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The 5 individual shares that returned the MOST in 2021 · She's On The Money

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Speaker 1: Just before we head into today's episode, we'd like to
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Speaker 1: acknowledge and pay respect to Australia's Aboriginal and Torres Strait
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Speaker 1: island of peoples. They're the traditional custodians of the lands,
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Speaker 1: the waterways and the skies all across Australia. We thank
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Speaker 1: you for sharing and for caring for the land on
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Speaker 1: which we are able to learn. We pay respects to
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Speaker 1: elders past and present, and we share our friendship and
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Speaker 1: our kindness.
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Speaker 2: She's on the Money, She's on the Money, Hello, and
0:46
Speaker 2: welcome to She's on the Money, the podcast for millennials
0:49
Speaker 2: who want financial Freedom.
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Speaker 3: You all adored our episode earlier in the year detailing
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Speaker 3: the top five ETFs of twenty twenty one. So today
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Speaker 3: we're going to steal that fall and do the exact
1:01
Speaker 3: same thing.
1:02
Speaker 1: But we've got a different co host. We've got Georgia
1:04
Speaker 1: not the producer says so look, maybe it was such
1:07
Speaker 1: a great episode because I wasn't on it. Who knows.
1:09
Speaker 3: We did get great feedback for Sammy Boyer, that's not
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Speaker 3: the case. I'm back in the chair.
1:15
Speaker 1: We missed our g king asking the questions.
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Speaker 3: Thanks too well. So today, as I said, we're going
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Speaker 3: to be stealing that format, but we're looking at the
1:22
Speaker 3: top five performing shares on the ASX two hundred from
1:25
Speaker 3: last year, so we're moving to shared George shares.
1:28
Speaker 1: Correct genius. Now the original guy.
1:31
Speaker 3: Exactly my name is Georgia King and joining me to
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Speaker 3: reflect on exactly what happened last year and why is
1:38
Speaker 3: Financial Advisor Victoria Devine the You're basically bursting out of
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Speaker 3: your boots over there, as they say, on a scale
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Speaker 3: of one to ten, how excited are you for today's episode?
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Speaker 1: Probably like an eight point three j King. I reckon
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Speaker 1: it's not a nine or a ten on the NPS
1:57
Speaker 1: or the Net Promoter Score scale, because I don't want
1:59
Speaker 1: people think I'm too excited. It's pretty up. You're being modest. Well,
2:04
Speaker 1: I'm about a two. Oh wow, gee, you're so invested
2:08
Speaker 1: in our community, their education and just being along for
2:12
Speaker 1: the rug. Energy is a ten, and my inquisitive nature
2:15
Speaker 1: is a ten. But I am a little nervous.
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Speaker 3: Because we are talking about the one topic that I
2:20
Speaker 3: know very little about because I'm an ignorant little mole,
2:25
Speaker 3: which is.
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Speaker 1: So throwing yourself further onto the bar just too much.
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Speaker 3: But I guess in terms of the structure of today's episode,
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Speaker 3: it makes sense to go from five to one.
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Speaker 1: And obviously we're just ramping up the excitement and you
2:40
Speaker 1: guys are going to go, wow, can't believe it. The
2:42
Speaker 1: countdown is on. It's going to be like New Years
2:44
Speaker 1: but better. Like you know how people like do the
2:47
Speaker 1: big countdown. It's like it's like that, but like terrible.
2:51
Speaker 1: Exactly right. So with that said, Fee, let's get straight
2:56
Speaker 1: into it. I reckon we get straight into it as well.
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Speaker 1: And I think it's absolutely no surprise to you guys
3:01
Speaker 1: that I have finally convinced the whole of the Sheese
3:04
Speaker 1: on the Money team to let me do more investing
3:06
Speaker 1: content talk about shares, because it makes sense for us
3:10
Speaker 1: to take that next step in our financial literacy and
3:13
Speaker 1: make that part of our daily language. And you know
3:16
Speaker 1: exactly what we're talking about. But the past year or
3:19
Speaker 1: the entirety of twenty twenty one didn't turn out how
3:22
Speaker 1: we all thought it would. Gee. I believe we called
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Speaker 1: twenty twenty that what was it the garbage fire, called
3:29
Speaker 1: it the garbage fire, and we thought it was done.
3:30
Speaker 1: It was not done. We had to smit back down. Yeh,
3:34
Speaker 1: take a big slice of humble Pire because we weren't done,
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Speaker 1: and it definitely wasn't without its challenges, and overall it
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Speaker 1: did turn out to be a better year for investors
3:43
Speaker 1: than twenty twenty did. But the same way that twenty
3:46
Speaker 1: twenty was dominated by Covid impacting the share market, that
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Speaker 1: happened again in twenty twenty one. And I think there
3:52
Speaker 1: was a lot more conversation in twenty twenty one about
3:55
Speaker 1: the rising prices of inflation. We're talking about that a
3:58
Speaker 1: lot in our community, and you know, the tightening of
4:01
Speaker 1: our I guess bootstraps, you could say, when it came
4:03
Speaker 1: to assets, because we were like, how long is this
4:06
Speaker 1: actually going to go for? I think a lot of
4:08
Speaker 1: people would have felt, okay, well, twenty twenty's over, twenty
4:11
Speaker 1: twenty one is here now, and I'm going to be okay,
4:13
Speaker 1: And it's kind of like, oh, actually, a lot of
4:15
Speaker 1: us are now realizing that work from home is actually
4:17
Speaker 1: going to be the reality, and that the world is
4:20
Speaker 1: changing and has changed for not just the better, but
4:25
Speaker 1: pretty significantly, and it's not going to be changing back.
4:29
Speaker 1: And I think a lot of us, myself included, just
4:31
Speaker 1: assumed that things might step back into what our old
4:34
Speaker 1: reality was and that's just g now, not what's going
4:37
Speaker 1: to happen. A lot happened in the share market, and
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Speaker 1: today we're actually going to talk about only the top
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Speaker 1: five performing shares from the Australian ASX Top two hundred.
4:48
Speaker 1: And the reason I have chosen the ASX Top two hundred,
4:51
Speaker 1: because obviously that top two hundred doesn't encompass international shares,
4:55
Speaker 1: is to make things cleaner and clear and give us
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Speaker 1: the ability to talk about brand names that we've not
5:01
Speaker 1: just heard but are on our own soil and on
5:04
Speaker 1: our own turf. Like it's so fun to talk about Tesla,
5:07
Speaker 1: it's so fun to talk about Apple. But those things
5:10
Speaker 1: to me feel a little bit distant and therefore we're
5:13
Speaker 1: not as involved. So we could talk about how well
5:15
Speaker 1: Tesla did. Yeah, does that impact your I directly because
5:19
Speaker 1: it's not actually our share market unless you actually invested
5:21
Speaker 1: in it directly. Not really. But what I want to
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Speaker 1: talk about today at the top five performing shares here
5:27
Speaker 1: in Australia that are sitting on the ASEX Top two
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Speaker 1: hundred and G. I know you cannot wait to get
5:34
Speaker 1: into it. I am stoked, but before we do, we
5:37
Speaker 1: probably should talk about the ASEX Top two hundred performance
5:40
Speaker 1: across the board, right, So the ASX two hundred encompasses
5:44
Speaker 1: two hundred of Australia's biggest companies, So the biggest companies
5:48
Speaker 1: in Australia all make this list, and sometimes it changes out,
5:51
Speaker 1: some drop off, some come back on, but it's pretty consistent.
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Speaker 1: And at the start of twenty twenty one, in January,
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Speaker 1: the AX start at six thousand, six hundred and eighty
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Speaker 1: four dollars and twenty five cents, so that's what it
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Speaker 1: was worth in general if you held all of them,
6:07
Speaker 1: and then there was obviously some volatility and the very
6:10
Speaker 1: first half of the year. It then in August, specifically
6:13
Speaker 1: on the thirteenth of August, it hit a high for
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Speaker 1: twenty twenty one and it came in to be valued
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Speaker 1: at seven six hundred and twenty eight dollars and ninety
6:21
Speaker 1: two cents g king on tour, which is pretty exciting
6:24
Speaker 1: because that's obviously a fairly nice increase, But then it
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Speaker 1: did decrease, so don't be too excited. That doesn't mean
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Speaker 1: you should go out and invest in the ASEX Top
6:34
Speaker 1: two hundred because on Friday the seventeenth of December, the
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Speaker 1: ASEX closed at seven thousand, three hundred and three dollars
6:41
Speaker 1: and ninety seven cents, which is obviously a fair bit
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Speaker 1: higher than it was in January, which is very exciting.
6:47
Speaker 1: So overall it has increased, but it wasn't the highest
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Speaker 1: it had been that year for a multitude of different reasons.
