Just before we head into today's episode, we'd like to acknowledge and pay respect to Australia's Aboriginal and Torres Strait island of peoples. They're the traditional custodians of the lands, the waterways and the skies all across Australia. We thank you for sharing and for caring for the land on which we are able to learn. We pay respects to elders past and present, and we share our friendship and our kindness.
She's on the Money, She's on the Money.
Hello, and welcome to She's on the Money, the podcast for millennials who want financial Freedom. You all adored our episode earlier in the year detailing the top five ETFs of twenty twenty one. So today we're going to steal that fall and do the exact same thing.
But we've got a different co host. We've got Georgia not the producer says so look, maybe it was such a great episode because I wasn't on it.
Who knows.
We did get great feedback for Sammy Boyer, that's not the case.
I'm back in the chair. We missed our g king asking the questions.
Thanks too well. So today, as I said, we're going to be stealing that format, but we're looking at the top five performing shares on the ASX two hundred from last year, so we're moving to shared George shares.
Correct genius. Now the original guy.
Exactly my name is Georgia King and joining me to reflect on exactly what happened last year and why is Financial Advisor Victoria Devine v You're basically bursting out of.
Your boots over there.
As they say, on a scale of one to ten, how excited are you for today's episode?
Probably like an eight point three j King. I reckon it's not a nine or a ten on the NPS or the Net Promoter Score scale, because I don't want people think I'm too excited. It's pretty up.
You're being modest. Well, I'm about a two.
Oh wow, gee, you're so invested in our community, their education and just being along for the rug.
Energy is a ten, and my inquisitive nature is a ten.
But I am a little nervous.
Because we are talking about the one topic that I know very little about because I'm an ignorant little mole, which is.
So throwing yourself further onto the bar.
Just too much.
But I guess in terms of the structure of today's episode, it makes sense to go from five to one.
And obviously we're just ramping up the excitement and you guys are going to go, wow, can't believe it. The countdown is on. It's going to be like New Years but better. Like you know how people like do the big countdown. It's like it's like that, but like terrible.
Exactly right. So with that said, Fee, let's get straight into it.
I reckon we get straight into it as well. And I think it's absolutely no surprise to you guys that I have finally convinced the whole of the Sheese on the Money team to let me do more investing content talk about shares, because it makes sense for us to take that next step in our financial literacy and make that part of our daily language. And you know exactly what we're talking about. But the past year or the entirety of twenty twenty one didn't turn out how we all thought it would.
Gee.
I believe we called twenty twenty that what was.
It, the garbage fire, called it.
The garbage fire, and we thought it was done. It was not done. We had to emit back down. Yeh, take a big slice of humble Pire because we weren't done, and it definitely wasn't without its challenges, and overall it did turn out to be a better year for investors than twenty twenty did. But the same way that twenty twenty was dominated by Covid impacting the share market, that happened again in twenty twenty one. And I think there was a lot more conversation in twenty twenty one about
the rising prices of inflation. We're talking about that a lot in our community, and you know, the tightening of our I guess bootstraps, you could say, when it came to assets, because we were like, how long is this
actually going to go for? I think a lot of people would have felt, okay, well, twenty twenty's over, twenty twenty one is here now, and I'm going to be okay, And it's kind of like, oh, actually, a lot of us are now realizing that work from home is actually going to be the reality, and that the world is changing and has changed for not just the better, but pretty significantly, and it's not going to be changing back.
And I think a lot of us, myself included, just assumed that things might step back into what our old reality was and that's just g now, not what's going to happen. A lot happened in the share market, and today we're actually going to talk about only the top five performing shares from the Australian ASX Top two hundred.
And the reason I have chosen the ASX Top two hundred, because obviously that top two hundred doesn't encompass international shares, is to make things cleaner and clear and give us the ability to talk about brand names that we've not just heard but are on our own soil and on our own turf. Like it's so fun to talk about Tesla, it's so fun to talk about Apple. But those things to me feel a little bit distant and therefore we're not as involved. So we could talk about how well
Tesla did. Yeah, does that impact your I directly because it's not actually our share market unless you actually invested in it directly. Not really. But what I want to talk about today at the top five performing shares here in Australia that are sitting on the ASEX Top two hundred and G. I know you cannot wait to get into it.
I am stoked, but.
Before we do, we probably should talk about the ASEX Top two hundred performance across the board, right, So the ASX two hundred encompasses two hundred of Australia's biggest companies, So the biggest companies in Australia all make this list, and sometimes it changes out, some drop off, some come
back on, but it's pretty consistent. And at the start of twenty twenty one, in January, the AX start at six thousand, six hundred and eighty four dollars and twenty five cents, so that's what it was worth in general if you held all of them, and then there was obviously some volatility and the very first half of the year.
It then in August, specifically on the thirteenth of August, it hit a high for twenty twenty one and it came in to be valued at seven six hundred and twenty eight dollars and ninety two cents g king on tour, which is pretty exciting because that's obviously a fairly nice increase, But then it did decrease, so don't be too excited.
That doesn't mean you should go out and invest in the ASEX Top two hundred because on Friday the seventeenth of December, the ASEX closed at seven thousand, three hundred and three dollars and ninety seven cents, which is obviously a fair bit higher than it was in January, which is very exciting. So overall it has increased, but it wasn't the highest it had been that year for a multitude of different reasons.
