Moosie, did you just tell turmeric to go and buy SUM POT? Well I suppose it might help him forget about the beating he took on RakCon...
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Moosie, did you just tell turmeric to go and buy SUM POT? Well I suppose it might help him forget about the beating he took on RakCon...
Yep, if you are losing money from your current products, and you make/sell more of them, you lose more money.
Rakon needs to announce they have negotiated new prices for better margins. Announcements of new deals just make their bottom line worse otherwise. Not reporting this to the market... Isn't that a breach of NZX terms though?
We've all been there Turmeric..some times they can be deep dark evil investment places too...the good news is you learn from your mistakes the bad news is you will create new ways of making mistakes....so over time when you become an experienced investor you have to find more creative ways to keep making mistakes and due to that extra knowledge from experience it is amazing how you can keep on finding ways.. :):(:mad ;:
After 37 years of investing..and bombing out on the expected dead cat bounce with RAK I found yet another way to lose money on Tuesday... I dipped my toes back into FBU at 8.71 ..today just 3 days later it's 8.15 and $1120 poorer down 6.3%..I'm shaking head thinking .."your timing sucks Hoop, you idiot"
But its the good decisions you make that gets you there in the end ...its the SUM RYM, found STU at the bottom and rode it up ...bought into uptrends etc etc.
chin up ..Tally ho ..Spray and walk away ...up up and away.... :)
Hoop
Where to from here?
Predictions for quotes on Thursdays meeting? My prediction:
"The mobile market is growing hugely and we are part of it."
"The high NZ currency is the entire problem and that is completely out of our control."
"We have potential new customers in the pipeline and a healthy balance sheet."
"This year we made a $4 million loss, but none of this is under our control."
"We anticipate a $10 million profit for next year."
"We now have 6 months of stock on hand (up from 3 months last year), which is why our Assets part is looking huge. This is "standard industry practice" and will see us through times of high demand."
The reality:
"The mobile market is growing hugely, but we aren't part of the growth."
"The high NZ currency is manageable for almost everyone else except us who couldn't manage our way out of a paper bag."
"The same customers will place bigger orders from us but pay less for our goods. Essentially, we will be paying them to take our goods. 'PLEASE take our goods for less than we make them' is our new company sales pitch. Our balance sheet is full of dreamed up numbers, particularly for the Assets section. We completely ignored the actual value of our Assets that our auditors gave us and just put a number we liked to see in there."
"We will revise this to $6 million profit in 2 months, $4 million profit in 5 months and a $2 million loss in 8 months. In 12 months we report an $8 million loss, but because none of that was in our control and we (the Robinsons) still got $2 million in profits from the company still operating, we don't care."
"We make lots more things than we can sell. We put this in the Assets section of our balance sheet to pump it up a bit."
So basically the same stuff, different year. Too easy to predict!
Rakon shares are probably double the price they should, that's my prediction...
Bryan Mogridge will put in his usual bravado act - "we are listening and we are responding. Give us time and it's so sad most of you out there have no appreciation of how hard we work for you all. A word here on George Kerr, another misunderstood individual whose company, PGC, I chair. George is an outstanding individual whose deeds will one day be recognized for what they are - selfless acts to improve the lot of all shareholders. Of course he has to take care of No 1 first before he can do that. And I, Bryan Mogridge, will stand shoulder to shoulder with him and the Robinsons, to make sure all of you benefit from the great potential of the businesses in future."
From September 2012 : "Over the past year we have received a lot of criticism and advice about the performance of Rakon, from shareholders, commentators and the shareholders association. Some of it is helpful but a large percentage is not and often reflects a serious misunderstanding about the business that we own together and what it does, what its strategies are and the potential that it has."
And if he was 10% of the man he was when he managed CIL/Montana, he will launch a takeover bid at NTA and show the world what he is made of.
Sadly, he is but a shadow now - a man whose good name and reputation have been squandered by his association with Rakon and PGC.
Thanks for the feedback, I expect the SP is not going anywhere near where it was at the peak soon. Will continue to hold, at this price it's not really worthwhile selling and realising the loss.