Buy Hold Sell, by Livewire Markets

Buy Hold Sell: 3 of 2024’s hottest stocks (and 2 in the too hard basket)

End of financial year can be a drag. With tax time upon us, we need to give up an evening, possibly a weekend, to get our affairs in order.

But EOFY also affords us the opportunity to look over our investment portfolios, pat ourselves on the back for what has gone well, and undertake the cathartic experience of culling the underperformers. 

It has been a surprisingly strong first half, despite high interest rates and inflation sticking around for longer than we would like, so hopefully it will be more of the former, and less of the latter.

With all that in mind, Grady Wulff sat down with Luke Laretive from Seneca Financial Solutions and Steve Johnson from Forager Funds Management for their analysis of three of the first half’s hottest stocks - all of which are trading near 52-week highs. 

Plus, they also each name a stock that is in the too-hard basket right now. 

Note: This episode was recorded on Wednesday 19 June 2024.

Buy Hold Sell: 5 stocks with sustainable and fully franked dividends

Franking credits are important for many investors, particularly those operating in a low or no-tax environment. A company paying a 5% fully franked yield, for example, gets grossed up to around 7% after franking. Juicy. 

More than half of the companies listed on the S&P/ASX200 either fully pay or partially pay franked dividends, and it is important to know the relevant franking level.  

With that in mind, Livewire's Ally Selby recently sat down with Peter Gardner from Plato, and Andrew Fraser from Merlon to discuss five stocks with sustainable and fully franked dividends. 

For those unfamiliar with franking, they also discuss why franking is important and how it factors into their respective investment processes. 

Note: This episode was recorded on Wednesday 5 June 2024. 

10 of the highest-yielding stocks on the ASX

There are currently 10 stocks with double-digit yields on the ASX, exactly half the amount there was this time last year. 

While double-digit yields certainly sound enticing, investors should be aware that they could indicate that the market believes a company has limited growth prospects, a falling share price, or a one-off dividend. 

For those not in the know, dividend yield is calculated by adding up all the dividends (both special and normal) paid over the last 12 months and then dividing that value by a stock's current share price.

So, are any of these double-digit yields sustainable? 

To find out, Livewire's Ally Selby was joined by Plato Investment Management's Peter Gardner and Merlon Capital's Andrew Fraser. 

They share at what point alarm bells should start ringing on the sustainability of these yields, and where they are seeing growing yields over the short and long term. They also each name a stock they are backing - which surprisingly, are both incredibly similar - for attractive income over the next few years. 

Note: This episode was recorded on Wednesday 5 June 2024. 

Buy Hold Sell: 3 dividend darlings (and 2 traps)

With interest rates up 4.25% in the space of two years, investors have entered a Goldilocks era for income. But while many retirees live happily off the income generated by some of the market’s dividend stalwarts, there are potential traps out there.

To help ensure you’re investing in companies with sustainable dividend yields, Livewire's Ally Selby was joined by Plato Investment Management’s Peter Gardner and Merlon Capital’s Andrew Fraser for their analysis of three widely owned dividend stalwarts (and for something different, none of these are iron ore miners).

Plus, they also call out two dividend darlings they now regard as traps.

Note: This episode was recorded on Wednesday 5 June 2024. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/buy-hold-sell-3-dividend-darlings-and-2-traps/

Buy Hold Sell: 5 speculative ASX-listed stocks with upside potential

Do you spend your days searching for the next spicy mining stock headed for the moon, a biotech promising revolutionary health advances, or a tech company changing the status quo? 

If that sounds like you, you've come to the right place. 

While Buy Hold Sell typically focuses on companies at the larger end of the market cap spectrum, this week, we're digging deeper in search of speculative stocks with upside potential. 

This includes punter favourite Brainchip (ASX: BRN) - which we repeatedly receive requests to cover, as well uranium up-and-comer Nexgen Energy (ASX: NXG), and buy-now-pay-later company Zip Co (ASX: Z1P) - which have already soared 36%, 14% and 85% since the beginning of the year, respectively. 

So are these stocks actually worthy of investors' attention? To find out, Livewire's Ally Selby was joined by IML's Daniel Moore and Tribeca Investment Partners' Jun Bei Liu. 

Plus, they also each name a speculative stock in their portfolios that they would be buying at today's prices. 

Note: This episode was recorded on Wednesday 22 May 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-speculative-asx-listed-stocks-with-upside-potential 

4 of the highest quality companies on the ASX

From 1981 to 2022, the MSCI World Quality Index outperformed the MSCI World Index by 2.6% per year - while the growth and value styles generated returns that were pretty much identical to the broader market. 

