the call: Thursday 18 June

[Music] Well hello and a very warm welcome to the call on this Thursday afternoon. It is an international stock special, stock, 10 stocks, pick by you still with a stock of the day to expert guests. It's lovely to be here with you and you and you, Mark Gardner, NPC Market, Mark Orlando, that's going to happen a few times today. It's been a while since we've all been together. Lovely to have you guys here. Look, what you make of the US pullback. I was told yesterday by a technical investor that you never see positive equity markets when you have a new fed chair addressing. I didn't know that, that number. He was certainly far more hawkish than everyone expected. So, well, I mean, what he ends up doing and what he says first press conference, I suppose, is a different thing. But yeah, short of actually having a physical hawk on his shoulder, I mean, it couldn't have been more hawkish really. He's going to have inflation on the control. Everyone knows what that means. It's going to be higher rates. The dot plots was suggesting that rates will be, you know, we're, I think they're pricing an October first hike. So yeah, it was say, you know, and there'll be I think five tasks for task force. So, one for communication, one for blah, blah, blah, blah. So, they're, um, they'll be able to change up at the feed, but I was pretty impressed. I mean, it's kind of what they need. They need to get that balance and a new control and then they need to get inflation under control. So, I think long term, really good thing, probably not great for the next six to 12 months. But I mean, look where we are at the moment, where it's not a pullback's not going to be a big deal. And the US futures market is indicating yet another positive session with the NASDAQ up by 1.3%. And we're just past 12 here in Sydney. Obviously futures doesn't make a market, but certainly, there's momentum behind this move. There is. I thought, I think he's put a flag out there saying he's independent and he's not Trump's lackey. I mean, that's part of what he did. Yeah. Because Trump wanted a reduction in memory. He just raised, he didn't, he was the opposite of that. I don't think, from an investing point of view, it's going to make much difference. You know, I mean, maybe slight drag. You have the next few months, you know, on expectations if rates go up. It's not a helpful thing for equities, but I don't, it's a bit of a nothing burger for me. I don't really put much weight in what the Fed does anyway, by the way. Yes. For us, because we're long-term investors, if you're a trader, it's a different thing. But this new Fed chair, I think he's on your team, insofar as he thinks today, I will be a big productivity boost. Yeah. Yeah. Yeah. So I think part of what it is, they need to re-look at how they work out what inflation is and so on. So he's talking about re-assessing some of the markers they use, which I think way over due. Yeah. So it's not a very accurate cage what they're using now. All right. But anyway, it's, I think quite positive. Yeah. Okay. Good. Now, also just looking at what some of the markets around the region are doing today. Going really well, if you have the topics, if you have the NICK, you know, also in Korea, we've got the cost-be-looking pretty sweet hit a record high already today. And that brings us to our stock of the day, which is SK Heinix. SK Heinix is a South Korean semiconductor company. Its customers include Nvidia, Microsoft Apple. I'm sure you've heard it mentioned a few times on the program. Well, it has hit a record high today as well after shipping samples of its latest high bandwidth memory. So HBM chip. The manufacturer claims these chips are faster and more power efficient. Now, as mentioned, the stock is at a record high with Bloomberg opinion citing it along with SpaceX in a list of meme stocks. The piece arguing that traditional valuation methods don't apply to these companies with retail investors buying in with little visibility on how long the business cycle will last. So that's quite a bit of food for thought for our experts today. Guys, I just couldn't resist. Let's take a look at SK Heinix. Mark, would you be putting new money in this company, even if you believe in its future prospects when it's sitting at record high? Look, I mean, the numbers are pretty compelling. 72% operating margin. It's got 70% of Nvidia's HBM memory. Sort of orders. Q2 operating profit year on year was up like nearly 600%. But I mean, look at that chart. It needs a few, a couple of thousand percent. Also, you know, in the last couple of years. So it is the purest play in the AI memory cycle. Realistically, and our resident AI expert, Kai, was saying that essentially deploying servers and things now is a whole thing going out of the moment where people are scrambling to buy on eBay because the chips are so expensive now. They're three or four times what they used to be for servers. Then you better off just buying a fairly new-ish one on eBay because the chips are worth more than, you know, more than what they've probably paid for the server of retail in the first place. And this shortage is not going to stop for basically two years. So I wouldn't be putting new money in at the moment just on a border market view. But an upgraded, obviously an upgraded chipset, which is more power efficient is obviously a big win as well. Look, this and micron particularly would be very high. I'll list the things to be buying on any dip. And I mean, we've had the likes of AMD and the likes of micron on a couple of times over the last 18 months. But we're flat at the moment just on, you know, just on broader concerns of the markets a little bit frothy. So I think that's unfair to SK high next to put it in the same basket as SpaceX. Like, yeah, what's going on? I mean, there's only 4% of free flight, hammering it out at the moment. Sure, when, you know, the progressive bits of escrow become available over the next 180 days, it'll come back down to earth. So yeah, I think this is, I'd rather be putting money in this at the high here than SpaceX right now because I think every retail has gotten a little bit carried away with that. All be it that I'd love to own it, just not at this price. Yep, there's a price for everything, right? Okay, SK high next, would you pay today's price for it? Well, it's actually, it's not like a 45 trailing PE, but on seven forward, music growth rate. So they're growing it over 100% year at the moment. And I