Calm down guys. The leak, if there was one, could have easily come from the other side of the deal.
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The Chinese company, I believe, just got a great deal for themselves. An asset they got for less than half its book value plus current and future access to better technology? Not sure I would be calling them stupid!
That doesn't mean to say they didn't leak details of the deal to someone else of course, who may have interpreted the deal as a big win for Rakon who would reduce most of their debt, hence maybe thought the SP would jump up. Little did they know that we understand that you actually need assets like manufacturing hubs and better technology than your rivals to have an edge over your competition, not just low debt. Rakon just threw all those away.
The evidence to date shows Rakon to be most unreliable when it comes to providing timely and accurate information and assessments to the market and its shareholders (outside of the insiders).
Let's see what the NZX and FMA come up with.
Based upon their historical track record, don't hold your breath.
Anyone being brought to task can challenge the NZX and FMA over a few cases where they chose to look the other way and not take action.
And Rakon appears to continue to be an old boys club:
https://www.nzx.com/companies/RAK/announcements/238681
Am quite amazed that they don't have a single woman in their upper management! Maybe they should think about getting some female directors and listening to them? They sure as hell aren't doing anything right with all the boys on board at the moment... maybe even a female Robinson???
Brilliant PT
maybe for a dog of a company this sort of board make up would work .... and a women as well
Think it came from the New Yorker
Chairman buys shares:
https://www.nzx.com/companies/RAK/announcements/238829
With insider trading possibly going on, maybe it is a good time to buy? No wait, that makes it the worst time to buy!
Aren't these the first shares the Robinsons have bought in a long time? It's tempting to believe, if there weren't insider trading claims, that they believe the price has bottomed out and there is some positive results coming. But thats just wilful dreaming I think.
Does NZX have regulation regarding minimum holding period for the directors between buy and sale?
All rules regarding trading by directors specifically are in the Securities Act, and internal policies by each individual company, that are usually designed to protect the company from rogue director trading.
In the act there are no minimum holding periods, however a company may internally have a policy of X amount of days.
I think it's spelt Robbin'sons
How those idiots can manage a public listed company!!!! shocking.
lolz @ you two ;)
Given the usual detailed analysis we have come to expect on nz start ups you can count me in on the basis of the above posts.
Why did they undertake to sell the shares.........?
Could they not simply gift the "in breach of takeovers code" purchases to Staff (maybe even some of the folk recently laid off) or a Charity...? Who knows, they may even be worth something by Christmas. Such actions could of received some positive publicity even.
Mind you, given the tone of posts on here someone will be soon to suggest that they couldn't give them away i suppose... lol.
NBR's take on this inglorious shambles is at :
http://www.nbr.co.nz/article/nzx-den...sale-dw-144517
The Robinsons are soon to see a large chunk of their remaining $50 million evaporate.
So this is for you Moosie...you can sing along as you wield your hammer:scared:
And here's to you, Mrs. Robinson
Jesus loves you more than you will know wo wo wo
God bless you please, Mrs. Robinson
Heaven holds a place for those who pray
Hey hey hey, hey hey hey
Read more: Simon And Garfunkel - Mrs Robinson Lyrics | MetroLyrics
you should buy some CRP or AOR shares.... free beer and wine over a 3 hour period at their AGM this year. Must say I was a little sozzled at 8pm!
If you took a partner to the AGM you would only have to eat half as many sausage rolls.
When I used to go to AGM's there seemed to be lots of old couples together, most of them probably didn't both own shares.
Rakon threaten to close factory if they don't get their way.
from what I am reading the factory is a waste of time and money. It also tells me they lied to the public on its performance by saying it was at full capacity.
what kind of idiots run this business.
Scathing commentary from the Shareholder's Association yesterday. At the upcoming AGM they will be voting against the re-appointments of Darren Robinson and Bryan Mogridge but for new Director Herb Hunt.
Ah, but have they read Rakon's review where Mr Bryan 'George Kerr lackey' Mogridge declared that 'Rakon's strength is in our ability to adapt to change'?
It is sad to see a person like Mogridge sink to the depths of haplessness he has - something has gone seriously wrong with this guy - he was such an outstanding executive when he was at Montana.
trainwreck...$500M shareholder wealth destroyed and counting.
