1 00:00:05,700 --> 00:00:08,400 Sean Aylmer: Welcome to the Fear & Greed Business Interview. I'm Sean Aylmer. 2 00:00:08,429 --> 00:00:10,590 Sean Aylmer: We're now a week into the new financial year, so 3 00:00:10,590 --> 00:00:13,289 Sean Aylmer: I wanted to get a few ideas about potential opportunities 4 00:00:13,289 --> 00:00:16,139 Sean Aylmer: for investors across the next 12 months. We've asked one 5 00:00:16,139 --> 00:00:18,780 Sean Aylmer: of our favorite market analysts for five stocks she's keeping 6 00:00:18,780 --> 00:00:21,900 Sean Aylmer: an eye on. Remember, this is general information only. You 7 00:00:21,900 --> 00:00:25,140 Sean Aylmer: should always seek professional advice before making any investment decisions. 8 00:00:25,410 --> 00:00:28,380 Sean Aylmer: Grady Wulff is a market analyst at trading platform, Bell 9 00:00:28,380 --> 00:00:31,469 Sean Aylmer: Direct, part of the ASX listed Bell Financial Group. Grady, 10 00:00:31,469 --> 00:00:32,640 Sean Aylmer: welcome back to Fear & Greed. 11 00:00:32,790 --> 00:00:34,739 Grady Wulff: Thanks for having me again, Sean. I love coming on 12 00:00:34,739 --> 00:00:35,190 Grady Wulff: the show. 13 00:00:35,340 --> 00:00:38,458 Sean Aylmer: Oh, thank you very much. You have picked five crackers, 14 00:00:38,580 --> 00:00:41,940 Sean Aylmer: some of which I know very little about. Starting with the 15 00:00:42,000 --> 00:00:44,190 Sean Aylmer: very first one, which perhaps I should know. It's a one 16 00:00:44,190 --> 00:00:48,120 Sean Aylmer: and a half billion- dollar company nowadays. Clarity Pharmaceuticals, what 17 00:00:48,120 --> 00:00:49,080 Sean Aylmer: do you like about that one? 18 00:00:49,530 --> 00:00:53,369 Grady Wulff: So the ticker code, CU6, it's one of the new ones on the radar this 19 00:00:53,369 --> 00:00:55,589 Grady Wulff: year and we know the healthcare sector outperforms the market over a 10- 20 00:00:56,040 --> 00:00:57,840 Grady Wulff: year period, but it has been sold off over the 21 00:00:57,840 --> 00:01:00,600 Grady Wulff: last year, and Clarity is one of the names rising 22 00:01:00,600 --> 00:01:03,660 Grady Wulff: to the top of this sector, and it's purely because 23 00:01:03,660 --> 00:01:06,839 Grady Wulff: of its radiopharmaceuticals in the cancer space. So they've got 24 00:01:07,049 --> 00:01:10,619 Grady Wulff: this radiopharmaceutical biomarkers that link to the cancer in the 25 00:01:10,619 --> 00:01:15,000 Grady Wulff: prostate for obviously males, and they've obviously got a treatment 26 00:01:15,000 --> 00:01:17,220 Grady Wulff: out as well. So not only the imaging, but they've 27 00:01:17,220 --> 00:01:20,220 Grady Wulff: also got a treatment out. So they've been on a massive run this year. 28 00:01:20,490 --> 00:01:22,289 Grady Wulff: But we do have a spec by rating on them. 29 00:01:22,289 --> 00:01:24,929 Grady Wulff: Speculative just because they're yet to make some money, but 30 00:01:25,139 --> 00:01:29,100 Grady Wulff: their clinical trials are showing really positive signs. In this 31 00:01:29,100 --> 00:01:32,130 Grady Wulff: cancer space, you've obviously got Telix Pharmaceuticals is another one, 32 00:01:32,130 --> 00:01:34,260 Grady Wulff: but they can completely are different. So I spoke to 33 00:01:34,260 --> 00:01:38,370 Grady Wulff: the managing director recently, Dr. Alan Taylor, and he said, " 34 00:01:38,370 --> 00:01:40,470 Grady Wulff: We're very different to Telix. We work in the radiopharmaceuticals." 