think you've got to look at it from the point of view of how you think the Nvidia business is going to go over how long? I don't buy the argument that well, for Nvidia, for instance, they're going to be strong for the next at least five years as far as you can see out. I think which means the memory business will be strong. The question is how much supply is coming on? And SK high next, some silvers have got a quite a large increase, only 50% or more next year coming in, which is going to go to the bottom line from the point of view of new sales because that extra capacity will all get sold. I think we've got along with his space-based data centers. I think the memory thing's going to go for years. It does come down to improvements in the technology, which is one of the things they're doing at the moment. But HBM is sort of like a consortium between, as a name for it, I can't remember the name of the group, but they basically all share the share technology and it's very much a three-opily, what if you call three-opily, triopily. Those three business with Mike Ron and Samsung. SK High next got over 50% market share of memory. And I think I actually think, well, you haven't been able to invest in it. That's the other problem. It's very, very difficult for Australians to invest in a career. Mike might know how to do it, but I don't think you can. But at the moment, they're bringing out an ADR apparently in the US, but there's also a talk from my AI that they might dual list in the US, which will make them accessible. And if you can invest in it, I think it's I think it's a buy, because of the fact that even though it's had a big run, I think it's in a better position than than Mike Ron. And I think even though Mike Ron's interesting is well agree with Mark, but if I was going to choose one, I'll go for SK High next if I can invest in it. The dual listing thing, all the ADR apparently is supposed to be happening this month or next month. Okay. In the US, because you can't, I don't know how you buy it now. You have to. But just by the Korean index, it's all Samsung and SK High next anyway, which is why it's so volatile all the time. I mean, there's such an enormous weighting of that index that essentially is dictated by those two stocks. Oh, I read some history about how Korea manufactured essentially their strength in industry. It's fascinating, but that's an aside for another day. All right, let's get to the companies that you have asked our international stock experts to take a look at starting with duo Lingo, meta, app, love and hub spot and Costco, good old Costco. All right, let's start with duo Lingo. This one's from Michael who wrote in saying, I'd like to know if Mark Moreland is still backing duo Lingo and if therefore I should hold or if I should cut my losses. So we've talked about this one ages ago. Right. We have no believer, but it's not been doing well. No, it hasn't done well. It's on the current peak about 13. This is a high quality B2C company that's is an AI business. Initially, it got hammered down because of the, there was some articles saying that Google or other large language models can teach this stuff for free and blah, blah, blah. It's all BS. The duo Lingo is all about getting people to actually engage with their language or I'm doing chess for instance and I'm on 156 days straight today. So I haven't missed a day for 156 days. Wow. And now that's telling you something because I'm sort of a bit of an ADD type character and I've never done anything for 156 days straight without missing one. So it works. So the point is they get results. They've currently got about 100 million users, there's 10 million average daily users paying on subscription and their goal is to get or currently it's a 50 million average daily users. Then the CEO wants to get up to 100 million by 28, you know, within another year. It's very profitable. No debt, it's pounder lead, it's a brilliant business and I've been adding. So I'm significant in the red from what I originally paid but I've been adding which is bringing my average cross down makes me feel happier and I'm convinced this is going to be a treating dollar business. So you think that it's just been caught up in some of the negative prices? There's a lot of big capital. It's a lot of, it's a lot of, it's a lot of pocket lips and they got, they were a victim of it. And as we know there's quite a few companies in there that are actually really good and it's not relevant. So they've been, have been treated badly. The other thing is the last report, they had a slight drop in monetization of the rate they were growing their users and I think their long-term average is about 30% gross. So it's been, it's got excellent numbers and Von Ann, the CEO said that what they were doing is they were really, really investing heavily into AI learning tools. So they have AI tutors now. So you can actually talk to somebody as well as the tools that are all run by AI with the view of making them the number one mass platform in the world within 12 months. That's what they're trying to do. So he's investing in the business and of course the analyst took that negatively because they're going, "Oh, I think I'm going to slow the earnings growth down." Not dropped it, just slowed it to slow the growth down. And he said that's what they were going to do. So to me it's an overanem, absolute strong buy. Got it. See the need differently? Look, I mean I understand why people have been really sour on it because if, you know, the way social media works these days, once you click on like a one-clawed example, you get absolutely flooded because most of these people are using AI to flood social media. And Juleingo was the absolute favourite where they would be like, "Oh, some idiot would put out some, "I built Juleingo in three minutes." And the bottom line is that whether you can do that or not, "A, it's not just a language model, it's an education model." And the gamification, I mean we've got this, the family uses this at home. I can't get my kids to do anything two hours in a row, little alone, you know, but I think my older step-daughter was two years without a single missing a day, learning Italian, etc. and my wife uses it and bunch my kids. But like the icon on your phone genuinely makes you feel guilty if you don't do it. And I mean it works very well. I mean the daily average uses are up 21% year and year. The revenues are, they are remissing the business, no debt, a $1.00 cash. And look, but