1 00:00:03,930 --> 00:00:06,690 Jennifer Duke: Welcome to the Fear and Greed daily interview. I'm Jennifer 2 00:00:06,690 --> 00:00:09,719 Jennifer Duke: Duke. We're now halfway through earning season and are getting 3 00:00:09,719 --> 00:00:11,820 Jennifer Duke: a clearer picture of the trends and some of the 4 00:00:11,820 --> 00:00:15,540 Jennifer Duke: factors affecting companies reporting their results. Last week saw some 5 00:00:15,540 --> 00:00:18,630 Jennifer Duke: big companies reporting, with some mixed outcomes, and this week's 6 00:00:18,630 --> 00:00:20,250 Jennifer Duke: also gearing up to be a bit of a busy 7 00:00:20,250 --> 00:00:23,280 Jennifer Duke: one. It's a lot for investors to process. That's why 8 00:00:23,280 --> 00:00:25,890 Jennifer Duke: we thought we'd invite Roger Montgomery, the founder and chief 9 00:00:25,890 --> 00:00:29,340 Jennifer Duke: investment officer of Montgomery Investment Management, to take us through 10 00:00:29,340 --> 00:00:31,860 Jennifer Duke: some of the stocks and trends that he's watching. Now, 11 00:00:31,860 --> 00:00:34,559 Jennifer Duke: this information is general in nature and you should seek 12 00:00:34,559 --> 00:00:38,700 Jennifer Duke: professional advice before making any investment decisions. Roger, welcome back 13 00:00:38,700 --> 00:00:39,480 Jennifer Duke: to Fear and Greed. 14 00:00:39,990 --> 00:00:42,000 Roger Montgomery: Great to be with you, Jen. Thank you for having me. 15 00:00:42,630 --> 00:00:44,189 Jennifer Duke: Let's have a look at some of the companies that 16 00:00:44,190 --> 00:00:46,139 Jennifer Duke: you've been keeping an eye on. What did you make 17 00:00:46,139 --> 00:00:47,460 Jennifer Duke: of Carsales last week? 18 00:00:48,509 --> 00:00:52,529 Roger Montgomery: What was interesting is that despite absolutely soaring fuel costs, 19 00:00:52,650 --> 00:00:57,810 Roger Montgomery: which were expected to really hit sales of SUVs, which 20 00:00:57,810 --> 00:01:01,800 Roger Montgomery: are obviously the biggest selling vehicles in Australia, that didn't 21 00:01:01,800 --> 00:01:04,980 Roger Montgomery: seem to happen, which was interesting. I mean, the company 22 00:01:04,980 --> 00:01:10,199 Roger Montgomery: did report a 301% increase in full year profit, but you 23 00:01:10,199 --> 00:01:13,680 Roger Montgomery: have to remember that was boosted by a revaluation of 24 00:01:13,680 --> 00:01:18,510 Roger Montgomery: about almost $500 million, about $486 million of its minority 25 00:01:18,510 --> 00:01:23,429 Roger Montgomery: stake in a US-based website called Trader Interactive, and also 26 00:01:23,520 --> 00:01:28,440 Roger Montgomery: a Brazilian business that it owns called Webmotors. So on 27 00:01:28,440 --> 00:01:33,000 Roger Montgomery: a proforma basis, which is where you're assuming consolidation of the 28 00:01:33,000 --> 00:01:37,500 Roger Montgomery: acquisitions in both periods, revenue was up about 18%. It's 29 00:01:37,500 --> 00:01:39,899 Roger Montgomery: still a good result and was somewhat surprising. 30 00:01:41,849 --> 00:01:45,059 Jennifer Duke: So, also Nick Scali reported last week. Any thoughts on their results? 31 00:01:45,569 --> 00:01:50,280 Roger Montgomery: Yeah, so Nick Scali was interesting because, number one, it 32 00:01:50,280 --> 00:01:54,660 Roger Montgomery: came out with earlier in the year around May, the 33 00:01:54,660 --> 00:01:57,839 Roger Montgomery: company had been saying that things are looking pretty bleak. 