JESSICA AMIR | from moomoo

SIMPLY CLICK ON THE PICTURE ABOVE FOR THESE GREAT DEALS

In this episode I'm joined by special guest Jessica Amir, Senior Analyst at moomoo, as we dissect the intricacies of profitable investing amidst macroeconomic shifts and individual company growth. Jessica shares her insights on leveraging macro trends, the importance of earnings growth, and the strategies for selecting companies that can outperform the market.

Jessica explains the dynamics of government policies, supply and demand forces, and the overarching macroeconomic environment. She emphasizes the importance of earnings growth as the driver of share price growth.

We explore artificial intelligence, green energy, and the burgeoning field of tech investments. Jessica highlights Nvidia as a company at the forefront of AI innovation and discusses the untapped potential of uranium in the green energy sector. She also touches on the rise of Square as a leader in payment processing and how bitcoin's surge is fueling its revenue growth.

From the potential of nuclear power to the effect of wheat prices on Ingham's chickens, there's lots of goodies for investors looking to understand the bigger picture. Jessica also explains how moomoo's app and its features, like the earnings hub and 24-hour trading, can assist in making informed investment decisions and accessing US markets.

Click on this link to find out more about the great deals on offer from our friends at moomoo

EPISODE TRANSCRIPT

Chloe: Phil Muscatello and Finpods are authorised reps ofMoneysherpa. The information in this podcast is general in nature and doesn't take into account your personal situation.

Jessica: But I think all investors can do this. And it's justtaking the notion if you want to outperform the market, you can. But you really need to pay attention to what's going on in the macro, what's going on big picture, what's going on. Government policy, supply and demand that impacts commodity prices. You got to roll up your sleeves and do the due diligence. Otherwise you're probably best just in the S and P 500 and ASX 200. You're probably best just in ETFs.

Phil: G'day, and welcome back to shares for beginners. I'm PhilMuscatello. How can you screen for companies that consistently show a profit? It's the dream, isn't it, Jessica?

Jessica: It is.

Phil: Why should you look at the bigger picture to decide onwhich companies to add to your portfolio. Joining me today is Jessica Amir. G'day, Jessica.

Jessica: Hello.

Phil: Thanks for coming. It's great to have you in the studio, live and face to face.

Jessica: Thanks for having me.

Phil: I don't get to do these interviews too often because everything's remote these days. Yeah, it's nice to be with you in the same
room.

Jessica: It's great to look you in the windows of your soul, your eyeballs.

Phil: That's spooky. Jessica Amir is the senior analyst at moomoo. She has over 15 years of experience in financial markets and joined moomoo from Saxo markets and bell direct. So, how's it going at moomoo? Tell us a little bit about moomoo.

Jessica: It's pretty good. Lots of fun, very quick movingcompany. We're mainly a tech company, so we were founded by one of the 18 directors of Tencent. Tencent is, of course, China's biggest tech company. So that basically shows you that tech. Um, and AI is kind of at the forefront of what we do. So our app is really powerful and it draws in a lot of people in Asia, and that's how we've become the biggest company or the most used app in Hong Kong and Singapore. Yeah, it's great. It's great to work with the chinese company, which I've never done before, and yeah, lots of fun.

Phil: So you're working for Moomoo, and we've got a couple ofspecial deals to mention to listeners before we start getting into the meat of
the podcast and talking about how to make money in the stock market. Now, the
first thing is when you open up a brokerage account, you're going to have a
cash account where you're going to put them your money. And it's always good to
have a bonus of some free shares. So tell us first of all about the deposit
amount that's available to people who sign up with the link that will be in the
episode notes.

Jessica: We actually pay 6.8%, so we'll give you 6.8% return onyour uninvested cash while it's sitting there. So that's without even doing
anything. So you can park it there while you're deciding what to Buy, or you
don't even want to buy ANythIng, just park it there and get 6.8%. So you'll get
that for 180 days, and we'll pay that 6.8% as long as it's not above $100,000.
And then also, if you do deposIt, let's say, $2,000 into your moomoo account
and you hold it there for 30 days, you'll receive ten free stocks. And that
value could be up to $3,300, depending on a few things like terms and
conditions. Terms and condiTions. And you've got to spin a little wheel and
then basically you'll get a chance to win up to $3,300 worth of shares.

Phil: And these are us shares, aren't they?

Jessica: Yeah, us shares. So Us shares, including Tesla, etcetera. So yeah, there's some great chances to, I guess, get a bit more bang
for your buck when you're investing and signing up.

Phil: Fantastic. Some free shares, always good. And a greatinterest rate to go ahead with.

Jessica: Yep, I love the interest rate. And who doesn't like freeshares?

Phil: moomoo really want to get into the market, don't they?