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Speaker 3: Okay, I was just thinking, like, this will be a
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Speaker 3: really interesting episode. I think people who were like really
7:01
Speaker 3: across investing in shares and they'll be like, I recognize
7:05
Speaker 3: that terminology, I know what's happening. I understand why that
7:08
Speaker 3: share performed so well. Yeah, and then there'll be people
7:11
Speaker 3: like my good self who will come to learn why
7:15
Speaker 3: certain shares do perform well and how they kind of
7:17
Speaker 3: function and the mechanics behind all of that. So really,
7:20
Speaker 3: everybody wins. It's going to be a great episode.
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Speaker 1: Exactly everybody wins. And I think the important thing here
7:26
Speaker 1: to note is that when I talk about the ASEX
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Speaker 1: top two hundred, I'm essentially grouping all of those shares
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Speaker 1: together into one bucket, dividing their average returns. So it
7:36
Speaker 1: means if you were an individual investor, like you would
7:39
Speaker 1: be had you bought these individual shares that we're talking
7:41
Speaker 1: about today, there is absolutely no guarantee that you would
7:45
Speaker 1: have a positive return, right Like, if you were just
7:47
Speaker 1: picking the top ten or the top five shares that
7:50
Speaker 1: you wanted to invest in across twenty twenty one, that
7:52
Speaker 1: doesn't mean you would have seen a positive return. Because
7:55
Speaker 1: some shares on the ASEX two hundred, they actually had
7:57
Speaker 1: negative returns. Some had really really big returns, and we're
8:01
Speaker 1: going to talk about them today, But it would be
8:04
Speaker 1: an interesting episode just to like talk more about the
8:06
Speaker 1: investing episodes I can do in the future. Bottom performing shares. Yeah,
8:11
Speaker 1: who dropped the most g king? Yeah? Right now? When where?
8:16
Speaker 2: So?
8:17
Speaker 1: I just wanted to preface that. I mean, if you're
8:19
Speaker 1: not an individual share investor, which at the end of
8:22
Speaker 1: the day, I would not call myself an individual share investor,
8:26
Speaker 1: most of my wealth that sounds so wanky, it's not
8:29
Speaker 1: even that much money in the grand scheme of things,
8:31
Speaker 1: but most of my money that I have invested is
8:34
Speaker 1: actually split across to ETSG, which you would probably be
8:38
Speaker 1: surprised about because I don't ever want to invest in
8:41
Speaker 1: a direct share portfolio because I genuinely don't believe that
8:44
Speaker 1: I am nearly as smart as the fund managers that
8:47
Speaker 1: are picking stocks in ETF. Yeah, so I'm kind of like,
8:49
Speaker 1: all right, well that works for me, But G probably
8:53
Speaker 1: side eyeing me at the moment, because I do have
8:55
Speaker 1: a little bit of fun on the side when it
8:58
Speaker 1: comes to investments, Like if I see share that I'm
9:00
Speaker 1: really excited about want to invest in, I definitely do
9:03
Speaker 1: do that. I actually have and some of you might
9:06
Speaker 1: know this already. Do I have an investing book coming
9:09
Speaker 1: out in September, Yeah, which is very exciting. But this
9:13
Speaker 1: strategy that I adopted is actually called a core satellite approach,
9:18
Speaker 1: where I have a core investment portfolio that I believe
9:23
Speaker 1: is like the core of my wealth creation. And for me,
9:26
Speaker 1: those are like the slow, steady steeds that are going
9:29
Speaker 1: to drive me forward consistently to create wealth. And then
9:33
Speaker 1: when we talk about satellite, it's literally like a satellite
9:36
Speaker 1: flying around the moon. And those are little investments that
9:39
Speaker 1: I make to keep myself as an investor and as
9:42
Speaker 1: a financial advisor nourished and engaged, right because I don't
9:46
Speaker 1: want to go and bet all of my money on
9:48
Speaker 1: a share that I'm like, oh, this is probably going
9:50
Speaker 1: to do really well, and I want to have a
9:51
Speaker 1: bit of a play with these because I'm excited about it,
9:53
Speaker 1: but I'm not willing to bet my future wealth on that.
9:56
Speaker 1: So I do invest in individual shares, but I also
9:59
Speaker 1: invest in a very well diversified portfolio of ETFs. So
10:03
Speaker 1: I feel like people, that's a bit pervy, isn't it.
10:05
Speaker 3: That's very pervy and perhaps surprising to some listeners. Also
10:09
Speaker 3: very much so to say that you're not as smart
10:12
Speaker 3: as the managers of the funds, et cetera.
10:14
Speaker 1: Oh, I mean when it comes to picking shares, I'm
10:17
Speaker 1: obviously smarter than them different ways and spaces. So don't
10:21
Speaker 1: don't get to ahead of me.
10:23
Speaker 3: The other thing we should say here, V is that,
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Speaker 3: in reflecting on these top five shares from the ASX
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Speaker 3: two hundred, we're not saying that you should run out
10:31
Speaker 3: and buy shares in these today.
10:33
Speaker 1: Oh my god, please don't. The volatility of the shares
10:37
Speaker 1: we are talking about today very volatile, got George. So,
10:41
Speaker 1: volatility in the share market means the ups and downs
10:44
Speaker 1: of the market. It is the ebbs and the flows,
10:46
Speaker 1: and the share market is far more volatile than like
10:50
Speaker 1: a cash investment. So SAG, you've got some money sitting
10:53
Speaker 1: in a savings account, which I know you do, but
10:56
Speaker 1: what that is worth is not going to change whether
10:58
Speaker 1: it is today or it is next. Because it's a
11:00
Speaker 1: savings account. You might get some sweet, sweet returns on
11:03
Speaker 1: your bank account, but I guarantee they're not that high
11:05
Speaker 1: because it's twenty twenty two and they're through the floor.
11:07
Speaker 1: So it's not going to change that much. But when
11:09
Speaker 1: it comes to the share market, and as you will see,
11:13
Speaker 1: volatility can be really high, but that doesn't mean it's
11:16
Speaker 1: more risky. But when it comes to individual shares, that
11:18
Speaker 1: does increase your risk significantly more than picking something like
11:21
Speaker 1: an ETF. We are absolutely not endorsing these. We are
11:25
Speaker 1: not saying by these, We are not even saying consider them.
11:28
Speaker 1: We are saying, how interesting is it that these types
11:31
Speaker 1: of things happen? And this is essentially a piece of
11:33
Speaker 1: content for you guys to learn more about how the
11:36
Speaker 1: share market works. Absolutely not to be taken as advice.
11:39
Speaker 1: Good pick up their g Thank you so much, all right, V.
11:43
Speaker 3: With that said, let's rip into number five. That is
11:46
Speaker 3: the share that came in at number five on the
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Speaker 3: ASX two hundred last year. It is Unity Group Limited.
11:53
Speaker 1: Yeah, who are they?
11:56
Speaker 3: All right?
11:57
Speaker 1: G Unity Group Limited. They're asx code is UWL for
12:02
Speaker 1: anybody who wants to look them up. They're like a
12:06
Speaker 1: core technology infrastructure constructor, owner and operator of predominantly fiber
12:11
Speaker 1: cable networks so gking like the Internet basically, and associated
12:16
Speaker 1: technology that aims to provide diversified telecommunication products and services.
12:21
Speaker 1: So that sounds really sexy, but I guess to distill
12:24
Speaker 1: it down, they're essentially a telecommunications company that most of
12:28
Speaker 1: us haven't heard about. So according to their Bloomberg profile
12:32
Speaker 1: because I looked them up on there, they were established
12:35
Speaker 1: relatively recently G And when I say relatively recently, I
12:38
Speaker 1: mean ten years ago. They were established in twenty twelve,
12:41
Speaker 1: so they've become a pretty big business pretty quickly. But
12:44
Speaker 1: they're pretty, from my perspective, pretty interesting, and I suppose
12:48
Speaker 1: G in twenty twenty two, it shouldn't come as a
12:51
Speaker 1: surprise to us that a telecommunications company thrived during the
12:54
Speaker 1: peak of COVID. Okay, I mean that kind of makes sense, right, Like,
12:59
Speaker 1: there's been a lot of research about them. I've seen
13:02
Speaker 1: it a couple of times on stocks we should watch lists.
13:05
Speaker 1: Last year they had some really good results that were
13:09
Speaker 1: published about six months ago. Like they put out their
13:12
Speaker 1: financial results, which I think was a very big main
13:15
Speaker 1: driver of their performance. And you know, they had excellent
13:18
Speaker 1: results which were really interesting because they made a lot
13:21
Speaker 1: of acquisitions or they bought a lot of other companies
13:24
Speaker 1: over the last twenty four months, so that was a
13:26
Speaker 1: really interesting thing to happen. But the thing that I'm
13:30
Speaker 1: most interested in is not just like, what does this
13:32
Speaker 1: company do and why are they on this list? Obviously
13:36
Speaker 1: they're on this list because they were one of Australia's
13:38
Speaker 1: top two hundred companies. Kind of cool, but gee, they're
13:41
Speaker 1: on this list because at the start of the trading year,
13:44
Speaker 1: which is the fourth of January by the way, in
13:47
Speaker 1: twenty twenty one, their stock price was worth a dollar
13:50
Speaker 1: and seventy one cents. Pretty good, but a little bit
13:53
Speaker 1: higher than a lot of companies in the ASX Top
13:55
Speaker 1: two hundred. But they're closing price at the end of
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Speaker 1: twenty twenty one, which was the seventeenth of December twenty
14:02
Speaker 1: twenty one, g their share price was four dollars and
14:05
Speaker 1: sixty four cents, which means their percentage change was one
14:08
Speaker 1: hundred and seventy one point three percent. N What, Okay,
14:12
Speaker 1: how good's that that? Means if you and have done
14:14
Speaker 1: them at year, if you invested one thousand dollars in
14:17
Speaker 1: those shares at the start of twenty twenty one, you'd
14:20
Speaker 1: have twenty seven hundred and thirteen dollars in your account.