34 00:01:58,410 --> 00:02:02,249 Roger Montgomery: And the share price consequently was hammered. But they have 35 00:02:02,490 --> 00:02:08,010 Roger Montgomery: completely outperformed expectations. They reported sales revenue of about $508 million. 36 00:02:08,910 --> 00:02:10,619 Roger Montgomery: That was up 57%. 37 00:02:11,038 --> 00:02:11,909 Jennifer Duke: That's crazy. 38 00:02:11,909 --> 00:02:15,929 Roger Montgomery: Yeah. And a gross margin of 63.5%. Now, part of 39 00:02:15,929 --> 00:02:20,099 Roger Montgomery: the reason for that is that they've seen... What they've 40 00:02:20,099 --> 00:02:23,910 Roger Montgomery: not done is discounted their products, but they've seen lower 41 00:02:23,910 --> 00:02:27,420 Roger Montgomery: freight costs and that means their margin has gone up. 42 00:02:27,600 --> 00:02:31,410 Roger Montgomery: And that's continuing into the new year. What's happening is 43 00:02:31,560 --> 00:02:35,130 Roger Montgomery: shipping expenses have declined since March, but they're selling their 44 00:02:35,130 --> 00:02:39,328 Roger Montgomery: product at the same price. Rather than pass on the 45 00:02:39,389 --> 00:02:43,138 Roger Montgomery: lower shipping costs by lowering prices, they're maintaining their higher prices, 46 00:02:43,200 --> 00:02:46,860 Roger Montgomery: and that means they've got this terrific margin improvement. And 47 00:02:46,860 --> 00:02:50,160 Roger Montgomery: so they've got better buying conditions because their buying power 48 00:02:50,160 --> 00:02:54,270 Roger Montgomery: is improving. And if analysts start to see this as structural, 49 00:02:54,599 --> 00:02:57,480 Roger Montgomery: then analysts are going to upgrade their earnings estimates for 50 00:02:57,480 --> 00:03:00,780 Roger Montgomery: next year, 2025 and 2026 as well. 51 00:03:01,530 --> 00:03:03,210 Jennifer Duke: Those two didn't do what I expected them to do 52 00:03:03,210 --> 00:03:05,550 Jennifer Duke: at all given the cost of living pressures. But what 53 00:03:05,550 --> 00:03:06,750 Jennifer Duke: about JB Hi-Fi? 54 00:03:07,830 --> 00:03:10,349 Roger Montgomery: JB Hi-Fi is a slightly different picture. I mean, they 55 00:03:10,349 --> 00:03:14,730 Roger Montgomery: still are a brilliant business. They are really sort of 56 00:03:14,730 --> 00:03:20,340 Roger Montgomery: the litmus test for the consumer picture, notwithstanding that that 57 00:03:20,340 --> 00:03:25,829 Roger Montgomery: new CBA Household Spending Insights Report that's now being conducted 58 00:03:25,830 --> 00:03:28,590 Roger Montgomery: on the 7 million credit card and debit card holders 59 00:03:28,650 --> 00:03:33,059 Roger Montgomery: that the bank has will be a pretty useful monthly report, 60 00:03:33,059 --> 00:03:37,230 Roger Montgomery: I think, because that'll be up-to-date. Not withstanding that, JB 61 00:03:37,440 --> 00:03:40,410 Roger Montgomery: Hi-Fi is the litmus test for consumers in Australia and 62 00:03:40,860 --> 00:03:44,700 Roger Montgomery: they had sort of mixed results. Their sales increased by 63 00:03:44,760 --> 00:03:48,178 Roger Montgomery: just under 6%, which was great. Same store sales was 64 00:03:48,179 --> 00:03:52,769 Roger Montgomery: up about 5%. But The Good Guys, their results were 65 00:03:52,770 --> 00:03:56,310 Roger Montgomery: only up 0.8%, and their same store sales growth was 66 00:03:56,310 --> 00:04:00,930 Roger Montgomery: also up 0.8%. What's interesting is that The Good Guys, 67 00:04:00,930 --> 00:04:06,929 Roger Montgomery: which obviously are selling major