The Kogan.com Ltd (ASX: KGN) share price has been a very strong performer in recent weeks but won’t be going anywhere on Wednesday.

This morning the ecommerce company requested a trading halt prior to the market open.

Why is the Kogan share price in a trading halt?

Kogan has taken advantage of the recent surge in its share price to raise capital via a placement and share purchase plan.

The company revealed that it is aiming to raise a total of $115 million. This comprises a $100 million fully underwritten placement at $11.45 per share and a non-underwritten share purchase plan to raise up to $15 million.

The placement price represents a 7.5% discount to its last close price.

Why is Kogan raising funds?

The company revealed that it intends to use the proceeds from the placement and share purchase plan to provide the financial flexibility to act quickly on future value accretive opportunities that broaden the company’s offering, expand its customer base, or enhance its operating model.

Last month Kogan announced that it had acquired replica furniture and homewares retailer Matt Blatt for $4.4 million. But judging by this capital raising, it doesn’t plan to stop there.

In fact, the company notes that multiple opportunities are presenting themselves. Though, it will focus only on opportunities that it believes add value.

Kogan’s CEO, Ruslan Kogan, commented: “Kogan.com is committed to making the most in-demand products and services more affordable and accessible. Our long-term strategy has enabled us to thrive in the current challenging environment, and we are now in a better position than ever to take advantage of growth opportunities. Our low cost of doing business and digital expertise have put us in the driver’s seat to capture market share as the retail industry undergoes significant change.”

More reading

• ASX winners and losers from last week’s rally
• Can Kogan.com survive Amazon?
• The Kogan share price makes it 5 times bigger than Myer
• Why I’d buy Appen and these ASX growth shares for the 2020s
• How I would invest $50,000 into ASX shares right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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There is a belief that to invest in S&P/ASX 200 Index (ASX: JXO) shares you need to be a part of the ‘rich person’s game’ and that it’s out of reach for the average Joe on the street.

It’s easy to understand why. In popular culture, the only investors we hear about are rich scoundrels. Think about it: Gordon Gekko, Jordan Belfort… these guys were hardly model citizens.

Up until recent years, it was quite difficult to start investing. You had to find a stockbroker, pay them through the nose, and try and find winners in the pages of your daily newspaper.

Now, it’s a different world. You can literally buy shares in under a minute through an online broker, all without having to pay usurious brokerage fees and commissions. Anyone can access a company’s annual report with the click of a button and read 100 different investor’s opinions about a share without leaving their desk.

This might not have been great for the finance industry, but it has undoubtedly been for the average Australian. Democracy has come to the share market.

Why it’s important to invest in ASX 200 shares

But with this power has come responsibility. In days of yore, investing wasn’t really necessary. The government promised to fund everyone over 65s retirement through the Age Pension. Sure, you could top this up with some cash. But with a bank account or term deposit typically paying real interest rates, you didn’t really need to ‘take a punt’ on the share market.

As comfortable as that world might sound, we live in a different one today. With interest rates at close to zero, cash instruments like term deposits don’t really cut the mustard as a real investment anymore. Job security is more or less a thing of the past. Most of us won’t be working with a single employer for our whole lives. And the Age Pension has moved from a ‘universal income’ to a ‘safety net’. Considering our ageing population, I have severe doubts over its long-term viability.

That’s why, in my view, investing is no longer optional. And investing in ASX 200 shares are a great place to start. Now, there are other ways of building wealth, such as property. But ASX shares have several advantages making them an ideal pathway for wealth creation in my opinion.

You can start with as little as $500, for one.

Shares are liquid, which means (unlike a house) you can buy and sell them easily for another.

And many shares will pay you tax-advantaged income (in the form of fully franked dividends) along the way.

So if you haven’t already started to invest in 2020, why not take the plunge? Your future self will undoubtedly thank you for not putting it off. And in this brave new world we live in, I don’t think any of us can afford not to.

More reading

• These ASX shares could defy the market sell-off this morning
• Is the Woodside Petroleum share price cheap today?
• 5 things to watch on the ASX 200 on Wednesday
• Why you should be buying the dip in ASX gold stocks
• Why the CSL share price continues to trail the ASX 200

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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The Harvey Norman Holdings Limited (ASX: HVN) share price is trading flat on Wednesday after releasing a sales update.

At the time of writing the retail giant’s shares are changing hands for $3.55.

What did Harvey Norman announce?

Today’s update reveals that Harvey Norman’s Australian business has been on form during the pandemic.

During the crisis, only two franchised stores in Tasmania were closed for two weeks due to a mandated closure of the region by the Tasmanian State Government.

All other Australian franchised stores remained open. This was because, like supermarkets, Harvey Norman was seen as an essential service by the Australian Government during the crisis.

In light of this and increasing demand for many of its products, as of 31 May 2020, the Harvey Norman franchise network has delivered a 17.5% increase in sales in the second half.

This compares to just a 0.1% increase in sales during the first half and means that its year to date sales are up 7.4% on the prior corresponding period.

What about the rest of the business?

Things weren’t quite as positive for its overseas operations, where the vast majority of its stores were forced to close for certain periods during the pandemic.

In Australian dollar terms, New Zealand company operated sales are down 7.3% during the second half. It was a similar story in Slovenia and Croatia, with sales down 5.5% half to date.

Things were much worse in Northern Ireland and Singapore. Second half sales were down 38.2% and 21.7%, respectively, as of 31 May.

Positively, its Ireland and Malaysia stores were still growing their sales. Ireland sales are up 25.4% during the second half and Malaysia sales are up 1.3%.

Special dividend.

In April, Harvey Norman revoked its decision to pay shareholders a 12 cents per share interim dividend due to the pandemic.

It appears as though things haven’t turned out as bad as it first feared. As a result, it has decided to pay a special dividend to shareholders later this month.

Harvey Norman will pay a 6 cents per share fully franked dividend on 29 June 2020. To be eligible, you will need to be a registered shareholder at the close of business on 23 June 2020.

More reading

• How to build a $20,000 passive income with ASX shares
• Can ASX 200 retail shares outperform this year?
• ASX retail shares best placed to benefit from wall of industry bankruptcies
• How to be an ASX 200 share millionaire in 15 years
• The Aussie dollar just hit an 8-week high. Here’s how it affects your ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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