Look to Credit Corp for a leading indicator of economic health: Reporting season roundup

--  |   30/09/2021 Text size  Decrease  Increase   |  
email_fwd
<p><strong>Emma Rapaport: </strong>Hello, and welcome to Morningstar. I'm Emma Rapaport, today with me is Shaun Ler. He covers one of the most talked about sectors here at Morningstar, it's the buy now, pay later sector. And he also covers some of our more traditional financial services stocks like Challenger, Magellan.</p> <p>Shaun, thank you very much for joining us today.</p> <p><strong>Shaun Ler: </strong>Thank you. It's my pleasure.</p> <p><strong>Rapaport: </strong>So we've just finished reporting season or are a couple of weeks away from out of reporting season. I'm curious to get your thoughts on how you think your sector performed over the month, maybe a highlight and a lowlight?</p> <p><strong>Ler: </strong>Well, to start with, on average I think the diversified financial sector is fairly valued. I think, in aggregate performance have been strong. The greatest value is being found in misunderstood asset managers like Magellan, or firms with underpriced future earnings like Humm. Now, on the other hand, expensive names include growth stocks, like Pinnacle, where the market is either valuing them at lower discount rates, or under estimating competition risk. Looking ahead, we might see more financial distress, firms may sell more, return of bad debts with debt collector, credit card provisioning more loans than before to prepare for more arrears and more losses. And this also points towards challenging conditions, for finance providers like Zip and Humm. Moving on to the traditional wealth and asset manager space, you know, there is greater need for financial advice, there is greater need for retirement income, but with competition and the balance of power shifting to investors, I think firms need to do a few things. They need to cut product costs and differentiate. Now some firms looking ahead could see operating margins compress. But some firms could see better operating leverage.</p> <p><strong>Rapaport: </strong>Shaun, I want to focus specifically on Zip, a buy now, pay later stock under your coverage. We're seeing some really big news out of Zip. They're now in 12 different countries, they've had a lot of new product launches, they've done a lot with Zip business. And we've also seen enormous customer growth over the last year. But at the same time we've seen that, they're really spending a lot of money to bring about these big numbers. Can you talk to me about the competitive landscape in which Zip is operating? And whether or not you think that they're doing the right things to survive?</p> <p><strong>Ler: </strong>Well, yeah, absolutely Emma. So, what really stood out to me was in this first half or the second -- from the FY'21 results, strong customer engagement and very strong customer engagement, especially in the U.S. Now, this is more than Afterpay, to our surprise, but you know, as we suspected, this is not without cost, with operating expenses far exceeding even our very bearish forecast. So, if you look beyond the top line growth, you will realise increases in loss provisions, arrears, net bad debts and you know, this reaffirms our view that in order to grow in a commoditised and highly competitive business Zip would need to differentiate itself and lower its lending standards. So, the takeaway from here is that you know, while investors are excited about growth. It pays to remember what Zip's customer acquisition cost looks like competition, regulation, execution, and dilution from outstanding options, or convertibles. So, in my opinion, differentiation, speed and agility is key. And for investors, proper valuation is key and ignoring valuation comes at a risk of permanent capital loss.</p> <p><strong>Rapaport: </strong>They really seem to be throwing their hat at everything, as opposed to some of the other buy now, pay later businesses that are staying more within their core business, their payments business. Are there particular numbers that investors should look at within an earnings release or any other release that Zip does, that really go to the core of whether or not they're going to perform well?</p> <p><strong>Ler: </strong>Well looking forward, there are a few metrics to look at when it comes to buy now, pay later players. The single most important metric to look at would be the frequency of use as this indicates client creditworthiness. This indicates this is a source of operating leverage. This indicates client resonance naturally you would also pay attention to metrics like underlying sales per customer, underlying sales per merchant. Naturally, these are all top line numbers to look at. You will also want to analyse the revenue margins such as Quadpay's revenue margins of 7%. And, you know, trying to benchmark that against what its competitors are charging, and to see whether or not these are sustainable, and you will also want to look at things like their bad debt ratios. I mean, you can achieve top line growth very strongly, but what does this signal about the underlying financial health.</p> <p><strong>Rapaport: </strong>I want to move on to talk about a very different business, I want to talk about Challenger, who sells annuities and also some funds management. And that business has really struggled over the last half mainly, you say because of the low interest rate environment. Can you talk through how they performed during reporting season? And their outlook?