5 Trending Consumer Discretionary Stocks - KGN, BGP, SLK, PBH, RDC

  • Nov 27, 2019 AEDT
  • Team Kalkine
5 Trending Consumer Discretionary Stocks - KGN, BGP, SLK, PBH, RDC

Companies that offer products and services like durable goods, apparel, entertainment and leisure, and automobiles belong to the Consumer Discretionary sector. Few interesting examples may include Apple Inc., McDonalds, Walt Disney and Amazon. These can be categorised as those goods and services that are not needed but desirable, in other word, they are non-essential in nature for a consumer. If the demand for and performance of consumer discretionary companies is high in a country, it signifies good health of the economy. Let’s look at the following five Consumer Discretionary stocks listed on the ASX.

Kogan.com Limited (ASX: KGN)

Kogan is a leading consumer brand focused on developing and offering products and services that are in-demand, affordable and easily accessible as well.

October 2019 Business Update: The company released its business update for the first quarter of 2020 (1QFY20) ended 30 September 2020, informing that Kogan Mobile NZ, Kogan Money Credit Cards, Kogan Money Super, and Kogan Energy have all been launched ahead of schedule. During this period, all business vertical performed well but there was noteworthy strong growth in Exclusive Brands and continued momentum witnessed in Kogan Marketplace.

Source: AGM Presentation

Kogan.com recorded an Active Customer growth of 14% year-on-year with Active Customers totalling 1,653,000 as of 30 September 2019, higher than 1,450,000 for the prior corresponding period. During the concerned period, there was a 14.4% year-on-year growth in Kogan Mobile Active Customers and the revenue for Kogan Mobile expanded over 20% compared to 1QFY19.

While Kogan Internet Active Customers grew 347.5% year-on-year, the Kogan Insurance revenue for the period expanded by 20% compared to 1QFY19.

Stock Performance: KGN has a market cap of ~ AUD 665.23 million and ~ 93.96 million shares outstanding. On 27 November 2019, the KGN stock settled the day’s trade at AUD 7.160, edging up 1.13%. KGN has delivered positive returns of 102.87% YTD, 19.19% in the last six months and 20.61% in the last three months.

Briscoe Group Australasia Limited (ASX: BGP)

Briscoe Group Australasia Limited is a New Zealand -based retail chain operating around 84 stores across the country, with products trading under the Briscoes Homeware, Living & Giving, and Rebel Sport nameplates/brands.

Third Quarter FY 20 Results: The company released its results on 4 November 2019 for the third quarter (13 weeks) to 27 October 2019, posting total unaudited sales $ 140.3 million, up 5.67% above the $ 132.8 million posted for the same quarter in the prior year. The homeware sales improved by 4.65% to $ 87.9 million, while sporting goods sales were $ 52.4 million, depicting a rise of 7.41% from the $ 48.8 million achieved for the equivalent quarter last year. On a same store basis, the Group’s sales edged up by 4.13%.

The directors of Briscoe Group Australasia Limited also announced unaudited sales for the thirty-nine-week period from 28 January 2019 to 27 October 2019 were $443.3 million, marking an increase of 4.06% on the $426.0 million achieved for the first 3 quarters of last year.

Stock Performance: BGP’s market cap is ~ AUD 746.55 million with ~ 222.19 million shares outstanding. On 27 November 2019, the BGP stock price was placed at AUD 3.360. BGP’s YTD return stands positive at 8.39%.

Sealink Travel Group Limited (ASX: SLK)

Sealink Travel Group Limited is a tourism and transport company offering services in two diverse industries being the Transportation Industry, moving regular commuters and freight between travel destinations, and also the Tourism Industry, promoting and packaging holiday destinations, providing tours and ferrying tourists to travel destinations.

Retail Entitlement Offer: The Group informed the market on 1 November 2019, about the successful completion of the Retail Entitlement Offer of 1 for 4 pro rata accelerated non-renounceable entitlement offer of its new fully subscribed SeaLink ordinary shares at AUD 3.50 each (previously announced on 8 October 2019). The offer was well supported by eligible retail shareholders who applied for ~ AUD 33 million pursuant to their entitlements. New Shares were issued on 6 November 2019 and commenced trading on the ASX on 7 November 2019.

Stock Performance: SLK’s market cap stands at around AUD 713.09 million. On 27 November 2019, the SLK stock settled the day’s trade at AUD 4.920. SLK has delivered a positive return of 35.27% in the last six months.

Pointsbet Holdings Limited (ASX: PBH)

PointsBet Holdings Limited is a corporate bookmaker with a scalable cloud-based wagering Platform through which it offers innovative sports and racing wagering products like Fixed Odds Sports, Fixed Odds Racing and PointsBetting to its clients across Australia and New Zealand.

Leadership Changes and Colorado Update: On 11 November 2019, the company announced that Mrs Becky Harris has been nominated by the Board as a Non-Executive Director, effective the same day.

In addition, PointsBet also informed that Colorado has legalised sports betting through referendum, with Proposition DD passing, subject to the processing of postal votes. Thus, the company is looking forward to working with the Colorado Division of Gaming as they establish regulations and the company’s supportive partner Double Eagle Casino in Cripple Creek as they look to launch retail and mobile operations in 2020.

Stock Performance: PBH has a market cap of ~ AUD 642.51 million with ~ 141.21 million shares outstanding. On 27 November 2019, the PBH stock settled the day’s trade at AUD 4.500, edging down 1.099%. PBH has delivered a positive return of 55.88% in the last three months.

Recently, Regal Funds Management Pty Ltd became a substantial shareholder in the company upon purchase of 8,079,245 ordinary shares translating into a voting power of 5.72%.

Redcape Hotel Group (ASX: RDC)

Redcape is a leading pub and hotel operator in Australia. Its portfolio comprises 32 quality hotels (31 freehold and 1 leasehold) strategically located across New South Wales and Queensland and has a clear focus on delivering excellent and responsible services, maintaining high-quality facilities, advancing training and development of its people and contributing positively to the communities in which it operates.

Sale of St George Hotel: On 31 October 2019, Redcape Hotel Group Management Ltd, the holding company of Redcape Hotel Group, informed its stakeholders on the ASX that it had signed a contract to divest the St George Hotel located in Belmore, New South Wales for a value consideration of approximately $ 47.1 million, representing a 2.7% premium to the June 2019 independent valuation.

The sale demonstrated the value underpinning the Group’s portfolio of high-quality freehold assets, many of which are located in the highly populated areas of Sydney. Redcape also confirmed in this announcement that FY20 guidance for its business would remain the same post settlement of the above sale.

Stock Performance: Redcape has a market capitalisation of around AUD 609.77 million with ~ 551.82 million shares outstanding. On 27 November 2019, the RDC stock price settled the day’s trade at AUD 1.095, edging down 0.905% by AUD 0.010.


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