2 Beaten Down Stocks – KGN And SYR

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Below are the two stocks which has offered negative returns to the investors over last one year:

Kogan.com Limited (ASX: KGN)

Kogan.com Limited (ASX: KGN) belongs to the Retailing group of industries, and functions as an online retailer, headquartered in Melbourne, Australia. It offers around 2,000 brands throughout an array of categories, which comprised of consumer electronics, appliances, homewares, hardware etc. It is also an owner and manages eighteen private label brands. Further, KGN offers pre-paid mobile phone plans online, directly sourced holiday packages and bookings for travel. KGN also provides general insurance, along with home, contents, landlord, and travel insurance to name a few.

In the recently released half-year results for the period ended 31 December 2018, the company recorded a loss of $1.5 million, caused by investment expenses in KGN’s warehousing footprint and marketing. The gross sales per customer were influenced by a decrease in high-value Apple sales, and the introduction of a long-tail of lesser value items on its websites. KGN’s globally obtained third-party, Global Brands also experienced a year-on-year decrease in revenue, after the changes to GST laws, and the apparent avoidance of GST by overseas websites.

The stock of the company closed at A$3.740 (as on 15 March 2019), down by 3.11% from its previous close. It has a market capitalization of A$361.8 million with circa 93.73 million shares outstanding. In the last one year, the stock of the company has given a negative return of 58.49% and in the last six months it has given a negative return of 36.93 %. However, in the last three months, it has generated a positive return of 18.04%.

Syrah Resources Limited (ASX: SYR)

Syrah Resources Limited (ASX: SYR) belongs to the Materials group of industries based in Australia. The company is the owner and has constructed the Balama Graphite Project in Northern Mozambique, 200 km west of the port town of Pemba. SYR is engaged with the development of its downstream Battery Anode Material (BAM), and early production of spherical graphite BAM product is aimed towards the end of 2018.

In its Q4 2018 Quarterly Activities Report and Market Update for the period ending 31 December 2018, the company declared that Balama’s overall operating cost structure had advanced in accordance with SYR’ expectation. Though, C1 cash operating cost per tonne exit rate from FY18 was up than planned, because of the lesser December production volumes. The company’s cash as on 31 December 2018, stood at US$77 million with Q4 net cash outflow of US$23.2 million.

The stock of the company closed at A$1.080 (as on 15 March 2019), down by 6.08% from its previous close. It has a market capitalization of A$395.17 million with circa 343.63 million shares outstanding. In the last one year, the stock of the company has given a negative return of 66.86% with negative YTD return of 25.08%.


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