14:22
Speaker 1: Now very numbers, very pretty good size.
14:25
Speaker 3: I reckon cheers Unity Group Limited. Okay, so you're saying
14:30
Speaker 3: that is largely.
14:31
Speaker 1: Because of the impacts of the penny D, the pandemic,
14:34
Speaker 1: I should say the penny D. You're making it around
14:37
Speaker 1: a lot more colloquial than it actually a lot more
14:39
Speaker 1: fun than it was. So why exactly is that just
14:42
Speaker 1: because we were all spending more time online. Look, it's
14:44
Speaker 1: not just because we were spending more time online. It
14:47
Speaker 1: was absolutely interesting to see that that happened. But they
14:51
Speaker 1: actually made a lot of acquisition, So they bought a
14:54
Speaker 1: lot of smaller companies during twenty twenty one, and that
14:58
Speaker 1: means that they obviously grew an and with really good
15:01
Speaker 1: financial reports, which as I said, about six months ago,
15:04
Speaker 1: even further back, they were reporting really good financials. And
15:08
Speaker 1: when a company goes through an acquisition period. So an
15:11
Speaker 1: acquisition period is a period of time when companies like
15:15
Speaker 1: you know, what, we want to grow but organic growth
15:18
Speaker 1: isn't fast enough for us. G Like, you know, growing
15:21
Speaker 1: and you know posting on Instagram and stuff isn't going
15:24
Speaker 1: to cut the mustard. We want to go and take
15:27
Speaker 1: over other businesses, take their clients and fold them into ours,
15:30
Speaker 1: and that can turbocharge the growth of a company. But
15:34
Speaker 1: that can do one of two things. From my honest
15:37
Speaker 1: and humble opinion, that can do what it did for
15:39
Speaker 1: Unity Group, which was turbocharged their financials and it all
15:43
Speaker 1: worked out probably exactly how they wanted it to, if
15:45
Speaker 1: not exceeded their expectations. But sometimes George that acquisition and
15:50
Speaker 1: therefore the merger. So the merger is whether two companies
15:53
Speaker 1: come together, can sometimes be quite tumultuous. So investors are
15:58
Speaker 1: often a little bit apprehensive of getting involved in a
16:01
Speaker 1: company that's going through in m and A or emerger
16:03
Speaker 1: an acquisition period because they're like, either this could go
16:06
Speaker 1: really really well or it could go really really badly.
16:10
Speaker 1: Like can you imagine two companies coming together, having two CEOs,
16:14
Speaker 1: two CFOs, two marketing departments, two HR departments, and having
16:19
Speaker 1: a business come together and go, hey, gee, we both
16:21
Speaker 1: are in HR, but we now only need one HR department,
16:25
Speaker 1: Like as a business and as the way that business functions.
16:28
Speaker 1: Sometimes it can kind of crumble from within because the
16:31
Speaker 1: business isn't functioning as it should. But then on the
16:34
Speaker 1: outward side of things, sometimes a business is acquired and
16:38
Speaker 1: they don't realize how much they need to change the
16:41
Speaker 1: processes or update the way things are working, or the
16:44
Speaker 1: cost involved to change old processes into the new processes
16:49
Speaker 1: that the company wants them to work on. So sometimes
16:52
Speaker 1: when that happens, like share prices go down because it
16:54
Speaker 1: didn't go so well. But in this situation, their acquisitions
16:58
Speaker 1: really shone through the financial reports, and I think that
17:01
Speaker 1: a lot of investors saw that and were really happy
17:05
Speaker 1: with that. But also I saw a couple of times,
17:08
Speaker 1: and this would have been in early twenty twenty one.
17:10
Speaker 1: I feel like I'm getting two into this, so we'll
17:13
Speaker 1: move on in just a hot second. But I did
17:15
Speaker 1: see them at the start of twenty twenty one named
17:18
Speaker 1: as a stock that was currently being undervalued. When you
17:21
Speaker 1: are somebody who researches stocks and looks into them consistently,
17:26
Speaker 1: and you know is on a lot of email lists
17:29
Speaker 1: of different investment companies like I am, that kind of
17:33
Speaker 1: shone through as are like oh, why are they undervalued?
17:36
Speaker 1: Is that something I should be looking at to include
17:38
Speaker 1: in portfolios, And I have no doubt that a lot
17:41
Speaker 1: of people be looking at that going yeah, actually they
17:43
Speaker 1: are undervalued. Let's get on that ship. And the thing
17:46
Speaker 1: that does really drive stock price is obviously you know,
17:49
Speaker 1: performance and key metrics, but also supply and demand. And
17:53
Speaker 1: so therefore demand could have increased because a lot of
17:56
Speaker 1: people are saying a lot of good things about them,
17:58
Speaker 1: They're doing a lot of great things, their financials are
18:01
Speaker 1: starting to look really sexyg and therefore demand has really
18:05
Speaker 1: pushed up their share price. It's super exciting, but also
18:09
Speaker 1: probably worth mentioning that their stock price has are dropped
18:12
Speaker 1: by about ten percent in the air last few months.
18:16
Speaker 1: So we'll just sweep that off because we're not talking
18:19
Speaker 1: about twenty twenty one. I can let's talk about that
18:21
Speaker 1: next year. And as you said, Gking, these are not recommendations,
18:24
Speaker 1: but that is a reflection of the volatility of the market.
18:27
Speaker 1: So had you sold your shares on the seventeenth of December,
18:29
Speaker 1: you would have been up, but you wouldn't be up
18:31
Speaker 1: as much if you were still holding them today. Man,
18:34
Speaker 1: how do you know, though, how do you know when
18:36
Speaker 1: to sell, you don't, You don't. There's no such time
18:40
Speaker 1: as when to sell. There's a time when you go,
18:42
Speaker 1: should I take some money off the table because it's
18:45
Speaker 1: too risky to leave it on the table in that
18:48
Speaker 1: share and I would like to take it off and
18:50
Speaker 1: put it in a more solid and consistent asset. But
18:54
Speaker 1: then there's also good financial planning, and you go, all right, well,
18:57
Speaker 1: at this age, I want to start selling down my portfolio,
19:01
Speaker 1: or I want to start taking my portfolio and transforming
19:04
Speaker 1: it into more stable assets. So the closer you get
19:08
Speaker 1: to retirement, and I could go on and on and
19:09
Speaker 1: on about this g but the closer you get to retirement,
19:13
Speaker 1: the more stable your assets are likely to be, because
19:16
Speaker 1: you just don't have the time that a lot of
19:19
Speaker 1: us have for the volatility of the market to go
19:22
Speaker 1: up and down. And they say, when I say they,
19:25
Speaker 1: I mean the good investment companies of the world say
19:28
Speaker 1: that over your lifetime you will go through seven different
19:32
Speaker 1: market crashes. So, as you know right now, the market
19:37
Speaker 1: has crash. So a ticking one off. Yeah, it went
19:39
Speaker 1: down three percent a couple of weeks ago because of
19:42
Speaker 1: you know, the stuff going on in Ukraine and it
19:44
Speaker 1: has gone down even further since then, and it's super interesting.
19:48
Speaker 1: But you know, we've been through the GFC, we've seen that,
19:51
Speaker 1: we've seen the COVID crash, we've seen that. Now we're
19:53
Speaker 1: seeing the Ukraine and Russia war crash. And it's not
19:56
Speaker 1: necessarily going to be a crash because I don't think
19:59
Speaker 1: it's going to impact the share market nearly as significantly
20:01
Speaker 1: as something like COVID, But we will see. We don't
20:05
Speaker 1: know what the future looks like, but the one thing
20:08
Speaker 1: that we do know is that cycles are consistent, and
20:11
Speaker 1: there will be highs and there will be lows, and
20:13
Speaker 1: we need to take money off the table when we
20:15
Speaker 1: don't have any more time to see another low. Okay,
20:20
Speaker 1: So no way of predicting it, no way of predicting it.
20:22
Speaker 1: I'm sorry. I've said before, guys, I'd be so rich
20:26
Speaker 1: if I could predict the market. And guys, I'm trying.
20:28
Speaker 1: I'm real trying.
