lol, you read me. Bal.
a LOI with a China company is mean nothing.
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quoted from comments on NBA:
"#13 by Anonymous3 hours agoin reply to AnonymousPoor Lindsay
You obviously have not dealt with people in the real world. LOI in Asia is nothing. Everyone can write a LOI. LOI to the buyer = more free lunches, more free drinks, more free dinners, more free trips and last but not least, more price negotiation (aka cheaper pricing). That price of 56m might turn to half or less. remember, that is revenue, and then what about the cost?"
56 million headline figure means little.
Its profits that are needed
Today's announcement:
Reflecting on overall market conditions, Rakon expects FY13 EBITDA to be ahead of FY12 with a likely EBITDA range of NZ$14 to NZ$16 million. “If we achieve the midpoint of that range it will be an 18% increase in profit over last year,” Mr Robinson said. -ends-More information:
Graham Leaming
Rakon 09 571 9202
www.rakon.com
so i think FY2013 NPAT could be still red.
mmm, NPAT won't look too flash this year either.
EBITDA = $15m midpoint of $14 - $16m guidance
less dep'n = $11m say vs $10.1m last year
less interest = $1m
less tax = $1m
NPAT = $2m
FYI, based on today's guidance figures and 47c share price, RAK is currently trading on forward multiples of:
PE = 47c / ($2m/191m shares) = 45.8x
EV/EBITDA = (191m shares x 47c + $21m net debt) / $15m EBITDA = 7.4x
and now updated for current share price of 39c....
PE = 39c / ($2m/191m shares) = 38.0x
EV/EBITDA = (191m shares x 39c + $21m net debt) / $15m EBITDA = 6.4x