Shopify, Coronavirus, and EML

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