KGN 0.24% $4.23 kogan.com ltd

In the fortnight since my last post, KGN's price has risen from...

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    In the fortnight since my last post, KGN's price has risen from 18.81 to 21.70 - a gain of 15 per cent.

    The chart has formed a gap up (blue lines), followed by something of an ascending channel (yellow lines).

    While last Monday saw an untoward red candle, Tuesday's annual presentation came back with a big green candle and all-time closing high of 22.99. At the close, KGN had doubled the price of its recent Share Purchase Plan (11.45). See pink line.

    https://hotcopper.com.au/data/attachments/2405/2405772-86994e33813a9dc3980bd54edc5dee26.jpg

    While price has slipped since then, it remains in the upper half of the current yellow channel.

    More broadly, Kogan currently has the highest 1-year gain of any stock on the ASX300 (outperforming Mesoblast and Afterpay):

    https://hotcopper.com.au/data/attachments/2405/2405781-c5f63a9a08b11733c73114dab4eaf77e.jpg

    Regarding fundamental analysis, the Australian Financial Review gave (what I think is) an excellent 4-point summary of KGN's financial performance:

    • Revenue: 497.9 million - up 13.5%
    • Pre-tax profit: 38.9 million - up 66.0%
    • Net profit: 26.8 million - up 55.9%
    • Final dividend: 13.5 cents - up 64.6%.

    So let's end with this AFR commentary:

    "At Kogan.com, a 13.5 per cent increase in revenue translated to a 67.4 per cent increase in EBIT, with EBIT margin rising by a staggering 252 basis points to 7.9 per cent, suggesting this younger business finally has built the scale to convert strong top-line growth into real bottom-line growth."
 
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