Speaker 1: Just before we head into today's episode, we'd like to
Speaker 1: acknowledge and pay respect to Australia's Aboriginal and Torres Strait
Speaker 1: island of peoples. They're the traditional custodians of the lands,
Speaker 1: the waterways and the skies all across Australia. We thank
Speaker 1: you for sharing and for caring for the land on
Speaker 1: which we are able to learn. We pay respects to
Speaker 1: elders past and present, and we share our friendship and
Speaker 1: our kindness.
Speaker 2: She's on the Money, She's on the Money.
Speaker 3: Hello, and welcome to She's on the Money, the podcast
Speaker 3: for millennials who want financial Freedom. You all adored our
Speaker 3: episode earlier in the year detailing the top five ETFs
Speaker 3: of twenty twenty one. So today we're going to steal
Speaker 3: that fall and do the exact same thing.
Speaker 1: But we've got a different co host. We've got Georgia
Speaker 1: not the producer says so look, maybe it was such
Speaker 1: a great episode because I wasn't on it.
Speaker 4: Who knows.
Speaker 3: We did get great feedback for Sammy Boyer, that's not
Speaker 3: the case.
Speaker 1: I'm back in the chair. We missed our g king
Speaker 1: asking the questions.
Speaker 3: Thanks too well. So today, as I said, we're going
Speaker 3: to be stealing that format, but we're looking at the
Speaker 3: top five performing shares on the ASX two hundred from
Speaker 3: last year, so we're moving to shared George shares.
Speaker 1: Correct genius. Now the original guy.
Speaker 3: Exactly my name is Georgia King and joining me to
Speaker 3: reflect on exactly what happened last year and why is
Speaker 3: Financial Advisor Victoria Devine v You're basically bursting out of.
Speaker 4: Your boots over there.
Speaker 3: As they say, on a scale of one to ten,
Speaker 3: how excited are you for today's episode?
Speaker 1: Probably like an eight point three j King. I reckon
Speaker 1: it's not a nine or a ten on the NPS
Speaker 1: or the Net Promoter Score scale, because I don't want
Speaker 1: people think I'm too excited. It's pretty up.
Speaker 4: You're being modest. Well, I'm about a two.
Speaker 1: Oh wow, gee, you're so invested in our community, their
Speaker 1: education and just being along for the rug.
Speaker 3: Energy is a ten, and my inquisitive nature is a ten.
Speaker 4: But I am a little nervous.
Speaker 3: Because we are talking about the one topic that I
Speaker 3: know very little about because I'm an ignorant little mole,
Speaker 3: which is.
Speaker 1: So throwing yourself further onto the bar.
Speaker 4: Just too much.
Speaker 3: But I guess in terms of the structure of today's episode,
Speaker 3: it makes sense to go from five to one.
Speaker 1: And obviously we're just ramping up the excitement and you
Speaker 1: guys are going to go, wow, can't believe it. The
Speaker 1: countdown is on. It's going to be like New Years
Speaker 1: but better. Like you know how people like do the
Speaker 1: big countdown. It's like it's like that, but like terrible.
Speaker 4: Exactly right. So with that said, Fee, let's get straight
Speaker 4: into it.
Speaker 1: I reckon we get straight into it as well. And
Speaker 1: I think it's absolutely no surprise to you guys that
Speaker 1: I have finally convinced the whole of the Sheese on
Speaker 1: the Money team to let me do more investing content
Speaker 1: talk about shares, because it makes sense for us to
Speaker 1: take that next step in our financial literacy and make
Speaker 1: that part of our daily language. And you know exactly
Speaker 1: what we're talking about. But the past year or the
Speaker 1: entirety of twenty twenty one didn't turn out how we
Speaker 1: all thought it would.
Speaker 5: Gee.
Speaker 1: I believe we called twenty twenty that what was.
Speaker 4: It, the garbage fire, called it.
Speaker 1: The garbage fire, and we thought it was done. It
Speaker 1: was not done. We had to emit back down. Yeh,
Speaker 1: take a big slice of humble Pire because we weren't done,
Speaker 1: and it definitely wasn't without its challenges, and overall it
Speaker 1: did turn out to be a better year for investors
Speaker 1: than twenty twenty did. But the same way that twenty
Speaker 1: twenty was dominated by Covid impacting the share market, that
Speaker 1: happened again in twenty twenty one. And I think there
Speaker 1: was a lot more conversation in twenty twenty one about
Speaker 1: the rising prices of inflation. We're talking about that a
Speaker 1: lot in our community, and you know, the tightening of
Speaker 1: our I guess bootstraps, you could say, when it came
Speaker 1: to assets, because we were like, how long is this
Speaker 1: actually going to go for? I think a lot of
Speaker 1: people would have felt, okay, well, twenty twenty's over, twenty
Speaker 1: twenty one is here now, and I'm going to be okay,
Speaker 1: And it's kind of like, oh, actually, a lot of
Speaker 1: us are now realizing that work from home is actually
Speaker 1: going to be the reality, and that the world is
Speaker 1: changing and has changed for not just the better, but
Speaker 1: pretty significantly, and it's not going to be changing back.
Speaker 1: And I think a lot of us, myself included, just
Speaker 1: assumed that things might step back into what our old
Speaker 1: reality was and that's just g now, not what's going
Speaker 1: to happen. A lot happened in the share market, and
Speaker 1: today we're actually going to talk about only the top
Speaker 1: five performing shares from the Australian ASX Top two hundred.
Speaker 1: And the reason I have chosen the ASX Top two hundred,
Speaker 1: because obviously that top two hundred doesn't encompass international shares,
Speaker 1: is to make things cleaner and clear and give us
Speaker 1: the ability to talk about brand names that we've not
Speaker 1: just heard but are on our own soil and on
Speaker 1: our own turf. Like it's so fun to talk about Tesla,
Speaker 1: it's so fun to talk about Apple. But those things
Speaker 1: to me feel a little bit distant and therefore we're
Speaker 1: not as involved. So we could talk about how well
Speaker 1: Tesla did. Yeah, does that impact your I directly because
Speaker 1: it's not actually our share market unless you actually invested
Speaker 1: in it directly. Not really. But what I want to
Speaker 1: talk about today at the top five performing shares here
Speaker 1: in Australia that are sitting on the ASEX Top two
Speaker 1: hundred and G. I know you cannot wait to get
Speaker 1: into it.
Speaker 4: I am stoked, but.
Speaker 1: Before we do, we probably should talk about the ASEX
Speaker 1: Top two hundred performance across the board, right, So the
Speaker 1: ASX two hundred encompasses two hundred of Australia's biggest companies,
Speaker 1: So the biggest companies in Australia all make this list,
Speaker 1: and sometimes it changes out, some drop off, some come
Speaker 1: back on, but it's pretty consistent. And at the start
Speaker 1: of twenty twenty one, in January, the AX start at
Speaker 1: six thousand, six hundred and eighty four dollars and twenty
Speaker 1: five cents, so that's what it was worth in general
Speaker 1: if you held all of them, and then there was
Speaker 1: obviously some volatility and the very first half of the year.
Speaker 1: It then in August, specifically on the thirteenth of August,
Speaker 1: it hit a high for twenty twenty one and it
Speaker 1: came in to be valued at seven six hundred and
Speaker 1: twenty eight dollars and ninety two cents g king on tour,
Speaker 1: which is pretty exciting because that's obviously a fairly nice increase,
Speaker 1: But then it did decrease, so don't be too excited.
Speaker 1: That doesn't mean you should go out and invest in
Speaker 1: the ASEX Top two hundred because on Friday the seventeenth
Speaker 1: of December, the ASEX closed at seven thousand, three hundred
Speaker 1: and three dollars and ninety seven cents, which is obviously
Speaker 1: a fair bit higher than it was in January, which
Speaker 1: is very exciting. So overall it has increased, but it
Speaker 1: wasn't the highest it had been that year for a
Speaker 1: multitude of different reasons.