appliances, they're selling products that 68 00:04:06,929 --> 00:04:12,029 Roger Montgomery: are largely at the tail end of renovation demand. I 69 00:04:12,029 --> 00:04:13,710 Roger Montgomery: don't know if you know this Jen, but people buy 70 00:04:13,710 --> 00:04:17,789 Roger Montgomery: houses or they buy an apartment and typically in aggregate 71 00:04:17,790 --> 00:04:22,199 Roger Montgomery: or on average, there's a 10- month lag between buying 72 00:04:22,200 --> 00:04:25,080 Roger Montgomery: a place and then renovating a place. And that's because 73 00:04:25,889 --> 00:04:28,709 Roger Montgomery: it takes time to apply to council and so on. 74 00:04:29,219 --> 00:04:32,130 Roger Montgomery: And then after the renovation's done, then you see demand 75 00:04:32,130 --> 00:04:35,760 Roger Montgomery: for appliances: fridges, freezers, those sorts of things, people installing 76 00:04:35,760 --> 00:04:38,790 Roger Montgomery: those into their kitchens and so forth. And that is 77 00:04:38,790 --> 00:04:41,789 Roger Montgomery: starting to slow down a little bit. So, JB Hi-Fi 78 00:04:41,969 --> 00:04:46,260 Roger Montgomery: noted that there's increased variability now across months and across sectors, 79 00:04:46,619 --> 00:04:48,539 Roger Montgomery: and that's going to make it challenging for them to 80 00:04:48,540 --> 00:04:52,380 Roger Montgomery: optimise their inventory. We saw their inventory come off about 8%, 81 00:04:53,520 --> 00:04:57,120 Roger Montgomery: which says that they're pretty dynamic managers of their inventory. 82 00:04:57,450 --> 00:05:00,719 Roger Montgomery: But how they manage that going forward is going to 83 00:05:00,719 --> 00:05:04,830 Roger Montgomery: be quite a challenge because like-for-like sales have definitely slowed down. 84 00:05:05,400 --> 00:05:07,140 Jennifer Duke: Stay with me, Roger. We'll be back in a minute. 85 00:05:13,350 --> 00:05:16,049 Jennifer Duke: My guest this morning is Roger Montgomery, Founder and Chief 86 00:05:16,050 --> 00:05:21,299 Jennifer Duke: Investment Officer of Montgomery Investment Management. That housing factor is 87 00:05:21,299 --> 00:05:24,359 Jennifer Duke: fascinating to me, actually. And I did think we also 88 00:05:24,359 --> 00:05:27,240 Jennifer Duke: saw Domain's results and REA was a couple of weeks 89 00:05:27,240 --> 00:05:30,089 Jennifer Duke: ago now. What do you make of those two in 90 00:05:30,089 --> 00:05:32,940 Jennifer Duke: light of that picture with listings and what they were posting? 91 00:05:34,469 --> 00:05:38,309 Roger Montgomery: REA is a phenomenal business. We've owned it in the 92 00:05:38,309 --> 00:05:41,580 Roger Montgomery: past. We've talked about it for the last 13 years 93 00:05:41,580 --> 00:05:45,089 Roger Montgomery: on our blog. And it's one of those businesses that 94 00:05:45,089 --> 00:05:48,719 Roger Montgomery: you can count on two hands the businesses of the 95 00:05:48,720 --> 00:05:52,320 Roger Montgomery: highest quality in Australia that have sustained that high quality 96 00:05:52,770 --> 00:05:55,140 Roger Montgomery: for a very long time, and REA is one of them. What 97 00:05:56,190 --> 00:06:00,389 Roger Montgomery: many people don't understand is that REA's performance is not 98 00:06:00,420 --> 00:06:04,529 Roger Montgomery: tied to house prices, but it's tied to listings. And 99 00:06:04,529 --> 00:06:08,279 Roger Montgomery: what's interesting is that over the last decade, national listings 100 00:06:08,279 --> 00:06:12,149 Roger Montgomery: have