1 00:00:05,640 --> 00:00:08,440 Speaker 1: Welcome to the Fearing Greed Business Interview. I'm suan Aylmer. 2 00:00:08,600 --> 00:00:11,600 Speaker 1: Reporting season is in full swing and last week we 3 00:00:11,720 --> 00:00:14,680 Speaker 1: saw results from a host of big Australian companies including 4 00:00:14,680 --> 00:00:18,560 Speaker 1: Commonwealth Bank, JB, HiFi, csl IAG a bunch of them. 5 00:00:18,920 --> 00:00:22,000 Speaker 1: Already we're seeing some themes emerging, So today I wanted 6 00:00:22,040 --> 00:00:23,800 Speaker 1: to look at the three key themes that have come 7 00:00:23,800 --> 00:00:26,840 Speaker 1: out of earning season so far and what that means 8 00:00:26,880 --> 00:00:28,880 Speaker 1: for the rest of the company still to report. Of course, 9 00:00:28,880 --> 00:00:32,240 Speaker 1: the information in this episode is general in nature doesn't 10 00:00:32,240 --> 00:00:34,880 Speaker 1: take into account your own circumstances, so you should always 11 00:00:34,920 --> 00:00:37,160 Speaker 1: do your own research and seek professional advice before making 12 00:00:37,200 --> 00:00:41,520 Speaker 1: investment decisions. Lachlan the Halloway is the equity market strategist 13 00:00:41,560 --> 00:00:44,480 Speaker 1: at morning Star. Lachlan, welcome back to Fear and Greed. 14 00:00:44,800 --> 00:00:45,519 Speaker 2: Thanks for omy. 15 00:00:46,240 --> 00:00:48,560 Speaker 1: Do you like earning season, Lachlan like, do you actually 16 00:00:48,600 --> 00:00:50,199 Speaker 1: get to see family and friends or not. 17 00:00:51,040 --> 00:00:53,000 Speaker 2: Look, it's a busy time. It's a busy time, but 18 00:00:53,080 --> 00:00:55,480 Speaker 2: it's an interesting time because if you are an investor, 19 00:00:55,640 --> 00:00:58,040 Speaker 2: this is the opportunity to open on the books and 20 00:00:58,560 --> 00:01:01,680 Speaker 2: take a look at how management's allocating. You know, your 21 00:01:01,680 --> 00:01:04,679 Speaker 2: capital's a shareholder and how your business performing. And that's 22 00:01:04,720 --> 00:01:07,000 Speaker 2: a great thing. So to the extent that we can 23 00:01:07,000 --> 00:01:09,039 Speaker 2: provide a little bit of clarity for our clients during 24 00:01:09,040 --> 00:01:12,520 Speaker 2: this very busy period' that's rewarding. But yeah, it's it's busy. 25 00:01:13,360 --> 00:01:14,199 Speaker 2: It's about that. 26 00:01:14,680 --> 00:01:17,680 Speaker 1: Okay, So let's jump into it. We're looking at three 27 00:01:17,760 --> 00:01:20,600 Speaker 1: key themes that have come out of the results so far. 28 00:01:20,959 --> 00:01:22,200 Speaker 1: So give me the first one. 29 00:01:22,520 --> 00:01:24,600 Speaker 2: Yeah, So from us, I think we'd call out the 30 00:01:25,160 --> 00:01:29,440 Speaker 2: recovery of the consumer or tentative signs of the consumers recovering. 31 00:01:30,040 --> 00:01:33,200 Speaker 2: We've seen some evidence. Obviously, we're still early day's earning season, right, 32 00:01:33,240 --> 00:01:35,640 Speaker 2: I meant as as a Thursday last week, I think 33 00:01:35,680 --> 00:01:38,199 Speaker 2: we had thirty four companies that reported out of about 34 00:01:38,240 --> 00:01:40,760 Speaker 2: one hundred and eighty companies we cover the reporter's earning season. 