quarterly webinar glennon for personal use only capital · • 30% of american households don’t...

GLENNON

CAPITAL

QUARTERLY WEBINAR

GLENNON.COM.AU

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GLENNON .COM .AU

The information provided in this presentation has been prepared by Glennon Capital

(ABN 84 137 219 866, AFSL 338567). The information herein is provided for information

purposes and should not be construed as an offer for sale.

Whilst Glennon Capital has taken all reasonable care in producing this information,

subsequent changes in circumstances may occur at any time and may impact on the

accuracy of the information. Glennon Capital Pty Ltd believes that any information herein

is accurate and reliable, but no warranties of accuracy, reliability or completeness are

given (except insofar as liability under any statute cannot be excluded). No responsibility

for any errors or omissions or any negligence is accepted by Glennon Capital Pty Ltd, its

related bodies corporate or any of their respective directors, employees or agents.

This presentation has been prepared without taking into account the investment

objectives, financial situation or needs of any particular investor. This presentation should

not be relied on as the sole basis for investment in a portfolio managed by Glennon

Capital.

DISCLAIMERF

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WEBINAR

AGENDA

1 Market Update

2 6 Current Market

Themes

3 Business Update

4 Portfolio Update

5 OutlookFor

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MARKET UPDATE

WHAT IS HAPPENING IN

SMALL CAPS?

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98

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June Quarter Small V Top100

Small Ords ASX 100

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66

90

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12 Month Price Chart

ASX 100 v Small Ords

Small Ords ASX 100

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95

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Quarter Small Industrials V Small Resources

Small Industrials Small Resources

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12 Month Price Chart

Small Industrials V Small Resources

Small Industrials Small Resources

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MARKET UPDATE

5 CURRENT MARKET

THEMES

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1THE ROYAL COMMISSION

HAS MADE LOANS

HARDER TO GET

• The Chinese are no longer fuelling property in Australia.

• Harder for anyone to get a loan following on from the royal commission.

• The “Wealth Effect” of rising house prices has ended

• “Sub-Prime” lenders will do well in the short term. The risk is that the listed

lenders in this category ease the lending requirements to grow short term profits.

Essentially lending money to people who shouldn’t be able to borrow money.

• Westpac has announced they will stop lending to self-managed super funds.

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Debt as a percentage of household income

has increased.

Will be a problem if interest rates increase

We are at historical low levels.

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GROWING

INDEBTEDNESS CAN’T

CONTINUE

There has been consistent long term wage

growth however house prices have

significantly outstripped wage growth.

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Australian house prices are significantly over

inflated relative to international markets.

All signs are pointing to a pull back in house

prices or at least a long period of flat growth as

the market catches up with itself.

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OUT OF KILTER WITH THE

GLOBAL MARKET

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There is no confusion as to where we sit in

the investment cycle.

Avoid broad based market correlated

investments.

Long only ETFs, Index funds.

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ITS VERY CLEAR WHERE

WE ARE……

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Commonwealth Bank

BHP Limited

Westpac

CSL

ANZ

14

THE AUSTRALIAN

MARKET IS TOP HEAVY

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APPLE

AMAZON

ALPHABET

MICROSOFT

FACEBOOK

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THE US IS THE SAME

HOWEVER THEIR TOP

COMPANIES ARE GROWTH

COMPANIES

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Our Investments in mining

services provide us with exposure

to the recourse sector.

There was significant

underinvestment in 2015 and 2016.

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2CHINA, STEEL, COAL

AND RESOURCES

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3ELECTRIC VEHCILES A

KEY DRIVER OF SMALL

COMMODITIES

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ELECTRIC VEHCILES A

KEY DRIVER OF SMALL

COMMODITIES

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4DISRUPTION STILL A THEME

PLAYING THOUGH SMALL &

MICROCAPS

• 30% of American households don’t have a credit card

• Of Americans 35 and younger, 58.9 percent hold credit cards

• A Fed survey found the 18 to 24 demographic preferred to pay cash more

than others. And if they do carry a card, it tends to be of the prepaid or debit

variety, TD Bank found.

