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The Magellan Financial Group Ltd (ASX: MFG) share price rocketed on Friday.

This came on the back of the company’s impressive FY22 first-half results, declaring a monster dividend for shareholders.

The fund manager’s shares surged to an intraday high of $22.01 before settling back to $21.70, up 18.45% at market close.

Earlier this month, Magellan shares hit a multi-year low of $16.14 after the company delivered two disappointing announcements. If you were brave enough to pick up its shares during this time, you’d be sitting on a 35% gain.

Below we take a look at Magellan’s latest financial performance and its huge interim dividend for investors.

What’s the lowdown on the Magellan dividend?

In the half-year report for the 2022 financial year, Magellan reported double-digit growth across key metrics.

In summary, average funds under management (FUM) increased by 12% to $112.7 billion over the previous corresponding period. This was primarily driven by investment performance and also by client inflows, outflows and distributions to clients.

Overall, net profit after tax (NPAT) rose to $251.6 million, a lift of 24% compared to $202.3 million in the prior year.

Based on Magellan’s robust performance, its board declared a partially franked interim dividend of 110.1 cents per share. This represents a 13.4% decline from the 97.1 cents declared in the prior comparable period.

Management noted that its policy is to pay out a dividend between 90% to 95% of profit after tax of the group’s funds management business.

When can Magellan shareholders expect payment?

Magellan will pay the interim dividend to eligible shareholders on 8 March.

However, to be eligible you’ll need to own Magellan shares before the ex-dividend date which falls on Wednesday 23 February. This means if you want to secure the dividend, you will need to purchase Magellan shares by tomorrow at the latest.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

The post Here’s what you need to know about the Magellan (ASX:MFG) monster dividend appeared first on The Motley Fool Australia.

More reading

• These were the best performers on the ASX 200 last week
• Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher
• ASX 200 (ASX:XJO) midday update: QBE sinks but Magellan rockets
• ‘Robust financial position’: Magellan (ASX:MFG) share price surges 13% on half-year earnings
• Is the Magellan (ASX:MFG) share price a smart contrarian buy?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX tech shares have the ability to produce attractive profit growth over the long-term, which may help deliver good returns.

Businesses that use a lot of technology for their offering can benefit from operating leverage as they scale.

With that in mind, here are two ASX tech shares that could make compelling long-term investments:

Betashares Global Cybersecurity ETF (ASX: HACK)

This is an exchange-traded fund (ETF) that specialises in giving investors exposure to some of the world’s leading businesses in the cybersecurity space.

There is so much information and other things (like online banking) done online now that they make a tempting target and, sadly, the number of cyber-attack attempts is also increasing.

It’s up to some of the businesses in this ETF’s portfolio to keep businesses, governments and individuals safe.

At the latest disclosure, these are the 10 largest holdings of the ASX tech share: Cisco Systems, Palo Alto Networks, Accenture, Crowdstrike, Check Point Software, Juniper Networks, Cloudflare, VMware, Leidos and Mandiant.

The Betashares Global Cybersecurity ETF has an annual management fee of 0.67%.

Past performance is not a guarantee of future results. However, the Betashares Global Cybersecurity ETF has returned an average of 20.3% per annum since inception in August 2016.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading e-commerce business that sells beauty products. It says it sells 11,700 products from more than 270 brands.

The company recently announced its FY22 half-year result which showed record revenue and customer numbers.

Half-year revenue was up 18% to $113.1 million. Active customers rose 13% to 876,000 and returning customers grew by 56%. Despite this, the Adore Beauty share price is down 41% this year.

Profitability also continues to grow at the company. The gross profit margin was 33.1%, an increase of 0.6 percentage points, underpinned by product margin expansion and brand funding according to the company.

The ASX tech share generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.8 million, with an EBITDA margin of 3.3%. This was in-line with guidance and reflected the re-investment.

Adore Beauty is investing heavily for growth, with areas like content engagement, brand building and growing its organic channels. Owned marketing channels are positively impacting marketing costs, which are trending significantly below industry inflation.

