RAK Rakon

**stoploss** · 15-01-2012, 05:36 PM

lol skydog I have it in my picks .....thinking it is ripe for somebody to have a crack at it, they would get it at a bargain price compared to a couple of years ago ...still wouldn't help those long from the cash issue over $ 5.00 !!!! .They confirmed they sold chips to the military that used them in smart weapons.However my point is and others have alluded to this on here they keep saying they are a market leader in this technology.....look how many smartphones have sold just in the past year...(apple have sold over 120 mio iphones in the past few years )If they were in this space their profit and the share price should be riding as high as the "sentiment ".
ps:RAK is/was responsible for my biggest trading loss.

**stevo1** · 19-01-2012, 11:20 AM

RAK seems to be getting a bit of volume behind the buy side and a little lift in SP

**Jaa** · 19-01-2012, 11:38 AM

Originally Posted by stoploss

They confirmed they sold chips to the military that used them in smart weapons.However my point is and others have alluded to this on here they keep saying they are a market leader in this technology.....look how many smartphones have sold just in the past year...(apple have sold over 120 mio iphones in the past few years )If they were in this space their profit and the share price should be riding as high as the "sentiment ".

I will have a go at answering this as I think it is the key to the Rakon enigma.

From what I can research on Rakon they are very good at making some of it not the best (especially after the French acquisition) frequency control devices in the world. Now for cruise missiles you need very good control or your missile misses the target or ends up in the wrong country! Likewise for space and commercial telecommunications applications.

For smart phones you are more concerned about the price/value trade off and thus all but the top models probably use frequency control technology a few years behind to save some money. If your GPS location is off by a street its no biggie. Apple with its insistence on quality hardware might be an exception to this.

This is the problem the Chinese factory was built to solve, giving Rakon product at more price points in the market. As its ramping up production now we will soon know if this strategy has been successful. Watch for % of sales to smart phones to increase.

**Jaa** · 19-01-2012, 12:32 PM

Originally Posted by SparkyTheClown

We won't know if they are supplying Apple. Most Apple components are bought through FoxConn or Pegatron, the manufacturing companies for apple products, and even then, those relationships are a closely guarded secret in terms of numbers.

FoxConn's largest factory is across the road from Rakon's new Chinese factory.

**stevo1** · 19-01-2012, 12:37 PM

Originally Posted by SparkyTheClown

We won't know if they are supplying Apple. Most Apple components are bought through FoxConn or Pegatron, the manufacturing companies for apple products, and even then, those relationships are a closely guarded secret in terms of numbers.

With the current the way it is, RAK are price takers, not price makers. Their goods aren't special enough from what I see to command a premium, and the currency wreaks havoc with their ability to undercut or enjoy good margins if their goods are unique.

Hi sparky my understanding of the RAK factory in Chengdu is that it is located in close proximity to Foxconn Apple factory.There is great secrecy surrounding Apple production etc.But by implication (production of 5mill units/month from 100000 at present) it would seem logical that they are going into apple phones and i pads
http://micgadget.com/12674/the-insid...engdu-factory/

**corlemar** · 26-01-2012, 02:10 PM

It seems the directors buys prior to Christmas could pay dividends.....30% + return since !

**moimoi** · 26-01-2012, 02:41 PM

and good on them for fronting up!!!

Its a funny old caper tho, hard to really know what has changed since December?

Pretty major lift in market sentiment offshore, Apple smashing the cover off it yesterday possibly helps the vibe, but then the NZ$ is still up...go figure.

Sell side depth looks thinner than their profit margin :-)

**golden city** · 26-01-2012, 05:28 PM

it seem to be demand comming.., someone is taking a possession or there might be good news comming?any thought on that?

**moimoi** · 26-01-2012, 06:10 PM

Rather a long bow...but who knows....the below from an article on Apples earnings....

""The company has accumulated $97.6 billion in cash and investments, money it's "actively" discussing how to use, chief financial officer Peter Oppenheimer said. That could include supply-chain investments, acquisitions or other expenditures, he said.""

http://www.nzherald.co.nz/technology...ectid=10781118