actually been declining in Australia, and yet REA's profit 101 00:06:12,210 --> 00:06:16,320 Roger Montgomery: and revenue have been rising most years, with the exception 102 00:06:16,320 --> 00:06:19,589 Roger Montgomery: of the COVID of course. But the reason for the rise 103 00:06:19,589 --> 00:06:24,089 Roger Montgomery: in revenue has been, within them, they harbor the most 104 00:06:24,089 --> 00:06:27,570 Roger Montgomery: valuable competitive advantage of all, and that is the ability 105 00:06:27,570 --> 00:06:32,339 Roger Montgomery: to raise prices without a detrimental impact on volume. The 106 00:06:32,339 --> 00:06:33,690 Roger Montgomery: worst thing you can do is if you start a 107 00:06:33,690 --> 00:06:36,630 Roger Montgomery: business and you start generating really high rates of return 108 00:06:36,630 --> 00:06:39,960 Roger Montgomery: on equity of 30 or 40%, your worry will always be 109 00:06:39,960 --> 00:06:42,690 Roger Montgomery: that a competitor comes in and charges a lower price 110 00:06:42,690 --> 00:06:47,700 Roger Montgomery: for the same thing, and they'll undermine your profitability. Well, 111 00:06:48,089 --> 00:06:50,940 Roger Montgomery: the worst thing a competitor could do is offer the 112 00:06:50,940 --> 00:06:54,660 Roger Montgomery: same product for free. And here's the thing, there are 113 00:06:54,690 --> 00:06:59,250 Roger Montgomery: 83 websites in Australia offering people the ability to list 114 00:06:59,250 --> 00:07:04,110 Roger Montgomery: their house for sale. And of those 83, about 78 115 00:07:04,110 --> 00:07:06,750 Roger Montgomery: of them or 79 of them charge nothing for it. 116 00:07:07,110 --> 00:07:11,850 Roger Montgomery: And yet REA's website, realestate. com. au, has the most 117 00:07:11,850 --> 00:07:14,670 Roger Montgomery: number of houses and the most number of viewers, despite 118 00:07:14,670 --> 00:07:17,190 Roger Montgomery: the fact it's the most expensive. So you really want 119 00:07:17,190 --> 00:07:20,820 Roger Montgomery: to own a business that can raise prices without detrimentally 120 00:07:20,820 --> 00:07:23,789 Roger Montgomery: impacting unit sales volume. And they've been doing that regularly, 121 00:07:23,790 --> 00:07:25,080 Roger Montgomery: and they're going to do it again in a couple 122 00:07:25,080 --> 00:07:27,209 Roger Montgomery: of months and raise their prices quite a bit, by 123 00:07:27,210 --> 00:07:31,980 Roger Montgomery: double digits. And they won't see any reduction in the 124 00:07:31,980 --> 00:07:34,200 Roger Montgomery: number of people wanting to sell their house. In fact, 125 00:07:34,620 --> 00:07:37,830 Roger Montgomery: when it gets tougher to sell, it's more important to 126 00:07:37,830 --> 00:07:40,739 Roger Montgomery: have your property listed on REA so that you can 127 00:07:40,740 --> 00:07:42,899 Roger Montgomery: sell your property. And then of course they're going to 128 00:07:42,900 --> 00:07:46,709 Roger Montgomery: get a massive boost because listings have recently increased. Now, 129 00:07:46,709 --> 00:07:49,590 Roger Montgomery: whether that's sustained or not, we don't know, but listings 130 00:07:49,590 --> 00:07:52,860 Roger Montgomery: are picking up because there is some pressure on people 131 00:07:52,860 --> 00:07:55,650 Roger Montgomery: to sell property as a result of the 12 interest 132 00:07:55,650 --> 00:07:57,540 Roger Montgomery: rate increases that the RBA has put through. 