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I do not hate the guy nor do I hate the business, I say good on him and well done. - I think its an extremely good opportunity for him and his employees that hopefully will continue to grow - What I do dislike is the $1.80 price this was touted to at investors - Now many people said Instos bought the shares, and they did, but in the instos offer was also a bunch of novice investors who got caught up in the sale of the IPO that was sold from the Instos as a "Solid Buy" - Yes, agreed, you always do you own research and you reap the rewards or losses of your decisons, however, the business model was good for what it is prior to IPO on cash sales, but if you look at the numbers on paper these do not stack up to sell for $1.80 at its current cash flow, or even future estimates - Agreed also, that Amazon has a small market to compete with in Australia, and yes Amazon lost money for a few years - and so did Qantas then the next year Qantas turned around a made a 500+ m profit EBIT over the course of 12 months - So what does this have to do with it all? It all goes down to how the books are written - Its not about profit and loss its about its cash flow position - Amazon is very cashflow heavy. You can write down an entire company through assets (Like Qantas did) and you make a loss that year and pay no tax and then the next year its like magic, through the stroke of a pen you just made the company $500m. Kogan looks good on paper ata P+L level, but the cashflow is nothing to rave home about in its current state. Just as it now has the funds to grow through the IPO, so does competition, and the margins become thinner, but the cost of doing business in Australia is getting more expensive and it will become harder for Kogan to sustain, as will other retailers.

I do hope he succeeds as I do like the idea of Kogan being an Australian company and the money staying in Australia, but lets hope not too many people get burned in the process of the IPO. JB, GG, HN (Although HN is a little different due to its business model), and the rest will all be in the hurt locker over the next few years, but its not P+L thats the key indicator, its the cashflow statements that will win the race in the long term. Dick Smith died because the blood of the company being cash flow stopped coming in, even though it had millions of dollars in stock on its shelves and its warehouses.

Anyway, just my 3 cents worth.