The Kogan.com Ltd (ASX: KGN) share price will be one to watch today after the ecommerce company expanded its offering with an acquisition.

What has Kogan acquired?

This morning Kogan announced that it has acquired replica furniture and homewares retailer Matt Blatt.

Matt Blatt is a family-run business that was founded in 1981. In FY 2019 it recorded $46.5 million of revenue, of which ~20% to 25% came from its online business.

In March the company was in financial distress because of the coronavirus pandemic and revealed to Inside Retail that it had called in advisors to facilitate a potential sale. A number of parties were believed to be interested, but Kogan has proven to be the successful suitor.

It has acquired the company’s intellectual property and goodwill for a purchase price of $4.4 million. This has been funded by the company’s cash reserves.

Based on FY 2019’s online sales of ~$10.45 million, this represents an attractive multiple of 0.42x sales. As a comparison, Kogan’s shares are changing hands for 1.45x FY 2019 gross sales.

What now?

Kogan will relaunch the business as an online-only offering and go head to head with the likes of Adairs Ltd (ASX: ADH) and Temple & Webster Group Ltd (ASX: TPW).

Kogan’s founder and CEO, Ruslan Kogan, commented: “We are pleased to bring the iconic Matt Blatt brand into new ownership, and relaunch the business as an online-only offering. Our acquisition of Matt Blatt gives us a springboard from which to expand our reach in the furniture and homewares market.”

“We will be drawing on Matt Blatt’s decades of industry expertise and combining it with Kogan.com’s technology, systems and infrastructure to deliver a market-leading offering. We look forward to serving and delighting furniture and design lovers all over Australia,” the chief executive concluded.

More reading

• 3 ASX shares to buy for growth and income
• ASX small-cap sector rallies strongly during April
• These ASX shares are set to dominate the post-COVID-19 economy
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• With Aussie wages set to fall, could ASX 200 shares follow?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group 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.

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If you are looking for market-beating returns over the next decade, then the three growth shares listed below could be the ones to buy.

I think their strong growth prospects means that investors could at least double their money with them over the next 10 years.

Here’s why I would buy them:

Altium Limited (ASX: ALU)

I think Altium has the potential to deliver very strong returns for investors over the next decade. This is due to its high quality electronic design software, its massive market opportunity, and its exposure to the rapidly growing Internet of Things (IoT) market. This year Altium expects to achieve 50,000 subscribers. After which, it is aiming for 100,000 subscribers by FY 2025. Combined with its other growing businesses such as NEXUS and Octopart, I feel Altium is well-placed to grow its earnings at a rapid rate for many years to come.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another great option could be Domino’s Pizza. Its growth other the last few years as been a little up and down, but I remain confident the long term trajectory is upwards. Especially given its same store sales and store expansion goals. Over the next five years the pizza chain operator is aiming to deliver annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. If it can at least maintain its margins, this should support strong earnings growth over the next decade.

Pushpay Holdings Ltd (ASX: PPH)

A final growth share to buy for market-beating returns is Pushpay. The donor management system provider has just released its full year results and revealed a stunning ~1,500% increase in EBITDAF in FY 2020, The good news is that more strong growth is expected over the next 12 months, with management aiming to double its EBITDAF in FY 2021. But it isn’t about to rest on its laurels any time soon. The company has set itself a target of winning a 50% share of the medium and large church market. This represents a US$1 billion revenue opportunity for Pushpay. This compares to the operating revenue of US$127.5 million it recorded in FY 2020.

More reading

• 3 top ASX 200 shares every investor should buy
• 3 quality mid cap ASX shares to buy with $3,000
• ASX shares I’d invest $10,000 into today
• How to build good wealth with small investments
• Top brokers name 3 ASX 200 shares to buy 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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) followed the lead of U.S. markets and sank notably lower.

While the majority of ASX shares tumbled lower with the market, some fell more than most.

Three ASX 200 shares that hit multi-year lows are listed below. Here’s why they are down in the dumps:

Bank of Queensland Limited (ASX: BOQ)

The Bank of Queensland share price sank to a 20-year low of $4.51 on Thursday. Weakness in the banking sector, a dilutive capital raising, the deferral of its dividend, and a weak half year result have all weighed heavily on Bank of Queensland this year. In respect to its results, the regional bank posted half year cash earnings after tax of $151 million. This was down 10% on the prior corresponding period. Judging by its share price performance, investors appear to believe things will get worse before they get better because of the pandemic.

Orocobre Limited (ASX: ORE)

The Orocobre share price dropped to a multi-year low of $1.82 yesterday. This lithium miner has been sold off again this year due to weak prices of the battery making ingredient and the forced shutdown of its Argentinian operations during the pandemic. Unfortunately for Orocobre and its peers, many analysts believe that a recovery in the lithium price has been pushed back because of the crisis. This could mean another difficult 12 months for Orocobre.

Unibail-Rodamco-Westfield (ASX: URW)

The Unibail-Rodamco-Westfield share price tumbled to an all-time low of $3.65 on Thursday. This latest decline means the shopping centre operator’s shares have lost 68% of their value of the last 12 months. Unibail-Rodamco-Westfield’s shares have come under significant pressure during the pandemic because the majority of its shopping centres have been forced to close. In addition to this, it has warned that it is difficult to judge the impact on the contractual obligations of its retailers and to estimate the effect of any case-by-case support measures it may offer tenants.

More reading

• 5 things to watch on the ASX 200 on Friday
• Is this ASX 200 REIT a bargain right now?
• ASX 200 drops 1.7%, Xero reports a profit
• ASX fundie says ASX 200 was more volatile in March than during the GFC
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?

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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While I think that Commonwealth Bank of Australia (ASX: CBA) would be a good option for income investors, not everyone is keen on the banks right now.

