Buy Hold Sell, by Livewire Markets

Rotate or stay? Playing the small cap rally’s next phase

Since the market bottomed in late March, the S&P/ASX Small Ordinaries Index has soared over 40%. However, it's evident that the rebound is thus far two-tiered in nature; e-commerce and technology-oriented stocks have done much of the heavy lifting and left nearly everything else in their wake.

The key question for investors now is whether the dichotomy in sector performance presents an opportunity to take profit from the exuberantly expensive 'online' stocks and redeploy it into the laggards... or is it the case that the world really has changed and the COVID-19 winners will keep on winning?

Here, Gary Rollo of Montgomery and Chris Stott from 1851 Capital discuss this thematic and whether its time for investors to make a big portfolio pivot into the small caps which have been behind.

Visit Livewire Markets to access the video and edited transcript for this episode.

Note: This episode was recorded on 9 September 2020.

Buy Hold Sell: 7 ETFs exposed to structural growth themes

Search queries for exchange-traded funds (ETF) have exploded in 2020, especially on the back of COVID-19. The number of people seeking information on Google for this investment vehicle has popped 88% from this time last year, and queries such as "Investing in ETFs", "Managed funds vs ETFs" and "Vanguard ETFs" are proving particularly popular.

With interest in ETFs abuzz and a strong appetite for growth ideas from readers, Livewire decided it was about time we brought ETFs into the world of Buy Hold Sell. Join Vishal Teckchandani as he talks to investment advisers Charlie Viola of Pitcher Partners and James Whelan from VFS Group.

They sit down to discuss three ASX ETFs which have been delivering sizzling returns in 2020 and then bring four of their own ASX and global ideas offering strong prospects for capital growth right now. Together, we cover hot thematics including healthcare, China, gold, robotics, 5G, US tech and a better way to play Aussie equities than simply buying the ASX 200.

Visit Livewire Markets to access the video and edited transcript for this episode as well as more great insights. Note: This episode was recorded on 9 September 2020.

Buy Hold Sell: 5 small caps chasing big markets

Companies developing products for massive end markets are one of the hottest vectors of opportunity in the market right now. The idea is simple: develop a product or solution that requires a relatively low fixed cost but meets the needs of a large population.

In this episode of Buy Hold Sell, Chris Stott of 1851 Capital and Gary Rollo from Montgomery Investment Management debate three small caps ripe for this thematic. They include 1) City Chic Collective - A specialty fashion retailer benefiting from the shift to online sales; 2) Megaport - A leading network-as-a-service provider; 3) EML Payments - A specialist in general reloadable and gift card payment solutions.

We also asked each of our guests to nominate a small cap stock with a big opportunity that they think looks attractive right now.

Buy Hold Sell: 5 of Livewire's most searched stocks

At Livewire we’ll cheerfully admit that we’re a little obsessed with analysing data and using algorithms in various ways to serve you the best and most relevant content. One feature we’ve seen explode in popularity is the ‘Search Livewire’ function (up there, at the top). If you punch in a stock code, you’ll find the latest wires and contributors discussing those companies.

In this week’s Buy Hold Sell, we’re going to examine the stocks Livewire users have been searching for most over the last 30 days. They include: 1) A company that traditional forms the bedrock of equity income portfolios; 2) A healthcare giant stuck in a rut, 3) A biotech hopeful, 4) A mining stock that’s been left out of the gold rally, and 5) A payments business whose share price is languishing.

And while Livewire users have a solid nose for opportunity, do the experts believe they are heading for a dead-end? We bring James Gerrish of Market Matters and Henry Jennings from Marcus Today on the show for their views.

Visit Livewire Markets to access the video and edited transcript for this episode. Note: This interview was recorded on 26 August 2020.

Buy Hold Sell: 4 outstanding results (and 2 shockers)

There’s no doubt this year has been a shocker thanks to the pandemic. And the latest reporting season has got in on the act by providing us with another jolt to the senses. The latest one delivered a few eyes-wide-open, jaw-dropping results, although that’s not to say it was all shockingly bad.

In this episode of Buy Hold Sell, Henry Jennings from Marcus Today and James Gerrish of Market Matters cast their eyes over the recent reporting season and share their views on some of the standout results.

They reveal the companies they graded as a massive fail and why, as well as those that surprised on the upside. We also asked them to pick a result that they thought was outstanding but the market overlooked.

