Hello QAVvers

It’s another Tuesday.

The AORD slipped yesterday, putting a dent in what was otherwise a good week.

Let’s have a look at the portfolio.

QAV PORTFOLIO REPORT

INCEPTION REPORT 

We’re still outperforming the STW by ~2.5 times since inception (02/09/2019).

You can always check out the live version of the portfolio chart here.

It’s been a reasonably good start to the new FY. 

Here are how the stocks have performed in the last 7 days. VVA and KSC were the big winners, while PLS slipped. 

 

RECENT TRADES

In the last week we had to Rule 1 KAU and we replaced it with HZN

STOCKS OF THE WEEK

During the last week, we also traded some stocks in our Light portfolios. Details here.

** As always, please check our work, DYOR, and consult a financial advisor before making any investing decisions.

BUY LIST

Each week we produce a buy list that we share with our members. The intended primary purpose of this buy list is for club members to use as a reference for comparing their own buy list. In theory, all of our buy lists should look pretty similar each week.

Please note the following:

  • We’re aware that there are still some stocks that aren’t appearing in our download that might be a buy, eg JBH. Still not sure why they aren’t showing up and are following up again with Stock Doctor.
  • Please review the commodity changes this week. There are several.
  • The 3PTL Sells tabs has been updated to show the latest stocks that have become a sell. Please review your portfolios in case you hold any of them.

As always, please check our work, DYOR, consult a financial advisor before making any investing decisions.

THIS SECTION CONTAINS CONTENT WHICH IS VISIBLE TO QAV CLUB SUBSCRIBERS ONLY.

LAST WEEK’S EPISODE

 



Detailed highlights of the episode:

  • Pilbara Minerals (PLS) share price rose after the company announced an upgrade to its mineral resource estimates.
  • Myer (MYR) shares dropped 14% despite the retailer forecasting a profit rise of 15-21% for 2023. This was below analyst expectations.
  • Myer’s sales rose 12.5% to $3.6 billion in 2022, despite deteriorating trading conditions.
  • The NAB business confidence survey showed confidence ticked up slightly in July, though consumer confidence remains low.
  • Tony will do a ‘pulled pork’ stock analysis on Baby Bunting (BBN) after its results on August 11th. Currently BBN is rated as a ‘Sell’ on the Brettalator system.
  • Tony did a ‘pulled pork’ on Nick Scali (NCK). It has a forecast dividend yield above 7% and strong financial health.
  • Research suggests a higher Rule 1 breach percentage (e.g. 20% rather than 10%) improves returns for the QAV strategy. The initial results show little difference in ROI but requires less trading. Tony is going to test it out and report back.
  • There was discussion on adding metrics like share buybacks to the QAV checklist. More research will be conducted on this.

 

Episode Transcription

QAV 632 Club Edition

[00:00:00] Tony: Okay.

[00:00:00] Cameron: welcome, back to QAV Tony, episode 632, 8th of August, 2023, you’re back in Sydney!

[00:00:08] Tony: I am. Yeah. It’s sunny today.

[00:00:10] Tony: It’s been a bit wintry, but it’s nice today now. It’s good.

[00:00:13] Cameron: That’s good. How was your trip back through Wagga?

[00:00:17] Tony: good. Good. We played golf a couple of times. Drove back up. We had a, we had an 18th birthday on Friday night that Ruddy and I and Jenny went to, which was lovely. A friend of ours has a daughter who’s 18. So that was nice. Spent the weekend socializing a little bit.

[00:00:33] Tony: It’s been good.

[00:00:34] Cameron: right. The 18th birthday party with a bunch

[00:00:36] Cameron: of 60 year olds.

[00:00:38] Tony: Yeah. It was. It was all the, it was all the adults friends, really.

[00:00:41] Cameron: right.

[00:00:42] Tony: Yeah. But yeah, we’ve known her all her life. So it was, it was fun. I asked her if she’d been to see the Barbie movie, cause she looks a bit like a Barbie. Don’t mean that in a bad way.

[00:00:51] Tony: She’s quite an attractive blonde 18 year old. And she said, yeah, it was really boring.

[00:00:57] Cameron: Chrissy was going to see it with a bunch of female friends [00:01:00] yesterday, but she’s got a nasty cough, so she pulled out, but yeah, it’s doing well. Done like a billion dollars at the box office.

[00:01:07] Tony: Yeah. It’s amazing, isn’t it? And Margot Robbie put it all together too.

[00:01:10] Cameron: Did she? She put it together. Good

[00:01:12] Tony: Apparently. Yeah.

[00:01:13] Cameron: Do you know how many films have done a billion dollars at the box office?

[00:01:17] Tony: No, I don’t.

[00:01:18] Cameron: I thought it was like maybe 10. 53 now. Barbie is the 53rd movie to do a billion dollars. I remember when like Titanic was the first movie to do a billion dollars. Now there’s 53 of them.

[00:01:31] Tony: I remember when Titanic was, was costing nearly a billion dollars to make and Rupert Murdoch showed a rough cut of the Titanic going down at a News Corp annual general meeting just to silence the critics and everyone walked away going, yeah, it’s going to make

[00:01:46] Tony: billions.

[00:01:46] Cameron: And it did.

[00:01:48] Tony: And he was right.

[00:01:48] Cameron: Well, speaking about going down, Tony

[00:01:51] Cameron: And I’m not talking about the 18th birthday party the market’s had a rough week. Why?

[00:01:57] Tony: Yeah. why?

[00:01:57] Tony: is it so?

[00:01:59] Cameron: [00:02:00] Sand in funnel supported by

[00:02:01] Cameron: string. Glass and a half of dairy milk chocolate.

[00:02:04] Tony: Gosh, I met Julius Sumner Miller. He taught at my school.

[00:02:07] Cameron: You’ve told me, Yeah.

[00:02:09] Tony: Yeah. Well, the stock answer, Cam, is that interest rates either went up, no, went up or looked like going up in the States again. So the market didn’t like it, but I’m not sure that really applies here. And I think our stocks have been doing fine.