Jessica: Yeah, I mean, we can do this because we're the biggest,most used app in Hong Kong and Singapore, and I think it's only a matter of
time before we start really gaining huge traction here.

Phil: So we wanted to talk about the basics of investing and justsome of the things that you need to know when you first start looking at the
markets and I know we talked about not talking about lithium, but then lithium
has been popping over the last week by 10%. And I just think that there's also
a warning here for listeners not to get too caught up in a story because
they've heard about lithium, because there's many reasons just to be suspicious
about it, about commodity cycles, the fact that there's other commodities to be
looking at. And really, it's not easy to invest directly in stocks, especially
speculative miners.

Jessica: Totally. So, with specky companies, they're specky byname, specky by nature. They're not making a profit. So when the tides change,
you realize, who's been swimming naked, and Warren Buffett literally said that.
And what I mean by that is, we saw interest rates pop up because inflation was
at 16 year highs, and that also put price pressure on lithium. And then also
the supply and demand dynamics changed for lithium. But it basically
illustrated that if you're in a company that's specky, not making any profit,
when the tides change, I, uh, e. When costs go up, a stock is going to face
price pressure simply because their costs are up and they're not making a
profit. So it's really hard for a company to maintain momentum. So then we need
to come back to basics and think about, well, what drives a company's shares
and its earnings growth. And so, in times of financial distress, we just need
to remember that.

Phil: What's a good way of looking at earnings growth or findingout that number about earnings growth? Because this is not just earnings growth
in the past, this is earnings growth in the future as well, isn't it?

Jessica: It's really hard to find, actually. So I guess what welook at is consensus. And so what's the market telling us where their earnings
will be? What's the trajectory like over the next couple of quarters and year?
And what are their profits, uh, looking like ahead? And then probably the third
thing is, besides looking at what the market or the average analyst is telling
us, pay attention to the company's own outlook. It's not that hard to look at
their quarterly report or the annual report to see what they're saying. And so,
I mean, a good app, I. E. Our app, if I can do a little plug, our app, which
has been, I guess, touted as a very unique app in Australia by fund managers,
by the way, that we actually share consensus earnings estimates for the year
ahead. And this is a really great indication of a company's profitability
increasing. Can its earnings grow and outpace its costs? And that's a sweet
spot that's what you need for sustainable share price growth. If you are an
investor, you want to be backing a company with earnings growth trading
completely different. So earnings growth, you really need to look at
projections. And again, our app's got that.

Phil: But this speaks to the importance of taking your investingseriously. You really do have to dig into the numbers, don't you? Because you
don't want to fall in love with a story. And also, if the numbers change, you
want to be nimble and to cut your losses as well, because this is all reflected
in these kind of numbers that you're referring to, aren't they?

Jessica: Yeah, absolutely. So the market typically tells you bylooking at their share price growth, the market tells you what a company's
future is going to look like. And so that's where momentum comes into play. And
when the chips go down and out of favor, and when a trade or investment that
you're in starts turning negative, you quickly realize, well, hang on a minute.
Um, what's my strategy here? Holy crap. And if you've gone into an investment
or a stock and you haven't mapped out a strategy, you haven't got a target for
when you're going to take profit and walk away, or you haven't got a target for
when you're going to cut your losses and walk away, because I bet you there's
better opportunities out there. There's always an opportunity cost when you're
investing. So you really need to pay attention to a companY's outlook. You need
to pay attention to. Secondly, the macroeconomic picture. What is going on with
the supPly, what is going on with demand and macroeconomics is also interest
rates. What the market is telling us, when interest rates are going to be cut
or if they're going to stay higher for longer. And then, of course, so you need
to pay attention to the company's fundamentals. Are they growing market share
or are they losing it like Tesla, because there's more competitors out there.
So I guess those three things are probably really important to look at for a
company.

Phil: WeLl, let's have a look at the macro, because you like tolook at the macro first before you have a thesis for investing. Just give us a
couple of examples about that and how you think about the macro.

Jessica: So I always say where macro goes, funds flow. And sowhat is macro? So people often think it's just interest rates or just
government policy, which it's not. So macro also includes, like the precursor
to what happens with interest rates, and that's inflation. So we know most
central banks they want to combat inflation, I. E. They don't want people to
pay higher prices, so they rise interest rates. So we need to think about
interest rates. And then also we need to think about unemployment. What is happening
with unemployment and why do we look at that? Well, it kind of dictates what's
going to happen with consumer spending. Us, Australia, like 30% or rather 70%
of GDP is the consumer's spending power. So when the consumer is strong,
unemployment still kind of at lows now, then that will kind of tell you what
stocks could do well in the future. And so that's why consumer spending stocks
are doing quite well, moving up off their lows. And another example of looking
at the macro picture is where spending is going. So we know looking at
projections, AI and chips and software is probably going to take a lot of
spending at the government level and also at the company level. So that's why
Nvidia shares have been all rage.