Investment areas for the business include its private label, mobile app, loyalty and adjacency expansion. It wants to capture as much market share as it can of the $11 billion market which is benefiting from significant structural tailwinds. The first private label skincare brand is expected to launch in the fourth quarter of FY22.

UBS is one of the brokers that currently rate Adore Beauty as a buy, with a price target of $4.70. That suggests a potential upside of almost 100% over the next year. The broker thinks that the ASX tech share will be able to deliver good compound growth of revenue over the coming years.

The post Is now the time to buy these 2 great ASX tech shares? appeared first on The Motley Fool Australia.

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• Why Adore Beauty, Beach, Fortescue, and Praemium shares are falling
• You beauty! Adore Beauty (ASX:ABY) share price up 7% after record half year result

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Adore Beauty Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The good news for income investors in this low interest rate environment, is that there are plenty of ASX shares offering attractive dividend yields.

Two such dividend shares are listed below. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is BWP. It is a commercial property company with a focus on warehouses. The vast majority of these warehouses are leased to Bunnings Warehouse, which actually makes BWP the largest owner of the hardware giant’s properties.

Thanks largely to the strength of the Bunnings business, it has been a positive performer over the last couple of years and has been able to collect rent largely as normal. This was the case again during the first half of FY 2022, with BWP recently reporting a 97.6% occupancy rate and 2.2% like for like rental income growth.

In FY 2021, BWP paid an 18.29 cents per unit distribution. It intends to pay a similar distribution in FY 2022. Based on the current BWP share price of $4.02, this will mean a 4.55% dividend yield.

National Storage REIT (ASX: NSR)

Another ASX dividend share for income investors to look at is National Storage. It is one of the ANZ region’s largest self-storage operators. National Storage currently operates over 200 storage centres and provides tailored storage solutions to almost 100,000 residential and commercial customers.

It has been a positive performer as well over the last few years. This has been underpinned by a combination of organic growth and the benefits of acquisitions. And despite the size of its network, management believes there’s still plenty more acquisition opportunities in this fragmented market to drive its future growth.

In FY 2022, management is guiding to ~10% underlying earnings per share growth. If it were to grow its distribution in line with its earnings, it would mean a distribution of 9.02 cents per share. Based on the current National Storage share price of $2.47, this would equate to a yield of 3.65%.

The post 2 ASX dividend shares with good yields appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive yields
• Dividend downer? BWP (ASX:BWP) share price slips following first-half results
• How are ASX Real Estate Investment Trusts (REITs) performing in 2022?
• 2 top ASX dividend shares with good yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Charter Hall Long WALE REIT (ASX: CLW) share price could be one of the most compelling ASX dividend share options for income.

It’s a real estate investment trust (REIT) that owns a large portfolio of different properties.

Whilst it isn’t the biggest REIT on the ASX, it is building a reputation as being one of the most dependable for dividends. It’s rated as a buy by a few different brokers, including Citi. Here are some of the reasons why it’s attractive:

Diversification

It has a property portfolio that is now worth $7 billion, which the business describes as high-quality and diversified. There are 549 properties, with 79% of them located on the eastern seaboard of Australia.

The portfolio is diversified across different sectors including agri-logistics (4%), social infrastructure (13%), office (19%), industrial and logistics (21%), hospitality (22%), convenience retail (11%) and ‘diversified long WALE retail’ (9%).

Nearly all of the tenants are blue chip tenants – 99% are either government, ASX-listed, multinational or national. Some examples include the Australian Government, Telstra Corporation Ltd (ASX: TLS), BP and Endeavour Group Ltd (ASX: EDV).

Yield

The ASX dividend share is expecting to pay a distribution of at least 30.5 cents per security. Charter Hall Long WALE REIT typically pays a distribution of 100% of operating earnings.

Assuming a payout of 30.5 cents, that translates to a current distribution yield of 6.1% at the current Charter Hall Long WALE REIT share price.

Morgan Stanley, one of the brokers that rates the business as a buy (with a price target of $5.85), thinks that the REIT will pay a distribution of 6.4% in FY23.

