Morningstar Best Ideas List: WiseTech looks cheap after tech selloff

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<p><strong>Emma Rapaport</strong>: Hello, and welcome to Morningstar. I'm Emma Rapaport. Today, joining me is Gareth James. He is an equity strategist at Morningstar.</p> <p>Gareth, thanks very much for joining us.</p> <p><strong>Gareth James</strong>: Thanks, Emma.</p> <p><strong>Rapaport</strong>: So, we're here to talk today about the Morningstar Best Ideas list and the fact that you've added WiseTech to the list. You say as part of the report that you've added them after two major events &ndash; a massive decrease in the stock price and then just general negative sentiment towards the tech sector. So, I want to tackle those two things first. As the technology analyst for the last however many years what have the last three months been like for you to see this massive rotation out of tech stocks and what does it mean for a company like WiseTech?</p> <p><strong>James</strong>: Yeah, sure. So, what we've seen in recent months is we've seen bond yields rise on the expectation that inflation is going to be quite high this year. So, the implication for technology stocks is quite negative, because technology stocks, generally speaking, are growth stocks, and growth stocks are very vulnerable to rising interest rates. So, it has quite a negative impact on the evaluation of technology stocks. So, we've seen some pretty significant falls in the last few months. WiseTech hasn't been immune to those falls, but it hasn't impacted our fair value for the company. So, we think that the shares have become more attractive and that's encouraged us to put it on the Best Ideas list.</p> <p><strong>Rapaport</strong>: So, this negative sentiment within the technology sector, that's the US and Australia alike. Do you have any expectation around &ndash; the US raised rates for the first time in I think 18 months today &ndash; do you think that that sentiment is going to switch at all over the next few months?</p> <p><strong>James</strong>: No, I think that's likely to continue. So, what we saw over the past two years is that from March 2020 we saw an incredibly strong rally in equity markets, and what we call high beta stocks or volatile stocks were the biggest winners of that rally. So, things like technology stocks went up significantly. Now, that rally, in my opinion, was largely driven by falling interest rates. So, interest rates obviously went to practically 0 in most Western countries. So, now what we're seeing is we're seeing economies move beyond that stage, and that's going to be a long process which is going to continue for a while. So, I think, we're going to continue to see interest rates continue upwards, and I think for those technology stocks that have gone up significantly, I think we've probably seen their best days for the time being.</p> <p><strong>Rapaport</strong>: So, let's move to talking about WiseTech in particular. I remember a few years back you had some pretty significant concerns around disclosure, accounting policies, around earnings, around the high costs of research and development. Late last year you turned very bullish on the stock. So, can you explain how that switch in your own personal sentiment came about?</p> <p><strong>James</strong>: Yeah, sure. So, WiseTech has always been a stock with very high market expectations. So, the kind of earnings multiples, so for example, price to earnings multiple that the stock trades on, has always been incredibly high. And what that means is that investors are expecting incredibly high earnings growth. Now, from our perspective, to get comfortable with taking that view that there will be a very high earnings growth going forward, we really need to see some hard evidence and we need to be very confident about the financial statements of the company and the disclosure and these kinds of things. Now, once WiseTech listed, for the first few years, we didn't really have confidence that there was sufficient disclosure at the company. So, we weren't confident in agreeing with the market that earnings were going to be as strong as the market was assuming.</p> <p>What happened late last year was the company significantly improved its disclosure, they provided a lot more information to the market and that gave us the comfort that we needed to increase our fair value estimate significantly and be much more aggressive with regards to our long-term earnings growth expectations. So, that saw us make a really significant increase in our fair value. And since that time, we've been much more positive on the stock. The share price has come back a bit. And now, the stock has come onto the Best Ideas List as a result.</p> <p><strong>Rapaport</strong>: Right. So, you say that there are a lot of attractive qualities in this company &ndash; an economic moat, a large global market. Can you give me your thesis as to why you've put it on the best ideas list now? And why it's trading at a discount to your fair value?&nbsp;</p> <p><strong>James</strong>: Yeah. So, I think, WiseTech has obviously been caught up in the sell-off, the broad sell-off for technology stocks, which is understandable. But we don't think it's linked to the fundamental performance of the company. So, we haven't moved our fair value estimate down, but the share prices have weakened. So, that's meant that the share price is now below the fair value, and that's the main driver behind putting the stock onto the Best Ideas List. The stock was already a stock that we considered to be high-quality. So, like you say, it's got a narrow economic moat, which is based upon customer switching costs. It's got a very large global addressable market. We think there's going to be strong growth, at least for the next 10 years for the company. And it's a very innovative company as well, for example. So, it's constantly improving its products, and it's used by the largest logistic companies in the world. So, it's got very high-quality clients as well. So, there's lots of things that we like about the company, but now it's cheap as well, which is why it's gone onto the Best Ideas List.</p> <p><strong>Rapaport</strong>: And is it fair to say amid all this disruption in global supply chains that this is actually potentially even a good time to be WiseTech?</p> <p><strong>James</strong>: Yeah, that's right. I mean, WiseTech is relatively new software and it's replacing an old software that doesn't work very well, which is inside of all sorts of logistic companies around the world. So, WiseTech's software is extremely user-friendly. It's based in the cloud. It's a very clever software. And the events that are happening in the world, such as supply chain disruption, those kinds of things are only going to encourage logistic companies to switch to the more modern, more sophisticated software such as WiseTech's software, and WiseTech is really one of the leading providers in the world in this space now. So, it's really in a good space to benefit from this shift towards cloud-based software.</p> <p><strong>Rapaport</strong>: Well, thank you very much for joining us today, Gareth.</p> <p><strong>James</strong>: Thanks, Emma.</p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Emma Rapaport: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Hello, and welcome to Morningstar. I'm Emma Rapaport. Today, joining me is Gareth James. He is an equity strategist at Morningstar.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Gareth, thanks very much for joining us.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Gareth James: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Thanks, Emma.