I reckon you guys are being way too hard on the RAK guys. Surely you can't have forgotten the high regard in which Brent Robinson, for one, is held by the captains of commerce. Less than 12 months ago Brent was a finalist in the prestigious NZ Entrepreneur of the Year bun fight sponsored by Ernst and Young.
How can he do that with his tongue firmly in his cheek ??
I would think about it at 5 cents. Their real asset worth must be 10c at least... well hopefully... but at that point I would try and get the rest of the shareholders to try and wind up the company! Sorry to the workers their but get out while you can!
What I don't get about Mogridges "No need to chop and change" rhetoric is that they just chopped and changed their Chinese move. Not long ago they were saying how moving into China was going to give them more profit, more products more more more. No, let's chop and change that to say how China is now weighing us down and selling it a couple of years later for less than we made it for is a good idea.
So who is chopping and changing?
The Grant Samuel report advises total investment to date in Chengdu of NZ$55M and attempts to lay the impending catastrophic losses about to be worn by shareholders at the recent devaluation of the Yen against the US$.
It also notes however that management believes a further US$25M in capital expenditure and an additional US$20M in operational expenditure is required to get the factory fully fitted out.
Go back to the capital raising in September 2009, and it appears shareholders that were relying on publicly available information, were not informed that the the cost of the Chinese Venture was expected to be in excess of NZ$100M.
So while the Yen aspect could be regarded as a recent factor, the primary factor it seems is a woeful assessment by management of the cost of the venture.
What stops the products of the 3 remaining arms of the business from being commoditised just as the SWD segment has...?
US$45M estimated by RAK, is potentially required to get the factory thru to break even position operationally.
The problem in a nutshell is that while the machinery in the factory is operating at close to 100% of capacity, only 20% of the factory is being utilised and RAK doesn't have the dough to put in more machines.
It seems Chengdu is one of surely only a few large cities in the world, where a brand spanking 12,000 sqm state of the art factory, is worth less than half of what you paid to build it, once its complete. Go figure...
Sounds like the management made misleading statements "this is about to operate at 100% capacity ". I remember reading this from one of their press releases. It should of read: operating at 100% in a small corner of the factory. We have room for 10 times more machines.
A full year loss of 32 million, selling assets to not go into debt, a clear cash cow for the people running it... how long has it got?
Their assets = 124 million, though this includes 23 of non tangibles, so 100 million. Yet they are perfectly OK selling stuff for half its declared value, which makes me think the value on their paper is probably half actual value. So maybe this should be 50 million? This is 26c per share. Losses of 32 million a year, which means they could probably keep the company going for another year, by selling off some more stuff (which they will clearly do). End of 2014 this puppy will be wound up?
just got a mention on channel 3 business news report by Nick Tuffy. Said they were going to make a loss for FY 14 but expected to be back in profit for FY 15 after the restructuring....
Hmmmm yes I guess he couldnt really say anything else on the news.
Our mate Mogridge reported as saying "becoming a market darling was often the kiss of death"
Some would say having Mogridge. As Chairman is the "kiss of death"
Wow, Rakon got signoff from the majority that selling their Chinese plant is OK!
https://www.nzx.com/companies/RAK/announcements/240905
Big surprise when the majority have Robinson as their last names (either directly or through Trusts). I think that's right isn't it? The Robinsons own rougly 40% directly then there is another 20% owned by a trust they control? Wait, am I just making this up or did I read this somewhere?
NBR reporting yesterday that documents relating to the sale of the Chinese factory has been held up by customs in China, "causing the timing to conclude the deal a little tight now".
Are the Chinese getting cold feet and if so, what does it mean for RAK ? The banks may not be happy if the sale doesn't go through !
Rakon is a babe in the woods when it comes to doing deals in China.
What ever happened with the Huawei deal which was going to quadruple sales for Rakon?
RAK
20/08/2012 08:30
GENERAL
REL: 0830 HRS Rakon Limited
GENERAL: RAK: Rakon & Huawei Technology Partnership
Technology company Rakon (RAK) will today sign a letter of intent with
Chinese Huawei Technologies Co. Ltd. The deal targets a quadrupling of
Rakon's sales to Huawei over the next five years to USD56 million.