Reliability and organic growth

The REIT is proud of its income security. It has a portfolio weighted average lease expiry (WALE) of 12.2 years. Management says that this provides insulation from market shocks. It also gives investors a lot of visibility and security about the rent.

Rental income growth is driven by annual rent increases in all leases. Around 46% of leases are linked to CPI with a 3.3% weighted average increase in the first half of FY22. The other 54% of leases have fixed increases, with an average fixed increase of 3.1%.

This has allowed the business to continue growing the distribution per security by an average of 3.7% per annum since it listed several years ago.

In FY22 it’s expecting to grow the distribution by at least 4.5%, adding to the ongoing growth.

Charter Hall Long WALE REIT share price valuation

At the time of writing, the REIT’s share price is at $5.01. That compared to the net tangible assets (NTA) of $5.89 at 31 December 2021. That implies a discount of around 15%.

The post 3 reasons why the Charter Hall Long WALE REIT (ASX:CLW) share price is a top buy for dividends appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares that could provide steady passive income
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• Charter Hall Long WALE REIT (ASX:CLW) just boosted its dividend. Here’s what you need to know
• 2 ASX dividend shares that could be buys with yields above 5%

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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While “buying and holding” is the philosophy favoured by Warren Buffett and The Motley Fool, it would be foolish to suggest that’s the only way Australians are investing in ASX shares.

Your own personality, risk appetite, time constraints and self-belief will combine to lead to an investment style that you’re most comfortable with.

Are you patient or impatient? Do work and family commitments prevent you from pouring too much time into research? Do you need to fiddle and tinker with your portfolio, or can you let it be?

While there are many variations, a stockstotrade.com blog post managed to classify stock investors into 4 distinct styles.

It can be helpful to identify what type of investor you are and how other people may approach money-making differently to the way you do:

1. Position trading

This is the style that most closely resembles “buy and hold”.

You research the fundamentals of a business. If you decide that it has a bright future, you buy the shares.

Then you wait. Months or even years. You’re in it for the long haul.

“You’ll need a lot of patience and belief in your decisions,” stated the stockstotrade.com blog.

“No matter how many ups and downs the market experiences, you have to ride out the storms to reach your goals.”

While buy-and-hold may not demand much daily portfolio maintenance time, any ASX shares that you commit to must have serious research behind it.

“There’s no way around it. Would you put your money into a single company for years at a time not knowing much about it? I sure hope not!”

2. Swing trading

This involves holding ASX shares for a period of a few days, weeks or maybe months.

Swing traders aim to take advantage of momentum and sentiment for particular stocks. As well as researching fundamentals of the business, they will also follow technical indicators of the stock price too.

They might hold a stock from one ex-dividend date to just before the next one. They might hold it from one quarterly earnings to another.

According to the blog post, this strategy demands at least a couple of hours each day to analyse the market and to execute.

Swing traders end up making about 25 to “a few hundred” trades each year.

3. Day trading  

The term ‘day trading’ can evoke many different connotations to people.

But essentially it is defined as an investor who will sell out of all their positions within the same day.

If they hold anything overnight, that becomes a swing trade.

Day traders aim to profit from very short-term movements in the share price.

According to stockstotrade.com, while day traders must be glued to their computer screens all day, they’re not necessarily buying and selling the entire time.

“Most traders take positions at two key times — at the market open and close. That can mean more time for other things mid-day,” the blog reads.

“But you must do your homework the night before and in pre-market. Prepare for the action.”

Day traders understandably make hundreds to thousands of transactions each year.

4. Scalp trading

This is the fastest-paced strategy available to a retail investor. Shares are only held for a few seconds or minutes.

“Scalp trading demands high focus, concentration, and attention to detail,” stated the blog.

“So you need to be OK with spending long hours in front of your screens.”

These investors are looking for minute-to-minute movements up and down, based on technical analysis of the stock price movements. Very rarely are company fundamentals involved in these fast decisions.  

You also need a decent lump of capital to get started.

“You learn the results of your trade fast and move on fast,” the blog reads.

“You don’t want to take negative emotions from a losing trade into your next trade. You have to accept your last trade and move on to the next.”