[00:02:22] Tony: I, I noticed Pilbara resources up a fair bit this week after there was an an update on or an upgrade to the, the, what do they call it? The amount of resources that they declared that they

[00:02:35] Tony: can mine. So that was good.

[00:02:37] Cameron: Well you obviously haven’t seen what happened to Myer today.

[00:02:41] Tony: No.

[00:02:41] Cameron: Myer can never win with Myer. It’s down 14% today.

[00:02:47] Tony: you are. ha

[00:02:49] Cameron: I saw this in the ABC not

[00:02:50] Cameron: long before we went to air. Myer shares have slumped after a forecast weaker than expected profit for the 2023 financial year. The retailer predicts that after [00:03:00] tax profit will come in between 69 to 73 million, up 15 to 21% from a year ago.

[00:03:06] Cameron: You would think that’s good, but below a forecast of 88. 5 million by financial news service Refinitiv. Like, who’s listening to Refinitiv? Why are we listening to Refinitiv all of a sudden? When, why do they get to decide what should happen? Myer says sales rose 12. 5% from the 2022 financial year to 3. 6 billion.

[00:03:27] Cameron: That’s despite deteriorating trading conditions over the first half of 2023. So, seriously, what the hell? Their, their profits are up, their sales are up. Share price is down 14%. Like, give me a break. That’s not right.

[00:03:41] Tony: Consensus downgrade. That’s. One of the things that drives the share market the most is forecasts, and we all know how good forecasts are, and we all know that stockbrokers are inclined to gild the lily with forecasts when they talk to their clients, and as soon as someone comes out and says, yeah, that forecast isn’t going to be [00:04:00] met, even if they make up a lot more money this year than last year, share price drops.

[00:04:04] Tony: And it’s a, it’s kind of a strange thing in the share market, really. A, that you listen to stockbroker forecasts or, or analyst forecasts, and B, Myer should have been doing a better job of guiding them down if they are meeting with those analysts along the way. To come out with a surprise downgrade is never a good look.

[00:04:21] Tony: And this is confession season for Myer, because they, they don’t report in August, they report in September. Oh, sorry, they announce their results in September, they report they finished, they rule their year off in July.

[00:04:33] Cameron: So this is a confession, I guess.

[00:04:35] Tony: Yeah,

[00:04:36] Cameron: Myer Chief Executive John King said we continue to tightly manage costs, inventory and cash to ensure we have a strong balance sheet as we begin FY24, where we expect the ongoing uncertainty around the macroeconomic environment to persist. I thought he was going to say, you know what, you can all just bite me.

[00:04:53] Cameron: That was a bloody good result. Leave me the hell alone.

[00:04:56] Tony: yeah, they should, but he’s trying to be polite, I guess.

[00:04:59] Cameron: It’s [00:05:00] probably why I’m not the chief executive of Myer.

[00:05:02] Tony: Well, John King is pretty experienced. He should have known better than to have a surprise downgrade. He should have been out there much before, a long time before this,

[00:05:10] Cameron: Well, he’s, he is, isn’t that what he just did? He just guided the market.

[00:05:15] Tony: Yeah, a bit late though, he would have known about this. Because Myer, you know, the interesting thing about Myer is they do more than half of their business in the first half at Christmas time, so something’s gone horribly wrong in the second half, which he would have been part of, and knowing as it went, he should have been out there a little bit earlier, I would have thought, letting people know it’s good, but it’s not as great as the analysts are saying.

[00:05:36] Cameron: Like, it’s just, this is my experience from like last year with Myer all over again, it’s just, it’s up 25, 30, 50%, and then you just watch it slide all the way back down to become a rule one.

[00:05:48] Tony: Oh, it’s a bugger, yeah.

[00:05:50] Cameron: Well, Tony, speaking of confusing news, I was looking at the ABC before we went to the air. Two stories back to back in the ABC today. The first [00:06:00] one is business confidence picks up even though costs rise. The National Australia Bank says business confidence has lifted slightly to be back in positive territory in July.

[00:06:09] Cameron: However, it is still low at two index points. Business conditions eased one point to 10 index points. Trading conditions, employment and profitability were all steady according to NAB chief economist Alan Oster. He says business conditions continued to show resilience in July and have been broadly steady in the past couple of months at above average levels.

[00:06:29] Cameron: The very next story says consumer confidence falls. Consumer confidence remains deeply in pessimistic territory amid high interest rates, high inflation and the slowing economy. Westpac and the Melbourne Institute say consumer sentiment dropped 0.4 percent to 81 in August. Westpac senior economist Matthew Hassan says the Reserve Bank interest rate pauses last month and this month have done little to lift confidence, probably because the RBA has warned that more rate rises may be needed.

[00:06:58] Cameron: He says consumers are worried about [00:07:00] inflation. including recent fuel and energy price rises with pressure on family finances and concerns about rates and the economic outlook. Now, call me crazy, call me stupid, but I would have thought if consumer confidence is low, business confidence would also be low seeing as consumers are the ones that are spending the money on the businesses and so if consumers are worried that they’re not going to spend money and therefore business confidence would be low, but apparently I don’t know anything.

[00:07:26] Tony: Yeah, I don’t know. I mean, consumers are being driven by interest rates, which I guess business is too, to a certain extent. Oh, I’ve got no idea why they’re different. Just speculating. I suspect they see, I mean, the talk about recession is lifting and supply chains are opening up and inflation’s coming down a little bit.

[00:07:43] Tony: So that’s probably stoking business confidence, but, but mortgage holders, residential mortgage holders are still experiencing high, a quick rise in interest rates, which should be hurting is my guess.

[00:07:55] Cameron: Well, there you go. Other news? Coking Coal. [00:08:00] In our when we put out our buy list yesterday, we said Coking Coal was a sell. Then I noticed that meant Stanmore was a sell because they’re Coking Coal. I went to double check that this morning and I looked at the chart again and I think it is a sell .

[00:08:16] Cameron: I think it’s above the sell line. Do you have a look at it? What do you

[00:08:20] Tony: Yeah, I agree. I think it’s a buy, according to the chart. The only question I have is that’s, that’s the graph that we use a rolling monthly futures contract for, isn’t it? So we don’t really get a five year monthly graph for coking coal.

