1 00:00:03,120 --> 00:00:05,729 Sean Aylmer: Welcome to the Fear and Greed daily interview. I'm Sean 2 00:00:05,730 --> 00:00:09,240 Sean Aylmer: Aylmer. It's been fascinating to watch the tech sector over 3 00:00:09,240 --> 00:00:12,360 Sean Aylmer: the past year. Tech stocks were some of the best performing 4 00:00:12,360 --> 00:00:15,239 Sean Aylmer: during the pandemic as our entire lives from work to 5 00:00:15,240 --> 00:00:19,710 Sean Aylmer: shopping shifted online and there were some standout performers. Afterpay 6 00:00:19,710 --> 00:00:22,860 Sean Aylmer: had a remarkable year, so did Zip Co. Afterpay share 7 00:00:22,860 --> 00:00:26,250 Sean Aylmer: price was $ 12.44 in March last year, and it got 8 00:00:26,250 --> 00:00:30,000 Sean Aylmer: to almost $ 152 less than 12 months later, but it's 9 00:00:30,000 --> 00:00:31,770 Sean Aylmer: come back a bit along with much of the tech 10 00:00:31,770 --> 00:00:34,709 Sean Aylmer: sector. Part of the shift from the pandemic era stocks 11 00:00:34,709 --> 00:00:37,530 Sean Aylmer: to cyclical stocks has been going on in recent months. 12 00:00:37,950 --> 00:00:40,080 Sean Aylmer: I wanted today to take a look at the technology 13 00:00:40,080 --> 00:00:43,470 Sean Aylmer: sector, where it's heading and where the opportunities might lie. 14 00:00:43,769 --> 00:00:47,519 Sean Aylmer: Elise Kennedy is vice president of Equity Research at Jarden. Elise, welcome to 15 00:00:47,519 --> 00:00:48,089 Sean Aylmer: Fear and Greed. 16 00:00:48,210 --> 00:00:48,991 Elise Kennedy: Thanks for having me on the show, Sean. 17 00:00:48,991 --> 00:00:51,569 Sean Aylmer: Before we look at where we're now, what do you 18 00:00:51,570 --> 00:00:53,939 Sean Aylmer: make of the Australian tech sector and how it handled 19 00:00:53,940 --> 00:00:54,630 Sean Aylmer: the pandemic? 20 00:00:54,930 --> 00:00:57,870 Elise Kennedy: We actually think that this pandemic highlighted the value that 21 00:00:57,870 --> 00:01:00,120 Elise Kennedy: you have in those tech stocks because you saw, as 22 00:01:00,120 --> 00:01:03,929 Elise Kennedy: you mentioned, this flock to online platforms. So we think 23 00:01:03,929 --> 00:01:06,839 Elise Kennedy: about these tech stocks along what we call an S 24 00:01:07,020 --> 00:01:10,679 Elise Kennedy: adoption curve. So effectively, it's an area where you get 25 00:01:10,680 --> 00:01:15,060 Elise Kennedy: these early innovators that start to try out the software, then 26 00:01:15,060 --> 00:01:17,010 Elise Kennedy: you start to get these early adopters. People are a 27 00:01:17,010 --> 00:01:19,260 Elise Kennedy: little bit keen to try it but they haven't really 28 00:01:19,260 --> 00:01:22,440 Elise Kennedy: fully tested out, is this really mainstream? You really get 29 00:01:22,440 --> 00:01:24,959 Elise Kennedy: that hockey stick, which is the S up in the 30 00:01:24,959 --> 00:01:27,449 Elise Kennedy: curve, and where you get the value when you get 31 00:01:27,450 --> 00:01:30,690 Elise Kennedy: the late majority, and that's when you go this product and 32 00:01:30,779 --> 00:01:34,920 Elise Kennedy: this technology is reaching more of your mass audience. So 33 00:01:34,920 --> 00:01:38,640 Elise Kennedy: with the pandemic, it helped bring forward that adoption curve 34 00:01:39,300 --> 00:01:41,609 Elise Kennedy: because as you pointed out, you've got all these online 35 00:01:41,610 --> 00:01:45,690 Elise Kennedy: tech products that effectively you had to start thinking about. 