Ruslan Kogan’s hyperbole haunts investors: Chanticleer (afr.com)

KGN has taken an absolute drubbing this morning - it's clear that margins will come under pressure from the additional storage and inventory costs, but now that the company has scaled up its distribution centres, arguably it should be better positioned now to grow?

The article does point out that future shipping costs will continue to eat into margins, but medium to long term I wouldn't expect this to last.

Interesting to note that while earnings guidance is lower than the expectation, KGN is still making a profit after all that.  Hopefully, this represents a buying opportunity for long term holders..... thoughts....?

Agree with Tom73's comments below, but would like to add:

42% decline in EBITDA should have already been priced in as the $5.1M payment for tranches 3 & 4 of the Mighty Ape acquistion would have been known about.  For me, additional expenditure on logistics and warehousing, particulalry in the run-up to Black Friday/ Christmas would seem to be prudent.

As a holder, I am biased of course, however, I do believe KGN has been unfailrly punished.  I still believe in the story, but I have to admit is its irksome when the largst holding in the portfolio takes such a hit!

Other than that a reasonably pleasing set of figures, paerticulalry transaction and customer growth, particulalry now the COVID effects would have worked their way through the system - still profitable after all that!