RAK Rakon

[moimoi]

Impeccable timing it would appear, your involvement seems to have been a catalyst for movement. :-)

A sliver of volume of late i see...

[Hoop]

Is this a good omen? Peter Springford, the new director, has bought $20,000 or 40,000 shares in Rakon.

http://news.iguana2.com/o-FC2EtCcgHf...ZSE/RAK/222590

Now, directors sell shares for all sorts of good reasons (and bad ones too).

But they only buy shares for one reason - they expect to make money.

Good Omen ???....Nah
Director buying is not something a shareholder should get too excited about. RAK directors also acquired in 2010 and 2011 from looking at the old News.

Classic example I will never forget was Paul Byrnes Director and Accountant with Dorchester Pacific (DPC) The share price started to tumble in 2007 .. It turned into a steep ski slope chart down from $2.40 and then it leveled out around 80c in Nov 2007 then at the end of Feb 2008 saw Byrnes enter buying at 82c .. Gee wiz a accountant buying in..WOW!!!. that has to be good news that DPC has gotten far too cheap,,,eh?...My finger hovered over the buy button and waited for the TA buy signals.....Nope..The downward spiral began again in March 2008 and Byrnes tried catching the falling knife buying in at 69c 58c 53c. Present share price 9c

[Hoop]

did he purchase them or has he been gifted them as part of his directors salary package, the notice does not say that they were purchased on market or for how much. either way more of RAK games to try and hype their stock price up before there next annoucement.

I wrote an email to the NZX a couple of years ago complaining about those notices...Suggested they added another line to distinguish whether the change of shareholding was due to a purchase, sell or conversion.
It must have been too hard for them as I never received a reply.
Maybe If we all emailed the NZX.........

[Silverlight]

I wrote an email to the NZX a couple of years ago complaining about those notices...Suggested they added another line to distinguish whether the change of shareholding was due to a purchase, sell or conversion.
It must have been too hard for them as I never received a reply.
Maybe If we all emailed the NZX.........

Hoop they aren't the NZX's notices, the MED designate the format and the sec com (now FMA) govern that the notices meet the laws requirements for disclosure, NZX do no more or less with director or SSH notices than they do with any other announcement made by a company.

[Hoop]

Hoop they aren't the NZX's notices, the MED designate the format and the sec com (now FMA) govern that the notices meet the laws requirements for disclosure, NZX do no more or less with director or SSH notices than they do with any other announcement made by a company.

Silverlight... is MED the Misery of Economic and Development?
NZX still should have replied to my email

[skydog]

I say Rakon is more like a circus. On 17 May, their spin will be along the lines of, "more competition, in a more competitive market, high HOPES for the new plant in China, and with recent declines in the NZD the future is looking brighter, blah blah, ......so roll up, roll up, 2 shares for a dollar says ring master Robinson.

[stevo1]

The universally bad press and sentiment have swayed me I'm gone this morning with a small profit.If it is as brokers are saying in the Herald then the SPO will get trashed

[skydog]

I was expecting RAK to drop like a rock when I read the article. Why only the small decline? I suppose the *&*!@ will hit the fan on Thursday. I'm only a small holder, but no one likes a loss no matter how big.

[Silverlight]

Rakon at the current price looks very good value if you can quantify their expertise in the field of crystals.

They are trading around NTA, with no value priced on any future growth, while posters over the past 6 months have been discussing their underperformance of the past 3 years, the company has announced nothing material, giving posters ammunition only to discuss poor management history, everyone knows this, and the high dollar, everyone knows this as well.

I don't understand their technology from a detail point of view, I understand their crystals go into everything GPS etc, but I don't really understand how it all works, there is so much jargon, but I do understand revenues and units sold. Their shareholders letter update in 2011 gives a good overview of telling the story, and growth in revenues, nearly $200m in revenues!

Back to the if statement, if I substitute my lack of knowledge in crystals for an experts, by looking at the many awards Rakon has won, and continues to win for their expertise in crystals, then the conclusion I get back to is an excellent entry level price. Past and continuing poor management is embedded in the current price as is the high dollar.

Rakon only need to announce some slightly positive news and the price will be back above $1, (eg disclosure of a JV, or revenues passing $200m or something out of left field).

EDIT: here is a link to the shareholder letter: http://www.rakon.com/investor/announ...2011Letter.pdf

[Catalyst]

Nothing in the Herald article was new news so I'm surpurised that people are getting their knickers in a knot. RAK signalled back in November 2011 that it's FY12 result will be below par. The company has since reiterated its FY EBITDA guidance of $14 - $18m, which corresponds to an NPAT of somewhere around $1m. Yes, a disappointing year. But the share price took much of its medicine back in November when it announced its poor half year result and its share price has bounced around the 50c price since then.

From here, I'm more interested in...
- Comments from the company about how much its new China factory will contribute to future earnings, and any comments about market performance;
- Any FY13 earnings guidance; and
- NZD performance.