Funnily enough, this rapid action method still demands patience from the investor.

“You need to stay glued to your screen throughout the trading day. Then when you find the best setups, it’s time to act fast!”

The post Which one are you? The 4 different styles of trading ASX shares appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The A2 Milk Company Ltd (ASX: A2M) share price will be on watch this morning.

This follows the release of the struggling infant formula company’s half year results today.

A2 Milk share price on watch after posting big earnings decline

• Revenue down 2.5% over the prior corresponding period to NZ$661 million
• EBITDA down 45.3% to NZ$98 million
• Net profit after tax down 53.3% to NZ$56 million
• Net cash of NZ$667 million

What happened during the first half?

For the six months ended 31 December, A2 Milk reported a 2.5% decline in revenue to NZ$661 million. This was driven by a 10.5% reduction in infant nutrition revenue to NZ$471 million, a 0.2% lift in Liquid milk revenue to NZ$125 million, and a 143.3% jump in other revenue to NZ$65 million. Other revenue includes revenue from its Mataura Valley Milk (MVM) business, which was acquired at the end of FY 2021. MVM revenue was down 8.2% year on year.

Management advised that its first half revenue was impacted by a number of factors, including the lower birth rate and rapidly changing market dynamics in China.

As was widely expected, A2 Milk’s margins were crunched during the period. Management advised that this reflects gross margin pressures, such as adverse product mix and cost headwinds, together with higher marketing investments. The latter ultimately led to the company’s EBITDA margin falling to a lowly 14.8%.

As a result, the company posted a 53.3% decline in net profit after tax to NZ$56.1 million. This has fallen short of the market consensus estimate of NZ$60 million, which may not bode well for the A2 Milk share price today.

Management commentary

Despite this poor result, A2 Milk Company’s Managing Director and CEO, David Bortolussi, believes the company is making progress:

He said: “Despite challenging market conditions in China and COVID-19 volatility, we are making good progress stabilising the business. The growth strategy we announced in October last year to respond to a rapidly changing China market has been completed and implementation is underway with good early progress across a range of initiatives.”

“We remain confident in the long-term China infant milk formula market, and we are growing share in our China label business in-store and online with strong consumer offtake and share growth. The actions we took to address excess infant milk formula inventory last year are proving effective, and we are seeing improvements in English label channel inventory levels, market pricing and product freshness.”

While English label sales were down during the half, we have seen an improvement in trajectory in the ANZ reseller / daigou channel. Our brand health is strong, and we will continue to increase brand investment, content generation, and activation to drive awareness and conversion,” Bortolussi concluded.

Outlook

Due to the uncertainty the company is facing, it is not providing any guidance for FY 2022. However, it has provided observations on key drivers and important issues that may impact its results.

And while management believes that its revenue could be stronger in the second half, this won’t necessarily translate into stronger earnings.

It explained: “The Company’s outlook for 2H22 revenue has improved. It is still expected to be significantly higher than 2H21, and with growth now expected on 1H22 and for FY22, ahead of initial expectations due mainly to growth in China label and English label IMF. However, this revenue improvement is not expected to translate into higher earnings as the Company significantly increases brand and other reinvestment consistent with its growth strategy.”

FY 2022’s marketing investment is now expected to be in the order of NZ$220 million, which is higher than FY 2020 peak levels. This is being done to drive the execution of its growth strategy.

We’ll see how the market feels about this when A2 Milk shares commence trade later this morning.

The post A2 Milk (ASX:A2M) share price on watch after half year earnings collapse appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Own A2 Milk (ASX:A2M) shares? Here’s what to expect when the company reports on Monday
• The A2 Milk (ASX:A2M) share price has 40% upside – broker
• Why opening borders might not be the good news A2 Milk (ASX:A2M) shareholders have been hoping for
• The A2 Milk (ASX:A2M) share price has hit multi-year lows in 2022. Is now the time to catch the cream?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week deep in the red. The benchmark index fell 1% to 7,221.7 points.

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

ASX 200 expected to fall again

The Australian share market looks set to start the week in the red following a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 51 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 0.7%, and the Nasdaq tumbled 1.2%.

