloads that will be studying Jupiter’s moons, Ganymede, Callisto, and Europa, which are thought to have subsurface oceans that could potentially host life.

The highly stable, low phase-noise reference solutions were developed and manufactured at Rakon’s facility in Troyes, France, with each being comprehensively tested to ensure it could endure Jupiter’s harsh environment.

Rakon worked closely with several partners to provide the timing solution for their payloads (3GM, RIME and SWI) onboard the JUICE mission.

Rakon CEO Sinan Altug says the company’s involvement in the JUICE mission continues a multi-decade history of Rakon products playing a role in ground breaking international space programmes.

“It’s exciting to be involved in the group of companies and scientific institutions that made the JUICE mission a reality and we’re honoured to contribute to this mission and other space programmes like it that are helping to answer some of humankind’s biggest questions,” says Altug.

"As a global leader with Kiwi roots, Rakon embodies the adventurous spirit and pioneering heritage of New Zealand, and we are proud to play our part in pushing the boundaries of science and technology to pave the way for new discoveries in the vast expanse of space.

“Our products are currently on Mars helping to explore for signs of life as part of NASA’s Perseverance Rover and now, as part of the JUICE mission, they’ll be heading even further out into our galaxy to do the same around Jupiter and its moons.”

Rakon’s space products have been a part of more than 50 international space programmes over the last 40 years, including the Sentinel, Galileo, Globalstar, Mars Perseverance, and Rosetta missions. On top of its components portfolio for space, the company has branched out into NewSpace Equipment that increasingly features in large Telecom and Low Earth Orbit (LEO) Positioning, Navigation and Timing (PNT) satellite constellations.

The three Rakon products onboard the JUICE mission were designed to help scientists study a range of features, including the atmosphere and ionosphere of Jupiter and its moons, and what is believed to be vast internal oceans underneath the moons’ icy crusts – potentially holding up to six times the volume of water in Earth’s oceans.

JUICE’s planned mission duration is 12 years, with the scientific instrumentation not coming into play until Jupiter’s orbit is reached in July 2031. Then four years of scientific exploration involving various flybys of Jupiter’s moons will take place until the end of its mission in 2035.

Towards the end of its mission, in 2034, JUICE will be the first human spacecraft to enter orbit around another planet’s moon, when starts its orbit around Ganymede – Jupiter’s biggest moon.

www.rakon.com (https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.rakon.com%2Fe3t%2FCtc%2FRI% 2B113%2FcZPg804%2FVVZLyP3wh6NpW2S42hc91qWr4VmLt1V4 ZD4wZN11fKVZ3lLzNV1-WJV7CgZDVW1yFdH91P4g49W3CMmvP5g5DhMW1J8ZTl69R4P7W7 vsKTk5jfqDLW8HGGKx1YMNPQW60WxCf5M4XrMW4_Wxns3nppdS W4vcRYR9bHjWbW7hrmNf77wVZRW8PwcH03tjvb4W443Z9M3MmS 23N4BHPHC8vD1NW1rJPJb6tQjnrW1m8Jc25SxHnbW6Kw9qV8xq ZdVW3j7bHg25ThN2W5G29xd7k3sYwN46Jh-Zb7Vwq3hqd1&data=05%7C01%7C%7C245f788e6ab74464e13b08db42151f9e %7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C6381 76430723727859%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4 wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M n0%3D%7C3000%7C%7C%7C&sdata=vnATxP1axnINNa3zwRPsXKz5Mvd5dYeFDfyQmnZw2Zk% 3D&reserved=0)

SPC

21-04-2023, 09:04 PM

Yes great stuff and likely to interest Readers of Scientific American et-al, but what really matters to readers of this thread is growing profits, sharing them with holders and giving confidence to the market that Rakon is going places, a growth opportunity and worth buying.
I don't think we're going to sit around for the next 8+ years waiting to hear the results of the Jupiter mission to raise awareness so we'll need something bigger and sooner.

Mel

22-04-2023, 10:59 AM

nztx

22-04-2023, 02:05 PM

Dividend next month yet .. or too soon ? :)

Is Musk on the Customer list or is that on the way ? ;)

sb9

22-04-2023, 03:11 PM

You expressed my sentiment exactly - what does this equate to in revenue (not material at all)!

It’ll all come to fruition in the end when someone like Musk or some other global outfit gobbles them up. It’ll be just pocket change for them.

SPC

22-04-2023, 09:17 PM

I guess the pace at which Musk is gobbling up Rockets he may need to buy a few bits often, but not the whole company.
IMO Rakon will likely be taken private by its executive team if the share price stays low and the offer won't be much to holders.

Rep

23-04-2023, 02:29 PM

Extract:
[I] “One thing [Senna] said that I think fits our situation quite well,” Altug offered, “Is he said: ‘you cannot overtake 15 cars when there’s sunshine, but you can when it’s raining’.

Ayrton Senna had talent from the moment he jumped in karts, all the way through the lesser Formulas before testing impressively for a number of F1 teams. He also showed a ruthless efficiency with his competitors and delivered results.

To compare rakon (“i coulda been contender”) to the late F1 Champion is a big stretch…

winner69

23-04-2023, 03:00 PM

Hope that this talk of Musk who seems to have rockets that end up in flames and Senna sadly being killed in a fiery crash isn’t an indication of Rakon’s future

SPC

23-04-2023, 04:11 PM

It seems to have been raining at Rakon ever since the day it listed in 2006.
I'd settle for for even 1 or 2 overtakes, let alone 15. There's just never enough gas in the tank to produce dividends ;).
Or maybe too many overpaid execs sitting in the back seat consuming precious fuel?

winner69

24-04-2023, 01:26 PM

Shareholder Mike Daniel still stirring pot over Rakon share price and no dividend. Points out Rakons lazy balance sheet which has plenty of ability to give back to shareholders.

Think he’s a bit pissed that Board not doing enough to help share price along and told Chair that.

From BusinessDesk -

Daniel, in response, said he was disappointed with the board’s preference to couch positive results in “non-promotional” negative and generic comments that weren’t in the interests of shareholders and directed Witten to Scott Technology’s recent first-half result of a 60% lift in profit.

Whiten seems to forgotten the old rule Share Price = Fundamental Value +/- Hype ……..and doing her best to make Hype as negative as possible.

S

Rawz

24-04-2023, 03:19 PM

When RAK sell down the inventory build up at half year i suspect we will be in for a big juicy dividend at FY.
Because then there really would be no excuse with cash gushing from operations.

SPC

24-04-2023, 03:56 PM

Have you just woken up from having a dream?

