RAK-Rakon

[Hectorplains]

I'd hate to see what happens when it hits hard times.

You'd only need to be looking at the share price from 2009 - 2021.

[Left Field]

Mmmmm perhaps it was the news of a Director buying 30K shares at $1.20 that pushed RAK to the top gainers leaderboard today with a 6% gain?

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RAK/399954/380457.pdf

[Left Field]

1H FY23 Results out..... on my initial read they got a yeah..nah, but after a more careful read I am happy, good progress being made and strong balance sheet.

https://www.nzx.com/announcements/402927

Highlights:
Revenue $87.2m (1H22: $85.4m)
Underlying EBITDA up 6% to $28.1m (1H22: $26.4m)
Net profit after tax $16.0m (1H22: $18.9m)
Positive earnings impact from foreign exchange gains
Sustained core market growth, particularly 5G and positioning
India expansion on track for completion early 2023

[LoungeLizard]

NP down. Negligible growth. No dividend "policy" re-iterated. Pretty underwhelming I  have to say.

[Shareguy]

Have been going over the result. My thoughts as follows

Net profit down 15 percent to $16m due to higher tax expense after accumulated NZ tax losses were fully used in FY22 . Paid $6.3m in tax this half, only $524k paid 1H22.

Both revenue and ebitda showing growth.

India factory going to plan that is going to add capacity and lower cost with NZ and France current production transferred.

New semi conductor chips to be released. 

I think the future looks very bright. $18m cash in bank with inventory to fall.  The company has never looked so attractive for a Robinson family exit in my opinion.

Current first half $.07 EPS (from accounts) so I'm picking full year of $.13 EPS which at todays close of $1.19 is a forward PE of 9.2

Some would say "cheap as chips"

[LoungeLizard]

Have been going over the result. My thoughts as follows

Net profit down 15 percent to $16m due to higher tax expense after accumulated NZ tax losses were fully used in FY22 . Paid $6.3m in tax this half, only $524k paid 1H22.

Both revenue and ebitda showing growth.

India factory going to plan that is going to add capacity and lower cost with NZ and France current production transferred.

New semi conductor chips to be released. 

I think the future looks very bright. $18m cash in bank with inventory to fall.  The company has never looked so attractive for a Robinson family exit in my opinion.

Current first half $.07 EPS (from accounts) so I'm picking full year of $.13 EPS which at todays close of $1.19 is a forward PE of 9.2

Some would say "cheap as chips"

At many points, over the past - let's say 20 years - the metrics for Rakon have looked better than they are now. Hell, they were better a year ago when the the SP was $2.20. But even in those times Rakon never delivered by way of dividend and the growth path wasn't sustained and the Sp continually crashed.

I don't see Rakon acting any differently now than they did at any point over the last 20 years. Sporadic periods of growth that are not sustained and no return to shareholders even in the so called good times.

I regard Rakon, not as a long term growth stock, but as a traders stock - buy at low points ( if you can pick them) and sell during the hyped "growth" period. But holding them for years with no return, whilst inflation erodes your capital - no thanks.

[Shareguy]

A divi or a acquisition in America?  Can understand the frustration.

As of last report Rakon had about $14m in excess working capital and inventories, which the company had signalled would be liquidated into cash, a net-cash position of $18m and its net profit from the second half of last year.

That combined, the company could have a net-cash position of close to $40m.

Can understand investors concern with the lack of dividends and in fact never paying a dividend. I'm giving them the benefit of the doubt as I'm thinking the stars are aligning for a big future payout.

The business is doing well with the new factory in India nearly complete to drive growth. New CEO who seems very switched on and very confident regarding the future. Plenty of cash not debt which is very important in these times. 

Rakon has been very good for me only because I brought plenty around the $0.20 mark years ago.  Still have a good holding that I free carry. I'm watching this decline with interest and will look to add to my position.

[Waltzing]

It could be a BB....

they always work...

[Shareguy]

Investor update

I hope you had an enjoyable holiday break and are having a good start to 2023. 
 
As the year gets underway, I want to take this opportunity to thank you for your support of Rakon and provide you with a short update on key items we'll be focusing on in the months ahead.
 
