Is Kogan Setting For Another Leap?

Kogan.com Ltd (ASX: KGN) is an ASX listed retail and services company. It has interest in many of the consumer segment spaces like broadband, online marketplace, retail etc. On the company’s online portal consumers can find products across various segments like electronics, apparel, books, sports equipment, digital distribution of movies and tv shows etc.

Resignation of company secretary

On 8th May 2019, the company announced that Mr Adam Sutherland of Mertons Corporate Services Pty Ltd has resigned from Kogan.com as company secretary. This resignation came after his resignation from Mertons.

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Mr Mark Licciardo of Mertons would continue to serve as Company Secretary of Kogan.com.

Change of interest of a substantial shareholder

On 6th May 2019, the company released a statement regarding a change of interest of a substantial shareholder. According to the release, Credit Suisse Holdings (Australia) Limited on behalf of Credit Suisse Group AG and its affiliates had sold a total of 945,320 shares. This transaction lead to Credit Suisse Group AG reduce its stake in the company from 8.2% to 7.19%.

Credit Suisse now holds 6.73 million shares in the company as compared to the previously reported number of 7.68 million.

March 2019 quarterly update

On 18th April 2019, the company announced Its business for the quarter ended 31st March 2019. Kogan.com achieved 23.4% yoy growth in active customer with total count rising to 1.58 million. Kogan Mobile active customers grew by 40.6% yoy, which also helped in delivering strong growth in the revenue. Kogan Internet represented the highest growth in active customers, posted at 78.7% qoq; this was driven by strong promotional activity.

The total revenue growth stood at 9.5%, and the gross profit growth was 28.4% (both of the numbers are compared with pcp). The company recorded a total gross transaction value growth of 17.5% compared with pcp, and the final EBITDA rose by a massive 96.4%.

On 25th February 2019, the company released its 1HFY19 result, highlights of the same could be read here.

Technical Outlook

2019 has been a wonderful year for the shareholders of KGN, the shares have delivered an index beating return of 67.2% on a YTD basis. Just in the past 3 months the shares have surged up by 37.6%. Let’s have a look at the charts and understand the technical scenario of KGN.

Currently, the stock has halted its prior positive trend after hitting its resistance zone of A$6.3 – A$6.4. This zone needs to be breached for the continuation of this up move. From the top of the rally it had corrected a bit but still trading above its support level. This correction was indicated by Relative Strength Index (RSI) when it sharply fell below 70 (market by red arrow).

Daily chart of Kogan.com (Source: Thomson Reuters)

As of now, the stock more or less trading in a range of A$6.3 – A$6.4 (resistance) and A$5.3 – A$5.4 (support). The breach of any of these levels will further decide the new trend.

Stock Performance

The company has a market capitalisation of A$548.32 million, and the stock had touched a 52-week high and low of A$9.8 and A$2.61 respectively. The stock made an intraday low of A$5.5 and closed at A$5.67 as on 24th May 2019.

 1 Year stock performance of Kogan.com (Source: Thomson Reuters)


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