36 00:01:45,690 --> 00:01:48,839 Elise Kennedy: And online shopping is another example in there. You saw Zoom. 37 00:01:48,870 --> 00:01:52,380 Elise Kennedy: Again, that's another example. And even closer to home, Xero, 38 00:01:52,410 --> 00:01:55,680 Elise Kennedy: that accounting software stock. That's had a run again because of 39 00:01:55,680 --> 00:02:00,540 Elise Kennedy: this adoption of new technology that's online. And we also 40 00:02:00,540 --> 00:02:03,270 Elise Kennedy: saw during that period the ability of some of these 41 00:02:03,270 --> 00:02:06,089 Elise Kennedy: tech stocks that never make money. They show that they 42 00:02:06,090 --> 00:02:08,880 Elise Kennedy: actually can scale back their investment when they need to. 43 00:02:09,419 --> 00:02:11,700 Sean Aylmer: Okay. So what do you mean by that? Because one 44 00:02:11,700 --> 00:02:15,150 Sean Aylmer: of the great dilemmas for people investing in tech stocks 45 00:02:15,210 --> 00:02:16,560 Sean Aylmer: is that many of them don't make money. 46 00:02:16,889 --> 00:02:20,040 Elise Kennedy: Yes, that's exactly the challenge, is it's not your traditional 47 00:02:20,040 --> 00:02:23,339 Elise Kennedy: price to earnings multiple metrics. So what I mean by 48 00:02:23,340 --> 00:02:27,030 Elise Kennedy: that is, for example, we saw Xero. They've always been 49 00:02:27,030 --> 00:02:30,389 Elise Kennedy: able to generate very good margins in Australia and New 50 00:02:30,389 --> 00:02:34,020 Elise Kennedy: Zealand of 62%. And if you go and you looked 51 00:02:34,020 --> 00:02:36,029 Elise Kennedy: at their international markets, they were loss making. So you 52 00:02:36,030 --> 00:02:39,239 Elise Kennedy: put those together and their margins weren't growing. But we 53 00:02:39,240 --> 00:02:42,570 Elise Kennedy: saw last year, they weren't sure how businesses were going 54 00:02:42,570 --> 00:02:47,280 Elise Kennedy: to end up through this economic cycle because they're an accounting software stock 55 00:02:47,610 --> 00:02:50,340 Elise Kennedy: and they're levered mostly to SMEs, and you think those 56 00:02:50,340 --> 00:02:53,670 Elise Kennedy: were some of the companies that were hardest hit. And so 57 00:02:53,730 --> 00:02:56,849 Elise Kennedy: with that, effectively they pulled back their sales and marketing 58 00:02:56,940 --> 00:02:59,819 Elise Kennedy: but those customers stayed. So you thought, oh, actually you're 59 00:02:59,820 --> 00:03:02,700 Elise Kennedy: spending now to get the incremental customers, but the adoption 60 00:03:02,700 --> 00:03:05,880 Elise Kennedy: curve is working for you that in the long run, 61 00:03:05,880 --> 00:03:07,950 Elise Kennedy: you should be able to make money because that's the 62 00:03:07,950 --> 00:03:12,179 Elise Kennedy: whole philosophy, is that effectively you're spending now but when 63 00:03:12,179 --> 00:03:15,089 Elise Kennedy: you finish your market growth, which is your revenue side, 64 00:03:15,508 --> 00:03:19,290 Elise Kennedy: then eventually you should be able to get that profitability 65 00:03:19,410 --> 00:03:21,420 Elise Kennedy: because those numbers start to drop out. 66 00:03:21,630 --> 00:03:24,450 Sean Aylmer: A couple of things there, an interesting example, because its 67 00:03:24,450 --> 00:03:28,020 Sean Aylmer: share price did incredibly well during the pandemic. And I 68 00:03:28,020 --> 00:03:29,820 Sean Aylmer: suppose a lot of us just thought because it was 69 00:03:29,820 --> 00:03:32,309 Sean Aylmer: a tech stock and people were going online and cloud 70 00:03:32,309 --> 00:03:35,940 Sean Aylmer: accounting software was a good way to go, but in 71 00:03:35,940 --> 00:03:37,860 Sean Aylmer: a sense, there's