35 00:01:40,800 --> 00:01:42,720 Speaker 2: So it's very early days and we have to recognize 36 00:01:42,720 --> 00:01:46,200 Speaker 2: that when we're making broad sweeping generalizations about themes. But 37 00:01:46,480 --> 00:01:49,320 Speaker 2: what we are seeing so far is that there's evidence 38 00:01:49,320 --> 00:01:50,920 Speaker 2: that we are seeing a bit of a pickup in 39 00:01:51,000 --> 00:01:53,000 Speaker 2: retail and in the consumer and the health of the consumer. 40 00:01:53,280 --> 00:01:56,360 Speaker 2: Think about results here, you know, JBI high fives really 41 00:01:56,520 --> 00:01:59,040 Speaker 2: impressed us on the in terms of their sales number 42 00:01:59,040 --> 00:02:01,560 Speaker 2: of eight percent sales is quite strong, and it suggests 43 00:02:01,560 --> 00:02:03,640 Speaker 2: that the mentum is coming back, and the trading update 44 00:02:03,680 --> 00:02:06,840 Speaker 2: they gave after the half had finished also looked fairly positive. 45 00:02:07,360 --> 00:02:10,440 Speaker 2: We're also seeing some positive results from the smaller retails 46 00:02:10,440 --> 00:02:13,160 Speaker 2: now online pure plays like Temple, Webster and Cogan. They're 47 00:02:13,160 --> 00:02:16,119 Speaker 2: getting strong numbers as well. So it looks like we're 48 00:02:16,160 --> 00:02:19,120 Speaker 2: getting a bit of a resumption in terms of the 49 00:02:19,160 --> 00:02:22,760 Speaker 2: consumer and I suppose relatedly with Commonwealth banks numbers and 50 00:02:22,800 --> 00:02:26,280 Speaker 2: their reduction in financial hardship, it's also suggesting that things 51 00:02:26,320 --> 00:02:28,560 Speaker 2: are improving. As you know, the labor market remains strong 52 00:02:28,600 --> 00:02:31,600 Speaker 2: and the tax cuts start to start to hit bank accounts. 53 00:02:31,639 --> 00:02:34,520 Speaker 2: So generally that's the first theme that we're seeing in 54 00:02:34,520 --> 00:02:36,239 Speaker 2: this early stage recording season. 55 00:02:36,040 --> 00:02:38,320 Speaker 1: And this of course before any interest rate cut that 56 00:02:38,360 --> 00:02:39,440 Speaker 1: we might get this week. 57 00:02:39,680 --> 00:02:42,120 Speaker 2: Yeah, exactly. I mean it's interesting to see that it's 58 00:02:42,200 --> 00:02:45,519 Speaker 2: kind of a bit preemptive. I mean, obviously the RBA 59 00:02:46,320 --> 00:02:48,880 Speaker 2: finished hiking rates a while ago, and perhaps now the 60 00:02:48,960 --> 00:02:51,040 Speaker 2: worst so to speak of the tightening is now sort 61 00:02:51,040 --> 00:02:52,680 Speaker 2: of filtered through the system, like this was sort of 62 00:02:52,680 --> 00:02:55,680 Speaker 2: peak peak impact of the rate hikes, and maybe you 63 00:02:55,720 --> 00:02:59,440 Speaker 2: know that's stabilized, and then you get the additional sort 64 00:02:59,480 --> 00:03:02,200 Speaker 2: of kick, so to speak, of the energy bill's subsidy 65 00:03:02,240 --> 00:03:06,600 Speaker 2: and also the tax cuts. So it's encouraging and obviously 66 00:03:06,760 --> 00:03:10,560 Speaker 2: for retailers, you'd think, all things considered, things you'll get better, 67 00:03:10,560 --> 00:03:12,799 Speaker 2: and that's what we're expecting in the year ahead. 68 00:03:13,600 --> 00:03:16,040 Speaker 1: I love the fact that Jabhipha is almost the first company. 