RAK Rakon

[biker]

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

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

[winner69]

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

Hows that for a conclusion

[blah]

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

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

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

[blah]

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

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

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

[biker]

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

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

[biker]

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

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

[blobbles]

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

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

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

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

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

[winner69]

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

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

[ratkin]

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

Only if you hold the wrong type of stock

[Schrodinger]

Run. Run very fast away.

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

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

Hard to win against these guys.