Speaker 3: Okay, I was just thinking, like, this will be a
Speaker 3: really interesting episode. I think people who were like really
Speaker 3: across investing in shares and they'll be like, I recognize
Speaker 3: that terminology, I know what's happening. I understand why that
Speaker 3: share performed so well. Yeah, and then there'll be people
Speaker 3: like my good self who will come to learn why
Speaker 3: certain shares do perform well and how they kind of
Speaker 3: function and the mechanics behind all of that. So really,
Speaker 3: everybody wins. It's going to be a great episode. Exactly
Speaker 3: everybody wins. And I think the important thing here to
Speaker 3: note is that when I talk about the ASEX top
Speaker 3: two hundred, I'm essentially grouping all of those shares together
Speaker 3: into one bucket, dividing their average returns. So it means
Speaker 3: if you were an individual investor, like you would be
Speaker 3: had you bought these individual shares that we're talking about today,
Speaker 3: there is absolutely no guarantee that you would have a
Speaker 3: positive return, right Like, if you were just picking the
Speaker 3: top ten or the top five shares that you wanted
Speaker 3: to invest in across twenty twenty one, that doesn't mean
Speaker 3: you would have seen a positive return. Because some shares
Speaker 3: on the ASEX two hundred, they actually had negative returns.
Speaker 3: Some had really really big returns, and we're going to
Speaker 3: talk about them today, but it would be an interesting
Speaker 3: episode just to like talk more about the investing episodes
Speaker 3: I can do.
Speaker 1: In the future. Bottom performing shares. Yeah, who dropped the
Speaker 1: most g king? Yeah? How when? Where? So I just
Speaker 1: wanted to preface that. I mean, if you're not an
Speaker 1: individual share investor, which at the end of the day,
Speaker 1: I would not call myself an individual share investor, most
Speaker 1: of my wealth that sounds so wanky, it's not even
Speaker 1: that much money in the grand scheme of things, But
Speaker 1: most of my money that I have invested is actually
Speaker 1: split across to ETFG, which you would probably be surprised
Speaker 1: about because I don't ever want to invest in a
Speaker 1: direct share portfolio because I genuinely don't believe that I
Speaker 1: am nearly as smart as the fund managers that are
Speaker 1: picking stocks in etf yeh. So I'm kind of like,
Speaker 1: all right, well that works for me, but G probably
Speaker 1: side eyeing me at the moment, because I do have
Speaker 1: a little bit of fun on the side when it
Speaker 1: comes to investments, Like if I see share that I'm
Speaker 1: really excited about want to invest in, I definitely do
Speaker 1: do that. I actually have and some of you might
Speaker 1: know this already. Do I have an investing book coming
Speaker 1: out in September, Yeah, which is very exciting. But this
Speaker 1: strategy that I adopted is actually called a core satellite approach,
Speaker 1: where I have a core investment portfolio that I believe
Speaker 1: is like the core of my wealth creation. And for me,
Speaker 1: those are like the slow, steady steeds that are going
Speaker 1: to drive me forward consistently to create wealth. And then
Speaker 1: when we talk about satellite, it's literally like a satellite
Speaker 1: flying around the moon. And those are little investments that
Speaker 1: I make to keep myself as an investor and as
Speaker 1: a financial advisor nourished and engaged, right because I don't
Speaker 1: want to go and bet all of my money on
Speaker 1: a share that I'm like, oh, this is probably going
Speaker 1: to do really well, and I want to have a
Speaker 1: bit of a play with these because I'm excited about it,
Speaker 1: but I'm not willing to bet my future wealth on that.
Speaker 1: So I do invest in individual shares, but I also
Speaker 1: invest in a very well diversified portfolio of ETFs. So
Speaker 1: I feel like people, that's a bit pervy, isn't it.
Speaker 3: That's very pervy and perhaps surprising to some listeners. Also
Speaker 3: very much so to say that you're not as smart
Speaker 3: as the managers of the funds, et cetera.
Speaker 1: Oh, I mean when it comes to picking shares, I'm
Speaker 1: obviously smarter than than them different ways and spaces. So
Speaker 1: don't don't get to ahead of me.
Speaker 3: The other thing we should say here, V is that
Speaker 3: in reflecting on these top five shares from the ASX
Speaker 3: two hundred, we're not saying that you should run out
Speaker 3: and buy shares in these today.
Speaker 1: Oh my god, please don't. The volatility of the shares
Speaker 1: we are talking about today very volatile, got George. So,
Speaker 1: volatility in the share market means the ups and downs
Speaker 1: of the market. It is the ebbs and the flows,
Speaker 1: and the share market is far more volatile than like
Speaker 1: a cash investment. So SAYG, you've got some money sitting
Speaker 1: in a savings account, which I know you do, but
Speaker 1: what that is worth is not going to change whether
Speaker 1: it is today or it is next. Because it's a
Speaker 1: savings account, you might get some sweet, sweet returns on
Speaker 1: your bank account, but I guarantee they're not that high
Speaker 1: because it's twenty twenty two and they're through the floor.
Speaker 1: So it's not going to change that much. But when
Speaker 1: it comes to the share market, and as you will see,
Speaker 1: volatility can be really high, but that doesn't mean it's
Speaker 1: more risky. But when it comes to individual shares, that
Speaker 1: does increase your risk significantly more than picking something like
Speaker 1: an ETF. We are absolutely not endorsing these. We are
Speaker 1: not saying by these, We are not even saying consider them.
Speaker 1: We are saying, how interesting is it that these types
Speaker 1: of things happen? And this is essentially a piece of
Speaker 1: content for you guys to learn more about how the
Speaker 1: share market works. Absolutely not to be taken as advice.
Speaker 1: Good pick up their g Thank you.
Speaker 4: So much, all right, V.
Speaker 3: With that said, let's rip into number five. That is
Speaker 3: the share that came in at number five on the
Speaker 3: ASX two hundred last year. It is Unity Group Limited.
Speaker 4: Yeah, who are they?
Speaker 1: All right? G Unity Group Limited? They're asx code is
Speaker 1: UWL for anybody who wants to look them up. They're
Speaker 1: like a core technology infrastructure constructor, owner and operator of
Speaker 1: predominantly fiber cable networks so gking like the Internet basically,
Speaker 1: and associated technology that aims to provide diversified telecommunication products
Speaker 1: and services. So that sounds really sexy, but I guess
Speaker 1: to distill it down, they're essentially a telecommunications company that
Speaker 1: most of us haven't heard about. So according to their
Speaker 1: Bloomberg profile because I looked them up on there, they
Speaker 1: were established relatively recently G And when I say relatively recently,
Speaker 1: I mean ten years ago. They were established in twenty twelve,
Speaker 1: so they've become a pretty big business pretty quickly. But
Speaker 1: they're pretty, from my perspective, pretty interesting, and I suppose
Speaker 1: G in twenty twenty two, it shouldn't come as a
Speaker 1: surprise to us that a telecommunications company thrived during the
Speaker 1: peak of COVID.
Speaker 4: Okay, I mean that kind of.
Speaker 1: Makes sense, right, Like, there's been a lot of research
Speaker 1: about them. I've seen it a couple of times on
Speaker 1: stocks we should watch lists. Last year they had some
Speaker 1: really good results that were published about six months ago.