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Rapaport: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">So, we're here to talk today about the Morningstar Best Ideas list and the fact that you've added WiseTech to the list. You say as part of the report that you've added them after two major events &ndash; a massive decrease in the stock price and then just general negative sentiment towards the tech sector. So, I want to tackle those two things first. As the technology analyst for the last however many years what have the last three months been like for you to see this massive rotation out of tech stocks and what does it mean for a company like WiseTech?</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">James: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Yeah, sure. So, what we've seen in recent months is we've seen bond yields rise on the expectation that inflation is going to be quite high this year. So, the implication for technology stocks is quite negative, because technology stocks, generally speaking, are growth stocks, and growth stocks are very vulnerable to rising interest rates. So, it has quite a negative impact on the evaluation of technology stocks. So, we've seen some pretty significant falls in the last few months. WiseTech hasn't been immune to those falls, but it hasn't impacted our fair value for the company. So, we think that the shares have become more attractive and that's encouraged us to put it on the Best Ideas list.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Rapaport: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">So, this negative sentiment within the technology sector, that's the U.S. and Australia alike. Do you have any expectation around &ndash; the U.S. raised rates for the first time in I think 18 months today &ndash; do you think that that sentiment is going to switch at all over the next few months?</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">James: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">No, I think that's likely to continue. So, what we saw over the past two years is that from March 2020 we saw an incredibly strong rally in equity markets, and what we call high beta stocks or volatile stocks were the biggest winners of that rally. So, things like technology stocks went up significantly. Now, that rally, in my opinion, was largely driven by falling interest rates. So, interest rates obviously went to practically 0 in most Western countries. So, now what we're seeing is we're seeing economies move beyond that stage, and that's going to be a long process which is going to continue for a while. So, I think, we're going to continue to see interest rates continue upwards, and I think for those technology stocks that have gone up significantly, I think we've probably seen their best days for the time being.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Rapaport: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">So, let's move to talking about WiseTech in particular. I remember a few years back you had some pretty significant concerns around disclosure, accounting policies, around earnings, around the high costs of research and development. Late last year you turned very bullish on the stock. So, can you explain how that switch in your own personal sentiment came about?</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">James: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Yeah, sure. So, WiseTech has always been a stock with very high market expectations. So, the kind of earnings multiples, so for example, price to earnings multiple that the stock trades on, has always been incredibly high. And what that means is that investors are expecting incredibly high earnings growth. Now, from our perspective, to get comfortable with taking that view that there will be a very high earnings growth going forward, we really need to see some hard evidence and we need to be very confident about the financial statements of the company and the disclosure and these kinds of things. Now, once WiseTech listed, for the first few years, we didn't really have confidence that there was sufficient disclosure at the company. So, we weren't confident in agreeing with the market that earnings were going to be as strong as the market was assuming.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">What happened late last year was the company significantly improved its disclosure, they provided a lot more information to the market and that gave us the comfort that we needed to increase our fair value estimate significantly and be much more aggressive with regards to our long-term earnings growth expectations. So, that saw us make a really significant increase in our fair value. And since that time, we've been much more positive on the stock. The share price has come back a bit. And now, the stock has come onto the Best Ideas List as a result.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Rapaport: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Right. So, you say that there are a lot of attractive qualities in this company &ndash; an economic moat, a large global market. Can you give me your thesis as to why you've put it on the best ideas list now? And why it's trading at a discount to your fair value? </span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">James: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Yeah. So, I think, WiseTech has obviously been caught up in the sell-off, the broad sell-off for technology stocks, which is understandable. But we don't think it's linked to the fundamental performance of the company. So, we haven't moved our fair value estimate down, but the share prices have weakened. So, that's meant that the share price is now below the fair value, and that's the main driver behind putting the stock onto the Best Ideas List. The stock was already a stock that we considered to be high-quality. So, like you say, it's got a narrow economic moat, which is based upon customer switching costs. It's got a very large global addressable market. We think there's going to be strong growth, at least for the next 10 years for the company. And it's a very innovative company as well, for example. So, it's constantly improving its products, and it's used by the largest logistic companies in the world. So, it's got very high-quality clients as well. So, there's lots of things that we like about the company, but now it's cheap as well, which is why it's gone onto the Best Ideas List.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Rapaport: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">And is it fair to say amid all this disruption in global supply chains that this is actually potentially even a good time to be WiseTech?</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">James: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Yeah, that's right. I mean, WiseTech is relatively new software and it's replacing an old software that doesn't work very well, which is inside of all sorts of logistic companies around the world. So, WiseTech's software is extremely user-friendly. It's based in the cloud. It's a very clever software. And the events that are happening in the world, such as supply chain disruption, those kinds of things are only going to encourage logistic companies to switch to the more modern, more sophisticated software such as WiseTech's software, and WiseTech is really one of the leading providers in the world in this space now. So, it's really in a good space to benefit from this shift towards cloud-based software.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Rapaport: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Well, thank you very much for joining us today, Gareth.</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">&nbsp;</span></p> <p class="MsoNoSpacing" style="text-align: justify;"><strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">James: </span></strong><span style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-ansi-language: EN-US;" lang="EN-US">Thanks, Emma.</span></p> <p>&nbsp;</p>

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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.