69 00:03:16,080 --> 00:03:17,480 Speaker 1: It's not the first, but it's among the first, and 70 00:03:17,520 --> 00:03:19,880 Speaker 1: Harvey Normans always just about the last company, so those 71 00:03:19,919 --> 00:03:23,200 Speaker 1: retailers are always bookend reporting season. Okay, that's theme number one, 72 00:03:23,320 --> 00:03:27,160 Speaker 1: the consumer discretionary stocks, retailers doing probably a bit better 73 00:03:27,200 --> 00:03:29,000 Speaker 1: than thought. Theme number two. 74 00:03:30,240 --> 00:03:33,079 Speaker 2: I'll stay in maybe the consumer sectory youth retail part 75 00:03:33,080 --> 00:03:35,200 Speaker 2: of the landscape because another thing we've picked up on, 76 00:03:35,240 --> 00:03:37,160 Speaker 2: and we've been talking about it for a while is 77 00:03:37,160 --> 00:03:41,280 Speaker 2: is the online e commerce shift and how that's progressing. 78 00:03:41,720 --> 00:03:43,280 Speaker 2: So we've held the view for a while now that 79 00:03:43,760 --> 00:03:47,560 Speaker 2: retailers were the strong online presence either on eachannel. Retailers 80 00:03:48,040 --> 00:03:50,600 Speaker 2: both brick and mortar and e commerce that have strong 81 00:03:50,720 --> 00:03:54,520 Speaker 2: retail or digital platforms and the pure players over time 82 00:03:54,640 --> 00:03:57,560 Speaker 2: should be the winners. As more and more people move online, 83 00:03:57,920 --> 00:04:00,920 Speaker 2: we're seeing again early days, we're seeing some that's resuming. 84 00:04:01,000 --> 00:04:03,520 Speaker 2: You know, obviously during Covid that sort of went through 85 00:04:03,560 --> 00:04:06,040 Speaker 2: the roof in terms of online penetration and migration and 86 00:04:06,040 --> 00:04:08,119 Speaker 2: then has in reopen it pulled back a bit. We're 87 00:04:08,160 --> 00:04:11,200 Speaker 2: seeing that trend resuming again, and that's that sort of 88 00:04:11,200 --> 00:04:14,280 Speaker 2: existent with our view about how things will play out again. 89 00:04:14,360 --> 00:04:16,240 Speaker 2: To go back to two names I spoke about earlier, 90 00:04:16,240 --> 00:04:18,599 Speaker 2: but Covid and Tembla Webster, you know, cog and sales 91 00:04:18,640 --> 00:04:20,280 Speaker 2: I think in the fourth quarter were about ten percent 92 00:04:20,320 --> 00:04:22,280 Speaker 2: temper Webster in the half or something like twenty four 93 00:04:22,279 --> 00:04:25,040 Speaker 2: percent growth, So we're talking really phenomenal growth rates even 94 00:04:25,040 --> 00:04:28,280 Speaker 2: against you know, JB, which is again it's predominantly a 95 00:04:28,279 --> 00:04:31,640 Speaker 2: brick and mortar retailer, but its online platform again had 96 00:04:31,720 --> 00:04:35,200 Speaker 2: really strong growth outpacing its brick and mortar. So it 97 00:04:35,200 --> 00:04:36,800 Speaker 2: looks like it was a taking chair from the other 98 00:04:36,880 --> 00:04:40,159 Speaker 2: name you mentioned, Harvey Norman, which has lower penetration online. 99 00:04:40,240 --> 00:04:43,479 Speaker 2: So that theme we're seeing start to play out. And again, 100 00:04:43,560 --> 00:04:47,200 Speaker 2: those those companies that are index stor position well for 101 00:04:47,240 --> 00:04:49,839 Speaker 2: the e commerce transition seemed to be the winners at 102 00:04:49,920 --> 00:04:50,719 Speaker 2: least thus far. 103 00:04:51,360 --> 00:04:59,120 Speaker 1: Stay with me, Lachlan, we'll be back in a minute. 