Kogan is potentially a great business in a growing industry. Australia's online e-commerce penetration is way behind other western countries. I wouldn't be buying KGN stock at the moment. But if l currently held l wouldn't be selling yet either. I'd be giving management another half year to see how sales go over Christmas and New Year then deciding next February.
I've written on here before that the decision to buy or hold ultimately comes down to how much faith you put in Ruslan Kogan. I see pictures of him with his smug mug staring back at me and "the question isn't can l, but wh
o's going to stop me" on his t-shirt. If you've seen it, it's difficult to un-see. I read a comment on here this evening by an investor saying R. Kogan seemed disinterested during the presentation today.
The negative customer reviews online. The poor customer service. Dishonest conduct by offering fake sales. Inventory issues. Price gauging of masks and hand sanitiser which l saw for myself last year. The share options he's been issued. And shares he's sold after (in my opinion) a couple of well-timed announcements which temporarily increased the share price. I really wonder how much Mr. Kogan is aligned with shareholders' best interests and how much he's aligned with his own interests. And if he's someone I want to be in control of my investment's chances of success. I'm not accusing him of anything. He's clearly a successful guy and I admire him for it.
Rather, I wonder to myself if a business which seems predatory and aggressive (those constant emails after viewing their products online) and transactional (they seem to compete only on having the lowest price) would treat its shareholders any better. I hope I'm wrong about this company because l like the idea of a pure play online retailer. I'm only saying I'd be more likely to trust Gerry Harvey with my money despite the slower growth rates.
I actually bought a pair of New Balance running shoes recently for $56 including free delivery with a free trial premium membership. Why not. They seemed to be almost giving them away. Incredibly cheap.
I saw this online tonight while researching Mighty Ape in New Zealand. It won't help with the inventory situation.
(20min delay)