Buy Hold Sell, by Livewire Markets

The 13 best small and mid-cap management teams on the ASX

Management teams can make or break a business. Good management teams focus on a company's long-term success, are aligned with shareholders, and are usually good stewards of capital. 

Bad management teams, however, may make "transformational acquisitions" that aren't in the best interest of a business, take on too much debt, dilute shareholders, and are more focused on the short term. 

Management teams - whether they be founders or hired suits - are particularly important to the success of small and mid-cap companies. These companies need aligned and driven leaders to help navigate the many economic potholes they will likely encounter, and help steer the team so a business can continue on its path to growth. 

So, in this episode of Buy Hold Sell, Livewire's Ally Selby was joined by Perpetual's Nathan Hughes and Hayborough's Ben Rundle for their tips on distinguishing the best management teams in the business. 

Plus, they name their favourite management teams across technology, financials, retail, healthcare and resources. 

Note: This episode of Buy Hold Sell was recorded on Wednesday 14 August 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/the-13-best-small-and-mid-cap-management-teams-on-the-asx

Buy Hold Sell: 5 oversold ASX stocks

Like most things in life, stock sell-offs come down to simple supply and demand. If there are more sellers than buyers, a company's share price will fall.

But in today's market, nearly 30 companies now trade at 52-week lows and many others have suffered double-digit losses over the last 12 months.

So, are these oversold companies value traps or investable opportunities?

To find out, Livewire's Ally Selby was joined by Perpetual's Nathan Hughes and Hayborough Investment Partners' Ben Rundle.

They analyse three oversold companies and also name two beaten-down stocks that they believe are a buy today.

Note: This episode of Buy Hold Sell was recorded on Wednesday 14 August 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/buy-hold-sell-5-oversold-asx-stocks 

Buy Hold Sell: 5 of the fastest-growing stocks on the ASX for FY25

Growth stocks had been on a tear in 2024, with investors betting big on rate cuts at the end of the year and throughout 2025. The last month, however, has been a slightly different story. 

The NASDAQ 100 has dropped more than 13% since hitting a peak on July 10. And while our local tech tracker, the S&P All Tech Index (XTX) held up relatively well throughout July, the index crashed 8% in the first week of August. 

While the last week has been painful for many investors, growth stocks are now far cheaper than they were a few weeks ago. So, is now the time to load up on some of these names? 

To find out, Livewire's Ally Selby was joined by Marcus Today's Henry Jennings and Market Matters' James Gerrish for their analysis of five of the fastest-growing stocks on the ASX - according to earnings per share (EPS) expectations for FY25. 

Happy bargain shopping! 

Note: This episode was recorded on Wednesday 31 July 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/buy-hold-sell-5-of-the-fastest-growing-stocks-on-the-asx-for-fy25 

50% of the ASX is banks and miners. Should you bet against the market?

It's no secret that the ASX is incredibly concentrated. 50% of the ASX 200 is made up of banks and miners. In the top 10 stocks on the ASX alone, only three (CSL, Wesfarmers and Goodman Group) don't fit within the financial or materials sectors.

The S&P/ASX 200 Financials index has risen 23.99% over the last 12 months, while the Banks index has pushed 27.82% higher. All the indices that track materials and miners, on the other hand, are in the red - except for the index tracking gold companies, which has soared 19.04%. For context, the ASX 200 has lifted 8.88% in the last 12 months. 

So, is concentration a curse? Or should we be putting our trust in Mr Market to get it right?

To find out, Livewire's Ally Selby was joined by Market Matters' James Gerrish and Marcus Today's Henry Jennings. 

They share the risks and opportunities that come with concentration, how they are positioned on banks and miners, as well as one theme (and one stock) they are really excited about over the next 12 months. 

And just because we love a dash of drama, we also asked our guests to name a big bank or miner that they would rate a "STRONG SELL" today. 

Note: This episode was recorded on Wednesday 31 July 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/50-of-the-asx-is-banks-and-miners-should-you-bet-against-the-market 

Buy Hold Sell: 5 stocks likely to surprise to the upside this reporting season

It's not shaping up to be an easy reporting season, with weakening consumer sentiment and business conditions, as well as a softening labour market, taking a toll on Australia's listed companies. 

That said, while analysts believe earnings will disappoint this August results season, with Goldman Sachs and Macquarie predicting a 3.8% and 6% drop respectively, they dangle the carrot for investors - arguing that earnings will rebound over the year ahead. 

So which stocks could surprise investors, beating expectations this results season? 

To find out, Livewire's Ally Selby was joined by Marcus Today's Henry Jennings and Market Matters' James Gerrish for their analysis of three stocks that could beat consensus predictions for their earnings result this August. 

Plus, they also put their necks on the line and each name a stock that they believe will crush it with an earnings beat. 

Note: This episode was recorded on Wednesday 31 July 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-likely-to-surprise-to-the-upside-this-reporting-season 

Buy Hold Sell: 2 high-conviction fundies analyse each other's top picks

There are many market maxims that investors hold close to their hearts. Here are just a few of them:

• It's time in the market not timing the market.
• Buy the rumour, sell the fact.
• Be fearful when others are greedy. Be greedy when others are fearful!
• It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong. 

But perhaps one that should also be added to the list is "Two views make a market" - highlighting that to buy shares in a company, someone has to be willing to sell them - and vice versa. 

So in this episode, Livewire's Ally Selby was joined by Loftus Peak's Alex Pollak and Magellan's Alan Pullen for a bit of a challenge. 

