Chanticleer podcast: Banks want to take risk; ASX stocks to watch Premier Investments and Integral Diagnostics; Executive pays

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This week, James and Anthony reveal why our big bank CEOs want to take more risks, ask whether big executive salaries really incentivise business leaders, and take the pulse of the market with a special guest fund manager.

This week on the Chanticleer podcast, James and Anthony reveal why our big bank CEOs want to take more risks, ask whether big executive salaries really incentivise business leaders, and take the pulse of the market with a special guest, fund manager Eleanor Swanson.I’m convinced it’s harder to do business in Australia, across the board, and I guess banking is part of that.

The other amazing thing about Premier Investments is how they’ve managed this. It’s a pretty soft economic environment, we’ve hardly seen their revenue or profits budge. They are benefiting from a premiumisation in terms of doctors referring patients to MRI and CT scans instead of X-rays, so they cost a lot more, and in addition, they’re benefiting from indexation.

In terms of the metrics, we want to say earnings is the key focus. At Firetrail we believe that share prices follow earnings, so if the incentives are linked to something tangible, such as profits or earnings, that’s something that we’re comfortable with.

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ASX investors may need to get used to expensive stocks, writes ChanticleerASX-listed stocks have never been this highly valued. But one strategist says that’s because companies have never been this well run.
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