23 Stocks for 2023 | Elders, Playside, Qantas and more! Pt I

Candice: [00:00:10] Hello and welcome back. Felicity, we're back in action. This is Talk Money To Me. I'm Candice Bourke.

Felicity: [00:00:17] And I'm Felicity Thomas. And this is Your Need To Know Wealth podcast, where we make the complex simple. 

Candice: [00:00:23] That's right. So we are back once again for a fresh new year, and we're bringing to you to kick off 2023 a special order pad. And you can probably tell by the excitement in my voice that it's one of our favourite episodes here at Talk Money To Me because we just really go deep into investable ideas for Maddox and companies and why we like them. We just love talking about money, the market stocks and exciting companies that have caught our eye.

Felicity: [00:00:48] Absolutely. So it's a good way to kick off 2023. So this isn't like any other order pad episode. Well, it's actually like the one we did at the beginning of 2022. You've spoken, we've listened. This is the first part of our top 23 picks for 2023. 

Candice: [00:01:05] Exciting, exciting. All right, now, before we get into today's conversation, please remember this is not considered personal advice, even though we are registered financial advisors at Shaw and Partners. As always, please note this podcast and the content discussed does not constitute as financial advice, nor is it a financial product. The content on this podcast is genuine and you should seek your own appropriate professional advice before making your financial decisions. 

Felicity: [00:01:31] That's right. So in fact, all companies discussed on our show are offered in good faith based on facts known at the time, and do not contain all relevant information in respect of the financial products to which they relate. And the facts are based on everything known right now, which is the 24th of the first 2023. So Candice, a lot has changed so far in 2023, even though we're only at really the end of January. So essentially the first thing is China's abandoned their zero Covid policy. So reopening the economy ahead of golden weeks, so large mass transit experience in the world. 

Candice: [00:02:07] Yeah, just in time for Chinese New Year. So that's a super exciting and interesting point for Australia because we are closely connected to the Asian economy. Secondly, it looks like US inflation is becoming a little bit more predictable than it was in 2022 and more well-behaved. Plus, it looks like rent inflation over there is falling. 

Felicity: [00:02:26] Yes, So there's a lot going on in the US at the moment. Now we've got a bit of interest rate hawkishness abating and future cash markets rallying at the moment. 

Candice: [00:02:34] Yeah, that'll be really interesting to actually see what the Fed does when they meet at the end of this month. A lot of speculation around that one. 

Felicity: [00:02:42] It's hard because we're kind of going a bit sideways at the moment because they're just waiting to see what's going to happen. 

Candice: [00:02:47] That's right. We're dangling on the edge. And I think one thing that has been a bit of a surprise so far is that consumer spending is holding up better than expected in terms of the fears of the rapid decline for this year. So that's an interesting point, too. 

Felicity: [00:03:00] Absolutely. So, I mean, sentiment here in Australia is still very positive as well as in the US. You know, consumers aren't really acting like a recession is coming. And remember, the US consumer is the bedrock and engine of the US economy accounting for actually 70% of US GDP. So as goes the consumer, so goes the economy.

Candice: [00:03:19] Yeah, really interesting to see. I read a really interesting article only yesterday. Five reasons why maybe Australia will avoid it. So fingers crossed we're not going to be hopefully tied as closely to, you know, overseas markets. It's such an interesting article that I want to share with you all. So it's going to be in the show notes below for you to check out. A next point Interesting to note is that financial conditions seem to be loosening, which is typically a signal that the market is getting better. So let's see what happens there. However, you know, the market is showing a different case study. It's really quite bearish, you know, a weaker first half of the year and hopefully a better second half of 2023. 

Felicity: [00:04:00] Yeah, I mean, that's really interesting because I think it's about 29 of the S&P 500 companies that have actually reported and 23 of them have actually beat expectations. Maybe that's because expectations were lower, I'm not sure. But, you know, I think it's a bit too bearish in my opinion. You know, especially in tech stocks, as tech stocks normally follow bad years with amazing years. So right now they're cutting a lot of fat, which I think is very important for the bounce back as really a lot of the tech firms did over hire during COVID 100%. 