a far bigger dimension to that, and 72 00:03:37,860 --> 00:03:41,490 Sean Aylmer: it's actually management of the company. Management made sensible decisions 73 00:03:41,580 --> 00:03:43,740 Sean Aylmer: in the moment which helped the bottom line. 74 00:03:43,950 --> 00:03:46,170 Elise Kennedy: Yeah, that's exactly what happened, and we saw that again 75 00:03:46,170 --> 00:03:49,080 Elise Kennedy: across a few other stocks. So management make a huge 76 00:03:49,080 --> 00:03:52,559 Elise Kennedy: difference in their capability and knowing when to invest and 77 00:03:52,559 --> 00:03:54,870 Elise Kennedy: when to pull back. So with the uncertainty in the 78 00:03:54,870 --> 00:03:59,520 Elise Kennedy: market that we saw last year, the company made that 79 00:03:59,730 --> 00:04:02,250 Elise Kennedy: decision, let's pull back our spend. Whereas, now we're moving 80 00:04:02,250 --> 00:04:04,920 Elise Kennedy: more into a recovery, we saw in the last half 81 00:04:04,920 --> 00:04:08,609 Elise Kennedy: result that they said, " Hey, here's an option for us 82 00:04:08,610 --> 00:04:12,000 Elise Kennedy: now to actually go and reinvest and to drive the 83 00:04:12,000 --> 00:04:14,010 Elise Kennedy: uptake." So that's where we think that these tech stocks 84 00:04:14,010 --> 00:04:16,919 Elise Kennedy: still have some room to continue to run because now 85 00:04:16,920 --> 00:04:19,320 Elise Kennedy: we're seeing the adoption curve and we're seeing the spend 86 00:04:19,410 --> 00:04:21,330 Elise Kennedy: now that we're starting to move out of that pandemic. 87 00:04:21,719 --> 00:04:23,729 Sean Aylmer: Elise, stay with me. We'll be back in a minute. 88 00:04:28,469 --> 00:04:31,049 Sean Aylmer: My guest this morning is Elise Kennedy, vice president, Equity 89 00:04:31,049 --> 00:04:35,400 Sean Aylmer: Research at Jarden. So many analysts will talk about the fact 90 00:04:35,400 --> 00:04:38,789 Sean Aylmer: that the post pandemic stocks are not tech stocks. They're 91 00:04:38,940 --> 00:04:41,370 Sean Aylmer: what you would call value or cyclical stocks that tend 92 00:04:41,370 --> 00:04:45,120 Sean Aylmer: to do better when the economy improves. But you do 93 00:04:45,120 --> 00:04:46,709 Sean Aylmer: think there's still a way to run for some of 94 00:04:47,100 --> 00:04:48,029 Sean Aylmer: these tech stocks. 95 00:04:48,450 --> 00:04:53,190 Elise Kennedy: Yeah, I think that's an interesting discussion because effectively, a 96 00:04:53,190 --> 00:04:55,350 Elise Kennedy: lot of those value stocks have had a run again 97 00:04:55,560 --> 00:04:58,050 Elise Kennedy: because they're levered to rising yield rates. But you think 98 00:04:58,050 --> 00:05:00,300 Elise Kennedy: about a lot of the stimulus that's in the environment, 99 00:05:00,300 --> 00:05:02,549 Elise Kennedy: a lot of the debt that's in the economy, it's 100 00:05:02,549 --> 00:05:05,248 Elise Kennedy: likely that you will see those rates lower for longer. 101 00:05:05,430 --> 00:05:07,980 Elise Kennedy: That still should drive the whole equities markets and some 102 00:05:07,980 --> 00:05:11,130 Elise Kennedy: of those higher growth companies, which yes, we do foresee 103 00:05:11,130 --> 00:05:13,830 Elise Kennedy: that these tech stocks still have more room to run 104 00:05:13,830 --> 00:05:19,650 Elise Kennedy: because once they saw the structural shift towards online last 105 00:05:19,650 --> 00:05:22,740 Elise Kennedy: year, now you really start to monetize the existing customers 106 00:05:22,740 --> 00:05:25,500 Elise Kennedy: that you have. And a lot of those people that 