1 00:00:03,990 --> 00:00:06,750 Sean Aylmer: Welcome to the FEAR & GREED Business Interview. I'm Sean Aylmer. 2 00:00:06,750 --> 00:00:09,449 Sean Aylmer: Profit season is behind us. Now we've seen all the 3 00:00:09,450 --> 00:00:12,179 Sean Aylmer: results and heard about the outlook. So where are the 4 00:00:12,179 --> 00:00:15,660 Sean Aylmer: opportunities for investors and what does an analyst look for 5 00:00:15,660 --> 00:00:18,268 Sean Aylmer: when there's so much information out there? Remember, this is 6 00:00:18,270 --> 00:00:21,030 Sean Aylmer: general information only, and you should always seek professional advice 7 00:00:21,030 --> 00:00:24,750 Sean Aylmer: before making investment decisions. Grady Wulff is a market analyst 8 00:00:24,750 --> 00:00:27,599 Sean Aylmer: at trading platform, Bell Direct, part of the ASX listed 9 00:00:27,599 --> 00:00:30,510 Sean Aylmer: Bell Financial Group. Grady, welcome to FEAR & GREED. 10 00:00:30,840 --> 00:00:31,769 Grady Wulff : Thanks for having me, Sean. 11 00:00:32,610 --> 00:00:35,820 Sean Aylmer: Today you are giving us a list of seven stocks 12 00:00:35,850 --> 00:00:40,800 Sean Aylmer: to watch post- reporting season. Let's start with everyone's favorite. 13 00:00:40,800 --> 00:00:42,600 Sean Aylmer: Well, I don't know whether it's everyone's favorite, but if 14 00:00:42,600 --> 00:00:44,550 Sean Aylmer: you're a property investor, it seems to be your favorite, 15 00:00:44,550 --> 00:00:47,430 Sean Aylmer: Goodman Group. Why do we like Goodman Group so much? 16 00:00:48,059 --> 00:00:51,389 Grady Wulff : We definitely love Goodman Group this reporting season, none more 17 00:00:51,389 --> 00:00:53,849 Grady Wulff : so than a lot of the investors after their report 18 00:00:53,850 --> 00:00:56,370 Grady Wulff : came out. Now, Goodman Group is one in the REIT 19 00:00:56,370 --> 00:01:00,150 Grady Wulff : sector, obviously, that is focused on industrial REITs and warehouses, 20 00:01:00,150 --> 00:01:02,460 Grady Wulff : and we know there's a backlog of demand for this 21 00:01:02,460 --> 00:01:05,700 Grady Wulff : because of the AI movement. So investing in AI can be 22 00:01:05,700 --> 00:01:08,639 Grady Wulff : done through REITs and exactly where Goodman Group sits at 23 00:01:08,639 --> 00:01:10,979 Grady Wulff : the moment. Now, what we liked about their results is 24 00:01:10,980 --> 00:01:15,540 Grady Wulff : that their data centers are now 37% of work in progress, and we see a 25 00:01:15,540 --> 00:01:18,270 Grady Wulff : greater increase of that coming into the second half. Now, 26 00:01:18,480 --> 00:01:21,269 Grady Wulff : a lot of them are low vacancy rates at the 27 00:01:21,270 --> 00:01:23,880 Grady Wulff : moment, and they're trading at the moment on a multiple 28 00:01:23,880 --> 00:01:28,080 Grady Wulff : of 27 times forward earnings in FY24. And that does 29 00:01:28,080 --> 00:01:30,630 Grady Wulff : seem quite expensive, but for the growth runway and the 30 00:01:30,630 --> 00:01:33,690 Grady Wulff : growth trajectory that they're offering, it's a really good value. 