RAK Rakon

[Scrunch]

The independent director Keith Watson was appointed to the board in 2018. He's joined the share register buying 100,000 shares at $0.28

Directors dipping their hands into their pockets to buy shares on-market is usually a good sign. Not always as proven by MPG but usually.

[whatsup]

I remember at this years AGM RAK's CEO said that the upcoming 5 G roll out would be very good business for Rakon and Im wondering with the recent cancelling of the Chinese Huawei participation in N Z,s rollout how much extra business will come Rakons way ?

[BlackPeter]

I remember at this years AGM RAK's CEO said that the upcoming 5 G roll out would be very good business for Rakon and Im wondering with the recent cancelling of the Chinese Huawei participation in N Z,s rollout how much extra business will come Rakons way ?

Given that Rakon is in a partnership with Huawei it well might mean less business coming Rakons way if our very own spooks block the use of Huaweis equipment.

https://www.nzherald.co.nz/business/...ectid=11826501

[Rep]

I remember at this years AGM RAK's CEO said that the upcoming 5 G roll out would be very good business for Rakon and Im wondering with the recent cancelling of the Chinese Huawei participation in N Z,s rollout how much extra business will come Rakons way ?

Let's think about that for a moment.

Alcatel Lucent have 5G
Ericsson have 5G
Nokia have 5G
Samsung have 5G

SK (South Korea) Telecom selected Ericsson, Nokia and Samsung as did did the US AT&T - they all have lots of experience in rolling out networks as do Alcatel Lucent (although they did roll out the XT network for Spark).
Realistically, I can't see why one of those providers would want or need to have another provider involved like Rakon, that's just asking for a longer, harder path to integration - a few years ago, Rakon said that IoT was the next 'game changer' for Rakon and now it's 5G. Next year it will be something else to kick the can along the road.

[moimoi]

I remember at this years AGM RAK's CEO said that the upcoming 5 G roll out would be very good business for Rakon and Im wondering with the recent cancelling of the Chinese Huawei participation in N Z,s rollout how much extra business will come Rakons way ?

@ the AGM RAK also said that their products had been "designed in" to 80% of the Tier 1 5G component makers...

[Rep]

@ the AGM RAK also said that their products had been "designed in" to 80% of the Tier 1 5G component makers...

Let's see what the actual revenue looks like in a year's time then

[stoploss]

@ the AGM RAK also said that their products had been "designed in" to 80% of the Tier 1 5G component makers...

Years ago in one of the annual reports they were talking about one of their products and said something along the lines every mobile phone will need one ....
The performance of the s/p since would suggest they never made it into any of the one billion iphones made .
My point is they me be "designed in " but will the manufacturers go with RAK , history says no.

[moimoi]

Years ago in one of the annual reports they were talking about one of their products and said something along the lines every mobile phone will need one ....
The performance of the s/p since would suggest they never made it into any of the one billion iphones made .
My point is they me be "designed in " but will the manufacturers go with RAK , history says no.

In FY2014 RAK had over 100m in unit sales and were in iphones, and other smart phones.

The problem with the smart wireless device (SWD) market was that the products they were selling got heavily commoditised by other much larger players that had scale. Tough to make much money when the price per unit collapses to 4 cents...

Thats why RAK got out of the SWD market segment, with vast losses, as they were No.7 of 7 in size in that market.

5G requires significantly greater timing precision which supports RAK's innovation, and potentially (until subsequently commoditised over time) greater margins.

[whatsup]

More interest today up to .30 again.

[Scrunch]

Interesting "price sensitive" announcement today. Working capital facilities with ASB increased by $6m. I guess they now have a bit more dish to spend on inventory and then receivables.