Buy Hold Sell, by Livewire Markets

Buy Hold Sell: 5 stocks to play the commodities squeeze

Despite the recent sell-off in resources and materials stocks that we have witnessed over the past few weeks, investors with a penchant for miners, explorers and energy companies would be feeling pretty chuffed (comparatively, that is - let's observe a moment of silence for growth investors). 

Potash prices, for example, have lifted nearly 178% over the 12 months to the end of May, while coal has lifted 176% over the past year. Meanwhile, gasoline's up nearly 65% over the past 12 months... As many of us are well aware. 

And while it's easy to panic as markets are selling off, take profits, and run, in this episode, you'll see that our fundies are going against the curve and adding a few stocks to their shopping carts. 

Livewire's James Marlay was joined by two "rock stars" - Ausbil's Luke Smith and Paradice Investment Management's Tom Richardson for their thoughts on three stocks investors can use to play the commodities squeeze. 

Plus, they also name one sector and one stock that looks compelling over the long term.  

Note: This episode was recorded on the 22nd of June 2022. You can read the transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-to-play-the-commodities-squeeze/

The party in commodities isn’t over

The past month has been pretty brutal for commodities connoisseurs.

After all, the S&P/ASX 200 Resources Index is down nearly 9% over the past four weeks alone, while copper and iron ore prices have cascaded significantly into the red. Steel, platinum, silver and gold haven't exactly survived the beating either, with all four metals falling in June.

It probably doesn't surprise investors to learn that at the stock level, it's been far, far worse. For example, lithium favourites Mineral Resources and Pilbara Minerals have seen their share prices fall more than 20% over the past month, while dividend favourites BHP and Fortescue Metals Group have dropped more than 6% and 9% respectively.

That said, they say you should buy when there is blood in the street.

So in this thematic episode, Livewire's James Marlay was joined by AUSBIL's Luke Smith and Paradice Investment Management's Tom Richardson for their take on the opportunities and risks of investing in Australia's materials, miners and explorers.

Plus, they also share why they believe the party in commodities isn't over (and not by a long shot), as well as the sectors (and stocks) within this burgeoning space that are catching their attention for the right reasons over both the short and long term. 

Note: This episode was recorded on the 22nd of June 2022. You can read the transcript below: 

https://www.livewiremarkets.com/wires/the-party-in-commodities-isn-t-over/

 

 

Buy Hold Sell: 5 stocks riding the red-hot energy sector

It is widely accepted that the world is on a path to a new energy mix. How and when we get there is far less certain, and it presents investors with abundant opportunities. From the materials required to build renewables to fossil fuels facing supply-side issues and alternative fuels sources like uranium – the sector is red hot.   

In this episode of Buy Hold Sell, Tom Richardson from Paradice and Luke Smith from Ausbil give their views on three stocks providing exposure to different energy sources.   

We also ask each of our guests to nominate a commodity they think will play an essential role in the energy transition and their preferred stock to get exposure to that commodity. 

Buy Hold Sell: 3 of the highest returning ASX200 stocks and 2 being overlooked

Companies with proven track records of delivering high returns on equity are sought after. And rightly so. Compounding gives exponential returns and is the holy grail of investing. 

However, the power of compounding is no secret and quality stocks are usually expensive. But these aren't 'normal' times, and there's a chance that these top-tier stocks are getting caught up in the maelstrom gripping markets. 

In this episode of Buy Hold Sell, we asked Anthony Aboud from Perpetual and Sean Fenton from Sage to give their views on three high ROE stocks in the ASX200 stocks. Our guests also nominate a stock that they think the market is overlooking. 

Click on the video player, listen to a podcast or read an edited transcript below.

Note: This episode was recorded on the 18th of June 2022.

10 blue chip management teams in the ASX200

In challenging times, the quality of management is paramount to ensure that shareholders capital is well looked after, and companies can survive the battles. Solid fundamentals don't count for much if strategy can't be executed effectively and ethically. Lest we forget the Hayne Royal Commission into the banking sector.  

But what are the common traits of good management teams and where are some examples of the best in the business?

In this episode we're joined by Anthony Aboud from Perpetual and Sean Fenton from Sage Capital - two fund managers who regularly meet with the top brass of our largest companies in the ASX. 

They map out the key things they look for in a management team so you can identify them yourself, before nominating their favourite management teams (and outline why) across financials, materials, retail, healthcare and technology. 

Note: This episode was filmed on Wednesday 8th June 2022. You can watch, listen or read an edited transcript below.

Buy Hold Sell: The 3 best and 2 worst performing ASX100 stocks in FY22

When threats are lurking, with size comes safety. Just look at birds: the larger the flock, the less prone they are to predators. The same applies to investing - when markets are a bit bumpy, the small end of town tends to be much more volatile than its counterparts in the large. 

As we approach the end of the financial year, it has been a wild ride for equities. The ASX100 has been somewhat stable though, considering the uncertain macroeconomic environment, down only 2.35% year-to-date. This is very favourable versus the ASX200 (-7.51%) and S&P500 (-14.19%). So if you are looking for protection as well as opportunity, maybe the largest of the large is the place to be.