[00:08:33] Cameron: No.

[00:08:34] Tony: Yeah, so it’s, yeah, I might just try and dig around and maybe you can do the same and try and find a five year graph for coking coal if we can.

[00:08:41] Cameron: I think we did that and that’s how we ended up with this one. I think this is the only one we could find the last time we did that, but

[00:08:47] Tony: I know.

[00:08:48] Cameron: things might have changed.

[00:08:49] Cameron: Alright, well, portfolio updates our portfolio’s still doing the same, still two and a half times the index since inception [00:09:00] it’s been a, I don’t know, relatively Quiet week, I guess.

[00:09:04] Cameron: Nothing much has really happened. Haven’t had to trade anything in the last week. No really big highlights. Do you have any highlights from our portfolio in the last week, Tony? I think the biggest performer was PLS as of today, because it’s gone up, as you said. The worst performer was probably LAU, Lindsay Australia, it’s taken a bit of a hit.

[00:09:27] Tony: Okay,

[00:09:28] Cameron: I mean, it, we bought it at 42 cents and it’s currently 1. 22, so I’m not complaining to the Lindsay brothers, but still, it’s, it’s come back a bit. Don’t know why, maybe a little bit of profit taking, who knows.

[00:09:40] Tony: well,

[00:09:41] Tony: the

[00:09:41] Cameron: had a couple of dividends in there too, so it’s, it’s been a corker of a stock.

[00:09:46] Tony: Yeah, good. The weekly report I got from Navexa, which is the calendar week last week, says the worst performing stock was Credit Corp, which we spoke about last week, coming off again because it’s forecasting less than what [00:10:00] analysts are forecasting, so the stock is down 12%. But ASG, Auto sports groups, was up 11. 11%. 11. 11%.

[00:10:08] Tony: Last week,

[00:10:09] Cameron: last week. really?

[00:10:10] Tony: Hmm. So that’s between 31st of the 7th and the 6th of the 8th, according to Navexa.

[00:10:16] Cameron: Well, it’s come off a lot since then.

[00:10:19] Tony: Okay.

[00:10:19] Cameron: At the moment, they’re saying I’m looking at the last seven days and it’s saying it’s down 1. 22%.

[00:10:26] Tony: Hmm.

[00:10:27] Cameron: So, oh no, that’s just today. No, it’s up 0. 83% in the last seven days. So, I don’t know. It must have taken a turn. I never know. Your numbers are always different from my numbers.

[00:10:37] Tony: Yeah. I just used the report Navexa gives me for the calendar week, week before. Anyway.

[00:10:41] Cameron: Anyway, not a lot of movement.

[00:10:43] Tony: No, it’s actually kind of eerily… Quiet, isn’t it, for a reporting season? Oftentimes people are second guessing what’s coming out and selling and trading trading, on results, but haven’t seen much of that yet.

[00:10:58] Cameron: You haven’t noticed anything? You’re [00:11:00] still doing downloads of the stocks with the that have come out with their financials a couple of times a week? No?

[00:11:06] Tony: Nah, nah, unless I’ve got something to buy or sell, I’m not. And I haven’t at the moment, so everything’s reasonably above its, its sell lines, which is good. It’s nice to have a stable portfolio for change.

[00:11:17] Cameron: So what investing stuff do you have to talk about this week, Tony?

[00:11:22] Tony: A couple of things. I’ve got an update on the work that Ryan has been doing for us and it’s, it’s still probably a week away from being completely finalized and I’ve asked him to put, put the major points into a PowerPoint presentation, just a short three slide deck that we can share. It’s looking like though, apart from the fact he’s got double check numbers, etc.

[00:11:45] Tony: It’s looking like though, as I thought, there’s no difference from buying top down on the buy list to buying bottom up on the buy list, or little difference anyway. So that, we can put that one to bed. Which is kind of counterintuitive, because you think if the [00:12:00] QAV score was higher, it would be a better buy, but it wasn’t coming out that way.

[00:12:05] Tony: And he’s also done a fair bit of work on whether Rule 1 should be 10% or 20%, and despite some early results showing 20% was better, again it’s come out as little difference in terms of ROI. So, I’ve said, yeah, so the only difference that we found, or that he found, is that there are much less trades if you use 20% compared to 10%.

[00:12:30] Tony: It’s kind of a net net, you get the same sort of returns whether you use 10% or 20%. So I’ve asked him to go back and put in a transaction cost and see what the difference that makes to the returns. So he’s going to come back next week and let us know if it makes a big difference or not.

[00:12:46] Cameron: What figures is he using for the brokerage calculation?

[00:12:49] Tony: I’ve asked him to use 0.4 of a percent, which is what I use. which is what I pay with Ballieus. So he’s going to use that.

[00:12:57] Cameron: So changing rule one from [00:13:00] 10% to 20%. on the surface of it didn’t make any difference.

[00:13:04] Tony: It, it didn’t make any difference to the returns, but it made a big difference to the number of times we had to sell. And he also pointed out that it made a big difference to the, the rule ones after rule one. So there are almost no rule ones after rule ones at 20%, but there are a lot of rule ones following on the heels of rule ones, like the concatenating sells, the death spiral, if you use 10%.

[00:13:26] Cameron: So you’re saying that if we leave it at 10% the results are the same and therefore we might as well move it to 20% and then have to trade less?

[00:13:35] Tony: Correct. That’s what I’m thinking, but I’m going to wait until I get the final results next week.

[00:13:38] Cameron: Wow! That’s that’s a big change to our processes if it comes out that way at the end.

[00:13:46] Tony: Yeah, will be. And you know, it’s limited to three, like three years worth of analysis, but it’s fairly rigorous. So I’ll release it. And I’ll probably just do it as a trial myself for a while, first of all to see. You know, what the kinks up and then [00:14:00] yeah, we might make a change later on this year.

[00:14:02] Cameron: So has he looked at 25%?