</p> <p><strong>Ler: </strong>So yeah, so for Challenger, the thing that stood out to me was that annuity issues were at record levels. So this is a clear sign of recovery. And it's due to broadening of its sales and distribution to a more diversified client base, which includes the industry super funds, independent financial advisors or individual investors. So top line growth is recovering. However, its guided maturity rate, and proportion of term annuity sales were more than we expected. Now, this signals this could potentially mean more competition. Investors may note that Challenger is evolving its strategy from being just a plain annuities seller to becoming a partner in designing retirement income solutions for super funds. Now, I think this is a clever strategy as the Retirement Income Covenant which will take effect sometime next year, is non-prescriptive in nature and highlights the importance of providing tailored solutions, which I believe Challenger is poised to benefit given its industry expertise and prudent growth.</p> <p><strong>Rapaport: </strong>Yeah, so you currently put it on the the best ideas list. And that means that you think the stock is currently undervalued? Is there anything that investors should be looking for in this business to look for it to have a bit of a turnaround? Or are you saying that the sheer number of annuities that they sold is going to put them in a good position for the next couple of months?</p> <p><strong>Ler: </strong>Well, if we look at the catalyst rating, there are few catalysts that will support rating. Well, the first one has been the CIPR regime or the comprehensive income product for retirement regime kicks in sometime next year. I believe that this has opportunity to substantially accelerate their top line growth. Because as I've mentioned, it is evolving its strategy from being just selling annuities to helping super funds develop something that suits them. About four or five industry super funds have already pre-emptively partnered with Challenger. And this would set the blueprint for future partnerships. Another one will be margins. And, you know, I believe that there's room for Challenger to prevent excessive margin compression from annuity repricing, from realising higher returns from investments and upselling more longer dated annuities, to ensure higher margin in the long run.</p> <p><strong>Rapaport: </strong>Another business under your coverage that has had a particularly tough year is Magellan. We saw in the reporting season that they really struggled with performance fees over the last half, as well as putting a lot of money into investing in new businesses like Barrenjoey. However you believe that the dip in this performance will be short lived and that it might be a good opportunity for investors. Can you talk us through why you think that?</p> <p><strong>Ler: </strong>Well, Emma, Magellan in my opinion, is a clear sign of market short termism and overreaction. I believe that the market is overreacting to its short-term obstacles such as recent underperformance or startup costs for principal investments. To give you an analogy, the market is essentially pricing Magellan like a closed end ETF with zero net inflows over the next five years. And market returns of less than 9% per year over the next five years. Now I think that is quite pessimistic as effectively Magellan's active management capabilities. I think the proper thing to do is for investors to look at what Magellan is doing today and ask themselves how does this look like in three to five-years time.</p> <p>In my opinion, Magellan has a few latent earnings catalysts. The first one which is quite obvious which is a mean reversion in equity markets. Which should help Magellan deliver greater investment returns moving forward, by our analysis the top 10 holdings in Magellan Global and Magellan Infrastructure is more undervalued than the broad global equities and infrastructure asset costs. And as we know, the greater the undervaluation, the greater the potential for a rerating and vice versa. The number two is, in my opinion, a cleverly designed product suit which would allow Magellan to take advantage of emerging investor trends in funds management for example, it has the MFG core series products which appeal to fee conscious investors, energy sustainable for ESG conscious investors and Magellan future pay for investors who seek retirement income.</p> <p>And lastly, I do see earnings upside from its principal investment's portfolio, such as Barrenjoey, Guzman y Gomez and FinClear. Remember Magellan is running its principal investments, just like how it picks stocks. Now these investments align with Magellan's knowledge in financial services, tech and consumer franchises. So considering what I've said above, I believe that the prevailing share price, is a very compelling entry point to this high-quality asset manager.</p> <p><strong>Rapaport: </strong>We're coming to the end of our time. So just going to ask you a quick question on earnings season, you've listened to a month worth of earnings calls and gone through a lot of reports and PDFs and lots of other things. Is there anything that you picked up from an earnings call that you can share with our viewers that maybe they may have missed or you know an insight that you drew?</p> <p><strong>Ler: </strong>Well a particularly interesting moment or particularly interesting company would be Credit Corp. now I recommend investors pay a lot of attention to what Credit Corp. has to say. Now Credit Corp. often reports its results early. And in my opinion, the company's results can be used as a leading indicator as to where the economy is heading. Now in its results Credit Corp. said that charge off volumes are growing across all markets. Now this suggests increasing levels of financial distress, which may induce firms to sell more return on bad debts. Now remember, Credit Corp. is entering a highly unusual fiscal 2022 with more virus mutations as we speak, stimulus programmes that are being winded down and credit growth recovering off a low base. So the prevailing environment that we are in with low defaults, low hardships, might just not be sustainable and investors who are projecting a clear blue sky moving forward need to be aware of the inherent risk.</p> <p>&nbsp;</p>

Video Archive...

