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clock Created with Sketch. 13/01/17
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Originally posted by TheSeaDog
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This company is caught between a rock and a hard place. They need better results or it is potentially going to be taken out by the Sundell group cheap. And good luck to him if he can do that. However I would prefer that to not happen and for sales results - specifically the margin on sales - to improve and the share price to head back towards 50c. Most businesses they own they do not need to own. So they can sell them off one by one if they get a good deal which seems to be what Sundell indicated anyway in the recent AFR article. There really aren't any synergies to owning all these businesses, and you can simply pay others to advertise on their site, you don't need to try vertically integrate to get leads. Be nice to get the $25m or so back they spent on these businesses and keep the $250m in online sales. Maybe the spark will come back to online this year, Kogan is killing it. Stuff owning a shop to make sales - staff are way too expensive, and if they dont send you under the lease will certainly make sure of it. Online is definately the future of sales.
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The businesses you mention selling have better margins than the retail site. There are many 'synergies' to owning these businesses, and why do we need more capital?