Oil prices mixed

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price fell 0.75% to US$91.07 a barrel and the Brent crude oil price rose 0.6% to US$93.54 a barrel. Oil prices recorded weekly declines amid optimism that Iranian sanctions will lift.

A2 Milk half year update

The A2 Milk Company Ltd (ASX: A2M) share price will be on watch this morning when the struggling infant formula company releases its half year results. According to CommSec, the market consensus estimate is for a net profit after tax of NZ$60 million. This will be down 50% from NZ$120 million during the prior corresponding period.

Gold price edges lower

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price edged lower on Friday night. According to CNBC, the spot gold price fell 0.1% to US$1,889.8 an ounce. Despite this, the gold price added over 3% to its value over the five days thanks to increased demand for safe haven assets.

AGL takeover

The AGL Energy Limited (ASX: AGL) share price will be on watch today amid reports that the energy giant has received a takeover approach. Atlassian co-founder, Mike Cannon-Brookes, and Canadian infrastructure giant Brookfield are understood to have tabled an $8 billion or $7.50 per share offer to acquire the company. However, this is only a modest 4.7% premium to its last close price.

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

More reading

• These were the best performers on the ASX 200 last week
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• Broker says Woodside (ASX:WPL) share price can keep rising

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Charter Hall Long WALE REIT (ASX: CLW) share price could be one of the most compelling ASX dividend share options for income.

It’s a real estate investment trust (REIT) that owns a large portfolio of different properties.

Whilst it isn’t the biggest REIT on the ASX, it is building a reputation as being one of the most dependable for dividends. It’s rated as a buy by a few different brokers, including Citi. Here are some of the reasons why it’s attractive:

Diversification

It has a property portfolio that is now worth $7 billion, which the business describes as high-quality and diversified. There are 549 properties, with 79% of them located on the eastern seaboard of Australia.

The portfolio is diversified across different sectors including agri-logistics (4%), social infrastructure (13%), office (19%), industrial and logistics (21%), hospitality (22%), convenience retail (11%) and ‘diversified long WALE retail’ (9%).

Nearly all of the tenants are blue chip tenants – 99% are either government, ASX-listed, multinational or national. Some examples include the Australian Government, Telstra Corporation Ltd (ASX: TLS), BP and Endeavour Group Ltd (ASX: EDV).

Yield

The ASX dividend share is expecting to pay a distribution of at least 30.5 cents per security. Charter Hall Long WALE REIT typically pays a distribution of 100% of operating earnings.

Assuming a payout of 30.5 cents, that translates to a current distribution yield of 6.1% at the current Charter Hall Long WALE REIT share price.

Morgan Stanley, one of the brokers that rates the business as a buy (with a price target of $5.85), thinks that the REIT will pay a distribution of 6.4% in FY23.

Reliability and organic growth

The REIT is proud of its income security. It has a portfolio weighted average lease expiry (WALE) of 12.2 years. Management says that this provides insulation from market shocks. It also gives investors a lot of visibility and security about the rent.

Rental income growth is driven by annual rent increases in all leases. Around 46% of leases are linked to CPI with a 3.3% weighted average increase in the first half of FY22. The other 54% of leases have fixed increases, with an average fixed increase of 3.1%.

This has allowed the business to continue growing the distribution per security by an average of 3.7% per annum since it listed several years ago.

In FY22 it’s expecting to grow the distribution by at least 4.5%, adding to the ongoing growth.

Charter Hall Long WALE REIT share price valuation

At the time of writing, the REIT’s share price is at $5.01. That compared to the net tangible assets (NTA) of $5.89 at 31 December 2021. That implies a discount of around 15%.

The post 3 reasons why the Charter Hall Long WALE REIT (ASX:CLW) share price is a top buy for dividends appeared first on The Motley Fool Australia.

More reading

• Telstra, Wesfarmers, oil and unemployment: Scott Phillips on Nine’s Late News
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Brokers name 3 ASX shares to buy today
• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
• Brokers give their verdict on the Telstra (ASX:TLS) share price post-results

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Is the Kogan.com Ltd (ASX: KGN) share price an opportunity after the business has suffered a significant decline?