Phil: And you've been talking about Nvidia for a long time,haven't you? Yeah, right before this run.

Jessica: Yeah, yeah, absolutely. I started speaking about Nvidiaa year ago and also Uber a year ago. And they're some of the strongest
performance that we've seen over the past year, year to date, and also the past
six months. That goes back to the fundamentals, where macro goes, the funds
flow, I mean, investment. So big fund managers will flow money into where they
see a strong amount of forward spending or when the tides change on a company's
fundamentals as well. I. E. Uber.

Phil: Tell, uh, us about Uber, because you've been looking atUber for a while as well.

Jessica: So Uber was kind of like, I don't know, can I say a dogin the investment world, that's pretty harsh. But they were unprofitable for a
long time. So everyone kind of jumps into Ubers, but there were lots of
competitors coming into the market. Uber was unprofitable for a long time, over
a decade. And then what happened is they decided, hey, we need to really change
things up here. We're not really loved by the investment world. And you can't
get into the S and P 500 unless you've made four quarters of profits.

Phil: I didn't realize that was a prerequisite. I thought it wasjust market capitalization. But you also have some sort of record of profit to
be in the S and P 500. Is that the case?

Jessica: Yeah, absolutely. So you can typically see what companymight be going into the S and P 500 if you track a company's market cap. So we
started to see that Uber really turned around and that's because they sold off
their automated vehicle division for $4 billion. They started gaining market
share. They moved to a subscription model. So their clients became really
sticky. They attracted new drivers, and that meant that they could earn more
money and grow their earnings at a quicker pace. And then they recorded two
quarters of profit. And then the investment world, like, hang on, this is going
to be good because they need four quarters of profit. Growth, profit growth,
emphasis on growth and profits to get into the pin up index, the most bought
index in the world. And that's the S and P 500.

Phil: The 500 greatest companies in the world.

Jessica: That's it. That's it. And I guess the only index thathas got a history of recovering from a bear market, that's over time, of
course. So, yeah, Uber turned around their business and Mamushka M, they went
into the S and P 500 in December. And then once a company's in the S and P 500,
we all know with superannuation guaranteed payments in Australia, in the US,
UK, that means that the S and P 500 is typically invested into every quarter by
the big installs, the superannuation houses. So every single quarter, the S and
P 500 is bought and rebalanced. And so visa vis and P 500 added Uber, and then
its shares popped up and rallied after the entry. And they have continued to
move up.

Phil: Because you really like that. You like the movements in andout of indexes or indices, don't you?

Jessica: Yeah. So I think it's a really good way for investors tokind of get a head start. And we say the word arbitrary. So investors can make
an arbitrary move simply by a stock going into the S and P 500 or into the ASX
200 and visa vis out. So when you know a company is losing market cap, which
you spoke about, we know that probably as soon as you can see. But, uh, you can
just do a Google search to see the biggest 200 companies in Australia, the
biggest companies in the US. And once the tides change, and once a company
starts to lose market cap and they get to the bottom of the S and P 500 or the
ASX 200, you know that the index maker, the SP 500, rather, Dow Jones indices,
is going to push them out when they do their quarterly rebalances. So you can
get a head start and go, okay, well, so that company's lost market size,
they're probably going to be kicked out or added, I might get a head start and
buy that or sell that before it goes in. So, yeah, I think for newbie
investors. It's really worthwhile to just check market cap and also s. P, Dow
Jones indices, quarterly rebalance, and profitability. Profitability is revenue
profit growth, and earnings growth drives share price growth. So that's, uh,
absolutely key.

Phil: Let's get a little bit micro now. Ingham's chicken and theprice of wheat. I love that story that you tell.

