Do you have some money to invest into some ASX shares? This article is about two ideas that could be interesting options.
Businesses that are seeing underlying growth of demand might be able to produce profit growth over the longer-term.
Kogan.com Ltd (ASX: KGN)
Kogan is a leading e-commerce ASX share that sells a wide variety of items and products.
Its website sells things like TVs, computers, phones, drones, appliances, heating and cooling, home and garden items, furniture, office supplies, toys, video games, clothes, sports gear, tools, books, alcohol and grocery items.
Kogan also offers a number of services including mobile, internet, energy, credit cards, insurance, pet insurance, life insurance, travel, cars, superannuation and home loans.
The business has a growing number of customers, including Kogan First members. Those members get free shipping, discounts and priority customer service.
The Kogan share price has declined by around a third over the last three months.
Kogan has been telling the market about its inventory problems and that its rapid growth has led to near-term supply chain inefficiencies.
To sort out its excess inventory, the ASX share is spending more on marketing and increasing its promotional activity. However, the demurrage issue that it has been facing has been resolved.
Customer demand in April 2021 remained consistent with the levels seen in the three months to March 2021, and below the levels seen in the nine months to December 2020. The quarter ending 31 March 2021 saw gross sales growth of 47% with gross profit increasing 54%.
Kogan says the longer-term fundamentals remain very attractive with online sales only accounting for a small percentage of total retail sales in Australia and New Zealand.
According to Commsec, the Kogan share price is valued at 17x FY23's estimated earnings.
Betashares Global Cybersecurity ETF (ASX: HACK)
This ASX share is an exchange-traded fund (ETF) that is focused on the world's leading cybersecurity companies.
As BetaShares points out, governments, companies and households around the world are facing a tougher fight against cyber criminals who want to steal information or disrupt their IT related activities. Cybersecurity is increasingly important as more of the global economy heads online.
There are more devices online and it's an arms race for cybersecurity businesses.
Global spending on cybersecurity has increased at an annual rate of around 8% since 2011. Major public and private organisations continue to spend more on cybersecurity. The global cybersecurity market is expected to be worth $203 billion in 2021 and $248 billion in 2023.
Most of the portfolio is invested in US shares, though there is a weighting of just over 3% to Israel and the UK.
The ASX share has around 40 holdings, with the current biggest 10 being: Cisco Systems, Accenture, Crowdstrike, Zscaler, Splunk, Proofpoint, Fortinet, Akamai Technologies, Fireeye, Juniper Networks.
Despite the annual management fee of 0.67% per annum, Betashares Global Cybersecurity ETF has delivered an average return per annum of 19.5% since inception in August 2016.
