Buy Hold Sell, by Livewire Markets

Buy Hold Sell: 5 undiscovered micro-cap gems

They used to say "Great things come to those who wait." But it took Abraham Lincoln to realise "Great things may come to those who wait, but only the things left behind by those who hustle."

And (segue alert) it seems that Australia's micro caps have been doing just that: hustling.

The MSCI Australia Micro Cap Index returned 36.34% over the past 12 months (to Feb 26). An undeniably impressive gain, compared to the S&P/ASX200's 3.6% return over the same period. 

In this episode of Buy Hold Sell, Livewire's Ally Selby, as well as micro-cap experts James Dougherty from Lennox Capital Partners and Nick Guidera from Eley Griffiths Group, put five undiscovered micro-cap gems to the test. 

And believe us, there's a few in there to put on your watchlist. 

Buy Hold Sell: 3 stocks smashing expectations and 2 overlooked winners

As Kurt Vonnegut once wrote, "peculiar travel suggestions are dancing lessons from God.” I don't know quite what he meant either, but what I do know is that, peculiar or not, the market seems ready to believe we're all in a much better place to consider travel and all that comes it - getting all sparkly for some fine wining and dining, for example - than it has for some time.

After all, Webjet, Lovisa and Treasury Wine Estates remarkably smashed expectations this reporting season, despite the vigorous headwinds COVID hurled their way.

In this episode of Buy Hold Sell, Centennial Asset Management's Matthew Kidman puts these three expectation-smashing stocks on the chopping block, to see if Aberdeen Standard Investments' Michelle Lopez and Monash Investors' Simon Shields are throwing their cash at these stocks as they climb higher. Plus they share one pick that they think has been overlooked by the market.

Volatility ahead, why these fundies aren't selling yet

Well, that's a wrap on reporting season, and what a boomer of a season it was. Data provided by FNArena shows that February 2021 had the lowest percentage of companies to miss expectations ever recorded. It comes after ABS data revealed that Australia experienced a second quarter of GDP growth of over 3% in Q4 2020. 

It's not all fun and games though. While the beats have been numerous, markets remain choppy. Last week the NASDAQ lost over 6% and the ASX All Ords is down 2%. So what will this mean for markets?

To answer this, Matthew Kidman is joined by Aberdeen Standard's Michelle Lopez and Monash Investors' Simon Shields as the trio reflect on reporting season, rising bond yields and the rotation from COVID-winners to losers.

Buy Hold Sell: 3 outstanding results and 2 shockers

In the words of Curb Your Enthusiasm and Seinfeld creator Larry David, there is no denying that February's reporting season was Pretty, pretty ... pretty good.

Nearly half of the company's that reported their half-yearly results beat analyst expectations, while 61 stocks received upgrades. Cyclical sectors like Mining, Resources, Materials, and Financials were top performers during the month, rising 6.4%, 6.0%, 5.8%, and 3.6%, respectively.

However, it wasn't all rosy, with a handful of not-so-impressive reports resulting in cascading share prices and 43 broker downgrades. In this episode of Buy Hold Sell, Centennial Asset Management's Matthew Kidman speaks to Aberdeen Standard Investments' Michelle Lopez and Monash Investors' Simon Shields for their take on the winners and losers of reporting season, and what they are still buying despite both the good and bad news.

Buy Hold Sell: 3 tech titans and 2 long-term winners

Those who invested in tech titans Tesla, Tencent and Microsoft at their listings are no doubt laughing all the way to the bank (a brief stopover, before jumping aboard their 500-foot superyacht in the Maldives to celebrate their success with the world's finest caviar and a case of Cristal).

Why? Well, at IPO, Tesla's shares were just US$17, Tencent's shares were HK$3.70, while Microsoft's were just US$21, returning a whopping 4,265%, 18,468% and 1017% respectively since then. But are these companies midway to the stratosphere, or is this the end of the ride?

In this episode of Buy Hold Sell, Livewire Markets' Ally Selby spoke to Magellan's Vihari Ross and Montaka's Chris Demasi for their take on these three mega caps, as well as two stocks that they believe will rain returns for investors over the long term.

Do you have any questions for our fundies?

Next week, Aberdeen Standard's Michelle Lopez and Monash Investors Simon Shields will take you through the highs and lows of reporting season, as well as how they have positioned their portfolios since. If you have any questions for our fundies - whether it be on tips for assessing results or stock-specific analysis - let us know in the comments section below.

