Hello all, I recorded the interview above with Rachel Pether from SALT (the alternative investment conference/forum founded by Anthony Scaramucci).
Portfolio Manager, Managing Partner
This Weeks Guest.
Robert Stretch, MD
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Episode 23: Time to sell? Mike and Claude go through EML, Shopify, Wisetech and other cult stocks in the market right now.
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1:08 – Michael and Claude discuss EML Payments (ASX:EML)
1:44 – The ethical dilemma of EML’s gambling exposure
2:40 – Problems relating to the sale high growth stocks
3:16 – EML’s acquisition of Prepaid Financial Services
3:44 – Accusations from Ownership Matters concerning EML
6:50 – The issue with ‘EBITDA’ as a financial metric
9:05 – Michael and Peter Stevens’ thoughts on EML
10:03 – The long-term threat for EML
10:50 – The macroeconomic impact of the coronavirus
12:10 – Does coronavirus’ growing risk as a pandemic change Frazis Capital’s view of market conditions?
13:45 – Chinese stimulus countering the impacts of the coronavirus
15:35 – Luxury brands negatively impacted by the coronavirus as shopping numbers fall
16:58 – Many Australian technology businesses are still trading at high multiples of sales
18:14 – Michael and Claude discuss Shopify (NYSE:SHOP) and its lofty valuation
22:08 – The global ecommerce opportunity for Shopify
23:30 – The only way to guarantee outstanding returns in fast-growing, high quality businesses like Shopify
25:40 – The pressure to sell Shopify and Frazis Capital’s long-term vision for the company
27:01 – The mentality of never buying at a higher price than a previous sell price
28:20 – Claude discusses his investment in Chant West (ASX:CWL)
29:38 – Chant West’s sale of its business for nearly double the market capitalisation at the time
30:33 – Microcaps more trouble than they are worth?
31:30 – Why Australian smallcap fund managers outperform
33:50 – Why Frazis Capital prefers companies with larger capitalisations
34:38 – People who have left the company and customers are the most useful insights into company dynamics
35:40 – Claude spends a huge amount of time researching the people involved in corporate Australia
37:00 – Frazis Capital’s thoughts on Wisetech (ASX:WTC) and its growth through acquisition
39:20 – J Capital raising questions about Wisetech’s accounting practices
41:25 – Issues regarding Wisetech’s streamlining of products as acquisitions roll in
42:00 – Claude’s failed investment in Vista Group (ASX:VGL)
43:10 – The long-term benefit of being long-only
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