1 00:00:03,430 --> 00:00:05,990 Sean Aylmer: Welcome to the Fear and Greed daily interview, I'm Sean 2 00:00:05,990 --> 00:00:09,190 Sean Aylmer: Aylmer. Share markets have certainly had a volatile start to 3 00:00:09,190 --> 00:00:12,570 Sean Aylmer: 2022, and a lot of the movement has come in 4 00:00:12,570 --> 00:00:15,360 Sean Aylmer: tech stocks. I wanted to find out today what the outlook 5 00:00:15,430 --> 00:00:17,950 Sean Aylmer: is for the sector in the coming months. Elise Kennedy is 6 00:00:18,239 --> 00:00:21,500 Sean Aylmer: Vice President of Equity Research at Jarden. Elise, welcome back to 7 00:00:21,500 --> 00:00:22,100 Sean Aylmer: Fear and Greed. 8 00:00:22,380 --> 00:00:23,550 Elise Kennedy: Thanks for having me again. 9 00:00:23,960 --> 00:00:26,650 Sean Aylmer: What a time to be following tech stocks, they've been hammered. 10 00:00:27,810 --> 00:00:30,490 Elise Kennedy: It certainly has been an interesting start and an interesting 11 00:00:30,490 --> 00:00:32,180 Elise Kennedy: end to last year too. 12 00:00:32,580 --> 00:00:35,180 Sean Aylmer: Yeah. I want to talk about the Australian stock, but 13 00:00:35,370 --> 00:00:38,930 Sean Aylmer: let's just go to the US first. Some of the really big 14 00:00:38,930 --> 00:00:43,350 Sean Aylmer: names, Apple, Microsoft, Netflix, they really have lost a lot 15 00:00:43,350 --> 00:00:44,310 Sean Aylmer: of ground. Why? 16 00:00:44,830 --> 00:00:47,300 Elise Kennedy: Look, the reason that we look at is around the 17 00:00:47,300 --> 00:00:50,110 Elise Kennedy: rate hikes and the moves and the sentiment, not even 18 00:00:50,110 --> 00:00:52,050 Elise Kennedy: the actual rate hikes. So you might have heard these 19 00:00:52,050 --> 00:00:56,020 Elise Kennedy: terms, hawkish, meaning more advocate of a monetary policy that 20 00:00:56,020 --> 00:00:59,030 Elise Kennedy: raises rights or more of a dovish stance, which is 21 00:00:59,340 --> 00:01:02,620 Elise Kennedy: low interest rates right now. They're talking more hawkish. So 22 00:01:02,620 --> 00:01:06,340 Elise Kennedy: why this matters and how this flows through to why 23 00:01:06,340 --> 00:01:08,910 Elise Kennedy: you're seeing these tech socks, especially in the US sell 24 00:01:08,910 --> 00:01:11,229 Elise Kennedy: off, has got to do with how it impacts your 25 00:01:11,230 --> 00:01:14,900 Elise Kennedy: valuation. So I won't get too technical. I'll hold off 26 00:01:14,900 --> 00:01:17,500 Elise Kennedy: doing that. But essentially in short, the way that you 27 00:01:17,500 --> 00:01:20,030 Elise Kennedy: try and price a share price has to do with 28 00:01:20,030 --> 00:01:23,250 Elise Kennedy: this discounted cash flow method or other free cash flow 29 00:01:23,250 --> 00:01:26,789 Elise Kennedy: methods that you time (inaudible) money using interest rates and the higher that rate 30 00:01:28,790 --> 00:01:31,530 Elise Kennedy: is the lower the valuation. So as you start to 31 00:01:31,530 --> 00:01:35,350 Elise Kennedy: see interest rates go up all else equal, it means that a 32 00:01:35,350 --> 00:01:38,350 Elise Kennedy: lot of those valuations are going to start to fall. 33 00:01:38,440 --> 00:01:41,870 Elise Kennedy: Especially those tech stocks where a lot of that valuation 34 00:01:42,120 --> 00:01:46,010 Elise Kennedy: is laid away, versus those that might be making some profits. 