Buy Hold Sell, by Livewire Markets

The Aussie small and micro caps taking over the world

Is it just us, or is global domination perhaps easier than Hollywood villains would have us think? 

Over the past few months, Squid Game has taken over the world. Meantime, every man and his neighbour can now tell you the total addressable market of Tesla (without being invited, I might add). And what's more - and I don't know where they are breeding them - but lately, it seems like there are more real estate agents popping up down under than homes themselves.

While we are on this train of thought, we have also witnessed a never-ending number of local micro and small caps expanding overseas in recent times, with companies encouraged to take an international risk in their quest for growth. And investors, also hungry for growth, can't get enough of them. 

So in this episode, Livewire's Ally Selby was joined by Wilson Asset Management's Tobias Yao and Ausbil Investment Management's Arden Jennings for their insight into identifying these local growers. 

In the process, they identify eight stocks on their radars, as well as two they believe can kill it on the global stage over the year to come. 

Note: This episode was filmed on Wednesday, 24th November 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/the-aussie-small-and-micro-caps-taking-over-the-world/

Buy Hold Sell: 5 stocks set to soar in 2022

Small caps have had a cracker of a year, with the S&P/ASX Small Ordinaries rising 19% over the past 12 months, including dividends. Meanwhile, the stocks outside of the ASX 300 - the mighty micro caps - have generated a whopping total return of 45% (tracked by the S&P/ASX Emerging Companies Index). 

So why not dust off that crystal ball, gaze into the future, and see what the year ahead has in store for the smaller end of the market? 

In this episode, Livewire's Ally Selby is joined by Wilson Asset Management's Tobias Yao and Ausbil's Arden Jennings for their thoughts on three stocks that could soar in 2022. These include reopening play Lovisa, accomplished Australian businessman David Teoh's TPG Singapore, and reader favourite Electric Optic Systems. 

Plus, for good measure, we asked our fundies to name the number one stock they are backing for the year ahead. 

What more could you want? 

Note: This episode was filmed on Wednesday, 24th November 2021. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-set-to-soar-in-2022/

Buy Hold Sell: 5 stocks with resilient cash flows

In a world of cheap debt, where money seems to continue to be thrown at the next big thing (like these "Bored Ape" NFTs, for example), it's easy to forget about the importance of resilient cash flows. 

Cash flows provide crucial information about a company, demonstrating the movement of money in and out of your favourite stock - and helping you to analyse whether a company is actually financially healthy or could face some trouble in the months (and years) ahead. 

In the current inflationary environment, where rates are expected to rise by 2023 (or 2022, according to some economists), we thought it would be worthwhile to take a look at some of the ASX's best companies with resilient cash flows. These stocks, with quality assets, are likely to withstand any change in the market environment, unlike stocks that still haven't turned a profit and yet trade at sky-high valuations.  

In this episode, Livewire's Ally Selby is joined by Rhett Kessler from Pengana and Stuart Welch from Alphinity to discuss three of these quality stocks. Plus, they also name two stocks that they believe can continue to deliver earnings upgrades in an inflationary environment.

Note: This episode was filmed on Wednesday, 10 November 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-with-resilient-cash-flows/

Which stocks to own as rates rise (and 2 fundie favourites)

Just like Tesla's share price, helium-filled balloons, or my editor's blood pressure when I write these wires, sometimes things just rise. It's inevitable. 

Rates, on the other hand, have been on a downhill trajectory for a good 30 years. Now, it seems that they too may be on the way up. 

In fact, the RBA recently dropped its reference to rates rising "not before 2024", with economists around the country now forecasting that rates could get a hike far, far sooner (some have predicted that cash rates could rise in November 2022). 

So in this thematic episode, Livewire's Ally Selby is joined by Stuart Welch from Alphinity and Rhett Kessler from Pengana for their thoughts on the stocks you should be buying (and avoiding) in this environment. 

Plus, they also name two stocks that can benefit from inflationary tailwinds over the months and years to come. 

Note: This episode was filmed on Wednesday, 10 November 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/which-stocks-to-own-as-rates-rise-and-2-fundie-favourites/

Buy Hold Sell: 4 stocks with Australia‘s highest-paid CEOs

With only seven weeks left of 2021, Australians have much to look forward to. 

Flowing food and drinks at work Christmas parties, another New Year's night to remember (or forget), a well-deserved break after this hell of a year, and of course, for the lucky few, an annual salary bump. 

So in this episode, we're taking a look at some of the companies with Australia's highest-paid CEOs to see if their shareholders were rewarded too. 

While many Australian chief executives didn't take home a bonus in FY20, the value of their annual salaries and vested equity interests are sure to turn investors an enviable shade of green. 

According to the Australian Council of Superannuation Investors, CSL's Paul Perreault enjoyed a realised pay of more than $43 million during the financial year. Similarly, Macquarie Group CEO Shemara Wikramanayake, Woolworths CEO Brad Banducci and former Ansell CEO Magnus Nicolin received handsome paychecks. 

Livewire's Ally Selby is joined by Pengana's Rhett Kessler and Alphinity's Stuart Welch for these fundies thoughts on the future prospects of these burgeoning businesses. And spoiler alert, two stocks, in particular, have caught both of our fundies their attention. 