Candice: [00:04:30] And not just in tech. A lot of different industries and sectors did take the good times really in their stride. So the final point to remember as we embark on a fresh new year in the capital markets is that the market state is signalling that it's not yet enough to go full on bullish. You know, growth at EPS is still slow ish and sluggish, I should say, but it's enough to close out your shorts. So I think that's where we're going to leave it at a recap there for what's been going on so far in 2023. Let's just remain cautious. Right. 

Felicity: [00:05:00] That's it. And luckily we don't have any shorts in our portfolio. With that being said, CB, what is your first stock for the order pad for 2023? 

Candice: [00:05:11] Well, I'm going to reiterate a buy from last year that we did in one of our order pads, and that's Elders. So the code to remind everyone is ELD on the ASX market cap of 1.5 billion. It's a profitable business and pays a nice cheeky dividend of about 5%. 

Felicity: [00:05:27] Which we like and is important in these times. 

Candice: [00:05:30] Hundred percent because investors will flock to certainty when it's really uncertain. So a couple of reasons why I'm really keen on the name for 2023. Just want to highlight a few for you now. So Elders late last year held its annual general meeting and on the 14th of December, just before Christmas, it announced a strategic investment into PGG Wrightson Ltd, which is a Kiwi business listed over there, the Code PGW. Now PGG has a really similar business model to Elders and essentially provides goods and services for the agricultural and horticultural sectors in New Zealand. So it's the elders of Kiwi land essentially. 

Felicity: [00:06:10] That's it. We love the Kiwi business. 

Candice: [00:06:12] Yeah, well I am a Kiwi born and bred there so you know, I saw that announcement thinking this is exciting and more because not only is it New Zealand are business, but it's a strategic investment that will increase. I think elders overall EPS forecast by about 2% for the full year impact which has lifted I'll buy here at Shaw and Partners and our valuation from 15.10 to 15.50 per share.

Felicity: [00:06:39] Okay, so we did an episode with Mark Ellison. So I guess how has he turned around the financials and what are we saying for FY 23? 

Candice: [00:06:48] Yeah, and I stress if you haven't listened to that episode with Mark, Pause right now, go back and listen, because he really illustrates the turnaround story that the company's done financially recently in FY 22. Highlights include underlying EBIDTA increasing 39% to 232 million. So that's really impressive. But what Mark talks about and what I talked about in the all about episode is their fundamentals, right? So their return on capital reported more recently was 26.2%, which is up from 22.5% in the same period. So their fundamentals are that it's a really solid, solid business and that's why I'm keen on it again to add to 2023 and why it's a bullish call on my behalf. [00:07:34][45.8]

Felicity: [00:07:35] It's always really good to really add and reiterate our buys, I think from the order pad that we definitely haven't lost conviction. So I guess what is the consensus price target of elders? 

Candice: [00:07:46] Well, you're going to love this. It's double digits. 

Felicity: [00:07:48] We love that. 

Candice: [00:07:49] It's about 53% upside on current levels, according to our short analyst. But if you want to be more conservative to to the price target that the Street thinks, which is 12.71 per share, that's about 25%. So I still want to put that in your 2023 stock portfolio. Absolutely.

Felicity: [00:08:07] And this is just capital, right? It's not including the dividend. Now, I know there was some news about the managing director. I recall the stock price actually reacted negatively to it. Do you want to address that for our listeners? 

Candice: [00:08:18] Yeah, that's right. And like markets are funny things because they react to good news in a bad way sometimes and flip it as well. Like, like you said at the start, you know, tech stocks are laying off a lot of staff at the moment and they're rallying. So and then the news with elders in the case for that stock in the market really loves Mark and what he's done over the the year so it was sold off naturally but you've got to remember Elders is a well-run business, not just because of one man from a full team rightful effort. And it's really delivering strong results in varied market conditions. So it doesn't really matter what the inflation's doing, interest rates and you know, it's a solid, fundamental business. 

Felicity: [00:08:58] He's achieved his job, his eight point plan, and now he's ready to move on. And I'm sure they're going to replace him with someone. Fantastic. 

Candice: [00:09:04] Yeah, we have until November of this year to find that replacement. So plenty of time to find the right person for the job. He's built a stellar business that can survive and thrive without him, given the quality and the depth of the management. And I say he deserves a nice retirement. 