35 00:01:40,470 --> 00:01:44,519 Grady Wulff: So their most recent results came out with the secure 36 00:01:44,520 --> 00:01:46,980 Grady Wulff: trial, and that's in phase three right now. And what 37 00:01:46,980 --> 00:01:50,250 Grady Wulff: that's shown is that their patient that has been undergone 38 00:01:50,250 --> 00:01:54,720 Grady Wulff: with their treatment, the drug that they're testing has actually 39 00:01:54,720 --> 00:01:57,450 Grady Wulff: been cancer free for six months, and that is just 40 00:01:57,450 --> 00:02:00,840 Grady Wulff: incredible. So with that in mind, there's not many cancer 41 00:02:00,840 --> 00:02:04,379 Grady Wulff: treatments out there, and obviously chemotherapy is very aggressive and 42 00:02:04,379 --> 00:02:07,170 Grady Wulff: kills healthy cells as well. So for someone like Clarity 43 00:02:07,170 --> 00:02:09,960 Grady Wulff: Pharmaceuticals coming out with this trial and these results, it 44 00:02:09,960 --> 00:02:14,040 Grady Wulff: is astronomical. It's phenomenal. And so we are excited about 45 00:02:14,040 --> 00:02:16,260 Grady Wulff: the progress for them and what the future look like 46 00:02:16,320 --> 00:02:19,469 Grady Wulff: because obviously with therapy drugs, they make a lot more 47 00:02:19,469 --> 00:02:22,649 Grady Wulff: revenue than the imaging agents do. So with that in 48 00:02:22,650 --> 00:02:26,100 Grady Wulff: mind, we can look forward to a potentially massive revenue 49 00:02:26,100 --> 00:02:28,650 Grady Wulff: runway should they go through the submission process in the 50 00:02:28,650 --> 00:02:31,470 Grady Wulff: near future. So we've got some more undergoing trials for 51 00:02:31,470 --> 00:02:35,639 Grady Wulff: them with the double dosage of eight ... It's GBQ but 52 00:02:35,639 --> 00:02:37,230 Grady Wulff: I don't know the actual word. I know the word, 53 00:02:37,230 --> 00:02:38,100 Grady Wulff: but I just can't say it. 54 00:02:38,100 --> 00:02:38,401 Sean Aylmer: Yeah, with you. 55 00:02:38,401 --> 00:02:44,400 Grady Wulff: Yeah, it's healthcare. Dosage of their drug but the results so far are looking 56 00:02:44,400 --> 00:02:48,780 Grady Wulff: phenomenal and really good at market runway to commercialization. They've 57 00:02:48,780 --> 00:02:51,629 Grady Wulff: also got seven other clinical trials in progress, so that's 58 00:02:51,630 --> 00:02:54,659 Grady Wulff: a really, really good sign because often you get a 59 00:02:54,660 --> 00:02:57,450 Grady Wulff: healthcare company with one clinical trial and one drug they're 60 00:02:57,450 --> 00:03:00,449 Grady Wulff: testing, which is heavily reliant on this drug making it 61 00:03:00,449 --> 00:03:03,869 Grady Wulff: to market. But with Clarity Pharmaceuticals, they have seven different 62 00:03:03,870 --> 00:03:07,530 Grady Wulff: ones. So that's a really huge revenue and global addressable 63 00:03:07,530 --> 00:03:08,220 Grady Wulff: market for them. 64 00:03:08,639 --> 00:03:11,400 Sean Aylmer: Okay, so there's speculative buy on that. I suppose it's 65 00:03:11,400 --> 00:03:13,650 Sean Aylmer: important to mention the risks in this too, because they 66 00:03:13,650 --> 00:03:18,719 Sean Aylmer: are clinical trials and they're extremely rigorous. And so most 67 00:03:18,720 --> 00:03:22,050 Sean Aylmer: clinical trials, I dare say, don't come to fruition in terms of 68 00:03:22,050 --> 00:03:23,970 Sean Aylmer: a drug that makes it to market. Is that fair? 69 00:03:24,090 --> 00:03:27,540 Grady Wulff: Yes, a lot don't, a lot definitely don't