Rawz

24-04-2023, 04:04 PM

It’s been more like a nightmare lol

Wai Wai

26-04-2023, 11:11 AM

BlackBull starts coverage on undervalued Rakon

Paul McBeth (https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Femail.mail.businessdesk.co.nz%2 Fc%2FeJxkzU1uhiAQANDTwK5kHBBxwaIb7zHDT6QfihFsk56-SdNd9y950U9oTVpl8pN1aAzO0yJ3T9GYeeE0A1PMHBMtkVdeIS 8ZzEyyeATU8OvBaasmDZzZWccYsgYtDBxUquKnlzP1HlN_qdDU-S2r38e4utDvAjeB238icPtoz31SLX0I3C566tsROI1d3j7sd-mqf1Hnu7WXMJBq-qRR2hnoKoPqXzS8QYf2JwAA__-VL0kQ&data=05%7C01%7C%7Cca36d52ad5f74052318108db45b14c2d %7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C6381 80400018211482%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4 wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M n0%3D%7C3000%7C%7C%7C&sdata=4oBCuxZvBylVZOXVc68e1Ds%2BMy4gk6JzkYy20C5w51 o%3D&reserved=0)| Wed, 26 Apr 2023

https://media.businessdesk.co.nz/file/c_fill,w_644,h_362,q_80/Depositphotos_5g_telco-6.jpg
Rakon has positioned itself well to latch on to 5G and space industry opportunities. (Image: Depositphotos)

Boutique research house BlackBull Research has thrown its weight behind a call for Rakon to start paying a dividend to revive investor interest and lift what it sees as an undervalued share price.
The research house, formerly ATM Strategy before online trading platform BlackBull Markets bought it last year, has started coverage of the technology components maker, which it rates as materially undervalued compared with both its tech peers and the wider New Zealand market.
Equities analyst Eden Bradfield said he’s watched Rakon for a long time and seen it fall in and out of favour with investors.
A key way to win back shareholders is to offer a dividend, which Bradfield said is a major attraction for NZ investors.
That echoes recent agitation from long-term Rakon shareholder Mike Daniel (https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Femail.mail.businessdesk.co.nz%2 Fc%2FeJxkzjFu7CAQgOHT4M4WDCxmC4rX-B4DHi_ILFgMfpFy-khJurS_vuLfvQJr6DmRV9aBMfBQ65S8DOtD2gAPtWt4ShPMsSp nNRpUFqSbsgcJWn576bRdlJbhCM66APHQUgsj35jLEm7OlZh34 nOJbamfU_FpjIuF_idgE7D9JQI27CPHQgK2N_aTBgvYCtbXnTn l-po7nq3OnLDTfPUcaT5uKvxTUis79XnPHFsdVMfUfUw988IfyKG 3dgojqdB_HLnViFceWH73hjfgwH4FAAD__2nQW6I&data=05%7C01%7C%7Cca36d52ad5f74052318108db45b14c2d %7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C6381 80400018211482%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4 wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M n0%3D%7C3000%7C%7C%7C&sdata=4YrzIQVew3ECf7uFFnZIf8lAt03ggM5CfnFkSD7wrqA% 3D&reserved=0), who urged the board and management to run a leaner balance sheet – the firm had cash and equivalents of $25.7 million of net paid earnings – and pay a dividend.
BlackBull’s Bradfield is even more bullish on Rakon’s ability to spit out cash, pointing to its “pretty good” underlying earnings and balance sheet.
He recommends Rakon adopt a dividend policy of paying up to 25% as a means to win over investors to trigger a re-rating of the share price, which is down 9.8% so far this year at 93 cents whereas the benchmark S&P/NZX 50 Index is up almost 4% and the tech-heavy US Nasdaq has gained 15%.
"Rakon is worth at least $1.40 per share based on peer multiples, and instituting a dividend would be a significant catalyst for the stock's growth,” Bradfield said.
Instituting a dividend or buying back stock would help bridge the value gap, which has Rakon trading at a price-to-earnings multiple of about seven times historic earnings despite a “pretty impressive” performance in recent years and the opportunities provided by its customers in telecommunications and the space industry, he said.
The comeback kid
Rakon has bounced back from the lows of the 2010s when it was reeling from an ill-timed foray into China, as part of its attempt to dominate smartphone GPS technology, and the share price dropped as low as 15 cents.
The shares were sold at $1.60 apiece in an over-subscribed initial public offering in 2006, hitting $5.80 the following year before their sharp slump through the global financial crisis and a decade of meandering around the 20- and 30-cent level through much of the 2010s
Investors dumped chief marketing officer Darren Robinson from the board in 2016, while founder Warren Robinson retired a year later, later dying in 2019.
One of the ways Rakon’s board brought investors back around was by promising them the prospect of a dividend at the 2013 annual meeting, having previously focused on reinvesting profits to grow the company.
The company has since changed tack and decided to invest more heavily in research and development, and scout out potential acquisitions rather than return funds to shareholders, which has been met by some discontent among the shareholder base who’ve seen the company notch up record earnings and get the balance sheet back in shape (https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Femail.mail.businessdesk.co.nz%2 Fc%2FeJxkzjtu7SAQANDV4A4LDzzABcVrvA8-g4yMPVcwN5Gy-khRuvSnOCVsYA3uC4bNejAG_m1uOYPzuO0-F-crqlR2Z7TOdY-odbLO7UsLoECrH6-8tuumVarJW58gV620MOqOra_pPduDcxac15ppfb6WHk7m1xT6v 4BDwPGXCDji4JY7CjjuOC7kKeDgdqOsNOSIFz2SSWa6UdKbJVX JJ8pMvSwj5HO0uc7PONMguoRR2PEjcqMnx1fj2H8rHAx4sN8BA AD__yo0VAM&data=05%7C01%7C%7Cca36d52ad5f74052318108db45b14c2d %7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C6381 80400018211482%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4 wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M n0%3D%7C3000%7C%7C%7C&sdata=ufFsBX%2FwvFd84YWwbbKJH3K7GxY3sc1acMsNTZiV%2 Fz0%3D&reserved=0).
BlackBull’s Bradfield said paying a dividend is the best way to demonstrate Rakon’s financial strength and help unlock its true value.

Rawz

02-05-2023, 12:41 PM

RAK up 30% in the last month :t_up:

About to go above the 200ma

thats good

SPC will be happy

SPC

02-05-2023, 01:41 PM

I've seen this movie before Rawz 😉

Rawz

22-05-2023, 03:14 PM

Results out on Wednesday. I know there is a lot of love for RAK on sharetrade so please control your joy once everything is released lol

SPC

22-05-2023, 05:20 PM

Just pull out any one of the last sixteen annual announcements, dust it off and change the date....

Rawz

24-05-2023, 09:37 AM

...:scared::scared::scared:...

Commences dividend payments declaring fully imputed FY23 dividend of 1.5 cents per share and to introduce a Dividend Reinvestment Plan

Mel

24-05-2023, 09:39 AM

Full Year results:
https://www.nzx.com/announcements/411943
I'm glad to see they've announced a maiden dividend, will be positive for the share price.

Rawz

24-05-2023, 09:53 AM

Happy to hold and see where it goes. Outlook average but need to back out the chip shortage boost and maybe okay. will have another look tonight.

Sideshow Bob

24-05-2023, 10:14 AM

Full Year results:
https://www.nzx.com/announcements/411943
I'm glad to see they've announced a maiden dividend, will be positive for the share price.

Di...
Div....
Divi.....

What's a Rakon dividend??

That must be 17 years since listing to pay its maiden divvy??

Good things take time as they say....

moimoi

24-05-2023, 07:39 PM

Quite remarkable lack of input from those that have been harping for a dividend for years..

Now there is one...silence.

Fantastic effort to complete the Bengaluru manufacturing facility on time and on budget.

SPC

24-05-2023, 08:04 PM

Walter

25-05-2023, 04:51 PM

Glad that they have a div reinvestment scheme.

Mel

26-05-2023, 07:11 AM

Ok me here. I liquidated recently (and walked away in the black) reinvested the proceeds into other holdings with proven track records. I haven't looked actually as I don't look back.
But I noticed that forward look is the typical ' we're in for a tougher year next year story with reduced expectations.' so imo to prevent the SP from probably tanking completely the BoD decided to throw a few crumbs on the table to arrest the slide.
Any thoughts?
Yes, you could say it is more of the same, however,
I think the new manufacturing facility could open up some new opportunities in that region.
Whilst the dividend is immaterial, it illustrates that they can fund it and there is a passing consideration to shareholders (which has been sadly lacking in the past).
The dividend will also be positive for a (new) set of investors, who have increased confidence with a co that pays a dividend.
I am a current shareholder - and may come to regret not selling when the SP was in the $2 range around Jan-22 - which would have yielded me a tidy profit. I'll prob sell at the next 'peak', as I'm over the rollercoaster ride!

