RAK Rakon

[Shareguy]

Good info Fiordland Moose. Currently trading at a very modest PE.

[Rawz]

Haha wicked. Just ran some numbers, using guidance midpoint and high end, last close price of 1.48, and last reported net debt of 5 million net cash (15m cash, 10m debt). Used historical figures and extrapolated up for depreciation, amortisation, interest and tax to calculate PE and EV/EBIT.

EV/EBITDA; 7.3x midpoint / 6.9x high
EV/EBIT: 9.7x mid / 9.0x high
PE: 12x mid / 11.2x high

These are reasonable figures. Issue is no one has a good feel for what maintainable earnings are after this boom and shortage of oscillators. Core 5g and maintainable demand for its TXCO products will be interesting, but these low multiples suggest that priced in. We will get a divvy and some decent upside from here, in my opinion, certainly not advice. Happy holder.

Bang on the money Fiordland Moose.

Happy to hold

[moimoi]

""...has delivered greater than expected volumes of higher margin product in September and October.""

""..continued delivery against the significant long term orders previously secured due to the world-wide chip shortage"

Knocking it out of the park..

A classy effort by the whole RAK team.

[Wai Wai]

Not so long ago (July) Siward sold down 10 million shares at 88 cents per share offering leading Kiwi fund managers and institutions the opportunity to invest.
Maybe one chose to invest while ACC have steadily reduced their holding in Rakon from around 7.6 million shares to the current 5.6 million.
And still no broker research.
It appears our leading brokers and fund managers have yet to exorcise memories of Rakon’s pre 2019 performances.
That is sad.
EROAD EV/EBITDA 17,SAN EV/EBITDA 14 (NZX top 50)NZX EV/EBITDA 18 (NZX top 50)

[SPC]

Those pre 2019 memories are held with good reason. 14 years of continuous disappointment and zero dividends are difficult to erase. Leopards do not change their spots. One swallow doesn't make a spring. Misplaced euphoria by recent investors in my view. Holder since 2006.
There's always a cloud around the corner with the this co. I'm watching on with wry smile...

[Scrunch]

Those pre 2019 memories are held with good reason. 14 years of continuous disappointment and zero dividends are difficult to erase. Leopards do not change their spots. One swallow doesn't make a spring. Misplaced euphoria by recent investors in my view. Holder since 2006.
There's always a cloud around the corner with the this co. I'm watching on with wry smile...

If there wasn't a cloud around the corner, the approximate doubling of EBITDA in one year would command a lot higher earnings multiple than currently exists. The bit that is really hard to gauge is how much of the forecast result is an on-going long term position, how much is increased profits fro a few years and how much (if any) is just a 2021/22 spike.

Disc back to a free carry position.

[macduffy]

I'll just ride the trend for now - and await developments.

[moimoi]

Those pre 2019 memories are held with good reason. 14 years of continuous disappointment and zero dividends are difficult to erase. Leopards do not change their spots. One swallow doesn't make a spring. Misplaced euphoria by recent investors in my view. Holder since 2006....

Given your negative view why have you continued to hold through the 14 years.?

Why would you do that to yourself...are you trying to teach yourself a lesson or what.?

GLTA

[SPC]

I was waiting for that question.
It's a minor part of my portfolio these days mainly through the hard lesson it taught me not to follow the herd and the hype of IPOs and much better choices in the years that followed that made the earlier loses (eventually) irrelevant within a broader portfolio. The problem was never the technology or IP. It was as the management in my view. I paid 15c for many of these shares in the darkest hours so believe me I haven't lost.
It has been pointed out by myself and others that current fortunes seem to be founded in a competitor mishap and company comments also infur that the good luck may pass with time.
I won't be holding it forever but for the time being it'll reward my patience.
I bought it alongside FPH in the early days. These guys were never twins...

[carrom74]

Not so long ago (July) Siward sold down 10 million shares at 88 cents per share offering leading Kiwi fund managers and institutions the opportunity to invest.
Maybe one chose to invest while ACC have steadily reduced their holding in Rakon from around 7.6 million shares to the current 5.6 million.
And still no broker research.
It appears our leading brokers and fund managers have yet to exorcise memories of Rakon’s pre 2019 performances.
That is sad.
EROAD EV/EBITDA 17,SAN EV/EBITDA 14 (NZX top 50)NZX EV/EBITDA 18 (NZX top 50)

Leave alone analyst research..look how many of us actually discuss this stock in this forum(in comparison to its NZX peers)That will say a lot too. Not many companies have had such a successful and dare I say “fortunate” turnaround stories in this covid infested market!

I did ask about the analyst coverage to Bruce in the ASM couple of years ago… and the answer was the most evasive I can think of..

Disc- Holder…only just.