Buy Hold Sell, by Livewire Markets

Buy Hold Sell: 3 nice stocks and 2 on the naughty list for 2025

Anyone with children or grandchildren will no doubt have said at some point, "You'd better be good so that you end up on Santa's 'nice' list." Of course, the inference is that nice children get more presents. 

So, in the spirit of Christmas, this latest episode of Buy Hold Sell saw Henry Jennings from Marcus Today and Hugh Dive from Atlas Funds Management run the ruler over a handful of stocks and decide whether they've been naughty or nice. 

For good measure, they each also nominate a stock they see as being on the naughty list in 2025. It could be a name that has done well this year but won’t be able to maintain its good behaviour, or it could be a naughty stock that hasn’t learned its lesson.

Note: This episode was recorded on Wednesday 4 December 2024.

2024 has been a cracking year for ASX investors. What's in store for 2025?

Every year, there are a couple of critical investment decisions that investors need to get right in order to set themselves up for a good year.

These big decisions often trump stock picking or catching the latest fad at the right time. Rather, they are fundamental to giving yourself a fighting chance of outperforming.

This year, if you did nothing else, buying the banks and selling the miners proved fruitful. A close second would have been staying long and strong in tech names, despite some of the nosebleed valuations we’ve all witnessed.

So, what are the key themes investors need to have on their radar as we head into 2025? To answer that question, Livewire’s Hans Lee sat down with Henry Jennings from Marcus Today and Hugh Dive from Atlas Funds Management.

In this episode, they reflect on what worked and what didn’t in 2024. They also highlight the key themes investors should have on their radars in 2025.

For good measure, they each pick one stock that they would bet the house on – if they had to. - and one stock to avoid. 

Note: This episode was recorded on Wednesday 4 December 2024.

Buy Hold Sell: 5 dogs of 2024 tipped to rebound in 2025

The end of the year naturally brings a time of reflection. We collectively get a moment to breathe and reflect on our family, friends, and work.

For those who play Mr. Market's game, we also invariably run a critical eye over our portfolios and make some decisions on what to keep and what to turf like four-day-old Christmas leftovers.

Shedding the duds also means hunting for new opportunities and while piling into the top 10 best performers from this year is always tempting, there are probably some equal, if not better opportunities to be had in the downtrodden. 

With that in mind, this latest episode of Buy Hold Sell sees Henry Jennings from Marcus Today and Hugh Dive from Atlas Funds Management rummaging in the bargain bin like someone who camps out for the Boxing Day sales. Will they find any unloved gems?

As a bonus, Henry and Hugh each nominate a stock they think is set to get going in 2025. 

Note: This episode was recorded on Wednesday 4 December 2024

Buy Hold Sell: 3 ASX stocks the market loves (and 2 that are flashing red)

Every now and then, a company captures the attention of the entire market. Like lightning in a bottle, these companies are typically doing something innovative, disruptive and, more often than not, something that was previously considered impossible.

The narrative around the company fuels the share price, and vice versa, and provided earnings keep up, a market darling is born.

A previous example was Afterpay, which rocketed to notoriety, riding a wave of Buy-Now-Pay-Later fever. A current example is Life360 (ASX: 360) which has achieved market darling status and has been named by some as the most compelling growth stock on the ASX right now.

So what are the stocks that the market is loving today? And are there any that have run too hard, with their share prices and outlooks departing from reality?

To answer those questions, Livewire’s Ally Selby was joined by Andrew Peros from Ausbil and David Keelan from Ellerston. In this episode, they run the ruler over three market darlings, and each name a stock they think is flashing red. 

Note: This episode was recorded on Wednesday 20 November 2024. 

Could these 2 stocks become the ASX's next 10-baggers?

Ahh, the mystical 10-bagger. A stock that has delivered its investors a 10x return on their initial investment. Initially coined by legendary investor Peter Lynch, who was a fan of discovering undervalued stocks with sustainable and attractive earnings per share growth, a love of 10-baggers saw Lynch's Magellan Fund achieve a 29.2% average return over the 13 years he managed it. 

In his book, One Up on Wall Street, Lynch wrote, “In my business a four-bagger is nice, but a ten-bagger is the fiscal equivalent of two home runs and a double.”

While this anonymous writer may not know anything about sports, I do know a few talented local fund managers who can help investors identify the ASX's next great 10-baggers. 

So, in this episode, Livewire's Ally Selby was joined by Ausbil's Andrew Peros and Ellerston's David Keelan. They share their secrets to identifying long-term compounders, the importance of backing strong founders, the red flags investors should look out for, and whether profitless companies are a problem or worth the risk. 

Plus, they each name a company that they believe could become the ASX's next 10-bagger. 

Note: This episode of Buy Hold Sell was recorded on Wednesday 20 November 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/could-these-2-stocks-become-the-asx-s-next-10-baggers/ 

Buy Hold Sell: 5 of the ASX's fastest growing small caps

Small caps are nimble, fast-growing companies that punch well above their weight when it comes to delivering returns.

Small caps may not have the size and scale of their large-cap counterparts, but that’s exactly what makes them so exciting. These companies are often innovators or disruptors, capturing niche markets and delivering rapid growth as they expand. It’s no wonder they’ve become a favourite hunting ground for investors looking for the next great 10-bagger. 