35 00:01:46,350 --> 00:01:49,970 Sean Aylmer: Okay. So I kind of get that, that sort of future expectations of 36 00:01:49,970 --> 00:01:52,820 Sean Aylmer: earnings relies on a discount rate, which is an interest 37 00:01:52,820 --> 00:01:55,980 Sean Aylmer: rate. What about the whole concept that the last two 38 00:01:55,980 --> 00:01:59,460 Sean Aylmer: years we've spent so much money on technology, consumers have, 39 00:01:59,890 --> 00:02:03,000 Sean Aylmer: that perhaps that has peaked it'll still grow, right? But the rate 40 00:02:03,580 --> 00:02:06,410 Sean Aylmer: has peaked simply because we'll start going out to restaurants 41 00:02:06,410 --> 00:02:07,060 Sean Aylmer: and doing other things. 42 00:02:07,870 --> 00:02:10,579 Elise Kennedy: Look, I think there's some stocks that perhaps yes, were 43 00:02:10,580 --> 00:02:14,090 Elise Kennedy: inflated take Zoom for a point in case on the... 44 00:02:14,740 --> 00:02:17,170 Elise Kennedy: Has it been oversold though? And are we still using 45 00:02:17,200 --> 00:02:20,610 Elise Kennedy: Zoom today? I think that's yes. So some of them, 46 00:02:20,610 --> 00:02:23,060 Elise Kennedy: it may have pulled back too much, but there are, if 47 00:02:23,060 --> 00:02:26,040 Elise Kennedy: you think about it, some of the things that have accelerated 48 00:02:26,040 --> 00:02:29,440 Elise Kennedy: the adoption curve, which aren't necessarily going to stop, just 49 00:02:29,440 --> 00:02:31,470 Elise Kennedy: because you're going to a restaurant. That's like saying, are 50 00:02:31,470 --> 00:02:33,340 Elise Kennedy: you using a mobile phone? And just because you go 51 00:02:33,340 --> 00:02:35,459 Elise Kennedy: to a restaurant, oh no, we're going to take back 52 00:02:35,460 --> 00:02:38,490 Elise Kennedy: that adoption of the technology. So I think in some 53 00:02:38,490 --> 00:02:41,860 Elise Kennedy: cases that's the key point is, recognizing which of those 54 00:02:41,860 --> 00:02:46,419 Elise Kennedy: stocks out there are discounted right now and have fallen due 55 00:02:46,750 --> 00:02:50,669 Elise Kennedy: to a change in the new term heightened demand versus 56 00:02:50,669 --> 00:02:53,209 Elise Kennedy: those that are still actually going to see that demand 57 00:02:53,210 --> 00:02:55,330 Elise Kennedy: even as the economy starts to reopen. 58 00:02:55,540 --> 00:02:59,630 Sean Aylmer: Okay. So how closely does the local tech sector on 59 00:02:59,630 --> 00:03:02,240 Sean Aylmer: the ASX follow Wall Street? 60 00:03:02,639 --> 00:03:06,290 Elise Kennedy: I looked at this actually closely more recently because for a while, 61 00:03:06,290 --> 00:03:10,070 Elise Kennedy: about six months last year, the correlation which is simply 62 00:03:10,070 --> 00:03:12,650 Elise Kennedy: is the closeness of the moves between the two was 63 00:03:12,650 --> 00:03:16,299 Elise Kennedy: about 0.5 or about half. So it wasn't really that closely aligned, 64 00:03:16,680 --> 00:03:18,570 Elise Kennedy: but the last three months and even more so, the 65 00:03:18,570 --> 00:03:22,859 Elise Kennedy: last month, that's changed. So right now you're seeing a 66 00:03:22,860 --> 00:03:27,050 Elise Kennedy: very strong relationship between the two indices. So in the 67 00:03:27,050 --> 00:03:29,080 Elise Kennedy: last month, for example, if I look at what the 68 00:03:29,080 --> 00:03:33,269 Elise Kennedy: NASDAQ 100 that was down about 18%, probably even more 69 00:03:33,270 --> 00:03:37,590 Elise Kennedy: after the more recent (inaudible) and then the ASX 70 00:03:37,620 --> 00:03:41,300 Elise Kennedy: tech index was down about 16%. So they're getting increasingly 71 00:03:41,300 --> 00:03:44,730 Elise Kennedy: in line, I think again, because we're seeing the inflations 72 00:03:44,730 --> 00:03:48,260 Elise Kennedy: flow through in Australia as well. And we are privy 73 00:03:48,260 --> 00:03:50,830 