RAK Rakon

[Master98]

Sadly, a LOI with a China company is not worth the paper it is written on - I think that is what Master98 is referring to.

lol, you read me. Bal.
a LOI with a China company is mean nothing.

[Balance]

lol, you read me. Bal.
a LOI with a China company is mean nothing.

Good PR spin though? Someone paid 53 cents this morning and now the sellers are piling up at 50 cents and sp just fell back to 49 cents.

[Master98]

Good PR spin though? Someone paid 53 cents this morning and now the sellers are piling up at 50 cents.

RAKON are very good at such promotion

[Master98]

quoted from comments on NBA:

"#13 by Anonymous3 hours agoin reply to AnonymousPoor Lindsay
You obviously have not dealt with people in the real world. LOI in Asia is nothing. Everyone can write a LOI. LOI to the buyer = more free lunches, more free drinks, more free dinners, more free trips and last but not least, more price negotiation (aka cheaper pricing). That price of 56m might turn to half or less. remember, that is revenue, and then what about the cost?"

[ratkin]

56 million headline figure means little.

Its profits that are needed

[Balance]

Good PR spin though? Someone paid 53 cents this morning and now the sellers are piling up at 50 cents and sp just fell back to 49 cents.

47 cents now heading back towards 42 cents?

Those who paid 53 cents have been 'mogridged'!

[Master98]

Today's announcement:

Reflecting on overall market conditions, Rakon expects FY13 EBITDA to be ahead of FY12 with a likely EBITDA range of NZ$14 to NZ$16 million. “If we achieve the midpoint of that range it will be an 18% increase in profit over last year,” Mr Robinson said. -ends-More information:
Graham Leaming
Rakon 09 571 9202
www.rakon.com


so i think FY2013 NPAT could be still red.

[Catalyst]

mmm, NPAT won't look too flash this year either.

EBITDA = $15m midpoint of $14 - $16m guidance
less dep'n = $11m say vs $10.1m last year
less interest = $1m
less tax = $1m
NPAT = $2m

[Catalyst]

FYI, based on today's guidance figures and 47c share price, RAK is currently trading on forward multiples of:

PE = 47c / ($2m/191m shares) = 45.8x
EV/EBITDA = (191m shares x 47c + $21m net debt) / $15m EBITDA = 7.4x

and now updated for current share price of 39c....

PE = 39c / ($2m/191m shares) = 38.0x
EV/EBITDA = (191m shares x 39c + $21m net debt) / $15m EBITDA = 6.4x

[Master98]

FYI, based on today's guidance figures and 47c share price, RAK is currently trading on forward multiples of:

PE = 47c / ($2m/191m shares) = 45.8x
EV/EBITDA = (191m shares x 47c + $21m net debt) / $15m EBITDA = 7.4x

and now updated for current share price of 39c....

PE = 39c / ($2m/191m shares) = 38.0x
EV/EBITDA = (191m shares x 39c + $21m net debt) / $15m EBITDA = 6.4x

APPLE PE is 15.57, so RAKON is more vauleable