Buy Hold Sell: Financials - old vs new

Buy Hold Sell

Financials are at a crossroads. On the one hand, banks and insurance companies are set to benefit from recovering global growth and higher interest rates. However, many financials face increasing competition from fintech disruptors, often backed by the world’s largest technology companies such as Alipay, Apple Pay, and Ant Financial.

Australia has a good portion of both the new and the old, so we put a selection to our panellists to see where the best opportunities are. Clydesdale Bank spun out of NAB, but which one is a buy? AMP’s financial planning business is disrupted by platforms like Hub24 and netwealth – are there better opportunities in the disruptors, or the disrupted?

Hosted by Matthew Kidman from Centennial Funds, this week’s panellists are Geoff Wilson from Wilson Asset Management and Charlie Aitken from Aitken Investment Management.

Key points:

  • NAB is a key beneficiary of rising interest rates
  • Clydesdale Bank is a cost-out story that could have significant upside, but Wilson thinks it’s fully valued
  • After a 50% share price increase in recent months, Hub24 is trading on a lofty multiple
  • netwealth looks “incredibly cheap” compared to Hub24, with both panellists confirming they’d picked up stock in the IPO
  • Perennial underperformer AMP has consistently failed to live up to expectations since listing nearly 20-years ago, but neither Wilson nor Aitken sees any improvement from here.

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About this contributor

Buy Hold Sell

Buy Hold Sell

, Livewire

Buy Hold Sell is a weekly video series exclusively available through Livewire. In each episode two fund managers are asked for their views 'Buy, Hold or Sell' on five ASX listed companies. The format is meant to be short, sharp, insightful and...

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Comments

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Jeff Wecker

Geoff and Charlie are awesome! And honest, no tap-dancing around PC here! Thanks guys!

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gordon barratt

brilliant service guys. Its become my first go to every day cheers

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Dean Tipping

Great panel...let's hope we see more of this trio...

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Robert Good

Concise, educated summaries, without any waffle. The current panel with Matthew Charlie and Geoff is a dream-team. Well done!

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William Rowlinson

love the humour of Geoff as to when to sell A.M.P

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Ivan Tanner

Want to see more of Charlie and Geoff - very entertaining. HUB 22 - love it !

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Marian Nguyen

Thank you Gentlemen. Excellent and pleasant to watch

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Graeme Holbeach

Despite having a netwealth super account, this is the first I've heard of the their IPO. If it is on their web site, it isn't prominent. This suggests the IPO is at a bargain price, just a pity it is not being made available to those who pay the fees.

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