20:29
Speaker 3: Yeah, thanks girl. All right, well let's move on to
20:32
Speaker 3: number four if you're ready, you're happy with that, yeah, okay,
20:36
Speaker 3: So number five absolutely is Pilbara Minerals Limited.
20:41
Speaker 1: Yep. So they are an Australian mining company. They call
20:45
Speaker 1: themselves emerging. That sounds a little bit sexier than just
20:49
Speaker 1: we're a mining company. Sure, I don't know. Emerging mining
20:52
Speaker 1: company sounds a little bit more ethical, but it doesn't
20:54
Speaker 1: change anything. But essentially they mine lithium and tan to light.
21:00
Speaker 1: I have no idea what tantalite is. And when I
21:01
Speaker 1: say I have no idea, I mean I had no
21:03
Speaker 1: idea until I googled it, okay, and g tantalite. And
21:07
Speaker 1: I didn't know a lot about what tantalit was before
21:11
Speaker 1: I googled it, except for it is something that is
21:13
Speaker 1: mined pretty regularly in Australia. But essentially it's used in
21:17
Speaker 1: alloys for strength, and it actually has higher melting points
21:20
Speaker 1: than like glass, so it's used in glass to increase
21:23
Speaker 1: the index of refraction, and it's also used to give
21:27
Speaker 1: more strength to things like surgical steel. So it's essentially
21:30
Speaker 1: like an important aree of the industrial useful metal category.
21:34
Speaker 1: If that makes sense. Yeah, okay, I hope that makes sense.
21:38
Speaker 1: But if we want to go a little bit hippie,
21:40
Speaker 1: if you had some tantalite that's actually a stone that
21:42
Speaker 1: would help is away thoughts that contain poor or wrongful judgment,
21:46
Speaker 1: as well as thoughts that contain different types of negativity.
21:49
Speaker 1: So like, maybe it's a good stone to have. I
21:51
Speaker 1: mean it could be.
21:52
Speaker 3: I wouldn't really be heading down that that line of things.
21:55
Speaker 3: But hey, maybe that's why they went up so much
21:58
Speaker 3: because people were really holding on to their crystals last year.
22:02
Speaker 3: Do I sound judgmental?
22:03
Speaker 1: Yeah, because you know I loved crystals. That's so rude
22:07
Speaker 1: As someone who consistently is this too much information for
22:10
Speaker 1: an investing podcast? I consistently carry a rose quartz with
22:14
Speaker 1: me and it's usually guys, watch out for it. It's
22:17
Speaker 1: usually in my bra.
22:18
Speaker 3: Really, Actually, no, I think I did know this about you.
22:21
Speaker 3: I've forgotten, but now I've remembered.
22:23
Speaker 1: It's a weird fact about Victoria divine, but she carries
22:27
Speaker 1: a rose quartz because it's not I don't know it's
22:30
Speaker 1: not because I'm like, oh, it's a healing stone and whatever.
22:34
Speaker 1: Like I know it's the universal stone of love. But
22:36
Speaker 1: as someone who has gone through significant periods of doubt
22:40
Speaker 1: when it comes to self love, it was a very
22:43
Speaker 1: big part of my therapy a long time ago, and like,
22:46
Speaker 1: by putting that in my bra consciously consistently and having
22:49
Speaker 1: it close to my heart, it like kind of reminds
22:52
Speaker 1: me that self love and love in general is like
22:54
Speaker 1: the most important thing, and it's really important to me,
22:56
Speaker 1: So it kind of reminds me of that consistently. You
22:59
Speaker 1: know how some people wear rings or really beautiful bracelets
23:02
Speaker 1: or like have physical reminders of things. You might get
23:05
Speaker 1: a tattoo, Like to me, that's something that I keep
23:08
Speaker 1: close to me because it's a physical reminder that self
23:11
Speaker 1: love is incredibly important and you can't pour from an
23:13
Speaker 1: empty cup, really soft, really Moushy, would you like to
23:16
Speaker 1: talk a little bit more about Pilbroro though.
23:19
Speaker 3: Let's talk more about pill Borough. Yes, So why did
23:23
Speaker 3: they perform so well if it doesn't have anything to
23:25
Speaker 3: do with crystals.
23:26
Speaker 1: So, g you're right, it didn't have anything to do
23:30
Speaker 1: with crystals, which is nice to know but really disappointing.
23:32
Speaker 1: But imagine if crystals were the reason that, like they surged,
23:36
Speaker 1: like we all just wanted some rose quarts to put
23:38
Speaker 1: in our bras. Yeah, no, big but ye. But pilbor Minerals,
23:43
Speaker 1: as you said, they did pretty well. They are number
23:45
Speaker 1: four on our list. They surged by two hundred and
23:49
Speaker 1: sixteen point one percent in twenty twenty one. G so
23:53
Speaker 1: their opening share price on the fourth of January was
23:56
Speaker 1: eighty seven cents, and it increased to two dollars and
24:00
Speaker 1: seventy five cents, meaning if you'd invested a grand you
24:03
Speaker 1: would now have three one hundred and sixty one dollars
24:07
Speaker 1: in your account. That's pretty exciting. That's pretty good. That's good. Well,
24:13
Speaker 1: it's the fourth best. But if we want to talk
24:16
Speaker 1: about why and when and where and how, there was
24:19
Speaker 1: actually a pretty big scramble when it came to buying
24:22
Speaker 1: Pilborough shares last year, and the reason for that was
24:25
Speaker 1: there was just this ever increasingly bullish outlook on lithium.
24:29
Speaker 1: So when I say ever increasing bullish like, that's such
24:33
Speaker 1: investor speak, But what I'm saying is there was an
24:36
Speaker 1: ever increasing very positive outlook for lithium, like people were
24:41
Speaker 1: saying that lithium shares were going to go nuts. And
24:45
Speaker 1: this then obviously led to many different types of lithium
24:48
Speaker 1: shares generating outsized returns for investors over the last twelve months.
24:52
Speaker 1: So demand for lithium as well has also been increasing
24:56
Speaker 1: for a number of reasons. One it's mined in Australia,
24:59
Speaker 1: which is really not but one of the biggest reasons
25:02
Speaker 1: lithium is really important is because of the rise of
25:05
Speaker 1: popularity of electric vehicles G and this whole theme around decarbonization, right,
25:12
Speaker 1: So the demand is actually so strong that has been
25:15
Speaker 1: tipped to material outstrip supply over the next couple of years.
25:19
Speaker 1: So these share price is increasing, but we are potentially
25:23
Speaker 1: as a country going to run out of the supply
25:25
Speaker 1: of lithium, So like, how's that going to impact share prices?
25:29
Speaker 1: G How is it going to impact them? Well, for
25:32
Speaker 1: a number of reasons, and to be honest, we can't
25:35
Speaker 1: predict it. But it's just really interesting lithium as well.
25:38
Speaker 1: You might have heard of lithium batteries before, not a
25:41
Speaker 1: new concept, but lithium batteries are obviously increasing in popularity,
25:46
Speaker 1: one because people are preparing for things like COVID and
25:48
Speaker 1: shortages of things. But Pilborough Minerals actually has a battery
25:52
Speaker 1: material exchange auction and that's where they started auctioning off
25:56
Speaker 1: different metric tons of this product to different buyers. And
26:01
Speaker 1: I guess this shocked the market because it was obviously
26:03
Speaker 1: notably higher in price than it had actually been at
26:07
Speaker 1: the time, and since then the company has increased the
26:10
Speaker 1: price again and again, which is kind of interesting. But
26:14
Speaker 1: unlike number five, which we were talking about before g
26:16
Speaker 1: and how they crashed, we shouldn't be talking about twenty
26:19
Speaker 1: twenty two because I meant to be reporting on twenty
26:21
Speaker 1: twenty one. But I found this really interesting. On the
26:23
Speaker 1: first day of market trade in twenty twenty two, Pilbur
26:27
Speaker 1: and Minerals share price actually meteorically rose and jumped another
26:32
Speaker 1: ten percent to be a share price of three dollars
26:34
Speaker 1: and fifty two cents. Really like what it's increasing significantly,
26:39
Speaker 1: and so I guess it's not about whether you should invest.
26:42
Speaker 1: It's just an interesting, I guess thought pattern around what's
26:46
Speaker 1: going on, because I would hold a little bit of
26:48
Speaker 1: apprehension when it comes to investing in something like lithium
26:51
Speaker 1: when the market has said we're going to run out
26:53
Speaker 1: of that as well, like how long is that going
26:55
Speaker 1: to go for? But then I'm also I'm a little
26:58
Speaker 1: bit hippie. I just told you I had crystal in
27:00
Speaker 1: my bra I don't actually want to invest in a
27:03
Speaker 1: mining company, and in my portfolio, I don't have any
27:05
Speaker 1: mining companies because it's not aligned to my values. So
27:08
Speaker 1: regardless of what their performance are, I'm still not that
27:11
Speaker 1: attracted to the company. Does that make sense? Like performanceing
27:15
Speaker 1: and everything, like, it doesn't matter how big your returns our.
27:18
Speaker 3: G it's not what counts. Before we had to break V.
