RAK Rakon

[Zaphod]

Rakon doesn't have the capacity to make enough chips for the flagship Apple and Samsung devices. look up the capacity of the chengdu facility where Rakon makes it's smart wireless devices IC's. It's in the annual reports.

I agree that Rakon don't have the manufacturing capacity, but they could have catered for third or perhaps second tier manufacturers and with a secured order invested back into expansion of their facilities. Unfortunately they missed the proverbial boat.

[Balance]

Forsyth Barr have just announced they are discontinuing coverage for Rakon, along with Colonial Motors and NZ Windfarms.

I don't see this is as a positive...

Forbar is trying to distance itself from the bad investment recommendation they had on Rakon for a while. They even invited Rakon to their investment day last year to present to their clients. Sp then was over $1.

Making the bad investment recommendation is life - can't get them all right. But to discontinue research is irresponsible as there are many clients of theirs now stuck in the stock?

Expect selling to come out.

[winner69]

Hey minx ....that was a good post this morning and I was going to reply ....but you have deleted it

[winner69]

Rakon is a very interesting and complicated business with an even more complicated security resting on top of it. It seems to me that over the past few years Rakon has focused on building a stable global platform rather than on delivering maximum earnings to shareholders. While they focused on building this kind of global currency hedge, their shareholders, who understandably couldn't understand a 3 year wait for a turnaround, systematically abandoned them.

This shareholder abandonment removed 90% of shareholder value over the past 5 years and became a self-fulfilling prophesy of continuing declines as very dissatisfied shareholders fed on each other's negative emotions in posts on this website and others. This is to be expected and it is part of the emotional market cycle in all markets throughout the world.

Attachment 4182

One of the strongest criticisms has been that of nepotism and incompetence within the Robinson family and that family's over-representation on Rakon's board of directors. To answer this accusation, the directors have brought two new independent directors onto the board this year. In addition they have noted the fact that those family members own 23% of the company and have a very strong desire to see improvement in the share price. The result of this announcement was the September spike in share price and the beginning of an upward trend in RAK.

It will be obvious from a look at the one year or 5 year chart that Rakon has formed a solid base at 46cps over the past month. From the annual reports it can be seen that the company has built up the kind of reputation for quality and innovation that will allow it to evolve and supply advanced communication devices well into the future. Right now Rakon has come off it's darkest days and is stable at a bargain basement price which will easily reward future long-term minded shareholders with a 500% return on investment as it returns to a price of $2/share over the next two years.

Selling RAK at this price is daft, and yet there are still willing sellers. RAK at 46cps is the opportunity of a lifetime.

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Always believed this is how market emotions work ..... except RAK seems to be an exception when you plot their shareprice as an overlay. Apologies for it being a bit rough but freehand .... and i seem to have it in an uptrend as well

[janner]

Odd indeed Sparky.. !!!..

" there are still willing sellers. RAK at 46cps is the opportunity of a lifetime. "..

Where have I heard that before ???.

Your not Nigerian are you mknz ??.. Where do I send my bank account number ??..


Still able to buy at

[lowrolling]

Forsyth Barr have just announced they are discontinuing coverage for Rakon, along with Colonial Motors and NZ Windfarms.

I don't see this is as a positive...

FNZC are still covering

[mknz]

I'm so glad to be infamous. Please note that the EUR/USD has traded at 9% less than 2011 levels throughout 2012. Also note that Rakon's trading currency is USD and that the high reliability products, amounting to 25% of EBITDA, are sold in Euros.

Snapiti and Sparky are permabears who bought at the top and imagine that they can talk a decent company down to 0.00 using their hurt feelings. Just look at the long term chart and the base is obvious.

[mknz]

I just have difficulty in reconciling your comments about this being a great long term opportunity in your post on 17/10 at 11:20am about Rakon making great long term decisions, and your describing Rakon on 16/10 at 6:05pm as an opportunity of a lifetime, with your desire to take profits on the company on or after the results on November 15.

You are prepared to take profits at a price which suggests a short term spike rather than making the most of an opportunity of a lifetime based on great long term decisions by the company's management.

I'll owe you a favor if you stop saying "opportunity of a lifetime." ugg, I wish I never used that expression. I believe Rakon has turned a corner and that it should trade around 80cps for the the next year and then start to really grow after that once the EU decides on a course of action and global markets adjust to whatever the new normal is. I have an exit point because I'm not Warren Buffet and my account is small enough to move around.

[Hoop]

1. I wonder what ACC paid for them originally and,
2. What took them so long to start selling their holdings down?

I looked up the Announcements and can't see any ACC involvement at all.
AMP has been actively selling down with announcements the last couple of days.

Interesting study of AMP Capital Investors (NZ).Ltd...They hit a dud with RAK.
From the Announcement history it seems they entered into Rakon at end of July 2009 when the price was $1.40....It was as high as $5.60 2 years previous but it had been a down hill ski slope since then. it had reached 70cents in March 2009 and then rallied back up to 1.60 and formed a bearish double top and that when the announcements said AMP jumped in. It looked good until it topped 1.60 again (now a more bearish triple top) and it fell for a year until it bottomed around 85c in mid jun2010...A stroke of genius here as AMP bought 5.22M more at the bottom...and sold some at the top ...and then it happened ..another buy in at a triple top...
From the announcement history a rough estimate puts their investment at a unrealised loss of -$11.9M... their RAK shares would have to jump up to $1.70 to break even.
.................................................. .................................................. .................................................. .................................................. .................................................

AMP Capital Investors (NZ) Ltd. Investment into Rakon (RAK)

Disclaimer:....Rough calculation on NZX announcements...so not accurate.

Date this disclosure made: 31 July 2009
7,074,575....$1.40................................ ....$9,904,405

Date this disclosure made: 29 June 2010.....$5,222,074.....$15,126,479
13,008,751....$0.88......

Date this disclosure made: 16 December 2010.................,,,,,,,,,,,,....sold $2,158,205
11,132,051....$1.15

Date this disclosure made: 1 April 2011.......7,812,891.......$22,939,370
18,107,847....$1.12

Date this disclosure made: 4 August 2011........................................sold $1,785,465
16,187,992....$0.93

Date this disclosure made: 5 January 2012.......................................sold $961,358
14,226,036....$0.49

The sale of 1,918,560 shares between 5/01/2012..............................sold $959,280
and 15/06/2012
12,307,476.....Av $0.50

Date this disclosure made: 31 October 2012......................................Sold $1,135,433
9,604,064 ....$0.42.

Sale of 285,550 shares on 31/10/2012.............................................S old $119,931

9,318,564 remaining shares.....$0.42 ...unrealised present value $3,913,796

Amount spent into Rakon $22,939,370
Amount realised..............$ 7,119,672
Total..............................$15,819,698
Unrealised value..............$ 3,913,796
Unrealised Loss .............($11,905,902)

[Stu]

1. I wonder what ACC paid for them originally and,
2. What took them so long to start selling their holdings down?

more pertinent questions would be:
1. has anyone ever met the organ banks from ACC
2. is ACC selling a buy signal