Speaker 1: Like they put out their financial results, which I think
Speaker 1: was a very big main driver of their performance. And
Speaker 1: you know, they had excellent results which were really interesting
Speaker 1: because they made a lot of acquisitions or they bought
Speaker 1: a lot of other companies over the last twenty four months,
Speaker 1: so that was a really interesting thing to happen. But
Speaker 1: the thing that I'm most interested in is not just like,
Speaker 1: what does this company do and why are they on
Speaker 1: this list? Obviously they're on this list because they were
Speaker 1: one of Australia's top two hundred companies. Kind of cool,
Speaker 1: but gee, they're on this list because at the start
Speaker 1: of the trading year, which is the fourth of January
Speaker 1: by the way, in twenty twenty one, their stock price
Speaker 1: was worth a dollar and seventy one cents. Pretty good,
Speaker 1: but a little bit higher than a lot of companies
Speaker 1: in the ASX Top two hundred. But they're closing price
Speaker 1: at the end of twenty twenty one, which was the
Speaker 1: seventeenth of December twenty twenty one, g their share price
Speaker 1: was four dollars and sixty four cents, which means their
Speaker 1: percentage change was one hundred and seventy one point three percent.
Speaker 4: N What, Okay, how good's that that?
Speaker 1: Means if you and have done them at year, if
Speaker 1: you invested one thousand dollars in those shares at the
Speaker 1: start of twenty twenty one, you'd have twenty seven hundred
Speaker 1: and thirteen dollars in your account. Now very numbers, very
Speaker 1: pretty good size.
Speaker 3: I reckon cheers Unity Group Limited. Okay, so you're saying
Speaker 3: that is largely because of the impacts of the penny D,
Speaker 3: the pandemic, I should say the penny D.
Speaker 1: You're making it soround a lot more colloquial than it.
Speaker 3: Actually a lot more fun than it was. So why
Speaker 3: exactly is that just because we were all spending more
Speaker 3: time online.
Speaker 1: Look, it's not just because we were spending more time online.
Speaker 1: It was absolutely interesting to see that that happened. But
Speaker 1: they actually made a lot of acquisition. So they bought
Speaker 1: a lot of smaller companies during twenty twenty one, and
Speaker 1: that means that they obviously grew and and with really
Speaker 1: good financial reports, which as I said, about six months ago,
Speaker 1: even further back, they were reporting really good financials. And
Speaker 1: when a company goes through an acquisition period. So an
Speaker 1: acquisition period is a period of time when companies like
Speaker 1: you know what we want to grow. But organic growth
Speaker 1: isn't fast enough for us. G Like, you know, growing
Speaker 1: and you know, posting on Instagram and stuff isn't going
Speaker 1: to cut the mustard. We want to go and take
Speaker 1: over other businesses, take their clients and fold them into ours,
Speaker 1: and that can turbocharge the growth of a company. But
Speaker 1: that can do one of two things. From my honest
Speaker 1: and humble opinion, that can do what it did for
Speaker 1: Unity Group, which was turbocharged their financials and it all
Speaker 1: worked out probably exactly how they wanted it to, if
Speaker 1: not exceeded their expectations. But sometimes George that acquisition and
Speaker 1: therefore the merger, So the merger is whether two companies
Speaker 1: come together, can sometimes be quite tumultuous. So investors are
Speaker 1: often a little bit apprehensive of getting involved in a
Speaker 1: company that's going through in m and A or emerger
Speaker 1: an acquisition period because they're like, either this could go
Speaker 1: really really well or it could go really really badly.
Speaker 1: Like can you imagine two companies coming together, having two CEOs,
Speaker 1: two CFOs, two marketing departments, two HR departments, and having
Speaker 1: a business come together and go, hey, gee, we both
Speaker 1: are in HR, but we now only need one HR department,
Speaker 1: like as a business and as the way that business functions.
Speaker 1: Sometimes it can kind of crumble from within because the
Speaker 1: business isn't functioning as it should. But then on the
Speaker 1: outward side of things, sometimes a business is acquired and
Speaker 1: they don't realize how much they need to change the
Speaker 1: processes or update the way things are working, or the
Speaker 1: cost involved to change old processes into the new processes
Speaker 1: that the company wants them to work on. So sometimes
Speaker 1: when that happens, like share prices go down because it
Speaker 1: didn't go so well. But in this situation, their acquisitions
Speaker 1: really shone through the financial reports, and I think that
Speaker 1: a lot of investors saw that and were really happy
Speaker 1: with that. But also I saw a couple of times,
Speaker 1: and this would have been in early twenty twenty one.
Speaker 1: I feel like I'm getting two into this, so we'll
Speaker 1: move on in just a hot second. But I did
Speaker 1: see them at the start of twenty twenty one named
Speaker 1: as a stock that was currently being undervalued. When you
Speaker 1: are somebody who researches stocks and looks into them consistently,
Speaker 1: and you know is on a lot of email lists
Speaker 1: of different investment companies like I am, that kind of
Speaker 1: shone through as are like, oh, why are they undervalued?
Speaker 1: Is that something I should be looking at to include
Speaker 1: in portfolios? And I have no doubt that a lot
Speaker 1: of people be looking at that going yeah, actually they
Speaker 1: are undervalued. Let's get on that ship. And the thing
Speaker 1: that does really drive stock price is obviously you know,
Speaker 1: performance and key metrics, but also supply and demand. And
Speaker 1: so therefore demand could have increased because a lot of
Speaker 1: people are saying a lot of good things about them,
Speaker 1: They're doing a lot of great things, their financials are
Speaker 1: starting to look really sexyg and therefore demand has really
Speaker 1: pushed up their share price. It's super exciting, but also
Speaker 1: probably worth mentioning that their stock price has are dropped
Speaker 1: by about ten percent in the air last few months.
Speaker 1: So we'll just sweep that off because we're not talking
Speaker 1: about twenty twenty one.
Speaker 4: I can let's talk about that next year.
Speaker 1: And as you said, Gking, these are not recommendations, but
Speaker 1: that is a reflection of the volatility of the market.
Speaker 1: So had you sold your shares on the seventeenth of December,
Speaker 1: you would have been up, but you wouldn't be up
Speaker 1: as much if you were still holding them today.
Speaker 4: Man, how do you know though, how do you know
Speaker 4: when to sell?
Speaker 1: You don't. You don't. There's no such time as when
Speaker 1: to sell. There's a time when you go, should I
Speaker 1: take some money off the table because it's too risky
Speaker 1: to leave it on the table in that share and
Speaker 1: I would like to take it off and put it
Speaker 1: in a more solid and consistent asset. But then there's
Speaker 1: also good financial planning, and you go, all right, well,
Speaker 1: at this age, I want to start selling down my portfolio,
Speaker 1: or I want to start taking my portfolio and transforming
Speaker 1: it into more stable assets. So the closer you get
Speaker 1: to retirement, and I could go on and on and
Speaker 1: on about this g but the closer you get to retirement,
Speaker 1: the more stable your assets are likely to be, because
Speaker 1: you just don't have the time that a lot of
Speaker 1: us have for the volatility of the market to go
Speaker 1: up and down. And they say, when I say they,
Speaker 1: I mean the good investment companies of the world say
Speaker 1: that over your lifetime you will go through seven different
Speaker 1: market crashes. So, as you know right now, the market
Speaker 1: has crash.
Speaker 4: So a ticking one off, Yeah, it.
Speaker 1: Went down three percent a couple of weeks ago because
Speaker 1: of you know, the stuff going on in Ukraine and
Speaker 1: it has gone down even further since then, and it's
Speaker 1: super interesting. But you know, we've been through the GFC,
Speaker 1: we've seen that, we've seen the COVID crash, We've seen that.
Speaker 1: Now we're seeing the Ukraine and Russia war crash. And
Speaker 1: it's not necessarily going to be a crash because I
Speaker 1: don't think it's going to impact the share market nearly
Speaker 1: as significantly as something like COVID, But we will see.
Speaker 1: We don't know what the future looks like. But the
Speaker 1: one thing that we do know is that cycles are consistent,
Speaker 1: and there will be highs and there will be lows,
Speaker 1: and we need to take money off the table when
Speaker 1: we don't have any more time to see another low.
Speaker 3: Okay, So no way of predicting it.