[00:14:05] Tony: No, no. And look, to be fair to him, it’s a, it’s a really manual process to what he’s doing. So he’s got the buy, all the buy lists we’ve issued. And he goes back to the start and he just starts making. I think he made six or eight portfolios from different starting dates and then traded all the way through.

[00:14:25] Tony: And because we don’t have great automation, like he’s checking for commodity sells manually, he’s, you know, using the Brettalator for three point buy lines, which you’ve got to do manually as well. So there’s a fair bit of manual work there. It’s, it’s quite time consuming to say, okay, go and try 17%. or go and try 25%. So we just did 10 and 20.

[00:14:44] Cameron: Yeah, hopefully we can build some sort of software app that’ll enable us to speed up the regression testing. But that’s that’s, oh, that’s fascinating. Thanks for doing all of that. Thank you to you and Ryan for looking into that. I’m sure that’ll make all of our lives a lot easier if we didn’t have to do [00:15:00] as many rule ones.

[00:15:02] Tony: yeah. So hopefully I’ll have something to produce next week on that one. What else have I got? I’ve got a pulled pork to do cam on I’m going to do it on Nick Scali, which popped up on the buy list again this week. I think I may have done Nick Scali years ago, or at least in the past, but I’m going to do it again.

[00:15:18] Tony: And I think it’s, it’s a good company. It’s worth highlighting. So Nick Scali, the, the ticker code is NCK. I’ve owned it in the past, don’t own it now, and it’s been off the buy list for a while probably because of COVID and COVID related issues. And I’m doing the analysis on the results that we have available today.

[00:15:39] Tony: And this company doesn’t report until the 22nd of August. So the numbers we’re using are six months old and we’re waiting for new ones. It’ll be two or three weeks before we see them. But as you know, I I’m happy to buy. A company that comes into the situation, even though we’re waiting for new numbers.

[00:15:57] Tony: Might be, if people are out there a bit more conservative, they [00:16:00] can, you know, happily wait until we get new numbers. But generally I find, if something pops up on the buy list during reporting season before the results, especially retail companies which tend to be more cyclical and volatile than some, you know, some of the other companies that we look at.

[00:16:16] Tony: As we saw with Myer today. I’m happy to buy them because if they’re trending up coming into reporting season, usually that means the analysts have figured it out and are expecting a good result. There could even have been a leak of information somewhere along the line as well. But anyway it’s usually a good sign.

[00:16:31] Tony: Not always, but usually. So, have a look at it. Nick Scali, if people aren’t aware of them, they’re a furniture store network. A bit like, you know, Harvey Norman. that kind of thing, but they do offer brands across the whole economic spectrum from discount through to premium. And the big change in their business last year was they acquired a company called Plush, which has boosted sales and profit for [00:17:00] them which has been, been good for them going on their last results.

[00:17:03] Tony: So this is going back to February or March profit was up 30 from million to 60 million net profit after tax. And what was it? I don’t have the sales numbers in front of me, but sales were also up, so something similar. So big, big boost to profit from acquiring Plush throwing off lots of cash flow, which we like, and they’re paying down the debt that they took out took on to make that acquisition.

[00:17:31] Tony: So working well for them. They, they said in that profit result that they were able to extract 20 million a year in synergies from the two brands, and that they’ve done a lot of work to bring Plush into line with the practices and processes that Nick Scali use. So they’ve transitioned to Nick Scali’s point of sale and they’ve adopted, you know, the policies and procedures in terms of drop shipping, because a lot of Nick Scali’s business is you go in, [00:18:00] pick a sofa or a bed that you like, and then they deliver it to you in 12 weeks time and they manufacture it Overseas. So they have a very streamlined manufacturing process. Business is interesting. It’s been around for as long as I have, 60 years ago. It was, it was started in Sydney and they largely import, I think they might import all their furniture, as I said, through our drop ship method. They have currently 107 stores in Australia and New Zealand.

[00:18:27] Tony: They called out in the last results that they thought that they could get up to 180 stores, so there’s still plenty of room to, to grow in the ANZ market without cannibalizing the current offerings. And they also now have an online presence, which is increasing as well. So it looks like there’s a fair bit of growth available for this company.

[00:18:48] Tony: The big thing I like about Nick Scali as well is that it’s He does have an owner, founder, still running the business. A guy called Anthony Scali, so not the Nick of the name, who I think was their [00:19:00] father, but the son, Anthony. And he still has he’s a director holding about 14% of the shares. And I remember a year ago, maybe a few years ago now, he went and bought out his siblings.

[00:19:12] Tony: So it’s just him, and he’s been running the business for a long time. Probably working it with his father. And still holds 14%. So it’s one of those stories of owner founders doing well and focusing on, on the process that got them to where they are. So that’s good The numbers. The ADT for this, for this stock is 1. 847 million per day. So it will be big enough, I think, for most of our listeners. I’m doing the analysis of the price of 10. 67 which is less than the consensus target. At that price, the stock is yielding just over 7%. So that’s a tick from us because it’s above the mortgage rate. Stock Doctor Financial Health is strong and steady.

[00:19:54] Tony: I’ll just call out the ROE for this company. I don’t focus on ROE in the checklist, but it’s high for this company. [00:20:00] I know some people do. It’s nearly 73%, which is huge. The PE for this company is 8x. Which is, you know, probably getting up there for a QAV stock, but it is the lowest of the last six halves, so it gets a tick from us for that.

[00:20:14] Tony: PropCaf, likewise, is 6. 27 times, so it’s getting up towards our seven ceiling. So this, this company is starting to get… a bit expensive for us, but it’s just sneaking in at the moment. IV1 is 6. 79. So the share price is above that, but it’s just below IV2, which is 11. 82. So we score it for that.

[00:20:36] Tony: Can’t score it for book value. It’s book plus 30 is only 2. 69. And I think the reason for that is it’s the It’s carrying lots of intangible assets which is the goodwill from the Plush acquisition. So that’s on the balance sheet at the moment affecting the book value and NTA even worse. Forecast, interestingly enough, the consensus forecast earnings per share for this company is a drop of [00:21:00] 10%.