Felicity: [00:09:18] Absolutely. 

Candice: [00:09:19] Elders is my first one. Radio now. Felicity, over to you. What's your first stock for 2023?

Felicity: [00:09:27] Okay. So I'm actually going to reiterate a buy as well for PlaySide. Now the code is P-L-Y on the ASX.

Candice: [00:09:33] I do love PlaySide. It's a good one and it's currently trading around $0.60 at the moment. Also, I have a little quick confession to make after our chat with Gerry. I'm now officially a shareholder of Play Side, so I hope it rallies hard this year as well. 

Felicity: [00:09:45] That's great. You're finally in it. Yeah, me too. I mean, I've been in it for a while, so I'm really keen on PlaySide for 2023 and I've got three main reasons. So late last year they announced a new game licensing. Publishing agreement with Netflix. Now, this deal adds yet another key global gaming partner to players ecosystem relationships, really further validating its capabilities. So that's one. Now this work actually commenced this month and we expect the milestone based license fees will support our growth for FY 23 and 24 forecasts. Now, although they've not actually disclosed the dollar terms of the deal, we expect it to be in line with prior development agreements ranging from seven to low eight figures. So that's. 

Candice: [00:10:31] Two. That might be a really clever strategic move. They're not signalling to the market the exact number. So it's not necessarily a beat or a miss. It's just wait and see. So that's interesting. 

Felicity: [00:10:42] That's it. So you can get another good announcement maybe on the horizon, the short term horizon. Now, three, you know I think Netflix gaming growth aspirations offer potential expansion over time. So we really see scope for the partnership with Netflix to expand given players deep background in game development alongside other major media studios such as Disney, Pixar and Warner Brothers. So I think for me this is really been additional external validation of place capabilities which could generate further demand for the titles or competition from players development resources from its existing partners, which potentially drives improved deal economics over time. 

Candice: [00:11:22] Interesting. So I know we pitched it, we had a buy rating here. It sure has the price target moved on the back of this news or steals remains steady.

Felicity: [00:11:30] It's remained steady. We reiterate a buy rating of $0.90 per share. Now our price target is based on a ten year DCF analysis and it implies a terminal EV- FCF multiple of 17 times. And our price target actually only implies 8.3 times in TM. So with currently trading, the EV to sales player is actually only trading at 5.6 times currently. So significant upside there. I mean, I don't know why it's trading around $0.60. It really shouldn't, but it has been sold off and kind of forgotten by the market currently. So buy, buy, buy. 

Candice: [00:12:10] We need more people to play their new games like Legally Blonde. Did you end up playing that one? 

Felicity: [00:12:13] I haven't had the chance to play it just yet. 

Candice: [00:12:16] I've had a crack. It's pretty addictive, That's all I'll say. 

Felicity: [00:12:18] Yeah, I've been working through the break and I get a nice break like you did. 

Candice: [00:12:23] It's addictive, so be warned. 

Felicity: [00:12:24] All right, Candice, So what is your next pick for the order pad? All right. 

Candice: [00:12:28] So for my next stock, I'm going to give a new one, which has actually rallied hard over the last year, up about 36%. But this new ID, I still see a lot of upside. It has been mentioned. It's not really new. It's a really old company. When I say that it has been mentioned by a couple of our guests already last year that we had in 2022. So I'm liking Qantas for a couple of reasons. Back in November of 2022, the company provided a quick market update which really signalled strong demand plus Qantas strategy to focus back on profitability rather than growth, which is really good in this uncertain market, which we think will support earnings momentum back into full pre-pandemic levels for FY 24. Also domestically, the market is looking like it's going back to normal capacity and higher costs, you know, unfortunately are being passed down through to the customers. So that sucks for you and I when we travel. Right. But for the company's bottom line, it's beneficial. And we only really have one airline now dominating in the domestic market. So you really are forced to pay up. 

Felicity: [00:13:39] I think what's kind of interesting though, what's going to happen when Virgin does list again potentially on the ASX. That's also going to be one to watch, I think big. 