Why these fundies are still bullish on tech platforms

Unless you have been living under a rock or happened to be searching for this article on Facebook (too soon?), you probably know about the Australian government's legislative attempt to make big tech pay local news publishers for content. 

In short, the News Media Bargaining Code (which is still winding its way through parliament) is intended to level the playing field between tech platforms and news media companies. Not surprisingly, it has sent ripples of anxiety around the digital media world, with Facebook and Google taking radically different stances in the stand-off. 

To explain what this all means for investors, Livewire's Ally Selby spoke to Magellan's Vihari Ross and Montaka Global Investments' Chris Demasi. They discuss the repercussions of this news for investors in Facebook and Google, the potential windfall for publishers, as well as whether regulation curbs companies' ability to grow and innovate. 

Buy Hold Sell: 3 global giants and 2 due for a pullback

Hello and welcome aboard Livewire Market’s flight A2021. Lean back, ready the snacks and throw on some of your favourite tunes - Buy Hold Sell is back for another week and this time we are going global. 

Why? Because you asked for it, and we listened. When our annual survey went out, requests for more coverage of global equities was high on your wishlist. 

Welcoming you aboard this much-anticipated expedition is Livewire Markets' Ally Selby, who will also be introducing you to high-flying co-pilots Vihari Ross from Magellan and Chris Demasi from Montaka Global Investments. 

Our team will be sharing their insights on global giants Kellogg's, Visa and Spotify and we also asked our fundies to nominate a high-flying stock that they think is over-hyped. 

Buy Hold Sell: The 5 highest-yield stocks on the ASX

If there is anything we Australians love more than backing the underdog or a Bunnings banger, it's bang for our buck. Perhaps, this is why we worship the ground upon which our dividend stocks walk, with capital gains and a regular share of a company's earnings the reward for our adoration. 

So, in this episode of Buy Hold Sell, we thought we would take it to the experts to get their take on the highest-yielding stocks on the ASX. Livewire's James Marlay spoke to Investors Mutual's Michael O'Neill and Plato Investment Management's Peter Gardner to discuss these five sky-high yield candidates. 

However, a word to the wise, high yield can often be a tantalising trap. For this reason, the highest-yielding stock on this list (around 20% trailing yield), was dubbed a "sell" by both our experts.

Note: The stocks featured in this episode of Buy Hold Sell were chosen for their high trailing dividend yields (dividends over 12 months divided by share price). There are a variety of reasons why yield may be high, for example, a one-off special dividend or a plunging share price. Watch, read or listen to the discussion below. This episode was filmed on 3 February 2021. Trailing yields in edited transcript taken from the date of filming. 

Where to find sustainable income and 2 traps to avoid

Dividend payments are back baby, or slightly more sustainable dividends at that. And with research from UBS finding dividends and franking credits accounted for 87% of returns from the ASX200 over the past decade, it couldn't have come any sooner.

Income investors suffered a bashing in 2020, with COVID-19 slashing any semblance of yield from the once-trusty banks and now-grounded travel stocks. While a one-off special dividend may have boosted spirits, investors have been left high and dry, hungry for a more sustainable source of yield.

In this video, Michael O'Neill from Investors Mutual and Peter Gardner from Plato Investment Management take you through their favourite sustainable sources of income in 2021 and call out two alluring yield traps to avoid.

Buy Hold Sell: 5 high-yield small caps

There isn't much that gets investor's blood running in a low-interest rate world like the promise of yield. More often than not, investors look to the top end of the market for yield stocks, but it's outside the ASX100 where uncovered dividend gems can be unearthed.

In this episode of Buy Hold Sell, Livewire's James Marlay spoke to Michael O'Neill of Investors Mutual and Peter Gardner from Plato Investment Management to discuss five ex-100 dividend candidates. Will these small caps impress the dividend detectives or are trailing yields a trap?

Stay tuned for a return of our new segment, Questions Without Notice, where Michael and Peter surprise each other with a never-before-seen question.

Note: The stocks featured in this episode of Buy Hold Sell were chosen for their high trailing dividend yields (dividends over 12 months divided by share price). There are a variety of reasons why yield may be high, for example, a one-off special dividend or a plunging share price. Watch, read or listen to the discussion below. This episode was filmed on 3 February 2021.