Speaker 1: No way of predicting it. I'm sorry. I've said before, guys,
Speaker 1: I'd be so rich if I could predict the market.
Speaker 1: And guys, I'm trying, I'm real trying.
Speaker 3: Yeah, thanks girl. All right, Well let's move on to
Speaker 3: number four if you're ready, you're happy with that, yeah, okay,
Speaker 3: So number five absolutely is Pilbara Minerals Limited.
Speaker 1: Yep. So they are an Australian mining company. They call
Speaker 1: themselves emerging. That sounds a little bit sexier than just
Speaker 1: we're a mining company. Sure, I don't know. Emerging mining
Speaker 1: company sounds a little bit more ethical, but it doesn't
Speaker 1: change anything. But essentially they mine lithium and tan to light.
Speaker 1: I have no idea what tantalite is. And when I
Speaker 1: say I have no idea, I mean I had no
Speaker 1: idea until I googled it, okay, and g tantalite. And
Speaker 1: I didn't know a lot about what tantalit was before
Speaker 1: I googled it, except for it is something that is
Speaker 1: mined pretty regularly in Australia. But essentially it's used in
Speaker 1: alloys for strength, and it actually has higher melting points
Speaker 1: than like glass, so it's used in glass to increase
Speaker 1: the index of refraction, and it's also used to give
Speaker 1: more strength to things like surgical steel. So it's essentially
Speaker 1: like an important aree of the industrial useful metal category.
Speaker 1: If that makes sense. Yeah, okay, I hope that makes sense.
Speaker 1: But if we want to go a little bit hippie,
Speaker 1: if you had some tantalite that's actually a stone that
Speaker 1: would help is away thoughts that contain poor or wrongful
Speaker 1: judgment as well as thoughts that contain different types of negativity.
Speaker 1: So like, maybe it's a good stone to have.
Speaker 3: I mean it could be. I wouldn't really be heading
Speaker 3: down that that line of things. But hey, maybe that's
Speaker 3: why they went up so much because people were really
Speaker 3: holding on to their crystals last year. Do I sound judgmental?
Speaker 1: Yeah, because you know I loved crystals. That's so rude
Speaker 1: As someone who consistently is this too much information for
Speaker 1: an investing podcast? I consistently carry a rose quartz with
Speaker 1: me and it's usually guys, watch out for it. It's
Speaker 1: usually in my bra.
Speaker 3: Really, actually, no, I think I did know this about you.
Speaker 3: I've forgotten, but now I've remembered.
Speaker 1: It's a weird fact about Victoria divine, but she carries
Speaker 1: a rose quartz because it's not I don't know. It's
Speaker 1: not because I'm like, oh, it's a healing stone and whatever.
Speaker 1: Like I know it's the universal stone of love. But
Speaker 1: as someone who has gone through significant periods of doubt
Speaker 1: when it comes to self love, it was a very
Speaker 1: big part of my therapy a long time ago, and
Speaker 1: like by putting that in my bra consciously consistently and
Speaker 1: having it close to my heart. It like kind of
Speaker 1: reminds me that self love and love in general is
Speaker 1: like the most important thing, and it's really important to me,
Speaker 1: So it kind of reminds me of that consistently. You
Speaker 1: know how some people wear rings or really beautiful bracelets
Speaker 1: or like have physical reminders of things. You might get
Speaker 1: a tattoo, Like to me, that's something that I keep
Speaker 1: close to me because it's a physical reminder that self
Speaker 1: love is incredibly important and you can't pour from an
Speaker 1: empty cup, really soft, really moushy, would you like to
Speaker 1: talk a little bit more about Pilbro though.
Speaker 3: Let's talk more about pill Borough. Yes, So why did
Speaker 3: they perform so well if it doesn't have anything to
Speaker 3: do with crystals.
Speaker 1: So, g You're right, it didn't have anything to do
Speaker 1: with crystals, which is nice to know but really disappointing.
Speaker 1: But imagine if crystals were the reason that, like they surged,
Speaker 1: Like we all just wanted some rose quarts to put
Speaker 1: in our bras.
Speaker 4: Yeah, no, big but ye.
Speaker 1: But Pilbor minerals, as you said, they did pretty well.
Speaker 1: They are number four on our list. They surged by
Speaker 1: two hundred and sixteen point one percent in twenty twenty one.
Speaker 1: G so their opening share price on the fourth of
Speaker 1: January was eighty seven cents, and it increased to two
Speaker 1: dollars and seventy five cents, meaning if you'd invested a
Speaker 1: grand you would now have three one hundred and sixty
Speaker 1: one dollars in your account. That's pretty exciting. That's pretty good.
Speaker 4: That's good. Well, it's the fourth best.
Speaker 1: But if we want to talk about why and when
Speaker 1: and where and how, there was actually a pretty big
Speaker 1: scramble when it came to buying Pilborough shares last year,
Speaker 1: and the reason for that was there was just this
Speaker 1: ever increasingly bullish outlook on lithium. So when I say
Speaker 1: ever increasing bullish like, that's such investor speak, But what
Speaker 1: I'm saying is there was an ever increasing very positive
Speaker 1: outlook for lithium, like people were saying that lithium shares
Speaker 1: were going to go nuts. And this then obviously led
Speaker 1: to many different types of lithium shares generating outsized returns
Speaker 1: for investors over the last twelve months. So demand for
Speaker 1: lithium as well has also been increasing for a number
Speaker 1: of reasons. One it's mined in Australia, which is really
Speaker 1: not but one of the biggest reasons lithium is really
Speaker 1: important is because of the rise of popularity of electric
Speaker 1: vehicles G and this whole theme around decarbonization, right, So
Speaker 1: the demand is actually so strong that has been tipped
Speaker 1: to material outstrip supply over the next couple of years.
Speaker 1: So these share price is increasing, but we are potentially
Speaker 1: as a country going to run out of the supply
Speaker 1: of lithium, So like, how's that going to impact share prices?
Speaker 4: G How is it going to impact them?
Speaker 1: Well, for a number of reasons, and to be honest,
Speaker 1: we can't predict it. But it's just really interesting lithium
Speaker 1: as well. You might have heard of lithium batteries before,
Speaker 1: not a new concept, but lithium batteries are obviously increasing
Speaker 1: in popularity, one because people are preparing for things like
Speaker 1: COVID and shortages of things. But Pilborough Minerals actually has
Speaker 1: a battery material exchange auction and that's where they started
Speaker 1: auctioning off different metric tons of this product to different buyers.
Speaker 1: And I guess this shocked the market because it was
Speaker 1: obviously notably higher in price than it had actually been
Speaker 1: at the time, and since then the company has increased
Speaker 1: the price again and again, which is kind of interesting.
Speaker 1: But unlike number five, which we were talking about before
Speaker 1: g and how they crashed, we shouldn't be talking about
Speaker 1: twenty twenty two because I meant to be reporting on
Speaker 1: twenty twenty one. But I found this really interesting. On
Speaker 1: the first day of market trade in twenty twenty two,
Speaker 1: Pillborough Mineral's share price actually meteorically rose and jumped another
Speaker 1: ten percent to be a share price of three dollars
Speaker 1: and fifty two cents. Really like what it's increasing significantly,
Speaker 1: and so I guess it's not about whether you should invest.
Speaker 1: It's just an interesting I guess thought pattern around what's
Speaker 1: going on, because I would hold a little bit of
Speaker 1: apprehension when it comes to investing in something like lithium
Speaker 1: when the market has said we're going to run out
Speaker 1: of that as well, like how long is that going
Speaker 1: to go for? But then I'm also I'm a little
Speaker 1: bit hippie. I just told you I had crystal in
Speaker 1: my bra I don't actually want to invest in a
Speaker 1: mining company, and in my portfolio, I don't have any
Speaker 1: mining companies because it's not aligned to my values. So
Speaker 1: regardless of what their performance are, I'm still not that
Speaker 1: attracted to the company. Does that make sense? Like performanceing
Speaker 1: and everything, like, it doesn't matter how big your returns
Speaker 1: our g it's not what counts. Before we had to
Speaker 1: break V. I'm going to make myself really vulnerable and
Speaker 1: ask you a dumb question. No such thing, GQ.