Candice: [00:13:47] Question mark around that. Right? So but for the moment, they're the only ones really. And so you're forced to pay up and you're forced to wait in line when you get cancelled or rescheduled or whatever. So it's quite annoying. And if you look globally, internationally, we're expecting more of the reopening travel spend to really kick in for 2023. So we are expecting international airlines to also slowly reinstate back to normal capacity levels. So I think Qantas is more resilient now than it has ever been previously. One less competitor, like you said, they also have a lower cost base, but they're pushing at higher prices. They got a better domestic market structure, they got better gearing. It's lower their more flexible aircraft orders, supposedly, and greater contribution overall to their loyalty program. 

Felicity: [00:14:32] Yes, I am a big fan of Qantas Points. That's how I book most of my holidays. It's great. 

Candice: [00:14:37] Yes. Sucks you in the ecosystem, right? And I think other brokers on the street agree. I read a really interesting quote from a Goldman Sachs analyst that's very bullish on Qantas. He has a conviction buy rating of $8 t price target on the shares. And the broker said and I'm going to quote Against the backdrop of sustainably improved earnings capacity, we believe the stock. Is not really priced in for the general recovery coming so. Interesting one to. 

Felicity: [00:15:04] Watch. And so I guess what is the price target and upside for our listeners at the moment. 

Candice: [00:15:10] So it's quite broad like Goldblum's really out there on a limb, really bullish, but we use UBS for the large cap area of the ASX, so they have a price target of $7.6, which is about 15 and a half per cent upside double digits. And the consensus price target is a little bit higher at 7.87. So that's about 20% upside on current levels. So once again double digits, we like double digit returns. So over to you. Now. Firstly, what's your next pitch for 2023? 

Felicity: [00:15:36] Okay. So I'm going to go with a new idea, an international idea, probably a company that you've heard of listed in the U.S. but this is a different conglomerate. So this is Merck, CGAA, and the code is Merck, and it's actually traded on the Frankfurt Stock Exchange. Now, the market cap is over €80 billion, so it's definitely not my usual microcap small cap buy, not at all. So different ideas and now it actually has three business unit so it's diversified right. Which is why I really like it. So the first is health care. The health care business comprises of oncology, neurology, immunology and fertility. The second aspect is electronics, and that comprises of display semiconductor and surface solutions, which I love semiconductor even though it's being sold off. And then we've got life sciences, so it has life science, supply tools and services to the pharma industry laboratories, academia, as well as industrial testing equipment. So these three divisions all have limited overlap and as a result, the stock tends to trade too. It's some of the parts valuation when two of the three divisions have an interesting narrative to them. 

Candice: [00:16:45] So what is that narrative? Because I also note, you know, it's quite a theme that you go overweight health care in in uncertain times. I play to that as well. What's going on with your thoughts there? 

Felicity: [00:16:55] Really during the COVID 19 pandemic, that was the case for the Life Sciences division with vaccine related and then the electronics division, semiconductor exposure, and then heading into the post-pandemic normalisation phase that kind of reversed this year, the stock was down about 20%. We see this as a really good set up for the life sciences industry and Merck within it, despite the COVID 19 normalisation. And we have the view that the healthcare division will come more into focus thanks to the two PLL readouts in 23, which it actually allowed the division to stomach the moving cloud patent expiry and grow through to 2030. So Merck Healthcare now has a narrative investors can accept even with the electronics uncertainty in our view. 

Candice: [00:17:41] So current levels and upside, just to wrap up, you know, kind of the bull conviction on that one. 

Felicity: [00:17:45] Absolutely. I mean, we do really think that life sciences, biotech, healthcare is going to be good. And I do think that the equipment and electronics will recover in 2023, 2024, especially the semiconductor industry. So current prices, about €192 and UBS price target is 210 year. So not double digits, just under about nine and a half percent upside from here. 

Candice: [00:18:11] Interesting. Definitely want to add to the order pad. Well, since you went global, I'll match you with my next one. I'm going to reiterate for me one that I did last year, which is Walt Disney. So for me, this stock ties in with the Qantas thinking of, you know, travel going back to normal levels, the reopening trade continuing throughout this year, and also the theme that discretionary spending is not as bad as what everyone is expecting it to be. And the most recent financials were okay and support that thematic. You know, the Parks revenue for Disney continues to be slow but build back up to normal levels. So that's positive. And I think that's going to be a trend we can see throughout this year. 