Elise Kennedy: to the US rate Heights as well from a funding 74 00:03:50,830 --> 00:03:52,731 Elise Kennedy: mechanism for the companies we have here too. 75 00:03:52,730 --> 00:03:57,470 Sean Aylmer: Okay. So broadly speaking, if the reserve bank in the next few 76 00:03:57,470 --> 00:04:00,000 Sean Aylmer: months comes out and indicates it's going to lift rates 77 00:04:00,000 --> 00:04:03,320 Sean Aylmer: and actually lifts rates later in the year, that expectation 78 00:04:03,400 --> 00:04:06,930 Sean Aylmer: will potentially hurt the valuations of the local stocks as 79 00:04:06,930 --> 00:04:08,241 Sean Aylmer: well, or has that already been built in? 80 00:04:08,241 --> 00:04:12,040 Elise Kennedy: That's the really interesting thing is you can follow the 81 00:04:12,140 --> 00:04:15,420 Elise Kennedy: expectations and that's really what moves the market often more 82 00:04:15,420 --> 00:04:19,290 Elise Kennedy: so than exactly when they are going to hike. But 83 00:04:19,660 --> 00:04:22,170 Elise Kennedy: from a sentiment standpoint, it tends to still have a 84 00:04:22,170 --> 00:04:25,359 Elise Kennedy: reaction because it's not a hundred percent priced in. It's 85 00:04:25,360 --> 00:04:28,850 Elise Kennedy: like there's a probability waiting of how many analysts or 86 00:04:28,860 --> 00:04:31,980 Elise Kennedy: how many people are forecasting that to come through. So 87 00:04:31,980 --> 00:04:35,430 Elise Kennedy: I think it'll probably still have an impact, but again, 88 00:04:35,430 --> 00:04:37,750 Elise Kennedy: a lot of those fours have already started to be 89 00:04:37,750 --> 00:04:40,219 Elise Kennedy: put through that on the flip side, if they were 90 00:04:40,220 --> 00:04:44,130 Elise Kennedy: actually more dovish, then I think you'd have the reverse 91 00:04:44,130 --> 00:04:45,539 Elise Kennedy: scenario transpire. 92 00:04:45,540 --> 00:04:49,180 Sean Aylmer: Okay. So let's get into some of the local stocks. Let's go to the buy 93 00:04:49,180 --> 00:04:52,070 Sean Aylmer: now pay later sector first. I suppose we can't really 94 00:04:52,070 --> 00:04:54,420 Sean Aylmer: talk about Afterpay anymore as a local stock because it's 95 00:04:54,420 --> 00:04:58,320 Sean Aylmer: effectively reflects Square its acquirer, which would happen in the 96 00:04:58,320 --> 00:05:00,880 Sean Aylmer: next couple of months. What about the other Zip, Sezzle, those 97 00:05:01,140 --> 00:05:01,740 Sean Aylmer: of companies? 98 00:05:02,180 --> 00:05:04,250 Elise Kennedy: Yeah. So I think what's really interesting in the space 99 00:05:04,250 --> 00:05:07,270 Elise Kennedy: as a whole is the industry consolidation. I recall when 100 00:05:07,270 --> 00:05:10,200 Elise Kennedy: we started looking at these stocks not too long ago, 101 00:05:10,200 --> 00:05:13,250 Elise Kennedy: a year or two ago, we forecast that it'd take 102 00:05:13,250 --> 00:05:16,860 Elise Kennedy: maybe three, four, five years till we started to look 103 00:05:16,860 --> 00:05:20,060 Elise Kennedy: at industry consolidation. But right now that's what we're seeing in 104 00:05:20,060 --> 00:05:23,520 Elise Kennedy: the space with continued takeover talks. And I think that's 105 00:05:23,520 --> 00:05:26,670 Elise Kennedy: because we've seen accelerated competition with the likes of, as 106 00:05:26,670 --> 00:05:30,470 Elise Kennedy: you mentioned Afterpay moving into a bigger likes of Square 107 00:05:30,470 --> 00:05:33,190 Elise Kennedy: we're seeing, over in the US, you're going to potentially 108 00:05:33,190 --> 00:05:36,210 Elise Kennedy: see a few more of the unlisted buy now pay 109 00:05:36,210 --> 00:05:38,520 Elise Kennedy: later guys like (inaudible) that came and had a 110 00:05:38,520 --> 00:05:41,299 Elise Kennedy: relationship with CBA come through. So I think this year 111 00:05:41,700 --> 00:05:45,159 Elise Kennedy: it's less now about just buy now, pay later. That 112 00:05:45,160 --> 00:05:48,380 Elise Kennedy: was very last year. I think now moving forward, it's 113 00:05:48,380 --> 00:05:51,270 Elise Kennedy: about how is the ecosystem of finance coming through and 114 00:05:51,270 --> 00:05:54,770 Elise Kennedy: where can you see synergies between brands, both from a 115 00:05:54,770 --> 00:05:57,500 Elise Kennedy: cost and revenue side to be able to build out 116 00:05:57,500 --> 00:05:59,670 Elise Kennedy: that ecosystem. So I think that's going to be an 117 00:05:59,670 --> 00:06:01,410 Elise Kennedy: interesting space to watch this year. 118 00:06:01,779 --> 00:06:05,070 Sean Aylmer: Do you think the sort of specter of regulation will 119 00:06:05,070 --> 00:06:06,110 Sean Aylmer: hang over that sector? 120 00:06:06,720 --> 00:06:09,510 Elise Kennedy: I do think it will. As things in this space 121 00:06:09,510 --> 00:06:13,180 Elise Kennedy: become more meaningful, less in terms in at least A 122 00:06:13,180 --> 00:06:18,430 Elise Kennedy: and Z as a consumer finance, regulation is an important 123 00:06:18,440 --> 00:06:22,010 Elise Kennedy: factor that needs to be always considered. And I think is going to continue 124 00:06:22,010 --> 00:06:25,299 Elise Kennedy: to be a preeminent discussion point and weighing on some 125 00:06:25,300 --> 00:06:26,510 Elise Kennedy: of these types of names. 126 00:06:26,740 --> 00:06:28,659 Sean Aylmer: Stay with me, Elise, we'll be back in a minute. 127 00:06:33,270 --> 00:06:36,580 Sean Aylmer: My guest today is Elise Kennedy, Vice President of Equity 128 00:06:36,580 --> 00:06:40,630 Sean Aylmer: Research at Jarden. Okay. What about SEEK, the recruitment company? 129 00:06:40,630 --> 00:06:44,530 Sean Aylmer: We are seeing a booming jobs market here. Though, it 130 00:06:44,680 --> 00:06:47,730 Sean Aylmer: obviously relies not just on Australia, but outside Australia as 131 00:06:47,730 --> 00:06:50,061 Sean Aylmer: well. How do you think it will play throughout the year? 132 00:06:50,061 --> 00:06:53,409 Elise Kennedy: See, I really think this is an interesting stock, as 133 00:06:53,410 --> 00:06:56,479 Elise Kennedy: you mentioned, not only is recruitment at all time highs, but SEEK 134 00:06:56,480 --> 00:06:59,589 Elise Kennedy: has changed its business more model where it's now leveraged to 135 00:06:59,589 --> 00:07:03,850 Elise Kennedy: the difficulty of recruitment. So, for example, if you've previously 136 00:07:03,850 --> 00:07:07,440 Elise Kennedy: had a job as a barista or versus a banker, you'd 137 00:07:07,440 --> 00:07:09,929 Elise Kennedy: be putting up that ad for the same price where 138 00:07:10,050 --> 00:07:12,119 Elise Kennedy: as they changed their business model, where now it's a 139 00:07:12,120 --> 00:07:14,210 Elise Kennedy: matter of, hey, you might have to pay more if 140 00:07:14,210 --> 00:07:17,440 Elise Kennedy: you're a recruiting for a banker versus a barista, just 141 00:07:17,440 --> 00:07:20,280 Elise Kennedy: more so based on say the location and all the pay 142 00:07:20,280 --> 00:07:23,540 Elise Kennedy: rate that they're going to have. So that again, in an 143 00:07:23,540 --> 00:07:27,380 Elise Kennedy: environment right now where recruiters and the tech terrain that 144 00:07:27,410 --> 00:07:30,660 Elise Kennedy: we are seeing, it's becoming harder to come through