104 00:05:00,440 --> 00:05:03,560 Speaker 1: My guest this morning is Lachlan Halloway, equity market strategist 105 00:05:03,560 --> 00:05:07,080 Speaker 1: at morning Star. So a third theme. So we've had 106 00:05:07,120 --> 00:05:09,440 Speaker 1: the first one being the return of the retailers, the 107 00:05:09,480 --> 00:05:14,400 Speaker 1: second being the online plays looking okay, the third theme Lcklin. 108 00:05:14,560 --> 00:05:17,279 Speaker 2: Yeah, sure, So we'll talk about the twitcher to the 109 00:05:17,279 --> 00:05:21,479 Speaker 2: miners basic materials. And obviously the gold story has been wow, 110 00:05:22,360 --> 00:05:25,080 Speaker 2: really framastic for investors there and for those god mining 111 00:05:25,080 --> 00:05:28,000 Speaker 2: companies expose that theme. But I think one that's more 112 00:05:28,000 --> 00:05:30,240 Speaker 2: important for our market, and I'll talk about that is 113 00:05:30,520 --> 00:05:34,440 Speaker 2: obviously how the iron ore miners are fairing things are. 114 00:05:34,560 --> 00:05:36,680 Speaker 2: You know, if we look at where we were last year, 115 00:05:36,760 --> 00:05:39,800 Speaker 2: we've got iron ore prices off some sixteen percent, and 116 00:05:39,800 --> 00:05:42,960 Speaker 2: obviously that's an impact for our big iron or minus BHP, 117 00:05:43,080 --> 00:05:46,080 Speaker 2: RAO and Fortescue. Somewhat offsetting that for BHP and Rio 118 00:05:46,200 --> 00:05:48,240 Speaker 2: is improvement of the copper price for us. He doesn't 119 00:05:48,279 --> 00:05:50,400 Speaker 2: have so much exposure there, so it's not as much 120 00:05:50,440 --> 00:05:52,760 Speaker 2: of an offset for them. So how that plays out 121 00:05:52,760 --> 00:05:54,520 Speaker 2: for the rest of the year is going to be 122 00:05:54,520 --> 00:05:58,640 Speaker 2: something we're watching very closely. With all this talk of tariffs, 123 00:05:58,720 --> 00:06:01,280 Speaker 2: and the tendro not to effects for the trin of 124 00:06:01,320 --> 00:06:05,159 Speaker 2: growth story and steal unuser demand. It's something that we 125 00:06:05,279 --> 00:06:08,320 Speaker 2: have to keep an eye on. We see both BEHP 126 00:06:08,440 --> 00:06:10,960 Speaker 2: and RaaS close to fairly valued now, which we haven't 127 00:06:11,000 --> 00:06:13,240 Speaker 2: for quite some time. So it looks like the risks 128 00:06:13,240 --> 00:06:15,040 Speaker 2: there are more or less priced in, which is good 129 00:06:15,080 --> 00:06:17,680 Speaker 2: because it opens up an investment set in the market 130 00:06:17,680 --> 00:06:19,960 Speaker 2: which we haven't seen is offering a lot of value 131 00:06:20,000 --> 00:06:22,760 Speaker 2: for a while now. But how that plays out is 132 00:06:22,800 --> 00:06:23,720 Speaker 2: going to be very important. 133 00:06:24,440 --> 00:06:27,640 Speaker 1: Okay, I'm just interested in Donald Trump and the US administration, 134 00:06:27,839 --> 00:06:29,960 Speaker 1: and this kind of follows on for the miners and 135 00:06:30,040 --> 00:06:33,800 Speaker 1: based metals and Tariff's potential tariffs. We don't really know 136 00:06:33,880 --> 00:06:36,040 Speaker 1: that's a day by day proposition exactly how that's going 137 00:06:36,080 --> 00:06:38,680 Speaker 1: to be implemented, but I know Ansel came out last 138 00:06:38,680 --> 00:06:41,400 Speaker 1: week and talked about increasing prices in the back of 139 