it, and just because you can create a piece of stuff where it doesn't mean it does not make a business. Obviously you've got to have someone run it, you've got to have, you know, corporate governance, you've got to have marketing, you've got to have capital to go to market. Like it's, you know, it's just an absolutely ridiculous thesis that it's just going to get taken over. I look at, from a technical standpoint, we've been waiting on this one because the technicals have been so horrendous and we've sort of applied that, that filter over the top of fundamentals because I do think it's a buy and the markets just got to start to, you know, get over this really simplistic view of the company and then, and once it does, you'll probably see the momentum start to come back into it, probably buy with momentum above 150. But at the moment, until like we saw it happen in the cybersecurity sector, as soon as the, you know, as soon as, you know, Mythos was going to require higher cybersecurity, all of the cybersecurity, SaaSPockley, some stocks all rally back to record highs. So this will just need a couple of catalysts, I think, to, you know, to say that the coast is clear because people are genuinely hurting in these, some of these software stocks. And some of them will be, we've got one that's, I think, some prime candidate later on in the show, which will probably get taken over. We need to get there because this is only stock number one. Yeah, I'd say it's a hold for now, but I'd be more of buy with my momentum. Okay. Buy all right. Let's get to the number two on the list. And that is Meta Platforms. Phil writes in asking, do you expect any catalyst to initiate share price growth? It's been going nowhere for a long time. Would you perhaps rotate money out of semiconductors and into, or into semiconductors into out of favor? So take money from semis into out of favor tech stocks like Meta or Tesla. I know what you feel about Tesla, Mark. So maybe we can address the meta question for you. Meta's actually is quite interesting. I own a bit. I've got a, I've got a, I've got a small-ish position in Meta. Five year, five year average growth rate has been 25% a year, which is really good. And it's on a P20, which of the fangs stocks is, I think, the lowest. So it's actually, and that's below 24% below its 10 year average. So got 39% ROE. All its fundamentals are excellent. They also have done a very good job of using AI and maybe they've done the best job of using AI to enhance their business, make their advertising work better, which means they have been delivering better results to their advertisers and charging them all. So I mean, that's, that's the whole idea. That's what we want to see how the company's doing. And Meta's actually doing it. So I'm quite bullish on Meta. I think it's, I think it's a buy at the moment. You know, it would be no problem adding it at this point. And would you be taking any money out of some music? It's a hard question. No, I've read, I've read Nvidia and AMD as well. And no, I wouldn't. But it's not, they're not mutually exclusive. I don't do a lot of road. I don't do a lot of shifting money from here to there because that one looks a bit better today. I'm sort of playing a long game. And I've had my Nvidia shares for a couple of years. Lucky. And they look really, really good. I don't want to sell them. And I think, and I think Nvidia's could do 30 to 50% a year over the next five years. And time to bid a share. Yeah, not it matters. Good. Yeah. That's all things like maybe Cochlear or CSL or some of our Australian losers and put it in. Just remember, this is not financial advice. This is information only. We don't know what your portfolio looks like. We don't know what your goals are. So just keep that in mind. Mark, would you buy a meta? Look, it looks extreme. It's the cheapest of the mega caps. Basically, I think 12, 12 times forward earnings. He has spent an enormous amount of money on talent and stuff. And he's done this before in the in the metaverse thing. But not very much result. It's really honest. And, and, but I think to Mark's point though, where it has made a difference is actually to the bottom line, not the glamorous stuff. So it's not, it's not a poster shot of AI, but it's monetising pretty hard, probably better than most actually. And, but he has, what he's given away in some of these key hires, like $100 million packages and things like that, like you wanted to start paying. And they're probably so far behind in the large language model thing now that unless they have a significant sort of watershed moment and can play catch up, like I think they're just going to be, you know, they're just going to be perennial, be perennially be behind. But I do, I think it's a vibe. Overall, I think they've used it in a very sensible way to monetise their bottom line. And I think that, you know, you're probably almost getting a free hit if he actually pulls something off in the large language model space or, or, you know, the next phase of AI. So, um, so yeah, I'm going to, I'm going to give it a buy as well. Whether I be rotating out of chip stocks, well, I suppose, I mean, we've, we've gotten, gotten flat in the chip stocks at the minute. I'd be happy to buy this, but, um, so I guess, you know, logical conclusion is, I suppose so. Okay. But yeah, but in terms of if the market does div, I'm, I'm getting back into those chip stocks before I'm getting back into meta. I think this one's unlikely to go down as far as the rest of the market if we get a drawback. Got it. Love it. Hi, Andrew here. Did you know you can get your stock picks straight to the front of the queue and to the guests you choose if you become an Osby's contributor. It's our small way of saying thanks for your support. The link is in the show notes. And while I've got you, we'd love it if you could leave us a review. Thanks for listening. Okay. So, stock number three, it's app 11 for those of you out there. I can't help but think of Mick Lovin that this one's for Phil. Phil writes, what do you think of the quality of this stock? Can they maintain, um, high standards and how does it compare to meta? So a bit of a compare and contrast. I'm not really familiar with app Lovin but apparently it enables businesses to advertise profitability, profitably with marketing technologies that attract customers, increase revenue and track ad performance mark. Yeah, I mean, it's a little bit more expensive than meta plays, well, in the same