and 145 00:07:30,660 --> 00:07:34,420 Elise Kennedy: there's some data that's being published on that more recently that 146 00:07:34,460 --> 00:07:36,650 Elise Kennedy: even in the US has been this whole drain and 147 00:07:36,650 --> 00:07:40,050 Elise Kennedy: this churn and SEEK's completely leveraged to that. So I 148 00:07:40,230 --> 00:07:42,560 Elise Kennedy: think that's a really important play on the thematics that 149 00:07:42,560 --> 00:07:45,170 Elise Kennedy: might start to come through and be seen this year 150 00:07:45,170 --> 00:07:47,210 Elise Kennedy: as again, the economy starts to open. 151 00:07:47,570 --> 00:07:51,550 Sean Aylmer: Okay. What about the housing stocks? REA Domains Holdings Group. 152 00:07:51,620 --> 00:07:54,880 Sean Aylmer: They're very leveraged to the housing cycle, which we... Incredible 153 00:07:54,880 --> 00:07:58,020 Sean Aylmer: run last year. I suppose most market economists still think 154 00:07:58,020 --> 00:08:00,820 Sean Aylmer: prices will rise this year though might come off next 155 00:08:00,820 --> 00:08:03,130 Sean Aylmer: year. How does that play out for those stocks? 156 00:08:03,410 --> 00:08:05,340 Elise Kennedy: So I think if that's the thing in the near term, 157 00:08:05,340 --> 00:08:09,900 Elise Kennedy: those thematics of house price increases bring listings volumes in 158 00:08:10,070 --> 00:08:13,740 Elise Kennedy: which brings in the dollars for these guys. But eventually 159 00:08:13,740 --> 00:08:16,500 Elise Kennedy: as you say, we've all forecasted that perhaps next year 160 00:08:16,500 --> 00:08:18,310 Elise Kennedy: that music will stop. So I think they've got a 161 00:08:18,310 --> 00:08:21,290 Elise Kennedy: little bit more there to run, but it'll be interesting 162 00:08:21,290 --> 00:08:23,250 Elise Kennedy: to see how they're going to fill that gap. Because 163 00:08:23,310 --> 00:08:26,780 Elise Kennedy: once you've started doing so well in terms of your 164 00:08:26,780 --> 00:08:30,060 Elise Kennedy: numbers, you're cycling a harder comp and then again, that 165 00:08:30,060 --> 00:08:33,450 Elise Kennedy: means how do I continue to get those same dollars 166 00:08:33,450 --> 00:08:35,871 Elise Kennedy: that I did in a different form or means. 167 00:08:35,871 --> 00:08:40,189 Sean Aylmer: Okay. What about carsales. com? Because that's very leveraged to the car 168 00:08:40,190 --> 00:08:43,240 Sean Aylmer: market and sending the used car market's been very strong or was 169 00:08:43,240 --> 00:08:43,990 Sean Aylmer: in 2021. 170 00:08:44,590 --> 00:08:47,370 Elise Kennedy: Yeah. So everybody went and got another second car when 171 00:08:47,370 --> 00:08:49,860 Elise Kennedy: COVID hit. But a lot of that I think has 172 00:08:49,860 --> 00:08:53,240 Elise Kennedy: started to transpire and been through. Whereas now it's a 173 00:08:53,240 --> 00:08:55,280 Elise Kennedy: matter of, do I really need that second car? And 174 00:08:55,280 --> 00:08:58,020 Elise Kennedy: their business model from a revenue standpoint, how they make 175 00:08:58,059 --> 00:09:01,219 Elise Kennedy: their dollars is leads, not just the listing. So it's 176 00:09:01,220 --> 00:09:03,920 Elise Kennedy: more demand orientated. So it's when you and I are 177 00:09:04,170 --> 00:09:08,010 Elise Kennedy: looking for our second or third car and that's how they're 178 00:09:08,110 --> 00:09:10,380 Elise Kennedy: going to get their dollars. Whereas if we started to 179 00:09:10,960 --> 00:09:13,360 Elise Kennedy: drop off on that side, they're not likely to make 180 00:09:13,360 --> 00:09:15,970 Elise Kennedy: as much. So