133 00:07:58,349 --> 00:08:00,690 Jennifer Duke: Now, we will get to the... well, what's happening this 134 00:08:00,690 --> 00:08:02,910 Jennifer Duke: week in a moment, but I can't help but ask 135 00:08:02,910 --> 00:08:05,129 Jennifer Duke: you about a blog that you had up about the 136 00:08:05,129 --> 00:08:07,680 Jennifer Duke: mortgage cliff and how it's more of a stepping stone. 137 00:08:07,680 --> 00:08:09,600 Jennifer Duke: Can you explain why you don't think we've got a 138 00:08:09,600 --> 00:08:12,810 Jennifer Duke: mortgage cliff, and what's a stepping stone, Roger? 139 00:08:13,770 --> 00:08:17,490 Roger Montgomery: Yeah. Many people would know that I write a fortnightly 140 00:08:17,490 --> 00:08:20,130 Roger Montgomery: column in The Australian. And back in November last year, 141 00:08:20,460 --> 00:08:22,979 Roger Montgomery: and earlier this year in March, I think it was, 142 00:08:23,250 --> 00:08:26,040 Roger Montgomery: I wrote a couple of articles for The Oz just explaining 143 00:08:26,040 --> 00:08:29,610 Roger Montgomery: that all of this fearmongering about the mortgage cliff was misplaced. 144 00:08:29,610 --> 00:08:34,320 Roger Montgomery: And the reason everyone was concerned was because there was a very 145 00:08:34,320 --> 00:08:39,119 Roger Montgomery: large number of people who'd borrowed money during the period 146 00:08:39,179 --> 00:08:41,759 Roger Montgomery: of the term funding facility that was offered by the 147 00:08:41,760 --> 00:08:44,338 Roger Montgomery: Reserve Bank of Australia to the banks. And that meant 148 00:08:44,340 --> 00:08:46,410 Roger Montgomery: that the banks could borrow for three years at 0.1%. 149 00:08:47,760 --> 00:08:50,280 Roger Montgomery: And consequently, when they can borrow money really cheaply, they 150 00:08:50,280 --> 00:08:52,738 Roger Montgomery: then go and lend that money really cheaply. And so they 151 00:08:52,889 --> 00:08:55,740 Roger Montgomery: were offering three and four- year mortgages for as little 152 00:08:55,740 --> 00:08:59,728 Roger Montgomery: as 1. 98%. And so a lot of people borrowed money 153 00:08:59,730 --> 00:09:03,480 Roger Montgomery: fixed rather than variable. So in Australia, we usually see 154 00:09:03,480 --> 00:09:08,640 Roger Montgomery: people on a month- to- month basis. It's usually 15 to 18% 155 00:09:08,730 --> 00:09:12,179 Roger Montgomery: of new mortgages written that are fixed. And the rest 156 00:09:12,179 --> 00:09:16,290 Roger Montgomery: of them, the vast majority, 82% or thereabouts, are written variable. 157 00:09:16,708 --> 00:09:20,429 Roger Montgomery: But during 2021, there were a couple of months there 158 00:09:20,429 --> 00:09:26,130 Roger Montgomery: where about 45% of new loans written were fixed. And 159 00:09:26,130 --> 00:09:29,070 Roger Montgomery: that's because the fixed rate was lower than the variable 160 00:09:29,070 --> 00:09:32,578 Roger Montgomery: rate at the time. And that's highly unusual, we don't 161 00:09:32,580 --> 00:09:35,699 Roger Montgomery: see that in Australia. And that's why we saw that jump. 162 00:09:36,179 --> 00:09:39,150 Roger Montgomery: But remember this, I remember years and years ago, Jen, 163 00:09:39,150 --> 00:09:41,910 Roger Montgomery: and I'll just digress for a second. I was at 164 00:09:41,910 --> 00:09:46,470 Roger Montgomery: university and I remember reading a newspaper headline and it said... 165 00:09:46,920 --> 00:09:50,099 Roger Montgomery: What did it say exactly? It was something like, " 40% 166 00:09:50,219 --> 00:09:54,570 Roger Montgomery: of homes burgled have inadequate security." And that was the headline. 