space. But I think it's only around about 25, 28, 4.8, price target consensus from most of the brokers is about 40% higher. I think their net incomes are about 5.5 billion or something for financial year, for this, well, we're expected to be this financial year. So it's AI, AI, commerce and advertising. And look, there's a story around it, essentially, that they're going to be really heavily involved in the online gaming, online gambling and things like that as well, which are big markets. So I think the prospects are pretty decent for this. I'd probably, at this point, I'd rather maybe own Meta, I think this one, I just think it's a more stable business, it's cheaper, it's probably not going to get the same uplift because this is a smaller company. But this is, yeah, and the McLeven thing, it's a joke in the office as well, that's what we call on the office as well. But it's certainly worth keeping an eye on, because I think it's got some, you know, it's got upside potential, and I think it was the best performing stock in 2024 and the S&P, I believe. So, yeah, I know, but half-way through. So a whole for AppLeven. A whole leading towards a buy, yeah. Okay, all right, Mark, AppLeven. It's a very interesting business. They have developed some interesting technology on how they place the ads and so on, which is quite different, so they've got their own platform, and they initially started off by not letting anyone do it. They only had a, like a half a dozen major advertisers who are allowed to use the platform. So they generated enormous profits from those, just from, you know, not even marketing it. So they've opened it up now, but their growth rates have been incredible. They've averaged over 100% a year for five years now. Is their, is their EPS growth rate, which is spectacular. I agree largely with what Mark said. I think this is more, has more upside potential than meta. It's, as it says, about 25 Ford P, it's a similar price to meta. Smaller business. It's a 15 billion market cap versus two trillion or something. So, but I don't know enough about it in detail, you know, to really have a buy on it. That would be bit ambitious, but I think it's a very interesting business. I think they've got a, they've got a nuanced business model, which at the moment is very competitive to meta and Google, but that's their two major competitors because they're all, they're competing for the same advertising dollars. So what these guys have is a very focused strategy or in gaming where meta and Google are probably trying to build up in that as well, but these guys dominate at the moment. So it's a bit of a niche and they've got a very good model. I like it. Okay. Nice. App love and let's get to the next on the list. And that's HubSpot. This one's free of on. Don't know if Ivone already owns it or is looking to own this company or perhaps even sell. If you would like to get your company nominated osviz.co/copics, you can tell us if you already on it or not if you like. What do you think of HubSpotmark? It's a CRM, so customer relationship management system. That's right. Think of it like Salesforce. So they obviously got smashed in the Saisa apocalypse and I did a user around with you. You know, anyone's interested on our Valley 3 website. You can have a look. And I actually came up with like five lenses that we look at these companies to evaluate which of the survivors who's going to prosper and who's likely to go broke. This was the example I used as a loser. And it was also from personal experience because we used HubSpot within the business and we've checked, we've literally checked it out and saving $70,000 a year and have rebuilt our own. So this is a, because this is a, was an app that was at a fairly simplistic level. This is a customer relationship management. So it's like a database and you have, you know, it has lots of bills and whistles. It's quite expensive and it's a seat-based model which the seat-based models are the ones that have been smashed the most. They've now obviously, they're saying they're an AI business now and all the rest of it. It's on 109 PE on dramatically reduced earnings. New CEO from 23, Yemen Rangan, I don't know about them. They hand it out of parts, a bismill, a bismillingly, a bismillingly. A bismillingly. A bismillingly. And totally blew it, you know, from the point of view of having any chance of us ever dealing with them again. That's how bad it was. And I would sell it. Love it. Maybe that says my own experience using HubSpot. But it's amazing. I feel fine saying it because unlikely anybody in Australia is going to pull me up on that one. But what do you think, Mara Cubs? Similar experience from a company standpoint. We built out our own or in the process of the moment our contract in notice period comes up with the first thing we get rid of. It is a horrendously expensive spreadsheet and it's on the seats model. If you do a list of things you don't want or stocks that will be SaaS Pocolips, HubSpot is just categorically, probably number. It ticks every single box. And and like from a cost standpoint, from a not being very complex standpoint. And it hasn't been overly complicated. Well, I say that, but I mean, I mean, Kaiser, Kaiser Man who does all our in-house stuff and runs those projects. It has not been particularly hard to essentially shift off. It's still like it doesn't like it's not genius, you know, what it's doing. Well, and it's like a small scale level. I mean, you're paying 25 grand at base at the absolute base model. I mean, if you even go over, I think it's 2000 marketing contacts. It jumps up to 60 or 70,000. That's a real one. Well, yeah. And then from our, from my standpoint, obviously, you know, founding and running NPC, I'm looking at our balance sheet going, well, that's got to go. And I'm pretty sure that there's, there's be thousands of other customers the same. If they're, look, I've been, it's a short, it's a flat out short. I think this company gets absolutely buried and eventually just gets wound up on tape or maybe just absorbed by someone. Yeah, you could not pay me, you could not pay me to be in this stock. Yeah. Wow, Ivan, that is as definitive as I have heard for quite some time for any of our experts. So sell HubSpot. Okay, let's get to the next on the list Costco. So this is, I was in Canada, not too long ago, just for a week, just visit, visit family. Maybe not if you've even noticed, I was calm, probably not. No one cares, but I cannot tell you how busy