Felicity: [00:18:48] Absolutely. And I guess there was quite significant news recently. What are your thoughts on that? 

Candice: [00:18:53] Yeah, major, major news. We can't ignore the elephant, the room. Right. Like another big factor for me is the news that the CEO, Iger is returning. This caused like a lot of shockwaves in the investment community and the media when it was announced. But I think his return will put the company's focus back on to profitability, which is great. Prioritising content quality over just mass amount quantity for Disney. 

Felicity: [00:19:18] That's important, I think, because at the moment with Netflix, Disney, there seem to be a lot of quantity but not as much quality, right? 

Candice: [00:19:25] We have so much choice now as consumers, so we're really becoming quite picky and overwhelmed with the selections. And I think, you know, I've gone on record a few times, but I do think that Disney Plus can match and exceed Netflix economics long term, given their strength that they own their own IP. So I think if you look at the Line-Up of the releases for the content coming out this year and what's already just been released at the end of 2022, you know, Avatar two has come out and it's knocking it out of the park. It's just amazing. That movie. 

Felicity: [00:19:56] I loved that. It's. Actually one of my favourite movies, the Avatar series, so I can't wait for the next one. I hope it's just not another 13 years away. 

Candice: [00:20:04] Apparently I read because I went to Gold Lounge for my birthday to watch it. Right? And I read because I was so obsessed with it. After the drive home, they've already filmed mostly all of three, and they're going to do up to four. So that's exciting. 

Felicity: [00:20:18] Very exciting.

Candice: [00:20:19] If you're into Marvel, they're doing a special guardian of the Galaxy series on Disney, Plus exclusive, their more animated Star Wars series coming out. And also, I'm a massive fan of The Mandalorian series, which Mandalorian three is going to drop sometime this year. So there's just so much quality content that they do own, similar to like kind of the place side conviction that you have there. Like they're really, really monopolising that part of the market. And I think the stock was sold off. Look back at 2022, like much of the market, you know, it was down, you know, 20, 30%, but at current levels, buying around $100 if you can get it under 100, even better. I think this is a great buying opportunity for investors. 

Felicity: [00:21:01] Absolutely. I mean, this market is just showing so much opportunity, which is very exciting for us. So what is the UBS price target or 12 month price target for this one?

Candice: [00:21:11] So UBS Place 122 on Disney, which is about 16% upside consensus, pretty much the same around one 1840. I want to buy more Disney for sure. Let's go back over to you now. So what's your next stock? 

Felicity: [00:21:25] Okay. So I'm going to come back to the ASX now, however, probably a little more broadly with a few bonus buys. So. 

Candice: [00:21:33] Excellent. So how many are we going to expect? Here's a more of a thematic, right.

Felicity: [00:21:37] I want to talk about the uranium sector, which has started strongly in 2023, led once again by Silex, which is up 23% since the 1st of January.

Candice: [00:21:48] I'm just going to say something that's like a per cent a day, basically that's impressive. 

Felicity: [00:21:52] Especially for our listeners who actually bought it when I pitched it last year. It's up 141% since I pitched. 

Candice: [00:21:58] It, so I really hope you did buy and it has been a great addition for our clients portfolio, that's for sure. 

Felicity: [00:22:03] It has, and it still remains one of our top picks and could easily double again from here as it proves up its third generation uranium enrichment technology at the new pilot plant in Wilmington in the U.S.. I also really think it's important to note that the spot uranium price is not a major driver of equity performance. In retrospect, 2022 was a year of consolidation for the sector after the equities had run ahead of fundamental support in 2021. So 2021 was really good for uranium equities. Now the uranium industry is very slow moving and fast moving. Equities can easily get ahead of the industry fundamentals. 

Candice: [00:22:43] Yeah, and I think it's also important to just pause and remember for investors that really little uranium is actually sold on the spot markets. It's not transacted like shares like that. We know most of it's actually sold under long term contracts with the US and European utilities. So it's more like privately done, right? 