[00:21:01] Tony: Nothing I could see in any of the announcements from the company sort of supported that. So I’m not sure where that number’s coming from, but certainly, you know, with the increases we saw from the Plush acquisition, I’m not sure There might be a surprise on the upside. I’ll leave it at that. I’m not sure that’s going to hold.

[00:21:16] Tony: So, but anyway, it gets a negative one score for decreasing EPS in our checklist. It is a new three point trend upturn. So let’s just come back on the buy list. It does have consistently increasing equity, which is always a good sign. And all in all, the quality is 14 out of 16, or 88%. And the QAV score is 0. 14. So not near the top above the bottom. And possibly if it keeps going the way it’s going, it might fall off the, the buy list if the price increases too much further. I mean, it is, it is a discretionary retail stock. So we have lots of discretionary retail stocks on our buy list at the moment.

[00:21:55] Tony: Super cheap accent AX1, [00:22:00] accent one, I think it is a shoe company, et cetera, et cetera. And they’re. You know their sales have been hit by discretionary spending drying up because of interest rates rising so they are back on our buy list but there will come a day when they turn around and become buys again and this this is looks like it’s the case for Nick Scali.

[00:22:19] Tony: Risks are obviously interest rates if they do stay where they are or even increase that could eventually hurt sales but I also think too there’s a lot of talk around them in the , financial press at the moment about housing construction shortfalls and problems and prices going up and builders not being able to renegotiate fixed price contracts or, or canselling them rather than renegotiate them.

[00:22:44] Tony: And one of the key drivers of people buying furniture is moving house. So that might be a. a difficulty that they face in the near future. But their risks, we’ll see what happens when they announce their results. But at the moment, I think it’s a buy and people could have a look at it and do their own research.

[00:22:59] Cameron: Did you know that [00:23:00] Nick Scali is still alive?

[00:23:02] Tony: No, I didn’t.

[00:23:03] Cameron: Still alive, still a consultant to the company and a non executive director.

[00:23:08] Cameron: I found this story about him from the Sydney Morning Herald, 1983. Says, 30 years ago, Nick Scali arrived in Melbourne on an old Greek ship, the Hellenic Prince. He had 10 pounds in his pocket and a little English.

[00:23:21] Cameron: The minute his feet touched Australian soil, he was transferred to a train and railed straight to the immigration camp at Bonagilla, Victoria. He was a long way from home, Reggio Calabria, southern Italy, where his parents had a successful small goods business and bakery. I was 18. I had no trade or profession.

[00:23:40] Cameron: It was very difficult, but I was adventurous, he said. Within a few days, Nick had packed up and set off on a working trip around Australia. I thought, if I don’t do it now, I never will. I’d heard that Australia was a huge country, still in its natural state, and lots of birds to see. I love birds, he said.

[00:23:56] Cameron: Don’t we all, Nick? He returned to Melbourne, enrolled in [00:24:00] night school English classes for a year and began to assess the economic situation. It was pretty disastrous. Food, clothing, there was no quality merchandise, and it was so far from everything. In 1955, Nick Scully set up an electrical appliance company.

[00:24:15] Cameron: Most of my customers radiograms and fridges. Love a good radiogram, don’t you, Tony?

[00:24:21] Tony: I do. The old 301, beautiful.

[00:24:23] Cameron: what’s a radiogram? I got no idea, I was

[00:24:25] Cameron: being

[00:24:26] Tony: We used to have a radiogram. It’s, it’s a, it’s a, a stereo record player and radio all in the same big timber unit with the

[00:24:34] Cameron: All those big timber box things that were in the living room? Is that what they were called?

[00:24:38] Tony: Yeah.

[00:24:39] Cameron: They were migrants and they needed everything to set up home. They’d ask me if I could help them get their furniture. That was the start. By 1958, he was buying and selling local furniture, but because he was dissatisfied with the local products and the lack of craftsmanship, Nick began to import from Italy.

[00:24:54] Cameron: From Italy, you can buy modern furniture, Baroque and traditional, says Nick. They really know how to [00:25:00] make fine furniture there. Italians have been

[00:25:02] Tony: Grand Sale, Grand Sale, Grand Sale.

[00:25:05] Cameron: Comprara, Comprara, Comprara! Franco Cozzo! God, that’s so drilled. I haven’t seen a Franco Cozzo ad in 30 years.

[00:25:16] Tony: Oh, did you see that there’s a documentary about him on the ABC a couple of months

[00:25:19] Cameron: that would,

[00:25:20] Tony: Someone’s painted a mural in Footscray on the side of a wall franco

[00:25:25] Cameron: God, the first like 20 years I lived in Melbourne, just Franco Cozzo late night TV. What a, it was fantastic.

[00:25:32] Tony: Well, you just, you said italian Baroque Furniture And that made me think of Franco Cozzo.

[00:25:37] Cameron: And then you go past a Franco Cozzo shop and you go, yeah, I’d never buy any of that stuff. It looks terrible, but he knew how to market. That’s for sure. So that’s there’s, I went and looked on the Nick Scali website. There’s nothing about the story of the dad and how it got started, but this is from an old Sydney Morning Herald.

[00:25:53] Cameron: So there you go.

[00:25:55] Tony: Oh, great. I love those founder stories. They’re fantastic.

[00:25:58] Cameron: Yeah, I mean they’re usually a little bit, [00:26:00] you know, fictional too, mythologized, but I’m sure there’s

[00:26:03] Tony: and Survivor bias

[00:26:04] Cameron: than fiction then. Yeah,

[00:26:06] Tony: There was a whole shipload of people came across with the amount of those.

[00:26:09] Tony: Started a successful furniture business, yeah.

[00:26:11] Cameron: yeah. I like this section, this is like 1983 journalism. At Scali’s there are extraterrestrial beds. Round ones set in lotus shaped suede panels, reclining beds which adjust to any desired angle at the touch of a gear stick, beds which look like they’d give birth to a Bottiselli Venus beneath eggshell green satin bed heads shaped like shells.

[00:26:36] Cameron: This does sound like Frnaco Cozzo. There are beds with velvet crescents rising at one end and setting at the other. There are prim and quilted beds with flounced skirting around their legs. These are sensualist’s beds. And there are hand carved beds. Suddenly we’re in the built in modular bar section.

