Kogan Reaches New All-Time High as Shares Rise by 6% (ASX:KGN)

Last month I posed the question that Ruslan Kogan may be the Jeff Bezos of Australia. If you missed it, you can read all about it here.

Long story short, Kogan has built his business into an empire. One that operates as an e-commerce platform, just like Bezos’ Amazon.

It is a strategy that is tough to pull off, especially with some big names in the sector already. Along with Amazon you’ve got the likes of Alibaba, eBay, and even Facebook.

And that doesn’t even include the independent retailers that do still own some slice of the pie.

My point is, Kogan has done a remarkable job to get to where it is today. Cementing itself as a stalwart of the modern Australian e-commerce landscape.

Which is why it’s no surprise to see Kogan.com Ltd [ASX:KGN] is reaching even greater heights. With the KGN share price breaking through the $18 mark today. A new all-time high thanks to a fantastic 6.53% gain in trading.

The reason behind this surge? Well, it seems Kogan isn’t content with mimicking just one US multibillionaire, because this week he took a leaf out of Elon Musk’s book…

Loud and proud

On Monday, Ruslan Kogan decided to forgo the usual ASX procedure for corporate news.

Typically, when a company has information to share it does so through the ASX. Making an official announcement that may be price-sensitive, or not.

In doing so, the market and investors can get any info they need from the one place. Not to mention, helping some stocks attract potential capital.

Over in the US, they have a similar system. Relying on stock exchanges to aggregate and publish news on a company’s behalf. That is, unless you’re Elon Musk.

Being the social media phenom that he is, Musk is notorious for releasing Tesla information via Twitter. A practice that has landed in him hot water with the SEC before. Because you must remember, there are rules when it comes to how and when information can be made public.

Anyway, on Monday, Kogan decided to do the same thing. Making a tweet about the performance of the recently acquired Matt Blatt. Take a look for yourself:

Source: Twitter

Now, while I doubt Kogan will get into any trouble for this tweet, it is interesting that he made it. It certainly contains more details that his usual tweets.

For this reason, it may just be an outlier. Something we won’t see again from the man behind this e-commerce giant.

Either way, it will be fascinating to see if he sticks with this method.

For now though, the more important detail for the market is the incredible turnaround. Yet another feather for Kogan’s increasingly broadening cap.

Again, it shows just how in tune the man is when it comes to modern retail. A fact that has seen his company rise up the ranks at breakneck speed.

What’s next for Kogan and retail as a whole?

The question on everyone’s mind is, just how high can Kogan go?

Honestly, at this rate, it’s looking like the sky is the limit. At least the market seems to think so.

I suspect we’ll get a clearer picture once their full-year results finally come in. Giving us the full details to dissect and analyse.

After all, Kogan only posted a net profit of $49.9 million for the first half FY20. While that’s good, they will need a much bigger result for the full year to justify their recent growth. And it is almost certain that it will be bigger — we just don’t know by how much.

There is a lot of value to the Kogan brand, it’s just not necessarily all quantifiable just yet. In time though, that should change. And when it does, investors may reap even more reward.

However, it isn’t the only innovative stock out there.

If you’re looking for companies with a high value proposition and exponential potential, then you need to check out this report.

We’re in the midst of a massive boom for select stocks right now. Companies that may be about to secure their breakout moment, just like Kogan has.

It’s an exciting time for those who know how to make the most of this volatile market.


Ryan Clarkson-Ledward,
For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:

Money Morning Australia