27:22
Speaker 3: I'm going to make myself really vulnerable and ask you
27:26
Speaker 3: a dumb question.
27:28
Speaker 1: No such thing, GQ. This one could be mining. Yes,
27:33
Speaker 1: we know coal mining hugely problematic, very bad for the environment.
27:39
Speaker 1: Are there forms of.
27:40
Speaker 3: Mining that aren't problematic or is it pretty much all
27:43
Speaker 3: Just let's steer clear from an ethical perspective, not for me, Like,
27:48
Speaker 3: what's your take on that.
27:50
Speaker 1: I just feel like there's this gold rush for people
27:53
Speaker 1: who are doing quote green lithium right at the end
27:58
Speaker 1: of the day mining in a stroke. You know, I'm
28:01
Speaker 1: going to get thrown under the bus for this, but
28:03
Speaker 1: it's still a dirty business from my perspective, Like mining
28:06
Speaker 1: for lithium like every other metal, is a dirty business
28:10
Speaker 1: because of the way it has been established, and it's
28:12
Speaker 1: very hard to change an entire mining company like you
28:15
Speaker 1: would probably be aware that entire communities around Australia are
28:20
Speaker 1: set up to support the mining industry and vice versa,
28:24
Speaker 1: so changing that is incredibly detrimental. Like as much as
28:28
Speaker 1: I go do you know what, I'm not going to
28:29
Speaker 1: put my money there. I don't support it. It doesn't
28:32
Speaker 1: mean I don't support the mining communities and what it
28:35
Speaker 1: does for the Australian economy. Like it's a very hard
28:38
Speaker 1: conversation to be had. But no, it doesn't necessarily mean
28:42
Speaker 1: that they are doing it ethically. But it is interesting
28:45
Speaker 1: to see companies like Pillburrow who are coming out and
28:48
Speaker 1: saying okay, cool, like lithium goes into things like batteries
28:51
Speaker 1: for electric cars and wind turbines and you know, electric
28:55
Speaker 1: smart grids and all of those things help lower global
28:58
Speaker 1: CO two emissions, which is good. So they're really trying
29:01
Speaker 1: to work for the better. But it doesn't necessarily mean
29:04
Speaker 1: that mining is quote good. But I think when they're
29:07
Speaker 1: starting to shift the narrative of what they're putting their
29:10
Speaker 1: product into and the purpose of their business and their
29:13
Speaker 1: drives and their ethics, I think that things are changing.
29:16
Speaker 1: But it's going to be a long slog because you
29:19
Speaker 1: can't just pick up a mine and change it into
29:21
Speaker 1: being a green, ethical business. And at the end of
29:24
Speaker 1: the day, we still have cars on the road. We
29:25
Speaker 1: still need, you know, sources of energy that aren't renewable.
29:29
Speaker 1: But I think that we're making good steps in the
29:31
Speaker 1: right direction, and from my perspective, boycotting companies that are
29:34
Speaker 1: mining is not going to help us, because they're the
29:36
Speaker 1: companies that are starting to set new standards for what
29:39
Speaker 1: is acceptable in this space and are really listening to
29:43
Speaker 1: consumers and changing that. And I mean, I'm not the
29:45
Speaker 1: biggest fan of BHP, but they're doing a lot in
29:47
Speaker 1: that space to work out how they can be sustainable
29:50
Speaker 1: and how they can impact the world in a very
29:53
Speaker 1: good way. Doesn't mean what they do at a base
29:56
Speaker 1: level of something I totally agree with. But I think
29:59
Speaker 1: what I really appreciate this. Okay, we hear this is it.
30:02
Speaker 1: It doesn't mean we shouldn't support the companies if they're
30:05
Speaker 1: growing and changing and you know, really trying to impact
30:09
Speaker 1: the world in a good way while not trying to
30:11
Speaker 1: just like cut you know, this resource from underneath other
30:14
Speaker 1: people's feet. Interesting food for thought. Let's go to a break, gah,
30:18
Speaker 1: let's do a little break for sure, all right, VD,
30:21
Speaker 1: we are back to reveal number three on our list.
30:25
Speaker 1: It is, of course Emugen limited Immogen Is that how
30:30
Speaker 1: we're saying, perhaps it is spelt I am U G
30:34
Speaker 1: E N E.
30:35
Speaker 3: I'm going to go out on a whim here and say,
30:38
Speaker 3: perhaps it has something to do with genetics, with some genes.
30:43
Speaker 1: And they've nailed it and they've gone up rgin. Yeah,
30:46
Speaker 1: I like that. If you've got any other guesses.
30:49
Speaker 3: Maybe something about imaging or imagining. Perhaps it's a creative No,
30:54
Speaker 3: you're right, writer, I'm right.
30:56
Speaker 1: I mean not genetics, but immunotherapy. Okay, so like along
31:01
Speaker 1: the right I guess you're along the right way the
31:04
Speaker 1: imugen how did you say it before, like emugen something emugen.
31:09
Speaker 1: I think they might call themselves in immugen like imagen
31:12
Speaker 1: just because yeah, like imagen, only because they do immunotherapy.
31:17
Speaker 1: Like I think that that's where they've probably got their name. Okay,
31:20
Speaker 1: like eugene is I don't know, Like this isn't the
31:23
Speaker 1: purpose of the podcast, but now I'm really interested. Do
31:25
Speaker 1: you know why they call themselves that? But they're a
31:28
Speaker 1: clinical stage immuno oncology company that is developing a range
31:32
Speaker 1: of new treatments that seek to activate the immune system
31:35
Speaker 1: for cancer patients. That's pretty cool. Yeah, so probably not
31:40
Speaker 1: something for me to be making jokes about. No, look,
31:42
Speaker 1: not jokes, but it's Okay, but this sounds very interesting
31:45
Speaker 1: and very helpful. It is very interesting and very helpful.
31:49
Speaker 1: So gee, the reason they are performing so well in
31:51
Speaker 1: the market is because of one, they're doing some really
31:53
Speaker 1: cool work that looks like it's going to be very successful,
31:57
Speaker 1: which is very very exciting for that space. But also
32:00
Speaker 1: in twenty twenty one, they did a whole heap of
32:04
Speaker 1: immuno oncology research activities that were undertaken in the financial
32:08
Speaker 1: year ending June thirty, twenty twenty one, so it happened
32:12
Speaker 1: in twenty twenty two, but they reported on that research
32:15
Speaker 1: at the end of June twenty twenty one, and that
32:18
Speaker 1: research actually landed them a grant to get a pretty
32:22
Speaker 1: big tax refund, and they got a six point five
32:26
Speaker 1: million dollar cash boost which aimed to support commercial and
32:29
Speaker 1: clinical milestones. So that means that they are taking things
32:33
Speaker 1: that next step further and they're going to start actually
32:37
Speaker 1: doing even more testing, which is like ticking off the
32:40
Speaker 1: next boxes making sure that their milestones are reached, and
32:43
Speaker 1: several of which have actually been ticked off this year.
32:46
Speaker 1: As I said, I probably shouldn't be talking about twenty
32:48
Speaker 1: twenty two, but they have ticked off a number of
32:50
Speaker 1: different milestones this year, and they are really gaining momentum.
32:55
Speaker 1: And in fact, what was it like about two weeks
32:58
Speaker 1: ago they're actually in announced that they had secured a
33:01
Speaker 1: patent for its hervas immunotherapy candidate in South Korea, which
33:06
Speaker 1: is very very exciting because her vax was a gastric
33:10
Speaker 1: cancer research initiative that they started in twenty sixteen and
33:14
Speaker 1: it's now I guess it's getting the funding and the
33:16
Speaker 1: patents that they need to be successful, which is very
33:19
Speaker 1: very exciting for the future of science and medicine. And
33:21
Speaker 1: it just looks like they had good eggs doing really
33:23
Speaker 1: good things.
33:24
Speaker 3: S geeking amazing in terms of the specific So where
33:28
Speaker 3: did they start on January fourth, twenty twenty one and
33:31
Speaker 3: where did they end?
33:31
Speaker 2: Oh?
33:33
Speaker 1: You know the dates now, yeah, your share master, I
33:36
Speaker 1: love it. On the fourth of January, their share price
33:38
Speaker 1: was sitting at ten cents, scheeking cheapest chips, Cheapest chips.
33:42
Speaker 1: But the closing share price on the seventeenth of December
33:46
Speaker 1: doesn't sound impressive, but I promise you it is. Their
33:49
Speaker 1: closing price was forty six cents, so their percentage change
33:53
Speaker 1: was three hundred and fifty five percent. And to put
33:57
Speaker 1: that in context in the way that I have done
33:59
Speaker 1: for all the other share If you had invested one
34:01
Speaker 1: thousand dollars on the fourth of January and you were
34:04
Speaker 1: looking at your share portfolio on the seventeenth of December,
34:08
Speaker 1: you would have four five hundred and fifty dollars.
34:11
Speaker 2: So not bad.
34:12
Speaker 1: That's a pretty good size.
