TBH I like the changes they've made with the new CEO coming in and letting Brent focus on the tech. They have definitely improved the business over the past 10 years. It's a solid business now, starting to build its profitability.
My main reason for a lower valuation (it went to $1.55 recently remember) is mainly due to the 'bump' from the fire at a competitors' factory, so i'm not sure if that higher margin revenue will be as high in FY23, and we still are unsure if 5G sales will pick up the slack. If they provide strong guidance for FY23 then my price target is irrelevant.
Just consider the emerging importance of the industry they're in. It's great as demand is increasing, but at the same time, competition will intensify from major players who are investing massively in growing tech and capacity. Can Rakon out-do these mega players from China, Japan, Taiwan, US ect? I'm encouraged that they're focusing on a niche market, but considering it's tipped to double in the next 5 years this brings more competition - imo.
Price at posting:
$1.87 Sentiment: None Disclosure: Not Held