Okay, I was just thinking, like, this will be a really interesting episode. I think people who were like really across investing in shares and they'll be like, I recognize that terminology, I know what's happening. I understand why that share performed so well. Yeah, and then there'll be people like my good self who will come to learn why certain shares do perform well and how they kind of function and the mechanics behind all of that. So really,
everybody wins. It's going to be a great episode. Exactly everybody wins. And I think the important thing here to note is that when I talk about the ASEX top two hundred, I'm essentially grouping all of those shares together
into one bucket, dividing their average returns. So it means if you were an individual investor, like you would be had you bought these individual shares that we're talking about today, there is absolutely no guarantee that you would have a positive return, right Like, if you were just picking the top ten or the top five shares that you wanted to invest in across twenty twenty one, that doesn't mean
you would have seen a positive return. Because some shares on the ASEX two hundred, they actually had negative returns. Some had really really big returns, and we're going to talk about them today, but it would be an interesting episode just to like talk more about the investing episodes I can do.
In the future. Bottom performing shares. Yeah, who dropped the most g king? Yeah? How when? Where? So I just
wanted to preface that. I mean, if you're not an individual share investor, which at the end of the day, I would not call myself an individual share investor, most of my wealth that sounds so wanky, it's not even that much money in the grand scheme of things, But most of my money that I have invested is actually split across to ETFG, which you would probably be surprised about because I don't ever want to invest in a direct share portfolio because I genuinely don't believe that I
am nearly as smart as the fund managers that are picking stocks in etf yeh. So I'm kind of like, all right, well that works for me, but G probably side eyeing me at the moment, because I do have a little bit of fun on the side when it comes to investments, Like if I see share that I'm really excited about want to invest in, I definitely do do that. I actually have and some of you might know this already. Do I have an investing book coming
out in September, Yeah, which is very exciting. But this strategy that I adopted is actually called a core satellite approach, where I have a core investment portfolio that I believe is like the core of my wealth creation. And for me, those are like the slow, steady steeds that are going to drive me forward consistently to create wealth. And then when we talk about satellite, it's literally like a satellite
flying around the moon. And those are little investments that I make to keep myself as an investor and as a financial advisor nourished and engaged, right because I don't want to go and bet all of my money on a share that I'm like, oh, this is probably going to do really well, and I want to have a bit of a play with these because I'm excited about it, but I'm not willing to bet my future wealth on that. So I do invest in individual shares, but I also
invest in a very well diversified portfolio of ETFs. So I feel like people, that's a bit pervy, isn't it.
That's very pervy and perhaps surprising to some listeners. Also very much so to say that you're not as smart as the managers of the funds, et cetera.
Oh, I mean when it comes to picking shares, I'm obviously smarter than than them different ways and spaces. So don't don't get to ahead of me.
The other thing we should say here, V is that in reflecting on these top five shares from the ASX two hundred, we're not saying that you should run out and buy shares in these today.
Oh my god, please don't. The volatility of the shares we are talking about today very volatile, got George. So, volatility in the share market means the ups and downs of the market. It is the ebbs and the flows, and the share market is far more volatile than like a cash investment. So SAYG, you've got some money sitting in a savings account, which I know you do, but what that is worth is not going to change whether
it is today or it is next. Because it's a savings account, you might get some sweet, sweet returns on your bank account, but I guarantee they're not that high because it's twenty twenty two and they're through the floor. So it's not going to change that much. But when it comes to the share market, and as you will see, volatility can be really high, but that doesn't mean it's
more risky. But when it comes to individual shares, that does increase your risk significantly more than picking something like an ETF. We are absolutely not endorsing these. We are not saying by these, We are not even saying consider them. We are saying, how interesting is it that these types of things happen? And this is essentially a piece of content for you guys to learn more about how the share market works. Absolutely not to be taken as advice. Good pick up their g Thank you.
So much, all right, V.
With that said, let's rip into number five. That is the share that came in at number five on the ASX two hundred last year. It is Unity Group Limited.
Yeah, who are they?
All right? G Unity Group Limited? They're asx code is UWL for anybody who wants to look them up. They're like a core technology infrastructure constructor, owner and operator of predominantly fiber cable networks so gking like the Internet basically, and associated technology that aims to provide diversified telecommunication products and services. So that sounds really sexy, but I guess to distill it down, they're essentially a telecommunications company that
most of us haven't heard about. So according to their Bloomberg profile because I looked them up on there, they were established relatively recently G And when I say relatively recently, I mean ten years ago. They were established in twenty twelve,
so they've become a pretty big business pretty quickly. But they're pretty, from my perspective, pretty interesting, and I suppose G in twenty twenty two, it shouldn't come as a surprise to us that a telecommunications company thrived during the peak of COVID.
Okay, I mean that kind of.