Speaker 4: This one could be mining.
Speaker 3: Yes, we know coal mining hugely problematic, very bad for
Speaker 3: the environment.
Speaker 4: Are there forms of.
Speaker 3: Mining that aren't problematic or is it pretty much all
Speaker 3: Just let's steer clear from an ethical perspective, not for me, Like,
Speaker 3: what's your take on that?
Speaker 1: I just feel like there's this gold rush for people
Speaker 1: who are doing quote green lithium right at the end
Speaker 1: of the day mining in a stroke. You know, I'm
Speaker 1: going to get thrown under the bus for this, but
Speaker 1: it's still a dirty business from my perspective, Like mining
Speaker 1: for lithium like every other metal, is a dirty business
Speaker 1: because of the way it has been established, and it's
Speaker 1: very hard to change an entire mining company like you
Speaker 1: would probably be aware that entire communities around Australia are
Speaker 1: set up to support the mining industry and vice versa,
Speaker 1: so changing that is incredibly detrimental. Like as much as
Speaker 1: I go, do you know what, I'm not going to
Speaker 1: put my money there. I don't support it. It doesn't
Speaker 1: mean I don't support the mining communities and what it
Speaker 1: does for the Australian economy. Like it's a very hard
Speaker 1: conversation to be had. But no, it doesn't necessarily mean
Speaker 1: that they are doing it ethically. But it is interesting
Speaker 1: to see companies like Pillburrow who are coming out and
Speaker 1: saying okay, cool, like lithium goes into things like batteries
Speaker 1: for electric cars and wind turbines and you know, electric
Speaker 1: smart grids and all of those things help lower global
Speaker 1: CO two emissions, which is good. So they're really trying
Speaker 1: to work for the better. But it doesn't necessarily mean
Speaker 1: that mining is quote good. But I think when they're
Speaker 1: starting to shift the narrative of what they're putting their
Speaker 1: product into and the purpose of their business and their
Speaker 1: drives and their ethics, I think that things are changing.
Speaker 1: But it's going to be a long slog because you
Speaker 1: can't just pick up a mine and change it into
Speaker 1: being a green, ethical business. And at the end of
Speaker 1: the day, we still have cars on the road, we
Speaker 1: still need, you know, sources of energy that aren't renewable,
Speaker 1: but I think that we're making good steps in the
Speaker 1: right direction, and from my perspective, boycotting companies that are
Speaker 1: mining is not going to help us, because they're the
Speaker 1: companies that are starting to set new standards for what
Speaker 1: is acceptable in this space and are really listening to
Speaker 1: consumers and changing that. And I mean, I'm not the
Speaker 1: biggest fan of BHP, but they're doing a lot in
Speaker 1: that space to work out how they can be sustainable
Speaker 1: and how they can impact the world in a very
Speaker 1: good way. Doesn't mean what they do at a base
Speaker 1: level of something I totally agree with. But I think
Speaker 1: what I really appreciate this. Okay, we hear this is it.
Speaker 1: It doesn't mean we shouldn't support the companies if they're
Speaker 1: growing and changing and you know, really trying to impact
Speaker 1: the world in a good way while not trying to
Speaker 1: just like cut you know, this resource from underneath other
Speaker 1: people's feet.
Speaker 4: Interesting food for thought.
Speaker 3: Let's go to a break, gah, let's do a little
Speaker 3: break for sure, all right, VD, we are back to
Speaker 3: reveal number three on our list. It is, of course
Speaker 3: emugen limited immogen.
Speaker 1: Is that how we're saying.
Speaker 3: Perhaps it is spelt I am U g E N
Speaker 3: e I'm going to go out on a whim here
Speaker 3: and say, perhaps it has something to do with genetics,
Speaker 3: with some genes.
Speaker 4: And they've nailed it and they've gone up Mrgin.
Speaker 1: Yeah, I like that. If you've got any other guesses.
Speaker 3: Maybe something about imaging or imagining. Perhaps it's a creative No,
Speaker 3: you're right, writer, I'm right.
Speaker 1: I mean not genetics but immunotherapy. Okay, so like along
Speaker 1: the right I guess you're along the right way, the
Speaker 1: imugen how did you say it before, like emugen something emugen.
Speaker 1: I think they might call themselves in immugen like imagen
Speaker 1: just because yeah, like imagen, only because they do immunotherapy.
Speaker 1: Like I think that that's where they've probably got their name. Okay,
Speaker 1: like eugene is I don't know, Like this isn't the
Speaker 1: purpose of the podcast, but now I'm really interested. Do
Speaker 1: you know why they call themselves that? But they're a
Speaker 1: clinical stage immuno oncology company that is developing a range
Speaker 1: of new treatments that seek to activate the immune system
Speaker 1: for cancer patients. That's pretty cool.
Speaker 3: Yeah, so probably not something for me to be making
Speaker 3: jokes about. No, look, not jokes, but it's okay. But
Speaker 3: this sounds very interesting and very helpful.
Speaker 1: It is very interesting and very helpful. So gee the
Speaker 1: reason they are performing so well in the market is
Speaker 1: because of one, they're doing some really cool work that
Speaker 1: looks like it's going to be very successful, which is
Speaker 1: very very exciting for that space. But also in twenty
Speaker 1: twenty one, they did a whole heap of immuno oncology
Speaker 1: research activities that were undertaken in the financial year ending
Speaker 1: June thirty, twenty twenty one, so it happened in twenty
Speaker 1: twenty two, but they reported on that research at the
Speaker 1: end of June twenty twenty one, and that research actually
Speaker 1: landed them a grant to get a pretty big tax refund,
Speaker 1: and they got a six point five million dollar cash
Speaker 1: boost which aimed to support commercial and clinical milestones. So
Speaker 1: that means that they are taking things that next step
Speaker 1: further and they're going to start actually doing even more testing,
Speaker 1: which is like ticking off the next boxes making sure
Speaker 1: that their milestones are reached, and several of which have
Speaker 1: actually been ticked off this year. As I said, I
Speaker 1: probably shouldn't be talking about twenty twenty two, but they
Speaker 1: have ticked off a number of different milestones this year
Speaker 1: and they are really gaining momentum. And in fact, what
Speaker 1: was it like about two weeks ago they're actually in
Speaker 1: announced that they had secured a patent for its hervas
Speaker 1: immunotherapy candidate in South Korea, which is very very exciting
Speaker 1: because her Vax was a gastric cancer research initiative that
Speaker 1: they started in twenty sixteen and it's now I guess
Speaker 1: it's getting the funding and the patents that they need
Speaker 1: to be successful, which is very very exciting for the
Speaker 1: future of science and medicine. And it just looks like
Speaker 1: they had good eggs doing really good things.
Speaker 3: S geeking amazing in terms of the specific So where
Speaker 3: did they start on January fourth, twenty twenty one and
Speaker 3: where did they end?
Speaker 2: Oh?
Speaker 1: You know the dates now, yeah, your share master, I
Speaker 1: love it. On the fourth of January, their share price
Speaker 1: was sitting at ten cents, scheeking.
Speaker 4: Cheapest chips, Cheapest chips.
Speaker 1: But the closing share price on the seventeenth of December
Speaker 1: doesn't sound impressive, but I promise you it is. Their
Speaker 1: closing price was forty six cents, so their percentage change
Speaker 1: was three hundred and fifty five percent. And to put
Speaker 1: that in context, in the way that I have done
Speaker 1: for all the other share If you had invested one
Speaker 1: thousand dollars on the fourth of January and you were
Speaker 1: looking at your share portfolio on the seventeenth of December,
Speaker 1: you would have four five hundred and fifty dollars. So
Speaker 1: not bad, that's a pretty good size.
