Rakon Daily 5 Wave projectionRakon NZ
Possible 5 wave cluster levels close to longer term demand level
Will be buying when it gets between 0.48-0.42c
Fibonacci projection clusters are there and long term demand level
RAK trade ideas
Rakon NZ long term buying level approachingRakon Monthly chart
I'm currently looking at long term investments to hold for years, and noticed this one
Current price is $0.80, but I think it could easily fall to $0.41c
Downside $0.42c
Dividend ~ ~5% at that price level
Potential capital gain, 300% gain is pretty easy to get to $1.20, the all time high was $5.80
Could easily hold for a couple of years sell half and make 100%+ on your original money and still own some shares
The upside with volatile stocks like this is that there are very few real support or resistance levels on the chart i.e. big bars... these can easily get blown through both ways as there are no major order pools there that take time to fill
See what happens but its on my watchlist with price alerts set
Rakon Brings a DividendRakon 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 FWB: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
Rakon: Worth +$1.40; Management should institute a dividend Rakon is a NZ based manufacturer of frequency control chips which enable data transmission, particularly for satellites and the communications industry as a whole. The company forecasts HKEX:40 -43M of EBITDA for the FY23 and trades around 8x earnings. We think the company looks materially undervalued at 8x earnings, largely because the board has not declared a dividend – we think a declared dividend would act as a catalyst that sees the stock re-rate to ~$1.10-1.40 per share. The catalyst is the company instituting a dividend – this is something that shareholders have been advocating for since at least 2020. Mike Daniel who owns 5.7% of the company is strongly advocating for a dividend – a 20% dividend would amount to less than $4M of est.$19.8M TPP – we agree with Daniel & other shareholders here – it seems questionable that a publicly traded company on the NZX is not offering a dividend when they are cash-positive with very little debt.
We think the stock is worth at least $1.40 based on peer multiples – obviously peer multiples have decreased as the global tech sector has been hit – Taiwan Semiconductor, for example, trades at 14x fwd earnings – on the same very reasonable multiple Rakon is worth ~$1.48. This factors in underlying EBITDA decreasing -10% and softening valuations of tech companies globally.
Exit @ 1.09Nice little 3% run here not bad i am finding there def are plays on nzx takes from research thou
RAK - LONG Buyers also coming in heavy here will see if resistance is pushed and support is held also have a long position i entry yesterday near closing
RakonRakon - Looks like it had a good day Fundamentals are not to bad, makes money, Revenue Growth -1.97 not the best but the trend has been strong, Net Profit up to Sept 30th $4,6m compared to $1.3 same time last year.
See below for details.
Quick Summary Board
Market Screener: No Data
Investing.com: Buy
EMA - Trade: Buy
Mv Ave -Trade: Buy
Macd - Trade: Buy
Volume > Yest: Sell
Rsi > 55 < 88: Buy
Intrinsic Val Ann: Buy
Intrinsic Val TTM: Buy
Criteria %: 29%
Total Score: 7 Out of 9 Buy
Vix: -4.80% Bullish
Rsi - (Caution 80%): 75%
On $1000 invested Roi
Mv Ave: Buy Nov 20, 2020 $941.52
Macd: Buy Nov 11, 2020 $892.73
Graham Intrinsic value Annual: $2.74
Graham Intrinsic value TTM: $1.30
Discounted Valie Calc 15%: $0.20
Next Eent: FY 2021 2021 (Projected) Earnings Release
Date: 20/5/2021
Days Away: 126
Dividend Info
Dividend Payment Per Share: None Paid
Date Payable: None Paid
Days Away: None Paid
Exdividend Date: None Paid
Dividend Re Investment: None Paid
Dividend Yield Prev Yrly % Return: None Paid
Forward Annual Dividend Yield 4: None Paid
Fundamentals
Return on Assets (ttm): 2.32%
Return on Equity (ttm): 7.63%
Quarterly Revenue Growth (yoy): 4.60%
Revenue Growth Rate (5Y): -1.97%
M - Net Operating Cash Flow $9,401,000.00
M - Net Investing Cash Flow -$6,631,000.00
M - Net Financing Cash Flow -$3,078,000.00
M - Long-Term Debt $17,350,000.00
M - Net Income- FY $3,980,000.00
Operating Margin (ttm) 2.98%
Net Profit Margin (ttm) 3.35%
Beta Volatility 1 > < 3 ok 1.69
P/E Normalized (Annual) 39.56
PE Ratio (TTM) 12.56
Book Value (Per Share Annual) 0.36
EPS Growth Rate (5Y) 0.0134
EPS Normalized (Annual) 0.02
EPS Ratio (TTM) 0.03
5 out of 17 data points pass 5-17
Criteria %: 29%
Income last 5 years
(ttm) $7,279,000.00
2020 $3,980,000.00
2019 $3,360,000.00
2018 $10,000,000.00
2017 -$13,560,000.00
2016 -$1,730,000.00
Wednesday, 16 December 2020
Rakon has reported an unaudited net profit after tax of $4.6m for the six months to 30 September 2020 (HY2021), compared with $1.3m in the September 2019 half-year (HY2020)
Description
Rakon Limited, together with its subsidiaries, designs, manufactures, and sells frequency control products for various applications in Asia, North America, Europe, and internationally. The company provides crystal resonators, tuning fork crystals, standard SMD crystals, crystal oscillators, voltage control crystal oscillators and clock oscillators, temperature compensated crystal oscillators, oven controlled crystal oscillators, and oven controlled surface acoustic wave (SAW) oscillators. It also offers a range of crystal filters, including bandpass filters, notch/stop band filters, linear phase or constant group delay filters, phase and/or amplitude matching filters, and monolithic filters; and frequency multipliers. The company's products are used in telecommunications, global positioning, and space and defense, and other markets. In addition, it is involved in the provision of financing and marketing support services; and research and development activities. The company was founded in 1967 and is headquartered in Auckland, New Zealand.
Hope this was helpful and helps make you money : )