Rawz

19-06-2023, 09:38 PM

https://www.nzx.com/announcements/413283

19 June 2023
On Wednesday 14 June 2023, global high-tech manufacturer Rakon (RAK) inaugurated its state of the art research and manufacturing Centre of Excellence, located in the SEZ Aerospace Park, Bengaluru (Bangalore).
Rakon is a world leader in the design and manufacture of advanced frequency control and timing products, which enable connectivity for thousands of electronic systems worldwide – from 5G networks and satellites, to autonomous vehicles and emergency beacons.
Rakon has been operating in India for over 15 years, and the new facility represents an important milestone for the company. It is one of the world's largest and most sophisticated research and manufacturing sites for advanced frequency control and timing solutions, with a total built-up area of 100,000 square feet across three levels (the building design also allows for two additional levels to be added in future).
Shri M Sankaran, Director, URSC (U R Rao Satellite Centre, India’s lead Centre for ISRO’s satellite design and development) and Graham Rouse (NZ Trade Commissioner & Consul General - India & South Asia) were present to inaugurate the new facility, which replaces Rakon’s former leased sites in Bengaluru, and both futureproofs its India operations and signals Rakon’s long-term commitment to growing its India operations.
Rakon’s long-term growth strategy includes increasing production in India to service global customers and meet product demand arising from its position as a strategic supplier, under the Indian Government’s ‘Make in India’ initiative, to key agencies and leading companies across India’s telecom, aerospace and defence industries. The long-term strategy also includes transferring some of Rakon’s product lines that are currently manufactured at sites in New Zealand and France to the new facility. As this transfer occurs the company expects to see a positive effect on margins due to lower manufacturing overheads. In line with this, Rakon has enabled future expansion for its proprietary XMEMS® resonators and nanotechnology manufacturing process within the new facility. The added capacity of the facility and production diversification will lower Rakon’s global production risk and provide additional supply chain certainty for customers.
In future, Rakon anticipates that the annual revenue from its India operations may rise from 25-35% of all revenues currently, to around 50%.
To date, Rakon has invested NZ$15m in the land, building and equipment for the Centre of Excellence and the company intends to invest a further NZ$55 million over the next 5 years. Rakon currently employs around 500 people in India and expects to employ a further 300 people over the next 5 years.
The new facility was designed in accordance with sustainable building practices regarding the use of water and energy and is expected to attain a Leadership in Energy and Environmental Design (LEED) certification.
-ends-

Sideshow Bob

17-07-2023, 08:35 AM

https://www.nzx.com/announcements/414749

Rakon Limited (NZX: RAK), a high technology manufacturer of frequency control and timing solutions for the telecommunications, space and defence, and positioning sectors, has provided an update for the three months ended 30 June 2024 (Q1 FY24) and FY24 outlook. Key points are:
• Q1 FY24 performance slightly above expectations across all three core markets
• Temporary slowdown in telecoms sector represents risk to FY24 EBITDA1 guidance (up to $10 million)
• Space and defence demand outlook remains strong with healthy order book to FY25
• Initiatives underway to improve efficiency and recalibrate resources and cost structures globally
• Strategic direction on track with good progress on FY24 milestones

winner69

17-07-2023, 08:45 AM

Reads like a profit downgrade …..$10m of about $30m FY24 ebitda guidance at risk

That’s pretty significant if I’ve read it right

No worries otherwise all going well but we just have to wait a bit longer for the really good times to arrive.

No mention of having any stuff on the Indian moon landing thing ….surely they would have been involved

Rawz

17-07-2023, 09:27 AM

winner69

17-07-2023, 09:33 AM

I agree they are saying 1/3 of ebitda guidance could disappear in a puff of smoke.. crazy

But things are tracking ‘slightly above expectations’

Suppose writing market announcements is an art form

Rawz

17-07-2023, 11:50 AM

I listened into the call. Not much to add from the announcement tbh.

Best part was this:

John (long suffering shareholder): When is Rakon going to pay dividends?
CEO: Pause. John, we are paying dividends
John: Ive been waiting 12 years for them!!

Lol..

SPC

17-07-2023, 12:44 PM

I got out in May after 17 years. The story had lost all credibility whatsoever for me, even tho a Divy had been announced, they probably wish they'd kept the money in house, but they were damned either way. I hadn't looked back until today and I'm very happy that I moved on.
I've said many times before and I repeat that this family business should never have listed. Gosh even Frank Spenser had better luck than these guys.

winner69

17-07-2023, 03:34 PM

No worries

Rakon’s telco slowdown ‘temporary’, analyst says

NBR story quoting guy from Forbarbie …….long term outlook still very promising

SPC

17-07-2023, 03:36 PM

How long have you got?

Valuegrowth

17-07-2023, 03:37 PM

Thank you for the update.
No worries

Rakon’s telco slowdown ‘temporary’, analyst says

NBR story quoting guy from Forbarbie …….long term outlook still very promising

winner69

17-07-2023, 03:59 PM

And fron BusinessDesk

Rakon says telco dip temporary, but shareholders want belt tightened
Ben Moore | Mon, 17 Jul 2023

CEO Sinan Altug assured investors that the company was “making efforts to aggressively streamline”.

The contraction in the telecommunications infrastructure market that poses a $10 million risk to Rakon’s underlying earnings is temporary, the company’s chief executive said, but shareholders still want the company to tighten its belt.

Sinan Altug, CEO of the tech component manufacturer, said on an investor call that since the company released its guidance for the financial year ending March 2024, its telco customers are slowing down purchasing.

He said that those customers, including Ericsson and Nokia, are seeing the mobile network operators that they sell to slow down their capital expenditure.

“This shifts the timeline of their inventory burn, implying a more gradual normalisation of inventory levels. We now project this expanding into the second half of FY24.”

While the company’s share price dipped from 89 cents to 86c on Monday morning, it levelled out to 88c in the afternoon, a 1.12% drop.

No new guidance

Altug made it clear there is no new guidance for the full-year earnings before interest, taxes, depreciation, and amortisation (Ebitda) and that company was currently informing the market of an up-to-$10m risk.

This was because the “situation remains dynamic”, and the full impact and time frame remains to be seen.

“Ericsson forecasts a gradual recovery by late 2023 and significant improvements by 2024, and Nokia anticipate recovery in early 2024,” he said.

“This trend is currently mirrored across all of our tier-one telecom infrastructure customers. Exact revenue impacts from this remains uncertain, but we nevertheless wanted to provide an unfiltered risk estimate to our FY24 guidance, up to $10m at this point.”

Expected to be temporary

Joshua Dale, an equity research analyst at Craigs Investment Partners, asked Altug whether there was any precedent for a contraction such as this in the telco sector.

Altug responded that the speed at which this shift has happened and spread throughout the customer base made this “uncharted territory,” but it was not entirely unprecedented.

“There have been two times where there has been pull back, one was all the way back at the GFC (2008 global financial crisis), and the other one was even earlier, that goes back over 20 years to the [2001] global telecom crisis,” Altug explained.

“The second one was really short-lived. After a short term of rejection, the mobile operators came back with a vengeance because none of them wanted to actually stay behind, so they invested as originally planned, and we saw the ramp-up happen in the way that was planned for 4G.”

Earlier in the call, Altug noted that the drivers behind the rollout of 5G globally were still strong.

“The projections of subscribers tripling over the coming five years, these trends are not going to slow down, and they do necessitate ongoing substantial investment by the operators to continue to upgrade existing and building new infrastructure to strengthen network capacity.”