Makes sense, right, Like, there's been a lot of research about them. I've seen it a couple of times on stocks we should watch lists. Last year they had some really good results that were published about six months ago. Like they put out their financial results, which I think
was a very big main driver of their performance. And you know, they had excellent results which were really interesting because they made a lot of acquisitions or they bought a lot of other companies over the last twenty four months, so that was a really interesting thing to happen. But the thing that I'm most interested in is not just like, what does this company do and why are they on this list? Obviously they're on this list because they were
one of Australia's top two hundred companies. Kind of cool, but gee, they're on this list because at the start of the trading year, which is the fourth of January by the way, in twenty twenty one, their stock price was worth a dollar and seventy one cents. Pretty good, but a little bit higher than a lot of companies
in the ASX Top two hundred. But they're closing price at the end of twenty twenty one, which was the seventeenth of December twenty twenty one, g their share price was four dollars and sixty four cents, which means their percentage change was one hundred and seventy one point three percent.
N What, Okay, how good's that that?
Means if you and have done them at year, if you invested one thousand dollars in those shares at the start of twenty twenty one, you'd have twenty seven hundred and thirteen dollars in your account. Now very numbers, very pretty good size.
I reckon cheers Unity Group Limited. Okay, so you're saying that is largely because of the impacts of the penny D, the pandemic, I should say the penny D.
You're making it soround a lot more colloquial than it.
Actually a lot more fun than it was. So why exactly is that just because we were all spending more time online.
Look, it's not just because we were spending more time online. It was absolutely interesting to see that that happened. But they actually made a lot of acquisition. So they bought a lot of smaller companies during twenty twenty one, and that means that they obviously grew and and with really good financial reports, which as I said, about six months ago, even further back, they were reporting really good financials. And
when a company goes through an acquisition period. So an acquisition period is a period of time when companies like you know what we want to grow. But organic growth isn't fast enough for us. G Like, you know, growing and you know, posting on Instagram and stuff isn't going to cut the mustard. We want to go and take over other businesses, take their clients and fold them into ours, and that can turbocharge the growth of a company. But
that can do one of two things. From my honest and humble opinion, that can do what it did for Unity Group, which was turbocharged their financials and it all worked out probably exactly how they wanted it to, if not exceeded their expectations. But sometimes George that acquisition and therefore the merger, So the merger is whether two companies
come together, can sometimes be quite tumultuous. So investors are often a little bit apprehensive of getting involved in a company that's going through in m and A or emerger an acquisition period because they're like, either this could go really really well or it could go really really badly.
Like can you imagine two companies coming together, having two CEOs, two CFOs, two marketing departments, two HR departments, and having a business come together and go, hey, gee, we both are in HR, but we now only need one HR department, like as a business and as the way that business functions. Sometimes it can kind of crumble from within because the
business isn't functioning as it should. But then on the outward side of things, sometimes a business is acquired and they don't realize how much they need to change the processes or update the way things are working, or the cost involved to change old processes into the new processes that the company wants them to work on. So sometimes when that happens, like share prices go down because it
didn't go so well. But in this situation, their acquisitions really shone through the financial reports, and I think that a lot of investors saw that and were really happy with that. But also I saw a couple of times, and this would have been in early twenty twenty one. I feel like I'm getting two into this, so we'll move on in just a hot second. But I did see them at the start of twenty twenty one named
as a stock that was currently being undervalued. When you are somebody who researches stocks and looks into them consistently, and you know is on a lot of email lists of different investment companies like I am, that kind of shone through as are like, oh, why are they undervalued? Is that something I should be looking at to include in portfolios? And I have no doubt that a lot of people be looking at that going yeah, actually they
are undervalued. Let's get on that ship. And the thing that does really drive stock price is obviously you know, performance and key metrics, but also supply and demand. And so therefore demand could have increased because a lot of people are saying a lot of good things about them, They're doing a lot of great things, their financials are starting to look really sexyg and therefore demand has really
pushed up their share price. It's super exciting, but also probably worth mentioning that their stock price has are dropped by about ten percent in the air last few months. So we'll just sweep that off because we're not talking about twenty twenty one.
I can let's talk about that next year.
And as you said, Gking, these are not recommendations, but that is a reflection of the volatility of the market. So had you sold your shares on the seventeenth of December, you would have been up, but you wouldn't be up as much if you were still holding them today.
Man, how do you know though, how do you know when to sell?
You don't. You don't. There's no such time as when to sell. There's a time when you go, should I take some money off the table because it's too risky to leave it on the table in that share and I would like to take it off and put it in a more solid and consistent asset. But then there's also good financial planning, and you go, all right, well, at this age, I want to start selling down my portfolio, or I want to start taking my portfolio and transforming
it into more stable assets. So the closer you get to retirement, and I could go on and on and on about this g but the closer you get to retirement, the more stable your assets are likely to be, because you just don't have the time that a lot of us have for the volatility of the market to go up and down. And they say, when I say they, I mean the good investment companies of the world say that over your lifetime you will go through seven different
market crashes. So, as you know right now, the market has crash.
So a ticking one off, Yeah, it.
Went down three percent a couple of weeks ago because of you know, the stuff going on in Ukraine and it has gone down even further since then, and it's super interesting. But you know, we've been through the GFC, we've seen that, we've seen the COVID crash, We've seen that. Now we're seeing the Ukraine and Russia war crash. And it's not necessarily going to be a crash because I don't think it's going to impact the share market nearly as significantly as something like COVID, But we will see.
We don't know what the future looks like. But the one thing that we do know is that cycles are consistent, and there will be highs and there will be lows, and we need to take money off the table when we don't have any more time to see another low.
Okay, So no way of predicting it.
