RAK Rakon

[Walter]

No I disagree. This co. has produced zilch for shareholders since listing. Retaining earnings simply keeps money in the bank for executive and director remuneration.
They should distribute profits to shareholders and take accountability in the lean years and take personal responsibility.
Robinson family have made a good living from this business and as retirement inevitably looms they'll probably find a buyer and disappear. It should never have listed.
The market is showing its contempt today.
Maybe next year.....maybe next year...maybe and on and one it goes.

It's been steadily adding value for four or five years now. There was nothing stopping a shareholder averaging down and buying at 15, 20 or 30 cents. They have been so profitable recently that all of their NZ tax losses have been used up. That said, it's a shame that they didn't offer a token dividend - say 0.5 cents a share. There are some fund managers that will not buy in without a dividend.

[LoungeLizzard]

Strange to see the SP tank today - down by nearly 7% - on the back of record profits, margins, strengthened balanced sheet, continuing demand etc etc. The Directors need to pause before they lift their champagne glasses and give some thought about their decision not to pay any dividend. It seems the market didn't like hearing the echo of Rakons past self-serving management. I haver to agree. I get the argument that they need to invest profits back into the business but really - all of it? Could they not have paid even 2-3c out of that 23m surplus cash? They operate in a forward ordering environment so they must have a pretty good idea about the immediate future of the business, so the question remains about their dividend policy - if not now, then when? Why not set the bar low at 30-40% of net profits? Why do they feel the need to decide each year whether they can pay or not? Where is the certainty for shareholders in that? What is the criteria for paying a dividend - seems like it is just a vague unspecified notion of how the business is going. Not good enough.
Rakon still seems to find it hard to operate as a publicly funded business, with responsibilities to its shareholders. If they want to keep profits in the business or in fat salaries to themselves, then de-list. They have along history of wanting their cake and eat it too. They won't attract institutional investors - or indeed any investor - if they continue in this vein.
disc. disgruntled holder.

[Beagle]

I totally get where you are coming from LoungeLizzard. I won't invest in any company that makes good earnings but won't at least pay a reasonable portion out to shareholders. All such companies are on this Dog's banned list.

[Rawz]

NZs love affair for dividends is real

[winner69]

NZs love affair for dividends is real

A love affair that isn’t good for the markets …..better off letting the likes of Rakon reinvesting it for more growth.

If punters want a divie buy an utility or something …..even retailers aren’t too bad at that game.

I’ve never understood what so many love divies as much as they do.

[moimoi]

Unless your in the top 175 shareholders then whats a 2c dividend gonna do..?

Probably Sweet FA.

They just told you they are making 56% gross margins on some products so let them continue to do so and all holders will be well rewarded.

They haven't paid a dividend since listing in 2006...if your still hanging in here praying for a dividend then your next call needs to be to your parents and you can bleat to them about growing up in a bedroom with lead paint on the walls.

Wanting dividends?...your in the wrong stock.!

Given the environment fantastic results today. Big up's to the NZ team re-purposing old machines to get the large IOT order out from design to shipping in 3 months.

Classy outfit, misunderstood, as evidenced by some of the bleating on here.

GLTA.

[LoungeLizzard]

A love affair that isn’t good for the markets …..better off letting the likes of Rakon reinvesting it for more growth.

If punters want a divie buy an utility or something …..even retailers aren’t too bad at that game.

I’ve never understood what so many love divies as much as they do.

You will know, or should, Rakon's chequered history when its comes to "reinvesting for growth." I wasn't an investor back when it listed but some lost their shirts in believing Rakon's growth strategy. The only thing that grew was the Robinson'a bank account and shareholders ulcers.
Which is why, this time around, the Directors had an opportunity to break from the past and put shareholders first. They instead are asking them to believe in yet enough growth strategy, with no fixed date or criteria for paying dividends. Based on their repeated record earnings and prospects for further earnings yet, a small dividend was warranted. It isn't even so much about the actual amount - as I say a nominal amount would have sufficed - more about a confirmation that a change in management culture and attitude has bedded in. I have my doubts now. Tread carefully with this one.

[LoungeLizzard]

You're cool with no divvies and the SP continuing to slide? Interesting investment strategy. But hey, don't worry, be happy

[Walter]

By reinvesting in the opportunities they see they are putting shareholders first. That said, I think they should have offered a small dividend with a dividend reinvestment option.

[Rawz]

Unless your in the top 175 shareholders then whats a 2c dividend gonna do..?

Probably Sweet FA.

They just told you they are making 56% gross margins on some products so let them continue to do so and all holders will be well rewarded.

They haven't paid a dividend since listing in 2006...if your still hanging in here praying for a dividend then your next call needs to be to your parents and you can bleat to them about growing up in a bedroom with lead paint on the walls.

Wanting dividends?...your in the wrong stock.!

Given the environment fantastic results today. Big up's to the NZ team re-purposing old machines to get the large IOT order out from design to shipping in 3 months.

Classy outfit, misunderstood, as evidenced by some of the bleating on here.

GLTA.

Well said.. exactly how I see it