ESG funds don't underperform - but nor do they outperform
15/10/2021  The ESG outperformance narrative is flawed, new research shows.
Building investment portfolios in a low interest rate environment
06/10/2021  Investors may need to hold more growth assets over the coming years, says Morningstar's Jody Fitzgerald.
Covid impacts still being felt in real estate and tech: Reporting season roundup
01/10/2021  And how G8 Education and Link Administration are positioned for long-term success.
Look to Credit Corp for a leading indicator of economic health: Reporting season roundup
30/09/2021  What Reporting Season August 2021 told investors about the health of the financials sector.
Cause for optimism at a2 Milk and Invocare: Reporting season roundup
28/09/2021  a2 milk is an opportunity to be greedy when others are fearful.
Post-covid normalisation is underway in healthcare: Reporting season roundup
23/09/2021  Covid's winners and losers are returning to their prior trajectories. 
One of the most underappreciated dangers of investing
21/09/2021  Sequence-of-returns risk matters for both retirees and savers. Here's why. 
REITs recover pandemic losses: Reporting season roundup
20/09/2021  Analysts expect the sector to recover to pre-Covid trading levels once borders reopen.
Australian banks face margin pressure amid low rates: Reporting season roundup
15/09/2021  Rising customer deposits and access to cheap funding helped Australia's banks stave off net interest margin pressure, but analysts see warning signs.
Greenwashing explained
14/09/2021  Morningstar's Hortense Bioy on how to spot greenwashing and how to avoid it.
Earnings down as private money circles infrastructure: Reporting season roundup
13/09/2021  Utilities and infrastructure names battle the impact of covid as private equity and pension funds circle. 
Frenzy of mergers in energy: Reporting season roundup
10/09/2021  Hydrocarbons poised for a comeback.
TPG tipped to recover as mobile competition eases: Reporting season roundup
09/09/2021  Providers have lifted prices after years of a debilitating chase for subscribers at all costs , says Morningstar's Brian Han.
Short-sellers bet against ARK Innovation ETF
08/09/2021  What shorting ETFs means for long-term investors.
Surging lumber prices were no match for Brambles: Reporting season roundup
07/09/2021  Morningstar senior analyst Grant Slade says Brambles secular growth trend is intact despite nearterm headwinds. He discusses results from the building and construction materials sector.
Miners soar thanks to iron ore: Reporting season roundup
03/09/2021  Miners bask in the glow of iron ore prices while bargains remain in coal.
BHP-Woodside merger is mutually beneficial
23/08/2021  Post-merger Woodside would be well positioned to deliver on the value we've seen for a long time, say Morningstar analysts.
Investors are getting serious about sustainability
16/08/2021  But the sector lacks uniformity, says Morningstar's Christopher Franz. 
Long term outlook for AGL is positive
11/08/2021  Higher wholesale electricity prices bode well for AGL, according to Morningstar senior equities analyst Adrian Atkins.
How you can hedge your portfolio against inflation
11/08/2021  Morningstar FundInvestor editor Russ Kinnel describes some direct and indirect hedges for inflation protection.
The iron ore party can't last: Morningstar
10/08/2021  Copper and iron ore have benefited materially from China’s stimulus and the developed world recovery. But Morningstar analyst Mat Hodge see these benefit as transitory.
What the Afterpay acquisition means for investors: Morningstar Minute
05/08/2021  We believe the transaction has a high chance of succeeding.
Cannabis' federal legal status is not a total buzzkill
03/08/2021  The industry still has significant growth potential.
Stock of the week: Toyota
03/08/2021  Is one of the biggest sponsors of the Olympics positioned for an all-electric future?
