Buy Hold Sell, by Livewire Markets

Buy Hold Sell: How to maximise your income on the ASX

Let’s face it: We’re all capable of being mesmerised by headlines.

Whether it's a cracking headline on Livewire or an attractive headline price at the shops ($199 is always more appealing than $200), we’re often reluctant to read the fine print or understand what’s going on beneath the surface.

But that reluctance can get you into trouble, particularly when it comes to income investing.

There is a point at which a headline yield starts to look more like a pitfall than a probability and there are ways to construct portfolios that maximise the income opportunity.

If you’re wondering what that point is, then wonder no more. On today’s episode of Buy Hold Sell, Michael Price from Ausbil and Reece Birtles from Martin Currie share with Livewire's Ally Selby the number at which a dividend yield becomes a red flag.

They also share the factors they look for when hunting for great income stocks and, of course, a couple of opportunities they particularly like right now. 

Note: This episode was recorded on Wednesday 11 September 2024.

Buy Hold Sell: 5 stocks slashing their dividends

While the August reporting season was mixed itself, the dividend outlook isn't so rosy. 

Companies are hoarding their cash, with the payout ratio of the Australian market falling from 62% pre-COVID to 53% today, according to Martin Currie. 

The dividend yield for the Australian stock market has also fallen in recent years, with the All Ords now yielding 3.70% compared to the historical average of 4.07%.  

So, should investors still hold companies that have announced they will be cutting their dividends or slashing them completely? 

To find out, Livewire's Ally Selby was joined by Martin Currie's Reece Birtles and Ausbil Investment Management's Michael Price for their analysis of three stocks that have done exactly that. 

Plus, for a little bit of a challenge, we asked our guests to name a stock they are buying today despite announcing they would be cutting or culling their dividends at their August reports.

Note: This episode was recorded on Wednesday 11 September 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-5-stocks-slashing-their-dividends/ 

Buy Hold Sell: 3 stocks that have been smashed (and 2 big buys)

If you feel like your portfolio has taken a hit over the last month, spare a moment of silence for shareholders in stocks like Johns Lyng Group, Audinate, Tabcorp, Megaport, A2 Milk, Kelsian, Mineral Resources, EML Payments, Yancoal, Star Entertainment, Cettire, Liontown, Neuren Pharmaceuticals, Red Hill Minerals, and Boss Energy. 

All in all, 117 companies in the All Ords shed more than 10% during the month, 29 saw their share prices fall more than 20%, and eight tumbled more than 30%. For context, the All Ords itself ended the month pretty much flat. 

So, in this episode, Centennial Asset Management's Matthew Kidman was joined by First Sentier Investors' David Wilson and Medallion Financial's Michael Wayne for their analysis of three stocks that have been smashed over the past month in the hunt for some value on the ASX. 

Plus, the fundies also name two stocks they believe have serious upside ahead of them.  

Note: This episode was recorded on Tuesday 27 August 2024. You can read the transcript below. 

https://www.livewiremarkets.com/wires/buy-hold-sell-3-stocks-that-have-been-smashed-and-2-big-buys 

The best and worst results this reporting season

Just like the leaders and losers of the ASX 200 in 2024, the August reporting season has been a tale of two halves. 

According to FNArena's corporate results monitor, 36% of companies have missed analyst expectations this results season, while 30.4% have delivered beats. 33.7% of companies delivered results that were in line with analyst expectations. Unsurprisingly, there have been more downgrades than upgrades over the past month. 

So, to help you digest the good, bad and (let's face it, mostly) ugly of the FY24 earnings season, Centennial Asset Management's Matthew Kidman was joined by Medallion Financial's Michael Wayne and First Sentier Investors' David Wilson. 

They analysed some of the recurring themes that emerged over the last month, revealed whether they have made any portfolio changes in light of these, and named some of the companies that really impressed with their results. 

Plus, they share the company that they think had the worst result this August. 

Note: This episode was recorded on Tuesday 27 August 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/the-best-and-worst-results-this-reporting-season/ 

Buy Hold Sell: 5 solid results the market missed

We've seen some real whiplash market moves this reporting season. Take Megaport, for instance, which fell 21% in one trading day. Or Audinate, which fell 36% on its preliminary results. Or, on the other side of that, WiseTech, which soared more than 18% on its stellar report.

But what about the stocks that didn't move, or hardly moved at all - despite releasing solid results this reporting season?

In this episode of Buy Hold Sell, Centennial Asset Management's Matthew Kidman was joined by First Sentier Investors' David Wilson and Medallion Financial's Michael Wayne for their analysis of three stocks that did just that.

Plus, they named two solid results that believe could make major market moves in the next few months.

Note: This episode was recorded on Tuesday 27 August 2024. You can read the edited podcast below. https://www.livewiremarkets.com/wires/buy-hold-sell-5-solid-results-the-market-missed 

Buy Hold Sell: 5 stocks spewing out a hell of a lot of cash

Cash flow is a great measure that allows investors to get a good look at how well a company is balancing its earnings against its expenses.

Companies with positive and growing cash flows can hire talented people, invest in innovation, make acquisitions, buy back shares and pay dividends. And there are a few companies on the ASX that are currently spewing out a LOT of cash.

So, in this episode, Livewire's Ally Selby was joined by Perpetual's Nathan Hughes and Hayborough's Ben Rundle for their analysis of three highly cash-generative stocks. Plus, they each name two cash flow kings of their own.

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-stocks-spewing-out-a-hell-of-a-lot-of-cash 

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