[00:26:53] Cameron: This sounds like your style. This is apartment owning, groovy, single swinger or young married [00:27:00] territory. Built in radios play softly behind indirect lighting. Digital clocks ooze the passage of time, cassettes turn, light emitting diodes dance like laser beams across airline cockpit inspired panels set in rich, dark leather, glass cabinets with smoke tinted doors slide and spring Open at the slightest touch, Chrome Tubes, Arc, Curve and Reflect, A World, Which Out Hollywood’s Hollywood After A Few Campari’s Or Black Russians, The Fridge Door Is Definitely Bomb And Bulletproof, It’s Quilted And Studded Leather, We Move On, I wanna see all of that, I wanna go back to 1983 and see a Nick Scali store.

[00:27:39] Tony: Those extra threats for your bed should go on the Josh Rogan, experience. Talk about UFOs.

[00:27:44] Cameron: Joe Rogan, not

[00:27:45] Cameron: Josh, Joe

[00:27:47] Tony: Joe, oh God, have you heard all that stuff? Someone posted a meme on Facebook, it said, Here’s a map of UFO sightings.

[00:27:55] Tony: It was a map of America,

[00:27:56] Cameron: Usually in the Midwest, Idaho.

[00:27:58] Tony: sighting

[00:27:59] Tony: of 1957 in [00:28:00] Russia.

[00:28:00] Tony: All these dweebs came on to pull him apart.

[00:28:03] Cameron: Yeah. For some reason, you know, these aliens travel light years come to Earth and then always end up speaking to someone with. Five teeth missing in the middle of Idaho. At the end of this article, getting back to Nick Scali, what kind of furniture do the Scalis have in their Point Piper home?

[00:28:22] Cameron: According to Son Anthony, they have specially imported custom built furniture of the Feathered Down variety. My taste is quite different to what we’re selling, he says.

[00:28:32] Tony: So he doesn’t get the furniture from his own store.

[00:28:35] Cameron: From his dad’s store.

[00:28:36] Cameron: you know. That’s young Anthony. So yeah,

[00:28:39] Tony: And they were already living in Point Piper in 1983.

[00:28:43] Cameron: 1983. Yeah. Well, 62, they started that. 83, 20 years. Successful little business done well.

[00:28:50] Tony: Yeah,

[00:28:51] Cameron: So there you go. Thank you for doing that pulled pork, Tony. Let’s get into Q& A.

[00:28:56] Cameron: Hey, Alex.

[00:28:58] Alex: Hello?

[00:28:58] Cameron: What do you have for us this week, [00:29:00] Alex?

[00:29:01] Alex: There’s a, well, I guess a comment from Marcus, so I’ll, I’ll read that out. He says, this is a Hail Mary to the group. As some of you know, I’m traveling in Europe for four months, so have no PC or tools. Very lucky.

[00:29:14] Tony: I couldn’t imagine doing that.

[00:29:16] Alex: For four months?

[00:29:17] Tony: Yeah.

[00:29:17] Alex: Really?

[00:29:18] Cameron: Take a MacBook Air. I mean, that’s what I would do. But anyway, you do you, Marcus.

[00:29:22] Tony: Yeah.

[00:29:22] Alex: So he says, I’ve cashed out of all Stock, barring substantial holdings in BBN, my former employer. The price has rebounded significantly the past couple of weeks slash today with the earnings update, i. e. approximately 40% up over the last few weeks. I’m holding out for the dividend date later this month.

[00:29:42] Alex: Management are going through a transition with a new CEO in October. Cam, can I request TK does a pulled pork once results are released and in Stock Doctor, please?

[00:29:50] Cameron: Baby bunting.

[00:29:52] Tony: Yeah,

[00:29:52] Cameron: Daddy’s gone a hunting. Is are you going to do that as a pulled pork today, Tony?

[00:29:57] Tony: No, not today because the results aren’t out yet. [00:30:00] So I’m going to follow the request and do it. I think it’ll be next week, but it may be the week after. I looked up Baby Bunting’s date of announcing their their profits. It’s 11th of August, which is only a few days away. So hopefully it’ll be in stock Doctor by next week and I can do a pulled pork then.

[00:30:16] Tony: But I’ve got to say, I hope Jon hasn’t gone yet because… If you look up baby bunting the brettalator, it’s a, it’s a sell.

[00:30:24] Cameron: Really?

[00:30:25] Tony: not sure the results are going to help, but we’ll see.

[00:30:27] Cameron: Well, the share price has gone up a lot lately, but yeah. Not enough to get it out of a sell, huh?

[00:30:33] Tony: No, it’s been a falling knife for a while now. And as, as as Jon alluded to, there’s a transition of MD, so that’s fine. In fact I the guy who’s leading, Matt Spence Spencer, Spence, Spence, used to work at Shell, but he was coming in as I was going, so interesting. And also, too, I used to work at Coles Myer with the chairman, a guy called Gary Kemp. So my alumni are doing well at Baby bunting.

[00:30:57] Cameron: Well, it’s, it looks like it’s nearly back above [00:31:00] the sell line. Actually. It’s been quite a ways below it, but it’s, if it keeps nudging up, it’ll be back over it. So maybe if, you know, by the time Marcus gets back it won’t be a sell anymore. Maybe, maybe they were gifted to him as part of an options program or something.

[00:31:15] Tony: Reminds me of, I forget now the name of the author. It might’ve been Oscar Wilde. Jumps on a steam ship from London to New York and before he leaves London, he’s finished the book and given it to the publisher, gets to New York, doesn’t know what’s going on for the last three weeks while he’s been. And he sends a one character telegram back to his his publisher and it’s a question mark.

[00:31:36] Tony: And then the publisher sends a one character telegram back to him. It’s an exclamation

[00:31:41] Tony: mark.

[00:31:41] Cameron: Well, is that a good thing or a bad thing? I wouldn’t be sure.

[00:31:44] Tony: Yeah, no, I think it’s a good thing, but great story about being away and cut off from

[00:31:48] Tony: things anyway.