Belt-tightening

Despite these assurances, shareholders spoke up to ask how Rakon was planning to reduce operating costs.

Investor Kevin Arscott highlighted that while the company’s margin and sales were strong, operating expenses were $10m higher last year than in prior years and suggested this was an area that should be reviewed because “we would like a dividend next year too”.

Moving manufacturing from France and NZ to the company’s new premises in India was one area of operations that expected savings soon, and Altug said that further cost-cutting measures would be outlined at the next annual shareholders meeting.

“We are making efforts to aggressively streamline and optimise because, again, I think we must maintain the sensitive balance with managing overheads but also investing in capabilities that still allow us to grow,” he added.

Altug concluded that the board and leadership were confident in the company’s medium to long-term outlook, including for telco infrastructure.

nztx

17-07-2023, 04:21 PM

No problem visible before greenlighting Divie out to long awaiting Masters & Maidens or was
news a bit show making it up to Control Tower ? ;)

winner69

24-07-2023, 01:08 PM

Well last weeks announcement gone down like a lead balloon …share price 77 cents and multi year low.

Hard to believe wasn’t that long ago it was over $2.20

Maybe it really is CHEAP AZ now

SPC

24-07-2023, 01:56 PM

17 years of history would clearly suggest otherwise..

moimoi

25-07-2023, 10:11 AM

Often only takes 50k volume to send this down 1-2% per day.

Wonder how much, if any, consideration was / is been given to a on-market buyback instead of the nano dividend payment.

Would possibly provide SOME liquidity in the stock.

GLTA.

SPC

25-07-2023, 10:22 AM

The market has valued the stock as it sees it. It clearly has no confidence in the company to deliver meaningful value to sharehoders. Suggestions that the company should start buying its own shares to somehow start an artificial market-surge is not the answer. And it's recent forward looking advice to the market suggests it won't have the funds anyway?.
It should never have listed in the first place.
It's inching ever closer to a management buyout imo and the offer won't be worth celebrating for many recent entrants. The family owners sold a chunk of it at IPO for around $1.60.

Rawz

25-07-2023, 10:27 AM

The market has valued the stock as it sees it. It clearly has no confidence in the company to deliver meaningful value to sharehoders. Suggestions that the company should start buying its own shares to somehow start an artificial market-surge is not the answer. And it's recent forward looking advice to the market suggests it won't have the funds anyway?.
It should never have listed in the first place.
It's inching ever closer to a management buyout imo and the offer won't be worth celebrating for many recent entrants

Yeah its at the point where we need to kick it while its down. May as well. Get it really low and then buy some more. 30 cents anyone?

SPC

25-07-2023, 10:33 AM

Azz

25-07-2023, 09:25 PM

Buying at 15c was even better.
You can't talk a stock up or down on forums like this. The market is infinitely bigger than this place. I only just got out with my shirt still on after 17 years. Mostly by averaging down on ridiculous prices as above. It's not the ideal approach but it got me out of jail and I had the funds. Others may not have the nerve or capacity to buy out their loses this way.
IMO as a 17 year investor I consider this a risky investment and I can't see myself returning.

Averaging down is pretty risky on this one, mainly because there's no excitement for this stock at all, it's got a long way to go to add even 50c. I'm on a loss here, nothing too terrible but I guess that's subjective. The only options I'm considering are Hold or Sell. And a sell for me would be to free-up capital (people shouldn't be afraid to do this when the sell means a loss but the new buy means a gain). I'm not worried about the long-term prospects of the company. I was not in favor of the dividend. Most likely I'll hold.

SPC

25-07-2023, 09:55 PM

As a holder I was a great believer in their technology and continued product development. And coming from a professional telecommunications background I understood what they manufactured and why.
But they only made parts for other manufacturers, never the complete product.
Thus they are a price taker not a price maker. If you only make parts then you simply become another parts supplier.
Samsung didn't become big making LCD screens, they made the whole TV (just an example). Fisher and Paykel Appliances made whole washing machines, not just the smart drive electronics and flat motors. The Japanese companies in the 1950s that bought the transistor patents off the American developers (who saw no future for them..urr.. ) built small transistor radios in their millions, not just more transistors as parts.
Rak would be better placed within a larger chip or telecommunications manufacturer to gain an inboard customer for its products. I think that may be it's ultimate fate. The initial BoD were poor choices in my opinion. They steered the wrong way. But I'm out now anyway.
It's just a shame seeing this company wobble along year after year.

Azz

25-07-2023, 10:59 PM

moimoi

08-08-2023, 05:50 PM

Hmmm...

Appears close to 70% took the cash rather than DRP shares in the inaugural dividend.

xafalcon

08-08-2023, 06:56 PM

While there is a Robinson on the payroll, or a Robinson as a landlord, or a Robinson on the board, stay well clear of this company

Robinson's are parasites, nothing more

I was a believer for 10 tears and lost $27k

SPC

08-08-2023, 10:03 PM

Rawz

09-08-2023, 09:00 AM

Grim posts..

Rawz will hold on to see the huge uplift in margins in FY25 thanks to the new Indian factory.

xafalcon

10-08-2023, 11:47 AM

I'm sorry to hear that. I would have been probably closer to $100k down at some point in the mid 2000s. It was an early investment decision for me and the massive gravel rash I sustained holding this company taught me a painful lesson about IPOs. I held on, bought up nervously when the share price became laughably low and gradually bought my losses out over time. I believed in their products but lost all confidence in management and governance. They should have hired external professionals from day one.
I don't have confidence the company can last too many more years in its current iteration, but time will tell.
Incidentally I also had a large holding in F&P Appliances at the same time. That company ran into similar problems, brilliant tech but imo many poor decisions were made around overseas expansion and poor foreign exchange awareness.
Luckily Haier came riding to the rescue and I got given a parachute and some loose change for my years of ownership.
GLTHs

It's all part of my learning experience call "life"

Like you I doubled down, and doubled down and ........ Eventually buying at $0.19. At those prices you get a heap of shares for not much money

Then, the Misses gets caught with another guy and everything gets sold and cut in half. I sold out at $0.25. This minimised my losses

The CEO, Brent (?) Robinson, was a liar to my face about company prospects. I'd like 5 minutes with him in a quite place so he could meet my persuader......

I would never invest in this company while a single Robinson had an ounce of involvement - I'm guessing they still own the building and still charge disproportionate and extortionate ground rent?

Robinson's always looked after themselves first, second, third, with everyone else following that

Azz

10-08-2023, 07:15 PM

Then, the Misses gets caught with another guy and everything gets sold and cut in half.

Mine got caught with another girl, but I didn't complain about it, in fact a satisfactory solution was found on the spot.

SPC

10-08-2023, 08:55 PM

Deleted....

winner69

16-08-2023, 05:25 PM

At leastvDirectors got the pay rise they wanted

Azz

21-08-2023, 03:12 PM

With a healthy 1.3% gain so far today, Rakon is an NZ market top-ten gainer! Could be the start of the turnaround!

Raro

22-08-2023, 01:01 AM

Move fast and break things... If there's one company in NZ that should crack this market (and even acknowledged their interest and involvement in this area at their ASM last week) it's Rakon. Here's hoping there's some more news coming about their interest in this market soon... Giddy up I reckon.

https://www.nbr.co.nz/shoeshine/move-fast-and-break-things-ethos-anathema-to-good-ai-practice/

https://www.eejournal.com/article/mems-oscillators-address-precision-timing-problems/

Siyamalan

25-08-2023, 12:10 PM

Rakon in news again
https://www.rakon.com/news/historic-lunar-lander-navigation-powered-by-rakon-tech

Wai Wai

03-09-2023, 03:56 PM

And again here
https://www.rakon.com/news/rakon-tech-takes-off-for-close-up-view-of-the-sun

Mel

04-09-2023, 07:35 AM

Their news stories :). I'm interested when they have revenue numbers linked to them.

