Got cash to invest? Here are 2 ASX shares to buy

If you have some cash to invest then the 2 ASX shares in this article could be worth thinking about, including Kogan.com Ltd (ASX:KGN).

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Do you have some cash to invest? There are some ASX shares that may be worth looking into at the moment.

Share prices are always changing, so a business can become good value if it falls back a bit.

However, businesses that are falling can be called 'falling knives' because you don't know how far they're going to fall. Some businesses have growing profits but – at the moment – declining share prices, like these two:

Kogan.com Ltd (ASX: KGN)

The Kogan.com share price has fallen by around 25% since 25 January 2021.

If you don't know much about Kogan.com, it's an e-commerce business where a large number of different products and services are sold such as TVs, computers, phones, devices, clothing, furniture and cars. Services that are sold include mobile plans, insurance and energy.

The ASX share has seen elevated levels of demand ever since COVID-19 came along. Kogan.com recently gave a trading update for the first six months of FY21.

It said that gross sales grew by more than 96% and gross profit increased by more than 120%. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 140% and adjusted EBITDA grew by 175%.

It ended the period with $78.9 million of cash. It also had 3 million active customers for the Kogan.com business and another 719,000 active customers for the Mighty Ape business. Mighty Ape is a New Zealand e-commerce business that Kogan.com recently acquired. 

Kogan.com founder and CEO Ruslan Kogan spoke of the focus of the business to keep delivering growth:

We are investing into building strong customer relationships by expanding our logistics capability, our marketing reach and our systems and infrastructure – giving us the foundation to continue delighting customers as the business further scales.

Looking at the current Kogan.com share price, it's valued at 22x FY23's estimated earnings according to Commsec.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a funds management business that has around $100 billion of funds under management (FUM). The Magellan share price has fallen by 10% since 15 February 2021. 

It has a few different investment strategies, with international equities and infrastructure equities being the main two. Magellan also has an Australian funds management division as well.

Morgans is one of the brokers that likes Magellan at the moment, with the fund manager beating the broker's expectations with its FY21 half-year result. The average FUM growth was essentially in line with the management fee increase.

The ASX share's near-term prospects are expected to be dictated by the direction of the market as well as its ability to generate performance fees.

However, Morgans is attracted to Magellan's new product launches and good balance sheet, plus the principal investments, for long-term growth. Two of those new investments within the parent Magellan company include FinClear and Barrenjoey, the investment bank which has been attracting a lot of talent to the new outfit.

Morgans is expecting Magellan to generate $2.28 of earnings per share in FY21, which means it's valued at 20x FY21's estimated earnings.

The broker has a share price target of $58.26 for Magellan.

Tristan Harrison owns shares of Magellan Financial Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia 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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