Costco was. We were with my niece and nephew who are in university and, you know, just going there and I'm my sister spent like a thousand dollars without even blinking. And it was just lines out the door and it was like a Monday afternoon or something in the middle of winter. Anyways, that's my story. It pays a dividend. I only had a few CEOs and it's whole time of being people who work there love working for Costco. Is it a good investment? It's a fantastic business. It's a, it's been a true super compound row at times, but it's the only negative with it now is it's, it's very big. I think they've got, how many they've got 928 warehouses and still growing. The business model is rock solid. The balance sheet is rock solid. They pay I think six, six percent dividends, all right? Going on memory. I don't know what it increases constantly. Yeah, it's been increasing constantly. Okay, so there's a lot to like about it. The only thing that don't like about it is that it's on a 49 PE and it's average EPS growth rates 12%. So 12% very consistently. As a quality business 49 PE too high for that because of what the return is going to be and I would have to, if I was valuing it, I'd have to give it a terminal of PE of something like 20 or something like that. And if I do that, then I can't buy it. So it's okay to buy if the PE stays up at 49, which is very heroic. Okay. So too expensive. It's a hole if you've got it. Hulled because it's kind of one of those sleep at night stocks. It could be a balance. It's a depending on how you do it. But also they're doing very well in AI as well. But they did one thing they did have one negative on the last report is their membership growth stalled a bit. So because they're putting their prices up on membership. And then there's a question then will actually do a can they get away with that. But that's not a big deal. They have been of brilliant managers. Yep. Mark, Costco? Yeah, probably a hold for me as well. I'm bearing on a buy, but absolutely brilliant business. And they make most of their money out of the memberships. So, you know, and obviously, you know, that means you can always continue to get really cheap prices, etc. And the business is pretty flawless. I've got to say I think the dividend yields, I don't think it's 6%. But I think it's a lot less than it. Dividing yields on 0.6. I knew I saw 6. I didn't want to say it so far. Am I reading that right? I'm not quite sure. I remember the 6. It's 35 forward PAs. But look, it's probably not a bad, it is very much a sleep at night stock. That profitability, like consistency. I mean, then 90% renewal rate. Most companies in the world dream about that sort of retention rate. And then that's your main profit center. So, I don't see anyone sort of busting their moat. But it's pretty easy to walk in there, particularly with our family and be to drop a thousand bucks. But just this is the kind of company you want to have on your list to buy. And if we have a major market route, which brings everything down by it, because then you establish it a low rate, then you get a fantastic returner for the next year. Yeah, categorically, that's the best way to play this. But it's just probably a little bit elevated at the moment. Definitely don't sell it if you've got it. And put it high up on that watch list in terms of, if you need those sleep at night stocks and you portfolio, this is one of the best ones you'll ever get. Got it. Look, that was a fun start to the program. Let's get to our verdicts. So, SK highnecks. [BLANK_AUDIO] It's a bit difficult to get right now. Thanks for pointing that out, Mark, that an ADR might be available soon, possibly even a dual listing, but it is a buy for him. It looks, Mark says that it's a great company. Can't argue with the numbers, but it is a whole T-Reckons that he would buy it on a pullback, both of my guests also still like my cron. Dualingo, it is a firm buy for Mark Moreland. He really likes it. Profitable high quality continues to grow and just sort of caught up in some of those negative headlines about the Sessoff apocalypse. But it is a hold for Mark. Let's, for Mark Gardner, you're just gonna have to play along with me here. Meta, it is a buy for both of my marks. Very, very bullish is Mark Moreland, and it also looks cheap. Mark Gardner points out as well. At 11, it's a hold for both of my guests. Mark Moreland just won't call it a buy because he's not as familiar with the company as he would like to be before putting a buy recommendation on, but it looks interesting. And look, it's just a hold leaning toward a buy for Mark Gardner. HubSpot, big loser, big AI loser, sell, sell, sell. In fact, short it if you're so inclined, says Mark Gardner and Costco. Sleep at night stock holds for both of my guests. You want to buy this one. If there's some sort of a big market route and everything gets sold off, including Costco. All right. Let's just quickly, quickly look at the portfolio, you know about our fantasy portfolio likely by now. We've got about 8% in cash, put a couple small caps in there just for some growth, entering the month of June so far, the fund is up by 36.5%. Since we started tracking it back on March 2022. In a world of market noise and uncertainty, a disciplined approach to investing that is more than ever. Wealthy and Wise brings team invests value investing playbook, Two Osbeets, unpack how the macro environment impacts business analysis. These are the conditions of major global bubbles. When you suspend this belief and say, the earnings will come one day. Just not now. Put similar stocks head to head and make a call on which one rings. I think it's a good time to be a stock picker. What better time to buy than when the market is ignoring what is a wonderful company? Plus ask team investor experts to deep dive into a stock or topic of your choice just to email us your questions. Live from 1 p.m. every Wednesday. Wealthy and Wise is your guide to value investing powered by team invest. So coming up, Eli Lilly, K-Sense, Samsung. So back to Korea, dear and co, which I've been told is in fact a tech company and JB Hunt transport services. Look, a motley crew here. Let's start in the farmer's space. This is Eli Lilly, which Mark would like to take this one first. - I will. - I think Eli Lilly is a fantastic business. We have done some work on this and it's one of my wife, who's got a newsletter on Love and GeoVity and so on. Now, the simple case with Eli Lilly is a semi-glucid company and has