00:06:41,400 --> 00:06:45,280 Speaker 1: Tariff's CSL vaccination business a bit tough when the head 140 00:06:45,320 --> 00:06:48,280 Speaker 1: of health in the US is anti vax. I think 141 00:06:48,360 --> 00:06:51,040 Speaker 1: Macquarie was another one who came out talking about the 142 00:06:51,080 --> 00:06:54,719 Speaker 1: sale of renewables and how that affects Donald Trump or 143 00:06:54,720 --> 00:06:58,599 Speaker 1: Donald Trump affects that has that Trump we said to 144 00:06:58,600 --> 00:07:02,159 Speaker 1: be hearing about Donald Trump be the administration in reporting 145 00:07:02,200 --> 00:07:05,280 Speaker 1: season not surprisingly, has it actually had a material impact 146 00:07:05,279 --> 00:07:05,960 Speaker 1: you think, and. 147 00:07:06,000 --> 00:07:09,880 Speaker 2: Will it look I mean, you would see too much 148 00:07:10,200 --> 00:07:12,080 Speaker 2: so far. I mean in the last half of last year. 149 00:07:12,080 --> 00:07:15,040 Speaker 2: Obviously that was that was very early days for Trump. 150 00:07:15,080 --> 00:07:17,600 Speaker 2: So I wouldn't expect it to be that visible in 151 00:07:17,640 --> 00:07:19,280 Speaker 2: the results that we're going to be seeing over the 152 00:07:19,320 --> 00:07:22,720 Speaker 2: next couple of weeks. The outlook, yes, you would expect 153 00:07:22,760 --> 00:07:24,680 Speaker 2: things like tariffs would would have an impact on certain 154 00:07:24,680 --> 00:07:26,560 Speaker 2: companies are exposed that way. Perhaps we can talk about 155 00:07:26,600 --> 00:07:28,480 Speaker 2: a few of those in a minute, but we've got 156 00:07:28,560 --> 00:07:31,960 Speaker 2: to be cautious in my opinion of a couple of things. Firstly, 157 00:07:32,080 --> 00:07:34,920 Speaker 2: how much we don't know about the outlook for tariffs. 158 00:07:34,920 --> 00:07:36,680 Speaker 2: It's a story that's changing by the minute. I mean 159 00:07:37,040 --> 00:07:40,040 Speaker 2: last years during trump slation campaign, they was talking of 160 00:07:40,080 --> 00:07:42,760 Speaker 2: a ten percent universal tariff and a sixty percent tariff 161 00:07:42,800 --> 00:07:46,040 Speaker 2: on China. Now we come to know his early administration 162 00:07:46,200 --> 00:07:48,560 Speaker 2: and we have ten percent tariff on China and then 163 00:07:48,600 --> 00:07:51,560 Speaker 2: tariff's on Canada and Mexico which were then suspended. Now 164 00:07:51,600 --> 00:07:53,960 Speaker 2: we have a talk of reciprocal tariffs. It's evolving by 165 00:07:54,040 --> 00:07:56,200 Speaker 2: the minute, and I think we'd be cautious about making, 166 00:07:57,000 --> 00:07:59,360 Speaker 2: so to speak, one way bets on the outcome of 167 00:07:59,360 --> 00:08:01,240 Speaker 2: a tariff because as we just don't know what's going 168 00:08:01,280 --> 00:08:03,280 Speaker 2: to happen and nobody else that's going to happen. But 169 00:08:03,400 --> 00:08:06,240 Speaker 2: to give you know, account example, I mean, one company 170 00:08:06,240 --> 00:08:08,840 Speaker 2: that we've talked about that would be a beneficiary, for example, 171 00:08:08,840 --> 00:08:11,480 Speaker 2: of tariff's on on global steel imports to the US 172 00:08:11,520 --> 00:08:14,040 Speaker 2: would be a company like Blue Scope. And you know, 173 00:08:14,120 --> 00:08:17,800 Speaker 2: the share price has broadly speaking reflected that that's