31 00:01:33,690 --> 00:01:36,180 Grady Wulff : And a lot of our brokers, especially at Bell Potter and 32 00:01:36,180 --> 00:01:38,550 Grady Wulff : Bell Direct, a lot of our brokers actually use Goodman 33 00:01:38,550 --> 00:01:41,009 Grady Wulff : Group as a staple in a lot of portfolios for 34 00:01:41,010 --> 00:01:44,309 Grady Wulff : our clients because we know they're so consistent and they're so well 35 00:01:44,309 --> 00:01:47,609 Grady Wulff : run. So the growth trajectory is really positive and really 36 00:01:47,609 --> 00:01:49,830 Grady Wulff : appealing for Goodman Group, and we can't wait to see 37 00:01:49,830 --> 00:01:53,340 Grady Wulff : what the company has over the coming years. And yeah, 38 00:01:53,340 --> 00:01:56,550 Grady Wulff : it's a really exciting time now looking forward, and a 39 00:01:56,550 --> 00:01:58,410 Grady Wulff : lot of the brokers are really, really bullish on them 40 00:01:58,410 --> 00:01:58,800 Grady Wulff : as well. 41 00:01:59,340 --> 00:02:01,410 Sean Aylmer: Something you just said then, it's a way of getting 42 00:02:01,410 --> 00:02:04,140 Sean Aylmer: into AI. So a lot of investors, you don't need 43 00:02:04,199 --> 00:02:07,110 Sean Aylmer: to buy Nvidia to be an AI investor. You can 44 00:02:07,110 --> 00:02:08,670 Sean Aylmer: look at companies like Goodman. 45 00:02:09,330 --> 00:02:12,690 Grady Wulff : Absolutely. Yeah, and it's really interesting because AI, everyone just 46 00:02:12,690 --> 00:02:15,569 Grady Wulff : assumes is just the tech sector, but it's actually not. 47 00:02:15,840 --> 00:02:19,198 Grady Wulff : It's through the REITs, it's through the tech sector, naturally 48 00:02:19,200 --> 00:02:21,149 Grady Wulff : it's through the mining sector because a lot of the 49 00:02:21,150 --> 00:02:25,110 Grady Wulff : big miners, BHP, FMG are investing in AI. Then you've got 50 00:02:25,110 --> 00:02:29,100 Grady Wulff : the healthcare companies like Telix Pharmaceuticals investing in AI. So 51 00:02:29,790 --> 00:02:32,459 Grady Wulff : it means no bounds. It really has no limit at 52 00:02:32,460 --> 00:02:34,320 Grady Wulff : the moment. So it's not just through tech. 53 00:02:34,740 --> 00:02:37,050 Sean Aylmer: AI has no bounds. I'm totally with you on that. 54 00:02:37,349 --> 00:02:40,469 Sean Aylmer: What about NEXTDC? We're sort of staying in the same 55 00:02:40,469 --> 00:02:42,540 Sean Aylmer: world there with NEXTDC. Just explain what it is and why you like it. 56 00:02:42,540 --> 00:02:48,090 Grady Wulff : Yeah, NEXTDC is an interesting one. They're a development and operator of 57 00:02:48,090 --> 00:02:50,909 Grady Wulff : data centers. So similar kind of space. See, Goodman Group 58 00:02:50,910 --> 00:02:53,189 Grady Wulff : has the industrial warehouses, so it's a bit more of 59 00:02:53,190 --> 00:02:56,610 Grady Wulff : a diverse company. But NEXTDC is simply the builder and 60 00:02:56,610 --> 00:02:59,939 Grady Wulff : developer and operator of all these data warehouses and data 61 00:02:59,940 --> 00:03:03,270 Grady Wulff : centers, which is exactly again, where the opportunity is. So 62 00:03:03,270 --> 00:03:05,550 Grady Wulff : a few years ago, these kind of companies were kind 63 00:03:05,550 --> 00:03:08,250 Grady Wulff : of laying low, and then the AI movement has really 64 00:03:08,250 --> 00:03:10,800 Grady Wulff : put a spotlight on these kind of companies. Now, their 65 00:03:10,800 --> 00:03:13,950 Grady Wulff : results came out and investors were very, very impressed, up 66 00:03:13,980 --> 00:03:16,949 Grady Wulff : 16% in the share price after the result. Now they 67 00:03:16,949 --> 00:03:20,130 Grady Wulff : beat revenue forecast by 2.1%, which doesn't seem like a 68 00:03:20,130 --> 00:03:22,860 Grady Wulff : lot, but the expectation was really high and they hit $ 69 00:03:22,860 --> 00:03:26,550 Grady Wulff : 209 million in revenue, which is incredible. And a