I'm not as optimistic about them. I 181 00:09:15,970 --> 00:09:18,960 Elise Kennedy: think management's fantastic. I really like the team. I like 182 00:09:18,960 --> 00:09:22,170 Elise Kennedy: a lot of the new things that they're doing around 183 00:09:22,170 --> 00:09:25,350 Elise Kennedy: selecting your car from your couch, but I think that 184 00:09:25,350 --> 00:09:28,010 Elise Kennedy: takes real investment. So I think the two things there 185 00:09:28,010 --> 00:09:30,720 Elise Kennedy: are one, more investment to a (inaudible) environment that for me, 186 00:09:30,929 --> 00:09:32,330 Elise Kennedy: it's hard to recommend that name. 187 00:09:32,850 --> 00:09:35,200 Sean Aylmer: Yeah. It's interesting. And Car Sales, SEEK is the other 188 00:09:35,200 --> 00:09:39,040 Sean Aylmer: one you mentioned there, it's that innovative management in a way 189 00:09:39,320 --> 00:09:43,429 Sean Aylmer: that when cycles change, the ability to actually change and 190 00:09:43,429 --> 00:09:45,450 Sean Aylmer: go with the market is really important for these 191 00:09:45,450 --> 00:09:49,319 Elise Kennedy: Stocks. Absolutely. And that's, what's really interesting and always hard 192 00:09:49,410 --> 00:09:52,050 Elise Kennedy: because SEEK and Car Sales, the way that they came 193 00:09:52,130 --> 00:09:55,210 Elise Kennedy: through was more as the innovator and that was against 194 00:09:55,210 --> 00:09:58,300 Elise Kennedy: some of newspaper names. But now they're in a position as 195 00:09:58,300 --> 00:10:01,179 Elise Kennedy: more so the mainstream go- to forum, it's like, how 196 00:10:01,179 --> 00:10:05,100 Elise Kennedy: do I continue to innovate when I now am basically 197 00:10:05,100 --> 00:10:07,720 Elise Kennedy: looking over my shoulder? But again, it comes down to 198 00:10:07,720 --> 00:10:10,699 Elise Kennedy: management. The guys are being exceptional on, I think, on 199 00:10:10,700 --> 00:10:14,010 Elise Kennedy: that side around being able to try and reinvent yourself. 200 00:10:14,010 --> 00:10:15,939 Elise Kennedy: And if I go back to SEEK as well, they've 201 00:10:15,940 --> 00:10:18,410 Elise Kennedy: been investing in a growth fund, which is all these 202 00:10:18,410 --> 00:10:20,860 Elise Kennedy: startup VCs. So it's like, even if I can't do 203 00:10:20,860 --> 00:10:22,530 Elise Kennedy: it myself, I'm going to put my foot in the 204 00:10:22,530 --> 00:10:26,160 Elise Kennedy: door as to perhaps companies that might be my future 205 00:10:26,160 --> 00:10:29,370 Elise Kennedy: competitors. So at least I'm leveraged to their capability to 206 00:10:29,370 --> 00:10:32,160 Elise Kennedy: be able to be on that bandwagon rather than be 207 00:10:32,160 --> 00:10:32,820 Elise Kennedy: beaten by them. 208 00:10:33,330 --> 00:10:35,870 Sean Aylmer: Okay. Before you go at least a couple, which we've 209 00:10:35,870 --> 00:10:38,319 Sean Aylmer: watched over the last couple of years in awe in 210 00:10:38,320 --> 00:10:41,320 Sean Aylmer: a sense, that they have pulled back somewhat Xero and 211 00:10:41,320 --> 00:10:44,150 Sean Aylmer: then WiseTech Global there's sort of companies, which many of 212 00:10:44,150 --> 00:10:47,390 Sean Aylmer: us thought very little about. They're now top 20 top 213 00:10:47,400 --> 00:10:50,809 Sean Aylmer: 30 companies because of what's gone on over the last couple 214 00:10:50,809 --> 00:10:53,510 Sean Aylmer: of years. Can that continue? Let's take Xero first. 