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                          UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           FORM 10-QSB

[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

             For the Quarter Ended Sept 30, 2000

                                OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

     For the transition period from            to

                  Commission File Number 0-24633

                         RAKO CORPORATION
(Exact name of small business issuer as specified in its charter)

            Idaho                           91-0853320
-------------------------------         -----------------
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)          Identification No.)

               3256 Agate Court, Boise, Idaho 83705
              --------------------------------------
             (Address of principal executive offices)

Registrant's telephone no., including area code:  (208) 336-3036

     Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes   X   No

               APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.

           Class               Outstanding as of Sept 30, 2000.
Common Stock, $.001 par value              1,025,030




























<PAGE>

                              RAKO CORPORATION
                        (A Development Stage Company)

                            FINANCIAL STATEMENTS

                   Sept 30, 2000 and December 31, 1999


                              C O N T E N T S
PART I

Independent Auditors' Report                                            3

Balance Sheets                                                          4

Statements of Operations                                                5

Statements of Stockholders' Equity (Deficit)                            6

Statements of Stockholders' Equity (Deficit) Continued                  7

Statements of Cash Flows                                                8

Statements of Cash Flows (Continued)                                    9

Notes to the Financial Statements                                      10

PART II

Item 1  Legal Proceedings                                              11

Item 2  Changes in Securities                                          11

Item 3  Defaults in Senior Securities                                  11

Item 4  Submission of Matters to a Vote of Security Holders            11

Item 5  Other Information                                              11

Item 6  Exhibits and Reports on Form 8-K                               11

























<PAGE>


















                  INDEPENDENT ACCOUNTANTS' REVIEW REPORT


To the Board of Directors
Rako Corporation
(A Development Stage Company)
Salt Lake City, Utah


We have reviewed the accompanying balance sheet of Rako Corporation (a
development stage company) as of Sept 30, 2000 and the related statements
of operations, stockholders' equity (deficit) and cash flows  for the three
months and nine months ended Sept 30, 2000 and 1999.These financial
statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters.  It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole.  Accordingly,
we do not express such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the accompanying condensed financial statements referred
to above for them to be in conformity with accounting principles generally
accepted in the United States.

We have previously audited, in accordance with auditing standards generally
accepted in the United States, the balance sheet of Rako Corporation (a
development stage company) as of December 31, 1999, and the related
statements of operations, stockholders' equity, and cash flows for the year
then ended (not presented herein) and in our report dated April 13, 2000,
we expressed an unqualified opinion on those financial statements.



HJ & Associates, LLC
Salt Lake City, Utah
Oct 29, 2000

































<PAGE>

                              RAKO CORPORATION
                       (A Development Stage Company)
                               Balance Sheets


                                   ASSETS
<TABLE>

                                                    Sept 30,    December 31,
                                                      2000           1999

CURRENT ASSETS
<S>                                             <C>           <C>
Cash                                              $     -        $     -
                                                  ----------     ----------
Total Current Assets                                    -              -
                                                  ----------     ----------
TOTAL ASSETS                                      $     -        $     -
                                                  ===========    ==========

                 LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable                                  $     -        $     88
                                                  -----------    --------
Total Current Liabilities                               -              88
                                                  -----------    --------
STOCKHOLDERS' EQUITY (DEFICIT)

Common stock at $0.001 par value; authorized
 50,000,000 common shares and 20,000,000
 preferred shares; 1,025,030 common shares
 issued and outstanding                                 1,025       1,025
Additional paid-in capital                             99,398      95,466
Deficit accumulated during the development stage     (100,423)    (96,579)
                                                  -----------     --------
Total Stockholders' Equity (Deficit)                    -             (88)
                                                  -----------     --------
TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY (DEFICIT)                   $     -         $     -
                                                  ===========     ==========

</TABLE>

        See Accountants' Review Report and the accompanying notes to the
                         reviewed financial statements.














<PAGE>

















                               RAKO CORPORATION
                         (A Development Stage Company)
                           Statements of Operations

<TABLE>

                                                                                 From
                                                                             Inception on
                                                                             October 9,
              For the Three Months Ended      For the Nine Months Ended      1968 Through
                         Sept 30,                      Sept 30                 Sept 30,
                       2000        1999         2000          1999               2000
                         ----------------------------------------------------------------
<S>                     <C>          <C>           <C>            <C>               <C>

REVENUE             $     -    $     -         $    -        $    -             $    -

EXPENSES                 500        250           3,844          4,965            100,423
                    ----------  ----------     ----------     ----------         --------
NET LOSS            $   (500) $    (250)      $  (3,844)     $  (4,965)         $(100,423)
                    ==========  ==========      ==========   ==========          ========
BASIC LOSS PER SHARE$  (0.00)  $   (0.00)      $  (0.00)     $   (0.00)
                    ==========  ==========     ===========   ===========
</TABLE>

         See Accountants' Review Report and the accompanying notes to the
                         reviewed financial statements.


































