RAK Rakon

[Snow Leopard]

That's what I read as well! "We are (essentially) selling 32 million of assets for 18.8 million....

As I read it, they valued their stake in the factory at $52M had to cut that to $20M, to sell 80% for $18.8M.
The remaining 5% that they keep is worth $1M2.

Best Wishes
Paper Tiger

[blobbles]

A quick look into the balance sheet of the last company report and after the sale of this asset...

	Stated Value ($ million)	Real Value ($ million)
Cash	10	10
Trade & Other	48	48
Derivatives	2	2
Inventory	46	15**
Trade & Other	6	6
Property Plant & Equipment	87	32*
Intangible	25	0
Investments	12	12
Deferred Tax	5	5
Plus 19 million from sale		19
Total	241	149
Liabilities (which I can't see any upside to)	84	84
Position	157	65
CPS	0.82	0.34

* This was calculated at 87-32=55*0.59 (same ratio as assets just sold at)
** Assuming a fire sale on their inventory, most likely if company goes belly up

Not including share capital, negative reserves etc in here as well... I aren't a financial analyst though, feel free to correct any mistakes I have made!

[The BOWMAN]

20% price jump from a pretty negative news. Or is it actually positive? I thought that factory was the best asset they have. The one that they can actually use to generate profit. A slow death with a thousand cuts.

[blobbles]

As I read it, they valued their stake in the factory at $52M had to cut that to $20M, to sell 80% for $18.8M.
The remaining 5% that they keep is worth $1M2.

Best Wishes
Paper Tiger

Holy moly, that would make the assets look rather worse off than they are... the market seems to be loving it though, up 5c now!

[blobbles]

Oh and can I mutter the words "insider trading" under my breath for the Monday to Thursday rise in SP?

[The BOWMAN]

I can't wait to see the next Rakon financial report.

[evag]

I think we are looking at a take-over very soon, their are hints in the report "Market consolidation"!

[blackcap]

Yeah and some poor suckers got in at 27 Sorry Sparky but for every buyer there is a seller
But yeah, buyer beware with stocks like this.

[Balance]

Oh sure - I didn't want to put the boot into the buyers at 27c. Merely congratulate those who got a bit more when they sold.

Insider trading complaint launched according to NBR.

NZX totally at fault here - sp moved over 20% in a few days and no price inquiry.

Those who sold out at 22 cents and below should be demanding an inquiry as well.

[Master98]

One most nasty company listed on NZX. AVOID!