Jessica: Yeah, it's an interesting one. And I think Ingham's hasbeen overlooked by a lot of investors. And so, when we shop at Woolies or
Kohl's or IgA, I, uh, can bet you that the chicken that you pick up and buy, or
the turkey that you buy for Christmas, or if you like eating turkey all year
round, that's good for you, then I can guarantee you that Ingham's actually
produce that chicken. So, the biggest cost of rising a bird or a chicken is the
wheat price. And we know the wheat price has continued to hit record all time
lows. It hit record all time highs in the Ukraine war, because we know, like,
the food basket in that region was essentially cut off. And so prices Momushka
went up. But now the woes have been solved, and there's a lot of excess supply.
And so the wheat price is down. So visa vis, that means Ingham's costs are much
lower. And then also think about Ingham's. They're selling turkey. As we said,
a big cost of turkey, of growing a turkey is soybeans. And so the soybean price
is also down quite considerably. It's down 40% from its highs. It's not as down
as wheat, but simply Ingham's costs are down, their prices are up. That they
can charge. The poultry prices are up. So, thinking about the basics, that
means that this company is able to grow their earnings and then diving to the
detail. If you actually had a look at the company's ASX announcements, again,
really key, you'd see that they're future proofing the business. Rent prices,
rent costs, they're not going down. I don't know what landlord is going to put
their rent prices down. So, I really like that Inghams has future proofed their
business, and they've kind of cut out their rent costs, and so they're buying
the land that they have their premises on. So, I like that. So, yeah, there's
lots of ways to skin a cat. But thinking about the commodity prices and how
they move, I, uh, e wheat prices, soybeans. And you can simply track these
prices on tradingeconomics.com. It's not hard really?

Phil: You just go to this website and it tells you what's goingon with commodity prices and then you can sort of extend your thesis out of
that.

Jessica: Yeah, so I'd look at that to see what's going on withcommodities and then look at the best performers in the ASX 200. Again,
thinking about what we're talking about earlier, what is the market telling us
might be the best performer in the future? What is the market telling us?

Phil: Is that the momentum that you're looking at? Um, so you'relooking at the price action and seeing that the price is going up over a period
of time.

Jessica: Absolutely. So you might see consistent share pricegrowth over a week, over a month, and then, you know, hang on a minute,
something's going on. And then. So Ingham's earlier in the year was one of the
best performers year to date. So you know that they're kind of turning.

Phil: There's something going on there.

Jessica: Yeah, spot on.

Phil: Gee, this is what you do as an analyst, isn't it?

Jessica: Yeah.

Phil: Just really interesting that you've sort of drawn some ofthese points together that have appeared on your radar, uh, and come up with a
thesis out of it. I love the way that you're doing that.

Jessica: Thank you. But I think all investors can do this andit's just taking the notion if you want to outperform the market, you can, but
you really need to pay attention to what's going to do a lot of work in the
macro, what's going on? Big picture, uh, what's going on. Government policy,
supply and demand that impacts commodity prices. Yeah, you got to roll up your
sleeves and do the due diligence. Otherwise you're probably best just in the S
and P 500 and ASX 200. You're probably best just in ETFs.

Phil: This episode is proudly brought to you.

Phil: By moomoo the money magazine online broker. Rising stargold winner moomoo is offering 6.8% on your uninvested cash balance for 180
days. Simply click on the link in the description and sign up for this great
deal. T's and C's apply.

Phil: So your research and analysis is throwing up a fewcompanies that are going to be responding to some of these macro trends. Tell
us about those.

Jessica: So I think it goes back to being an investor. Uh, whatare you looking at? Is your strategy to invest or is it to swing trade? So
let's say you're an investor. So you need to become observational, pay
attention to what's going on. So you read the news, you look at the best
performers you look at where momentum is, and so that'll kind of tell you,
where do I start? And so we know that if you've been reading the news and
paying attention, there's a lot of a, uh, push into going green by 2050. Australia's
behind. It's a no brainer. And then so recently, we saw the Coalition announce
that they want to use nuclear power as our main source of energy. That's the
only way Australia can apparently go green by 2050. So it's not just Australia,
uh, that's doing that. So just staying on this sector for a sec.

Phil: Yeah. Because COp 28 recently, a lot of countries did signup to greatly increasing their nuclear capacity, didn't they?

Jessica: Totally. Absolutely. So, really interesting, Phil. Soactually, in the US, I don't know if you know, but one in three households
actually now switch their lights on by nuclear power.

Phil: Wow.

Jessica: What? Isn't that amazing?

Phil: So Homer Simpson does have an effect, after all, on theenergy consumption of the states.

Jessica: Yeah, but the narrative has really changed for uranium.And so we know there's not much supply of uranium. Sure, there is plenty of
supply, but because of ESG policy, we can't literally mine everything out of
the ground. And so demand is rising because of that government. So Australia
isn't really driving the demand, but we'll catch up later. It's the US, it's
Canada.

Phil: We've got huge supplies of uranium, haven't we?

Jessica: Yeah. The biggest in the world in our backyard, but wecan't really dig it up yet. So the government has kind of vetoed that. And so
the coalition is kind of pushing for that to flip and change. Believe it or
not, it's the cleanest, greenest source of nuclear power that mines less
resources out of mother earth, and it's more dense. So one pellet of uranium is
equivalent to one barrel of oil.

Phil: Yeah, it's incredibly energy dense, isn't?

Jessica: Totally. Totally.