because they 70 00:03:27,540 --> 00:03:29,639 Grady Wulff: can have as many good clinical trials as you can, 71 00:03:29,639 --> 00:03:33,539 Grady Wulff: but one negative one can definitely deter the FDA or 72 00:03:33,540 --> 00:03:38,550 Grady Wulff: TGA from approving it ever. So Clarity Pharmaceuticals are really making 73 00:03:38,550 --> 00:03:42,060 Grady Wulff: waves in their way to submission to commercialization, but the 74 00:03:42,060 --> 00:03:44,910 Grady Wulff: speculative risk is to do with they don't have approval 75 00:03:44,910 --> 00:03:48,060 Grady Wulff: yet, so they're looking really good, but there's a risk involved. 76 00:03:48,389 --> 00:03:51,960 Sean Aylmer: Okay. You mentioned in that discussion, Telix, Pharmaceuticals, you like 77 00:03:51,960 --> 00:03:52,680 Sean Aylmer: that one as well? 78 00:03:52,980 --> 00:03:55,950 Grady Wulff: We do. We have a buy rating on Telix Pharmaceuticals. This is one 79 00:03:55,950 --> 00:03:57,480 Grady Wulff: I've talked about for a little while now, and it 80 00:03:57,480 --> 00:04:00,390 Grady Wulff: continues to go from strength to strength. Again, this plays 81 00:04:00,390 --> 00:04:02,669 Grady Wulff: in the field of not just relying on one drug 82 00:04:02,670 --> 00:04:05,700 Grady Wulff: or treatment. So Telix is known for their Illuccix drug or 83 00:04:05,700 --> 00:04:09,630 Grady Wulff: Illuccix imaging agent that binds to ... It's actually, I think 84 00:04:09,630 --> 00:04:11,669 Grady Wulff: it's injected in the arm and it binds to the 85 00:04:11,670 --> 00:04:15,300 Grady Wulff: cancer cells and shows exactly on a scan, exactly which 86 00:04:15,300 --> 00:04:18,960 Grady Wulff: cells are cancerous. It starts in the prostate, the first 87 00:04:18,960 --> 00:04:21,870 Grady Wulff: drugs and imaging agents are for the prostate. They're working 88 00:04:21,870 --> 00:04:25,200 Grady Wulff: on kidney ones as well, and also brain cancer imaging 89 00:04:25,200 --> 00:04:29,250 Grady Wulff: agent and therapies. So with Telix, they've already got commercialization, 90 00:04:29,250 --> 00:04:31,710 Grady Wulff: so that's a huge tick in the healthcare space, they've 91 00:04:31,710 --> 00:04:35,100 Grady Wulff: got a massive revenue runway and global addressable market, and 92 00:04:35,100 --> 00:04:37,890 Grady Wulff: they've got ... So Illuccix is funding money, so they're not going 93 00:04:37,890 --> 00:04:41,130 Grady Wulff: to rely on shareholders' money anymore. They've got money coming 94 00:04:41,130 --> 00:04:43,500 Grady Wulff: in so they can fund their clinical trials for other 95 00:04:43,500 --> 00:04:47,010 Grady Wulff: drugs, and their outlook is really strong for their new 96 00:04:47,010 --> 00:04:50,669 Grady Wulff: drug, which is the therapy treatment of prostate cancer. So 97 00:04:50,940 --> 00:04:53,610 Grady Wulff: obviously Illuccix is the imaging agent, then you partner that 98 00:04:53,610 --> 00:04:56,849 Grady Wulff: with the therapy drug, and then it's a massive global 99 00:04:56,849 --> 00:04:59,969 Grady Wulff: addressable market. It's a really strategic move because when you 100 00:04:59,969 --> 00:05:02,909 Grady Wulff: get the imaging agent approved, all of these doctors out 101 00:05:02,910 --> 00:05:05,490 Grady Wulff: there start using it and then they trust the Telix 102 00:05:05,490 --> 00:05:08,130 Grady Wulff: brand. So when they do launch the therapy product and 103 00:05:08,130 --> 00:05:10,470 Grady Wulff: agent, they're already familiar with