107 00:05:25,560 --> 00:05:28,770 Elise Kennedy: perhaps didn't switch, those SMEs, perhaps they didn't have the 108 00:05:28,770 --> 00:05:32,070 Elise Kennedy: capacity. Now they realize the value that you've still got 109 00:05:32,070 --> 00:05:34,829 Elise Kennedy: that leg of growth to start to come through. And there are 110 00:05:34,830 --> 00:05:38,909 Elise Kennedy: other stocks like WiseTech, which is a volume gain, and 111 00:05:38,910 --> 00:05:41,459 Elise Kennedy: that's how their revenue model works. So you've got this 112 00:05:41,459 --> 00:05:44,130 Elise Kennedy: structural shift. Now you're getting volumes come back. 113 00:05:44,430 --> 00:05:46,110 Sean Aylmer: Just explain WiseTech. 114 00:05:46,110 --> 00:05:49,890 Elise Kennedy: Certainly. So what WiseTech does, it's a logistics freight forwarding software. 115 00:05:50,520 --> 00:05:54,238 Elise Kennedy: So every time you move a parcel from your DHL, 116 00:05:54,240 --> 00:05:55,740 Elise Kennedy: you send it to them, they've got to move it 117 00:05:55,740 --> 00:05:58,320 Elise Kennedy: from the warehouse to the port to the customs, to 118 00:05:58,320 --> 00:06:00,329 Elise Kennedy: the customs on the other side and whether it's ship 119 00:06:00,330 --> 00:06:03,510 Elise Kennedy: or air. Each one of those is a module in 120 00:06:03,510 --> 00:06:06,060 Elise Kennedy: their software, and the company takes a clip of the 121 00:06:06,060 --> 00:06:10,500 Elise Kennedy: ticket of each one of those transactions in there. So 122 00:06:10,500 --> 00:06:13,979 Elise Kennedy: again, you've got leverage to volumes, even though you're getting 123 00:06:13,980 --> 00:06:16,738 Elise Kennedy: more customers in that time moving from they were doing 124 00:06:16,740 --> 00:06:19,349 Elise Kennedy: it more on Excel or on a local piece of 125 00:06:19,380 --> 00:06:22,530 Elise Kennedy: software, more of them now have shifted to the cloud, 126 00:06:22,860 --> 00:06:25,500 Elise Kennedy: plus then now volumes are picking up. So that's where 127 00:06:25,500 --> 00:06:27,330 Elise Kennedy: we go back to your question, is there more to 128 00:06:27,330 --> 00:06:28,740 Elise Kennedy: go? Yeah, we think there is. 129 00:06:28,770 --> 00:06:30,960 Sean Aylmer: Okay. Altium is another one you cover. 130 00:06:31,380 --> 00:06:34,349 Elise Kennedy: Yeah, look. Altium, it's a good company. The challenge that 131 00:06:34,350 --> 00:06:37,350 Elise Kennedy: we have is near term earnings risk. Now they're not 132 00:06:37,380 --> 00:06:40,409 Elise Kennedy: your pure play SaaS tech stock, and that's something very 133 00:06:40,410 --> 00:06:43,500 Elise Kennedy: important. In all these tech stocks having a run, they're 134 00:06:43,500 --> 00:06:46,710 Elise Kennedy: not all equal. So one way to think about Altium 135 00:06:46,710 --> 00:06:49,109 Elise Kennedy: is what they do is printed circuit boards, so that's 136 00:06:49,110 --> 00:06:51,960 Elise Kennedy: like a small chip that's inside all of your electronic 137 00:06:52,230 --> 00:06:54,960 Elise Kennedy: devices. They don't print the chips themselves. They create the 138 00:06:54,960 --> 00:06:59,099 Elise Kennedy: software for the people that create those. So a challenge 139 00:06:59,100 --> 00:07:01,230 Elise Kennedy: with them is a lot of their customers, they pay 140 00:07:01,230 --> 00:07:03,599 Elise Kennedy: for the license once a year, three times a year, 141 00:07:03,599 --> 00:07:05,938 Elise Kennedy: but the bulk of them buy the license and then 142 00:07:05,940 --> 00:07:08,880 Elise Kennedy: they don't have to necessarily