PE is about a third of "growth" stocks. Defensive balance sheet, tax losses to utilise and little impact from supply chain now. Snoopy have you done the Buffet test on this?
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PE is about a third of "growth" stocks. Defensive balance sheet, tax losses to utilise and little impact from supply chain now. Snoopy have you done the Buffet test on this?
Those guys who bought at recent crash are talking profit. Also inflation figures in US coming out tonight likely to have a negative impact on US market.
I am expecting EBITDA of $55m and NPAT $35 to $37m for the year ending March 2022. Rakon should be almost debt free by now. At PE of 12.5 and potential of growing revenue, I am happy to hold on to it. Earning per share is between 15.28 and 16.16. Assuming PE of 15 the share price would be between $2.29-2.42.
Management keep warning that the TCXO chip shortages (due to the fire at the AKM factory) is going to abate and they will return to core growth in FY23. So FY22 is likely to be the high water mark and if they do return to a more normal growth path $2.29-2.42 looks expensive, especially given the company hasn't been a consistent performing over the years. I am cautiously optimistic, but I am always minded to believe what management says.
If FY22 is the high water mark then once they cycle through the higher growth numbers and post lower PCP figures in FY23, then it is likely to drop. I have FOMO and want to buy more, but FY22 is a one-off event until its not for me.
Key question is how much of this growth is sustainable and retainable?
if you are a trader, (I'm definitely not) you could be making some healthy gains based on how much RAK is fluctuating up and down almost daily
This post on Hot Copper this morning
A shocking situation across Europe.Last edited by KiwiCheek: 24 minutes ago
I was stunned to see Germany's final admission that it now needed to urgently and massively invest in defense systems and products. Similarly, European nations across the continent are investing heavily in being able to defend themselves against agressors.
RAKON is a global company, domiciled in New Zealand, with manufacturing and sales plants based around the world. It specialises in criticial componentry for Defense and Positioning Systems, Space, 5G and Internet of Things.
This company was already one of the growth success stories and darling of the NZX over the last two years. Due to very recent events, it is now perfectly positioned for its next massive growth spurt, to be a major supplier over the coming months to all of those nations requiring its componentry. Germany alone will be spending billions to increase and power up its defense capabilities.
RAKON is a neutral company, manufacturing from a neutral company. It will be able to do a lot of good here, from a bad situation.
It's time has well and truly come.
The chip shortage is about to grow exponentially. While last time is was driven by a major fire at a competitor, this time those in the defence and space industries will be doing what Tesla has done with Lithium, going all out to secure supplies of TXCO for the BILLIONS of dollars worth of defence system orders that are coming out of Europe as we speak, with German at the head of the queue with a $210billion order of their own.
I believe we can conservatively estimate that RAKON will be SWAMPED with orders and we could even estimate what the next year look like. Off the back of the fire driven shortage, RAKON's revenues have pretty much doubled - from $25m to $50m.
It is quite poossible, that off the back hundreds of billions in new and urgent defence investment, that RAKON could double again.
Their time to enter the ASX or Nasdaq must be coming. This is easily the jewel in my portfolio. Terrible circumstances have been a silver lining for RAKON, and they have been smart enough to move fast to position themselves for it.
Having checked locations for their global manufacturing and sales sites, RAKON is perfectly placed to maximise this next wave in demand for TXCO.
Terrible times for the international community right now :(, but certainly a one off moment in history for the growth of RAKON.
In depth research on this company is surely warranted as everyone is looking at retirement villages is this next rocket labs?
they took a while to get going as well.
Defence is the future with the US , UK and AUS developing next gen technologies for defence that looks stunning stuff.
Thanks for bringing the thread onto front page. Last post was more than months ago. Surprised to see sp got stuck in mid to high 160s despite some nice upgraded guidance by the company. With their FY finishing as at end of Mar, they'll soon have good handle on the numbers and I guess market looking for confirmation of those relative to guidance.