No way of predicting it. I'm sorry. I've said before, guys, I'd be so rich if I could predict the market. And guys, I'm trying, I'm real trying.
Yeah, thanks girl. All right, Well let's move on to number four if you're ready, you're happy with that, yeah, okay, So number five absolutely is Pilbara Minerals Limited.
Yep. So they are an Australian mining company. They call themselves emerging. That sounds a little bit sexier than just we're a mining company. Sure, I don't know. Emerging mining company sounds a little bit more ethical, but it doesn't change anything. But essentially they mine lithium and tan to light. I have no idea what tantalite is. And when I say I have no idea, I mean I had no
idea until I googled it, okay, and g tantalite. And I didn't know a lot about what tantalit was before I googled it, except for it is something that is mined pretty regularly in Australia. But essentially it's used in alloys for strength, and it actually has higher melting points than like glass, so it's used in glass to increase the index of refraction, and it's also used to give
more strength to things like surgical steel. So it's essentially like an important aree of the industrial useful metal category. If that makes sense. Yeah, okay, I hope that makes sense. But if we want to go a little bit hippie, if you had some tantalite that's actually a stone that would help is away thoughts that contain poor or wrongful judgment as well as thoughts that contain different types of negativity. So like, maybe it's a good stone to have.
I mean it could be. I wouldn't really be heading down that that line of things. But hey, maybe that's why they went up so much because people were really holding on to their crystals last year. Do I sound judgmental?
Yeah, because you know I loved crystals. That's so rude As someone who consistently is this too much information for an investing podcast? I consistently carry a rose quartz with me and it's usually guys, watch out for it. It's usually in my bra.
Really, actually, no, I think I did know this about you. I've forgotten, but now I've remembered.
It's a weird fact about Victoria divine, but she carries a rose quartz because it's not I don't know. It's not because I'm like, oh, it's a healing stone and whatever. Like I know it's the universal stone of love. But as someone who has gone through significant periods of doubt when it comes to self love, it was a very big part of my therapy a long time ago, and like by putting that in my bra consciously consistently and
having it close to my heart. It like kind of reminds me that self love and love in general is like the most important thing, and it's really important to me, So it kind of reminds me of that consistently. You know how some people wear rings or really beautiful bracelets
or like have physical reminders of things. You might get a tattoo, Like to me, that's something that I keep close to me because it's a physical reminder that self love is incredibly important and you can't pour from an empty cup, really soft, really moushy, would you like to talk a little bit more about Pilbro though.
Let's talk more about pill Borough. Yes, So why did they perform so well if it doesn't have anything to do with crystals.
So, g You're right, it didn't have anything to do with crystals, which is nice to know but really disappointing. But imagine if crystals were the reason that, like they surged, Like we all just wanted some rose quarts to put in our bras.
Yeah, no, big but ye.
But Pilbor minerals, as you said, they did pretty well. They are number four on our list. They surged by two hundred and sixteen point one percent in twenty twenty one. G so their opening share price on the fourth of January was eighty seven cents, and it increased to two dollars and seventy five cents, meaning if you'd invested a grand you would now have three one hundred and sixty one dollars in your account. That's pretty exciting. That's pretty good.
That's good. Well, it's the fourth best.
But if we want to talk about why and when and where and how, there was actually a pretty big scramble when it came to buying Pilborough shares last year, and the reason for that was there was just this ever increasingly bullish outlook on lithium. So when I say ever increasing bullish like, that's such investor speak, But what I'm saying is there was an ever increasing very positive outlook for lithium, like people were saying that lithium shares
were going to go nuts. And this then obviously led to many different types of lithium shares generating outsized returns for investors over the last twelve months. So demand for lithium as well has also been increasing for a number
of reasons. One it's mined in Australia, which is really not but one of the biggest reasons lithium is really important is because of the rise of popularity of electric vehicles G and this whole theme around decarbonization, right, So the demand is actually so strong that has been tipped to material outstrip supply over the next couple of years.
So these share price is increasing, but we are potentially as a country going to run out of the supply of lithium, So like, how's that going to impact share prices?
G How is it going to impact them?
Well, for a number of reasons, and to be honest, we can't predict it. But it's just really interesting lithium as well. You might have heard of lithium batteries before, not a new concept, but lithium batteries are obviously increasing in popularity, one because people are preparing for things like
COVID and shortages of things. But Pilborough Minerals actually has a battery material exchange auction and that's where they started auctioning off different metric tons of this product to different buyers. And I guess this shocked the market because it was obviously notably higher in price than it had actually been at the time, and since then the company has increased the price again and again, which is kind of interesting.
But unlike number five, which we were talking about before g and how they crashed, we shouldn't be talking about twenty twenty two because I meant to be reporting on twenty twenty one. But I found this really interesting. On the first day of market trade in twenty twenty two, Pillborough Mineral's share price actually meteorically rose and jumped another ten percent to be a share price of three dollars
and fifty two cents. Really like what it's increasing significantly, and so I guess it's not about whether you should invest. It's just an interesting I guess thought pattern around what's going on, because I would hold a little bit of apprehension when it comes to investing in something like lithium when the market has said we're going to run out of that as well, like how long is that going to go for? But then I'm also I'm a little
bit hippie. I just told you I had crystal in my bra I don't actually want to invest in a mining company, and in my portfolio, I don't have any mining companies because it's not aligned to my values. So regardless of what their performance are, I'm still not that attracted to the company. Does that make sense? Like performanceing and everything, like, it doesn't matter how big your returns our g it's not what counts. Before we had to break V. I'm going to make myself really vulnerable and
ask you a dumb question. No such thing, GQ.
