Is it time to take profits in Kogan?
In the nine months since June 2017, the share price of Kogan (ASX: KGN), Australia’s online retailer, has soared by almost 460 per cent. But is this Amazon style company now over-priced? For an answer to that, look no further than the recent stock sales by KGN directors.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Justin Carroll
:
Short KGN.
jeffrey poon
:
It’s amazing how they can make any money on mobile when they give their products away.
https://www.ozbargain.com.au/node/362359
it certainly isnt hard to get exponential growth when you do such a thing.
All those churners are loving it.
Greg McLennan
:
So would you consider shorting Kogan given the extravagant price, insider selling and industry headwinds?
The trout are biting down here too, by the way.
Roger Montgomery
:
G’day Greg,
I hope you’re well and thanks for the update. Shorting requires a framework and a portfolio approach (many small positions). Some look for a catalyst while others require an industry or structural headwind, a problem balance sheet with asymmetric risk, misperceptions about the financials – for example a fraud or divergent expectations between the market and the investor, or some or all of the above.
ryan eagle
:
So how to short
Peter
:
Hi Roger, one could ask a similar question about Altium. Do you have a view on this that you’d be willing to share?
Roger Montgomery
:
Hi Peter, stay tuned. We no longer own Altium (that is not suggesting a view however on how we think the shares will perform).