In this episode, we hosted Anthony Aboud from Perpetual and Sean Fenton from Sage Capital to uncover their thoughts on the darlings and the dogs of the ASX100 from FY22. Follow along as we look at 3 of the best performing ASX100 shares and 2 laggards from the past year.

The top-performing ASX100 stocks covered:

• Pilbara Minerals (ASX:PLS)
• Lynas Rare Earths (ASX:LYC)
• Incitec Pivot (ASX:IPL)

The worst-performing ASX100 stocks covered:

• Dominos’s Pizza (ASX:DMP)
• REA Group (ASX:REA)

Buy Hold Sell: 5 Aussie small caps to weather the storm

Bittersweet. Civil war. Virtual reality. And the famous Mark Twain quote “It usually takes more than three weeks to prepare a good impromptu speech.” What do all these have in common? Why, they’re oxymorons of course!

That brings us to the topic of today’s episode of Buy Hold Sell: Resilient small caps. While these ideas are not complete opposites, the small end of town is certainly where you’ll be more susceptible to stock price capitulation, particularly as the market starts to crunch.

And boy, it is crunching alright. The S&P/ASX Small Ordinaries is down nearly 17% year to date, while its big brother the ASX200 has printed a more modest -5.5%. Some former small-cap darlings have led the descent, the following among those caught in the selloff:

• Buy now pay later company Z1P (ASX: Z1P) fell -78.75% 
• Digital payments firm Tyro (ASX: TYR) down -62.94%
• Online sports betting company Pointsbet Holdings (ASX: PBH) dipped by -62.84% 
• Data centre business Megaport (ASX: MP1) declined -59.54% 

If you're in need of capital protection but can't let go of your Growth infatuation just yet, this episode is for you. We hosted small-cap specialists Josh Clark from QVG Capital and Gary Rollo from Montgomery Investment Management, quizzing them on the small caps they believe offer exciting upside after the sell-off while remaining resilient through market cycles. 

The stocks covered are:

• Travel company Webjet (ASX: WEB),
• Billing software firm Hansen Technologies (ASX: HSN), and 
• Data and software company Objective Corporation (ASX: OCL). 

The small-cap sectors to avoid (and where to invest)

When volatility is up and risk appetites are down, small caps invariably take a hit. Investors will naturally gravitate towards more liquid areas of the market. 

But the sell-off has been about more than just risk-off sentiment. Fundamentals have changed. Consumer-facing stocks are feeling the pinch while rising rates are set to hurt long-duration names with a lot of debt on the books. 

You can still remain invested in the market, though, so long as you replace any sells with high conviction buys. 

"It's ok to be active, but don't forget to buy something on the other side," says Josh Clark from QVG Capital. 

In this edition of Buy Hold Sell, Josh is joined by Gary Rollo from Montgomery Investment Management to offer up some tips that will help you "aim small, miss small." 

They'll also discuss the tech growth names that have 35% upside. 

Read or watch below. 

Note: This episode of Buy Hold Sell was shot on Wednesday 25th May 2022. You can watch the video, read an edited transcript or listen to the podcast below. All data provided by Mathan Somasundaram (DeepData Analytics)

Buy Hold Sell: 5 discounted growth stocks

Growth stocks have been punished, especially at the smaller and less liquid end of the market. Think of sectors like healthcare, discretionary retail and tech (Covid winners anyone?). 

But what does that look like in terms of numbers? Glad you asked, as our friends at Deep Data Analytics have recently crunched the numbers and it isn’t pretty.

The worst 10 performers in the small cap healthcare sector are down ~32% on average, in discretionary retail the fall is ~49% and things get ugly in tech where the worst 10 are down ~54% on average.

No doubt many Livewire readers will have had some high-growth names on the wishlist, but couldn’t stomach the valuations. So, we invited small cap specialists Josh Clark from QVG Capital and Gary Rollo from Montgomery Investment Management to see if a selection of market darlings are cheap enough to get them interested.

The stocks covered are IDP Education, Pro Medicus and City Chic Collective. Our guests also share a growth stock that they think has been oversold and now looks attractive.

Buy Hold Sell: 5 stocks that surprisingly benefit from rising rates

It's clear that rising rates haven't been great for local and global share markets. High P/E names, those that have led the world's major bourses over the past few years, have run and tripped off a cliff, and look to be heading for an awkward and uncomfortable belly flop in the dark waters below.

Either way, the next few months are likely to be painful for investors. But they don't have to be. In fact, there are some stocks, other than banks and commodities companies, that can surprisingly benefit from the rising rate cycle. 

So in this episode, Livewire's Ally Selby was joined by Tribeca Investment Management's Jun Bei Liu and TMS Capital's Ben Clark for a look at three stocks that profit from rising rates and inflation. 

Plus, they also both name one company with surprising upside ahead as the RBA continues on its aggressive rate hike cycle. 

 Note: This episode of Buy Hold Sell was shot on Wednesday 11th May 2022. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-that-surprisingly-benefit-from-rising-rates/