34:14
Speaker 3: So riddle me this thoughby because I'm looking at the
34:17
Speaker 3: chart in front of me, and you've got Unity Group
34:20
Speaker 3: Limited my mates. So if you bought one of their shares,
34:23
Speaker 3: it would have cost you one dollar seventy one at
34:26
Speaker 3: the start of the year and by the end of
34:27
Speaker 3: the year four dollars sixty four. Yeah, the percentage of
34:32
Speaker 3: the increasing gross is less than imagen, but they've only
34:38
Speaker 3: gone up by thirty six cents?
34:40
Speaker 1: What does that mean? Like? What am I missing that?
34:41
Speaker 1: What am I not getting?
34:43
Speaker 3: Like if we go to the bottom, it says one
34:45
Speaker 3: seventy one and then it says four, so like that's
34:48
Speaker 3: like three dollars and then if you get so it's
34:51
Speaker 3: not thirty.
34:51
Speaker 1: It's actually the percentage change. What does that mean? So
34:55
Speaker 1: the percentage change is the like one hundred percent of
34:59
Speaker 1: one dollar would be one dollar, right, So if something
35:02
Speaker 1: went from one dollar to two dollars, you would say
35:06
Speaker 1: that has increased one hundred percent, right, So when you say, imugen,
35:12
Speaker 1: for them to go from ten cents to forty six cents,
35:16
Speaker 1: that is a very significant jump. And when you look
35:19
Speaker 1: at the percentage change of what they are worth, like
35:22
Speaker 1: one dollar seventy one to four dollars sixty four, that's
35:25
Speaker 1: a difference of one hundred and seventy one percent ish.
35:28
Speaker 1: But then the difference of ten cents to forty six cents,
35:31
Speaker 1: that's actually a jump of three hundred and fifty five
35:34
Speaker 1: because if we distill it down, right, if you take
35:36
Speaker 1: that ten cents and times it by four, that would
35:39
Speaker 1: become forty cents. Yeah, yeah, yeah, which is why the
35:43
Speaker 1: percentage says it's three hundred and fifty five percent, because
35:46
Speaker 1: it's actually pretty much quadrupled. This makes sense? Does that
35:49
Speaker 1: make more sense? It makes not a lot of sense.
35:51
Speaker 1: Not a silly question at all, because you look at
35:53
Speaker 1: the percentages and you're like, what does that even mean?
35:56
Speaker 1: Like what's three hundred and fifty five percent? Why is
35:59
Speaker 1: that so much more? When they say ten cents and
36:01
Speaker 1: the others like a dollar seventy one, it's actually the
36:03
Speaker 1: percentage and the difference in comparison to where they started. Whereas,
36:07
Speaker 1: g if we took the opening share price for Unity Group,
36:10
Speaker 1: which is a dollars seventy one, and just times to
36:13
Speaker 1: that by four, which would be four hundred percent increase,
36:17
Speaker 1: you would actually have a share price of about six
36:19
Speaker 1: dollars eighty four in comparison to the four dollars sixty
36:23
Speaker 1: four they had, which was one hundred and seventy one
36:25
Speaker 1: percent of an increase. Does that make sense?
36:27
Speaker 3: It does make sense. Yeah, you just kind of need
36:30
Speaker 3: to stop and think about it, because at a glance,
36:32
Speaker 3: it doesn't make sense if you don't have a maths
36:34
Speaker 3: brain like I don't.
36:35
Speaker 1: Yeah, look, the numbers are pretty scary, which is why
36:38
Speaker 1: I actually wanted to contextualize it with that, if you
36:41
Speaker 1: invested one thousand dollars, this is what it would mean.
36:44
Speaker 1: Because a lot of us don't have the ability genuinely,
36:47
Speaker 1: not because we're not intelligent, but because our brains work
36:50
Speaker 1: in a linear way. We don't have the ability to
36:53
Speaker 1: comprehend what that means. We go, what the hell, how
36:55
Speaker 1: does that work? Because our brains actually literally are wired
36:59
Speaker 1: to work in linear way, we don't actually have the
37:02
Speaker 1: ability literally scientifically g to contextualize percentages as well as
37:07
Speaker 1: we do what that would mean to us literally? Okay,
37:10
Speaker 1: kind of cool, very cool.
37:12
Speaker 3: Was there anything else you wanted to cover? Re imagen
37:15
Speaker 3: or should we move on to number two?
37:17
Speaker 1: We should move on. We've got more percentages to talk
37:20
Speaker 1: about and digest. I reckon, We move on.
37:22
Speaker 3: All right, drum roll? Number two is Lion Town Resources Limited.
37:29
Speaker 3: Maybe it could be something to do with Zoo's Zoo doctors.
37:33
Speaker 1: Not sure, talk us through it. Okay, sure, We're gonna
37:35
Speaker 1: move from Pillborough, which was a lithium mining company, to Liontown,
37:40
Speaker 1: which is also a lithium mining company. Very big form,
37:44
Speaker 1: I know, very very exciting. But they have had an
37:47
Speaker 1: incredible twenty twenty one and I feel like Lion Town
37:51
Speaker 1: is a very exciting place to be. They have actually
37:53
Speaker 1: searched once again this year. As I said, probably shouldn't
37:56
Speaker 1: be talking about twenty twenty two, but we all keep
37:58
Speaker 1: up with it because Line Town, in the last couple
38:01
Speaker 1: of weeks has actually signed a lithium supply agreement GE
38:05
Speaker 1: with Tesla.
38:06
Speaker 4: Ah there you go, I know, and that we're saying,
38:10
Speaker 4: oh my god, like because we know how big Tesla
38:13
Speaker 4: is and you now know that lithium is what creates
38:16
Speaker 4: the batteries that run cars like Tesla.
38:19
Speaker 1: And I find that so interesting that you immediately went
38:22
Speaker 1: oh because you knew the brand name, and that's what's
38:24
Speaker 1: going to happen. The more we talk about share prices,
38:26
Speaker 1: and the more we talk about shares in general, you're
38:28
Speaker 1: gonna be like, oh, Lion Town, aren't they the ones
38:31
Speaker 1: that signed that contract? Like that makes sense that they
38:33
Speaker 1: would be thriving. So it's kind of interesting, right, So
38:37
Speaker 1: let's get into the numbers, because these guys started at
38:40
Speaker 1: a not so sexy beginning. And when I say not
38:42
Speaker 1: so sexy, I mean it wasn't like Unity Group, who
38:45
Speaker 1: had a dollar and seventy one, which was pretty high.
38:48
Speaker 1: Liontown Resources opened on the fourth of January GKiN with
38:52
Speaker 1: an initial opening price of thirty four cents per share,
38:55
Speaker 1: so nothing to write home about, I wouldn't believe. But
38:59
Speaker 1: by the time the seventeenth of December came, they had
39:03
Speaker 1: a share price of a dollar fifty six, which you'll
39:06
Speaker 1: go the pillbro. They closed at two dollars seventy five.
39:10
Speaker 1: So is that not better? No? Because their percentage change
39:14
Speaker 1: was three hundred and fifty seven zero point four percent,
39:18
Speaker 1: which means if you had invested a grant, you'd have
39:22
Speaker 1: four thy, five hundred and seventy four dollars in your
39:24
Speaker 1: account on the seventeenth of December had you invested for
39:27
Speaker 1: that entire period. Huge kind of.
39:29
Speaker 3: Cool, right, Okay, So how come then, like, why is
39:34
Speaker 3: Lyon town? Why did they move so far ahead of
39:36
Speaker 3: Pilbarra if they're both in the lithium game, what was
39:39
Speaker 3: the difference there?