This one could be mining.
Yes, we know coal mining hugely problematic, very bad for the environment.
Are there forms of.
Mining that aren't problematic or is it pretty much all Just let's steer clear from an ethical perspective, not for me, Like, what's your take on that?
I just feel like there's this gold rush for people who are doing quote green lithium right at the end
of the day mining in a stroke. You know, I'm going to get thrown under the bus for this, but it's still a dirty business from my perspective, Like mining for lithium like every other metal, is a dirty business because of the way it has been established, and it's very hard to change an entire mining company like you would probably be aware that entire communities around Australia are set up to support the mining industry and vice versa,
so changing that is incredibly detrimental. Like as much as I go, do you know what, I'm not going to put my money there. I don't support it. It doesn't mean I don't support the mining communities and what it does for the Australian economy. Like it's a very hard conversation to be had. But no, it doesn't necessarily mean
that they are doing it ethically. But it is interesting to see companies like Pillburrow who are coming out and saying okay, cool, like lithium goes into things like batteries for electric cars and wind turbines and you know, electric smart grids and all of those things help lower global CO two emissions, which is good. So they're really trying to work for the better. But it doesn't necessarily mean
that mining is quote good. But I think when they're starting to shift the narrative of what they're putting their product into and the purpose of their business and their drives and their ethics, I think that things are changing. But it's going to be a long slog because you can't just pick up a mine and change it into
being a green, ethical business. And at the end of the day, we still have cars on the road, we still need, you know, sources of energy that aren't renewable, but I think that we're making good steps in the right direction, and from my perspective, boycotting companies that are mining is not going to help us, because they're the companies that are starting to set new standards for what is acceptable in this space and are really listening to
consumers and changing that. And I mean, I'm not the biggest fan of BHP, but they're doing a lot in that space to work out how they can be sustainable and how they can impact the world in a very good way. Doesn't mean what they do at a base level of something I totally agree with. But I think what I really appreciate this. Okay, we hear this is it.
It doesn't mean we shouldn't support the companies if they're growing and changing and you know, really trying to impact the world in a good way while not trying to just like cut you know, this resource from underneath other people's feet.
Interesting food for thought.
Let's go to a break, gah, let's do a little break for sure, all right, VD, we are back to reveal number three on our list. It is, of course emugen limited immogen.
Is that how we're saying.
Perhaps it is spelt I am U g E N e I'm going to go out on a whim here and say, perhaps it has something to do with genetics, with some genes.
And they've nailed it and they've gone up Mrgin.
Yeah, I like that. If you've got any other guesses.
Maybe something about imaging or imagining. Perhaps it's a creative No, you're right, writer, I'm right.
I mean not genetics but immunotherapy. Okay, so like along the right I guess you're along the right way, the imugen how did you say it before, like emugen something emugen. I think they might call themselves in immugen like imagen just because yeah, like imagen, only because they do immunotherapy. Like I think that that's where they've probably got their name. Okay, like eugene is I don't know, Like this isn't the purpose of the podcast, but now I'm really interested. Do
you know why they call themselves that? But they're a clinical stage immuno oncology company that is developing a range of new treatments that seek to activate the immune system for cancer patients. That's pretty cool.
Yeah, so probably not something for me to be making jokes about. No, look, not jokes, but it's okay. But this sounds very interesting and very helpful.
It is very interesting and very helpful. So gee the reason they are performing so well in the market is because of one, they're doing some really cool work that looks like it's going to be very successful, which is
very very exciting for that space. But also in twenty twenty one, they did a whole heap of immuno oncology research activities that were undertaken in the financial year ending June thirty, twenty twenty one, so it happened in twenty twenty two, but they reported on that research at the end of June twenty twenty one, and that research actually landed them a grant to get a pretty big tax refund, and they got a six point five million dollar cash
boost which aimed to support commercial and clinical milestones. So that means that they are taking things that next step further and they're going to start actually doing even more testing, which is like ticking off the next boxes making sure that their milestones are reached, and several of which have actually been ticked off this year. As I said, I probably shouldn't be talking about twenty twenty two, but they have ticked off a number of different milestones this year
and they are really gaining momentum. And in fact, what was it like about two weeks ago they're actually in announced that they had secured a patent for its hervas immunotherapy candidate in South Korea, which is very very exciting because her Vax was a gastric cancer research initiative that they started in twenty sixteen and it's now I guess it's getting the funding and the patents that they need to be successful, which is very very exciting for the
future of science and medicine. And it just looks like they had good eggs doing really good things.
S geeking amazing in terms of the specific So where did they start on January fourth, twenty twenty one and where did they end?
Oh?
You know the dates now, yeah, your share master, I love it. On the fourth of January, their share price was sitting at ten cents, scheeking.
Cheapest chips, Cheapest chips.
But the closing share price on the seventeenth of December doesn't sound impressive, but I promise you it is. Their closing price was forty six cents, so their percentage change was three hundred and fifty five percent. And to put that in context, in the way that I have done for all the other share If you had invested one thousand dollars on the fourth of January and you were looking at your share portfolio on the seventeenth of December,
you would have four five hundred and fifty dollars. So not bad, that's a pretty good size.
