Hi just a quick one and I will not even talk about the figures...

Hi just a quick one and I will not even talk about the figures but will give you some ideas about the way Kogan works for your reference.

To be upfront, I was offered this stock but knocked it back at IPO for a variety reasons. To answer your first question, you need to understand online market competition. Internet retailing or etailers, as they are known do not compete with Harvey Norman per say, but more with likes of eBay, Amazon and many other pure play etailers. For this very reason, Kogan and all etailers run a thin profit line. Just like when you browse ebay for the best deal millions of Australians are doing this online. If Kogan has such a huge margin, then most people will buy from eBay and not him so he naturally needs to keep profits thin to entice customers into the shop and keep them coming back. This will be the continual problem for etailers to be the cheapest. Even with no physical stores but a large warehouse or two they still have staff, super, packing, and fixed costs to account for and are not cheap for a business. So after the IPO, his books should look healthy, but the true test will be in his first few years to see how that money is reinvested into the business. At the end of the day, unlike a loan Kogan has essentially been given free money in the IPO to build the business - what they do with it will be Upto management, not so much shareholders due to the voting rights. I wish him all the best as an Aussie company however - Now someone can start the finance discussion as that is another bag all together!