the brand and they can 104 00:05:10,470 --> 00:05:13,470 Grady Wulff: start using it straight away. So distribution won't be a 105 00:05:13,470 --> 00:05:16,618 Grady Wulff: problem for Telix. So it's a really, really exciting time 106 00:05:16,620 --> 00:05:19,198 Grady Wulff: on the horizon for them. And the therapy drug makes 107 00:05:19,678 --> 00:05:23,129 Grady Wulff: a massive, massive amount of profits and revenues compared to 108 00:05:23,129 --> 00:05:26,370 Grady Wulff: the imaging agents. So I think it's about 2, 500 109 00:05:26,370 --> 00:05:29,340 Grady Wulff: per patient per dose US dollars for imaging agents verse 110 00:05:29,370 --> 00:05:35,010 Grady Wulff: 250,000 for the therapy drug dose. So it's an incredible 111 00:05:35,010 --> 00:05:37,770 Grady Wulff: amount of money, but their evaluation is certainly worth it 112 00:05:37,770 --> 00:05:39,060 Grady Wulff: for Telix Pharmaceuticals. 113 00:05:39,599 --> 00:05:41,430 Sean Aylmer: Stay with me, Grady. We'll be back in a minute. 114 00:05:48,600 --> 00:05:51,270 Sean Aylmer: I am speaking to Grady Wulff, market analyst at Bell 115 00:05:51,270 --> 00:05:57,178 Sean Aylmer: Direct. Okay, let's change tack here. Mineral Resources, mining services 116 00:05:57,178 --> 00:06:00,240 Sean Aylmer: company. It hasn't had a good run in recent months. 117 00:06:00,240 --> 00:06:02,070 Sean Aylmer: It's come off a lot. Perhaps that's why it's a 118 00:06:02,070 --> 00:06:03,810 Sean Aylmer: buy according to you guys. 119 00:06:03,870 --> 00:06:06,029 Grady Wulff: Yeah, MinRes is one that's been on our radar for 120 00:06:06,029 --> 00:06:08,549 Grady Wulff: a while. I actually own some MinRes shares myself. I'm 121 00:06:08,550 --> 00:06:10,529 Grady Wulff: not talking about it because I own it. I bought 122 00:06:10,529 --> 00:06:13,260 Grady Wulff: it after doing a lot of research into the company. 123 00:06:13,559 --> 00:06:16,199 Grady Wulff: And I really love how Chris Ellison manages this company 124 00:06:16,260 --> 00:06:19,230 Grady Wulff: because in a mining space, you generally just have an 125 00:06:19,230 --> 00:06:21,600 Grady Wulff: asset or a few mines and you start producing and 126 00:06:21,600 --> 00:06:23,970 Grady Wulff: you sell the off- take and all of your commodity 127 00:06:23,970 --> 00:06:26,849 Grady Wulff: that you are mining for. But he's actually partnered it 128 00:06:26,849 --> 00:06:30,149 Grady Wulff: with the mining services division as well, which is obviously 129 00:06:30,150 --> 00:06:32,489 Grady Wulff: with having a commodity or a mine, you've got to 130 00:06:32,490 --> 00:06:36,389 Grady Wulff: ride the fluctuations of the commodity prices. So generally, lithium 131 00:06:36,389 --> 00:06:40,110 Grady Wulff: we've seen recently is sold off completely. And so companies 132 00:06:40,110 --> 00:06:42,930 Grady Wulff: in that sector are really heavily hurt by share price, 133 00:06:42,930 --> 00:06:46,830 Grady Wulff: by sales, everything goes down. But with MinRes, they're not 134 00:06:46,830 --> 00:06:49,799 Grady Wulff: tied to commodity prices. They have lithium, they have iron 135 00:06:49,799 --> 00:06:52,289 Grady Wulff: ore, which is great, but they also have this services 136 00:06:52,289 --> 00:06:55,710 Grady Wulff: division, which ensures they have a consistent revenue underlying and 137 00:06:55,710 --> 00:06:59,490 Grady Wulff: underpinning their earnings and profits and their operations every day. 138 00:06:59,490 --> 00:07:01,859 Grady Wulff: So they do have those contracts that makes sure they're 139 00:07:01,860 --> 00:07:04,860 Grady Wulff: continuing through all of the tough times in the commodity 140 00:07:04,860 --> 00:07:07,919 Grady Wulff: cycles. With the outlook for iron ore being quite strong 141 00:07:07,920 --> 00:07:10,410 Grady Wulff: still, we've seen a rally recently, we've still got strength 142 00:07:10,410 --> 00:07:13,890 Grady Wulff: in the horizon. Obviously, they've got their Onslow project, and 143 00:07:13,890 --> 00:07:16,890 Grady Wulff: that's just come online recently with the first production coming 144 00:07:16,890 --> 00:07:19,920 Grady Wulff: out. That was ahead of time and schedule and on 145 00:07:19,920 --> 00:07:22,889 Grady Wulff: budget, which is phenomenal for a mining company because quite 146 00:07:22,889 --> 00:07:25,800 Grady Wulff: often here our costs have blown out, CapEx is high, 147 00:07:25,830 --> 00:07:28,979 Grady Wulff: OpEx is high, but nope. Chris Ellison has managed to do 148 00:07:28,980 --> 00:07:32,310 Grady Wulff: a fantastic job there. They've also, in their third quarter, 149 00:07:32,700 --> 00:07:36,239 Grady Wulff: we've seen an increase in lithium spodumene prices, which I know is 150 00:07:36,240 --> 00:07:40,410 Grady Wulff: a wow factor because lithium has been so heavily sold 151 00:07:40,410 --> 00:07:43,679 Grady Wulff: off because of reduced demand. But looking forward, the demand 152 00:07:43,679 --> 00:07:45,839 Grady Wulff: is looking up and we are looking for a rebound 153 00:07:45,839 --> 00:07:48,150 Grady Wulff: in Lithium, and that's exactly where it's going to play 154 00:07:48,150 --> 00:07:50,760 Grady Wulff: in for a company like MinRes with their assets out 155 00:07:50,760 --> 00:07:53,610 Grady Wulff: there. So they've got a few different assets, they've got the 156 00:07:53,610 --> 00:07:56,520 Grady Wulff: mining services, they're looking really good heading into FY25. 157 00:07:56,910 --> 00:07:59,190 Sean Aylmer: Okay. Let's go onto a couple that I really know 158 00:07:59,190 --> 00:08:02,640 Sean Aylmer: nothing about. One you've got a buy on is Rural Funds Group. 159 00:08:03,150 --> 00:08:05,850 Grady Wulff: This one's a really interesting one. Now, the REIT sector 160 00:08:05,850 --> 00:08:08,100 Grady Wulff: is the sector that a lot of investors got wrong 161 00:08:08,100 --> 00:08:11,790 Grady Wulff: in recent times. Obviously you associate REIT with properties, with 162 00:08:11,790 --> 00:08:14,370 Grady Wulff: obviously property management, but then you've got a lot of 163 00:08:14,370 --> 00:08:17,340 Grady Wulff: investors thought it was simply retail and office spaces with 164 00:08:17,340 --> 00:08:19,589 Grady Wulff: the work from home policy, meaning a lot of office 165 00:08:19,590 --> 00:08:23,009 Grady Wulff: vacancies, investors thought there was a seriously ... It wasn't a 166 00:08:23,010 --> 00:08:26,010 Grady Wulff: good idea to buy into the REIT sector. But there's really good 167 00:08:26,220 --> 00:08:29,220 Grady Wulff: hidden gems within the REIT sector. And Rural Funds Group 168 00:08:29,220 --> 00:08:32,160 Grady Wulff: is one of those. Now they own acreage around Australia 169 00:08:32,160 --> 00:08:35,400 Grady Wulff: in the farmland area, in lots of different farmland areas, 170 00:08:35,400 --> 00:08:38,009 Grady Wulff: and they have different tenants that are listed like Treasury 171 00:08:38,009 --> 00:08:42,419 Grady Wulff: Wine Estates, Olam, (inaudible) and Select Harvest, for example. 