<PAGE>

















                                            RAKO CORPORATION
                                    (A Development Stage Company)
                             Statements of Stockholders' Equity (Deficit)
                      From Inception on October 9, 1968 Through Sept 30, 2000
<TABLE>
                                                                                Deficit
                                                                               Acumulated
                                                               Additional     During the
                                        Common Stock             Paid-in      Development
                                     Shares         Amount        Capital        Stage
                                    -----------------------------------------------------
<S>                                    <C>           <C>            <C>            <C>

Inception on October 9, 1968              -    $      -          $     -        $     -

Common stock issued for mining
 claims recorded at predecessor
 cost of $0.00 per share              400,000        400             (400)            -

Common stock issued for services
 at $0.15 per share                   400,000        400            59,600            -
Common stock issued for cash
 at $0.45 per share                    14,734         15             6,615            -

Costs associated with stock offering      -            -              (994)           -

Common stock issued for mining
 claims recorded at predecessor
 cost of $0.075 per share             333,334        333           24,667             -

Net loss for the period from inception
 on October 9, 1968 through
 December 31, 1995                        -             -               -        (90,636)
                                     ---------    ----------      ----------    ---------
Balance, December 31, 1995          1,148,068       1,148          89,488        (90,636)

Cancellation of common stock         (123,024)       (123)            123             -

Fractional shares adjustment              (14)           -             -              -

Capital contributed for payment of
 expenses                                 -             -           2,461             -

Net loss for the year ended
 December 31, 1996                        -             -               -         (2,461)
                                     ----------    ----------       ----------  ---------
Balance, December 31, 1996           1,025,030      1,025          92,072        (93,097)

Net loss for the year ended
 December 31, 1997                         -            -               -             -
                                     ----------    ----------       ----------   --------
Balance, December 31, 1997           1,025,030      1,025          92,072        (93,097)

Capital contributed for payment of
 expenses                                  -            -           1,574            -

Net loss for the year ended
 December 31, 1998                         -            -                         (1,574)
                                    -----------    ----------       -----------   -------
Balance, December 31, 1998            1,025,030 $   1,025      $   93,646        $94,671)
                                    -----------    ----------       -----------  --------
</TABLE>

       See Accountants' Review Report and the accompanying notes to the
                   reviewed financial statements.


<PAGE>












                                            RAKO CORPORATION
                                   (A Development Stage Company)
                      Statements of Stockholders' Equity (Deficit) (Continued)
                      From Inception on October 9, 1968 Through Sept 30, 2000
<TABLE>

                                                                                Deficit
                                                                              Accumulated
                                                                Additional    During the
                                        Common Stock             Paid-in      Development
                                     Shares         Amount        Capital          Stage
                                    -----------------------------------------------------
---
<S>                                  <C>            <C>             <C>            <C>

Balance, December 31, 1998         1,025,030      $1,025        $  93,646        (94,671)

Capital contributed for payment of
 expenses                                -            -             1,820            -

Net loss for the year ended
 December 31, 1999                       -            -                -          (1,908)
                                   ---------     -------        ----------       --------
--
Balance, December 31, 1999         1,025,030       1,025           95,466        (96,579)

Capital contributed for payment of
 expenses (unaudited)                    -            -             3,932           -

Net loss for the nine months ended
 Sept 30, 2000 (unaudited)               -           -              -             (3,844)
                                  ----------     ---------     ----------        --------

Balance, Sept 30, 2000            1,025,030      $   1,025     $   99,398       (100,423)
            (unaudited)          ==========       ==========     =========     ==========

</TABLE>
        See Accountants' Review Report and the accompanying notes to the
                     reviewed financial statements.
