Felicity: [00:23:01] That's it. It's very secretive and an opaque industry and details of transactions in the term markets are really hard to say. So I think 2023 is going to be a really strong performance for the uranium equities. Again, this is clearly movement in the term contract market. So utilities are more active than they were 12 months ago and uranium producers are responding to numerous requests for proposals. So essentially what that means is there's a lot of restarts. Now, the first companies to successfully start operations again are going to be the brownfield restarts, which is Paladin, which is BOS, which is Peninsula, all started their restart plans in 2022 and the next to go is likely to be a company called Lotus Resources in its project in Namibia. Now Lotus has made substantial improvements, this asset since it was last operated by Paladin. 

Candice: [00:23:53] So just going to pause there because we've got a few different bonus stock ideas. So just if you didn't catch them, we'll just reiterate that for you. So Paladin is PDN, Boss is BOE, Peninsula PEN and Lotus on the ASX. The ticket is LOT.

Felicity: [00:24:10] So I'll finish my uranium spiel here. Essentially, the macro environment for the nuclear industry has improved dramatically in the past two years. Governments around the world have realised that global decarbonisation targets are fanciful. Without nuclear energy in the mix, new reactors are being built and decommissioning plans are being reversed. Demand for uranium is growing again. US and European power utilities are becoming more concerned about the availability of nuclear fuel, particularly in a world where dependence on Russian enrichment is a major concern. So I guess what I'm really trying to say here is the cost of yellowcake is not a major issue for utilities. The security of supply is at the moment contracts are being signed in low mid to fifties, but over the next two years. We actually expect these contracts to move into the sixties and beyond. So price targets for all of them, I'll give them to you. And these are only 12 month. Remember, it's not saying how this company can perform over the next 5 to 7 years, which we expect you to invest longer term here. So Silex is $5 paid and is a dollar 30, ten is $0.32, BOA is 3.20 and a lot is $0.35. But I'll go into this in a little bit more detail for each of these single ideas in future episodes. All right, Candace, what are you thinking for your last stock pick of this episode?

Candice: [00:25:35] Well, sticking with the energy thematic to end, and if you're a regular to our show, you will recall I pitched an international energy company in our last episode for the Christmas special. So sticking to the same theme and my stock for 2023, although it's rallied hard in the last year, you know, up about 23%, I'm still keen on the company. I think more upside is deserved. So I'm pitching a French company, Total Energy or Total Energies. If you say with your really bad French accent, it's a massive it's a massive company market cap of €145 billion and it trades on the French market. 

Felicity: [00:26:13] And what is the code on the stock market? 

Candice: [00:26:16] So you've got TTE there's like a whole bunch. You can buy it on the New York Stock Exchange total. The one you want to look for is the French one. 

Felicity: [00:26:25] Okay, great.

Candice: [00:26:25] It is a oil and gas company, Right? And it also provides natural gas and low carbon energy and it covers the entire energy value chain, which is what I like. And this century old French company, it really does three things. It produces and refines oil and gas. It sells petrochemical products and it transports, you know, basically crude oil and refined products globally. 

Felicity: [00:26:49] Okay. So this company is really no sleepy giant in the energy sector. And I know that they're really focussed on ESG, Right? 

Candice: [00:26:56] Yeah. And so they should be. They operate in more than 130 countries across five different continents. And despite the overwhelming headwind faced by the energy sector in recent years, Total has managed to keep its head above water, given the resilient operations and management team. So I really like the business because it's completely streamline its exposure and strides towards becoming a company with increasing focus on renewable energy solutions.

Felicity: [00:27:23] So they're really committed to meet the Paris 2030 goals. 

Candice: [00:27:27] Well, not quite. They're in fact committed to meet the net zero emission standards by 2050. 

Felicity: [00:27:34] Okay, so just add on another 20 years, but they'll get there. Okay. So what are the financials for this company? Why are you liking it right now? 

Candice: [00:27:43] Well, the companies reported some of the highest returns across the sector, both in the upstream and downstream divisions, while also having the strongest balance sheet, I would argue, of the European majors and one of the lowest cash break even ratio. So I just want to highlight a few impressive financials really quickly that I look for. So profitable business. They have a historical profit margin of 9% return on assets of nine and a half percent return on equity. Even more impressive, 20.10% EBITDA more recently of €62.47 billion. And that is how they can support such a high payout ratio to shareholders. They're sitting around 32% pay at the moment, which is super favourable. If you think about the current climate, when investors want a sure thing for their investment portfolio and that's typically going to mean reliable dividends, right? 