Wai Wai

07-09-2023, 01:11 PM

The attached describes the huge demand AI will have on datacentres and the inevitable uplift in demand for Rakon’s existing and futuretiming products (described in the second link) which by all accounts are worldleading

https://www.schroders.com/en-us/us/individual/insights/how-ai-is-set-to-accelerate-demand-for-data-centres/ (https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.schroders.com%2Fen-us%2Fus%2Findividual%2Finsights%2Fhow-ai-is-set-to-accelerate-demand-for-data-centres%2F&data=05%7C01%7C%7Ca2d244aa6cf84dd9e5e308dbae9b73a0 %7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C6382 95754913491291%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4 wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M n0%3D%7C3000%7C%7C%7C&sdata=u%2FjJoi1%2FSUfbjtwX6DwwM%2BDl52uigyAXMst65I mGVsQ%3D&reserved=0)

https://www.rakon.com/applications/telecommunications/data-centre-synchronisation (https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.rakon.com%2Fapplications%2F telecommunications%2Fdata-centre-synchronisation&data=05%7C01%7C%7Ca2d244aa6cf84dd9e5e308dbae9b73a0 %7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C6382 95754913491291%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4 wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6M n0%3D%7C3000%7C%7C%7C&sdata=CRc8ocZ5sLwxOywzt2McB7%2BSK68U34ZKL1PlkKIWXf E%3D&reserved=0)

Azz

08-09-2023, 11:34 AM

the huge demand AI will have on datacentres

Correct. And it's unreal huge.

and the inevitable uplift in demand for Rakon’s existing and futuretiming products

Let's hope so!

xafalcon

08-09-2023, 06:20 PM

The attached describes the huge demand AI will have on datacentres and the inevitable uplift in demand for Rakon’s existing and futuretiming products (described in the second link) which by all accounts ]

Herd this all before from the Robinson's.

Last time it was IoT, going to take over the world and Rakon will supply the chips

Before this is was GPS chips, and once again, Rakon was going to supply the chips

But it just never happens. Great spin, no substance, ever

IMO the only winners have been Robinson's. They always seem to get well remunerated through salaries, directorships, lease-backs

Invest only if you can afford to loose almost everything, because you probably will

Leopards don't change their spots

SPC

08-09-2023, 08:27 PM

Yep. How many indian moon rovers and sun probes does the market actually need?.
Great ocillators etc for sure, but if they'd switched to making plastic balloon toys like the Zuru mob, holders would've been rich by now.
Isn't that the purpose of investing?.

stoploss

08-09-2023, 09:22 PM

Herd this all before from the Robinson's.

Last time it was IoT, going to take over the world and Rakon will supply the chips

Before this is was GPS chips, and once again, Rakon was going to supply the chips

But it just never happens. Great spin, no substance, ever

IMO the only winners have been Robinson's. They always seem to get well remunerated through salaries, directorships, lease-backs

Invest only if you can afford to loose almost everything, because you probably will

Leopards don't change their spots
100% agree , wasn’t another one talking about one of their chips for GPS will be needed in smart phones ….
How many billion smartphones have been made since …. You can bet your bottom dollar whatever the latest “Fad” is
they will have a product for it .AI , lol don’t hold your breath.

Azz

09-09-2023, 09:11 AM

Rawz

20-10-2023, 11:16 AM

CFO gone. New CFO instantly in. Looks the goods.

Rakon Limited (NZX: RAK) (Rakon) is pleased to announce that Drew Davies will
join the company as its Chief Financial Officer (CFO), effective 24 October
2023.
Mr Davies has previously held CFO roles, board directorships, and executive
leadership roles during his 30-year career in the United States of America
and New Zealand.
Sinan Altug, Rakon's Chief Executive Officer, commented: "We are excited to
welcome Drew Davies to the Rakon team as our new Chief Financial Officer.
Drew's extensive experience and proven track record align perfectly with
Rakon's strategic direction. His financial acumen and strategic leadership
will be invaluable as we continue to drive our growth strategy and create
sustainable value for our stakeholders."
Most recently, Mr Davies served as the CFO of 2degrees, a mobile and fixed
full-service Telecommunications company in New Zealand until the company's
sale to two Australian Superfunds in 2022. He led a number of
transformational projects including the IPO process for listing on the
Australia and New Zealand Stock Exchanges.
In the United States, he served as the CFO and Executive Vice President of
Corporate Development for Trilogy International Partners, a multinational
Mobile Telecommunications company doing business in the United States with
operations in New Zealand, the Caribbean and South America. During his
nine-year tenure with Trilogy, he conducted numerous High Yield Debt and
Equity transactions globally, and also served as a Director and Board member
for a number of Trilogy companies.
Prior to his appointment at Trilogy, Mr Davies held a number of senior
financial and operational roles with T-Mobile US Incorporated, along with
other mobile telecommunications companies in the United States.

winner69

31-10-2023, 09:25 AM

Sideshow Bob

31-10-2023, 09:33 AM

Putting AI in an announcement should surely get punters excited??

winner69

31-10-2023, 09:36 AM

Putting AI in an announcement should surely get punters excited??

AI as well as space …what can go wrong

whatsup

31-10-2023, 09:40 AM

As share price slides to multi year lows Rakon announces chips supporting AI

Jeez a 1.3 trillion market …go Rakon

NZ needs innovators like you

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RAK/420756/406118.pdf

Not to be a black cloud, I wonder how this new chip Hiku can compare with the product that ARM produces ?

Mel

31-10-2023, 10:25 AM

As share price slides to multi year lows Rakon announces chips supporting AI

Jeez a 1.3 trillion market …go Rakon

NZ needs innovators like you

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RAK/420756/406118.pdf

Heard this rhetoric before - so as per usual, show me the money rather than the potential - coming from someone who is significantly in the red on this stock.

Raro

10-11-2023, 04:39 PM

SI Time on the acquisition trail in the timing space. Who's next??

https://investor.sitime.com/news-releases/news-release-details/sitime-acquires-clock-products-aura-semiconductor

nztx

10-11-2023, 09:21 PM

AI as well as space …what can go wrong

I'll believe it when I see AI getting RAK blasting off into outer space .. many have had a long wait already :)

SPC

10-11-2023, 10:20 PM

If only they'd dumped the ocillator chips and taken up manufacturing water balloon toys as I'd suggested years ago we'd all be millionaires now. I mean it's what the world really needed after all.

Sideshow Bob

23-11-2023, 09:53 AM

https://www.nzx.com/announcements/422203

Market Release
23 November 2023

Rakon continues to focus on efficiency initiatives and investment for future growth

Global high technology company Rakon (NZX: RAK) has today released its financial results for the six months ended 30 September 2023.

All numbers are stated in New Zealand dollars (NZ$) and relate to the six months ended 30 September 2023 (HY24), with comparisons to the six months ended 30 September 2022 (HY23) unless stated otherwise.