167 00:09:54,600 --> 00:09:56,910 Roger Montgomery: And I thought to myself... And I was studying statistics 168 00:09:56,910 --> 00:09:59,670 Roger Montgomery: at university at the time, I thought, " That means 60% 169 00:09:59,670 --> 00:10:02,429 Roger Montgomery: of homes burgled have adequate security." In fact, you're better 170 00:10:02,429 --> 00:10:05,130 Roger Montgomery: off having no security because there's only a 40% chance 171 00:10:05,130 --> 00:10:05,939 Roger Montgomery: of you being robbed. 172 00:10:06,120 --> 00:10:08,069 Jennifer Duke: Don't let logic get in the way of a good headline. 173 00:10:08,460 --> 00:10:11,730 Roger Montgomery: That's right. And so it was the same thing that 174 00:10:11,730 --> 00:10:15,420 Roger Montgomery: I noticed with all of these headlines about the mortgage 175 00:10:15,420 --> 00:10:18,870 Roger Montgomery: cliff. They're saying, " 45% of people on a monthly basis 176 00:10:19,020 --> 00:10:21,869 Roger Montgomery: are taking out fixed rate mortgages. They're going to roll 177 00:10:21,870 --> 00:10:24,329 Roger Montgomery: off onto variable, and when they roll off onto variable, 178 00:10:24,570 --> 00:10:28,590 Roger Montgomery: they're going to go from 1. 98% to 6% and they're 179 00:10:28,590 --> 00:10:30,119 Roger Montgomery: going to have to sell their houses. They're not going 180 00:10:30,119 --> 00:10:31,319 Roger Montgomery: to be able to afford it." And I thought to 181 00:10:31,320 --> 00:10:33,929 Roger Montgomery: myself, 'But hang on a sec. Even at those peak 182 00:10:33,929 --> 00:10:38,070 Roger Montgomery: months when 45% of loans were written as fixed, 55% 183 00:10:38,070 --> 00:10:41,040 Roger Montgomery: were written as variable. And even before that we had 184 00:10:41,040 --> 00:10:45,990 Roger Montgomery: 85%, the standard is about 85% variable." So the vast 185 00:10:45,990 --> 00:10:50,490 Roger Montgomery: majority of loans, a significant number of loans are variable. 186 00:10:50,730 --> 00:10:54,838 Roger Montgomery: And they've already experienced the increase in interest rates, and 187 00:10:54,840 --> 00:10:57,809 Roger Montgomery: we're not falling off a cliff. So this smaller proportion 188 00:10:57,809 --> 00:11:00,000 Roger Montgomery: of people who are going to go from fixed to 189 00:11:00,000 --> 00:11:02,759 Roger Montgomery: variable, yes, there'll be a few people that are shocked 190 00:11:02,759 --> 00:11:05,608 Roger Montgomery: by it. But we already know the vast majority have 191 00:11:05,609 --> 00:11:09,000 Roger Montgomery: been able to stomach, endure and survive the increase in 192 00:11:09,000 --> 00:11:12,360 Roger Montgomery: interest rates without pushing the economy into a deep recession. 193 00:11:12,600 --> 00:11:15,450 Roger Montgomery: So these few people who are going to switch from 194 00:11:15,450 --> 00:11:18,900 Roger Montgomery: fixed to variable, they're not going to be the straw 195 00:11:18,900 --> 00:11:21,539 Roger Montgomery: that breaks the camel's back, so to speak. So I 196 00:11:21,540 --> 00:11:25,588 Roger Montgomery: was just saying that everyone's unnecessarily concerned about this. It 197 00:11:25,590 --> 00:11:27,660 Roger Montgomery: won't be a cliff, it'll be a gutter that we'll 198 00:11:27,660 --> 00:11:30,000 Roger Montgomery: step over. It will be a speed bump, not a 199 00:11:30,000 --> 00:11:31,170 Roger Montgomery: cliff that we'll all fall off. 200 00:11:31,620 --> 00:11:33,718 Jennifer Duke: I don't think I can argue with that logic. And 201 00:11:33,719 --> 00:11:36,358 Jennifer Duke: just finally, what should investors be keeping an eye on 202 00:11:36,360 --> 00:11:36,990 Jennifer Duke: for the week ahead? 