Phil: I just wanted to say at this point as well, that lastyear's Miss America. I don't think Miss America has got, uh, the standing that
it had years ago. But she was a nuclear engineer as well, and she has spent her
time as Miss America. She's handed on the title now, but she spent her time
promoting nuclear power and doing a lot of photo shoots at nuclear power
plants.

Jessica: Oh, I love that. I haven't had a photo shoot a nuclearpower plant. I have at a gold mine, but that's another story. But staying on
nuclear power. Also, we know those three countries, uh, the US, Japan and
Canada, want to be heavily reliant on nuclear power and use it as their main
energy source by 2050. And so think about that. And then, so you'd look at what
on earth is the biggest investment in uranium? You don't have to reinvent the
wheel, just type it into Google and you'd see Ura, that ETF is the most bought
ETF in the world that invests in some of the biggest uranium plays. So that's
uranium. And then thinking about other sectors that are doing well. AI and tech
is going to be, I guess, our generation's biggest shift of increasing productivity,
and it'll be the biggest source of innovation and we'll see a lot of funds go
there. So when I talk about funds, uh, the compound annual growth rate of
spending in hardware and software is 100%. So 100% revenue growth is what this
sector is expected to see till 2032. You can't make that up. There's no other
sector that is seeing this projection of revenue.

Phil: So can I just focus on that figure for a moment? This isthe amount that economies will be spending on artificial intelligence and tech,
is that what you're saying?

Jessica: Yeah, correct.

Phil: Um, because often we hear compound annual growth rate forsomething like the earnings for a company, for example. But this is just
applying that same metric to the amount of dosh that's actually going to be
spent supplying and building this new infrastructure and world that we're
living in.

Jessica: Yeah, but it's at a company level. So at a companylevel, we also know that the average company is only spending 1% of their
budget on AI software and hardware, and that's expected to quadruple. And so
again, thinking about what companies can benefit from that. So it's data
centers, so we need data centers. Oracle, the biggest data center company in
the world, in Australia, we've got NextDC. So that would be a way to think
about that. And also, we can't have all this AI push and AI innovation without
chips. So Nvidia is obviously the company in the spotlight at the minute and
they're increasing their costs for their pin up chip. But we know Nvidia,
everyone's like, oh, I missed the party on Nvidia. Well, I don't think you
have.

Phil: I think really, because that was going to be my nextquestion because we talked about uranium, and the uranium price has been
shooting up to the moon and Nvidia, of course, but you still believe that
there's room for the price to keep going up?

Jessica: Yeah, absolutely. And so that's because AI and, um,investment in chips is at a tipping point. So we know the majority of global
chip demand is from data centers. And so big companies investing into data
centers so they can store their data offside, and AI chips literally go into
the data centers as well. But we haven't yet seen AI chip demand in other
industries. So think about healthcare, think about cybersecurity, think about
agriculture as well. So speaking about agriculture, John Deere is probably one
of the biggest companies that's actually investing in AI and chips. So we're at
a tipping point. And Nvidia actually said, uh, you know, we're at a tipping
point. And so diving into the company level now, Nvidia also, the majority of
their sales go into tech companies. So 40% of Nvidia's revenue is the big tech
companies. So think about Microsoft, think about Amazon, think about Alphabet,
who's behind Google. So all these companies, they amount for the majority of
Nvidia's sales growth. And we know, again, thinking about where their sales
growth is, can they increase their sales growth for the next quarter? Yes, it's
guaranteed. So next quarter, which is this quarter, by the way, they're rolling
out the H 200 chip. And what on earth is the H 200 chip? Well, we know the H
100, that was behind OpenAI's chat GPT. But this quarter they're rolling out
the new chip, H 200, at a higher price target. And all these big tech
companies, including the names that we just mentioned and Oracle, they've all
inked deals in contracts to buy the H 200 chip. It's at a price target, a
higher price target than H 100, basically meaning that they're going to make
more money and again, they're probably going to move into other industries. So
that's why, uh, Nvidia's earnings and revenue growth, which is 200% revenue
growth last quarter and the quarter before that, uh, this momentum can probably
continue.

Phil: And there's nothing that you can see getting in the way ofthat growth. Any supply chain problems, for example?

Jessica: Yeah, so there's always competitors. So there's asmaller competitor that is basically doing AI chips. And yes, they do have some
big tech companies as clients, but they don't really have the scalability and
they don't really have the productivity that Nvidia has. And what I mean by
productivity is you put in an order, let's say, Phil, you started the next
Amazon, you put in an order for the H 200 chip. And so previously you might get
that chip in eleven months. So you put in an order and you'll get those chips
on a pallet to you in eleven months time. Now, those chips are coming to you in
three months. So they're turning out and pumping out chips at a quicker rate.
So that means they're getting more immediacy of revenue and they're reducing
costs at a company level. We don't really have that scale. And that's because
they've got strong cash flows behind them and they can invest a lot of money to
future proof their business smaller, up and coming AI chip companies. Sure,
they'll get customers. Can they take some market share from Nvidia? Probably,
but Nvidia is the first come out. They've got those sticky big tech clients and
they'll probably stay for the foreseeable future. With Nvidia, once you're onto
a good thing, you typically don't peel away profitability.