Since the start of 2022, it’s down 29%. In the past six months it’s down 53%. It has fallen about 70% in 13 months.

Some businesses may not be better value just because they have fallen. Kogan has gone through a lot of negatives in the last 12 months.

It suffered from a drop in demand. That led to the business ordering too much stock. Warehousing costs jumped and Kogan also had to pay demurrage costs. To shift the excess stock, Kogan increased its marketing – more costs.

Latest update to influence the Kogan share price

At the e-commerce ASX share’s annual general meeting (AGM) at the end of November 2021, it said that it had right-sized the inventory levels which has brought warehousing costs down. But it was still investing in marketing to expand the Kogan First member base and is confident this will have long-term benefits.

In the first four months of FY22 to October 2022, Kogan had generated $12.4 million of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).

Kogan has given investors an update for the six months to December 2021. For the half-year, the company made $21.7 million of EBITDA. But this still represented a 58% decline from last year.

Whilst total gross sales only grew by 9.4% to $698 million, it did represent year-on-year growth. There were some highlights including 28.7% growth of Kogan Marketplace to $221.1 million, 96.7% growth of advertising to $8.1 million and 48.7% growth of Kogan Energy gross sales to $6.6 million.

Kogan.com’s active customers rose 10% to 3.31 million. Kogan First members jumped 176% to 274,000.

Kogan’s inventory has reduced to $196.8 million, down from $227.9 million at 30 June 2021.

Is the Kogan share price an opportunity?

UBS is ‘neutral’ on the business, but with a price target of $6.70. The broker suggested that Christmas/December trading wasn’t as good as it was expecting. COVID impacts continue, with things like the supply chain and advertising remaining elevated.

However, Credit Suisse is still positive on the business with an ‘outperform’ rating and a price target of $9.16. That implies a rise of around 50% over the next year. However, higher costs did mean that the company’s half-year performance wasn’t as good as it was expecting. The low valuation means it’s still an opportunity.

Credit Suisse puts the Kogan share price at 20x FY23’s estimated earnings with a potential FY23 grossed-up dividend yield of 3.6%.

Goals and e-commerce growth

Kogan has a goal of $3 billion of gross sales by FY26, with 1 million Kogan First subscribers. If the gross sales goal is achieved, it would represent a compound annual growth rate of over 20%.

The company says that its market share of online retail is rising (which hit 2.7% in FY21) and the e-commerce market itself continues to rapidly increase in size.

The post Is the Kogan (ASX:KGN) share price a bargain buying opportunity? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse number of different shares.

Due to their growing popularity, there are an increasing number of ETFs for investors to choose from. In order to narrow things down, listed below are a couple of ETFs that could be worth a closer look next week. They are as follows:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for ASX investors to look at next week is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this sector is heavily under-represented on the ASX, which could make this ETF particularly attractive for local investors.

Especially given how many analysts are forecasting the sector to grow materially in the future because of the increasing importance of cybersecurity due to the growing threat of cyberattacks. Among the companies in the BetaShares Global Cybersecurity ETF are cybersecurity giants such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

VanEck Vectors Australian Banks ETF (ASX: MVB)

Another ETF for investors to take a look at is the VanEck Vectors Australian Banks ETF. If you are wanting some exposure to the banking sector, but aren’t sure which bank to buy above others, then this ETF could be the answer.

The VanEck Vectors Australian Banks ETF allows you to own a slice of Commonwealth Bank of Australia (ASX: CBA) and all the big four banks, the regionals, and investment bank Macquarie Group Ltd (ASX: MQG) through a single investment. Another positive is that as these bank shares are traditionally big dividend payers, this ETF could provide investors with a source of income.

The post 2 more ETFs ASX investors need to know appeared first on The Motley Fool Australia.

More reading

• 3 ETFs for ASX investors to watch in 2022
• 3 top ETFs for ASX investors to look at this month
• This ASX share can give investors access to the compelling cybersecurity world
• 2 excellent ASX tech shares for investors in February
• 3 high quality ETFs for ASX investors in February

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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