We've tasked our fund managers to analyse each other's highest-conviction ideas in their portfolios today - including stocks like Netflix (NASDAQ: NFLX), Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN) and SAP SE (NYSE: SAP). 

Plus, they also each name a stock that they would dub a high-conviction "SELL". As you'll soon find out, both of these stocks have sunk into the red in the past week. 

Note: This episode was filmed on Wednesday 17 July 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-2-high-conviction-fundies-analyse-each-other-s-top-picks/ 

Why you should only focus on your best ideas (and 2 to get you started)

Back in May, Livewire sat down with the chief investment officer of a family office - i.e. the steward of a billionaire client's wealth. 

The main takeaway, for this anonymous writer at least, was that Australia's ultra-wealthy are on the hunt for concentrated, high-conviction funds - those that hold a smaller number of stocks, look very different from the benchmark, and generate returns far different from the index too. 

So in this episode of Buy Hold Sell, we're hoping we can learn what sets these types of funds apart - and of course, whether investors at home can replicate these strategies too. 

To do that, Livewire's Ally Selby was joined by Magellan's Alan Pullen and Loftus Peak's Alex Pollak. They share the case for concentrated strategies, how they identify the stocks that make their way into portfolios, the perfect number of holdings, ideal holding times and turnover. 

They also provide an example of a stock that didn't perform as expected and what they learnt from that, their best-performing positions since their funds' inception, and their highest conviction ideas from their portfolio of best ideas for markets today. 

Note: This episode of Buy Hold Sell was recorded on Wednesday, 17 July 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/why-you-should-only-focus-on-your-best-ideas-and-2-to-get-you-started 

 

Buy Hold Sell: 5 mispriced growth stocks

Growth stocks have had a truly spectacular 12 months, with many fortunes being made from investing in stocks like NVIDIA (NASDAQ: NVDA) and Super Micro Computer (NASDAQ: SMCI), which have soared 154% and 170%, respectively. 

In the last year alone, the NASDAQ 100 has lifted 26% - meaning, over the past five years, the bourse is now up 153%. Ahh! The benefit of retrospect. 

So, is there any value left on offer among the world's greatest growth stocks? 

To find out, Livewire's Ally Selby was joined by Loftus Peak's Alex Pollak and Magellan's Alan Pullen. 

They analysed three growth stocks, including Qualcomm (NASDAQ: QCOM), Microsoft (NASDAQ: MSFT) and Walmart (NYSE: WMT) and each named a growth stock that they believe has been undervalued by the market. 

Happy bargain hunting!

Note: This episode of Buy Hold Sell was recorded on Wednesday 17 July 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-mispriced-growth-stocks/ 

Buy Hold Sell: 2 high-conviction healthcare winners for FY25

Healthcare stocks have been some of Australia's most consistent wealth generators, with stocks like CSL (ASX: CSL) skyrocketing more than 6000% since listing on the ASX 25 years ago.

 

Over the past 20 years, the S&P/ASX Health Care Index has far outperformed the rest of the market, lifting 994% compared to the S&P/ASX 200's 121% over that same period. By a long shot, it has been the ASX's best-performing sector over the past 20 years.

 

And yet, while COVID-19 put our health back into the spotlight, healthcare stocks have been a mixed bag since then. Yes, the developed world's populations are ageing - which spells good things for healthcare companies, but many of the sector's former darlings are now on life support.

 

So how can investors identify the companies with a clean bill of health? To find out, Livewire's Ally Selby was joined by two healthcare analysts in Alphinity Investment Management's Stuart Welch and Yarra Capital Management's Marcus Ryan.

 

They share some of the trends they are seeing in terms of valuation, cost pressures, and supply chain challenges, whether investors need specialist knowledge to be successful when investing in the sector, and the one non-negotiable healthcare companies need to make their way into these fund managers' portfolios.

 

Plus, they also analyse three healthcare companies, including CSL (ASX: CSL), Ansell (ASX: ANN) and Sonic Healthcare (ASX: SHL), and each name their highest conviction stock pick within the sector.

 

Note: This episode was recorded on Wednesday 10 July 2024. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/buy-hold-sell-2-high-conviction-healthcare-winners-for-fy25 

2 big buys (and the next steps for consumer stocks)

Consumer stocks are split into two distinct categories - those that are sensitive to economic cycles (discretionaries) and those that aren't (staples). Both, however, have been on a tear over the past 12 months, despite a cost of living crisis that is continuing to take a bite out of Australians' wallets. 

Take Lovisa, for instance, which has soared 59% over the past 12 months. Or Wesfarmers, up 35%. Or Nick Scali, up 44%. Meanwhile, consumer staples stocks, like Bega Cheese, Inghams, and Treasury Wine have risen 41%, 35% and 11% respectively. 

All this is to say that the sector is looking pretty hot - other than the supermarkets, of course. However, with savings now starting to dry up, and the economy beginning to slow, how much longer can these stocks hold up? 

 

To find out, Livewire's Ally Selby was joined by two consumer-focused analysts in Alphinity Investment Management's Jacob Barnes and Wilson Asset Management's Hailey Kim. 

They share where they are seeing opportunities within the two sectors, some of the trends they believe investors should be aware of and outline which factors will be important to success over the coming 12 months. 

Plus, they analyse three major players within the sectors and share their highest conviction buys right now. 

Note: This episode was recorded on Wednesday 3 July 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/2-big-buys-and-the-next-steps-for-consumer-stocks