<PAGE>






















                                               RAKO CORPORATION
                                        (A Development Stage Company)
                                          Statements of Cash Flows
<TABLE>                                         (Unaudited)

                                                                                     From
                                                                             Inception on
                                                                               October 9,
                                For the Three Months     For the Nine Months 1968 through
                                    Ended Sept 30,             Sept 30,        Sept 30,
                                    2000    1999            2000    1999         2000
                                 ----------------------------------------------------

CASH FLOWS FROM
 OPERATING ACTIVITIES
<S>                                 <C>        <C>        <C>        <C>         <C>

Net loss                        $ (500)  $    (250)  $ (3,844)  $  (4,965)   $  (100,423)
Adjustments to reconcile net
loss to net cash (used) by
 operating activities:
Stock issued for services           -            -         -          -           60,000
Increase in accounts payab      (1,814)        250        (88)      2,750         25,000
                              ----------    ----------  ---------  --------      --------
-Net Cash (Used) by Operating
 Activities                     (2,314)         -      (3,932)     (2,215)       (15,423)
                               ----------   ----------  ---------  --------     ---------

CASH FLOWS FROM                      -          -          -          -             -
 INVESTING ACTIVITIES          ----------   ----------  ---------  --------     ---------

CASH FLOWS FROM
 FINANCING ACTIVITIES

Issuance of common stock             -          -          -          -            5,636
For cash
Expenses paid on
 Company's behalf                 2,314         -        3,932      2,215          9,787
                               ----------   ----------  ---------   --------     --------
Net Cash Provided by
 Financing Activities             2,314         -        3,932      2,215         15,423
                               ----------   ----------  ----------  --------     --------
INCREASE (DECREASE) IN CASH
 AND CASH EQUIVALENTS               -           -          -          -             -

CASH AND CASH EQUIVALENTS
 AT BEGINNING OF PERIOD             -           -          -          -             -
                               ----------  ----------  ----------   ---------    --------

CASH AND CASH EQUIVALENTS
 AT END OF PERIOD              $     -      $    -     $    -     $   -        $    -
                              ===========   =========  ==========    =========   ========
 See Accountants' Review Report and the accompanying notes to the
                    reviewed financial statements.





<PAGE>



















                                                  RAKO CORPORATION
                                          (A Development Stage Company)
                                       Statements of Cash Flows (Continued)


                                                                                From
                                                                             Inception on
                                                                               October 9,
                                For the Three Months     For the Nine Months 1968 through
                                    Ended Sept 30,             Sept 30,           Sept 30
                                    2000   1999              2000    1999         2000

</TABLE>
<TABLE>

<S>                                  <C>     <C>          <C>       <C>             <C>

Cash Paid For:

Interest                            $   -     $   -        $   -    $   -           $   -
Income taxes                        $   -     $   -        $   -    $   -           $   -
SUPPLEMENTAL SCHEDULE OF
NON-CASH FINANCING ACTIVITIES

Stock issued for services           $   -     $  -         $   -    $    -          $60,000
Stock issued for mining claims      $   -     $  -         $   -    $    -          $25,000


</TABLE>

         See Accountants' Review Report and the accompanying notes to the
                         reviewed financial statements.



























<PAGE>





















                           RAKO CORPORATION
                    (A Development Stage Company)
                  Notes to the Financial Statements
                 Sept 30, 2000 and December 31, 1999


NOTE 1  ORGANIZATION AND DESCRIPTION OF BUSINESS

On October 9, 1968, Bell Silver Mining and Milling Corporation was
incorporated under the Laws of Idaho with the purpose of developing mining
claims.  On the date of incorporation, 10,000,000 shares of $0.10 par value
common stock were authorized.

On March 3, 1969, Bell Silver Mining and Milling Corporation changed its
name to Silver Strike Mining Co. Inc.  The number of shares of common stock
authorized was changed from 10,000,000 shares of $0.10 par value common
stock to 5,000,000 shares of $0.10 par value common stock.

On May 17, 1973, Silver Strike Mining and Milling Co. Inc, changed its name
to Rako Corporation.

On March 25, 1996, the Articles of Incorporation were amended to change the
par value of the common stock to $0.005 and the number of authorized shares
to 100,000,000.

On May 15, 1996, the Articles of Incorporation were amended to change the
par value of the common stock to $0.001 and the number of authorized shares
to 50,000,000 common and 20,000,000 preferred.

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Accounting Method

The Company's financial statements are prepared using the accrual method of
accounting.  The Company has elected a calendar year end.

b. Provision for Taxes

No provision for income taxes has been made due to the inactive status of
the Company.  The Company has net operating loss carryovers of
approximately $6,000 which expire in 2019.  The potential tax benefit of
the loss carryovers has been offset in full by a valuation allowance.

c. Cash Equivalents

The Company considers all highly liquid investments with a maturity of
three months or less when purchased to be cash equivalents.

d.  Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from those
estimates.