172 00:08:42,450 --> 00:08:46,199 Grady Wulff: So obviously they're working with these different ag stocks. So 173 00:08:46,200 --> 00:08:48,270 Grady Wulff: what happens is they own the land and they lease 174 00:08:48,270 --> 00:08:50,610 Grady Wulff: it out to these companies. Now, when you're looking at 175 00:08:50,610 --> 00:08:52,920 Grady Wulff: a REIT stock, you want to look at the weighted 176 00:08:52,920 --> 00:08:56,160 Grady Wulff: average lease expiry, so their lease tenancies and their terms and 177 00:08:56,160 --> 00:08:59,160 Grady Wulff: the average across their portfolio. And a company is normally, 178 00:08:59,520 --> 00:09:02,970 Grady Wulff: in the REIT sectors, around 2 to 5 years, but there's is 13. 179 00:09:02,970 --> 00:09:05,670 Grady Wulff: 9 years. So what that says is that they've got 180 00:09:05,700 --> 00:09:09,510 Grady Wulff: annual recurring revenue locked in for between just below and 181 00:09:09,510 --> 00:09:12,630 Grady Wulff: just above 13. 9 years across all of their portfolio, 182 00:09:12,630 --> 00:09:15,659 Grady Wulff: which is really good. Because in the agricultural space, as 183 00:09:15,660 --> 00:09:17,219 Grady Wulff: we all know, you can be the best farmer in 184 00:09:17,219 --> 00:09:20,070 Grady Wulff: the world, but Mother Nature plays a part. And so 185 00:09:20,070 --> 00:09:23,940 Grady Wulff: an unfavorable crop season can lead to seriously bad revenues 186 00:09:23,940 --> 00:09:26,189 Grady Wulff: and bad earnings for a company in the ag sector. 187 00:09:26,490 --> 00:09:29,309 Grady Wulff: But Rural Funds has overcome this because they've locked in 188 00:09:29,309 --> 00:09:31,500 Grady Wulff: their tenants for so long, but also a lot of 189 00:09:31,500 --> 00:09:35,519 Grady Wulff: the contracts and the rental contracts, they're tied to inflation. 190 00:09:35,820 --> 00:09:38,189 Grady Wulff: And we know inflation has been quite high, and CPI 191 00:09:38,190 --> 00:09:41,370 Grady Wulff: has been high in Australia and sticky as well. So 192 00:09:41,460 --> 00:09:44,309 Grady Wulff: every increment up has seen a tick up in the 193 00:09:44,309 --> 00:09:48,959 Grady Wulff: prices that these tenants pay. So that's increased revenue for 194 00:09:48,960 --> 00:09:51,899 Grady Wulff: literally using the land that Rural Funds Group owns and 195 00:09:51,900 --> 00:09:54,900 Grady Wulff: operates. So it's a really good thing. And they also 196 00:09:54,900 --> 00:09:57,900 Grady Wulff: own their own land and they're developing their own macadamia 197 00:09:57,900 --> 00:09:59,521 Grady Wulff: farm. Now, I'm not sure about you, but- 198 00:09:59,521 --> 00:10:01,290 Sean Aylmer: Oh, I love the macadamia. Yep. 199 00:10:01,320 --> 00:10:02,821 Grady Wulff: I love them, but they're so expensive. 200 00:10:02,821 --> 00:10:04,320 Sean Aylmer: Expensive, yeah. Yeah, yeah, definitely. 201 00:10:04,710 --> 00:10:07,259 Grady Wulff: So the margins are so high on this and they're 202 00:10:07,259 --> 00:10:11,009 Grady Wulff: really capitalizing on this market. So with a favorable outlook 203 00:10:11,010 --> 00:10:13,468 Grady Wulff: for the winter crop coming forward, it really puts their 204 00:10:13,470 --> 00:10:16,800 Grady Wulff: whole portfolio and this macadamia portfolio in a really good 205 00:10:16,800 --> 00:10:20,098 Grady Wulff: position because we had the (inaudible) Report out recently. 