2 listed microcap names to consider
23/07/2021  Morningstar's Lex Hall talks micro-cap stock picks with Carlos Gil, chief investment officer at Microequities Asset Management.
Big returns, big risks: Making money with microcaps
22/07/2021  Mornngstar's Lex Hall catches up with Carlos Gil, chief investment officer at Microequities Asset Management.
3 small-caps with Dawn Kanelleas
21/07/2021  The head of Australian small and mid-cap stocks at First Sentier Investors has her eye on ARB, Breville and IDP Education.
Forecast 2021–2022: A correction could be around the corner
20/07/2021  The strong performances of global stock markets in 2020–21 are unlikely to be repeated in the coming year says Morningstar's Peter Warnes.
'Overvalued' warnings grow as ASX 200 hits new high
12/07/2021  Morningstar equity analysts warn that equities remain overvalued despite Australia's strong economic recovery.
What to know about private equity
08/07/2021  Private equity is an exciting area for investors, with lots of hotly-tipped stocks. But there are risks to be aware of, says Pitchbook analyst Dylan Cox.
Lazard's 3 top picks for the global covid recovery
08/07/2021  Warryn Robertson is looking at French infrastructure, retail pharmacy and tax services.
Aussie banks $34bn surplus points to more shareholder dividends, buybacks
06/07/2021  Australia's largest banks have excess capital because they cut dividends, were more conservative on lending, divested assets and raised equity last year. Morningstar's Nathan Zaia thinks most of it should be returned to shareholders.
Weighing up the PEXA IPO
02/07/2021  PEXA burst onto the ASX this week in the biggest float since 2019. Morningstar's Gareth James gives his take on the company's future growth prospects.
Can the iron ore price keep rising?
30/06/2021  Iron ore prices have  been on a tear, boosting the profits of Australia's top miners.  How did we get here and is the only way up? Lex Hall sits down with Morningstar's Mat Hodge.
2 new stocks to watch
28/06/2021  Morningstar has recently initiated coverage of a food delivery app and a consumer finance product. 
'Strongest earnings season I've ever seen'
24/06/2021  Meeting the deluge of demand is the biggest task for US companies, says Bell Asset Management's Ned Bell.
Biotech beyond covid
22/06/2021  Are there still opportunities in the biotech sector now the covid-19 vaccine roll out is underway? We ask International Biotechnology Trust manager Ailsa Craig
Alibaba is still deeply undervalued
21/06/2021  Morningstar's director of Asia equity research is confident the e-commerce giant will bounce back.
Weighing up the Endeavour IPO
18/06/2021  A wide moat and attractive dividend potential are among the key takeaways of Woolworth's decision to demerge from the liquor and hospitality group.
'Then we got hit with the equivalent of a war'
15/06/2021  Lazard Asset Management's Warryn Robertson explains how companies in the Global Equity Franchise fund have adjusted to covid, and assesses the threat of rising inflation.
Understanding Magellan's active ETF strategy
11/06/2021  Magellan's Craig Wright tells Emma Rapaport why it is leading the charge in the active ETF arena and how its global equity product works.
3 off-the-radar small caps
10/06/2021  Callum Burns of ICE Investors explains his conviction in pharmaceutical distributor Ebos, PSC Insurance Group, and elite sports analytics provider Catapult.
Small cap gems and how to find them
09/06/2021  Callum Burns explains how ICE Investors identifies companies with original products and sticky customer bases.
Stock of the Week: Salesforce.com
08/06/2021  They’re building an empire.
3 oil stocks we still like
07/06/2021  A year ago the oil price went negative. How have oil giants handled the past 12 months and what's the outlook from here? Morningstar analyst Allen Good explains.
Considering crypto? Here's what to think about
04/06/2021  As the investment world goes crazy for crypto, Morningstar Investment Management's Dan Kemp explains what to consider before putting it in your portfolio
Why we like Wizz Air
03/06/2021  The airline sector is set to recover as international travel resumes. Morningstar analysts think Wizz Air offer the best opportunity among low-cost carriers.
3 global infrastructure picks
28/05/2021  4D Infrastructure's Sarah Shaw outlines the investment case for Spanish multinationals Cellnex, and Iberdrola, and the potential of Mexican airports.
Are crypto ETFs coming?
28/05/2021  The SEC continues to sort out its regulatory concerns.