lot 70 00:03:26,550 --> 00:03:29,040 Grady Wulff : of these companies in the tech sector, they need to 71 00:03:29,040 --> 00:03:32,369 Grady Wulff : have annual recurring revenue, and that's exactly what NEXTDC has. 72 00:03:32,370 --> 00:03:36,269 Grady Wulff : So with that in mind, they're able to weather any 73 00:03:36,330 --> 00:03:39,120 Grady Wulff : storm at all and any tough economic times like COVID 74 00:03:39,450 --> 00:03:41,970 Grady Wulff : with annual recurring revenue. So what we liked about that 75 00:03:41,970 --> 00:03:45,300 Grady Wulff : was the company's jump in revenue, so they beat forecast 76 00:03:45,300 --> 00:03:47,790 Grady Wulff : by 2%, but it was a 31% jump in revenue 77 00:03:47,790 --> 00:03:50,820 Grady Wulff : on the prior corresponding period. So again, that just goes 78 00:03:50,820 --> 00:03:53,129 Grady Wulff : to show that they're so on the forefront of where 79 00:03:53,129 --> 00:03:56,100 Grady Wulff : everyone wants to invest and also where their clients want 80 00:03:56,100 --> 00:03:59,160 Grady Wulff : to be. They also had a 5% lift in underlying 81 00:03:59,160 --> 00:04:03,750 Grady Wulff : EBITDA to $ 102 million. So again, their growth runway is really, 82 00:04:03,750 --> 00:04:06,599 Grady Wulff : really high. And looking ahead into the second half, this 83 00:04:06,599 --> 00:04:09,120 Grady Wulff : reporting season, we saw a lot of companies need ... The 84 00:04:09,299 --> 00:04:11,910 Grady Wulff : outlook was kind of vague across some companies, which we'll 85 00:04:11,910 --> 00:04:14,940 Grady Wulff : get to later in my stock picks. But this one, they were 86 00:04:15,210 --> 00:04:18,450 Grady Wulff : very, very onto the ball, they had quantitative measures for 87 00:04:18,450 --> 00:04:21,690 Grady Wulff : the outlook, so they expect total revenue between 400 million and 88 00:04:21,809 --> 00:04:26,308 Grady Wulff : 415 million, which again, that's massive growth. That's literally doubling 89 00:04:26,309 --> 00:04:28,799 Grady Wulff : what they just reported for the whole of their financial 90 00:04:28,799 --> 00:04:31,380 Grady Wulff : year. So they just continue to go from strength to 91 00:04:31,380 --> 00:04:33,420 Grady Wulff : strength. It's a company that all of the brokers are 92 00:04:33,420 --> 00:04:37,710 Grady Wulff : really liking. They're also looking at different properties as well. 93 00:04:37,710 --> 00:04:40,678 Grady Wulff : So with property, like the property they own, so when 94 00:04:40,678 --> 00:04:42,328 Grady Wulff : you look at a REIT stock, you want to see 95 00:04:42,330 --> 00:04:44,340 Grady Wulff : that they own the property, they manage the property, they 96 00:04:44,370 --> 00:04:47,189 Grady Wulff : operate the property and develop them as well. And so 97 00:04:47,190 --> 00:04:50,010 Grady Wulff : given they own the properties, there's obviously land value in 98 00:04:50,010 --> 00:04:52,170 Grady Wulff : that as well. So companies that have the land value 99 00:04:52,170 --> 00:04:54,690 Grady Wulff : in a property portfolio, it does look very good to 100 00:04:54,690 --> 00:04:55,830 Grady Wulff : bolster the balance sheet. 101 00:04:56,309 --> 00:04:58,169 Sean Aylmer: Stay with me, Grady, we'll be back in a minute. 102 00:05:04,230 --> 00:05:07,380 Sean Aylmer: I'm speaking to Grady Wulff, market analyst at Bell Direct. 