Our focus in 2023
We are a world-leading Kiwi company with cutting-edge technology and products. Within our core markets there is substantial growth potential for Rakon, and it is my job to turn that potential into reality. The months ahead are an exciting time for us as we reach key milestones in our growth plan. We have also accelerated our acquisition strategy with the aim of delivering access to new markets and technologies. More detail on these developments below. In terms of our financial strategy, we are committed to creating long-term value for our shareholders. In line with this, we will prioritise the use of cash surpluses towards capital investment in order to achieve our strategic growth objectives.
 
Acquisition plans accelerating  
We have previously communicated our intention to make strategic acquisitions that support our growth strategy. For example, we can see clear synergies in acquiring a US-based business that provides access to top-tier US customers through local manufacturing, and strengthens existing customer relationships. An acquisition of this nature could also put Rakon in a good position to benefit from the Biden Administration's initiatives to grow US-based semiconductor supply chains. We have retained Angus Cooper as our M&A advisor, who has over 25 years of public company experience and successfully led 30+ acquisitions, with a track record of delivering value to shareholders. Our M&A efforts focus on identifying companies that would complement our existing operations, provide access to new markets and technologies, and ultimately drive long-term value for our shareholders. We will provide a further update on our progress in this area at the appropriate time.
 
Game-changing new facility in India nearly complete
Construction at Rakon India's new world-class manufacturing facility in Bengaluru (Bangalore) is close to completion (see image below). We have finished the clean room facilities and have begun the process of transferring manufacturing operations from the existing site to the new facility. This new facility enhances our global position as a high-tech manufacturing leader and will provide us with a long-term competitive advantage, as well as delivering significant cost reductions for our business. Having a manufacturing presence in India continues to open doors for us, providing strong alignment with the Indian Government's 'Make in India' initiative, and our pipeline in that market is expanding rapidly. The facility is a game-changer for Rakon and sets us up for even greater success in the years to come.
EMA-IR-Jan 2023-New Year's message
 
Other key growth projects tracking well 
We are on track to achieve other milestones identified in our three-year roadmap. These key growth projects include:  
the XMEMS® nanotechnology production process – with five products currently being manufactured using this process and generating strong customer interest; 
a suite of NewSpace products for Low Earth Orbit (LEO) satellites, establishing Rakon in that ecosystem and securing our involvement aboard a planned in-orbit demonstration mission in 2023; and 
a new semiconductor chip in early 2023. In addition, we will shortly move our UK semiconductor chip development team to new offices in Cambridge, which will allow us to tap into the vibrant talent pool in the heart of the semiconductor design ecosystem in the UK.
EMA-IR-ID Nick Laurent
Rakon's new investor relations manager
Lastly, I am pleased to announce that Nick Laurent joined Rakon in late 2022 as our new Investor and Corporate Communications Manager. Nick joins us from a senior adviser role at the Commerce Commission and has a background in investor relations and stakeholder engagement gained across several in-house and agency communications roles. A key part of his role at Rakon is to engage with our shareholders, so please contact him with any questions or feedback using the details below: 
Email: nick.laurent@rakon.com
Call/Text: +64 21 240 7541  
 
Kind regards 
 
Sinan Altug 
Chief Executive Officer 
 

[Left Field]

Interesting update.

Rakon has a lot of haters (lots of fingers burned previously,) but must say I like the look of the changes underway.

Interesting times ahead?  We shall see.

(TA still in a downtrend.)

[Shareguy]

So we have a investor relations person now. Is this new position because will be busy preparing cap raise documents and fielding questions for new acquisition.

[Minimoke]

So we have a investor relations person now. Is this new position because will be busy preparing cap raise documents and fielding questions for new acquisition.

Arent they more accurately called "Spin Doctors"?

[winner (n)]

Arent they more accurately called "Spin Doctors"?

Probably discover ChatGPT

[LoungeLizard]

"In terms of our financial strategy, we are committed to creating long-term value for our shareholders. In line with this, we will prioritise the use of cash surpluses towards capital investment in order to achieve our strategic growth objectives."

In other words a continuation of the "somewhere-over-the-rainbow" strategy of the last 20 years. Meanwhile in the real world the SP is down 50% over the last 12 months, the TA looks terrible, NP declined in the last report and it's pretty clear that investors will not see any return of capital this side of hell freezing over. Glad I got out when I did.

[winner (n)]

Share price 90 cents to $2.20 and back to 90 cents

That's some ride over the last 15 months