Stock of the Week: Apple
27/05/2021  We’re raising our fair value as sales hit new highs—but investors need to put it in perspective, says Andrew Willis.
Opportunities in global infrastructure
25/05/2021  Covid-19 has enhanced rather than impeded the future for global infrastructure, says Sarah Shaw of 4D Infrastructure.
Tribeca's eye for Domain
24/05/2021  Tribeca's Jun Bei Liu also explains why she sees opportunity in sleep apnea specialist ResMed as well as Treasury Wine Estates.
Stocks for emerging markets
19/05/2021  American Century Investment's Patricia Ribeiro sees growth in Chinese battery technology, biologics, and building materials in Latin America.
2 stocks for the rise of the robots
18/05/2021  Robotics is a fast-growing area of tech, creating opportunities in medical, logistics and life sciences sectors and much more.
Square: Stock of the week
18/05/2021  Square's Bitcoin purchase is more marketing than operations
Tesla: Stock of the week
10/05/2021  If Elon Musk ends up delivering, we might need to raise our fair value to US$1500 a share.
Why Tribeca's so upbeat on stocks
07/05/2021  Banks and resources are poised to deliver dividends, and Treasury Wine Estates and BNPL are worth a look, says Jun Bei Liu of Tribeca's Alpha Plus long/short fund.
Looking for value in emerging markets
05/05/2021  Digital banking, ecommerce and 5G are among the key trends set for rapid growth, says Patricia Ribeiro of American Century Investments.
Cash slashed, Aussie equities up: Why Morningstar updates Model ETF portfolios
04/05/2021  Analysts have made changes to the fixed interest, property, cash and equity allocations of Morningstar's Model ETF Portfolios to take advantage of the current market environment. They've also refreshed some of the funds in the portfolio.
Investing basics: Explaining the disconnect between the stock market and the economy
30/04/2021  The stock market and the economy are not the same. Here's why.
Why deforestation matters for investors
23/04/2021  EARTH DAY 2021: Why should investors care about deforestation and how can it can be taken into account within an investment portfolio? 
The silent killer: How to prepare your portfolio for inflation
21/04/2021  Do investors need to worry about inflation, and how do you prep your portfolio to protect you from it? Morningstar Investment Management's Dan Kemp explains.
ESG investing is about more than feeling good: Morningstar equity research
20/04/2021  Values-based investing is ultimately up to the investor.
2 US wide-moat stocks to buy on a dip
16/04/2021  Amazon.com and ServiceNow are looking increasingly attractive.
Fidelity's Kate Howitt names her 3 top stocks for 2021
15/04/2021  Investment tips from Australian equities fund manager Kate Howitt.
Back to basics: What is income investing?
14/04/2021  What is income investing, why is it important and which investors should focus on it? Morningstar Investment Management's Dan Kemp has the answers.
Hunting for pockets of value in an overheated market: Morningstar
13/04/2021  Morningstar equity strategist Gareth James discusses the great value rotation, why he believes the Australian share market is overvalued and where opportunities still lie for hungry investors.
Vaccine rollout drives energy's rise
12/04/2021  But the sector's current tailwinds are likely unsustainable, so investors should prioritise high-quality businesses with stable balance sheets, says Morningstar's Dave Meats.
Finding value with Kate Howitt
08/04/2021  Kate Howitt oversees Fidelity’s Australian Opportunities fund. She discusses her investing approach, the outlook and where she sees value.
Investing for millennials
07/04/2021  Goldman Sachs's Laura Destribats talks about the millennial investment trend, and why tech and experiences are so important to this generation.
What if I want to buy Bitcoin?
06/04/2021  Remember that the returns on speculative assets like Bitcoin are high risk
EGG, SGF, ZBRA: Foraging for the unloved gems
01/04/2021  Steve Johnson explains why Forager Funds Management has bought and held Enero, SG Fleet and Zebra Technologies and why they're poised for further growth.
Why the 'covid spending economy' will flourish
30/03/2021  Forager's Steve Johnson explains why he's bullish on consumer spending, enterprise software companies, and why he has cashed in on big names like Uber.
Proteomics set for growth, says Kardinia
29/03/2021  Kristiaan Rehder explains why the West Australian biotech is among the top performers in the Bennelong Kardinia Capital Absolute Return Fund.
Should you be worried about inflation?
26/03/2021  And how to make inflation "personal."