Speaker 3: So riddle me this thoughby because I'm looking at the
Speaker 3: chart in front of me, and you've got Unity Group
Speaker 3: Limited my mates. So if you bought one of their shares,
Speaker 3: it would have cost you one dollar seventy one at
Speaker 3: the start of the year and by the end of
Speaker 3: the year four dollars sixty four. Yeah, the percentage of
Speaker 3: the increasing gross is less than imagen, but they've only
Speaker 3: gone up by thirty six cents.
Speaker 4: What does that mean?
Speaker 3: Like?
Speaker 4: What am I missing that? What am I not getting?
Speaker 3: Like if we go to the bottom, it says one
Speaker 3: seventy one and then it says four, so like that's
Speaker 3: like three dollars and then if you get so it's
Speaker 3: not thirty.
Speaker 1: It's actually the percentage change.
Speaker 4: What does that mean?
Speaker 1: So the percentage change is the like one hundred percent
Speaker 1: of one dollar would be one dollar, right, So if
Speaker 1: something went from one dollar to two dollars, you would
Speaker 1: say that has increased one hundred percent, right, So when
Speaker 1: you say, imugen, for them to go from ten cents
Speaker 1: to forty six cents, that is a very significant jump.
Speaker 1: And when you look at the percentage change of what
Speaker 1: they are worth, like one dollar seventy one to four
Speaker 1: dollars sixty four, that's a difference of one hundred and
Speaker 1: seventy one percent ish. But then the difference of ten
Speaker 1: cents to forty six cents, that's actually a jump of
Speaker 1: three hundred and fifty five because if we distill it down, right,
Speaker 1: if you take that ten cents and times it by four,
Speaker 1: that would become forty cents. Yeah, yeah, yeah, which is
Speaker 1: why the percentage says it's three hundred and fifty five percent,
Speaker 1: because it's actually pretty much quadrupled.
Speaker 4: This makes sense?
Speaker 1: Does that make more sense?
Speaker 4: It makes not a lot of sense.
Speaker 1: Not a silly question at all, because you look at
Speaker 1: the percentages and you're like, what does that even mean? Like,
Speaker 1: what's three hundred and fifty five percent? Why is that
Speaker 1: so much more when they say ten cents and the
Speaker 1: others like a dollar seventy one, it's actually the percentage
Speaker 1: and the difference in comparison to where they started. Whereas,
Speaker 1: g if we took the opening share price for Unity Group,
Speaker 1: which is a dollars seventy one, and just times to
Speaker 1: that by four, which would be four hundred percent increase,
Speaker 1: you would actually have a share price of about six
Speaker 1: dollars eighty four in comparison to the four dollars sixty
Speaker 1: four they had, which was one hundred and seventy one
Speaker 1: percent of an increase. Does that make sense?
Speaker 3: It does make sense. Yeah, you just kind of need
Speaker 3: to stop and think about it, because at a glance,
Speaker 3: it doesn't make sense if you don't have a maths
Speaker 3: brain like I don't.
Speaker 1: Yeah, look, the numbers are pretty scary, which is why
Speaker 1: I actually wanted to contextualize it with that. If you
Speaker 1: invested one thousand dollars, this is what it would mean.
Speaker 1: Because a lot of us don't have the ability genuinely,
Speaker 1: not because we're not intelligent, but because our brains work
Speaker 1: in a linear way. We don't have the ability to
Speaker 1: comprehend what that means. We go, what the hell, how
Speaker 1: does that work? Because our brains actually literally are wired
Speaker 1: to work in linear way, we don't actually have the
Speaker 1: ability literally scientifically g to contextualize percentages as well as
Speaker 1: we do what that would mean to us? Literally?
Speaker 4: Okay, kind of cool, very cool.
Speaker 3: Was there anything else you wanted to cover? Re imagen
Speaker 3: or should we move on to number two?
Speaker 1: We should move on. We've got more percentages to talk
Speaker 1: about and digest. I reckon, We move on.
Speaker 4: All right, drum roll? Number two?
Speaker 3: Is Lion Town Resources Limited. Maybe it could be something
Speaker 3: to do with Zoo's Zoo doctors.
Speaker 4: Not sure, talk us through it.
Speaker 1: Okay, sure, We're gonna move from Pillborough, which was a
Speaker 1: lithium mining company, to Liontown, which is also a lithium
Speaker 1: mining company. Very big forum, I know, very very exciting.
Speaker 1: But they have had an incredible twenty twenty one and
Speaker 1: I feel like Lion Town is a very exciting place
Speaker 1: to be. They have actually searched once again this year.
Speaker 1: As I said, probably shouldn't be talking about twenty twenty two,
Speaker 1: but we all keep up with it because Line Town
Speaker 1: in the last couple of weeks has actually signed a
Speaker 1: lithium supply agreement GE with Tesla.
Speaker 5: Ah, there you go, I know, and that we're saying,
Speaker 5: oh my god, like because we know how big Tesla
Speaker 5: is and you now know that lithium is what creates
Speaker 5: the batteries that run cars like Tesla, and I find
Speaker 5: that so interesting that you immediately went oh because you
Speaker 5: knew the brand name, and that's what's going to happen.
Speaker 1: The more we talk about share prices, and the more
Speaker 1: we talk about shares in general, you're gonna be like, oh,
Speaker 1: Lion Town, aren't they the ones that signed that contract?
Speaker 1: Like that makes sense that they would be thriving. So
Speaker 1: it's kind of interesting, right, So let's get into the numbers.
Speaker 1: Because these guys started at a not so sexy beginning.
Speaker 1: And when I say not so sexy, I mean it
Speaker 1: wasn't like Unity Group, who had a dollar and seventy one,
Speaker 1: which was pretty high. Liontown Resources opened on the fourth
Speaker 1: of January GKiN with an initial opening price of thirty
Speaker 1: four cents per share, so nothing to write home about,
Speaker 1: I wouldn't believe. But by the time the seventeenth of
Speaker 1: December came, they had a share price of a dollar
Speaker 1: fifty six, which you'll go the pillbro. They closed at
Speaker 1: two dollars seventy five. So is that not better? No?
Speaker 1: Because their percentage change was three hundred and fifty seven
Speaker 1: zero point four percent, which means if you had invested
Speaker 1: a grant, you'd have four thy, five hundred and seventy
Speaker 1: four dollars in your account on the seventeenth of December
Speaker 1: had you invested for that entire period. Huge kind of.
Speaker 3: Cool, right, Okay, So how come then, like, why is
Speaker 3: Lyon town? Why did they move so far ahead of
Speaker 3: Pilbarra if they're both in the lithium game, what was
Speaker 3: the difference there?
Speaker 1: So lithium in Australia is nothing new. It is not
Speaker 1: something that we go, Wow, we're finally doing lith like
Speaker 1: we've done it for a long time. And so when
Speaker 1: companies that are, you know, plodding along and doing well
Speaker 1: start to do things like raising capital from institutional investors
Speaker 1: and shareholders, you start to go what are they doing?