39:40
Speaker 1: So lithium in Australia is nothing new. It is not
39:44
Speaker 1: something that we go, Wow, we're finally doing lith like
39:46
Speaker 1: we've done it for a long time. And so when
39:49
Speaker 1: companies that are, you know, plodding along and doing well
39:52
Speaker 1: start to do things like raising capital from institutional investors
39:57
Speaker 1: and shareholders, you start to go what are they doing,
40:00
Speaker 1: what are they planning? Why are they doing this? And
40:02
Speaker 1: that's when I guess the eye gets cast to them
40:04
Speaker 1: and you go, how are you doing? Like what do
40:06
Speaker 1: your financials look like? You're being pretty aggressive in the market,
40:10
Speaker 1: and the business last year did a capital raise for
40:14
Speaker 1: institutional investors and shareholders and actually raised four hundred and
40:19
Speaker 1: ninety million dollars at a share price of dollar sixty five,
40:22
Speaker 1: which was essentially a fourteen point one discount to the
40:25
Speaker 1: last closing price, which is very very cool. This raising
40:29
Speaker 1: happened after they did what they called a DFS, which
40:33
Speaker 1: is a definitive feasibility study for a project that they're
40:37
Speaker 1: planning to do in Western Australia. That project is called
40:41
Speaker 1: the Kathleen Valley Lithium Project, and the plan was they
40:45
Speaker 1: did this study to work out if it would be
40:48
Speaker 1: worth doing this new project and seeing if they could
40:51
Speaker 1: make even more money by mining even more lithium. And
40:54
Speaker 1: that obviously came out as a positive, and they essentially
40:57
Speaker 1: said that they could ramp up how much lithium they
40:59
Speaker 1: would do livering per year by year six. And essentially
41:03
Speaker 1: investors were act, great, that sounds fantastic. We'd like to
41:06
Speaker 1: get behind it. So they did do a lot. They
41:09
Speaker 1: obviously went to institutional investors. When we say institutional investors,
41:13
Speaker 1: we need really big investors like banks. We're not talking
41:17
Speaker 1: really rich billionaires. An institutional investor is when a bank
41:21
Speaker 1: gets behind it and they go, yeah, all right, your
41:23
Speaker 1: business plan is pretty good. We'll give you some casholder
41:26
Speaker 1: to throw in there and make sure that happens. But
41:28
Speaker 1: then they also obviously went to market and individual investors
41:32
Speaker 1: were buying shares, becoming regular investors. And essentially that means
41:36
Speaker 1: that that company, because of that capital raising or essentially
41:40
Speaker 1: just like fundraising that they've done for their business, they
41:43
Speaker 1: now have cash reserves of around four hundred and seventy
41:46
Speaker 1: four million dollars, which is pretty exciting because they're planning
41:50
Speaker 1: on funding their new projects with that and they've you know,
41:53
Speaker 1: got a pretty good looking balance sheet at the moment,
41:55
Speaker 1: so I can see why people are looking at it
41:57
Speaker 1: going all right, that makes a lot of sense because
41:59
Speaker 1: in a addition to being successful with the project, that
42:02
Speaker 1: lithium company is actually going to increase jobs and services
42:06
Speaker 1: in wa for the mining industry as well, which is
42:09
Speaker 1: obviously all very healthy when it comes to I guess
42:12
Speaker 1: regular business operations. Uh huh. And do we assume or
42:16
Speaker 1: perhaps you have the numbers in front of you, that
42:18
Speaker 1: they're still killing it with the partnership with Tesla, Yes,
42:21
Speaker 1: they are still killing it. The partnership that we're talking
42:24
Speaker 1: about with Tesla was actually only announced a couple of
42:27
Speaker 1: weeks ago. G It wasn't something that was announced last year.
42:29
Speaker 1: I just think it's really exciting and I knew you'd
42:31
Speaker 1: know what I was talking about. Elon Musk Well, with
42:34
Speaker 1: that fee, should we move on to the star performer
42:38
Speaker 1: of twenty twenty one? Drum roll? Here is that?
42:42
Speaker 2: Nah?
42:42
Speaker 1: That would have been a terrible drum roll, but you
42:44
Speaker 1: guys are stuck with it because it's on the audio file.
42:48
Speaker 3: So it is Nova Nicks Limited. Who on earth are
42:52
Speaker 3: these high flying people?
42:55
Speaker 1: You're going to be surprised when I tell you our
42:56
Speaker 1: star performer for twenty twenty one was actually a battery
43:00
Speaker 1: materials and technology company, Bloody Batteries. I know they're doing
43:04
Speaker 1: so well on our share market this year. Here I
43:07
Speaker 1: am thinking when I started to do the research, because
43:10
Speaker 1: I didn't know off the top of my head of
43:11
Speaker 1: the top five performing shares, because I was like, I
43:13
Speaker 1: don't know who these guys are, because I don't invest
43:16
Speaker 1: in who's performing well over a particular period of time.
43:19
Speaker 1: But it turns out Mining in Australia going off guys.
43:23
Speaker 1: This company, surprisingly or unsurprisingly, specializes in lithium ion batteries
43:29
Speaker 1: used to power electric vehicles, mobile phones, and energy storage units,
43:33
Speaker 1: which is kind of exciting, but they are extra fancy.
43:37
Speaker 1: Gking because Novanix's clients include the likes of Panasonic and
43:42
Speaker 1: Bosh and with the high value battery market now being
43:46
Speaker 1: estimated to be worth about sixty billion US dollars per
43:50
Speaker 1: year each and every single year, like, I can see
43:53
Speaker 1: why so many lithium ion companies have actually made it
43:57
Speaker 1: to the top five performing list of shees on the
43:59
Speaker 1: money share prices.
44:01
Speaker 3: I know nothing about this, so it is kind of
44:03
Speaker 3: a shock to me, but anything would be. I guess
44:06
Speaker 3: what did Novnicks do differently or they have they just
44:10
Speaker 3: been around longer?
44:11
Speaker 1: What's the go? So they are a US based company
44:16
Speaker 1: and they joined the ASX in July twenty seventeen after
44:19
Speaker 1: the business was acquired by Graphite Corp. Which is another
44:22
Speaker 1: mining business in June. So they are pretty big and
44:25
Speaker 1: given they are an American business, they can be a
44:28
Speaker 1: little bit more I could say aggressive, because they are
44:31
Speaker 1: in general just bigger, right. And then in twenty eighteen,
44:34
Speaker 1: Novanicks began making battery cells in Canada. They actually produced
44:38
Speaker 1: the first batch of cyndrical cell and pouch cells as
44:41
Speaker 1: its battery cell pilot factory in Nova Scotia.
44:44
Speaker 3: Nova Scotia, Baby, Nova Scotia, Is that right? Yeah, I
44:48
Speaker 3: think so, how do you know that, I don't know.
44:50
Speaker 3: It would be in a TV reference from.
44:52
Speaker 1: Many Okay, awesome, So they made them there. They are
44:54
Speaker 1: a really big business. Since then, they've raised a lot
44:57
Speaker 1: of money to invest in that pure graph Fight joint
45:00
Speaker 1: venture and that has actually seen them become one of
45:03
Speaker 1: the biggest battery technology solutions companies in the world. So
45:07
Speaker 1: obviously with a pretty sexy list of clients and the
45:11
Speaker 1: fact that there is such a hunger for lithium ion
45:14
Speaker 1: batteries in the world, it kind of makes sense. And
45:17
Speaker 1: they've this year Gking come out on top. All right,
45:20
Speaker 1: let's talk numbers. Then with Novnix, what are we talking?
45:24
Speaker 4: All right?
45:24
Speaker 1: So these ones very impressive. So they had an opening
45:28
Speaker 1: share price on the fourth of January of a mere
45:31
Speaker 1: dollar and twenty two per share, which is not that sexy.
45:35
Speaker 1: I mean, Unity Group was higher than that, And there
45:38
Speaker 1: are a couple of shares that didn't perform nearly as
45:40
Speaker 1: well that had much higher share prices, right, but g
45:44
Speaker 1: on the seventeenth of December twenty twenty one, their closing
45:48
Speaker 1: share price was eight dollars and ninety four cents, which
45:51
Speaker 1: is a percentage change of six hundred and thirty two
45:55
Speaker 1: point eight percent. Meaning to contextualize this, if you invested
45:59
Speaker 1: a grain and you'd have seven three hundred and twenty
46:02
Speaker 1: eight dollar US sitting in your account on the seventeenth
46:04
Speaker 1: of December, like what, yes, thanks, yes, Like I want
46:08
Speaker 1: my investments always to increase by six hundred and thirty
46:12
Speaker 1: two percent, Like what, So.
46:14
Speaker 3: That's pretty much double lieon town in terms of the
46:18
Speaker 3: percentage increase.
46:21
Speaker 1: You're definitely on par. That's how that works. And it's
46:24
Speaker 1: super interesting, right to see how I feel like percentage
46:28
Speaker 1: changes are really hard for us to comprehend because historically
46:30
Speaker 1: we've been taught there's no such thing as more than
46:32
Speaker 1: one hundred percent, like there is on the stock market
46:36
Speaker 1: when it comes to percentage changes. And that's just to
46:38
Speaker 1: give you a little bit of context, right, Like six
46:40
Speaker 1: hundred and thirty two percent is not quote a percent,
46:44
Speaker 1: it's more a context marker that helps you see how
46:47
Speaker 1: much is increased by. But to go from a dollar
46:50
Speaker 1: twenty two as an opening share price at the start
46:52
Speaker 1: of that year to eight dollars ninety four, which is
46:54
Speaker 1: basically nine dollars, is crazy, Like that's so much money,
46:59
Speaker 1: g So.
47:00
Speaker 3: Hang on just a minute, miss Victoria Divine. So this
47:03
Speaker 3: is the ASX two hundred from twenty twenty one that
47:08
Speaker 3: all Australian companies. You just said that Novakniks is American.
47:13
Speaker 3: What's happening here? They're taking our number one? What's up?
47:17
Speaker 1: I know it's kind of rude, isn't it a little bit?
47:20
Speaker 1: How are they on this list? So the ASX can
47:23
Speaker 1: actually have a number of different companies on it, So
47:26
Speaker 1: American companies can actually be listed on the ASX. And
47:30
Speaker 1: actually in recent years the AX has stepped up, according
47:34
Speaker 1: to them, it's efforts to attract foreign companies to the
47:38
Speaker 1: BOSS and this is just one of those companies that
47:41
Speaker 1: have decided to list down Under, which is kind of cool.