renew it. So with that 143 00:07:08,940 --> 00:07:11,939 Elise Kennedy: in mind, when times got tough, they saw a lot 144 00:07:11,969 --> 00:07:16,050 Elise Kennedy: of pullback in their customers, and now their recovery process 145 00:07:16,050 --> 00:07:17,610 Elise Kennedy: we just think is probably going to be a bit 146 00:07:17,610 --> 00:07:20,250 Elise Kennedy: slower than what the company has foreseen that there's risk 147 00:07:20,460 --> 00:07:23,670 Elise Kennedy: to earnings in this coming result. And then also, when 148 00:07:23,670 --> 00:07:27,029 Elise Kennedy: we think about your addressable market, they've got a lot 149 00:07:27,030 --> 00:07:33,000 Elise Kennedy: smaller addressable market of US$1.2 billion, whereas you look at 150 00:07:33,330 --> 00:07:36,900 Elise Kennedy: Xero, for example, they've got $ 76 billion addressable market. WiseTech 151 00:07:36,900 --> 00:07:40,020 Elise Kennedy: has got about US$ 15 billion. So that's where you just think, 152 00:07:40,020 --> 00:07:42,000 Elise Kennedy: hey, should I be paying for the same price for 153 00:07:42,000 --> 00:07:43,500 Elise Kennedy: this? Probably not. 154 00:07:43,980 --> 00:07:46,559 Sean Aylmer: Okay. So when we think of these tech stocks, the 155 00:07:46,680 --> 00:07:49,469 Sean Aylmer: ASX introduced, I think it was early last year, the 156 00:07:49,469 --> 00:07:51,810 Sean Aylmer: All Tech Index. Why are we hearing so much more 157 00:07:51,810 --> 00:07:54,450 Sean Aylmer: about them or is that All Tech Index making a 158 00:07:54,450 --> 00:07:55,950 Sean Aylmer: difference for the S&P 200? 159 00:07:56,340 --> 00:07:58,679 Elise Kennedy: Well, tech stocks have got a lot more importance in 160 00:07:58,679 --> 00:08:00,630 Elise Kennedy: the sector as a whole in recent years. You think 161 00:08:00,630 --> 00:08:04,320 Elise Kennedy: there's now eight tech stocks in the ASX 100 versus two 162 00:08:04,320 --> 00:08:07,020 Elise Kennedy: just five years ago. The growing fast two is the other 163 00:08:07,020 --> 00:08:08,880 Elise Kennedy: point. So over the last 12 months, you look at 164 00:08:08,880 --> 00:08:14,070 Elise Kennedy: the tech sector that you mentioned, it's up 78% versus the ASX 200, 165 00:08:14,070 --> 00:08:16,710 Elise Kennedy: that's up 28%. So why is it playing more of 166 00:08:16,710 --> 00:08:19,290 Elise Kennedy: an importance? It's a factor of these companies are fast- 167 00:08:19,290 --> 00:08:24,239 Elise Kennedy: growing, and the pandemic again highlighted that this is accelerating 168 00:08:24,240 --> 00:08:27,150 Elise Kennedy: the structural shifts. These are real businesses with real products 169 00:08:27,150 --> 00:08:30,750 Elise Kennedy: that companies and individuals use that as a result, they're 170 00:08:30,750 --> 00:08:33,480 Elise Kennedy: becoming a more meaningful part of the sector and a 171 00:08:33,480 --> 00:08:35,639 Elise Kennedy: part of the investment portfolio decision. 172 00:08:36,179 --> 00:08:39,299 Sean Aylmer: And do you think Australia can have a vibrant tech 173 00:08:39,299 --> 00:08:42,299 Sean Aylmer: sector? NASDAQ obviously is the leading one, but there are 174 00:08:42,299 --> 00:08:45,838 Sean Aylmer: countries like Israel and that have incredible tech sectors. Is Australia big 175 00:08:45,840 --> 00:08:48,420 Sean Aylmer: enough and broad enough and deep enough probably to have 176 00:08:48,420 --> 00:08:49,470 Sean Aylmer: a vibrant tech sector? 