Zepbound and Mongero competing with Nova Nordic. Eli Lilly has been sort of killing Nova Nordic and that's why they're on a 40 p.m. and Nova Nordic is on about a 12. But I would buy this over Nova Nordic anyway. And the reason is they've also got their Pill-based product now, which is called Foundao. This come out, which is not injectable. They've got 20,000 in the first couple of weeks, I think it was, and 80% of those weren't on the injectables before. So what we're seeing is a significant expansion of the market growing off injectables. I think the obesity one, particularly in the diabetic treatment for semi-glutides is early days. It's going to continue expanding for a long time. So from a fundamental point of view, Eli Lilly has been growing at 60% average over the last five years. And I think they're going to continue. It's about a one-trillion market cap. It's on a 40 p.m. But the really big reason I'm enthusiastic about it is they are building a platform for the next generation of personalized health care. They've got their own Nvidia supercomputer, I think it's got 2,000 Blackwell processors and Nvidia built it for them. So they have their own supercomputer, which they're using for drug discovery. And they've got, I think like 20 companies now that are all very, very key, early stage, but with high, really, really clever technology and largely all AI type businesses in everything from genetics to ontology and so on. And they're built to get all out. So they have it all in-house. And then they have this massive compute and the ability to turn it all into drug discovery. That's very important. And you go, how good is that? Yeah. And that's not like I asked a report on it for me. I didn't mention any of that. Just on the basics, it looks good. Yeah. And I think that's extremely exciting. And I think it's a buy. Ely Lilly, would you buy it? Yeah. And look, if you look at the health care sector, against Ely Lilly is just the outlaw. The rest of the health care sector is just being in the absolute doldrums for the last-- Ooh, it was close. The last 12 to 18 months. And this thing's just performed incredibly well. Yeah. I'm probably regrettably doing it. And yeah, the digital twin thing is particularly interesting. And I was a touch concerned that there was a massive amount of spend really early stage. But it looks like they're actually going to pull it off, which means that their pipeline is going to have this massive lead for a long, long time. And they have $5,000 in the company. I mean, quite possibly. And these drug companies, these massive drug companies, are all about pipeline. So you don't want to have a patent cliff. You don't want to have-- and they did have-- I think circumstances almost pushed them to be innovative, because they were facing a bit of a patent cliff. And then essentially, it would have been five or maybe 10 years ago. They've gone one. We need to start addressing this now. And then they've escalated. And then AI has come along at the right time as well. And now their pipeline is super-- so they've got a J. Perkka. There's a face-free primary endpoint. It's a blood cancer drug as well. No one talks about that because the money machine is obviously the GLP1 drugs, et cetera. But that's just another thing. And they will-- with that infrastructure, the way this industry kind of works is there'll be-- Foundation research down. And then someone doesn't want to go through the whole process of IPO and et cetera. And then the big guys come in and buy them. They may-- they're advantage in being able to test with those supercomputers. We'll make them a very attractive option to get drugs to market faster. And so yeah, I'm going to call it advice well. I'd probably dollar cost average. And just on the basis that I don't know. Maybe because I'm a bit annoyed that I didn't buy it earlier. And I don't want to pay the high now. That's probably my own baggage. But to be honest, they have built the dream sort of machine, I suppose, for the pharmaceutical industry. And even if someone comes out with a better drug, certain areas or whatever, I'm pretty confident that Eli Lilly will-- they may lose ground slightly. But the way their production line, they've now built themselves, they'll just make it up in five years. And everyone else has got to go and probably spend that money to catch up. So their earnings aren't going to look great while they go through that period, whereas Eli has done it. Great. All right. That's starting off this half of the program with a double buy. Let's get to the next on the list. And that is Keyens. This is for prudence. Prudence writes that she loves our work. Great. Thanks, prudence. So it makes my day. Wondering if you have any views on the Japanese company, Keyens. Don't think many Aussie investors know about it. But I'm wondering if it could become the envy of robotics and automation over the next decade. What do you think, Mark Mourland? I wasn't-- I had heard of it. That's all I'll say. But I've never invested in Japan. And there's a simple-- well, one of the reasons is you have to buy a parcel of 100 shares minimum on anything you buy. Now, if it's $10 share, that's OK. But in this case, this is $75,650 yen, which is about $650. Australia. So if you want to buy this, you've got to put $65,000 in. To buy. Otherwise, you can't buy. So that's a pretty big barrier for Australians to invest in Japan. It's a silly stupid rule, if you ask me, but anyway, is what it is. The company's been growing at 18% a year. What they do is I think it's the largest exporting company in Japan for this supply. So Japan's greatest industrial technology export. That's what it is. They dominate factory automation with sensors and vision systems. So in 26 revenue is 1.1 trillion, up 10%. Look, the financials are all good. Recently, Goldman Sachsett, it's worth about 40% more. Not that that means much to me. 20% to 5% exposed to China, which is probably not a big deal, but it's put down as a risk. Very, very strong. And they basically work like all the fabs. Everybody who has production lines where you need to have precision or be able to watch things, measure them, use their stuff. So it's a very-- it's a fixed and shovel company, really. I don't think it's on anything like the league of Nvidia. So I don't think it's going to be like Nvidia. But it's growing at 18% a year. It's not cheap. It's not a 41P. for Japan that's really high. But that's because it's a super. but they're super duper serious company