Financial Highlights

• Revenue of $61.3 million (HY23: $87.2 million) reflects industry-wide challenges and the completion of one-off chip shortage contracts
• Telecommunications revenue down $13.4 million to $34.2 million and Positioning revenue down $9.2 million to $7.2 million, reflecting anticipated normalisation of customer inventory levels. Space and Defence recorded its highest revenue to date of $15.3 million, up 24% from HY23
• Gross margin of 42.7% (HY23: 49.9%) reflects non-recurring costs associated with workforce restructuring and lower production due to the move to the new India facility
• Operating expenses were relatively flat at $28.8 million (HY23: $28.4 million) reflecting both increased investment for future growth and inflationary pressures, and the offsetting effect of Rakon’s focus on efficiency initiatives to improve long-term competitiveness
• Underlying EBITDA1 of $5.3 million (HY23: $28.1 million) reflects the fall in revenue, non-recurring costs and sustained investment for growth
• Reflecting the deferment of 5G infrastructure deployment by mobile network operators as they adjust to current macroeconomic pressures, and longer than anticipated inventory normalisation by Rakon’s Telecommunications and Positioning customers, Rakon now expects FY24 Underlying EBITDA1 of between $13-$19 million.
Strategic Highlights
• Continued market share gains and an all-time high design win rate, which has increased 33% YoY with a conversion rate of over 90%
• Planned production of select New Zealand and France product lines at the new India facility is progressing on an accelerated schedule – delivering margin improvement from FY25
• Now established in the fast-growing NewSpace and Low Earth Orbit (LEO) satellite ecosystem; highest order book for Space over 12-month period and expecting this growth to continue
• Launched the latest Rakon semiconductor chip, the first of its AI computing hardware portfolio, and working with leading players in AI computing hardware on next generation platforms
• Continued delivery of three-year growth strategy and on track to deliver all FY24 milestones.

Chief Executive Officer, Sinan Altug says “There is no doubt that we continue to deal with a tough short-term macroeconomic environment. Our customers continue to work through their inventory levels, after stockpiling through the global supply chain disruptions, and mobile network operators are deferring some planned 5G capex.

As evidenced by recent announcements, we are now seeing these conditions lasting for longer than previously anticipated. However, we share the confidence of our tier 1 customers, who are seeing these adjustments as temporary pauses on the path to growth, and equivocally expecting the deployment of this deferred investment to return.”

“We are focused on diversifying and growing in new markets. A great example of this is our Space and Defence segment, which is going from strength to strength, delivering highest revenue to-date in HY24, and has become another strong vertical alongside Telecommunications. We have also taken the first steps towards AI computing hardware becoming a core market. The launch of our next generation semiconductor chip, Niku, lays the foundation for our AI computing hardware portfolio and we will add more next-generation products to this portfolio in the coming year.”

“We are also leaving no stone unturned as we focus on optimising and running our business as efficiently as possible. The steps we have taken to date are already providing tangible benefits, but we continue to look for more efficiencies across our global operations. This will put us in the best position to navigate the current macroeconomic conditions, offset inflationary impacts and improve our resilience and competitiveness into the future.

“The medium to longer-term growth fundamentals for Rakon’s core markets remain strong. We continue to deliver and execute on our three-year growth plan, which will ensure we’re well positioned to capture and maximise significant opportunities. The strategic and focused investments we are making today will enable us to grow market share, revenue and margins“, says Mr Altug.

Financial Result

Total revenue was $61.3 million, compared with $87.2 million for HY23. This reflects a $10 million impact from the completion of one-off chip shortage contracts as well as the normalisation of inventory levels – impacting both the Telecommunications and Positioning segments.

Telecommunications, Rakon’s largest market, fell to $34.2 million (HY23: $47.5 million) on the back of anticipated industry-wide normalisation of inventory levels among customers. Positioning fell $9.2 million to $7.2 million (HY23: $16.4 million), reflecting the completion of one-off chip revenue of $4 million in HY23 and normalisation of customer inventory levels. Increased activity in Space and Defence resulted in a 24% revenue increase to $15.3 million (HY23: $12.3 million). Rakon’s ‘Other’ segment revenue fell from $11 million to $4.6 million, also reflecting the completion of one-off chip shortage contracts.

Gross profit was lower at $26.1 million and margin percentage was 43% (HY23: 50%), impacted by one-off costs associated with workforce restructuring, lower production due to the move to the new India facility, and lower order volumes impacting economies of scale.

Operating expenses were relatively flat at $28.8 million (HY23: $28.3 million) even with continued growth strategy investment (R&D up to $8.9 million) and incurred inflationary pressures. Rakon’s focus remains on investing for growth while proactively carrying out efficiency and cost control measures.

Underlying EBITDA1 of $5.3 million reflects the fall in revenue along with non-recurring expenses and investment for future growth. Net Profit After Tax (NPAT) was $0.5 million, reflecting Underlying EBITDA1, as well as a share of a loss made by an associate.

Net cash was $13.4 million, down from the prior year after investment of $6.1 million in capital expenditure, including the completion of the India manufacturing facility, and payment of $2.9 million dividend in August.

Balance Sheet

Rakon’s balance sheet remains robust, with net assets of $154.22 million. The company had $13.4 million in net cash at balance date, $5 million lower than a year ago as it continues to self-fund key growth-focused projects and paid its first dividend in August 2023.

Since 31 March 2023, inventory levels have reduced from $62.6 million to $60 million and are down $12 million YoY as Rakon used up safety stocks that were accumulated to mitigate supply chain risks and support the transfer of Rakon India’s manufacturing operation to the newly built facility. The company will continue to focus on lean and agile inventory management going forward.

Rakon is committed to managing its balance sheet to support the company’s long-term sustainability and growth strategy, including maintaining capacity to execute ongoing growth opportunities over time.

Efficiency initiatives

As Rakon continues to invest for growth while navigating the challenging market environment, it is also taking a multifaceted approach to driving efficiency across the business. By streamlining the business without compromising core capabilities Rakon can ensure resilience and maintain market leadership and competitiveness in the years ahead.

In HY24 Rakon reduced its global workforce by over 10% compared to its business plan, optimising production efficiencies while ensuring retention of the right capabilities for continued execution of its growth plan. General and Administrative costs were flat at $14.1 million (HY23: $14.2 million), a positive reflection of the effectiveness of ongoing efficiency actions to offset inflationary pressures. Rakon continues to proactively look at all expense categories, and associations with revenue and future growth objectives.

Growth strategy

Rakon’s three-year growth strategy, as outlined to shareholders at the 2022 and 2023 annual meetings, sets a path for building long-term shareholder value by diversifying revenue with focused investment to grow Rakon’s market share, revenue and margins over time. The growth strategy investments made to-date have allowed Rakon to successfully diversify into higher margin products and are estimated to have increased the serviceable addressable market by 10% in just one year to almost $3.7 billion.

Rakon is on-track to deliver all FY24 milestones for the growth strategy, including the planned production of select product lines from France and New Zealand at the new India facility. This is progressing well on an accelerated schedule and once completed will bring margin improvement from the second half of FY24 and gain increasing efficiencies from FY25.

Rakon launched its latest semiconductor chip, NikuTM, the first of its AI computing hardware portfolio and continues to work with leading players in AI computing hardware on next generation platforms – projecting tangible substantial benefits within the next 12-18 months. The next product in Rakon’s AI computing hardware portfolio, MercuryX™, is scheduled for launch before the end of 2023 and has been released to selected customers for testing.

The Space and Defence segment continues to outperform for Rakon. The company has its highest order book to-date over the 12-month period and is now established in the fast-growing NewSpace and Low Earth Orbit (LEO) satellite ecosystem. This growth is expected to continue as Rakon focuses on expanding into new geographies and moving up the value chain for this market.

Rakon continues to evaluate and consider acquisition opportunities to expand into the US market. This would provide access to top-tier US customers through local manufacturing, strengthen existing customer relationships and significantly increase Rakon’s Total Addressable Market. Rakon is taking the necessary time to ensure any acquisition can be funded, integrated and is value accretive. Rakon is also working on organic expansion into the US, focusing on getting the appropriate market certifications underway.

