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BREAKING NEWS: Kogan Down 80% From Mid COVID Highs

COMMENT: We said a long time ago that Kogan was a disaster waiting to happen, and there are a few shareholders out there today who are going to regret their investment in the Australian online Company whose shares are wallowing at $4.75.

Back in 2020 as COVID was taking hold Kogan shares were selling for $24.75.

The Company who price gouged during COVID is down 52.97% year to date 2022, with several people questioning whether directors who have pocketed millions of shareholder money are still passionate about the business.

CEO Ruslan Kogan who before the business was floated, was the biggest loudmouth on the block has suddenly got a bout of publicity shyness, but he does have his multi-million-dollar Toorak mansion, his fast cars and even had enough cash from shareholders investing in the business to buy his mother a multimillion-dollar homer in the posh Melbourne suburb.

Since the beginning of 2022, the Kogan share price has fallen by 44% with the Company struggling to now get stock due to the bulk of their products being manufactured in China, which is in COVID lockdown, with factories unable to produce goods.

Stock is king right now so why are investors dumping the stock.

In the first six months of FY22, gross sales increased by 9.4% to $698 million.

The number of active customers also increased by 9.4% to more than four million.

It was only a month ago that Kogan management said that they were aiming to achieve a gross sales compound annual growth rate of at least 20% per annum.

The online business is still yet to overcome a 16% loss incurred so far in 2022, despite the revival of the market that is driving the share value of competitors up.

Year to date, JB Hi Fi year to date 2022 is up 6.56%, Harvey Norman shares are also up year to date while Myer who have seen strong online growth are up 5.43% over the same period.

Back in February Kogan entered a trading halt reporting an $11.9 million loss for the December half – a period that is usually its busiest between Christmas and Black Friday sales, in which it had never before been in the red since listing on the ASX in mid-2016.

The company attributed the loss to continuing supply chain interruptions which are getting worse rather than better due to major supply problems in China.

This followed an FY21 result that was still in the black at $3.5 million but represented an 86.8 per cent year-on-year fall as the bottom line was pushed down by “one-off” inventory, logistics and the acquisition of the Mighty Ape online operation.

 

 



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