Phil: It's so important. And I just found that acronym, actually.But that you're talking about the S and P 500 only allowing profitable
companies with four quarters of Fprit.

Jessica: Oh, yeah, that sounds good. Yeah.

Phil: What's Fprit stand for?

Jessica: I don't know. I didn't even know it was an acronym.

Phil: Well, it's written here in your script. I don't know what'sgoing on. We might have to make up an acronym for that. Okay, so let's talk
about screening for profitable companies. How do you use moomoo to screen for
profitable companies?

Jessica: So we've got a stock screener and you can simply usethat from our app. And then, so under the US market tab, there's a selection of
criteria, but you can simply add in profitability, margin, earnings growth,
market cap, and the PE ratio. PEs, you know how much a company's stock is in
comparison to their future earnings. So that'll then pump out a list of stocks
that match your criteria. And then you'll see Mamushka, here's a list of
profitable companies in the US. And then you can dive into and just click on a
company and get to know that company. And then you can see at a company level
who is driving that customer's revenue growth. You can see, for know, Apple,
you can see the majority of their revenue is from iPhone sales. And then you
can see who are the biggest investors in that company. Is Berkshire Hathaway in
that company? Are they decreasing their positions in Apple, for example? So
some really detailed stuff. And then again, future earnings. Thinking about
what we're speaking about earlier, future earnings. Earnings growth drives
share price growth. And you can have a look at the company's forward estimates
for earnings. And it's in pictorial format. It's nice and easy, even for the
beginner investors. Just at a quick glance, you can see what the market is
telling you. Where will that earnings growth be? Is it going likely to go up?
Is it likely to go down? And the same for profit, the same for cash flow, the
same for costs. So you want to look at all these things probably before you
invest in a company.

Phil: And I speak to so many great investors, and one of thestrategies that I've heard is that they will find a company that they're very
interested in. They make, uh, an informed decision to take a position in it,
but they don't put all their money in it all at once. They'll do it over a
period of time and over a number of quarters, which actually forces you to read
the reports, to look at the profitability, and to look at these numbers that
you, as an analyst are doing all the time. Would you recommend that kind of
approach? Is that something that you would look at doing?

Jessica: Yeah, absolutely. So that's what a lot of investmentmanagers do, and same as you, I've spoken to a lot of investment managers and
family officers or investment managers who manage megascale family office
funds. And so that's typically what we do, and that's also what I do say. For
example, we spoke about Uber. You might put in a few bites and nibbles into
Uber when they started producing consistent profits. It's also called dollar
cost averaging. You might say allocate 10% or rather 5% of the position that
you want to put in into Uber in November. And then when you consistently see,
ah, good metrics and good, I guess, announcements by the company, you might
consistently then continue to invest in that company. And so I use investing as
saving. So I'm, um, consistently backing a company, every paycheck that I like,
that I've done due diligence on.

Phil: And conversely, as well, if the thesis change or somethingchanges in the numbers, you're not fully invested as well.

Jessica: Yes, totally. If the tide moves against you and there'sbetter opportunities out there, you need to walk away from that. And that's all
a part of risk management, and that's what the investment will do as well. And
so when the momentum moves against you, you need to decide if you want to be
making a loss or if profit is your number one game, and then pivot out of that
and go into something else.

Phil: Have a plan B.

Jessica: Absolutely have a plan B. But I think trading also playsa big part of that. And so when you are investing, it's also important to look
at the technical indicators and shameless plug moomoo here. So on Mumu's app,
you don't have to be a technical analyst. You don't have to have done a
master's of applied finance or done a technical analysis course. You can use
apps like ours. And then before you take a position in a stock or before you
buy a stock that you've done your research on, have a look at the technical
indicators and then have a look at what the market is telling you for.

Phil: I'm quite surprised because there's a lot of people who arenot fans in this industry of technical analysis. But I'm assuming that this is
going to show you the momentum. Is this what you're looking for with technical
analysis or with the tool that you're describing here?