47:45
Speaker 1: So it means that we have direct access to them.
47:48
Speaker 1: And yeah, summary of that, foreign companies can list themselves
47:51
Speaker 1: on the AX and g at current there are actually
47:54
Speaker 1: more than two hundred and seventy international companies listed on
47:57
Speaker 1: the AX.
47:58
Speaker 3: How big is the ASX or the Australian Stock Exchange
48:02
Speaker 3: if we haven't said that made it clear?
48:03
Speaker 1: Yes, so it's definitely not as big as some of
48:06
Speaker 1: the market exchanges around the world. But there are actually
48:09
Speaker 1: more than two thousand companies currently listed on the ASEX
48:11
Speaker 1: and lots of being listed regularly. So there are smaller
48:15
Speaker 1: companies and they are generally considered to be a little
48:17
Speaker 1: more risky when it comes to being an investment, as
48:20
Speaker 1: they are more likely to go out of business than
48:22
Speaker 1: the larger ones. And the larger ones actually want to
48:25
Speaker 1: be on more global stock exchanges, which kind of makes sense.
48:28
Speaker 3: And when you say the larger companies, you don't mean
48:31
Speaker 3: the number of employees that work there. You mean the
48:34
Speaker 3: revenue that they build.
48:36
Speaker 1: Yes, but often with that comes headcount, right, Like, the
48:40
Speaker 1: more you are turning over, the more responsibility you have
48:42
Speaker 1: as a business, the more staff you are going to
48:44
Speaker 1: require to manage that, because you can't just go from
48:48
Speaker 1: earning one hundred dollars a week to earning one hundred
48:50
Speaker 1: million dollars a week and not have the right infrastructure
48:53
Speaker 1: around you. And infrastructure is often made up of staffing. So, yes,
48:58
Speaker 1: you're right, could be based on turnover, but it also
49:01
Speaker 1: could just be based on the size of the organization. Literally, Okay,
49:05
Speaker 1: there you go. Actually, when it comes to the ASEX,
49:08
Speaker 1: I had an interesting one the other day and this
49:10
Speaker 1: is completely left field, So to wrap up all of that.
49:13
Speaker 1: I think it's just interesting to have a conversation about, well,
49:15
Speaker 1: who were the top five companies when it comes to
49:18
Speaker 1: direct performance and super interesting to see that it's lithium.
49:22
Speaker 1: But Ge, you just had a question about the AX
49:24
Speaker 1: And I actually had a message from someone the other day.
49:26
Speaker 1: They're like, I just tried to Google my share price
49:28
Speaker 1: and for some reason, it's not coming up. It's coming
49:31
Speaker 1: up as yesterday's date. And that's because here in Australia
49:34
Speaker 1: our asx OR, our stock exchange is actually only open
49:38
Speaker 1: from ten am to four pm Monday to Friday.
49:41
Speaker 3: Did you know that, g I didn't know it was
49:44
Speaker 3: ten till four I knew it was Monday to Friday.
49:47
Speaker 1: But is that really nice relaxed hours? It depends. Our
49:51
Speaker 1: hours are ten to four pm, and hundreds of stock
49:54
Speaker 1: exchanges around the world operate in that way, but the
49:58
Speaker 1: timings are often very different. But we've got some nice
50:01
Speaker 1: relaxed hours when it comes to the share market and
50:04
Speaker 1: that has always worked out really well for me as
50:06
Speaker 1: a financial advisor because I don't need to be up
50:08
Speaker 1: at like five am to check the markets. I can
50:10
Speaker 1: cruise into work, get a coffee and then be there
50:13
Speaker 1: when the market's open and I am pre caffeinated. How
50:15
Speaker 1: good is that? G.
50:17
Speaker 3: It's so weird because again, people probably do, but I
50:20
Speaker 3: don't think of it as like an actual market where
50:23
Speaker 3: things are happening every day and people are making these deals,
50:26
Speaker 3: like you know, you just kind of think that it
50:29
Speaker 3: happens and you like buy and sell. I don't know,
50:32
Speaker 3: is that oh you're looking at me?
50:34
Speaker 2: No?
50:34
Speaker 1: No, no, no, no, I'm not. It's literally a market, Like, yeah,
50:37
Speaker 1: it's a market where you buy and sell. And you know,
50:39
Speaker 1: I guess to trivialize my job for a second. I
50:42
Speaker 1: don't just rock into work with a coffee and then
50:44
Speaker 1: check the markets at ten am. A lot of what
50:47
Speaker 1: you know, investment bankers and investors in general will be
50:50
Speaker 1: doing before ten am is checking their emails and checking
50:53
Speaker 1: trades they want to make and submitting those trades. So
50:56
Speaker 1: when the market opens they go through immediately. Like there's
50:59
Speaker 1: a lot to it, and it is quite interesting when
51:02
Speaker 1: it comes down to it, because you as a general investor, G,
51:05
Speaker 1: you go, well, it's not really a market, but it
51:07
Speaker 1: literally is all day every day from ten to four pm,
51:11
Speaker 1: people are making trades on the share market and prices
51:15
Speaker 1: are going up and down based on demand and based
51:17
Speaker 1: on what's going on in the economy. Like a couple
51:20
Speaker 1: of weeks ago, we saw a crash in the ASEX
51:22
Speaker 1: and it went down across the board by more than
51:24
Speaker 1: three percent, and that's really scary, But that's based on demand.
51:28
Speaker 1: That's based on people going, oh my gosh, like this
51:31
Speaker 1: has just been announced. And when I talk about this,
51:33
Speaker 1: I'm talking about the war between Ukraine and Russia and
51:36
Speaker 1: this has just been announced and I don't want to
51:38
Speaker 1: hold this particular asset anymore. So people are disposing of assets,
51:42
Speaker 1: and the disposal of assets, or people selling their assets
51:45
Speaker 1: is what starts to drive share prices down because people
51:49
Speaker 1: aren't being as aggressive in purchasing. It's a very interesting
51:53
Speaker 1: world to start learning more about g which is exactly
51:56
Speaker 1: why we did today's episode. Was there anything else you
52:00
Speaker 1: want to add before we head for the day. This
52:03
Speaker 1: has been a very long episode, but I've loved every
52:05
Speaker 1: minute it has been. I love you. If you stuck
52:07
Speaker 1: around for this, I hope it wasn't too dry or
52:09
Speaker 1: bland or boring. Please please please slip into our DMS
52:13
Speaker 1: with feedback on episodes like this, because as much as
52:16
Speaker 1: they are dry, I feel like you, guys, learn a
52:18
Speaker 1: lot about the share market when I get to talk
52:20
Speaker 1: about individual shares, a lot about the AX, about how
52:23
Speaker 1: that works, about how shared trading works, and an episode
52:26
Speaker 1: on the needy gritty of g how can we trade
52:29
Speaker 1: on the ASEX is just not nearly as impactful as
52:32
Speaker 1: starting to deep dive into shares and then you asking
52:35
Speaker 1: context questions around that. It's kind of like getting to
52:39
Speaker 1: learn while on the job in a way, and I
52:41
Speaker 1: feel like that most of the time is actually far
52:43
Speaker 1: more constructive for you than it is if I go, Okay,
52:46
Speaker 1: Georgia King, So the AX, let's talk about it, It
52:49
Speaker 1: doesn't make it as tangible or as real, whereas I
52:52
Speaker 1: think when we're talking about a particular share and how
52:54
Speaker 1: that works and what that means and how did they
52:56
Speaker 1: get on the ASEX, is actually a really interesting conversation
52:59
Speaker 1: to be at.
53:00
Speaker 3: For sure, And I think, as you said during this show,
53:02
Speaker 3: we should definitely take a look at the stocks that
53:05
Speaker 3: tanked and do like the reverse of this episode, because
53:09
Speaker 3: that sounds juicy totally. That'll be a really juicy episode.
53:12
Speaker 3: But that is, as always, all we have time for today.
53:15
Speaker 3: And remember guys that the advice shed on. She's on
53:17
Speaker 3: the money is general in nature and does not consider
53:21
Speaker 3: your individual circumstances. She's on the money exists purely for
53:25
Speaker 3: educational purposes and should not be relied upon to make
53:28
Speaker 3: an investment or a financial decision. And we promise Victoria
53:32
Speaker 3: Divine is an authorized representative of Infocused Securities Australia.
53:37
Speaker 1: Are you getting used to that or you still want
53:40
Speaker 1: to stay Australia Pacific because that's like soe G've lived
53:45
Speaker 1: in the past.
53:46
Speaker 3: Man Australia proprior to limited Abian four seven zero nine
53:51
Speaker 3: seven seven nine seven zero four nine Aofosal two three
53:54
Speaker 3: six five two three. We will see you next week. Guys,
53:57
Speaker 3: see you next week, guys
54:02
Speaker 1: Back