Speaker 1: What are they planning? Why are they doing this? And
Speaker 1: that's when I guess the eye gets cast to them
Speaker 1: and you go, how are you doing? Like what do
Speaker 1: your financials look like? You're being pretty aggressive in the market,
Speaker 1: and the business last year did a capital raise for
Speaker 1: institutional investors and shareholders and actually raised four hundred and
Speaker 1: ninety million dollars at a share price of dollar sixty five,
Speaker 1: which was essentially a fourteen point one discount to the
Speaker 1: last closing price, which is very very cool. This raising
Speaker 1: happened after they did what they called a DFS, which
Speaker 1: is a definitive feasibility study for a project that they're
Speaker 1: planning to do in Western Australia. That project is called
Speaker 1: the Kathleen Valley Lithium Project, and the plan was they
Speaker 1: did this study to work out if it would be
Speaker 1: worth doing this new project and seeing if they could
Speaker 1: make even more money by mining even more lithium. And
Speaker 1: that obviously came out as a positive, and they essentially
Speaker 1: said that they could ramp up how much lithium they
Speaker 1: would do livering per year by year six. And essentially
Speaker 1: investors were at, great, that sounds fantastic. We'd like to
Speaker 1: get behind it. So they did do a lot. They
Speaker 1: obviously went to institutional investors. When we say institutional investors,
Speaker 1: we need really big investors like banks. We're not talking
Speaker 1: really rich billionaires. An institutional investor is when a bank
Speaker 1: gets behind it and they go, yeah, all right, your
Speaker 1: business plan is pretty good. We'll give you some casholder
Speaker 1: to throw in there and make sure that happens. But
Speaker 1: then they also obviously went to market and individual investors
Speaker 1: were buying shares, becoming regular investors, And essentially that means
Speaker 1: that that company, because of that capital raising or essentially
Speaker 1: just like fundraising that they've done for their business, they
Speaker 1: now have cash reserves of around four hundred and seventy
Speaker 1: four million dollars, which is pretty exciting because they're planning
Speaker 1: on funding their new projects with that and they've you know,
Speaker 1: got a pretty good looking balance sheet at the moment,
Speaker 1: so I can see why people are looking at it
Speaker 1: going all right, that makes a lot of sense because
Speaker 1: in a addition to being successful with the project, that
Speaker 1: lithium company is actually going to increase jobs and services
Speaker 1: in wa for the mining industry as well, which is
Speaker 1: obviously all very healthy when it comes to I guess
Speaker 1: regular business operations.
Speaker 4: Uh huh. And do we assume or perhaps you have.
Speaker 3: The numbers in front of you that they're still killing
Speaker 3: it with the partnership with Tesla.
Speaker 1: Yes, they are still killing it. The partnership that we're
Speaker 1: talking about with Tesla was actually only announced a couple
Speaker 1: of weeks ago. G It wasn't something that was announced
Speaker 1: last year. I just think it's really exciting and I
Speaker 1: knew you'd know what I was talking about.
Speaker 4: Elon Musk.
Speaker 1: Well with that fee, should we move on to the
Speaker 1: star performer of twenty twenty one?
Speaker 4: Drum roll? Here is that?
Speaker 2: Nah?
Speaker 1: That would have been a terrible drum roll, but you
Speaker 1: guys are stuck with it because it's on the audio file.
Speaker 3: So it is Nova Nicks Limited. Who on earth are
Speaker 3: these high flying people?
Speaker 1: You're going to be surprised when I tell you our
Speaker 1: star performer for twenty twenty one was actually a battery
Speaker 1: materials and technology company, Bloody Batteries. I know they're doing
Speaker 1: so well on our share market this year. Here I
Speaker 1: am thinking when I started to do the research, because
Speaker 1: I didn't know off the top of my head of
Speaker 1: the top five performing shares, because I was like, I
Speaker 1: don't know who these guys are, because I don't invest
Speaker 1: in who's performing well over a particular period of time.
Speaker 1: But it turns out Mining in Australia going off guys,
Speaker 1: This company, surprisingly or unsurprisingly specializes in lithium ion batteries
Speaker 1: used to power electric vehicles, mobile phones, and energy storage units,
Speaker 1: which is kind of exciting, but they are extra fancy
Speaker 1: gking because Novanix's clients include the likes of Panasonic and
Speaker 1: Bosh and with the high value battery market now being
Speaker 1: estimated to be worth about sixty billion US dollars per
Speaker 1: year each and every single year, like, I can see
Speaker 1: why so many lithium ion companies have actually made it
Speaker 1: to the top five performing list of shees on the
Speaker 1: money share prices.
Speaker 3: I know nothing about this, so it is kind of
Speaker 3: a shock to me, but anything would be. I guess
Speaker 3: what did Novnicks do differently or they have they just
Speaker 3: been around longer?
Speaker 4: What's the go?
Speaker 1: So they are a US based company and they joined
Speaker 1: the ASX in July twenty seventeen after the business was
Speaker 1: acquired by Graphite Corp. Which is another learning business in June.
Speaker 1: So they are pretty big and given they are an
Speaker 1: American business, they can be a little bit more I
Speaker 1: could say aggressive, because they are in general just bigger, right.
Speaker 1: And then in twenty eighteen, Novanicks began making battery cells
Speaker 1: in Canada. They actually produced the first batch of cyndrical
Speaker 1: cell and pouch cells as its battery cell pilot factory
Speaker 1: in Nova Scotia.
Speaker 4: Nova Scotia, Baby, Nova Scotia.
Speaker 1: Is that right?
Speaker 4: Yeah? I think so? How do you know that, I
Speaker 4: don't know. It would be in a TV reference from many.
Speaker 1: Okay, awesome, So they made them there. They are a
Speaker 1: really big business. Since then, they've raised a lot of
Speaker 1: money to invest in that pure graph Fight joint venture
Speaker 1: and that has actually seen them become one of the
Speaker 1: biggest battery technology solutions companies in the world. So obviously
Speaker 1: with a pretty sexy list of clients and the fact
Speaker 1: that there is such a hunger for lithium ion batteries
Speaker 1: in the world, it kind of makes sense. And they've
Speaker 1: this year Gking come out on top.
Speaker 3: All right, let's talk numbers. Then with novnix, what are
Speaker 3: we talking?
Speaker 5: All right?
Speaker 1: So these ones very impressive. So they had an opening
Speaker 1: share price on the fourth of January of a mere
Speaker 1: dollar and twenty two per share, which is not that sexy.
Speaker 1: I mean, Unity Group was higher than that, And there
Speaker 1: are a couple of shares that didn't perform nearly as
Speaker 1: well that had much higher share prices, right, but g
Speaker 1: on the seventeenth of December twenty twenty one, their closing
Speaker 1: share price was eight dollars and ninety four cents, which
Speaker 1: is a percentage change of six hundred and thirty two
Speaker 1: point eight percent. Meaning to contextualize this, if you invested
Speaker 1: a grain and you'd have seven three hundred and twenty
Speaker 1: eight dollar US sitting in your account on the seventeenth
Speaker 1: of December, Like what, yes, thanks, yes, Like I want
Speaker 1: my investments always to increase by six hundred and thirty
Speaker 1: two percent, Like what, so.
Speaker 3: That's pretty much double lieon town in terms of the
Speaker 3: percentage increase.
Speaker 1: You're definitely on par. That's how that works. And it's
Speaker 1: super interesting, right to see how I feel like, percentage
Speaker 1: changes are really hard for us to comprehend because historically
Speaker 1: we've been taught there's no such thing as more than
Speaker 1: one hundred percent, like there is on the stock market
Speaker 1: when it comes to percentage changes. And that's just to
Speaker 1: give you a little bit of context, right, Like six
Speaker 1: hundred and thirty two percent is not quote a percent,
Speaker 1: it's more a context marker that helps you see how
Speaker 1: much is increased by But to go from a dollar
Speaker 1: twenty two as an opening share price at the start
Speaker 1: of that year to eight dollars ninety four, which is
Speaker 1: basically nine dollars, is crazy, Like that's so much money.
Speaker 3: G So hang on just a minute, miss Victoria divine.
Speaker 3: So this is the ASX two hundred from twenty twenty
Speaker 3: one that all Australian companies. You just said that Novakniks
Speaker 3: is American. What's happening here? They're taking our number one?
Speaker 3: What's up?
Speaker 1: I know it's kind of rude, isn't it.
Speaker 4: A little bit? How are they on this list?
