Brands that consumers are fans of, are brands that spend megabucks on advertising, branding, image curation, publicity and PR curation. I don’t see much of these in the OPEX of this company, they only spent $26m in marketing to get $446m in sales.
TPW spent $41m to generate $253m sales in the exact same half. However, TPW’s sales are higher margin sales as they play in a different space.
This speaks to my understanding then, that KGN understands that they operate in a lower margin industry and are conscious of how much marketing they spend to get each dollar of sale. Which is about 5.8c to get each $1 of sales. Monitoring this will tell us the health of this company over time. I am now a continued buyer of this stock, changing my sentiment from Hold to Buy.
Brands that consumers are fans of, are brands that spend...
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Last
$4.83 |
Change
0.090(1.90%) |
Mkt cap ! $486.3M | |||
| Open | High | Low | Value | Volume |
| $4.78 | $4.90 | $4.70 | $6.683M | 1.393M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2745 | $4.82 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $4.84 | 678 | 1 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$4.82 |
Change
0.090 ( 0.18 %) |
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| Open | High | Low | Volume | ||
| $4.82 | $4.90 | $4.70 | 180062 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| KGN (ASX) Chart |