<PAGE>

















                       RAKO CORPORATION
                (A Development Stage Company)
              Notes to the Financial Statements
             Sept 30, 2000 and December 31, 1999


NOTE 2   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

e.  Basic Loss Per Common Share

Basic loss per common share has been calculated based on the weighted
average number of shares of common stock outstanding during the period.
<TABLE>
                          For the Three Months Ended     For the Nine Months Ended
                                   Sept 30,                      Sept 30,
<S>                         <C>           <C>             <C>             <C>
                              2000           1999            2000           1999


Numerator  loss              $(500)         $(250)         $(3,844)       $(4,965)
Denominator - weighted
average number of
  shares outstanding      1,025,030      1,025,030        1,025,030      1,025,030
                          ------------   ------------    ------------   ------------
Loss per share              $ (0.00)        $(0.00)        $ (0.00)       $ (0.00)
                          ============   ============    ============   ============
</TABLE>

f. Unaudited Financial Statements

NOTE 3  GOING CONCERN

The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business.  The Company has not established revenues sufficient to cover its
operating costs and allow it to continue as a going concern.  The Company is
seeking a merger with an existing, operating Company. Currently management
has committed to covering all operating and other costs until a merger is
completed.

 NOTE 4  STOCK TRANSACTIONS

On October 10, 1968, the Board of Directors issued 400,000 shares of common
stock for mining claims received from the founder of the Company.  The
claims were recorded at predecessor cost of $-0-.

On October 10, 1968, the Board of Directors issued 400,000 shares of common
stock for services rendered during the organization of the Company.

On October 28, 1969, the Board of Directors initiated a public offering in
which 14,734 shares of common stock were sold at a gross price of $0.45 per
share.

On September 13, 1984, the Board of Directors issued 333,334 shares of
common stock for mining claims which were recorded at predecessor cost of
$0.075 per share.

On April 10, 1996, the Company canceled 123,024 shares of common stock.

On May 15, 1996, the shareholders effected a 1-for-3 reverse stock split of
all the issued and outstanding common stock.
<PAGE>















<PAGE>

                                RAKO CORPORATION
                          (A Development Stage Company)
                        Notes to the Financial Statements
                      Sept 30, 2000 and December 31, 1999


NOTE 4  STOCK TRANSACTIONS (Continued)

On April 10, 1996, the Company canceled 123,024 shares of common stock.

On May 15, 1996, the shareholders effected a 1-for-3 reverse stock split of all
the issued and outstanding common stock.

On March 17, 1998, the shareholders effected a 2-for-1 forward stock split
of all the issued and outstanding common stock.

The accompanying financial statements reflect the stock splits on a
retroactive basis.

NOTE 5  FAILED ACQUISITION

On May 9, 1996, the shareholders voted to acquire all of the issued and
outstanding shares of Spencer Entertainment, Inc., a Nevada Corporation, in
exchange for the Company's authorized, but previously unissued common stock.
On June 11, 1996, the Company issued 6,300,000 shares as part of the terms of
this agreement, however, on November 22, 1996, the Company completed a
recission agreement regarding the plan of reorganization and acquisition
agreement between the Company and Spencer Entertainment, Inc. and canceled
the 6,300,000 shares that were issued.  The recission has been reflected in
the financial statements on a retroactive basis.



                             PART II

Item 1.  Legal Proceedings

    There are presently no other material pending legal
proceedings to which the Company or any of its subsidiaries is a
party or to which any of its property is subject and, to the best
of its knowledge, no such actions against the Company are
contemplated or threatened.

Item 2.  Changes In Securities

    This Item is not applicable to the Company.

Item 3.  Defaults Upon Senior Securities

    This Item is not applicable to the Company.

Item 4.  Submission of Matters to a Vote of Security Holders

    This Item is not applicable to the Company.

Item 5.  Other Information

    This Item is not applicable to the Company.

Item 6.  Exhibits and Reports on Form 8-K

    (a)  Exhibit 27 - Financial Data Schedules

    (b)  Reports on Form 8-K

             No report on Form 8-K was filed by the Company during the
    nine month period ended Sept 30, 2000.






<PAGE>



                           SIGNATURES


    In accordance with the requirements of the Securities Exchange
Act of 1934, the Registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                            RAKO CORPORATION

Date:  Aug 09, 2000                    By:  /S/ Kenneth D. Montee
                                            KENNETH D. MONTEE
                                            C.E.O., C.F.O., President
                                            and Director



Date: Aug 09, 2000                     By:  /S/ Ray Montee
                                            RAY MONTEE
                                            Secretary/Treasurer,  and
                                            Director
                                           (Principal Accounting Officer)

























<PAGE>