Note: This episode was filmed on Wednesday, 10 November 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-4-stocks-with-australia-s-highest-paid-ceos/

Buy Hold Sell: 5 stocks for the energy transition

It's certainly a poignant time to be talking about energy. After all, the world's leaders, including Prime Minister Scott Morrison, are currently going head to head in Glasgow, Scotland, fighting to meet the Paris Agreement. 

Joined by scientists, academics, and activists, some real decisions on climate action will be made over the coming days, covering everything from limiting emissions and deforestation, to cutting coal (or not, in Australia's case), future sources of energy, and electric cars. 

But even before this week's COP26 Climate Change Conference, companies associated with the energy transition were looking particularly positive to Australia's investors, with many charging ahead over the last 18 months.

So in this episode of Buy Hold Sell, Livewire's Ally Selby was joined by Argonaut's David Franklyn and Eley Griffiths Groups' Tim Serjeant for their thoughts on three stocks for the energy transition.

Plus, they both name their number one pick from the sector for the months to come. 

Note: This episode was filmed on Wednesday, 27 October, 2021. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-for-the-energy-transition/

4 winning resources small caps (and what it takes to make them)

A pinch of proven management, a dash of project location and a teaspoon of great assets are just three of the essential elements that go towards making a successful resources small-cap company. But there are others, and seldom has it been more timely to dig into the sector and find out what they are. 

After all, resources have been on a tear recently. Consider two of the firms mentioned in the last episode of Buy Hold Sell. Pilbara Minerals (ASX: PLS) has risen 464% in the past year, while Aeris Resources (ASX: AIS) has jumped 167%.

But then this cyclical and capital-intensive sector is also prone to dramatic peaks and troughs. For this reason, it's important for investors to be able to recognise the signposts, macro and micro, that signal just where we are in the cycle.

In this thematic episode of Buy Hold Sell, Livewire's Ally Selby is joined by two small-cap resources specialists, Eley Griffiths Group's Tim Serjeant and Argonaut's David Franklyn who share their insights into when to buy, and the ideal combination of ingredients that make a resource company successful enough to reward your investment.

Note: This episode was filmed on Wednesday, 27 October 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/4-winning-resources-small-caps-and-what-it-takes-to-make-them

Buy Hold Sell: 5 up and coming mining stocks

If Livewire Markets were an exclusive club, its members (as you well know), would be partial to stock picks, fund manager insights, and getting rich(er) without having to die trying. However, it seems, particularly of late, that emerging resources, metals and material stocks have a certain je ne sais quoi to whet your appetite. 

It makes sense. After all, the S&P/ASX Small Ordinaries Resources Index has returned 42.25% over the past 12 months, nearly double the S&P/ASX Small Ordinaries Index (24.96%) and the S&P/ASX 200 (22.49%). In case you were wondering, the benchmark return also far surpassed that of the S&P/ASX 200 Resources Index (9.39%), which contains dividend darlings like Fortescue Metals and BHP. 

So in this episode of Buy Hold Sell, Livewire's Ally Selby is joined by two small-cap resources specialists for their insight into some of the sector's up and comers, with Eley Griffiths Group's Tim Serjeant and Argonaut's David Franklyn sharing their thoughts on skyrocketing stocks across lithium, gold, copper and uranium. 

Note: This episode was filmed on Wednesday, 27 October 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-5-up-and-coming-mining-stocks/

Buy Hold Sell: 5 small caps with big dividends

While large caps usually get all the attention from dividend seekers, small caps often punch above their weight in this respect. In fact, the three stocks named below have paid out an average 6.2% yield (including franking credits) over the last 12 months! 

In this episode, Livewire's James Marlay is joined by Montgomery Investment Management's Roger Montgomery and Investors Mutual Limited's Simon Conn for their analysis of three small-cap stocks that also boast impressive dividends. 

These include reader favourite Fiducian Group (ASX: FID), administration services provider Smartgroup Corporation (ASX: SIQ) and real estate investment trust Charter Hall Retail REIT (ASX: CQR). 

If that's not enough, our fundies also each name a small-cap with big dividend potential in the years to come. 

Now that's what I call bang for your buck.

Note: This episode was filmed on Wednesday 13th October 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-5-small-caps-with-big-dividends

10 of the ASX‘s best management teams

We are often told that a management team can make or break a business. It's why industry jargon like "skin in the game" has become so renowned, and why investors idolise companies that are founder-led. 

In fact, recent research from Reuters found that founder-led companies materially outperformed those led by "suits". Founder-led tech firms, in particular, saw earnings growth of around 30% over the past five years, while companies led by recruited managers saw their earnings rise approximately 6.7%. 

So in this thematic episode of Buy Hold Sell, Livewire's James Marlay is joined by Montgomery Investment Management's Roger Montgomery and Investors Mutual Limited's Simon Conn for a look at the best management teams across the ASX. 

Our fundies will point to their favourite management teams (and outline why) across financials, energy and resources, retail, technology and healthcare. Plus, they also highlight the common attributes of killer management teams and boards so you can identify them yourself. 

Note: This episode was filmed on Wednesday 13th October 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/10-of-the-asx-s-best-management-teams/