Shopify, Coronavirus, and EML

Michael Frazis

Frazis Capital

Claude joined us to talk about coronavirus, Shopify (which we hold), EML (which we don't) and a microcap CWL (which I had never heard of).

Available on iTunes or Spotify 

1:08 - Michael and Claude discuss EML Payments (ASX:EML)
1:44 - The ethical dilemma of EML’s gambling exposure
2:40 - Problems relating to the sale high growth stocks
3:16 - EML’s acquisition of Prepaid Financial Services
3:44 - Accusations from Ownership Matters concerning EML
6:50 - The issue with ‘EBITDA’ as a financial metric
9:05 - Michael and Peter Stevens’ thoughts on EML
10:03 - The long-term threat for EML
10:50 - The macroeconomic impact of the coronavirus
12:10 - Does coronavirus’ growing risk as a pandemic change Frazis Capital’s view of market conditions?
13:45 - Chinese stimulus countering the impacts of the coronavirus
15:35 - Luxury brands negatively impacted by the coronavirus as shopping numbers fall
16:58 - Many Australian technology businesses are still trading at high multiples of sales
18:14 - Michael and Claude discuss Shopify (NYSE:SHOP) and its lofty valuation
22:08 - The global ecommerce opportunity for Shopify
23:30 - The only way to guarantee outstanding returns in fast-growing, high quality businesses like Shopify
25:40 - The pressure to sell Shopify and Frazis Capital’s long-term vision for the company
27:01 - The mentality of never buying at a higher price than a previous sell price
28:20 - Claude discusses his investment in Chant West (ASX:CWL)
29:38 - Chant West’s sale of its business for nearly double the market capitalisation at the time
30:33 - Microcaps more trouble than they are worth?
31:30 - Why Australian smallcap fund managers outperform
33:50 - Why Frazis Capital prefers companies with larger capitalisations
34:38 - People who have left the company and customers are the most useful insights into company dynamics
35:40 - Claude spends a huge amount of time researching the people involved in corporate Australia
37:00 - Frazis Capital’s thoughts on Wisetech (ASX:WTC) and its growth through acquisition
39:20 - J Capital raising questions about Wisetech’s accounting practices
41:25 - Issues regarding Wisetech’s streamlining of products as acquisitions roll in
42:00 - Claude’s failed investment in Vista Group (ASX:VGL)
43:10 - The long-term benefit of being long-only

1 topic

Michael Frazis
Founder and Portfolio Manager
Frazis Capital

Michael manages a global equity investment fund focused on technology and the life sciences. Michael completed undergraduate and graduate chemistry degrees at Magdalen College, Oxford University, and studied finance at the London School of Economics

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