Frazis Capital Podcast

By Michael FrazisBusiness Investing

Frazis Capital Podcast episodes

April 17, 2020 Episode 27: Coronacrisis Recovery?
Peter Stevens joins us once again - and will upload notes for this shortly.
43 min
April 10, 2020 Episode 26: Deeper into the coronacrisis
Michael Frazis and Peter Stevens discuss the latest developments.
49 min
March 09, 2020 Episode 25: Market sell-off and interesting times
Peter Stevens joins us to talk about the market sell-off, how we're positioned, and interesting opportunities that we've found.
If you'd like to know more about us see:
www.fraziscapitalpartners.com
Peter writes his own market commentary here:
https://insufficientcapital.com/
0:24 – Peter wipes away his tears
0:50 – There’s growth and then there’s growth (e.g. Afterpay vs Zip)
1:30 – Why you should pay up for quality businesses
2:17 – Illiquidity during sell-offs
2:50 – Electro Optic Systems (ASX:EOS), a great business that does not fit ESG criteria
3:35 – Analysing quality within the WAAAX (the Australian equivalent of the FAANG)
4:54 – Frazis Capital’s avoidance of education and tourism stocks
5:50 – Peter and Michael look at Qantas (ASX:QAN), Australia’s major airline
7:40 – Theoretically maintaining a 20% cash position
8:00 – Michael discusses Ray Dalio’s “Principles”
9:25 – Carvana (NYSE:CVNA), Frazis Capital’s largest coronavirus casualty
10:22 – Afterpay’s (ASX:APT) accelerating growth and Frazis Capital’s internal forecasts
11:40 – Afterpay’s US in-store opportunity
12:30 – The benefits of an equities/treasuries strategy over popular options strategies
13:43 – Global stimulus packages and expansionary monetary policy
14:13 – Renewable energy businesses and how they may benefit from stimulus packages
14:45 – Twist Bioscience (NASDAQ:TWST), a well-performing Frazis Capital position
15:30 – Viruses tend to become less dangerous with time because of evolutionary pressures
16:55 – Gilead’s (NASDAQ:GILD) antiviral drug and the coronavirus
17:25 – Some Aussie smallcaps touting business expansion into virus-induced growth industries (e.g. hand sanitizers, diagnostics)
18:30 – The panic in supermarkets parallels the panic on markets
19:08 – “Buy when there is blood in the streets” (Baron Rothschild) and its relevance to this sell-off
19:25 – The origins of Rothschild’s famous blood in the streets quote
20:45 – Frazis Capital portfolio construction during the coronavirus sell-off
21:55 – Zoom’s (NASDAQ:ZM) coronavirus rally and its rich valuation
23:00 – Peloton (NASDAQ:PTON) and Carnival (NYSE:CCL), two stock picks from NYU Professor, Scott Galloway
26 min
February 28, 2020 Episode 24: Coronavirus - what's going on? Claude joins us to talk about the impact on specific stocks, and we also cover Afterpay's results
Three things you didn't know about the the virus, an Aussie company that stands to benefit, and two in the United States. Afterpay's results... this was a quick one, but a good one.
If you'd like to know more about us see:
www.fraziscapitalpartners.com
You can find Claude at
www.arichlife.com.au
0:50 – Michael gives an update on the underlying science of the latest coronavirus
1:44 – The importance of understanding the spike protein
2:05 – Why the coronavirus is so much more infectious than SARS
3:14 – Claude shares his thoughts on how the spread of the coronavirus may play out
3:30 – Michael discusses the recent coronavirus tests using SARS antibodies
5:02 – Claude reveals his plan of action if Australian coronavirus transmission increases
6:20 – Discussion of Swine Flu
7:30 – The issue with unpredictable virus mutation
9:30 – The effects of temperature on the coronavirus
11:00 – Discussion of Biotron (ASX:BIT), an Australian biotech which could combat coronavirus
11:23 – Claude discusses his position in Teledoc (NYSE:TDOC), a company benefiting from the coronavirus
15:16 – Portfolio performance during sell-offs and the resilience of the healthcare sector
16:50 – Afterpay (ASX:APT) results discussion
21:10 – The coronavirus sell-off, a glitch in the long-term charts
23:00 – How systematic trading in markets exaggerates moves
25 min
February 25, 2020 Episode 23: Time to sell? Mike and Claude go through Shopify, EML and other cult stocks in the market right now
Episode 23: Time to sell? Mike and Claude go through EML, Shopify, Wisetech and other cult stocks in the market right now.
If you'd like to know more about us see:
www.fraziscapitalpartners.com
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