Outlook

Overall, HY24 Underlying EBITDA1 performed in line with the July market update. However, market dynamics continue to evolve and following further dialogue with customers, and a number of recent peer and customer announcements, Rakon now believes the risk to FY24 guidance is higher than the $10 million (implied FY24 Underlying EBITDA1 of $16 million to $24 million) indicated to the market in July. In the Telecommunications market, mobile network operators are continuing to defer some capex investments for the roll-out of 5G infrastructure as they navigate current macroeconomic pressures. Additionally, both the Telecommunications and the

Positioning segments continue to be impacted by inventory corrections. This is partly offset by the outlook for the Space and Defence segment, which continues its strong performance and is set to benefit from seasonal delivery orders driving H2 revenue.

The fundamental growth drivers supporting Rakon's core markets remain resilient, reflecting robust medium to long-term prospects. Tier 1 Telecommunications customers remain confident in the deployment of delayed investment for the next stage of the 5G network build-out and forecasts show 5G accounting for half of all mobile subscriptions by 2030. Positioning is now showing early signs of recovery and key customer inventory normalisation, and the order book for Space and Defence remains strong, extending beyond FY25.

Opportunities are significant and growing with the ongoing evolution of 5G, Cloud and Edge Computing, AI, autonomous machines and vehicles, aerospace and the entire NewSpace ecosystem. Building on the strong foundations of its products, innovation and customer service, Rakon’s programme of investment for growth and efficiency initiatives will ensure it is well placed to capture and maximise future opportunities.

Ends

Rawz

23-11-2023, 10:00 AM

Shocking. how do i have money invested in this dog stock. only if someone had warned me

SPC

23-11-2023, 10:34 AM

I got out a little while back. Gave up on this pathetic story. Didn't loose, but wasted 16 years reading these almost laughable company announcements year in year out... tough conditions... inventory normalisation...and always big dreams looking ahead...
Yep

JSwan

23-11-2023, 10:38 AM

At least NTA is at 64c lol

nztx

23-11-2023, 06:19 PM

No half year Peanuts being tossed out from this outfit ? ;)

the signals must have gone around the listed outfits - plead poverty and confusing market signals
this time round, then raise the "No Can Do" sandwich board for all the boys & girls out there ..

moimoi

07-12-2023, 05:14 PM

interesting to see @ AMD's new data centre chip presentation today that they raised their view of the total addressable market in 2027 from $150B to $400B.

all will need synchronised timing solutions.

RAK em up..!

ronaldson

07-12-2023, 10:57 PM

I opened a position on 27 November at $0.61 and intend to hold for a while.

Mel

08-12-2023, 09:02 AM

I opened a position on 27 November at $0.61 and intend to hold for a while.
If only my entry price was $0.61.....it's going to require a long hold to get a (potential) return. I think at your entry price, you will likely get a very good return.

Rawz

08-12-2023, 09:04 AM

After the disappointing HY announcement I sold and moved the funds to HCL.ASX where i saw better returns over the next 12-18 months

sb9

08-12-2023, 09:39 AM

Mel

11-12-2023, 10:52 AM

Trading Halt - let's see what news this brings!
https://www.nzx.com/announcements/423264

moimoi

11-12-2023, 11:59 AM

Its around the time of year that they have previously made announcements relating to earnings guidance.

Interesting though, that its NZ Reg Co that has put RAK into a halt and not the Company.

winner69

11-12-2023, 12:00 PM

I opened a position on 27 November at $0.61 and intend to hold for a while.

Great timing Ron

You might not be holding for long …..if you take the money nzd run ….but you getting plenty of experience in managing takeovers eh

SPC

11-12-2023, 01:41 PM

Well if it is a takeover offer you can probably bet it won't be anywhere like the circa $1.60 IPO price 16+ years ago.
Are we about to see the end of yet another sad chapter in public listings?.

ronaldson

11-12-2023, 02:01 PM

My best guess is this commentery from the half year results recently:

Rakon continues to evaluate and consider acquisition opportunities to expand into the US market. This would provide access to top tier US customers through local manufacturing, strengthen existing customer relationhips and significantly increase RAK's Total addressable Market. Rakon is taking the necessary time to ensure any acquisition can be funded, integrated and is value accretive. Rakon is also focusing on organic expansion into the US, focussing on getting the appropriate market certifications underway.''

Rather a lot to say with some specificity unless something lying behind it, I thought.

Also the 31 October market release titled " Rakon launches Niku (TM) chip: AI Computing Product portfolio" is worth another read.

ronaldson

11-12-2023, 02:57 PM

Why do the powers that be trade halt and then f*** around for hours with no news?

Almost certainly will come after market close today or before market open tomorrow. Fairest to all shareholders then, rather than release intra-day when many folk are working/have their attention elsewhere.

winner69

11-12-2023, 03:05 PM

Almost certainly will come after market close today or before market open tomorrow. Fairest to all shareholders then, rather than release intra-day when many folk are working/have their attention elsewhere.

Bit of a bugger for those trades at open eh

Some might count themselves lucky ….

xafalcon

11-12-2023, 04:12 PM

Well if it is a takeover offer you can probably bet it won't be anywhere like the circa $1.60 IPO price 16+ years ago.
Are we about to see the end of yet another sad chapter in public listings?.

IMBO (in my biased opinion), if RAK is removed from NZX, it will be doing NZ shareholders a favour. The ONLY beneficiaries of RAK over the past almost 20 years have been the Robinson family. Over this time RAK has only destroyed shareholder value chasing their various unicorns, raising cash to support hair brained investments that have never provided returns to shareholders. IoT anyone? Manufacturing in France? GPS chips. Indian manufacture

Good riddance (hopefully)

SPC

11-12-2023, 04:24 PM

I think the market notice mentioned a third party? So my guess is an entity making an unsolicited buy in or take over/take out.
Rakon were talking acquisitions themselves, maybe they're being acquired instead? We'll see tomorrow?

winner69

11-12-2023, 04:27 PM

Jeez $1.70 …take it quick

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RAK/423277/409321.pdf

ronaldson

11-12-2023, 04:27 PM

What's the difference between a trade halt, and the non-trading period between closing bell and market open in the morning?

I'm not sure that the period after the "closing bell" as you put it is literally a "non-trading period" absent an actual trading halt. Brokers often cross shares after 5.00pm and report them to the market after, or before trading opens next trading day. And often trades occur after at the VWAP ( Volume Weighted Average Price calculated on that day's trades ) as fair between buyer and seller in circumstances. Presumably all these are prohibited under a trading halt in force. Would need to read the Rules applicable as to what brokers can do after hours as it were, but presumably the match pricing system is suspended without precluding brokers arranging trades (between their own clients?).

winner69

11-12-2023, 04:29 PM

Well done Ron and others

Hope Board don’t stuff this up for you guys

percy

11-12-2023, 04:32 PM

Low today. 62 cents.
Currently $1.22.
Lucky buyers.
Unlucky sellers.

SPC

11-12-2023, 04:33 PM

$1.70 ! so beats my IPO est by10c, heck take it and run like hell. If it happens..

errornz

11-12-2023, 04:38 PM

Glad I held on. Was about to sell. Fingers crossed it goes through.

Walter

11-12-2023, 04:52 PM

Hopefully it's not some lowball offer for this company of great potential and terrible execution.
Looks like you are right, $2.75 would be better, so we will see what the report says. Lot's of weak sellers who bought old Rakon, not the new and improved version.

Mel

11-12-2023, 06:12 PM

Looks like you are right, $2.75 would be better, so we will see what the report says. Lot's of weak sellers who bought old Rakon, not the new and improved version.
I'm glad I've increased my holding over the last year or so, it is now a substantial holding - if the proposal translates to an offer, $1.70 would give me a tidy profit and I would be happy given the recent weakness.