true 174 00:08:17,800 --> 00:08:21,280 Speaker 2: if tariffs play out, you know, as to exten we 175 00:08:21,360 --> 00:08:23,360 Speaker 2: expect that Trump does put tariff's on and they do 176 00:08:23,440 --> 00:08:26,200 Speaker 2: stay in place. But I think the more interesting case 177 00:08:26,240 --> 00:08:28,800 Speaker 2: probably and this you kin't of missed this if you 178 00:08:28,880 --> 00:08:31,480 Speaker 2: just start applying these broad brushstrokes as well. This company 179 00:08:31,520 --> 00:08:33,360 Speaker 2: is an import of this company is an export and 180 00:08:33,400 --> 00:08:36,400 Speaker 2: from China and so on, is that some companies with 181 00:08:36,559 --> 00:08:39,280 Speaker 2: you know, motes competitive avantages actually do quite well even 182 00:08:39,320 --> 00:08:42,320 Speaker 2: in environments where you have a tariff. And for the 183 00:08:42,320 --> 00:08:44,400 Speaker 2: example of the case study have sort of useful last 184 00:08:44,400 --> 00:08:46,360 Speaker 2: week or so is Revel and b Rebel is a 185 00:08:46,720 --> 00:08:49,440 Speaker 2: is a manufacturer obviously of home appliances, and about half 186 00:08:49,440 --> 00:08:52,800 Speaker 2: its revenues and in the US, but manufactures almost all 187 00:08:52,840 --> 00:08:54,800 Speaker 2: of this in China. So on the surface, you'd say, right, 188 00:08:54,800 --> 00:08:57,960 Speaker 2: Brebel's a company there's unfavorably exposed to tariffs on China, 189 00:08:58,320 --> 00:09:00,600 Speaker 2: and you know, on the in the binary sense, that 190 00:09:00,800 --> 00:09:04,080 Speaker 2: is true. But in the last trade war in twenty sixteen, 191 00:09:04,160 --> 00:09:06,240 Speaker 2: Rebels Margins didn't even budge it. Passed it straight into 192 00:09:06,240 --> 00:09:09,120 Speaker 2: the consumer because it has a fantastic ramp perception in 193 00:09:09,160 --> 00:09:11,199 Speaker 2: the US. It's a luxury, it's well, it's well placed, 194 00:09:11,360 --> 00:09:13,520 Speaker 2: and has a lot of pricing power, so it just 195 00:09:13,559 --> 00:09:16,480 Speaker 2: sort of, you know, completely rolled through that really without 196 00:09:16,520 --> 00:09:18,720 Speaker 2: any sort of you know, obvious impact at all. So 197 00:09:19,160 --> 00:09:21,959 Speaker 2: if you can find those companies that have these competitive advantages, 198 00:09:22,240 --> 00:09:25,760 Speaker 2: they can sort of buck the obvious knee jerk response 199 00:09:25,920 --> 00:09:28,880 Speaker 2: to tariffs and emodees a valuable thing in any environment, 200 00:09:28,920 --> 00:09:31,200 Speaker 2: particularly when you've got this much uncertainty. I think that 201 00:09:31,240 --> 00:09:32,680 Speaker 2: comes inde even chart for focus. 202 00:09:33,160 --> 00:09:35,840 Speaker 1: Okay, so kind of quality companies that with pricing power 203 00:09:36,600 --> 00:09:41,360 Speaker 1: probably won't be hit as hard as the more commoditized organizations. 204 00:09:41,440 --> 00:09:43,600 Speaker 2: Yeah, well, I think they have more of a capacity 205 00:09:43,600 --> 00:09:45,320 Speaker 2: about to pass it on to the consumer. So I 206 00:09:45,320 --> 00:09:47,360 Speaker 2: think that's fair. I said, Look, the general's being there'll 207 00:09:47,360 --> 00:09:50,360 Speaker 2: be impacts, but their ability to withstand that and pass 208 00:09:50,400 --> 00:09:51,640 Speaker 2: it through looks much higher. 