103 00:05:08,370 --> 00:05:10,620 Sean Aylmer: Okay, now a couple of retailers you've got in your 104 00:05:10,620 --> 00:05:13,710 Sean Aylmer: list, one everyone loves at the moment or has done over the 105 00:05:13,710 --> 00:05:16,559 Sean Aylmer: last week or so, that's Lovisa Group. The other one is Accent 106 00:05:16,559 --> 00:05:19,440 Sean Aylmer: Group. Probably a few more people on the fence on 107 00:05:19,440 --> 00:05:20,609 Sean Aylmer: that one. Tell me about those two. 108 00:05:21,059 --> 00:05:23,609 Grady Wulff : Absolutely. Well, Lovisa has been one that I've loved for a 109 00:05:23,609 --> 00:05:26,970 Grady Wulff : very long time, and I've loved it because not only am 110 00:05:26,970 --> 00:05:29,850 Grady Wulff : I a shopper there, but the company can really do 111 00:05:29,850 --> 00:05:32,879 Grady Wulff : no wrong in my opinion. So they've got the low 112 00:05:32,880 --> 00:05:37,889 Grady Wulff : ticket, high repurchase items of fashion jewelry. So their margins 113 00:05:37,889 --> 00:05:40,529 Grady Wulff : are massive. They're really cheap to make, but when consumers 114 00:05:40,529 --> 00:05:42,389 Grady Wulff : go there, they know what they're getting. They're not going 115 00:05:42,389 --> 00:05:45,539 Grady Wulff : to get this 18 carat gold necklace that will last 116 00:05:45,540 --> 00:05:48,600 Grady Wulff : forever. They've got this fashion jewelry, it suits your outfit, 117 00:05:48,600 --> 00:05:50,730 Grady Wulff : you know it's a $ 5 item, you're going to throw 118 00:05:50,730 --> 00:05:52,830 Grady Wulff : it out in the near future or recycle it in 119 00:05:52,830 --> 00:05:56,400 Grady Wulff : the future and buy it again. So the constant replacement 120 00:05:56,400 --> 00:06:00,960 Grady Wulff : and constant customers coming back to continue shopping with the Lovisa is 121 00:06:00,960 --> 00:06:05,070 Grady Wulff : really high. They also have a global expansion strategy that's 122 00:06:05,070 --> 00:06:07,860 Grady Wulff : really boding well for them. And so in the current 123 00:06:07,860 --> 00:06:12,150 Grady Wulff : economic environment, we've seen sales in retail go down, but 124 00:06:12,150 --> 00:06:15,389 Grady Wulff : for a company like Lovisa, they're so resilient and they continue 125 00:06:15,389 --> 00:06:17,878 Grady Wulff : to go from strength to strength. So they've just opened 126 00:06:17,879 --> 00:06:19,919 Grady Wulff : their first store in China with a second one underway 127 00:06:19,920 --> 00:06:23,100 Grady Wulff : soon. And also in Vietnam. Now, everyone would think, " Oh, 128 00:06:23,100 --> 00:06:25,560 Grady Wulff : China, that's a pretty tough market to crack right now 129 00:06:25,560 --> 00:06:28,979 Grady Wulff : because of the decline in economic activity there." But given 130 00:06:29,040 --> 00:06:32,099 Grady Wulff : the nature of how cheap this is, they're doing really 131 00:06:32,099 --> 00:06:34,589 Grady Wulff : well there. Sales are up already in the region and 132 00:06:34,589 --> 00:06:36,510 Grady Wulff : their like for like sales in the second half have 133 00:06:36,510 --> 00:06:39,779 Grady Wulff : started on a really positive note across the globe. Now 134 00:06:39,779 --> 00:06:43,080 Grady Wulff : they've got a really down packed, compact rinse and repeat, 135 00:06:43,080 --> 00:06:46,409 Grady Wulff : kind of copy paste strategy of opening physical stores. And 136 00:06:46,410 --> 00:06:48,599 Grady Wulff : that's really faring well for them. And the good thing 137 00:06:48,599 --> 00:06:51,570 Grady Wulff : about this company is that they, with their rinse and 138 00:06:51,570 --> 