RAK Rakon

[Balance]

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

Snap. 20 cents is gone.

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

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

[Blendy]

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

[Blendy]

good idea

[biker]

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

Quite right Snapiti. One of the Robinson Turkeys gobbling on National Radio this morning stated that there definitely won't be a rights issue capital raising so I guess that settles that.

[winner69]

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

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

So Rak will be ok

[winner69]

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

[Balance]

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

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

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

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

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

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

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

[winner69]

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

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

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

[Snow Leopard]

So not so much

Rakon Limited, Full Year Annual Report

as

Rakon, Limited Full Year Annual Report

Best Wishes
Paper Tiger

[janner]

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

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

masochists !!!...