• A recent analysis of Fed data by the New York Times showed that “the

percentage of Americans under 35 who hold credit card debt has fallen to its

lowest level since 1989”

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DISRUPTION STILL A THEME


MICROCAPS

Source: CNBC 8/11/2017

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DISRUPTION STILL A THEME


MICROCAPS

Source: CNBC 8/11/2017

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5MANUFACTURING IS

CHANGING

• 3D Printing will change

manufacturing

• Expected to be 40% of all

manufacturing in 20 years time

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BUSINESS UPDATE

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EXPANDED TEAM

PAUL BOLINOWSKY – CHIEF EXECUTIVE OFFICER

BROOKE LOGAN – MARKETING DIRECTOR

JACKSON LEE - ANALYST

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SKIN IN THE GAME

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

19/09/2017 9/10/2017 24/04/2018 18/06/2018 19/07/2018

Director Purchases

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PORTFOLIO UPDATE

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2727

BEST STOCK ABSOLUTE

RETURNS QUARTER

-30 -10 10 30 50 70 90 110

Dropsuite Ltd.

Titomic Ltd

Afterpay Touch Group Ltd.

Emeco Holdings Limited

BOUNTY MINING LIMITED PRE IPO

BWX Ltd.

Lovisa Holdings Ltd.

Noni B Limited

Cann Group Ltd.

Shine Corporate Ltd.

Fiducian Group Ltd

Service Stream Limited

Pioneer Credit Ltd

Xref Ltd

Experience Co Ltd

Smiles Inclusive Ltd

Swift Networks Group Ltd.


a2 Milk Company Ltd.

Uscom LimitedFor

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CONTRIBUTION TO

RETURN - QUARTER

-0.60 -0.10 0.40 0.90 1.40 1.90 2.40 2.90



Titomic Ltd

BWX Ltd.

CML Group Limited


Dropsuite Ltd.

Alliance Aviation Services Limited



Apollo Tourism & Leisure Ltd



Pioneer Credit Ltd

Axsesstoday Ltd.

Fiducian Group Ltd

Uscom Limited


Experience Co Ltd

a2 Milk Company Ltd.For

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CONTRIBUTION TO

RETURN - YEAR

-2 -1 1 2 3 4 5 6 7 8




CML Group Limited

Titomic Ltd

Axsesstoday Ltd.


National Veterinary Care Ltd.


Money3 Corporation Limited

GO2 People Ltd.

Swick Mining Services Ltd


MSL Solutions Ltd.

Pureprofile Ltd.

Webjet Limited

BWX Ltd.

PMP Limited

Vita Group Limited

Mitula Group Ltd.

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BEST STOCK ABSOLUTE

RETURNS YEAR

-50 -- 50 100 150 200




CML Group Limited

Byron Energy Limited

Otto Energy Limited

Axsesstoday Ltd.


Dropsuite Ltd.

Swick Mining Services Ltd

Consolidated Operations Group Ltd Registered

Knosys Ltd.

Vita Group Limited


MSL Solutions Ltd.

GO2 People Ltd.

Webjet Limited

PMP Limited

Pureprofile Ltd.For

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SHAREHOLDER

COMMUNICATIONS

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AGM

Open to shareholders and non-shareholders

Opportunity to meet the team face-to-face

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NEWSLETTER

Weekly newsletter with updates on the portfolio.

Updates on events

News on small cap companies

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WEBINAR

Regular Quarterly Webinars

Can register on our website

Quarter 1

March

Quarter 2

June

Quarter 3

September

Quarter 4

December

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NATIONAL

ROADSHOW

Perth Melbourne Adelaide

Brisbane Sydney Canberra

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SOCIAL MEDIA

Facebook

Twitter

YouTube

Blog

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G L E N N O N . C O M . A U

QUESTIONS

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quarterly webinar glennon for personal use only capital · • 30% of american households don’t...

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