over there. I haven't done enough work on it to know whether it's a buy or not. - Okay, so. - Looks to be expensive. - Okay, looks expensive. - The quality company. - Okay, a hold if you're already in it. - I'll probably. - Spent that 65 grand. - Yeah, there's a USOTC, which is a bit, you know, so you can buy them. - For counter, yeah. - So, BAD, which I think the code is, I'm gonna have to find it here on KYCCF on the US. So, I mean, it's not quite as liquid as, you know, the ADRs necessarily, but there, I think this is very well positioned. We did a robotic strategy via a gross strategy last year, sort of ran October in instruction investments. And Cain's was pretty unlucky to not sort of make the, you know, make the list in the end of, and it was brought around the Japanese thing. And it just made it a little bit more difficult. And it was a lot easier just to go with ordinary shares in some companies in the US, really. But they're involved in just about everything in terms of, you know, as I say, sensors and fair manufacturing and et cetera, they're very good at the operating margins, 51%. It's all sold direct to engineers. They don't even have salespeople, which is, I think it's always a great sign from a company if they don't even have to have salespeople on board. And, you know, better than, I mean, it's at record highs. I would say, you know, I'm earning on a buy, but it is probably a little bit expensive at the moment at record highs. And that's pretty odd for a Japanese company that usually pretty conservative. But I'd think you, you know, I'd be more than happy to buy a, maybe $1 cost average in the stock. It's a quality company and it makes a lot of the things that we're going to need moving forward. And I think that whole sector in the build out with AI is going to benefit and this one won't be any different. - All right, let's get to the next on the list. I'll start with you, Mark Gardner. It is Samsung. - Yes, so it's okay. Yeah, I mean, we kind of discussed it earlier. I mean, a fair bit broader. And I think it's trading at about 14 forward PAs. So it's still relatively cheap. And it's up about 90% this year already. I still think it's probably, you know, if the same thesis applies, maybe we're going towards SK Hynix more than Samsung. And, you know, they've also, they're involved in a bunch of different things as well. And it, I haven't done enough work on it to be brilliantly honest 'cause it's a broad business. And I guess the, you know, if you don't want the pure play, say then this might be a better way to play because it is involved in that memory business. But it'll benefit from it. That's what that rally is around. But yeah, I'm going to call this one a hold for now. But mainly because it's a, like I said, it's a much broader business. It's not really a pure play. They've got a lot of things going on. And I need to do a bit more of a deeper dive. Thank you, Mark. - I've never looked at it. It's complicated business. - Really? - Yeah, okay. - Yeah, they've got free G's TVs. They make toasters. They've made you industrial company in consumer electronics in Korea. I mean, they make everything. So, I don't know what the percentage of the memory is of the actual business. They're about 20, three or four percent, I think of the market. Yeah, so they're a little bit bigger than the market. - Well, you nearly sent them broke at one stage as well. So, you know, they've sort of, they've come from-- - So I'm too half of them, I don't know enough about it. And I wouldn't be buying them for the memory investment. So, if I was going to do that, I'd buy his car harness. And if it, and I wouldn't look at it as a normal investment because it's too complicated. And I just don't have any interest in that. It's also in Korea, which I don't invest in. - Yeah, okay. So, that's a no for Samsung from you. Let's get to number nine on the list. And that's deer and co, this one is for Josh. - So, big agricultural equipment, that's it in short hand, but it uses AI, uses lots of tech to make sure that it's doing things in a modern fashion or, you know, these really large scale farms around the world, what do you think? - It's a, I'm moderately familiar with it. It's sort of about a 32, 15% growth, which is pretty good. Market cap is 150 billion. But it's a, they compete with caterpillar. And I have, I've done more work on caterpillar than I've done this. And caterpillar has my understanding better AI incorporation. I've done a better job of automation, so I believe. And they've also got a very large part of their businesses, data centers for redundancy power and not sure about deer. I don't think, I think they're less than, I don't think they did that. So for me, I think caterpillars are more interesting business. So, I sort of gravitate, I don't know that either, but I gravitate it to that. So I haven't done any more work on this, but amidst the solid company, it's got a good, strong balance sheet. They've got, it's operating quite well. It's probably fully priced, with 32 PE on 15% growth, but see what it makes. - This is my, well, it's kind of a, I mean, obviously they used to make tractors and they still make tractors, but now it's very much a data science business. And, you know, this automated farming thing, I don't know if anyone watches, you know, Clarkson's farm, but there's a few episodes which gives a great example of how much cost efficiencies there are in these machines now. And how the waste reduction, you know, the uplift in crop yields, et cetera, is quite amazing. And so, but I would probably agree with Mark, though, on the caterpillar, I don't know whether they're, I mean, they do, I think there's crossover in competition, but they're not, like, I wouldn't say that they're direct competitors. I think, you know, John, Deer and Co would probably lean more towards them, you know, the farming equipment, and then Kat, you know, more than that data center side. There's probably a dustbin machinery in between that they cross over on, but, and then that would depend on which deals in your town, et cetera, et cetera. So, I think they are a little bit, I mean, I wouldn't put fresh money in here, but it's a hole-daring on a buy. But I think these guys will, like, when the upgrade cycle comes for these machines, they're, and I think everyone's kind of almost being forced into it now, you just, you're, your, the farmers are competing against another farmer who has that margin advantage. I mean, they kind of, they have