Jessica: Yeah, absolutely. So technical analysis is how a lot oftraders and investors back up their decisions. So we do the fundamental
research and secondly, we need to look again if we want to beat the market, we
need to plot our entry price because you want to buy something on sale so that
you can sell it at a higher price. So we all do this in the industry. And so
again, fundamental research you've done that you want to get a cheaper price of
the stock you like. Let's think about Ingham's for example. So I might be
having a look at Ingham's after I've done all my due diligence. And then I can
see by clicking on the app, uh, technical indicators on Moomoo, what's the
sentiment indicator? That's what it's called. And it might tell you by looking
at hundreds of technical indicators, you don't have to look at them. The app
tells you is sentiment bullish or bearish? Meaning is the stock likely to fall
or rise in value or uh, vice versa? So if a company's share price is falling or
if it's down 10%, moving on to, let's say, BHP for example, now would be a time
where a lot of investment managers might be buying into BHP because it's a
company that's driving Australia's switch to green metals, I, uh, E. Copper and
moving into potash, another commodity.

Phil: And even nickel, even though Nickel's been hit so hardlately.

Jessica: Yeah. Yes, spot on. And also iron ore. I mean we can'thave iron ore without steel or we can't have steel without iron ore rather. So
investment managers, they'll like a stock. Everyone likes BHP, for example,
it's 11% of the ASX 200.

Phil: It's one of those must have companies. Really.

Jessica: Totally.

Phil: A balanced portfolio. Yeah.

Jessica: They've got a history of paying out strong dividends. SoI can tell you a lot of investment managers that I know are looking to buy BHP
once it hits its low. And so you can use our, uh, technical indicators and it
will tell you it's still bearish for BHP. And then when the indicators change
and it's looking bullish, you might decide to buy.

Phil: Can you set up alerts for.

Jessica: Absolutely. Yeah, m absolutely. So that's really key aswell. So you don't miss anything while you're busy working and doing whatever
you do for a living. So. Yeah, absolutely. That is a key part of a, uh,
company's share price moving as well. Trading.

40% of Square's revenue comes from bitcoin

Phil: Well, let's have a look at one more company before we windup. And that's square that you wanted to talk about. And I didn't realize how
much of the payment system in the United States goes through square because you
always hear about people Venmoing. But it's square. The market leader isn't.

Jessica: Yeah. So square is the third most popular way to sendmoney, whether you're paying for an Uber or whether you're paying for someone
to take photos of you in the street, which happened to me in New York, by the
way. So we know that square, which is a company that bought Afterpay Square,
make the majority of their money from the cash app. And the other huge portion
of revenue makeup is the square app. And that's the little terminal that you
tap on to pay for your meal with your friends or your wife. Or you tap on
square to pay for a coffee. You tap on square for your doctor visit. And we
know all these prices are going up. They're not going down. And then thinking
about diving into the detail, how are these payments by the consumer being
made? And interestingly, 40% of Square's revenue comes from bitcoin. And so we
know the bitcoin price hit a record all time high.

Phil: $69,000.

Jessica: Yeah. As we're recording this podcast, the bitcoinprices hit records. So that means that Square's. Their revenue is going to
continue to increase. And then also thinking about square, they're rolling out
new products. So they've just launched one of the first bitcoin wallets. And so
we know with the rise of bitcoin after the SEC approved those eleven bitcoin
ETFs, every man and his dog can buy bitcoin easily. Just like buying a share or
an ETF, which you can buy bitcoin, uh, via ETF, by the way, but because of
that, I guess, validation of bitcoin, that means bitcoin's price will continue
to rise and the use case of bitcoin will probably rise. So just pausing on
bitcoin for a sec. We know you can buy a Tesla with bitcoin, you can buy
coffees with bitcoin flights, et cetera. But anyway, the backbone of the story.

Phil: There'S a vietnamese cafe in Redfern where you can pay forban me in bitcoin.

Jessica: Oh, wow. Yeah. There's lots of ATMs in Indonesia as wellthat are just cryptocurrency and bitcoin. So, yeah, the use case is definitely
increasing and that's on a strong growth trajectory as well. Anyway, what are
we saying? Square's revenue is projected to increase across all of their
business platforms. And that's because inflation, sure, it's coming down.
According to the numbers that we're looking at, real inflation is coming down,
but the inflation that you and I live and breathe, the price of a coffee, the
price of filling up your shopping trolley, the price of going to a doctor, um,
that's not going down. And so Square is a key beneficiary of that through their
cash app and square terminal. And also, thirdly, the bitcoin price going up,
that is benefiting Square's revenue. So I've got Square as one of the, I think,
one of the hot stocks to watch in 2024.

Phil: So, Jessica, we've just come out of reporting season, andthis is a really important time of year for investors to understand. Happens
twice a year, once every six months. And this is where companies are reporting
about how well they've done in the previous six months. What is the feature,
the earnings hub, um, feature that moomoo has that helps new investors
understand what's going on there?