So, is the trend your friend? 

In this episode, Livewire's Ally Selby was joined by IML's Daniel Moore and Tribeca Investment Partners' Jun Bei Liu for their thoughts on why investors should be taking a closer look at quality stocks right now - including the factors that investors should look out for when trying to identify the market's quality companies. 

They also each name one large cap and one small cap that they believe are the highest quality companies on the ASX. And, just because you all know I love a bit of drama, they also name one stock that the market shouldn't classify as high quality anymore. 

Note: This episode was recorded on Wednesday 22 May 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/4-of-the-highest-quality-companies-on-the-asx/ 

Buy Hold Sell: 5 stocks with exceptional earnings growth

Time and time again, investment experts tell us punters the same thing - that earnings drive share prices. 

When earnings per share is positive and continues to grow in each reporting period, it means that your share in a company's profit pie is continuing to grow as well. Higher EPS can often translate to a company's share price trading higher, as investors are willing to pay more for a company generating elevated levels of profits - particularly if this growth has been consistent over the long term - or is estimated to continue to grow well into the future. 

So in this episode, Livewire's Ally Selby was joined by Tribeca Investment Partners' Jun Bei Liu and IML's Daniel Moore for their analysis of three stocks with EPS growth expectations higher than 25% over the next 12 months. 

Plus, they each name a stock that they believe has attractive and sustainable earnings growth over the years to come.  

Note: This episode was recorded on Wednesday 22 May 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-with-exceptional-earnings-growth/ 

Buy Hold Sell: 3 dogs of the ASX (and 2 darlings headed higher)

If there is one thing investors have heard on repeat over the last 12 months, it's that there's a massive opportunity in small-cap stocks, which were, at the time, massively undervalued compared to their large-cap counterparts. 

And while experts' predictions seem to have come to fruition, with the Small Ordinaries Index outperforming the ASX 100 since the beginning of the year, a handful of stocks - plagued by negative news - have been left behind by the benchmark. 

Take IDP Education (ASX: IEL), for instance, which has seen its share price fall around 14% in 2024. Or Bapcor (ASX: BAP), also down 14%. Or Cettire (ASX: CTT), which has retraced the gains made in the early part of the year and is now trading back where it started. 

So, in this episode, Livewire's Chris Conway was joined by Datt Capital's Emanuel Datt and OC Funds Management's Aaron Yeoh to see if there is any value in any of these beaten-down stocks. 

Plus, they also each name a darling that has been headed higher in recent months - and they believe it can push higher still. 

Note: This episode was recorded on Monday 6 May 2024. 

The secret sauce of good growth stocks (and 2 that tick all the boxes)

Given interest rates remain at decade-long highs, and hopes of cuts continue to be pushed out into the future, it may be surprising for some that growth companies have continued to go from strength to strength. 

The S&P/ASX 200 Growth Index, for example, has risen 7.76% over the past 12 months. In comparison, the S&P/ASX 200 Value Index has lifted just over half of that at 4.71%. 

According to OC Funds Management's Aaron Yeoh, this is because a lot of companies have readjusted to a higher interest rate environment and have had a closer look at their cost bases, meaning earnings are now more sustainable for growth companies. 

 

Similarly, Datt Capital's Emanuel Datt believes it's because valuations within small-cap growth opportunities still remain compelling compared to their large-cap counterparts, and in addition, can help investors earn higher returns to keep up with or exceed inflation.  

So in this episode, Livewire's Chris Conway sat down with Datt and Yeoh for their tips and tricks for identifying good growth companies on the ASX. 

They analyse the financial factors, management requirements, and competitive advantages that they believe are important to winning growth stocks, and each select a stock that ticks all these boxes and more. 

Note: This episode was recorded on Monday 6 May 2024.

Buy Hold Sell: 5 growth stocks for the next 5 years

Growth stocks are the bread and butter of investors who are happy to stomach typically higher prices for exceptional above-market earnings growth. 

These companies typically exhibit high earnings and sales growth, a unique product or service, significant market share in their industries, impressive moats, and loyal customers. 

Take WiseTech Global, for example, which has seen its earnings grow at a compound annual growth rate of 43% since listing on the ASX, seeing its share price lift 2,319% (and counting) over that same period. 

So in this episode, Livewire's Chris Conway was joined by Datt Capital's Emanuel Datt and OC Funds Management's Aaron Yeoh for their analysis of three quality growth stocks with stellar growth trajectories over the next five years. And as a sneak peek, there's only one stock our fundies agree on. 

And just because we know you love a stock pick, each of our guests shares a strong buy they are backing over that same time. 

Note: This episode was filmed on Monday 6 May 2024.