Kogan share price pops 9% on promises of return to previous margins once sell through is complete.
However, the data at this stage is heading in the other direction but let’s wait and see.
Based on todays data and share response it’s still a fan favourite and the first sign of position data and the share price could go crazy.
The Kogan spin continues…more of the same “excuses” being rolled out. At what point does management acknowledge they may need some new people at the top to right this ship?
Ruslan Kogan - Commsec executive series. Sept 7.
some key points...
“Growth has returned. July was strong and Aug is 25% up on July. Seeing some strong metrics.”
“Australian e-commerce market estimated to be between 30-40B and we are roughly 3% of Australian e-commerce. And Australian e-commerce is roughly at around 10% of retail. So Kogan is 0.3% of Australian retail.”
Also made mention that the excess inventory issue has potentially become a positive with these recent lockdown.
Disclaimer: I am a buyer today even though Management in my mind delivered a bit of a "sh.t sh.w" last half the companies growth trajectory is hard to ignore.
What a SS! Time now for the co-founders to earn that massive massive massive massive pay day. What a shambles and unfortunate way to put the breaks on a company that was on a tear. It is such a shame that crucial momentum was sabotaged by such poorly made decisions. The one thing that still does my head in is the issue of blaming different things that impacted the bottom line when one of the main hits to profits was arguably poorly timed awarding of some may argue excessive payments. I can not help but think this annual was the opportunity to really clear the slate and say "mea culpa, we stuffed up but, we are going to show you we are worth it and we intend to return the faith and bring incredible value to our loyal shareholders". Instead the report spends the first part adding back in and presenting adjusted earnings. If this and this didn't happen we would have this and this and so on blah...blah...blah!
Anyway lets see how management go about re-earning the trust of their shareholders and repaying the holders who bought in at much higher levels. I think the business clearly has the underlying qualities to continue to grow impressively, especially, if they can get traction in some of their other markets but, holders and new buyers will want to see the best interest of the business being put first!