Rakon Brings a Dividend
Rakon reported strong results today but the pièce de résistance was its dividend of 1.5c per share (roughly ~1.5% gross). We called for a dividend in our initiation of coverage on the company and we’re buoyed that management listened – we think this is crucial to unlocking shareholder value and valuing the stock at a multiple on par with its international peers. Noting good growth in the 5G space alongside its position business, posting double-digit growth on both fronts. Expecting FY23 
27M of EBITDA or thereabouts – management hinted at a tightening market; we’re interested to see how this plays out. Interesting parallel with Apple’s Broadcom deal today - onshoring is a theme and RAK is positioning to do well from it.
EROAD reported a fairly poor result. Lots of rhetoric like “management executes new plan” but EBIT is still sitting at negative 4.5M in spite of ~165.M of revenue. We note extremely high wage & admin cost is the culprit here: 57.5M spent on wages and 41.M spent on admin cost – admin cost almost doubled from the year previous.
We think management owes an explanation for this cash burn – the promise of SaaS is high margins and recurring revenue; EROAD’s management seems not to have got the memo. Read more at research.blackbull.com
27M of EBITDA or thereabouts – management hinted at a tightening market; we’re interested to see how this plays out. Interesting parallel with Apple’s Broadcom deal today - onshoring is a theme and RAK is positioning to do well from it.EROAD reported a fairly poor result. Lots of rhetoric like “management executes new plan” but EBIT is still sitting at negative 4.5M in spite of ~165.M of revenue. We note extremely high wage & admin cost is the culprit here: 57.5M spent on wages and 41.M spent on admin cost – admin cost almost doubled from the year previous.
We think management owes an explanation for this cash burn – the promise of SaaS is high margins and recurring revenue; EROAD’s management seems not to have got the memo. Read more at research.blackbull.com
Import the BlackBull Markets Economic Calendar:
blackbull.com/en/economic-calendar/?utm_source=tradingview
Free TradingView Premium with BlackBull Markets: blackbull.com/en/platforms/tradingview/?utm_source=tradingview
blackbull.com/en/economic-calendar/?utm_source=tradingview
Free TradingView Premium with BlackBull Markets: blackbull.com/en/platforms/tradingview/?utm_source=tradingview
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.