Buy Hold Sell, by Livewire Markets

Ouch! Fundies reveal their worst calls from 2021

With the S&P 500 and the S&P/ASX 200 racing ahead approximately 27% and 10% in 2021, it's fair to say investors have had a surprisingly good year. Despite the ups and downs of COVID-19 (of which we are still suffering through now), lockdowns, and border closures, if investors were fully invested, they would have walked away with truly impressive returns over the past 12 months. 

That said, there are always some positions that hurt more than others, which cause both headache and heartache as we watch their share prices fall lower and lower. 

And while it's easier said than done to cut your losses, as revealed in this video, it can sometimes pay to stay convicted in a poorly performing position. 

As part of our annual Outlook Series, we took it to nine of Australia's most respected fund managers to share their worst trade of 2021. From companies that saw their share prices halve during the year, to calamity over a capital raising, an IPO gone wrong and an opportunity forgone, our Sydney-based fundies candidly reveal the painful positions (or lack thereof) that kept them up at night during the 12 months just past. 

Plus, they share the lessons they took away from these headaches so you can better invest in 2022.   

Our featured experts include:

• Simon Shields, Monash Investors 
• Eleanor Swanson, Firetrail Investments 
• Steve Johnson, Forager Funds 
• David Moberley, Paradice Investment Management 
• Hamish Carlisle, Merlon Capital Partners
• Chris Demasi, Montaka Global Investments 
• Bob Desmond, Claremont Global 
• Anthony Aboud, Perpetual Asset Management 
• Matthew Kidman, Centennial Asset Management 

The dogs and darlings of 2021 (and the stocks to watch in 2022)

Just like Tim Paine for cricket fans, La Niña ruining Summer plans, or the new Home Alone reboot (or as some people call it, a colossal waste of time), the S&P/ASX 200 has had a handful of disappointments (or dogs, if we are being honest) in 2021. 

Every portfolio has at least one - or a few - and even the professionals will make some bad calls. But with the Index racing around 10% ahead since the beginning of 2021 (despite inflationary fears, lockdowns and new COVID variants), there has also been a fair share of darlings. 

So in this end of year special, Livewire's James Marlay is joined by Tribeca Investment Partners' Jun Bei Liu and Market Matters' James Gerrish for their take on the highs and lows of 2021. 

Plus, they also point to the headwinds and tailwinds investors should look out for over the year ahead, as well as a few winning stocks that could soar in 2022. 

Note: This episode of Buy Hold Sell was shot on Tuesday 7th December 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/the-dogs-and-darlings-of-2021-and-the-stocks-to-watch-in-2022/

Buy Hold Sell: 5 stocks with sparkling New Year‘s resolutions

In exactly two weeks, 2021 will be behind us. And what a year it has been. New lockdowns, new COVID strains, and an ever-volatile market that continues to push higher.

As with every new year, comes the lauded tradition of resolutions (New Year, new you - right?). Whether it's continuing on with the good work you put in in 2021 (like investing each month or finally making use of that gym membership), changing that undesirable habit (like, ahem, a pledge to stop ordering Uber Eats), or finally taking a holiday in 2022.

Just like us, some of our local listed stocks have sparkling plans for the New Year. Think mergers and acquisitions, new product launches, and new CEOs - set to help these Aussie stocks soar over the year ahead.

So in the final episode of Buy Hold Sell for the year, we invited Tribeca Investment Partners' Jun Bei Liu and Market Matters' James Gerrish to share their thoughts on three businesses with big plans for 2022.

And just because we can't bear to leave you all in 2021 without a stock pick, Jun Bei and James name two winning stocks with big plans for the year ahead.

Thanks for watching Buy Hold Sell this year, we hope you enjoyed it as much as we did.

Note: This episode of Buy Hold Sell was shot on Tuesday 7th December 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-with-sparkling-new-year-s-resolutions/

Buy Hold Sell: 3 Christmas specials and 2 for a turnaround

It's beginning to look a lot like Christmas. Fairy lights are out in force, sky-high pine trees adorn every office, and Australian's are out painting the town a festive shade of red.  

And while we have suffered through a touch of volatility over the past few weeks (thanks to a new COVID-variant), December, as it has in previous years, has started out with a bang. 

The S&P/ASX 200 has lifted nearly 2% over the past week. But there are still some stocks that could rally further as we head into the New Year and beyond. These include Tyro Payments and Harvey Norman, both of which could benefit from the annual Christmas rush, as well as Qantas Airways - whose planes are already taking off (both domestically and internationally) while its share price stalls. 

In this Christmas special, Livewire's James Marlay is joined by Tribeca's Jun Bei Liu and Market Matters' James Gerrish for their thoughts on these three beaten-down stocks. Plus, they also name two stocks that are ready for a turnaround in 2022. 

Note: This episode of Buy Hold Sell was shot on Tuesday 7th December 2021. You can read to an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-3-christmas-specials-and-2-for-a-turnaround/

Buy Hold Sell: 3 of 2021‘s hottest IPOs and 2 to look forward to

Even though the world feels like it has become increasingly divided in 2021, there have been a handful of moments that each and every one of us can celebrate. After all, we finally freed Britney, the Toyko Olympics didn't let Delta rain on its parade, and Australian businesses have survived more lockdowns than we would have liked and come out on the other side bigger and better than ever.  

In fact, there have been 153 initial public offerings on the ASX this year, up from just 67 in 2020. That's an increase of more than 153%. And in case you thought 2020 may have just not been a great year for IPOs - it was the year "coronavirus" became a household name, after all - there were 64 in 2019 (according to IPO watch). 

That said, only a handful of this year's IPOs have caused a media frenzy and captured the public's attention. So in this episode, Livewire's Ally Selby is joined by Ausbil Investment Management's Arden Jennings and Wilson Asset Management's Tobias Yao for their thoughts on three of 2021's most anticipated IPOs. 

Plus, with 2022 only four weeks away (we did it!), they share two for you to look out for over the year ahead. 

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-this-year-s-hottest-ipos-and-2-to-look-forward-to

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/