Crypto what?
25/03/2021  The how, what, and why of cryptocurrency.
The long and short of an absolute return fund
24/03/2021  An absolute return fund aims to seek returns in all weather. Kristiaan Rehder from Bennelong Kardinia Capital explains how.
3 dividend-paying real estate stocks for your watchlist
23/03/2021  Diversified portfolios, strong balance sheets and healthy payouts. Grant Berry singles out three big contributors to the SG Hiscock Property Income Fund.
AREITs in the time of covid
22/03/2021  SG Hiscock's Grant Berry explains how real estate was affected by the pandemic, how property stocks coped, and the chase for income in an evolving retail landscape.
Have we reached peak video gaming?
19/03/2021  Video gaming has soared under lockdown, can this sector keep growing post-covid? Morningstar analyst Neil Macker takes a look.
Myer: five stars and poised for the rebound
18/03/2021  The retail giant's strong balance sheet will help it navigate the shift to online shopping and capitalise on the return to normal life, says Morningstar's Johannes Faul.
Deliveroo IPO: what you need to know
10/03/2021  Ahead of Deliveroo's IPO, Morningstar analyst Ioannis Pontikis looks at the outlook for the business, its valuation and concerns about gig workers.
2 stocks for the e-learning boom
08/03/2021  E-learning has become the norm for young students and university-goers across the world. Morningstar analyst Michael Field looks at whether the trend is here to stay. 
February Reporting Season Wrap Up with Peter Warnes: Webinar
04/03/2021  Special guest Peter Warnes, our head of equities research, joins the Morningstar Foundations of Investing Webinar series to give his unique take on February Reporting Season and answer subscriber questions.
One year after the market crash, through the ETF lens
03/03/2021  The growth and adoption of exchange-traded funds has only accelerated as a result of the latest market crisis.
Brighter picture for big four banks
01/03/2021  Morningstar's Nathan Zaia on the outlook for the banks, dividend payouts and the move by the Bank of Queensland to acquire ME Bank.
One year on: lessons learned from the 2020 bear market
25/02/2021  The biggest takeaway from that period is not to panic when the market tumbles.
What if...I want to buy a gold ETF?
23/02/2021  From ETFs backed by bullion to miners with more upside potential - here's how to get yourself some gold.
'Full return to normal in 2021'
23/02/2021  If the US is to stage a recovery by mid-year, it will need the consumer services sector to fire, says Morningstar's head of economic research Preston Caldwell.
Google, Facebook versus Aussie news stocks
19/02/2021  Morningstar's Brian Han weighs up News Corp's deal with Google and examines the effect of Facebook's decision to block content from Australian media outlets.
Global real estate as a store of value
18/02/2021  Quay Global Investors' Chris Bedingfield explains how self-storage, data centres and industrial property can offer diversification and growth.
Spotting the 'covid winners'
16/02/2021  Uniti Group and Nextdc are among the companies that SG Hiscock's Hamish Tadgell says have flourished during the pandemic.
The transition from hope to growth
15/02/2021  Hamish Tadgell of SG Hiscock explains the portfolio changes he’s made in a bid to capitalise on the shift.
The future of the US economy
10/02/2021  Which pandemic-related trends have already passed, and which ones might be around the corner?
GameStop frenzy is history repeating
05/02/2021  The battle between the Reddit army and hedge funds is nothing new—the question is will regulators be willing to step in, says Morningstar's John Rekenthaler.
Who are the fast fashion winners?
03/02/2021  Competition is fierce for fast fashion retailers such as Asos, H&M, Zalando and Inditex. Morningstar analyst Jelena Sokolova takes a look at the sector.
Can your portfolio withstand volatile times?
01/02/2021  Volatility can be around any corner, says Morningstar director of personal finance Christine Benz.
How much equity exposure is too much in retirement?
28/01/2021  Retirees require stocks' growth potential, but they need a cash and bond buffer, too.
Key trends for China investors
27/01/2021  Rebecca Jiang, manager of the JPMorgan China Growth & Income Trust, looks at why Chinese stocks soared in 2020 and whether the trend can continue.
Redpoint's 3 top picks in industrials
25/01/2021  Redpoint's chief executive and portfolio manager Max Cappetta tells Lex Hall why he's got his eye on JB Hi-Fi, Goodman and Reliance Worldwide in 2021.