177 00:08:50,070 --> 00:08:52,468 Elise Kennedy: Yeah, it's funny that you say that. We have had 178 00:08:52,469 --> 00:08:56,460 Elise Kennedy: some fantastic businesses come out of Australia. You think about 179 00:08:56,460 --> 00:08:59,249 Elise Kennedy: those that are already listed. Xero came out of New 180 00:08:59,250 --> 00:09:03,390 Elise Kennedy: Zealand but it's our close peer. And then you've got 181 00:09:03,540 --> 00:09:07,890 Elise Kennedy: WiseTech. Again, Canvas, a private stock that probably won't list 182 00:09:07,890 --> 00:09:10,980 Elise Kennedy: in Australia, but at the same time it's an Australian 183 00:09:10,980 --> 00:09:14,580 Elise Kennedy: business. And what's interesting about the Australian versus going in 184 00:09:14,580 --> 00:09:16,920 Elise Kennedy: the US, there's a bit of scarcity value because we 185 00:09:16,920 --> 00:09:19,770 Elise Kennedy: do have these high growth names and they're limited at 186 00:09:19,770 --> 00:09:24,240 Elise Kennedy: this point, but we do think that they're growing. There's real 187 00:09:24,240 --> 00:09:28,559 Elise Kennedy: businesses. There's evidence of large global competitors that yes, definitely, 188 00:09:28,559 --> 00:09:32,099 Elise Kennedy: I think we're a formidable player and will continue to 189 00:09:32,099 --> 00:09:35,069 Elise Kennedy: see tech playing more of a meaningful role in our 190 00:09:35,070 --> 00:09:36,809 Elise Kennedy: overall index in the future. 191 00:09:37,050 --> 00:09:43,740 Sean Aylmer: We'll be back with more in a moment. I'm talking to 192 00:09:43,740 --> 00:09:47,880 Sean Aylmer: Jarden's vice president, Equity Research, Elise Kennedy. You've touched on 193 00:09:47,880 --> 00:09:50,880 Sean Aylmer: a diversity of tech stocks. You also have the buy 194 00:09:50,880 --> 00:09:52,799 Sean Aylmer: now pay later groups, which I always think of as 195 00:09:52,799 --> 00:09:55,589 Sean Aylmer: tech stocks. You have gaming groups like PointsBet, which I 196 00:09:55,589 --> 00:09:58,050 Sean Aylmer: think of as tech stocks. Am I right in doing that 197 00:09:58,050 --> 00:10:02,370 Sean Aylmer: or should I be more focused on the pure technology players? 198 00:10:02,820 --> 00:10:05,459 Elise Kennedy: I think you're absolutely right. There's an element of tech 199 00:10:05,460 --> 00:10:07,740 Elise Kennedy: that plays a role in all of these stocks, and 200 00:10:07,740 --> 00:10:13,650 Elise Kennedy: sometimes you can look at stock that effectively doesn't look 201 00:10:13,830 --> 00:10:15,840 Elise Kennedy: as though it's tech. But if you see an element 202 00:10:15,840 --> 00:10:17,790 Elise Kennedy: of high growth within there, and we saw that, for 203 00:10:17,790 --> 00:10:21,150 Elise Kennedy: example, as you mentioned with some of those wagering stocks, 204 00:10:21,389 --> 00:10:23,790 Elise Kennedy: you start to see the digitization of that and that's 205 00:10:23,790 --> 00:10:26,279 Elise Kennedy: a higher margin product. So yeah, I think it is 206 00:10:26,280 --> 00:10:30,059 Elise Kennedy: important to look across technology across all stocks. And even 207 00:10:30,119 --> 00:10:32,880 Elise Kennedy: AI, if you think about that in the role that 208 00:10:32,880 --> 00:10:35,070 Elise Kennedy: that's going to play in healthcare in the future. It's 209 00:10:35,070 --> 00:10:37,199 Elise Kennedy: not just is this a tech stock? It's a matter 210 00:10:37,200 --> 00:10:40,800 Elise Kennedy: of what role will artificial intelligence play in the future 211 00:10:40,800 --> 00:10:41,429 Elise Kennedy: for healthcare? 212 00:10:41,730 --> 00:10:43,590 Sean Aylmer: You must have a great job because not only do 213 00:10:43,590 --> 00:10:47,250 Sean Aylmer: you have to look at financial metrics, you actually have to envisage 214 00:10:47,340 --> 00:10:48,090 Sean Aylmer: the future. 