RAK Rakon

[Balance]

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

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

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

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

Really feel for the guy too, STC.

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

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

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

[blobbles]

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

[Balance]

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

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

All quiet.

[biker]

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

[tim23]

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

[Balance]

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

Harbour Asset has sold out on the basis of ?

[biker]

Harbour Asset has sold out on the basis of ?

Frustration, impatience and short sightedness ;-)

[biker]

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

t.w.t imho

[Balance]

Frustration, impatience and short sightedness ;-)

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

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

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

Rakon has tested 1 and 2 to breaking point.

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

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

[biker]

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

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

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

Rakon has tested 1 and 2 to breaking point.

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

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

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