00:06:54,209 Grady Wulff : repeat models, they buy the land or rent the land 139 00:06:54,209 --> 00:06:56,909 Grady Wulff : to put their shop in and obviously up and go. 140 00:06:57,240 --> 00:06:59,910 Grady Wulff : But with a company like this in bricks and mortar 141 00:06:59,910 --> 00:07:03,900 Grady Wulff : stores, they realize when the store is underperforming, they'll just 142 00:07:03,900 --> 00:07:05,610 Grady Wulff : close it down. They don't just let it sit there 143 00:07:05,610 --> 00:07:08,279 Grady Wulff : being a cost burden or like a cash burner, they 144 00:07:08,279 --> 00:07:11,160 Grady Wulff : shut it down. So with that in mind, it's a 145 00:07:11,160 --> 00:07:15,210 Grady Wulff : really strong strategic model for Lovisa. But moving forward, they 146 00:07:15,210 --> 00:07:18,150 Grady Wulff : also have a services division. So they capture an audience 147 00:07:18,150 --> 00:07:21,750 Grady Wulff : that previously or might not have wanted to even shop 148 00:07:21,750 --> 00:07:24,570 Grady Wulff : with them because at every physical store they have in 149 00:07:24,570 --> 00:07:27,779 Grady Wulff : the window, free piercing. And it's not actually free because 150 00:07:27,780 --> 00:07:30,539 Grady Wulff : you have to buy the earrings to go in your 151 00:07:31,019 --> 00:07:34,260 Grady Wulff : ears. So it's not free, but it's a really smart 152 00:07:34,260 --> 00:07:34,470 Grady Wulff : way to- 153 00:07:34,560 --> 00:07:37,080 Sean Aylmer: Sorry. You have in- depth knowledge on this store, Grady? 154 00:07:37,260 --> 00:07:40,259 Grady Wulff : Yes. Yes, I do because I'm a sucker and I 155 00:07:40,260 --> 00:07:41,699 Grady Wulff : buy a lot from Lovisa. 156 00:07:41,699 --> 00:07:44,040 Sean Aylmer: What about Accent? 157 00:07:44,580 --> 00:07:47,879 Grady Wulff : Accent Group is a really interesting one. So they really nailed 158 00:07:47,879 --> 00:07:50,760 Grady Wulff : the model of being at the forefront of fashion for 159 00:07:50,760 --> 00:07:54,120 Grady Wulff : the younger demographics. So they really specialize in sneakers through their 160 00:07:54,120 --> 00:07:58,860 Grady Wulff : Stylerunner store, and they're targeting the younger demographic. So we 161 00:07:58,860 --> 00:08:02,159 Grady Wulff : know with the younger demographic, they're not price sensitive. Also, 162 00:08:02,219 --> 00:08:05,760 Grady Wulff : they're not weathered down by different rising cost environment. 163 00:08:05,760 --> 00:08:06,630 Sean Aylmer: Their parents are. 164 00:08:06,870 --> 00:08:11,250 Grady Wulff : Yeah, their parents are, but not them. So they're working their first job and 165 00:08:11,250 --> 00:08:13,590 Grady Wulff : they're using their paycheck to buy the latest pair of 166 00:08:13,590 --> 00:08:16,440 Grady Wulff : sneakers, and they go buy another pair and another pair and 167 00:08:16,440 --> 00:08:19,440 Grady Wulff : another pair, and they're always shopping at the Accent Group. 168 00:08:19,440 --> 00:08:21,930 Grady Wulff : So it just goes to show that Accent Group is really 169 00:08:22,350 --> 00:08:25,169 Grady Wulff : part of that younger demographic, but they also cater for 170 00:08:25,890 --> 00:08:28,860 Grady Wulff : The Athlete's Foot. So they really benefit at the start 171 00:08:28,860 --> 00:08:31,230 Grady Wulff : of every year through the government vouchers for back to 172 00:08:31,230 --> 00:08:34,230 Grady Wulff : school shoes, because a lot of parents get these vouchers 173 00:08:34,230 --> 00:08:36,090 Grady Wulff : for back to school shoes and go to The Athlete's 174 00:08:36,090 --> 00:08:38,219 Grady Wulff : Foot to get their new pair of shoes. And then 175 00:08:38,219 --> 00:08:41,340 Grady Wulff : we know that they do really well for netball season, 176 00:08:41,340 --> 00:08:44,580 Grady Wulff : footy season, all the soccer seasons. So every kid's sporting 177 00:08:44,580 --> 00:08:46,950 Grady Wulff : season, Athlete's Foot is where you want to be and 178 00:08:46,950 --> 00:08:50,250 Grady Wulff : where a lot of consumers are shopping. They also have 179 00:08:50,250 --> 00:08:53,280 Grady Wulff : their own brand, Nude Lucy, which they started during COVID, 180 00:08:53,309 --> 00:08:56,100 Grady Wulff : and I'm not sure about you, but for me, during COVID, my 181 00:08:56,130 --> 00:08:59,520 Grady Wulff : only purchasing in retail was for activewear because who are 182 00:08:59,520 --> 00:09:02,730 Grady Wulff : we impressing? We are locked down. So they started this company 183 00:09:02,730 --> 00:09:07,078 Grady Wulff : called Nude Lucy, and it's athleisurewear, so it's the comfy, 184 00:09:08,130 --> 00:09:10,770 Grady Wulff : you can wear activewear to the cafe down the road 185 00:09:10,770 --> 00:09:12,929 Grady Wulff : to get your coffee, and everyone's kind of carried that 186 00:09:12,929 --> 00:09:15,929 Grady Wulff : through into the post pandemic era. And so this Nude 187 00:09:15,929 --> 00:09:20,010 Grady Wulff : Lucy brand is really dominating for them at the moment. 188 00:09:20,010 --> 00:09:22,380 Grady Wulff : So that's where a lot of their revenue, their margins 189 00:09:22,380 --> 00:09:25,439 Grady Wulff : are coming through. Now, their recent results, they were kind 190 00:09:25,440 --> 00:09:28,320 Grady Wulff : of lower than expected, but they did beat on margins. 191 00:09:28,320 --> 00:09:30,809 Grady Wulff : So margins is where you want to see growth at 192 00:09:30,809 --> 00:09:33,929 Grady Wulff : the moment in this high cost environment and Accent Group 193 00:09:33,929 --> 00:09:37,530 Grady Wulff : definitely beat on that measure. So we're expecting big things 194 00:09:37,530 --> 00:09:39,630 Grady Wulff : for this company over years to come. And I actually talked 195 00:09:39,630 --> 00:09:42,208 Grady Wulff : about it on the call today on Ausbiz's The Call, 196 00:09:42,420 --> 00:09:44,970 Grady Wulff : and both myself and Luke, the other analyst on the 197 00:09:44,970 --> 00:09:46,800 Grady Wulff : show, both had a buy rating on it. 198 00:09:47,219 --> 00:09:49,470 Sean Aylmer: So let's get into healthcare. You've got two healthcare stocks 199 00:09:49,770 --> 00:09:51,389 Sean Aylmer: at the other end, and sort of at different ends 200 00:09:51,389 --> 00:09:54,930 Sean Aylmer: of the spectrum. One's ResMed and the other one is Neuren, which is a pharmaceutical company. 201 00:09:55,440 --> 00:09:58,110 Grady Wulff : Absolutely. ResMed is one that a lot of investors and 202 00:09:58,110 --> 00:10:02,250 Grady Wulff : brokers alike have in their portfolio as a staple healthcare 203 00:10:02,250 --> 00:10:05,429 Grady Wulff : company. Now, the company kind of was sold off recently 204 00:10:05,429 --> 00:10:08,490 Grady Wulff : and kind of went through a really tough phase because 205 00:10:08,490 --> 00:10:11,939 Grady Wulff : everyone around the market and there was market noise that the 206 00:10:12,029 --> 00:10:15,120 Grady Wulff : release of weight loss drugs like Ozempic would decrease