45 min
February 16, 2020 Episode 22: Aussie growth stocks for the next decade? Mike and Claude talk Polynovo, Avita, Audinate, Pro Medicus and Afterpay
Mike and Claude from A Rich Life (https://arichlife.com.au/) talk Australian growth stocks for the next decade.
If you'd like to know more about us see:
www.fraziscapitalpartners.com
0:38 - Claude's background and time at Motley Fool
4:30 - Pro Medicus (PME:ASX) recommendation and discussion
6:38 - Claude touches on his investment style
8:08 - Pro Medicus as a platform business rather than just a software business
8:30 - Pro Medicus - the numbers
10:20 - Claude dives into Pro Medicus' two key revenue streams
11:50 - Michael introduces Alteryx (AYX:NYSE) and accounting standards
14:45 - Claude's worst mistake (Touchcorp)
17:30 - Claude touches on cognitive errors
18:10 - Michael discusses Afterpay (APT:ASX), comparing it to some US tech investments
19:25 - Afterpay, the YOLO stock?
21:55 - The network effects of Afterpay
22:30 - Consumer behaviour of Afterpay customers
24:38 - Claude introduces Avita Healthcare (AVH:ASX), discussed in Frazis Capital's previous podcast
26:58 - Avita's opportunity in vitiligo and skin rejuvenation
29:59 - How to value a company like Avita when there are no conventional cashflows?
32:02 - When should you sell a company like Avita?
35:20 - BARDA's funding of Polynovo (PNV:ASX) and Avita
37:40 - Claude goes through Audinate (AD8:ASX)
41:55 - Audinate's financial numbers
45:00 - Audinate's next 5 years
48:00 - Claude talks about his new project, "A Rich Life"
50 min
February 12, 2020 Episode 21: A high-tech company with explosive growth...and various other science things you don't want to miss
Matthew Shribman has accumulated over 25 million views across platforms for his 'Science in the Bath' series, available here: https://www.youtube.com/channel/UCoSRNBi6F4jN0CYq-sRcOHQ
We talk about how birds literally 'see' the Earth's magnetic field, and cover Twist Bioscience, a company that's revolutionizing gene synthesis. Twist is working on DNA as a viable storage medium for computers, drug discovery, genetic sequencing and synthetic biology. This is a little more sciencey than usual, but I think you will enjoy!
If you'd like to know more about us see:
www.fraziscapitalpartners.com
Timestamps:
0:11 -- Introducing Matthew Shribman
3:00 -- Whale carbon sequestration

4:30 -- Matthew's bird migration project at Oxford

6:50 -- How bird compasses work

9:03 -- How to photograph molecules with lasers, prisms and mirrors

15:49 -- Our new investment in Twist - revolutionizing DNA synthesis

17:53 -- Twist's take on drug development

19:08 -- DNA as a storage medium for computers

24:33 -- Weather patterns & climate explained

27:02 -- The PT extinction event

27:45 -- Pension funds and ESG investing

28:29 -- Coal & the broader energy sector getting hit twice

31:00 -- The inefficiencies of "QWERTY" keyboards

36:57 -- Synthetic biology for fuel

40:33 -- Discussion on nuclear & its safety

41:55 -- Israeli innovation for energy storage

44:08 -- Science innovation coming out of Oxford
46 min
February 05, 2020 Episode 20: Australian bushfires, and two Aussie companies revolutionising burns treatment
Peter Stevens joins us to discuss Coronavirus and two Aussie burns innovators: Avita and Polynovo. Find more information about us here: www.fraziscapitalpartners.com And please get in touch if you have questions you'd like us to answer on the podcast, suggestions or feedback.
If you'd like to know more about us see:
www.fraziscapitalpartners.com
00:28 – Coronavirus, and how to calculate the real mortality rate
02:20 – The common cold is a coronavirus
04:18 – Market performance during past pandemics
05:00 – Why you shouldn’t sell your stocks because of the coronavirus!
07:00 – Australian bushfiresand two Aussie burns innovators
07:50 – Introducing Polynovo (ASX:PNV) and how the firm’s improving the existing standard-of-care for serious burns over the incumbent, Integra
14:40 – Avita (ASX:AVH)
15:12 – Avita's RECELL system
16:16 – How ReCell improves recovery
17:10 – The opportunity in Vitiligo
19:12 – Skin grafts
19:47 – How Avita fits within our focus on customer love
20:45 – Avita’s opportunity in skin rejuvenation opportunity
22:40 – Australian life sciences successes of the past
25:10 – The real value uplift opportunity in life sciences
26:50 – More customer love!
27:18 – Avita and Polynovo's cash situation
28:40 – Mesoblast
30:50 – Bitcoin, the life sciences, and tying it all together.
33 min
February 04, 2020 Episode 19: How we’re different
Peter Stevens rejoins us to discuss investment strategy and our top new picks.
If you'd like to know more about us see:
www.fraziscapitalpartners.com
1:00 – Recap of 2019; how shorts hampered performance and the stocks that went well
3:58 – Why doing less is a key lesson
5:58 – Where Frazis Capital sits in portfolios
8:06 – How companies like Xero and Afterpay shot the lights out and how investors can find the next 20-baggers
14:14 – Michael Frazis’s background
17:30 – The only ‘real way’ to make money
18:46 – 3 most exciting companies in the Frazis portfolio
20:34 – The thesis for investing in life sciences companies
29 min
December 20, 2019 Episode 18: Portfolio updates and new ideas with Peter Stevens
Peter Stevens joins us to talk about some of our long held investments and latest new ideas. Peter Stevens has rejoined Frazis Capital Partners, and writes his own market blog here: https://insufficientcapital.com/
If you'd like to know more about us see:
www.fraziscapitalpartners.com
43 min