After watching Kogan for a while now I finally put some money on...

After watching Kogan for a while now I finally put some money on the table after watching it break through the $5.00 mark. Really liking the technical set-up + fundamentals of this stock for a small cap. It hits the mark on so many of the metrics I examine before making an investment - operating in a growing space, beating forecasts, multiple avenues for growth, hitting new share price highs + a really tight registry with >50% of shares owned by insiders. The list goes on.

Wanted to summarise my reasons for making the trade:

Fundamental
Even with impressive price leadership, it is able to produce great fundamental results.
FY17 results to 30 June 2017:
- Revenue $289.5mm, up 37.1% on prior year, beating forecasts by 20%
- EBITDA of $13.2mm, up 230% on prior year and beating forecasts by 91.3% on, reflecting revenue growth & margin expansion
- NPAT of $7.2mm, (FY16: $0.8mm; up 800%), beating estimates by 188%
- Growth in customer base to 955,000 (up 36% yoy)
- Strong balance sheet - net cash 32mm, OCF before CAPEX = $10.8mm
- While not a primary consideration, to be generating enough cash flow as a small cap to pay a FY17 dividend of 7.70cents a share is very positive

Q1 - FY18 (compared to Q1 FY17)
- Revenue growth 35.9%
- Gross Margin 18.2% vs 17.9%
- EBITDA growth 37.7%
- Active customer growth of 278,000
- ($0.928mm) OCF last quarter - however this was due to a significant investment in inventories ($12mm) to prepare for the christmas quarter. We could see a really positive upcoming quarterly result - this will propel the share price to even higher valuations.
- Overall, KGN is in a very strong financial position - cash of $25.8mm, access to $10.0mm undrawn bank facility, inventories of $52.5mm.

Growth drivers:
- Significantly lower takeup of online shopping in aus (~7%) compared to the US and UK (~20%)
- So many avenues for growth - the online marketplace, insurance, health, mobile, travel internet... The company keeps wanting to expand and is able to provide services at such competitive prices. Take Kogan Insurance for example (launched in august). I compared the prices & cover to what I would get from my normal travel insurance provider (Travel insurance direct). Kogan was able to offer prices 22% lower and 14.9% lower for basic and comprehensive cover respectively, with even better terms and conditions.

Technical factors
- Tight registry with >50% of shares outstanding held by insiders, and new institutional ownership (such as BlackRock). Look how quickly prices can rise when there aren't many sellers! I like Ruslan as I think he is an impressive leader with a lot of skin in the game. He seems hungry for more and keeps delivering the goods to shareholders.
- $5.00 seemed to be a psychological barrier. I thought it was a really positive retrace over the past couple of months which shook out the weaker holders and means that the remaining holders are less likely to sell. I wanted to see the price break out to an all-time high before putting money on the table. With the share price breaking out the new all-time highs, it looks like we will have a fair bit of upwards momentum with a low amount of headwind. I'm confident that we will keep breaking to new highs here.

And some other info (mostly anecdotal): I've happened to speak to a number of different people over the past few weeks who love Kogan and are very active on it. Just the other day, out of the blue a friend linked me to a $80 item on Kogan for an opinion (and they ended up buying it!) - showing to me their impressive price leadership and online presence. Just by being on the website you can see just how many items they are selling every minute - indicative of how many Australian's use Kogan (as the little tab pops up). And these are big items, like air conditioners and TVs.

I'm liking where this company is at and think it has a lot further to run.

All IMO, DYOR.