to upgrade, basically, otherwise they can't compete. And so, it would be a bit of a global, I guess, upgrade of technology across the board. So, I think they will go on a very good run over the next, over the next five years or so. And they've got these platforms now as well. They, you don't necessarily even have to be in the cab anymore. You just send, you're sending stuff out. We've seen, I've seen clients with automated sprays and fertilizers, works from an iPhone. And it's, and it's, ge, geomat, the whole works. And it just, it tells you when, and when you need to fill it up. So, I mean, it's, it's a huge advantage in terms of labour, et cetera. And, and they use the facial recognition from your phone to identify the weeds. So, they use those pesticides, which is great for everyone, except for probably new farm sale. And those guys, but, yeah, I'm, holdering on a buy, but I think they're going to have a, a pretty good cycle over the next five years, in particular, as, as this, as everyone starts to upgrade their machines at a necessity. Got it. Thank you. Now, let's get to the last one, the list. And this one is from Min Kwan. Thank you for writing in. JB Hunt Transport Services. Again, I don't know if, this is looking to add to a portfolio, or already in a portfolio, sort of all school for you, Mark, more than. Yeah, it is. Found a lead, Shelley Simpson started, and he's been there forever. So, he's a president and CEO. This is the good management story of tracking in the US. So, they, it's a very well-run business, despite secular challenges, autonomous vehicles, capacity, think musks. He's got his semi-trailer coming out, totally autonomous. So, that's a threat. It's out-performed operationally, and it has operational excellence and diversification, pricing, discipline, blah, blah, blah. It's on a 45-per-year though, a growth rate of about 15%. Low debt, $12 billion, $24 billion company. So, if you want a tracking investment, this is a really good. That's certainly well over the past year. Yeah, it's done well. Very well in the last year. They've got, they've got, their growth rates pretty strong. But it is, traditionally, it's a business. It's a tough business. They run it really well. It's not something that appeals to me. Okay. If you had it, would you hold it? Probably. Yeah. Okay. Yeah, that surprises me only because of all the terror, vimposts and everything else. You know, economics slow down, but it's obviously doing very well. I haven't looked at this much before, but it's got a decent rail with this intermodal transport, decent railside. So, it's got a wide hasn't really been overly affected, I suppose. It just sort of benefits, you know, that railside benefits because people, it's too expensive to use trucks. And, you know, but it is, yeah, it's alarmingly solid business over the course of time. But, you know, at the end of the day, it's a transport business. I think as well, there's a, there's a, There's a fair bit of talk in the US, that whole case-hope thing. But if you take out the AI, the rest of the market's quite defensive and defensive businesses tend to do to get a little bit overboard. I'd wait for a pullback on this. It's not the kind of company you want to buy at highs with momentum. It's just not that style of company. But if you get a situation like, obviously you can see the chart there back where it's dipping into 2025, et cetera, and you can actually get it cheered. On the long term, you'll do very well, but it's definitely, you know, you're not putting this in that growth and momentum category where you want to buy through record highs. This is probably the opposite and it's in that defensive mode where you want to be only when it's cheap. Maybe the touch like Costco, for instance, as you know, it was, it still grows. You probably want to be buying it when it's cheap because it tends to trade in a bit of premium. So I'm going to say a whole bit. So I'd never looked at this before and I've got to say it's pretty interesting. Like so, but I think now that there's a deal, well, supposedly there's a deal. We'll find out tonight if Trump can't bugger it up or Israel can't fire another missile at Lebanon or something in the meantime. But, you know, the advantage of it rail using a third of the fuel of the trucking is going to start to dissipate. So it's probably a peak at the moment. If anything, maybe if you held it, you might want to maybe trim and then look to buy back in at lower levels. Yeah. Okay. Interesting. Well, that sparks a conversation. That was JB Hunt Transport Services, JBHT on the NASDAQ. Were you going to say something? Yeah. All right. Let me just review. I mean, I'm always open to it. Eli Lilly, a very, very strong buy from Mark Moreland. It's also a buy from Mark Gardner, but he might dollar cost average in. I don't think Mark sort of disagreed with that. No, no, like, I like that's good approach. Ken, look, it never really invested in Japan, says Mark Moreland, but it is a Pixen Shovels business. If you have it, hold it. It's probably a reason why you're there. Look, a bit expensive, says Mark Gardner, but it is a buy for him. Samsung, neither of my guests have put a lot of time into this one because it's such a complex business. I suppose there are other places that they would rather invest their time. So it's a hold for both. If you know it and you really like it, dear, it's a hold for both of my guests and you just heard, J.B. Hunt, Transport Services, a hold, although Mark Gardner in particular says that it's interesting, more than parts to the fact, points to the fact that it's very well run, Transport Services business. Guys, that was good. I liked doing the international stocks for a good change. Really? One sell? Yeah, that's true. And Bosnian itself. And you were selling. That's it. That's it. Yeah, you were trying to do me on negative. I mean, I was looking my lips when I saw it on the list. I've got to say, and just my frustration and I've spent quite a lot of time. Yeah, take us what you get back to the office and your local HubSpot customer service representative will be giving you a call. No, they blocked. Yeah, we passed that. Yeah, good. You're coming back. Mark, Merlin, Mark Gardner, always nice to have you here. Thank you so much. Thank you. Thank you for sending in your stock requests. So yeah, international flavor. We do it every couple weeks or so. Feel free to send them into osvis.co/callpix. Stay with us. More news and views are coming your way.