RAK Rakon

[carrom74]

I am suspecting a fund(if at all there is One) selling heavily at the moment which is resisting any upswing whatsoever... the results are the key if there is any uptake...

[carrom74]

https://www.nzx.com/announcements/318092

OK Results---but still no dividend.

Most of the profits came from non-recurring incomes...

This year is crucial for them and for the shareholders

[Scrunch]

Well it still looks like profit!

Il be happy with a spike though

Fairly good spike today. RAK was trading at round 19c over the month leading up to todays profit result. There was a 5% increase to 20c on the 16th (small volume). Today it opened at 21.5c and closed at 22c, but was down on the daily high of 23.5c (on big volumes). That's up 10% on the day or 16% since the start of the week.

OK Results---but still no dividend.

Most of the profits came from non-recurring incomes...

This year is crucial for them and for the shareholders

Excellent observations that I agree with. Three others are:

At an EPS of 4.4 they will be on a historical PE of 5.0, yes this is inflated by non-recurring items but its still something that might get RAK onto the radar screen of low PE seekers over the next year

The current share price is low relative to NTA ($0.34) and net assets ($0.38) so if you believe the asset values, the current share price cheap

Debt is under control having returned to a net cash position of $7.4m which should also flow through to reduced interest costs next year

Is it a bargin at these prices - possibly but RAK has also serially disappointed in the past, so it will take repeated good results to restore the faith. DYOR

[Balance]

Fairly good spike today. RAK was trading at round 19c over the month leading up to todays profit result. There was a 5% increase to 20c on the 16th (small volume). Today it opened at 21.5c and closed at 22c, but was down on the daily high of 23.5c (on big volumes). That's up 10% on the day or 16% since the start of the week.



Excellent observations that I agree with. Three others are:

At an EPS of 4.4 they will be on a historical PE of 5.0, yes this is inflated by non-recurring items but its still something that might get RAK onto the radar screen of low PE seekers over the next year

The current share price is low relative to NTA ($0.34) and net assets ($0.38) so if you believe the asset values, the current share price cheap

Debt is under control having returned to a net cash position of $7.4m which should also flow through to reduced interest costs next year

Is it a bargin at these prices - possibly but RAK has also serially disappointed in the past, so it will take repeated good results to restore the faith. DYOR

https://www.nzx.com/announcements/318092

OK Results---but still no dividend.

Most of the profits came from non-recurring incomes...

This year is crucial for them and for the shareholders

$8.8m of the $10.0m came from non-recurring items.

So underlying real operating profit = $1.2m which means Rakon with a market cap of $50m trades on a PER of 42 times!

Cash in the bank used to buy-out 51% of Centum India.

Nothing compelling here imo.

[Leftfield]

$8.8m of the $10.0m came from non-recurring items.

So underlying real operating profit = $1.2m which means Rakon with a market cap of $50m trades on a PER of 42 times!

Cash in the bank used to buy-out 51% of Centum India.

Nothing compelling here imo.

A long time ago RAK heralded 'state of the art' acquisitions in France..... then it was the Internet of Things..... it now seems to have walked away from these acquisitions, but don't worry.... there is HUGE potential in India. Yeah Right.

Management has a history of 'over promising and under delivering'. DYOR and take care. (Disc - not holding)

[carrom74]

All said and done ..Rakon does have a potential in the defence sphere in India as India is one of the most aggressively spending countries in defence and its about 2.6% of their GDP and i would consider it high as it is still a developing country.But I will still be sceptical with this company...a lot of us have lost a lot.

[Sideshow Bob]

2018 Review

Everything is hunky-dory

http://nzx-prod-s7fsd7f98s.s3-websit...719/281437.pdf

[Scrunch]

What's that chartists thingie called when the share price goes above short term moving averages and short term moving averages are above the long term moving averages? Golden cross? Well I think that's just happened to RAK.

[Leftfield]

What's that chartists thingie called when the share price goes above short term moving averages and short term moving averages are above the long term moving averages? Golden cross? Well I think that's just happened to RAK.

Not quite Scrunch..... the short term MA is currently below the long term MA as the following pic shows. However, volumes are up and sentiment is improving.

Take care with this one, way too early to get excited IMO. (Disc. Don't hold, was once burned etc.....)
Attachment 9765

[carrom74]

Not quite Scrunch..... the short term MA is currently below the long term MA as the following pic shows. However, volumes are up and sentiment is improving.

Take care with this one, way too early to get excited IMO. (Disc. Don't hold, was once burned etc.....)
Attachment 9765

Good advice... and this is what the chairman had to say in the annual review about its share price...
"It is unfortunate that Rakon’s shares are trading in the low 20 cents,which is around half the net asset backing of 38 cents. No doubtRakon’s years of underperformance are largely to blame, coupledwith virtually no analyst coverage of our stock""

Seems very desperate to spruce the sp up IMO...