Originally Posted by
SPC
I've owned RAK since the IPO days around 2006 when the family went public around $1.50 thereabouts. The family kept a large chunk in the family. It wasn't their fault nor very helpful that the 'market' saw things that were never there and the share price went on an insane trajectory to around $5. It sank to around 15c over the following years due to hopes and dreams that never materialised, currency management issues, rapid commodisation of specialist products, forays into offshore manufacturing ventures that didn't work out and just a general inability to make consistent profits and offer external shareholders any return for the risk. It should never have listed.
IMO from the get go the Board wasn't sufficiently independent or broad enough in global business experience to challenge the direction of the business and executive thinking (family weighted) and the results have been evident.
No question that the intellectual property is first rate but in the end it's about making money. So after 16 years we begin to see signs of hope... apparently built on the backs of a competitor mishap (fire).. hmmmm ..and we are told that this bit of luck will be transitory. Is this really a moment of great pride?.
Owning RAK has taught me a lot about investment. I still own it but the experience gained was used to cover my losses with better investments in better companies.
Good luck with the next leap forward in SP but I figure to most it's just a trade now.