the 207 00:10:15,120 --> 00:10:18,809 Grady Wulff : need for sleep apnea products like ResMed. That's actually been 208 00:10:19,380 --> 00:10:22,290 Grady Wulff : quashed in this recent reporting season because the company did 209 00:10:22,290 --> 00:10:25,470 Grady Wulff : really well and they beat across most metrics, they beat 210 00:10:25,920 --> 00:10:29,699 Grady Wulff : all the broker expectations, and also their closest competitor, which 211 00:10:29,699 --> 00:10:31,920 Grady Wulff : is Phillips in the US, had to recall all their 212 00:10:31,920 --> 00:10:34,858 Grady Wulff : products. So they're kind of operating in a monopoly right now, 213 00:10:34,860 --> 00:10:36,929 Grady Wulff : and they're doing really, really well. So ResMed has a 214 00:10:36,929 --> 00:10:40,559 Grady Wulff : really good global strategy, and sleep apnea is not going 215 00:10:40,559 --> 00:10:43,230 Grady Wulff : anywhere. So ResMed is definitely at the forefront for that. 216 00:10:43,230 --> 00:10:43,231 Sean Aylmer: And Neuren. 217 00:10:43,231 --> 00:10:47,879 Grady Wulff : And Neuren, Neuren's one that unfortunately has been caught up in a 218 00:10:47,879 --> 00:10:51,450 Grady Wulff : short seller note recently where they said that their DAYBUE drug 219 00:10:51,450 --> 00:10:54,478 Grady Wulff : or the drugs called DAYBUE was a flunk. And actually 220 00:10:54,480 --> 00:10:57,360 Grady Wulff : it's not. It's proving to be really good. The company 221 00:10:57,360 --> 00:11:00,240 Grady Wulff : released their results and their net sales in the US 222 00:11:00,240 --> 00:11:04,260 Grady Wulff : are 87 million. They're providing guidance for sales between 370 223 00:11:04,260 --> 00:11:09,120 Grady Wulff : to 420 million, and that's through their partner, Arcadia Pharmaceuticals. 224 00:11:09,120 --> 00:11:13,050 Grady Wulff : So the company is ... As a healthcare company, you can't 225 00:11:13,050 --> 00:11:16,259 Grady Wulff : get through FDA trials and get approval by the FDA 226 00:11:16,530 --> 00:11:19,710 Grady Wulff : if your drug is a flunk. So those short seller 227 00:11:19,710 --> 00:11:22,889 Grady Wulff : notes really spooked the market. But for Neuren, the growth 228 00:11:22,889 --> 00:11:25,890 Grady Wulff : trajectory, the fact that they're the only current provider of 229 00:11:25,890 --> 00:11:28,110 Grady Wulff : a drug or producer of a drug that treats Rett 230 00:11:28,110 --> 00:11:31,319 Grady Wulff : syndrome, which is the neurodevelopmental disorder, and they have a 231 00:11:31,320 --> 00:11:35,130 Grady Wulff : second drug in the works for four neurodevelopmental disorders, it 232 00:11:35,130 --> 00:11:37,588 Grady Wulff : goes to show the company's onto something pretty special. So 233 00:11:37,619 --> 00:11:40,769 Grady Wulff : Neuren, it's down at the moment, but it's a serious 234 00:11:40,770 --> 00:11:40,949 Grady Wulff : buy opportunity. 235 00:11:40,949 --> 00:11:44,968 Sean Aylmer: Okay, good one. One final one. Number seven. Many of 236 00:11:44,970 --> 00:11:47,880 Sean Aylmer: us probably don't know much about this one: Alliance Aviation Services. 