215 00:10:48,420 --> 00:10:51,059 Elise Kennedy: It is a lot of fun. That's right. But exactly 216 00:10:51,059 --> 00:10:54,360 Elise Kennedy: as you described, it is being futuristic, thinking about what 217 00:10:54,360 --> 00:10:57,179 Elise Kennedy: am I using? What is trending in the environment? What's 218 00:10:57,179 --> 00:10:59,520 Elise Kennedy: happening in the startup land? And that is something that 219 00:10:59,520 --> 00:11:03,299 Elise Kennedy: we have started as part of our work here at Jarden, is 220 00:11:03,299 --> 00:11:07,170 Elise Kennedy: about pushing in there about early stage and what role 221 00:11:07,170 --> 00:11:09,360 Elise Kennedy: do those businesses play because a lot of those smaller 222 00:11:09,360 --> 00:11:11,848 Elise Kennedy: businesses that we don't know of today on the market 223 00:11:11,850 --> 00:11:15,059 Elise Kennedy: are likely our future disruptors. So it's important to really 224 00:11:15,059 --> 00:11:19,049 Elise Kennedy: know what's happening in that private VC space because they 225 00:11:19,049 --> 00:11:21,149 Elise Kennedy: might change the landscape as it is today. 226 00:11:21,660 --> 00:11:25,170 Sean Aylmer: Are there any particular sectors or areas that you think 227 00:11:25,800 --> 00:11:28,800 Sean Aylmer: are ripe for technology startups, ESG, for example, or energy or things like that? 228 00:11:32,490 --> 00:11:34,620 Elise Kennedy: Yeah, there's a lot that are happening in that space at 229 00:11:34,620 --> 00:11:37,890 Elise Kennedy: the moment around the ESG focus. I saw a business 230 00:11:38,130 --> 00:11:43,409 Elise Kennedy: recently where you go shopping and you get your rewards 231 00:11:43,409 --> 00:11:47,580 Elise Kennedy: paid, your loyalty points into your superannuation, so trying to bridge that 232 00:11:47,580 --> 00:11:52,770 Elise Kennedy: gap, particularly for females in superannuation. So yes, there's definitely 233 00:11:52,770 --> 00:11:57,780 Elise Kennedy: ways that's smart, that's a unique way to solve a 234 00:11:57,780 --> 00:12:01,260 Elise Kennedy: real world problem using your tech platform there. So definitely, 235 00:12:01,260 --> 00:12:04,590 Elise Kennedy: I think those are one area. Healthcare, as I mentioned, 236 00:12:04,590 --> 00:12:06,660 Elise Kennedy: I think there's a lot to be done in there 237 00:12:06,720 --> 00:12:09,300 Elise Kennedy: and automating it. Same even in the retail space. They 238 00:12:09,300 --> 00:12:13,858 Elise Kennedy: really haven't fully captured the potential like we see overseas 239 00:12:14,160 --> 00:12:16,679 Elise Kennedy: when it comes to the distribution and the last mile 240 00:12:16,679 --> 00:12:18,839 Elise Kennedy: and the technology that they can get in there to 241 00:12:18,870 --> 00:12:21,838 Elise Kennedy: get it right to your home. You talk about drones 242 00:12:21,840 --> 00:12:25,230 Elise Kennedy: one day. It sounds farfetched, but supposedly there's testing going 243 00:12:25,230 --> 00:12:27,840 Elise Kennedy: on. One day, that might just be how we get 244 00:12:27,840 --> 00:12:30,270 Elise Kennedy: our deliveries and one day not too far in the 245 00:12:30,270 --> 00:12:31,110 Elise Kennedy: distant future. 246 00:12:31,320 --> 00:12:32,968 Sean Aylmer: Elise, thanks for talking to Fear and Greed. 247 00:12:33,150 --> 00:12:33,900 Elise Kennedy: Thank you, Sean. 248 00:12:34,199 --> 00:12:36,959 Sean Aylmer: That was Elise Kennedy, vice president, Equity Research at Jarden.