So riddle me this thoughby because I'm looking at the chart in front of me, and you've got Unity Group Limited my mates. So if you bought one of their shares, it would have cost you one dollar seventy one at the start of the year and by the end of the year four dollars sixty four. Yeah, the percentage of the increasing gross is less than imagen, but they've only gone up by thirty six cents.
What does that mean?
Like?
What am I missing that? What am I not getting?
Like if we go to the bottom, it says one seventy one and then it says four, so like that's like three dollars and then if you get so it's not thirty.
It's actually the percentage change.
What does that mean?
So the percentage change is the like one hundred percent of one dollar would be one dollar, right, So if something went from one dollar to two dollars, you would say that has increased one hundred percent, right, So when you say, imugen, for them to go from ten cents to forty six cents, that is a very significant jump. And when you look at the percentage change of what they are worth, like one dollar seventy one to four dollars sixty four, that's a difference of one hundred and
seventy one percent ish. But then the difference of ten cents to forty six cents, that's actually a jump of three hundred and fifty five because if we distill it down, right, if you take that ten cents and times it by four, that would become forty cents. Yeah, yeah, yeah, which is why the percentage says it's three hundred and fifty five percent, because it's actually pretty much quadrupled.
This makes sense?
Does that make more sense?
It makes not a lot of sense.
Not a silly question at all, because you look at the percentages and you're like, what does that even mean? Like, what's three hundred and fifty five percent? Why is that so much more when they say ten cents and the others like a dollar seventy one, it's actually the percentage
and the difference in comparison to where they started. Whereas, g if we took the opening share price for Unity Group, which is a dollars seventy one, and just times to that by four, which would be four hundred percent increase, you would actually have a share price of about six dollars eighty four in comparison to the four dollars sixty four they had, which was one hundred and seventy one percent of an increase. Does that make sense?
It does make sense. Yeah, you just kind of need to stop and think about it, because at a glance, it doesn't make sense if you don't have a maths brain like I don't.
Yeah, look, the numbers are pretty scary, which is why I actually wanted to contextualize it with that. If you invested one thousand dollars, this is what it would mean. Because a lot of us don't have the ability genuinely, not because we're not intelligent, but because our brains work in a linear way. We don't have the ability to comprehend what that means. We go, what the hell, how
does that work? Because our brains actually literally are wired to work in linear way, we don't actually have the ability literally scientifically g to contextualize percentages as well as we do what that would mean to us? Literally?
Okay, kind of cool, very cool.
Was there anything else you wanted to cover? Re imagen or should we move on to number two?
We should move on. We've got more percentages to talk about and digest. I reckon, We move on.
All right, drum roll? Number two?
Is Lion Town Resources Limited. Maybe it could be something to do with Zoo's Zoo doctors.
Not sure, talk us through it.
Okay, sure, We're gonna move from Pillborough, which was a lithium mining company, to Liontown, which is also a lithium mining company. Very big forum, I know, very very exciting. But they have had an incredible twenty twenty one and I feel like Lion Town is a very exciting place to be. They have actually searched once again this year.
As I said, probably shouldn't be talking about twenty twenty two, but we all keep up with it because Line Town in the last couple of weeks has actually signed a lithium supply agreement GE with Tesla.
Ah, there you go, I know, and that we're saying, oh my god, like because we know how big Tesla is and you now know that lithium is what creates the batteries that run cars like Tesla, and I find that so interesting that you immediately went oh because you knew the brand name, and that's what's going to happen.
The more we talk about share prices, and the more we talk about shares in general, you're gonna be like, oh, Lion Town, aren't they the ones that signed that contract? Like that makes sense that they would be thriving. So it's kind of interesting, right, So let's get into the numbers. Because these guys started at a not so sexy beginning. And when I say not so sexy, I mean it wasn't like Unity Group, who had a dollar and seventy one,
which was pretty high. Liontown Resources opened on the fourth of January GKiN with an initial opening price of thirty four cents per share, so nothing to write home about, I wouldn't believe. But by the time the seventeenth of December came, they had a share price of a dollar fifty six, which you'll go the pillbro. They closed at two dollars seventy five. So is that not better? No?
Because their percentage change was three hundred and fifty seven zero point four percent, which means if you had invested a grant, you'd have four thy, five hundred and seventy four dollars in your account on the seventeenth of December had you invested for that entire period. Huge kind of.
Cool, right, Okay, So how come then, like, why is Lyon town? Why did they move so far ahead of Pilbarra if they're both in the lithium game, what was the difference there?