237 00:11:48,660 --> 00:11:51,899 Grady Wulff : Alliance Aviation Services is a really interesting one. Now, Qantas 238 00:11:51,900 --> 00:11:54,569 Grady Wulff : went pretty hard at takeover offer with this company, and the 239 00:11:54,570 --> 00:11:58,350 Grady Wulff : ACCC have blocked it because as we know, there's only 240 00:11:58,350 --> 00:12:01,740 Grady Wulff : two, three providers in the market or two providers because 241 00:12:01,740 --> 00:12:05,098 Grady Wulff : Jetstar is owned by Qantas. So if Qantas wiped out 242 00:12:05,130 --> 00:12:07,530 Grady Wulff : Alliance as well, that means that they would be absolute 243 00:12:07,530 --> 00:12:11,820 Grady Wulff : monopoly. So the ACCC said no. Alliance Aviation Services, they 244 00:12:11,820 --> 00:12:14,610 Grady Wulff : service a lot of the mining companies for their FIFO 245 00:12:14,910 --> 00:12:17,429 Grady Wulff : employees going out to all the different mines, especially in 246 00:12:17,429 --> 00:12:20,400 Grady Wulff : Western Australia. I went on one of the Alliance Airlines 247 00:12:20,400 --> 00:12:23,460 Grady Wulff : planes and it was awesome. And so this company, their 248 00:12:23,460 --> 00:12:26,399 Grady Wulff : regional presence is really high. They did really well in 249 00:12:26,400 --> 00:12:29,189 Grady Wulff : the recent reporting season. They beat across all metrics as 250 00:12:29,190 --> 00:12:33,389 Grady Wulff : well, and they've got a really good second half. They've kind 251 00:12:33,389 --> 00:12:35,789 Grady Wulff : of waited to the second half through their contracts and 252 00:12:35,789 --> 00:12:39,900 Grady Wulff : mining services. So they've won some big recent contracts and 253 00:12:39,900 --> 00:12:43,468 Grady Wulff : they're growing more and more with their recurring revenue because 254 00:12:43,710 --> 00:12:46,530 Grady Wulff : obviously they signed the contracts to facilitate the transport of 255 00:12:46,530 --> 00:12:49,740 Grady Wulff : all these FIFO workers. And so they signed 2, 3, 256 00:12:49,740 --> 00:12:52,229 Grady Wulff : 5 year deals. And so that just really shows that 257 00:12:52,230 --> 00:12:55,320 Grady Wulff : their growth runway is really good, excuse the pun, the 258 00:12:55,320 --> 00:12:59,429 Grady Wulff : runway, but the company, yeah. So they're dominating the regional 259 00:12:59,429 --> 00:13:02,910 Grady Wulff : space. And QantasLink obviously can't compete with them because, and 260 00:13:02,910 --> 00:13:05,340 Grady Wulff : that's why Qantas wanted to take them over. So everyone's 261 00:13:05,340 --> 00:13:09,630 Grady Wulff : really liking that. They've got really high prices as well. 262 00:13:09,630 --> 00:13:13,378 Grady Wulff : So they set the prices, they're a price setter. So 263 00:13:14,190 --> 00:13:18,988 Grady Wulff : with that in mind, looking forward, brokers, investors, everyone are 264 00:13:18,990 --> 00:13:21,900 Grady Wulff : really liking the look of Alliance Aviation Services. 265 00:13:22,410 --> 00:13:24,599 Sean Aylmer: Plenty of great ideas there, Grady. Thank you very much 266 00:13:24,599 --> 00:13:25,800 Sean Aylmer: for talking to FEAR & GREED. 267 00:13:26,400 --> 00:13:28,078 Grady Wulff : No worries. Thank you so much for having me. 268 00:13:28,799 --> 00:13:31,830 Sean Aylmer: That was Bell Direct market analyst, Grady Wulff. This is 269 00:13:31,830 --> 00:13:34,890 Sean Aylmer: the FEAR & GREED Business Interview. Remember, this is general information 270 00:13:34,890 --> 00:13:37,710 Sean Aylmer: only, and you should always seek professional advice before making 271 00:13:37,710 --> 00:13:40,379 Sean Aylmer: investment decisions. Join us every morning for the full episode 272 00:13:40,380 --> 00:13:44,040 Sean Aylmer: of FEAR & GREED, Australia's best business podcast. I'm Sean Aylmer. 273 00:13:44,309 --> 00:13:44,729 Sean Aylmer: Enjoy your day.