Speaker 1: So the ASX can actually have a number of different
Speaker 1: companies on it, So American companies can actually be listed
Speaker 1: on the ASX. And actually in recent years the AX
Speaker 1: has stepped up, according to them, it's efforts to attract
Speaker 1: foreign companies to the BOSS and this is just one
Speaker 1: of those companies that have decided to list down Under,
Speaker 1: which is kind of cool. So it means that we
Speaker 1: have direct access to them. And yeah, summary of that,
Speaker 1: foreign companies can list themselves on the AX and g
Speaker 1: At current there are actually more than two hundred and
Speaker 1: seventy international companies listed on the AX.
Speaker 3: How big is the ASX or the Australian Stock Exchange
Speaker 3: if we haven't said that made it clear.
Speaker 1: Yes, so it's definitely not as big as some of
Speaker 1: the market exchanges around the world. But there are actually
Speaker 1: more than two thousand companies currently listed on the ASEX
Speaker 1: and lots of being listed regularly. So there are smaller
Speaker 1: companies and they are generally considered to be a little
Speaker 1: more risky when it comes to being an investment, as
Speaker 1: they are more likely to go out of business than
Speaker 1: the larger ones. And the larger ones actually want to
Speaker 1: be on more global stock exchanges, which kind of makes sense.
Speaker 3: And when you say the larger companies, you don't mean
Speaker 3: the number of employees that work there. You mean the
Speaker 3: revenue that they build.
Speaker 1: Yes, but often with that comes headcount, right, Like, the
Speaker 1: more you are turning over, the more responsibility you have
Speaker 1: as a business, the more staff you are going to
Speaker 1: require to manage that, because you can't just go from
Speaker 1: earning one hundred dollars a week to earning one hundred
Speaker 1: million dollars a week and not have the right infrastructure
Speaker 1: around you. And infrastructure is often made up of staffing. So, yes,
Speaker 1: you're right, could be based on turnover, but it also
Speaker 1: could just be based on the size of the organization.
Speaker 4: Literally, Okay, there you go.
Speaker 1: Actually, when it comes to the ASEX, I had an
Speaker 1: interesting one the other day and this is completely left field.
Speaker 1: So to wrap up all of that, I think it's
Speaker 1: just interesting to have a conversation about, well, who were
Speaker 1: the top five companies when it comes to direct performance
Speaker 1: and super interesting to see that it's lithium. But Ge,
Speaker 1: you just had a question about the ax And I
Speaker 1: actually had a message from someone the other day. They're like,
Speaker 1: I just tried to Google my share price and for
Speaker 1: some reason it's not coming up. It's coming up as
Speaker 1: yesterday's date. And that's because here in Australia, our asx or,
Speaker 1: our stock exchange is actually only open from ten am
Speaker 1: to four pm Monday to Friday.
Speaker 3: Did you know that, g I didn't know it was
Speaker 3: ten till four I knew it was Monday to Friday.
Speaker 4: But is that really.
Speaker 1: Nice relaxed hours? It depends. Our hours are ten to
Speaker 1: four pm, and hundreds of stock exchanges around the world
Speaker 1: operate in that way, but the timings are often very different.
Speaker 1: But we've got some nice relaxed hours when it comes
Speaker 1: to the share market and that has always worked out
Speaker 1: really well for me as a financial advisor because I
Speaker 1: don't need to be up at like five am to
Speaker 1: check the markets. I can cruise into work, get a
Speaker 1: coffee and then be there when the market's open. And
Speaker 1: I am pre caffeinated. How good is that? G.
Speaker 3: It's so weird because again, people probably do, but I
Speaker 3: don't think of it as like an actual market where
Speaker 3: things are happening every day and people are making these deals.
Speaker 3: Like you know, you just kind of think that it
Speaker 3: happens and you like buy and sell. I don't know,
Speaker 3: is that, oh you're looking at me?
Speaker 1: No, no, no, no, no, I'm not. It's literally a market, like, yeah,
Speaker 1: it's a market where you buy and sell. And you know,
Speaker 1: I guess to trivialize my job for a second. I
Speaker 1: don't just rock into work with a coffee and then
Speaker 1: check the markets at ten am. A lot of what
Speaker 1: you know, investment bankers and investors in general will be
Speaker 1: doing before ten am is checking their emails and checking
Speaker 1: trades they want to make and submitting those trades. So
Speaker 1: when the market opens they go through immediately. Like there's
Speaker 1: a lot to it, and it is quite interesting when
Speaker 1: it comes down to it, because you as a general investor, G,
Speaker 1: you go, well, it's not really a market, but it
Speaker 1: literally is all day every day from ten to four pm,
Speaker 1: people are making trades on the share market and prices
Speaker 1: are going up and down based on demand and based
Speaker 1: on what's going on in the economy. Like a couple
Speaker 1: of weeks ago, we saw a crash in the ASEX
Speaker 1: and it went down across the board by more than
Speaker 1: three percent, and that's really scary, But that's based on demand.
Speaker 1: That's based on people going, oh my gosh, like this
Speaker 1: has just been announced. And when I talk about this,
Speaker 1: I'm talking about the war between Ukraine and Russia and
Speaker 1: this has just been announced and I don't want to
Speaker 1: hold this particular asset anymore. So people are disposing of assets,
Speaker 1: and the disposal of assets, or people selling their assets
Speaker 1: is what starts to drive share prices down because people
Speaker 1: aren't being as aggressive in purchasing. It's a very interesting
Speaker 1: world to start learning more about.
Speaker 3: G which is exactly why we did today's episode. Was
Speaker 3: there anything else you want to add before we head
Speaker 3: for the day. This has been a very long episode,
Speaker 3: but I've loved every minute.
Speaker 1: It has been. I love you. If you stuck around
Speaker 1: for this, I hope it wasn't too dry or bland
Speaker 1: or boring. Please please please slip into our DMS with
Speaker 1: feedback on episodes like this, because as much as they
Speaker 1: are dry, I feel like you guys learn a lot
Speaker 1: about the share market when I get to talk about
Speaker 1: individual shares, a lot about the AX, about how that works,
Speaker 1: about how shared trading works, and an episode on the
Speaker 1: needy gritty of g how can we trade on the
Speaker 1: ASEX is just not nearly as impactful as starting to
Speaker 1: deep dive into shares and then you asking context questions
Speaker 1: around that. It's kind of like getting to learn while
Speaker 1: on the job in a way, and I feel like
Speaker 1: that most of the time is actually far more constructive
Speaker 1: for you than it is if I go, Okay, Georgia King.
Speaker 1: So the AX, let's talk about it, It doesn't make
Speaker 1: it as tangible or as real, whereas I think when
Speaker 1: we're talking about a particular share and how that works
Speaker 1: and what that means and how did they get on
Speaker 1: the ASEX, is actually a really interesting conversation to be
Speaker 1: at for sure.
Speaker 3: And I think, as you said during this show, we
Speaker 3: should definitely take a look at the stocks that tanked
Speaker 3: and do like the reverse of this episode, because that
Speaker 3: sounds juicy totally. That'll be a really juicy episode. But
Speaker 3: that is, as always, all we have time for today.
Speaker 3: And remember, guys, that the advice shed on She's on
Speaker 3: the Money is general in nature and does not consider
Speaker 3: your individual circumstances. She's on the money exists purely for
Speaker 3: educational purposes and should not be relied upon to make
Speaker 3: an investment or a financial decision. And we promise Victoria
Speaker 3: Divine is an authorized representative of Infocused Securities Australia.
Speaker 1: Are you getting used to that or you still want
Speaker 1: to stay Australia Pacific because that's like soe G've lived.
Speaker 4: In the past.
Speaker 3: Man Australia proprior to limited Abian four seven zero nine
Speaker 3: seven seven nine seven zero four nine Aofosal two three
Speaker 3: six five two three. We will see you next week. Guys,
Speaker 3: see you next week, guys
Speaker 5: Back