Rawz

11-12-2023, 06:27 PM

Wow good offer!! I sold not long ago… lol can’t win em all

Lego_Man

11-12-2023, 06:35 PM

Such a well worn story now. NZX listed company chronically underperforms (optionally after an overpriced float), loses insto and fund manager coverage, abandoned by retail too as punters are burned one after the other. Becomes underfollowed and undervalued, offshore opportunist swoops in. Rinse and repeat. Next are TWR and MFB.

jonu

11-12-2023, 06:38 PM

So where does the price settle in the interim?

Discl; Holding

moimoi

11-12-2023, 07:05 PM

Thank you to Rakon for advising ALL shareholders such that we are now all aware an indicative offer has been made.

Useful indicative opening bid, not in relation to the obvious near term prospects, but more in the context of the recent piss weak NZX market pricing for the stock.

Without any specific knowledge i'd take a guess that $390M won't be enough to get the family and long term holder Wairahi over the line...

A starting point for a committed buyer perhaps....

GLTA.

sb9

11-12-2023, 07:06 PM

moimoi

11-12-2023, 07:49 PM

So where does the price settle in the interim?

Discl; Holding

higher imo..

discount to indicative offer price reflects an underinformed market imo...

perhaps a function of only 30 minutes trading before market close and on a Monday with offshore markets offline.(ie: arbitrage funds)

GLTA

ronaldson

11-12-2023, 07:55 PM

Funny how things go. This was never on my radar until the Auckland Branch of NZSA undertook a company visit just a few weeks ago. As we left after the presentation and the facility tour on that occasion I picked up a copy of the FY23 Annual report ( to 31 March ) offered as we departed and later read it from cover to cover, followed by the Interim Report to 30 Sept 2023. Then at the sharetrader "get together" at Oyster and Chop in November it was one share discussed at least by some and Oliver mentioned he had commenced as a holder, thou rueing his entry price at the time (bet he doesn't now!), and so I finally felt brave underpinned by my thought that geo-politics suggested RAK could ultimately be a takeover target.

We don't know who the third party is just now and it looks like more water is to flow under the bridge but however it is the share price will not revert to the low 60's again. I don't feel motivated to sell presently so happy to wait and see.

Toddy

11-12-2023, 08:38 PM

Mel

11-12-2023, 08:48 PM

Was only matter of time before an offer like this surfaced. Guess its upto majority holders Robinsons to make the call, take the money and run or negotiate something over $2 per share. Hope they don't stuff it up this time for the sake of long (suffering) holders.

Glad I held my nerve when it got sold down badly after results. Always tht this would be picked up by someone who knows and understands the industry they operate in.
Although, I've believed there is a turnaround story to invest in, I'm hoping the Robinson's take the view that they should just exit on the basis that a better offer might not be forthcoming in the short to medium term.

kiwikeith

11-12-2023, 08:51 PM

Offshore money to the rescue. It's a fantastic offer.

The NZX lack of capital scares me with talk of 2024 Bay of Plenty Regional Council selling down Pot, Christchurch Council assets on the block, Wellington Airport and Auckland City Councils Ports of Auckland etc

How does it all end? We become the Jamaica of the south pacific - tenants in our own country. Go to Jamaica where all the big hotels are foreign owned but staffed by locals earning modest incomes.

moimoi

11-12-2023, 08:57 PM

How does it all end? We become the Jamaica of the south pacific - tenants in our own country. Go to Jamaica where all the big hotels are foreign owned but staffed by locals earning modest incomes.

Dont have to go to Jamaica to see that.

A trip to National Park in the central north island will confirm that.

GLTA

Toddy

11-12-2023, 09:11 PM

Dont have to go to Jamaica to see that.

A trip to National Park in the central north island will confirm that.

GLTA

Im guessing that's what you are left with after building Sky Wakas as opposed to drilling for oil and gas.

Toddy

12-12-2023, 07:41 AM

Rise & shine, Rakon holders! It's day two of happiness! :-)

They would have all been too excited to sleep.

Toddy

12-12-2023, 07:50 AM

And I'm one of them lol.....!

Enjoy!

I've reverted to watching reruns of Gold Rush to remind me that you have to be in to win.

Sideshow Bob

12-12-2023, 08:03 AM

They would have all been too excited to sleep.

I beat the buyers who bought in the 2 trades of 10k and 39k yesterday morning pre-halt would be the same.....!!

But it is Rakon - so sure they'll make a mess of it.....

winner69

12-12-2023, 08:22 AM

The offer probably ‘opportunist’ and ‘ materially undervalues Rakon’s business’

Sideshow Bob

12-12-2023, 08:36 AM

Yep lol.......... The way I look at it is what are the odds between success (either a better offer accepted and done, or the current one accepted and done) vs Total F Up. And I have to say imo it's 50/50 lol....

The ideal scenario is that it flushes another offer out.

GLTHA....!!

Toddy

12-12-2023, 08:47 AM

The offer probably ‘opportunist’ and ‘ materially undervalues Rakon’s business’

Yeah. All of my investments are currently materially under valued.

What value did Forbar and Jarden have on Rakon prior to this offer?
.

tomm

12-12-2023, 09:21 AM

So... HOLD OR SELL....????

tomm

12-12-2023, 09:34 AM

Let's see what the beginning of the day action prices it at.
I would say opening will be at $1.26 .

tomm

12-12-2023, 10:10 AM

There is a possible scenario, which I'm sure the savvy Rakon investor will be aware of, and that is selling up at the on-market price (which is currently a fluctuating 25-30% discount to the offer price for the on-market buyer) would be a winning hand played because eventually the deal falls through, nobody else comes to the party, and the share price drops back a little bit above where it was before the offer.
I believe the share holders will be happy to sell half of their holding and THE OTHER HALF : WAIT AND SEE!

tomm

12-12-2023, 10:28 AM

Market is favoring the 30% discount ($1.20).
I believe the big boys are at their works not Mum and Dad share holders.
Resistant at $1.25 ....

Alex

12-12-2023, 12:47 PM

Who is the offer from?

Mel

12-12-2023, 01:01 PM

Who is the offer from?
undisclosed at this stage, they advised it was a 'credible industry player'

Toddy

12-12-2023, 04:15 PM

I'm wondering if this is worth a punt.

Rawz

12-12-2023, 04:26 PM

undisclosed at this stage, they advised it was a 'credible industry player'

Could be current small owner (10%) Siward Crystal Technology

see this from 2016 https://www.rakon.com/news/usd10-million-investment-in-rakon-a-potential-game-changer

ronaldson

12-12-2023, 05:31 PM

Could be current small owner (10%) Siward Crystal Technology

see this from 2016 https://www.rakon.com/news/usd10-million-investment-in-rakon-a-potential-game-changer

Unlikely since they sold 10m shares (over 4%) in July 2021 off market.

sb9

12-12-2023, 06:45 PM

Bit of yo-yo for the day and ran out of fizz at the end. Looks like big holder happy to feed the masses and in hurry to exit.

Memo to the board - get couple of guys in corporate suits to advise on the deal and let them negotiate on behalf. Don't screw it up, might be the last opportunity.

nztx

12-12-2023, 08:47 PM

Are Robinsons looking for a happy exit ?

Is Warahi still buying or now sitting, or selling ?

It might be unloved here, but bound to find a happy home elsewhere globally as part of another stable ;)

Let's face it - MHM rapidly found a happy new owner elsewhere after a few squeaks around new acquisitions .. who is a major customer of RAK who might see benefit in rehoming the ownership of their supplier under their own roof far away ? :)