RAK Rakon

[emearg]

Happens to all of us. If not Rakon now, it was Rakon before. (I lost about 10c per share from 81 to 71c or so back in Sept-Oct 2011.)

The value investor in me occasionally wonders "at what price"......

Is there a best price if most of us are sure Rakon will go out of business or eventually be sold for scrap? Why buy something heading to the tip/wreckers?

[Hoop]

Happens to all of us. If not Rakon now, it was Rakon before. (I lost about 10c per share from 81 to 71c or so back in Sept-Oct 2011.)

The value investor in me occasionally wonders "at what price"......

at what price ???...yeah...for a medium term or longer investment play when a company gets a little wobbly and your wondering how long it can go on like this for in its present state with the decline of the shareprice towards your "tempting" entry price, it pays to do the Z Altman Score first ..Sometimes the result can sober you up..and you quickly move on.

[winner69]

Is there a best price if most of us are sure Rakon will go out of business or eventually be sold for scrap? Why buy something heading to the tip/wreckers?

The tip in wellington has a great recycling shop for stuff sent to the tip ..... the other day there was a huge rubbish bag full of stuffed dogs and teddys for $4 (retail price when new prob $200) ..... bought them and the dog having a great time disemboweling them one at a time

moral of story -- prob somebody will wait until rakon got the knackers yard and buying bits a bulk discount price ..... and that usually means nothing for shareholders

[janner]

You say..

$41m/194m shares = 21cps value. Getting close to that now.

STC... Apart from the educational value.. Why do you pursue this DOG ??..

LazyLarry has a few shares for sale I think.. Maybe not.. Maybe he is still averaging down.. Down..Down..

Even if it manages to turn around in the next few months... Tui Ad..

Can you not find better prospects on the NZX ??..

[janner]

No interest in buying. I can assure you of that. I like to look for deep value plays, but this is not one.

I guess you have to call it a morbid curiosity.

Also, by learning about how this company has failed and the signs to look for, I can be more alert when examining other companies, particularly as those tests would be more relevant to the kind of value investing and deep value plays I like to look for.

OK.. can go along with that explanation STC..

Morbid being the operational word.. We live and learn.. :-))

[Balance]

Best short in the market that I have seen in a long time.

Rakon has gone from leading market position to playing catch up.

This is not a sustainable position - hence, the cash bleed and now that the cash is running out, there is only one thing left to do.

Spare a thought for the institutions who bravely put $65m into Rakon at $1.10 in 2009. Then spend a minute thinking about Peter Maire 'reluctantly' selling down his shareholding in 2009 a few months before the capital raising. Interesting!

[winner69]

No interest in buying. I can assure you of that. I like to look for deep value plays, but this is not one.

I guess you have to call it a morbid curiosity.

Also, by learning about how this company has failed and the signs to look for, I can be more alert when examining other companies, particularly as those tests would be more relevant to the kind of value investing and deep value plays I like to look for.

Totally agree sparks .... one can learn heaps and gain real knowledge from examples like this .... and as we have both found out sometimes they do end up as deep value plays (your phrase)

Morbid is the right word .... even with 'good' companies ....ike I'll confess to a morbid fascination with Nuplex ..... made heaps in the mid 00's and shortly after the capital raising a few years ago ..... and knew heaps about nuplex .... but that mordid fascination has never tempted me back ..... but heck i consider myself a lot more knowlegable because of it

[Under Surveillance]

I wish I could assist with the authoring of this project, but I am suffering from writers block on my current work - "The Friends of Mark Hotchin".

I'm tied up too. My opus miniscule "Giants of New Zealand Business: Rod Petrecovic" has stalled as conflicting information needs to be resolved. Some reckon he is 5'2", others that he is exactly 5 feet, others that without built up shoes he is 4'11".

[Vaygor1]

i am wishing to write a book.
This book will be titled THE SECRETS OF MAKING A MULTI MILLION $ BUSINESS WORTHLESS.

Does anyone have contact details for RAK management( Robinson family), Rob Alloway formally ALF and the past directors of feltex.
It is important to recieve acurate and knowledgable advice for this book and I am prepared to employ all the above if they are interested in sharing their wealth of knowledge on the subject.

Nice Post Snapiti.

I think you can add GM's, CEO's, and Board Members from Foretex, Chase, and Security Bank to your list of advisors... and that guy that sent Air New Zealand into a downward spiral by sponsoring every man & his dog.

[Alz99]

All jokes aside and I have read a bit of bashing at the Robinson Family, which I care less about but Rakon still has the contract with Huawei for 5 years making components, Huawei is now the 3rd largest maker of smart phones, and lets be honest from now on 99% of phones that will go on sale will be "smart" and now Huawei claims to have the fastest phone of them all http://www.stuff.co.nz/technology/ga...est-smartphone, sounds like Rakon's components may be working well, and hopefully causes some other manufactures to look at their equipment ,surely this must count for some future for the company. no one seems to know much about the "deal between the two companies thou and all I hear is Doom