[00:31:49] Cameron: Yeah. Well, maybe that’s what Marcus is doing. Maybe he’s going, taking a slow boat to Europe.

[00:31:54] Tony: Yeah, it wasn’t Mark, is it? Sorry, I called him

[00:31:55] Tony: Marcus. Sorry, I called you Jon.

[00:31:57] Tony: Doesn’t matter. He can’t, he can’t hear it. [00:32:00] He’s without any sort of connection, connectivity in Europe, in the far flung reaches of deepest,

[00:32:05] Tony: darkest Europe.

[00:32:07] Cameron: For four months

[00:32:09] Tony: Yeah.

[00:32:10] Cameron: no PC. Wow. That’s it’s, it’s hardcore. Sure. It’ll be very relaxing, Marcus. Enjoy. Enjoy yourself.

[00:32:17] Cameron: Well, thank you, Alex.

[00:32:18] Alex: Thank you. See

[00:32:19] Tony: See you Thanks.

[00:32:21] Cameron: All right. Only other question we’ve got is from Jon and Jon’s a new club member. Welcome Jon. He says, I’ve added two columns to my spreadsheet process. What do you guys think? One is date last check notifications. I would hate to buy and later find I’ve missed something important that might influence my decision to buy or sell.

[00:32:41] Cameron: Date last checked notifications. Okay, good.

[00:32:45] Tony: Yeah, I’m not sure about that. I mean, I don’t usually check notifications before I buy, oh that’s probably not true. I do do a bit of a Google search and see if there was any news on the company. But yeah don’t necessarily go back to the ASX notifications to [00:33:00] check. Alerts. Definitely. I think it’s a great idea having a date on your last checked alerts. Yeah.

[00:33:05] Cameron: well, before I buy or sell anything I… These days I check everything that I can. Like SMR, I was going to sell SMR this morning and I was like, why don’t I just double check that Coking Coal sell line because that’s the reason I’m selling and it’s up 30%. And of course I bought. I bought Stanmore when Coking Coal was a Josephine, and I accidentally bought it without checking it, just to, you know,

[00:33:30] Tony: yeah.

[00:33:31] Cameron: So that’s when I learned to double check everything before I do anything.

[00:33:35] Tony: yeah.

[00:33:35] Tony: Hmm.

[00:33:36] Cameron: The second one, Jon has added, is recent buyback, This is the main one I wanted to ask you about. He said, VUK, Virgin UK, just completed a share buyback, which I understand is a good sign. I’ve added this as a checklist item. What do you think about looking at buybacks, Tony, as a, as a scoring I think it’s worth investigating, so I’ll add it to the list of Ryan’s work, which means it’ll get looked at in [00:34:00] three years time. But I think it’s a good idea. So look, Jon, short circuit things and give us some research on why you think that and make your case. Let us know why, what your results are from doing it or what you base it on, but I think it has merit.

[00:34:15] Tony: It makes sense to me that if the company’s buying back shares and there’s less shares on issue, then the stock price should go up. So it’s not a bad idea.

[00:34:23] Cameron: Hmm. Yeah. Good thinking, Jon. Well get back to us. Do some, do some analysis, Jon, and tell us how it goes. Well, that’s all the Q& A for this week, Tony. Quiet Question Week. Let’s get into After Hours. What have you been, what have you been doing, Tony, apart from playing golf with Ruddy?

[00:34:40] Tony: Yeah, and going to 18th birthday parties.

[00:34:42] Cameron: Hmm.

[00:34:43] Tony: Yeah watching the women’s FIFA World Cup with Jen. She’s, she’s fallen in love with it. And it’s it’s actually good quality football to watch too. So we’ve been logging into an Optus account on her laptop and watching some of the games and tuning into the Matilda’s [00:35:00] live games, which was, and there was one last night.

[00:35:01] Tony: So it’s, it’s been great. The standard’s very high, very watchable and

[00:35:06] Tony: lots of good fun.

[00:35:07] Cameron: Oh, fantastic.

[00:35:08] Tony: Yeah.

[00:35:09] Cameron: And the Matildas are having a good run. I understand that they beat Canada, I think. Is that today’s news?

[00:35:16] Tony: That’s last week’s news. So they’re, they’re currently into the quarterfinals. They won the round of 16 match last night against Denmark. So last night was the first of the knockout rounds. I can’t afford to lose from now. So whenever they lose,

[00:35:31] Tony: they’re out.

[00:35:32] Cameron: I wonder who Princess Mary was backing with that one. Was she backing Australia or Denmark? You know, that must have been a tense, tense night in the Royal Palace of Denmark.

[00:35:44] Tony: probably didn’t tell us until after the match, and then she backed Australia.

[00:35:47] Cameron: Ha ha ha.

[00:35:48] Tony: Yeah, that’s been good. We watched the England match, which was on before, and that went down to penalty shootouts against Nigeria. So that was a cliffhanger of a game. It’s good fun. Good fun watching

[00:35:58] Tony: it.

[00:35:58] Cameron: And you’ve been watching [00:36:00] Ted Lasso also, so you’re

[00:36:01] Tony: Yeah, so, again with Jenny, she’s right into it, and it’s been good fun, it’s great last season. It’s very you know, very light and, but generally uplifting. Jenny made the comment, it’s the best thing since the West Wing, so there you go. Yeah,

[00:36:14] Cameron: Oh, that’s a big call.

[00:36:16] Tony: Yeah, have you seen it?

[00:36:18] Cameron: I watched the first season. Chrissy and I

[00:36:20] Cameron: watched the first season. it?

[00:36:21] Cameron: was a bit sort of smarmy for me. I didn’t, I love Jason Sudeikis. I loved him in SNL. I like his different other things he’s done. Film appearances, whatever, everything. I just found it was a bit sort of, bit for, a bit sort of candy apple for me.