203 00:11:37,799 --> 00:11:40,199 Roger Montgomery: Well, we're still in the thick of reporting season, so 204 00:11:40,199 --> 00:11:43,050 Roger Montgomery: it's going to be a busy week. And again, I 205 00:11:43,050 --> 00:11:46,170 Roger Montgomery: think everyone will be thinking very, very carefully about the 206 00:11:46,170 --> 00:11:50,730 Roger Montgomery: businesses that sell to retail. So Universal Store, for example, 207 00:11:50,730 --> 00:11:52,500 Roger Montgomery: will be reporting next week. And these are some of 208 00:11:52,500 --> 00:11:55,019 Roger Montgomery: the smaller cap companies because I think that's where the 209 00:11:55,020 --> 00:11:58,230 Roger Montgomery: interesting stories really are. Obviously, the headlines are dominated by 210 00:11:58,230 --> 00:12:00,870 Roger Montgomery: the majors. But really what we want to know is 211 00:12:00,870 --> 00:12:03,328 Roger Montgomery: what's going on in consumer land because it's the biggest 212 00:12:03,330 --> 00:12:06,540 Roger Montgomery: part of our economy. So Kogan will be out, Domino's 213 00:12:06,540 --> 00:12:09,809 Roger Montgomery: Pizza will be out. Breville will report. Breville's an interesting 214 00:12:09,809 --> 00:12:12,090 Roger Montgomery: business, just as an aside, because a lot of people 215 00:12:12,090 --> 00:12:13,830 Roger Montgomery: think of it as a retail business. They don't have 216 00:12:13,830 --> 00:12:16,920 Roger Montgomery: any stores. They sell through other stores. They are a 217 00:12:16,920 --> 00:12:19,860 Roger Montgomery: brand ambassador, if you like, and an inventor. So we 218 00:12:19,860 --> 00:12:23,160 Roger Montgomery: really like that business. That'll be an interesting one as 219 00:12:23,160 --> 00:12:26,848 Roger Montgomery: well. Ardent Leisure will come out, so we'll see how 220 00:12:27,120 --> 00:12:32,579 Roger Montgomery: spending on recreation is going. So there are some interesting 221 00:12:32,580 --> 00:12:35,609 Roger Montgomery: retail businesses that will be putting out their results, and all 222 00:12:35,609 --> 00:12:36,179 Roger Montgomery: eyes will be on them. 223 00:12:37,020 --> 00:12:39,328 Jennifer Duke: Roger, thank you very much for talking to Fear and Greed. 224 00:12:39,720 --> 00:12:41,370 Roger Montgomery: Great to be on the program again. Look forward to 225 00:12:41,370 --> 00:12:42,210 Roger Montgomery: talking with you again soon. 226 00:12:42,929 --> 00:12:45,389 Jennifer Duke: And that was Roger Montgomery, the Founder and Chief Investment 227 00:12:45,389 --> 00:12:48,690 Jennifer Duke: Officer of Montgomery Investment Management. This is the Fear and 228 00:12:48,690 --> 00:12:52,259 Jennifer Duke: Greed daily interview. Remember, this information is general in nature, 229 00:12:52,260 --> 00:12:55,080 Jennifer Duke: and you should seek professional advice before making any investment 230 00:12:55,080 --> 00:12:57,780 Jennifer Duke: decisions. Join us every morning for the full episode of 231 00:12:57,780 --> 00:13:01,350 Jennifer Duke: Fear and Greed, Australia's most popular business podcast. I'm Jennifer 232 00:13:01,350 --> 00:13:04,080 Jennifer Duke: Duke, economics correspondent for Capital Brief. I'm filling in for 233 00:13:04,080 --> 00:13:05,790 Jennifer Duke: Sean Aylmer. Have a great day.