206 00:10:20,099 --> 00:10:22,469 Grady Wulff: The winter crop is looking really good. La Nina and 207 00:10:22,469 --> 00:10:25,170 Grady Wulff: El Nino events are looking subdued. So that really puts 208 00:10:25,170 --> 00:10:26,880 Grady Wulff: all of our ag stocks in a really good front 209 00:10:26,880 --> 00:10:27,330 Grady Wulff: heading into FY25. 210 00:10:27,330 --> 00:10:31,320 Sean Aylmer: Okay. And the last one, just quickly, Propel Funeral Partners, 211 00:10:31,320 --> 00:10:32,610 Sean Aylmer: is that a play on demographics? 212 00:10:33,030 --> 00:10:36,840 Grady Wulff: It is, unfortunately, and with these companies, it's really sad 213 00:10:36,840 --> 00:10:41,160 Grady Wulff: to say, but a rising ... An aging population and higher 214 00:10:41,160 --> 00:10:44,370 Grady Wulff: death rate in Australia leads to more money for a 215 00:10:44,370 --> 00:10:47,069 Grady Wulff: company like Propel Funeral Partners, which is a sad fact. 216 00:10:47,070 --> 00:10:48,961 Grady Wulff: But we all need a good funeral out there. 217 00:10:48,961 --> 00:10:49,200 Sean Aylmer: We do. 218 00:10:49,200 --> 00:10:52,140 Grady Wulff: And the price of funerals has been going through the 219 00:10:52,140 --> 00:10:56,069 Grady Wulff: roof, and this company is among the most ... I think 220 00:10:56,070 --> 00:11:00,509 Grady Wulff: it's the second largest in Australia, across Australia for crematorium, 221 00:11:00,509 --> 00:11:04,350 Grady Wulff: for funerals, pet funerals, even. Apparently people have pet funerals 222 00:11:04,350 --> 00:11:07,620 Grady Wulff: now because we love our fur babies out there. But 223 00:11:07,830 --> 00:11:10,230 Grady Wulff: no, so Propel Funeral Partners, they've been on a really 224 00:11:10,230 --> 00:11:14,670 Grady Wulff: strong M& A activity recently, so acquisitions across Australia to 225 00:11:14,670 --> 00:11:17,699 Grady Wulff: bolster their portfolio and really support this growing need for 226 00:11:17,700 --> 00:11:21,690 Grady Wulff: funerals around Australia. They've also increased prices, so again, margins 227 00:11:21,690 --> 00:11:23,609 Grady Wulff: are going up, which is a very good thing in 228 00:11:23,609 --> 00:11:26,670 Grady Wulff: this environment, and we continue to see that over the 229 00:11:26,670 --> 00:11:28,740 Grady Wulff: next few years, they're going to continue this M& A 230 00:11:28,740 --> 00:11:31,350 Grady Wulff: strategy and that will really put them as one of 231 00:11:31,350 --> 00:11:34,049 Grady Wulff: the leading providers in Australia. We also see them as 232 00:11:34,050 --> 00:11:37,469 Grady Wulff: quite defensive in the market right now, because no matter 233 00:11:37,469 --> 00:11:41,339 Grady Wulff: any economic cycle, everyone does need a funeral who passes away. 234 00:11:41,489 --> 00:11:43,770 Sean Aylmer: Indeed. Grady, thank you for talking to Fear & Greed. 235 00:11:44,160 --> 00:11:45,030 Grady Wulff: Thanks for having me. 236 00:11:45,450 --> 00:11:48,090 Sean Aylmer: That was Bell Direct market analyst, Grady Wulff. This is 237 00:11:48,090 --> 00:11:50,789 Sean Aylmer: the Fear & Greed Business Interview. Remember, this is general information 238 00:11:50,790 --> 00:11:53,580 Sean Aylmer: only, and you should always seek professional advice before making 239 00:11:53,580 --> 00:11:56,219 Sean Aylmer: investment decisions. Join us every morning for the full episode 240 00:11:56,219 --> 00:11:59,579 Sean Aylmer: of Fear and Greed, Australia's best business podcast. I'm Sean 241 00:11:59,580 --> 00:12:00,930 Sean Aylmer: Aylmer. Enjoy your day.