One of Rakon's largest institutional shareholders has almost halved its investment in the high-tech electronic components maker, whose stock was sold off heavily last week after the company announced its second earnings forecast downgrade since December.
Local fund manager Harbour Asset Management has reduced its shareholding in the Mt Wellington-based manufacturer from 9.04 per cent to 5.15 per cent, according to a substantial shareholder notice posted on the NZX website today.
Shares in Rakon - which manufactures crystal oscillators used in telecommunications infrastructure, smartphones and GPS devices - plunged more than 30 per cent last week after the firm said it expected full-year earnings before interest, tax depreciation and amortisation (ebitda) of $5 million to $7 million.
That compared with a previous forecast - issued on December 20 - of $8 million to $12 million.
In August the company gave guidance of $14 million to $16 million.
Rakon said the latest downgrade was the result of sudden and aggressive price reductions demanded of all key component suppliers and chief executive Brent Robinson said the high value of the New Zealand dollar versus the greenback was also having an impact on earnings.
The company's shares continue to be sold off today, falling more than 7 per cent in early trading to a new all-time low of 25c.
Rakon's other institutional shareholders include AMP, with 6.44 per cent, and ACC, with 3.3 per cent.By Christopher Adams Email Christopher