Felicity: [00:28:34] Absolutely. So that's really good to hear. 

Candice: [00:28:37] And the final point I want to stress is while we're all worried about interest rate rises and your debt on a company balance sheet, they pretty much have enough cash on the books to wipe out all their debt in an instant. So not worried about that at the moment. So in a nutshell, Felicity, that's why I'm really confident on Total and the company's ability to grow and deliver because of the management has an extreme track record of really providing strong fundamentals and financials throughout any market condition. But I think this particular climate, they'll really prove their strength. You know, the shares are valued at 5.3 times forward earnings and it offers a 5% dividend yield. The stock came across my radar last month when we were doing research for the Christmas special and it was actually added to the Shaw and Partners Global SME global portfolio. So interesting one to watch. 

Felicity: [00:29:27] And we're going to actually get that manager on the show at some point early this year. So he's going to be very interesting to hear from. So what is the upside now on current levels? [00:29:36][9.2]

Candice: [00:29:37] Well, just to wrap up, it's trading around sort of 59 ish levels per share on the French market. UBS have a conviction of 65 per share. So that's about 10% upside on current levels. Remember, that's just growth out on your 5% dividend yield. 

Felicity: [00:29:52] And this is euro as well. 

Candice: [00:29:54] Remember that. Yes, you're correct Euro. And then you've. Got a slightly higher street valuation of about 65, 89 year or so. 

Felicity: [00:30:02] So we've covered off a lot of ideas so far in this part one of our 23 stocks, a 2023 episode. So just a quick recap. I'm liking PlaySide, Merck and more broadly, the uranium sector, which you can be an investor into this theme by various companies Silex, Paladin, Boss Energy, Peninsular Energy and Lotus Resources.

Candice: [00:30:26] And so far for my 2023 preferred stock ideas, I've added to the pot Elders, Disney, Qantas and TotalEnergies. 

Felicity: [00:30:35] Okay, so a bit of housekeeping before we go. The Equity Mates community survey is alive now. The community survey helps us to understand who's engaging with Equity Mates media, which actually assists for commercial packages and more importantly, how we can continue to improve our content to help audience on their money and investing journey. 

Candice: [00:30:55] There's also two prize pools for community members who will be automatically re-entered if they submit answers to all the questions and provide their email addresses. So two chances for winning.

Felicity: [00:31:05] Oh, we love prizes. So what's the first one? Candice. 

Candice: [00:31:07] A $500 cash flow. Cash, Cash, cash, cash. 

Felicity: [00:31:11] And the second one is three tickets to FinFest 2023. 

Candice: [00:31:16] That was such a good festival. I can't wait. 

Felicity: [00:31:18] Now, the closing date for this is the 28th of February, so you have about a month and it shouldn't take more than 10 minutes to complete. 

Candice: [00:31:26] And if you want to jump on the survey right now, jump down into our show notes and we'll pop the survey there. Also, just look up Equity Mates and you can find it there. 

Felicity: [00:31:36] Great. Now, also just a little call out that FinFest 2023 registration for Early Bird is now live and we've actually locked in November the 11th at Carriageworks in Sydney. So ticket information, speakers etc. will be announced later. 

Candice: [00:31:50] So stick to social media platforms and obviously Equity Mates socials. For more information about FinFest 2023. 

Felicity: [00:31:59] There's a lot in the show notes today. Before we sign off, please remember that although Candice and I are financial advisors at Shaw and Partners, please note our discussion today does not constitute as personal financial advice. As always, you should seek professional advice before making any financial or investment decisions. 

Candice: [00:32:18] That's right. And feel free to always reach out to us on our social media channels or send us an email which is also displayed in our Shownotes. We're going to need lots of appendix fresh ideas this time, so make sure to follow us on Instagram at @talkmoneytomepodcast for daily market updates. 

Felicity: [00:32:34] Until next time. See you then.