Jessica: Yeah, good question. I'd say there's a couple thingsthat I really like and find really valuable with our earnings hub. And the
first one is the calendar. So you can go and have a look at the companies that
are reporting over the coming weeks, months, and you can literally add the
companies, regardless of what exchange they're listed on, say us Australia, you
can add them to your calendar. So love that. And then on the day of their
results, that'll pop up in your calendar, and then you can get their results
just by clicking on that, and it'll take you back to moomoo's platform. Once
you're back on the platform. What I really like is, let's say Tesla just
reported results. At a quick glance, you can see if a company has either met
expectations, exceeded expectations, or missed expectations. If a company's
results are better, uh, than expected, or they're bang on the money, as in met
or exceed, then their shares will typically rally. They'll not only typically
rally that day, but over the subsequent three months as well. And inversely, if
we see disappointment, which again, you can easily see at a very quick glance
on our earnings hub, if they disappointed, then their shares will very likely
fall, and you'll typically see that soggy sentiment stick around for a couple
of months as well.

Phil: moomoo also offers 24 hours trading for US stocks so thatany news during earnings can be quickly captured and traded before it's
realized in normal trading hours. Tell us about this feature and how it
benefits australian investors.

Jessica: I guess we've got to remember, just like we're speakingabout earnings season, a, uh, company's shares can be pretty volatile before
the market opens and after the market closes. And so I guess that trading
shouldn't just be available to institutional investors and fund managers.

Phil: And you don't want to be sitting up in the middle of thenight in your pajamas trying to capture these moves.

Jessica: Yeah, exactly. But so our platform, we give you accessto trade 24 hours, five days a week on about 160 stocks. And some of those
stocks are, uh, the blue chips that you all know and love in the Dow Jones. So
let's say, for example, Nvidia. Nvidia shares initially fell after market
hours. They initially fell because there was so much to go through in their
earnings report. And then I think they fell and then they quickly rebounded and
they ended up 10% higher. So our clients could have bought into the weakness
after, they, say, fell 6% or so, and then they would have benefited from the
jump of, say, 10%. And these movements are after market hours when a lot of the
big companies report when they don't want to kind of disturb the piece.

Phil: Yeah, because they often report after the market closes,don't they? That's a very common time for them to.

Jessica: Absolutely. Yep. Very, very traditional for bigcompanies to report after the market close. Even our companies as well, such as
BHP and Rio Tinto, they all typically report aftermarket hours.

Jessica Ramire shares two great deals with Moomoo for beginners

Phil: Jessica, let's remind listeners again about the great dealsbeing offered by clicking on the link in the episode description. And that's to
do with the interest rate that's available for cash on deposit as you're trying
to decide which shares and ETFs to buy and as well, the chance to win some free
shares. Tell us about both that deal again.

Jessica: While you've got your cash parked in a trading accountwith moomoo you'll get 6.8% return. Pretty good, if I don't say so myself. So
6.8%. And that's paid for up to 180 days on balances up to $100,000. So don't
go whacking in $1 million and expecting 6.8%. Uh, because we'll only pay that
6.8%.

Phil: I've got a little bit in my back pocket.

Jessica: We only pay the 6.8% on up to $100,000. And the otheroffer is that when you deposit $2,000 into your Murmu account, hold it there
for 30 days, you'll get ten free stocks valued up to $3,300. And that's
basically T's and C's apply, but basically spinning for the chance to win ten
free stocks to the tune of up to $3,300. And they're ten free US stocks as
well. So you don't really know what you're going to get, but you'll get ten
free stocks.

Phil: You'll be in there with a chance.

Jessica: Absolutely.

Phil: The other thing about that as well is even $100 depositwill give you the chance to win up to three stocks as well.

Jessica: Yeah, absolutely. So there's always something withMoomoo, we're always offering something. When you whack in $100, you can get
three free stocks as well, which is great.

Phil: So if listeners are interested, they can click on the linkin the description which will take you straight to the Moomoo page where they
can sign up and take advantage of this great deal.

Jessica: Yes, pretty sweet deal.

Phil: Jessica Ramire, thank you very much for joining me today.

Jessica: Thank you so much for having me, Phil.

Chloe: Thanks for listening to shares for beginners. You can findmore@sharesforbeigners.com if you enjoy listening, please take a moment to rate
or review in your podcast player, or tell a friend who might want to learn more
about investing for their future.

Any advice in this blog post is general financial advice only and does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs before acting on the information. If you do choose to buy a financial product read the PDS and TMD and obtain appropriate financial advice tailored to your needs. Finpods Pty Ltd & Philip Muscatello are authorised representatives of MoneySherpa Pty Ltd which holds financial services licence 451289. Here's a link to our Financial Services Guide.