For those investors, I have picked out three non-bank dividend shares which I think would be good alternatives.

Here’s why I like them:

BWP Trust (ASX: BWP)

The first dividend share to consider buying is BWP. It is a real estate investment trust with a focus on warehouses. Most of its warehouses are leased to hardware giant Bunnings, which is owned by Wesfarmers Ltd (ASX: WES). I think Bunnings is arguably the highest quality retailer in the country and likely to stay in its warehouses for the long term. As a result, I believe BWP’s earnings are very defensive and it is well-placed to grow its distribution in the future. At present I estimate that it offers investors a 5.2% yield.

Coles Group Ltd (ASX: COL)

This supermarket giant could be a great alternative to the banks. Unlike the banks, it appears well-placed to continue its sales growth whatever economic conditions it is facing. In addition to this, with the company aiming to strip out costs materially and embrace new technologies, I expect its margins to improve over the next decade and support solid earnings and dividends growth. In FY 2021 I estimate that its shares will provide investors with a fully franked dividend yield of 4.2%.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

A final option for income investors to consider is Sydney Airport. Although I suspect its dividends may be limited in 2020 due to the material decline in passenger numbers, I believe they will both bounce back in 2021 and 2022. This could make it worth being patient and buying shares with a long term view. A recent note out of Goldman Sachs reveals that it expects Sydney Airport to pay a 27 cents per share distribution in FY 2021 and then a more normal 37 cents per share distribution in FY 2022. This represents a 4.9% and 6.7% yield, respectively.

More reading

• 5 things to watch on the ASX 200 on Friday
• 4 top ASX 200 shares for blue chip investors
• Leading broker names CBA shares as a sell
• Top brokers name 3 ASX shares to sell right now
• ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. 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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Is the Xero Limited (ASX: XRO) share price a buy? Investors didn’t think so yesterday as the Xero share price dropped 4.8% in reaction to the FY20 result.

Xero FY20 result

I thought the FY20 report was actually good from Xero, it’s just that investors were seemingly expecting even more from the result and outlook.

Xero reported that free cash flow increased by 320% to NZ$27.1 million. Net profit after tax (NPAT) came in at $3.3 million, an improvement from the NZ$27.1 million loss in FY19. As free cash flow grows it should mean investors are more willing to pay for a higher Xero share price over time.

Total subscribers rose by 26% to 2.285 million and average revenue per user increased by 2% to NZ$29.93. Operating revenue increased by 30% to NZ$718 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 88% to NZ$137.7 million.

One of the most attractive parts to me was that the gross margin increased from 83.6% to 85.2%.

Subscriber number growth was good across the world. North American subscribers grew 24% to 241,000, UK subscribers grew 32% to 613,000, Australian subscribers grew by 26% to 914,000, New Zealand subscribers rose 12% to 392,000 and the rest of the world subscribers rose by 51% to 125,000.

Is the Xero share price a buy?

Xero said that whilst FY20 was strong, trading in early FY21 has been impacted by the coronavirus. Uncertainty meant it would be speculative for the company to say anything else about FY21 expectations.

However, the company did say that it still aims to be a long-term orientated, high-growth business. That’s a good sign, but obviously not surprising. 

After a share price fall of 5% for Xero, I think it looks a bit better at under $80. The question will be how many businesses will permanently fold as a result of the coronavirus crisis. How many subscribers will Xero lose from its total?

Keep in mind that the interest rate in Australia and New Zealand is now incredibly low. This should mean that growth is even more valuable. I’d be happy to buy a small parcel of Xero shares at this price, but I’d be wary about buying too much because of the high expectations built in at this level.

More reading

• ASX 200 drops 1.7%, Xero reports a profit
• Got $5,000 to spend? Here are 5 ASX shares you can buy today
• 2 exciting ASX tech shares to buy right now
• ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs
• Why Beach, CBA, Qantas, & Xero shares are dropping lower

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell a disappointing 1.7% to 5,328.7 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 set to rebound.

The ASX 200 looks set to rebound from this decline on Friday. According to the latest SPI futures, the benchmark index is expected to jump 0.95% or 51 points at the open. This follows a wild night of trade on Wall Street which eventually saw the Dow Jones rise 1.6%, the S&P 500 climb 1.15%, and the Nasdaq push 0.9% higher.

Big four banks to rise?

Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks could be on the rise today after their U.S. counterparts had a strong night of trade. Bank of America and JPMorgan climbed over 4%, whereas Citigroup ended the session 3.6% higher and Wells Fargo rose almost 7%.

Oil prices rocket.

It looks set to be a positive finish to the week for energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL). According to Bloomberg, the WTI crude oil price is up 10% to US$27.82 a barrel and the Brent crude oil price has jumped 7.5% to US$31.38 a barrel. A dip in U.S. stockpiles sent oil prices charging higher.

Gold price jumps higher.

Australian gold miners including Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) could be on the rise today after another positive night for the gold price. According to CNBC, the spot gold price is up 1.4% to US$1,739.90 an ounce. Traders have been buying the precious metal amid concerns over recession and trade war risks.

National Storage given sell rating.

The National Storage REIT (ASX: NSR) share price could come under pressure today after Goldman Sachs slapped a sell rating on the storage giant’s shares. The broker expects higher unemployment and softer economic activity to lead to lower revenues in the medium term. Goldman Sachs has a $1.56 price target on the company’s shares.

Returns as of 7/4/2020

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.

More reading

• 4 top ASX 200 shares for blue chip investors
• Is this ASX 200 REIT a bargain right now?
• ASX 200 drops 1.7%, Xero reports a profit
• Leading broker names CBA shares as a sell
• ASX fundie says ASX 200 was more volatile in March than during the GFC

The post 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

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