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  • Novavax gets U.S. defense funding for its COVID-19 vaccine

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  • The Kogan share price is surging higher following another positive business update

    shopping trolley next to laptop, asx 200 retail shares, kogan share price

    The Kogan.com Ltd (ASX: KGN) share price is surging higher this morning following another strong business update.

    Kogan has provided the market with an update of how it has performed during the fourth quarter to date, in light of the coronavirus crisis.

    The Kogan share price has been experiencing a very strong rally in recent months. Kogan shares dropped to a low of $3.45 in mid-March but closed yesterday at $11.40. That’s a massive 230% increase. The rally has been particularly strong since mid-May and appears set to continue based on morning trade today. At the time of writing, Kogan’s share price has already climbed nearly 9% since the market opened.

    The S&P/ASX 200 Index (ASX: XJO) in comparison, has seen a much more modest recovery since the March crash.

    Customer base and sales continue their upward trajectory

    Kogan revealed today that its active customer base has continued on a strong growth trajectory. There were an additional 126,000 active customers added during May to now total 2,074,000. That’s an increase of 6.5%.

    Gross sales for Kogan soared higher by more than 100% in the fourth quarter to date (April and May), compared to the equivalent period in 2019.

    Kogan previously revealed to the market that the pipeline for new sellers in its Kogan Marketplace remains very strong. This is helping to boost the company’s strong sales momentum and, as such, the Kogan share price.

    Profitability continues to climb

    Kogan’s profitability also continues to improve. The company’s gross profit increased by more than 130% during April and May.

    EBITDA growth was even more impressive. Adjusted EBITDA climbed by more than 200% in the prior two months, compared to the corresponding period.

    When EBITDA is adjusted for the financial year to date, it grew by more than 50%. Also, a very impressive result.

    Kogan’s strong growth during the last two month follows on from a very strong March quarter. The Aussie ‘etailer’ revealed back then a strong 30% increase in gross sales and a 23% jump in gross profit during the March quarter.

    There has been a sharp increase in spending at online retail sites such as Kogan and Amazon since lockdown restrictions were implemented. With more Australians working from home, Kogan has been cashing in on strong demand for goods such as PCs and laptops. Also, other home office accessories as well as home fitness equipment have proven very popular with Aussies isolating at home. Whilst many companies have suffered significant revenue losses due to the COVID-19 crisis, the pandemic has largely been good news for the Kogan share price.

    Where to next for the Kogan share price?

    In more good news, Kogan also revealed today that it ended the month of May with $58.6 million of cash on its books. The company also has a debt facility which was drawn to $26.0 million. So, its cash position is fairly solid. As mentioned, Kogan’s share price is up by another massive 9% to be trading at $12.41. However, with such a strong rally since mid-March, I feel that Kogan may see some high share price volatility in the months ahead.

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    Motley Fool contributor Phil Harpur owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post The Kogan share price is surging higher following another positive business update appeared first on Motley Fool Australia.

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  • Seanergy’s Shipping Rates Set to Rebound While Equity Raises Will Reduce Debt, Says Analyst

    Seanergy’s Shipping Rates Set to Rebound While Equity Raises Will Reduce Debt, Says AnalystTaking the term penny stock to a whole new level, we have Seanergy Maritime (SHIP). Shares are going for $0.12 apiece following another year of massive share price depreciation. The stock is down by 78% so far in 2020. Zoom out by five years and add in bouts of shareholder dilution, and the stock is only 0.25% away from a 100% decline.However, not all hope is lost. In fact, Maxim analyst Tate Sullivan remains firmly in the shipping company’s corner.Sullivan has a Buy rating on Seanergy based on his “outlook for SHIP to use recent equity proceeds to reduce and/or extend debt maturities, as well as our forecast for an eventual rebound in international shipping activity and higher rates.”Having said that, the decline in shipping rates means the price target is reduced from $0.40 to $0.30. Despite the trim, the potential upside from current levels is a lofty 120%. (To watch Sullivan’s track record, click here)After equity was raised through four public offerings in Q1 – amounting to roughly $25 million – Seanergy recently disclosed that over the last two weeks, it raised another $9.9 million from warrant exercises.Sullivan believes the proceeds will go towards further reducing debt, and forecasts debt of $196.8 million by the end of the year – down from the prior estimate of $206.3 million. Looking ahead, the analyst is optimistic, expecting “continued debt paydown in 2020.”“We estimate SHIP will reduce debt by $28.7 million in 2Q20. Our forecast includes the use of net proceeds from equity raises of $36.8 million (our estimate). In addition, we forecast debt reduction of $8.8 million in the second half of 2020 based on generating free cash flow,” said Sullivan.It should be noted that the Baltic Capesize Index has been particularly volatile in 2020, increasing by more than 370% in April as factory and port activity in China ramped up after COVID-19 lockdown measures were loosened. The index then dropped sharply in May, falling 66% from the previous month, mainly because of lower international demand for iron ore.Additionally, iron ore exports from Brazil, one of the world’s current COVID-19 hotspots, could experience further delays as a result of the pandemic. That said, Sullivan expects things to pick up later in the year.“We continue to forecast a rebound in rates after 2Q20, but from a slightly lower base,” the analyst concluded.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. More recent articles from Smarter Analyst: * 3 Under-The-Radar Cannabis Stocks Ready to Bounce * Ebay Lifts Quarterly Sales and Profit Forecast; Shares Jump To All-Time High * 3 “Strong Buy” Penny Stocks That Could See Outsized Returns * Amazon Is Mulling To Buy $2 Billion Stake In Indian Telecom Bharti Airtel

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