215 00:10:53,809 --> 00:10:56,070 Elise Kennedy: I think this goes back to the, how we started 216 00:10:56,070 --> 00:11:01,459 Elise Kennedy: our conversation about the fundamental adoption of software and is 217 00:11:01,460 --> 00:11:06,001 Elise Kennedy: that going to change if the economy opens. And (inaudible) 218 00:11:06,001 --> 00:11:09,080 Elise Kennedy: again, it's small business software, it's pulled back in 219 00:11:09,080 --> 00:11:11,730 Elise Kennedy: share price, but at the end of the day, more 220 00:11:11,730 --> 00:11:14,030 Elise Kennedy: and more businesses should be created when we open the 221 00:11:14,030 --> 00:11:17,260 Elise Kennedy: economy. New businesses as well, perhaps some have a fed 222 00:11:17,260 --> 00:11:19,640 Elise Kennedy: so well, and they're going to have to have some 223 00:11:19,640 --> 00:11:21,740 Elise Kennedy: form of accounting software. They're not going to go and 224 00:11:21,740 --> 00:11:25,270 Elise Kennedy: get a desktop software. So it actually is a beneficiary, if 225 00:11:25,270 --> 00:11:29,250 Elise Kennedy: anything, of a booming economy. So that's where for me, it's still 226 00:11:29,250 --> 00:11:32,439 Elise Kennedy: a top pick and I think that's an important fundamental 227 00:11:32,440 --> 00:11:36,579 Elise Kennedy: there. WiseTech? So that again has been leveraged the supply 228 00:11:36,580 --> 00:11:39,880 Elise Kennedy: chain constraints because any way that you can get items 229 00:11:39,880 --> 00:11:43,200 Elise Kennedy: faster and track them and speed to market is ever 230 00:11:43,210 --> 00:11:46,790 Elise Kennedy: more important in the environment we've had, those guys as 231 00:11:46,790 --> 00:11:51,570 Elise Kennedy: well, cash flow positive, which as we discussed, tends to 232 00:11:51,570 --> 00:11:55,929 Elise Kennedy: bode better in a higher interest rate environment. So that's 233 00:11:55,929 --> 00:11:58,059 Elise Kennedy: where they've held up a bit better. But once again, 234 00:11:58,059 --> 00:12:02,500 Elise Kennedy: those shifting fundamentals of continued, and valuation is now started 235 00:12:02,500 --> 00:12:05,439 Elise Kennedy: to pull back, it was getting pretty lofty there that 236 00:12:05,440 --> 00:12:08,240 Elise Kennedy: I think that's again a name where you think, well, 237 00:12:08,240 --> 00:12:11,650 Elise Kennedy: has anything really changed when the economy opens? Not necessarily. 238 00:12:12,100 --> 00:12:15,390 Sean Aylmer: Okay. So I think where we are landing and to all listeners 239 00:12:15,390 --> 00:12:18,240 Sean Aylmer: get financial advice, we're not a financial advice show, but 240 00:12:18,240 --> 00:12:21,219 Sean Aylmer: get financial advice. But Elise Kennedy from Jarden, you're a 241 00:12:21,220 --> 00:12:22,429 Sean Aylmer: bit of a fan of SEEK and you're bit of 242 00:12:22,429 --> 00:12:24,860 Sean Aylmer: a fan of Xero. And you don't mind WiseTech Global either. 243 00:12:25,610 --> 00:12:27,730 Elise Kennedy: That's right. I'll have to tell you some sales next 244 00:12:27,730 --> 00:12:29,002 Elise Kennedy: time. So it's not (crosstalk) . 245 00:12:30,640 --> 00:12:32,640 Sean Aylmer: Next time around. Thank you for talking to Fear and Greed. 246 00:12:32,960 --> 00:12:34,070 Elise Kennedy: Thanks for having me on the show. 247 00:12:34,300 --> 00:12:37,280 Sean Aylmer: That was Elise Kennedy, Vice President of Equity Research at 248 00:12:37,290 --> 00:12:40,160 Sean Aylmer: Jarden. This is a Fear and Greed daily interview. Join 249 00:12:40,160 --> 00:12:42,459 Sean Aylmer: me every morning for the full Fear and Greed podcast 250 00:12:42,460 --> 00:12:44,660 Sean Aylmer: with all the business news you need to know. I'm 251 00:12:44,660 --> 00:12:46,219 Sean Aylmer: Sean Aylmer, enjoy your day.