RAK Rakon

[Snow Leopard]

Net Equity is 77m according to the Interim report, which is about 40.3c per share. They are forecast to make a profit of 10-15m including 4m loss in 1st Half, so the second half will make 14-19M alone, if we use P/E 15 as a base line for a company that's making a profit of 28-38M per year, it should be worth 420M to 570M which is around $2.5 a piece, buying it now is a steal

Please prove me wrong if my facts are wrong, or if you disagree, I'm always open to it

Although Net Equity is indeed $77M or $0.403 a share but we all like to talk about Net Tangible Assets so we removed the intangibles and deferred tax and then we get NTA of $0.307 a share.

For the first half of the year they claim EBITDA of positive $4.3M which after the ITDA came off translated to NPAT of negative $3.4M.

Now Rakon have stated that full year EBITDA (not profit) will be from $10M to $15M so profit will be [small/nothing/negative] <<you can choose.

I do not like it when people pluck P/E ratios out of thin air and say the company is thus worth $X. If you want to value the company you had better give us a reasonable story of the next few years for Rakon.

Best Wishes
Paper Tiger

[winner69]

Although Net Equity is indeed $77M or $0.403 a share but we all like to talk about Net Tangible Assets so we removed the intangibles and deferred tax and then we get NTA of $0.307 a share.

For the first half of the year they claim EBITDA of positive $4.3M which after the ITDA came off translated to NPAT of negative $3.4M.

Now Rakon have stated that full year EBITDA (not profit) will be from $10M to $15M so profit will be [small/nothing/negative] <<you can choose.

I do not like it when people pluck P/E ratios out of thin air and say the company is thus worth $X. If you want to value the company you had better give us a reasonable story of the next few years for Rakon.

Best Wishes
Paper Tiger

Spot on PT but you shouldn't have tempered Forestwinds enthusiasm for Rakon - screaming buy

In Rakon's words the difference between their Operating EBITA and real profit is Underlying EBITDA c (Earnings before interest, tax, depreciation, amortisation, impairment, employee share schemes, non-controlling interests, adjustments for associates and joint ventures share of interest, tax & depreciation and other non-cash items)

All those things are probably $11m odd for FY15 (normalised off course) so as you say little or no or negative real profit this year

Its all about buying the dream again ..... maybe that dream will turn into reality. Who knows

[moimoi]

Hmmm...

Trading rather weakly for a stock 15 days out from supposedly producing its first positive EBITDA result in years.

No negative pre-announcement, could they actually do what they said they were going to do....

[xafalcon]

Yep, agree 100%. Leopards (aka Robinsons) don't change their spots. Forex losses has always been one of their favourite excuses for failing to live up to their own performance targets. So I'd assume they are now heavily covered at $0.85-0.88 for several years.......

[golden city]

finally rak has delivered

[winner69]

What, no comment on Rakon Earnings before a lot of other things UP 304% and a return to profitability

Well done

https://www.nzx.com/files/attachments/213395.pdf

[golden city]

if exchange rate keep at like this.., i am assume next year will be 12million profit..which looks good

[Vaygor1]

I have zero trust and zero confidence in rak and will not be analysing an iota of their results.
I hope pwc did their homework on the Auditor's report.
Well done to you Golden City and I trust the sp will follow accordingly for you.
Be careful out there.

[sb9]

I have zero trust and zero confidence in rak and will not be analysing an iota of their results.
I hope pwc did their homework on the Auditor's report.
Well done to you Golden City and I trust the sp will follow accordingly for you.
Be careful out there.

Yeah, must say do not have much faith in management either.

Disc - do not hold.

[Master98]

I heard rakon staff start working 4 days a week because not enough work to do, but not confirmed! DYOR!