So lithium in Australia is nothing new. It is not something that we go, Wow, we're finally doing lith like we've done it for a long time. And so when companies that are, you know, plodding along and doing well start to do things like raising capital from institutional investors and shareholders, you start to go what are they doing? What are they planning? Why are they doing this? And that's when I guess the eye gets cast to them and you go, how are you doing? Like what do
your financials look like? You're being pretty aggressive in the market, and the business last year did a capital raise for institutional investors and shareholders and actually raised four hundred and ninety million dollars at a share price of dollar sixty five, which was essentially a fourteen point one discount to the last closing price, which is very very cool. This raising happened after they did what they called a DFS, which is a definitive feasibility study for a project that they're
planning to do in Western Australia. That project is called the Kathleen Valley Lithium Project, and the plan was they did this study to work out if it would be worth doing this new project and seeing if they could make even more money by mining even more lithium. And that obviously came out as a positive, and they essentially said that they could ramp up how much lithium they would do livering per year by year six. And essentially investors were at, great, that sounds fantastic. We'd like to
get behind it. So they did do a lot. They obviously went to institutional investors. When we say institutional investors, we need really big investors like banks. We're not talking really rich billionaires. An institutional investor is when a bank gets behind it and they go, yeah, all right, your business plan is pretty good. We'll give you some casholder
to throw in there and make sure that happens. But then they also obviously went to market and individual investors were buying shares, becoming regular investors, And essentially that means that that company, because of that capital raising or essentially just like fundraising that they've done for their business, they now have cash reserves of around four hundred and seventy four million dollars, which is pretty exciting because they're planning
on funding their new projects with that and they've you know, got a pretty good looking balance sheet at the moment, so I can see why people are looking at it going all right, that makes a lot of sense because in a addition to being successful with the project, that lithium company is actually going to increase jobs and services in wa for the mining industry as well, which is obviously all very healthy when it comes to I guess regular business operations.
Uh huh. And do we assume or perhaps you have.
The numbers in front of you that they're still killing it with the partnership with Tesla.
Yes, they are still killing it. The partnership that we're talking about with Tesla was actually only announced a couple of weeks ago. G It wasn't something that was announced last year. I just think it's really exciting and I knew you'd know what I was talking about.
Elon Musk.
Well with that fee, should we move on to the star performer of twenty twenty one?
Drum roll? Here is that?
Nah?
That would have been a terrible drum roll, but you guys are stuck with it because it's on the audio file.
So it is Nova Nicks Limited. Who on earth are these high flying people?
You're going to be surprised when I tell you our star performer for twenty twenty one was actually a battery materials and technology company, Bloody Batteries. I know they're doing so well on our share market this year. Here I am thinking when I started to do the research, because I didn't know off the top of my head of the top five performing shares, because I was like, I don't know who these guys are, because I don't invest in who's performing well over a particular period of time.
But it turns out Mining in Australia going off guys, This company, surprisingly or unsurprisingly specializes in lithium ion batteries used to power electric vehicles, mobile phones, and energy storage units, which is kind of exciting, but they are extra fancy gking because Novanix's clients include the likes of Panasonic and Bosh and with the high value battery market now being estimated to be worth about sixty billion US dollars per year each and every single year, like, I can see
why so many lithium ion companies have actually made it to the top five performing list of shees on the money share prices.
I know nothing about this, so it is kind of a shock to me, but anything would be. I guess what did Novnicks do differently or they have they just been around longer?
What's the go?
So they are a US based company and they joined the ASX in July twenty seventeen after the business was acquired by Graphite Corp. Which is another learning business in June. So they are pretty big and given they are an American business, they can be a little bit more I could say aggressive, because they are in general just bigger, right. And then in twenty eighteen, Novanicks began making battery cells
in Canada. They actually produced the first batch of cyndrical cell and pouch cells as its battery cell pilot factory in Nova Scotia.
Nova Scotia, Baby, Nova Scotia.
Is that right?
Yeah? I think so? How do you know that, I don't know. It would be in a TV reference from many.
Okay, awesome, So they made them there. They are a really big business. Since then, they've raised a lot of money to invest in that pure graph Fight joint venture and that has actually seen them become one of the biggest battery technology solutions companies in the world. So obviously with a pretty sexy list of clients and the fact that there is such a hunger for lithium ion batteries in the world, it kind of makes sense. And they've this year Gking come out on top.
All right, let's talk numbers. Then with novnix, what are we talking?
All right?
So these ones very impressive. So they had an opening share price on the fourth of January of a mere dollar and twenty two per share, which is not that sexy. I mean, Unity Group was higher than that, And there are a couple of shares that didn't perform nearly as well that had much higher share prices, right, but g on the seventeenth of December twenty twenty one, their closing share price was eight dollars and ninety four cents, which is a percentage change of six hundred and thirty two
point eight percent. Meaning to contextualize this, if you invested a grain and you'd have seven three hundred and twenty eight dollar US sitting in your account on the seventeenth of December, Like what, yes, thanks, yes, Like I want my investments always to increase by six hundred and thirty two percent, Like what, so.
That's pretty much double lieon town in terms of the percentage increase.
You're definitely on par. That's how that works. And it's super interesting, right to see how I feel like, percentage changes are really hard for us to comprehend because historically we've been taught there's no such thing as more than one hundred percent, like there is on the stock market
when it comes to percentage changes. And that's just to give you a little bit of context, right, Like six hundred and thirty two percent is not quote a percent, it's more a context marker that helps you see how much is increased by But to go from a dollar twenty two as an opening share price at the start of that year to eight dollars ninety four, which is basically nine dollars, is crazy, Like that's so much money.
G So hang on just a minute, miss Victoria divine. So this is the ASX two hundred from twenty twenty one that all Australian companies. You just said that Novakniks is American. What's happening here? They're taking our number one? What's up?
I know it's kind of rude, isn't it.
A little bit? How are they on this list?