Rakon's product range, advanced technology and competitiveness were
significant factors for Huawei, who will use the company's frequency control
products in its handsets, smart devices and infrastructure programmes.
As snapiti said above, me thinks they have something to hide, and they did:
http://www.stuff.co.nz/business/indu...ing-disturbing
Interesting to read the Rakon site top 20 holders, one of which is HLR Holdings Company Ltd, which I cannot find on the Companies Office Register. Oddly enough though, a google shows the address as 1 Pacific Rise, which looks likes it's right next door to RAK... bit hard to see, it's (hiding) behind the trees!
Directors selling at these low levels, not a good sign at all.
The Robinson Trust sold 50k shares for just $10k, still hold over 10m, they can't be that hard up for cash can they?
Haha now they are comparing there position with ibm...bunch of dreamers.
Beat me to it goldfish
Yes they say they are in a similar position to what IBM once was and looked what happened to them
It must be a buy buy buy now while the sp is so low, won't see 20 cents again!
Why are ppl still buying rakon shares?? :SSS
Well my guess would be ..
1. They do not read this Forum.
2. They are mostly " Newbies " Looking for a quick buck.
3. Robinson's ( or " Friends " ) desperately holding the price up with such low numbers being traded.
Just be grateful baller18 that you have had the good sense to be on here ..
As you walk away shaking your head in disbelief.. :-))
Maybe they are Mogridge followers
After all PGC is 50% of its lows
Maybe think that RAK can follow and get to 36 as well
Here is yet another article regarding this bunch of peewits... 3news this time. Rakon's impudence is unbelievable. The share trades were illegal and they neither bought no sold any except to each other from what I can tell. Then in their statement, Rakon say "The off-market purchases reflect the confidence of each in the company's current position and prospects and are a signal to investors of their continued commitment to the company".
I can't find the words to describe my negative opinions on the Robinsons and the entire board to any degree of satisfaction without resorting to swearing.
http://www.3news.co.nz/Rakons-Robins...9/Default.aspx
An absurd aspect is that the Robinsons offloaded shares to "independent" director Irvine in an off-market transaction. If Irvine genuinely was independent he not have had a bar of that. After 8 years as a lickspittle on the RAK board, Irvine clearly is past caring who sees he is not independent in the slightest.
And... he was appointed a mere 16 months ago, according to the companies register. Maybe he is very wise.
and the latest, no surprise:
Equity Transfer Agreement - Settlement & Completion
8:52am, 30 Sep 2013 | ASSET
30 SEPTEMBER 2013 (RAK)
RAKON & ECEC EQUITY TRANSFER AGREEMENT – SETTLEMENT & COMPLETION
Further to Rakon Limited’s (NZX:RAK) announcement on 13 August 2013 in relation to the ECEC Equity Transfer Agreement, Rakon advises that settlement & completion is now expected to take place during October 2013.
The previously expected completion date of 30 September 2013 relied on the timely processing of approvals through a number of Chinese regulatory authorities. The delay is simply a result of moving timelines associated with a number of agencies approving a transaction in China, rather than any specific approval issue or change in commitment from either of the parties. Rakon will advise on the completion outcome during October.
-ends
Hmmm...The ability to repay a large portion of the companies debt courtesy of ECEC has left the market unmoved..
I wonder how that "intention" to purchase a stake of up to 5% of Rakon's shares on-market is coming along...?
RAK one of the stars of the NZX today ... up 10%
The euphoria from XRO and PEB must be spreading .... nothing can go wrong
RAK to double in next few weeks .... you never know
double down chance better than double up i guessed
No news but I do have some ANAGRAMS.
Warren Robinson = Err owns no brain.
Simon Bosley = Noise symbol.
Bryan Mogridge = Grim danger boy.
Bruce Robertson Irvine = Verb: Rob in intercourse.
Darren Robinson = Droner, no brains.
Brent Robinson = No Sir, born bent.
Peter Springford = Ferret droppings.
Peter Maire = Perimeter 'A'.
Herbie Hunt = Burn it, hehe