Insights

2 beaten-up ASX shares that could be buys in August 2021

Kogan is one of two beaten-up ASX shares that might be opportunities.
The post 2 beaten-up ASX shares that could be buys in August 2021 appeared first on The Motley Fool Australia. –

Sometimes there are ASX shares that have been heavily sold off.

That may be completely justified. It may be an opportunity.

There is a saying about trying to catch ‘falling knives’. Sometimes falling shares can keep falling.

With that in mind these two ASX shares, which have been beaten-up in recent months, could be good ideas to think about:

Kogan.com Ltd (ASX: KGN)

The Kogan share price has dropped by around 37% over the last six months.

It’s an e-commerce business that sells a wide variety of products and other services online. Some of those services includes insurance, superannuation and mobile.

The ASX share has been suffering from excess inventory costs. That includes demurrage costs and warehousing. To bring down the level of inventory it has been lowering item prices and spending on advertising.

Despite those problems, Kogan saw more volume in FY21 than FY20 – gross sales grew 52% and gross profit rose by 60%.

The month of June 2021 saw am acceleration of gross sales, gross profit and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), suggesting a recovery could be underway.

Kogan may be able to get back to delivering operating leverage improvements in FY22, where profit could rise faster than revenue, thanks to its growing size and number of customers.

ELMO Software Ltd (ASX: ELO)

Over the last six months the ELMO share price has fallen by 25.6%.

ELMO is a business that provides cloud-based HR and payroll software for small businesses and mid-market organisations to management people, process and pay. It provides services in the UK, New Zealand and Australia.

The business is steadily launching more modules so that it can provide a better service, ensure it’s more integrated with a business’ operations and potentially make more money from each client.

Despite the decline of the share price, its annualised recurring revenue (ARR) continues to grow. In the first half of FY21, the ARR grew by 42.8% to $74.2 million and cash receipts rose 25.5% to $34.4 million in the half-year.

In a guidance update a couple of months ago, the ASX share said that its momentum had continued, with growth across the business. ELMO pointed out that an increasingly remote-based workforce has highlighted the mission critical nature of having cloud-based business solutions, like ELMO’s.

The ELMO CEO and co-founder Danny Lessem said:

There is positive sentiment in the market, and it is pleasing to see procurement starting to return to pre-COVID levels.

Our growth strategy remains on track…Our value-proposition is stronger than ever, and ELMO remains well placed to benefit from tailwinds in the adoption of cloud-based technology.

The post 2 beaten-up ASX shares that could be buys in August 2021 appeared first on The Motley Fool Australia.

Should you invest $1,000 in ELMO right now?

Before you consider ELMO, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ELMO wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

These are the 10 most shorted ASX shares

Elmo (ASX:ELO) share price spikes on new ‘Experiences’
2 buy-rated growth shares for ASX investors in August

The Kogan (ASX:KGN) share price was a lockdown winner, so what’s going on now?
These are the 10 most shorted ASX shares

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 shares of and has recommended Elmo Software and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Elmo Software and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!