So the ASX can actually have a number of different companies on it, So American companies can actually be listed on the ASX. And actually in recent years the AX has stepped up, according to them, it's efforts to attract foreign companies to the BOSS and this is just one of those companies that have decided to list down Under, which is kind of cool. So it means that we
have direct access to them. And yeah, summary of that, foreign companies can list themselves on the AX and g At current there are actually more than two hundred and seventy international companies listed on the AX.
How big is the ASX or the Australian Stock Exchange if we haven't said that made it clear.
Yes, so it's definitely not as big as some of the market exchanges around the world. But there are actually more than two thousand companies currently listed on the ASEX and lots of being listed regularly. So there are smaller companies and they are generally considered to be a little more risky when it comes to being an investment, as they are more likely to go out of business than
the larger ones. And the larger ones actually want to be on more global stock exchanges, which kind of makes sense.
And when you say the larger companies, you don't mean the number of employees that work there. You mean the revenue that they build.
Yes, but often with that comes headcount, right, Like, the more you are turning over, the more responsibility you have as a business, the more staff you are going to require to manage that, because you can't just go from earning one hundred dollars a week to earning one hundred million dollars a week and not have the right infrastructure
around you. And infrastructure is often made up of staffing. So, yes, you're right, could be based on turnover, but it also could just be based on the size of the organization.
Literally, Okay, there you go.
Actually, when it comes to the ASEX, I had an interesting one the other day and this is completely left field. So to wrap up all of that, I think it's just interesting to have a conversation about, well, who were the top five companies when it comes to direct performance and super interesting to see that it's lithium. But Ge, you just had a question about the ax And I actually had a message from someone the other day. They're like, I just tried to Google my share price and for
some reason it's not coming up. It's coming up as yesterday's date. And that's because here in Australia, our asx or, our stock exchange is actually only open from ten am to four pm Monday to Friday.
Did you know that, g I didn't know it was ten till four I knew it was Monday to Friday.
But is that really.
Nice relaxed hours? It depends. Our hours are ten to four pm, and hundreds of stock exchanges around the world operate in that way, but the timings are often very different. But we've got some nice relaxed hours when it comes to the share market and that has always worked out really well for me as a financial advisor because I don't need to be up at like five am to check the markets. I can cruise into work, get a coffee and then be there when the market's open. And
I am pre caffeinated. How good is that? G.
It's so weird because again, people probably do, but I don't think of it as like an actual market where things are happening every day and people are making these deals. Like you know, you just kind of think that it happens and you like buy and sell. I don't know, is that, oh you're looking at me?
No, no, no, no, no, I'm not. It's literally a market, like, yeah, it's a market where you buy and sell. And you know, I guess to trivialize my job for a second. I don't just rock into work with a coffee and then check the markets at ten am. A lot of what you know, investment bankers and investors in general will be doing before ten am is checking their emails and checking trades they want to make and submitting those trades. So
when the market opens they go through immediately. Like there's a lot to it, and it is quite interesting when it comes down to it, because you as a general investor, G, you go, well, it's not really a market, but it literally is all day every day from ten to four pm, people are making trades on the share market and prices are going up and down based on demand and based
on what's going on in the economy. Like a couple of weeks ago, we saw a crash in the ASEX and it went down across the board by more than three percent, and that's really scary, But that's based on demand. That's based on people going, oh my gosh, like this has just been announced. And when I talk about this, I'm talking about the war between Ukraine and Russia and this has just been announced and I don't want to
hold this particular asset anymore. So people are disposing of assets, and the disposal of assets, or people selling their assets is what starts to drive share prices down because people aren't being as aggressive in purchasing. It's a very interesting world to start learning more about.
G which is exactly why we did today's episode. Was there anything else you want to add before we head for the day. This has been a very long episode, but I've loved every minute.
It has been. I love you. If you stuck around for this, I hope it wasn't too dry or bland
or boring. Please please please slip into our DMS with feedback on episodes like this, because as much as they are dry, I feel like you guys learn a lot about the share market when I get to talk about individual shares, a lot about the AX, about how that works, about how shared trading works, and an episode on the needy gritty of g how can we trade on the ASEX is just not nearly as impactful as starting to deep dive into shares and then you asking context questions
around that. It's kind of like getting to learn while on the job in a way, and I feel like that most of the time is actually far more constructive for you than it is if I go, Okay, Georgia King. So the AX, let's talk about it, It doesn't make it as tangible or as real, whereas I think when we're talking about a particular share and how that works and what that means and how did they get on the ASEX, is actually a really interesting conversation to be at for sure.
And I think, as you said during this show, we should definitely take a look at the stocks that tanked and do like the reverse of this episode, because that sounds juicy totally. That'll be a really juicy episode. But that is, as always, all we have time for today. And remember, guys, that the advice shed on She's on the Money is general in nature and does not consider your individual circumstances. She's on the money exists purely for educational purposes and should not be relied upon to make
an investment or a financial decision. And we promise Victoria Divine is an authorized representative of Infocused Securities Australia.
Are you getting used to that or you still want to stay Australia Pacific because that's like soe G've lived.
In the past.
Man Australia proprior to limited Abian four seven zero nine seven seven nine seven zero four nine Aofosal two three six five two three. We will see you next week. Guys, see you next week, guys
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