However, investing in small caps isn’t without its risks. While some go on to become the blue chips of tomorrow, others can stumble as they navigate challenges like scaling up, raising capital, or competing against larger, better-resourced rivals. That’s why picking the right small-cap stocks is critical - and that’s exactly what this episode aims to help you do today. 

In this episode, we’ll delve into five ASX-listed small caps with the help of David Keelan from Ellerston Capital and Andrew Peros from Ausbil Investment Management.

From telecommunications to engineering, video game development, and even cyber safety for kids, these companies operate in sectors brimming with opportunity. Some have delivered spectacular returns over the past year - like Superloop, which has soared 215%, and Qoria, up 105%. Others, like Playside Studios, may be flying under investors' radars. 

So, are these stocks poised for further growth, or is it time to cash in? You'll find out in this episode of Buy Hold Sell. 

Note: This episode was recorded on Wednesday 20 November 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-of-the-asx-s-fastest-growing-small-caps/ 

Buy Hold Sell: 3 defensive darlings for the next market pullback (and 2 to buy when it does)

Traditional long-only investors, who don't tinker with their cash levels much, typically participate in all of the market's upside when it is flying and all of its downside when it's not. Markets typically increase over time, so this is a perfectly acceptable way to invest. 

Long/short investors, however, can also profit when markets fall—but that's too simplistic an explanation. It suggests that long/short managers make money equally when markets go up and down, which is rarely the case. 

Because long/short managers are also active beta managers (i.e. they pick stocks to outperform a benchmark or achieve a specific objective), they typically capture most of a market's upside while significantly limiting losses on the downside. 

That means that much of their alpha (overall outperformance) is often generated by providing much better protection when things are bad versus smashing the market when it is flying. 

With all that in mind, what better time to ask two long/short managers for their top defensive picks than right now - when equity markets are at all-time highs and valuations are on the ritzy side? 

On this episode, Livewire's James Marlay is joined by Jun Bei Liu from Tribeca and David Moberley from ClearLIfe Capital for their analysis of five stocks that could weather a coming downturn - whenever that may be.

Note: This episode was recorded on Wednesday 6 November 2024.

Buy Hold Sell: The best and worst investment ideas from 5 ASX sectors

One key function of long/short fund managers is to compare similar companies and trade them against each other.

These companies are often found within sectors but can also be found across sectors, as companies with similar characteristics.

Once identified, a long/short manager will buy the stronger-performing company in the pair and sell the weaker-performing company. This is known as a 'pairs' trade. This strategy also has the benefit of being market-neutral (given one long and one short trade in the pair).

The ASX is littered with potential pairs trading opportunities. Some examples include Coles and Woolworths, Fortescue and Rio Tinto, and Santos and Woodside.

Given the focus on comparing companies and actively trading them against each other, who better to ask for their best and worst picks in a sector than a couple of long/short fund managers?

For those who love stock picks on both sides of the ball, this episode is for you.

Livewire's James Marlay was joined by Tribeca Investment Partners' Jun Bei Liu and ClearLife Capital's David Moberley to discuss their best and worst picks in five different sectors.

Note: This episode was recorded on Wednesday 6 November 2024.

Buy Hold Sell: Hunting for value among 5 of the ASX's most shorted stocks

Lithium darling Pilbara Minerals has overtaken Flight Centre as the most-shorted stock on the ASX. After what seems like years at the top of the list, the travel company has dropped down to the 30th most-shorted stock on the ASX - with a short interest of 5.75%. 

Today, only two of the 10 most-shorted stocks are not miners - while out of the top 20, only seven stocks are not within the minerals and resources sectors. It's fair to say then that the market remains bearish on the outlook for many of these stocks - with lithium and uranium miners heavily featured in the list. 

So, is there any value among the most shorted stocks on the ASX? Or should investors be steering clear of these stocks? 

To find out, Livewire's James Marlay was joined by Tribeca Investment Partners' Jun Bei Liu and ClearLife Capital's David Moberley. 

They analyse three of the most heavily shorted stocks on the ASX - including Boss Energy, IDP Education and Seek - and each name a stock that they believe could see a short squeeze. 

Note: This episode was recorded on Wednesday 6 November 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/buy-hold-sell-hunting-for-value-among-5-of-the-asx-s-most-shorted-stocks/  

Buy Hold Sell: 5 stocks with controversial leaders

Locally, founder-led businesses have been making headlines for all the wrong reasons. Take the downfall of Australian tech billionaire Richard White of WiseTech Global, for example, or the tax scandal claims circling Mineral Resources' Chris Ellison. 

On the global stage, founders can be far more divisive. Elon Musk is now being sued by Philadelphia's district attorney over his US$1 million daily election giveaways in a bid to boost Donald Trump's election campaign. In response, he posted a photo of a daily winner with a cheque on his social media platform X. Meanwhile, scandals seem to continuously orbit Facebook/Meta founder Mark Zuckerberg - who has been accused of (among other things) being a robot. 

In China, Alibaba's founder and leather jacket enthusiast Jack Ma literally disappeared after criticising the Chinese government. Many thought he was dead. 

So, is it worth investing in companies with controversial CEOs, founders and leaders? Or should investors be focusing on companies with leaders who have their heads down and are focusing on business growth instead?

To find out, Livewire's Ally Selby was joined by Antipodes' Jacob Mitchell and Magellan's Arvid Streimann. 

Note: This episode was recorded on Wednesday 23 October 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-with-controversial-leaders