OTCPK:RKNLF - Post by User
Post by
a1broker1on May 24, 2017 10:18am
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Post# 26276911
RKN relationship...
RKN relationship...I have no relationship with RKN whatsoever, other than being a very disgruntled shareholder. As a strictly independent investor, I look for potential undervalued turnaround companies. I increased my position in RKN much too early when both ESW and Crescendo Capital amassed positions as I have had success in the past when I rode the coattails of Crescendo (Eric Rosenfeld).
I was not totally happy with the effective change of control with the ESW transaction. However, do not forget that prior to the Preferred Share transaction, ESW had purchased many millions of shares at about $1.50. Furthermore, with that transaction, all RKN debt was eliminated. A corporate turnaround is much more predictable when the company is not at the mercy of its lenders.
As per my earlier posts, I view the rights offering as the first piece of fair and good news in a long time for minority shareholders, as those who exercise their rights will be purchasing shares near all time lows (excluding the 2008/2009 financial crisis). Although this could take some time, I believe that RKN with its much stronger balance sheet, a superior management team, along with its huge installed customer base has the potential to be an excellent investment going forward, but only for very patient long term investors. As always, investors need to assess their own portfolio and do their own due diligence. I still believe that those shareholders that don't exercise their rights are probably better just to sell their shares.