209 00:09:51,960 --> 00:09:54,560 Speaker 1: Final question, Lachlan, Week one, Well, it's not weak one, 210 00:09:54,600 --> 00:09:56,600 Speaker 1: but you know the first big week is over. Do 211 00:09:56,640 --> 00:09:59,600 Speaker 1: you have a favorite result? Do you have favorite results 212 00:09:59,600 --> 00:10:01,280 Speaker 1: as an or you're not supposed to? 213 00:10:01,920 --> 00:10:05,160 Speaker 2: Well, I mean the ones we catch our eye obviously. 214 00:10:05,200 --> 00:10:08,200 Speaker 2: I think you know we've seen this as fairly positive 215 00:10:08,280 --> 00:10:11,160 Speaker 2: overall in terms of earning season. I mean, we we 216 00:10:11,200 --> 00:10:13,440 Speaker 2: cover about one hundred and eighty companies and you know, 217 00:10:13,600 --> 00:10:15,960 Speaker 2: as of late last week, about twenty percent or so 218 00:10:16,040 --> 00:10:20,600 Speaker 2: had already reported, and generally speaking, we've brought just for context, 219 00:10:20,600 --> 00:10:22,319 Speaker 2: we write a fair value for each business. It's a 220 00:10:22,360 --> 00:10:26,559 Speaker 2: DCF based valuation, and we've upgraded our valuation for about 221 00:10:26,559 --> 00:10:28,800 Speaker 2: half the companies that have reported. We haven't made any 222 00:10:28,840 --> 00:10:31,080 Speaker 2: downgrades yet, and the other half that we didn't upgrade 223 00:10:31,120 --> 00:10:34,000 Speaker 2: were we just maintained fair value for those businesses. So overall, 224 00:10:34,080 --> 00:10:37,439 Speaker 2: that's actually a pretty positive start, and you know, we 225 00:10:37,760 --> 00:10:39,959 Speaker 2: had some really big results. Like I said Jbhifo talked 226 00:10:39,960 --> 00:10:42,680 Speaker 2: about earlier, the upgradeed that fairly substantially. I think about 227 00:10:42,679 --> 00:10:45,559 Speaker 2: seven percent on the day because sales was taking a 228 00:10:45,559 --> 00:10:47,920 Speaker 2: lot of share and sales was stronger than we were expecting. 229 00:10:47,920 --> 00:10:50,520 Speaker 2: So that's positive still when our opinion looks overvalued. But 230 00:10:50,800 --> 00:10:52,679 Speaker 2: it was a strong result, so that's why i'd call 231 00:10:52,720 --> 00:10:54,720 Speaker 2: out as being positive. But generally speaking, the signs we're 232 00:10:54,720 --> 00:10:57,600 Speaker 2: seeing so far cave out that it's early days that 233 00:10:57,640 --> 00:10:59,920 Speaker 2: it's been a positive earning season to date. 234 00:11:00,400 --> 00:11:02,120 Speaker 1: Lachlan, thank you for talking to Fear and Greed. 235 00:11:02,400 --> 00:11:02,720 Speaker 2: Thank you. 236 00:11:03,360 --> 00:11:06,640 Speaker 1: That was morning Star equity market strategist Lachlan Hallaway. This 237 00:11:06,760 --> 00:11:09,000 Speaker 1: is the Fear and Greed Business Interview. Remember this is 238 00:11:09,040 --> 00:11:11,760 Speaker 1: general information only, and you should see professional advice before 239 00:11:11,800 --> 00:11:15,200 Speaker 1: making investment decisions. Join us every morning for the full 240 00:11:15,240 --> 00:11:17,559 Speaker 1: episode of Fear and Greed, daily business news for people 241 00:11:17,559 --> 00:11:20,320 Speaker 1: who make their own decisions. I'm Sean Elma. I'm enjoy 242 00:11:20,320 --> 00:11:20,640 Speaker 1: you today.