Hello everyone, great to have your company on Kalkine TV. I'm Holly and you’re watching Buzzing
Trends. Today we will be looking at 2 ASX shares that investor can consider buying in January 2022.
The year 2021 is finally behind us. Investors would now be looking to devise
new market strategies to pick the best stocks on the ASX 200
in 2022, so as to reap rich dividends. Starting with January, investors would
be reshuffling their investment portfolios, by looking at stocks with high growth potential
and dividend-paying capacity. However, investors should only pick stocks based
on their risk-taking capacity and goals as there is no one-size-fits-all approach in the market.
Here are two ASX shares that could be exciting buys in January 2022:
Frist is Westpac Banking. This company provides services in markets, like institutional banking,
business banking, consumer banking and wealth management services. Recently,
the Australian Prudential Regulation Authority has warned Westpac and other two companies to lift
their performance in some multi-asset investments as it forces firms to improve, merge or shut.
The firms are among eight that have more than half of their so-called multi-asset choice retirement
savings plan delivering “significantly poor returns,” said Australian Prudential Regulation
Authority. Separately, APRA said fees and costs are considerably higher in
choice plans than default options without any obvious benefit for workers’ savings.
Looking at Westpac’s share price and financial performance. The bank’s share price has witnessed
a significant fall in the past two months following the release of its full-year results.
The share price fell as the earnings showed a much weaker-than-expected-margin outlook
on account of aggressive home loan competition.
So, the stock could be a good buy due to a significant share price pullback.
In financial year 21, Westpac bank’s board decided to pay a dividend of AU$1.18 per share.
Meanwhile, the bank also released more capital to its shareholders via an off-market share buy-back
of up to AU$3.5 billion. After this buy-back, the company expects to have a strong capital position
to respond to uncertainties, support growth and its customers. In the past year, it has
given a return of nearly 9%. Westpac stock is currently trading at AU$21.65 on the ASX.
Next, Kogan.com is an online retail
company. Its business segments include retail, mobile, marketplace, broadband.
Kogan recently completed a domain deal which is linked to its future in crypto space.
A seemingly low-key, phased $5.2 million transaction gives e-retail giant Kogan.com an
indirect play in the world of cryptocurrencies. Kogan has made a round-about deal with
Canadian cryptocurrency exchange Bitbuy that will see it marketing the platform’s Australian launch.
The key elements of the agreement include the transfer of the domain as well
as an advertising arrangement whereby Kogan.com will provide
marketing support to Bitbuy's future launch into the Australian market.
Looking at Kogan’s share price and financial performance. In the past year, the company’s
share price has fallen nearly 55%. The massive selloff was due to inventory management issues.
The e-commerce company recorded excessive inventory levels in the recent past.
However, the company might have recovered owing to a healthy Christmas and Boxing Day
shopping period, which is expected to have leaned out the company’s inventory. The company expects
to achieve over AU$3 billion in annual gross sales by financial year 2026. Kogan looks to generate a
compound annual growth rate of at least 20% over this five-year period to reach that target.
In the first four months of financial year 22, it has seen a “strong performance” from Kogan
Marketplace and Kogan First, with the total gross sales including Mighty Ape up 19.2%
to AU$432.7 million. Kogan stock is currently trading at a price of AU$8.64.
Well, that’s all for now. We will be back soon with our Buzzing Trends show to share
the latest market insights with you. Till then, Stay tuned with Kalkine TV for more stock,
business and economy related hot trends.