Visit Livewire Markets to access the video, transcript and more great insights. Note: This interview was recorded on 26 August 2020.

Buy Hold Sell: 5 Comeback Kings

Who doesn’t adore the so-called “Comeback Kings”? These are companies that were stuck in a miserable rut and written-off by the market… only to then soar back to stardom. In this episode of Buy Hold Sell, James Gerrish of Market Matters and Henry Jennings from Marcus Today ruminate over five ASX stocks that have come back from a prolonged slump or relative underperformance and are now smashing 52-week highs.

They include 1) A technology stock motoring away despite a fall in reported revenue, EBITDA and NPAT; 2) A food business benefiting from the eat-at-home boom; 3) A mining stock created from a disastrous merger.

Our guests opine on whether the share price gains are due to good management execution or whether they are beneficiaries of external factors that could unwind. James and Henry also pick out their two favourite turnaround stocks right now.

Visit Livewire Markets for the full transcript, video and more great insights.

Note: This video was filmed on 26 August 2020.

Buy Hold Sell: 5 pandemic-proof small caps

If you think big caps are the only defensive stocks, think again. Small caps have led the way to a recovery, proving that they really can be resistant to external shocks. Since March lows, the ASX Small Ordinaries is up ~66% (as of August 20), with no signs of slowing down.

On this episode of Buy Hold Sell, Ben Clark of TMS Capital is joined by Victor Gomes of Eiger Capital to discuss the small-cap stocks that are marching to the beat of their own drum.

The stocks discussed include 1) A technology company that trades at a forward PE of 73x and pays a small dividend, 2) An essential service which is paying a reasonable dividend, and 3) A company flying under the radar. As usual, our guests bring along two stocks that fit the recession-resistant thematic.

Visit Livewire Markets to view the video and access the full transcript. Note: This interview was recorded on 12 August 2020.

Digging for gems in the commodities market

At a high level, the commodities sector appears to be a bright spot in a market ravaged by the pandemic. The S&P/ASX Metals & Mining Index has advanced 7% year-to-date, compared to a nearly 10% fall for the All Ordinaries.

But as investors are well aware, commodity prices don't behave in a homogenous manner. Whereas precious metals such as gold and bulk commodities including iron ore have staged impressive rallies - the likes of oil, lithium and uranium have languished. With select part of the commodities universe having delivered astonishing returns over the last five years, is it time for investors to dig around for better value elsewhere?

Here, Victor Gomes of Eiger Capital and Ben Clark from TMS Capital discuss this very topic, their process for picking resources stocks and their highest conviction plays in the sector right now.

Visit Livewire Markets to access the edited transcript and podcast for this episode, and more great insights: 

Please note: This interview was recorded on 12 August 2020.

Buy Hold Sell: 5 small caps with rock-solid dividends

The financial fallout from COVID-19 is now in plain sight as the first wave of results which fully capture the damage from forced lockdowns are released to the market. For income investors, the profit drops and subsequent dividend reductions (or lack of increases) from traditional payers such as CBA, Telstra and Transurban are sobering.

But while blue-chip yield companies are suffering, opportunities are brewing in the world of small caps, where select businesses are thriving and boosting payouts. Victor Gomes of Eiger Capital makes his debut on this episode of Buy Hold Sell to join Ben Clark of TMS Capital. They discuss five stocks within the small-cap universe offering solid and sustainable dividends with the potential for capital growth.

The stocks discussed range from a retailer tapping into the online shopping boom and churning out a 5%+ fully franked dividend to a defensive technology company with pricing power and a solid 4.4% yield.

Visit Livewire Markets to access the video and podcast for this discussion.

Note: This episode was filmed on 12 August 2020.

Buy Hold Sell: 5 tech small caps with massive addressable markets

Some of the most fabled investment success stories of today include the likes of Apple, Afterpay, Microsoft and Shopify. If we consider the common factors that tie these companies, they include: 1) They offer a loved or essential product; 2) Their business model can be scaled easily, and 3) Most importantly, the end market is gargantuan and covers most consumers and businesses globally.

In this episode, Arden Jennings of Ausbil Investment Management and Tobias Yao of Wilson Asset Management discuss 5 tech-oriented ASX small caps that possess these three explosive ingredients. Their end markets range from the US$6 trillion digital payments opportunity in the US, Canada and Australia combined to soaring data storage demand and the church itself.

Visit Livewire Markets to access the podcast and transcript for this episode. Note: This episode was filmed on 29 July 2020.