[00:36:38] Cameron: A bit sort of fairy floss. I, I, you know, couldn’t, couldn’t really stomach it. But I liked the bear. Which is a similar sort of story, I told you about this, about

[00:36:47] Cameron: the guy goes to take over his dead brother’s sandwich bar in Chicago. Similar sort of story about having to bring together a team of people to all focus and [00:37:00] work together as a team, but just with a lot more sort of violence and swearing and, you know, people pulling knives on each other and threatening to stab them in the eye and, a lot more angst to

[00:37:10] Tony: Yeah, well, it’s yeah, it’s just, Ted Lasso is definitely PG, but I’ve enjoyed it, it’s good.

[00:37:16] Cameron: Yeah, no, I’ve heard good things. My boys loved it,

[00:37:17] Cameron: They raved about it. They, I keep meaning to get back and watch it, just don’t have a lot of time. but one thing,

[00:37:25] Tony: came out this year,

[00:37:26] Cameron: yeah, I heard that was really good.

[00:37:28] Tony: which I think is the

[00:37:29] Cameron: thing, yeah, I think they wrapped it up with that one, yeah.

[00:37:33] Cameron: One thing we did watch is the Michael J. Fox documentary, Still,

[00:37:38] Tony: Right.

[00:37:39] Cameron: which is on Apple TV, I think.

[00:37:41] Cameron: Really good, yeah. Like, I, I, I don’t like…

[00:37:45] Cameron: Shows about celebrities typically, unless it’s, you know, somebody I’ve got a deep personal connection with, like I watch the Bowie documentary. But you know, I feel kind of icky, you know, paying attention to celebrity stories when there’s a million people really suffering and [00:38:00] real stories.

[00:38:01] Cameron: I kind of feel like who gives a shit about celebrities really at the end of the day. But! You know, Michael J. Fox is Michael J. Fox. We all, you know, people of our generation grew up. He was like one of the biggest stars in the world and was you know, seemingly likable guy. And then 29 when he got diagnosed with Parkinson’s and yeah.

[00:38:21] Cameron: And at the height of his. success, you know really the top of the world gets diagnosed with Parkinson’s. And so it’s the story you know, him telling his story about what’s happened. Well, not not actually a lot about what’s happened since. It’s mostly the story up to that point and how he got diagnosed and how he struggled with it and started drinking and was in denial and tried to hide it from everybody for years and eventually just had to accept it and figure out what he was going to do with the rest of his life, you know.

[00:38:55] Cameron: But yeah, no, it’s, it’s interesting. Well done. Doesn’t, you know, it doesn’t go on too long after [00:39:00] the Parkinson’s diagnosis has settled in. Interestingly though, like I watched the Val Kilmer documentary too, a while back because I was interested in his story also struck down with a disease sort of at the height of his success.

[00:39:13] Cameron: The, the, You know, with the Michael J. Fox one, there’s no other talking heads, you know, unlike the Arnold, the Arnold series that came out, there’s like directors and co stars and people talking about him, nobody in the Michael J. Fox one, there’s like, not even his wife, Tracy Pollan, doesn’t talk to camera, there’s nobody else talking to camera, I would have expected a lot of people talking about him and how great he was and what a, what a stand up bloke he is, fighting through the disease, none of that, it’s just, him in the full throes of Parkinson’s sort of telling what it’s like, telling his story, what it’s like to live with Parkinson’s and trying to bring awareness to Parkinson’s, which I think is the, sort of the point of the documentary and the point of his life, how, how Parkinson’s can affect people when they’re quite young.

[00:39:59] Cameron: It’s not [00:40:00] just an old person disease and how the struggle it is to live with it.

[00:40:04] Tony: Yeah, I’ll, I’ll check it out because it, it, I mean, I’ve got a friend with Parkinson’s who’s nearly 70 now. And it is a struggle. And I remember when he con, when he contracted it, it was seen as being a 10 year death sentence that generally they didn’t survive much longer than that. He, I think he’s gone a little bit longer than that, but yeah, it’s a struggle.

[00:40:24] Tony: It’s it’s kind of sad to

[00:40:25] Tony: watch someone deteriorate like that.

[00:40:27] Cameron: Yeah, like many diseases, it’s it’s unfair,

[00:40:32] Tony: Yeah. Exactly. Although, I mean, the technology is getting better and the medicine’s getting better. He had a brain operation, which has largely taken all of the tics and shakes out of his body, which is good. And manages it with drugs and things as well, but he’s

[00:40:46] Tony: deteriorated a fair bit. Yeah. Yeah,

[00:40:49] Cameron: I think Michael J. Fox with his foundation has raised over 2 billion for Parkinson’s research. So, you know, it’s a good sort of second innings for him. He’s really[00:41:00]made an impact with the credit that he has as a celebrity to go and raise money for the cause.

[00:41:08] Tony: Really?

[00:41:10] Cameron: And he’s, I don’t know if he’s getting any benefit out of that research.

[00:41:12] Cameron: It’s probably gonna come together if if at all, when it’s too late for him, but hopefully it’ll change the course of other people’s lives. Have you heard about the new cancer drug that’s just gone into human trials in the U. S.? AOH 1996.

[00:41:25] Tony: No, I haven’t.

[00:41:27] Cameron: That’s tentatively Pretty exciting.

[00:41:29] Cameron: there’s this cancer research institution in the U. S. called City of Hope that identified this protein called PCNA, which exists in all sells, it plays a role in DNA replication in the nucleus, but they identified about 10 years ago that there are certain signals in the PCNA in cancerous sells, And they’ve developed a drug which they say can target [00:42:00] sells that have the malformed version, if you like, of PCNA that only exists in cancer sells.

[00:42:07] Cameron: And in their animal trials, it could successfully target and wipe out cancerous sells without damaging any healthy sells in all different forms of cancer. And so they’ve just gone into phase one human trials. Now there’s a lot of drugs that get into phase one, phase two human trials, and that’s when they fall over.

[00:42:27] Cameron: That’s when you really see if the rubber meets the road. But this is a brand new approach. And on the surface of it, it sounds quite interesting and exciting. Don’t want to get your hopes up with these things, but yeah, I’ve been paying attention to that. And the other big thing that’s been obsessing me is LK99.

[00:42:42] Cameron: Tony, are you obsessed with LK99?

[00:42:44] Tony: Not yet.

[00:42:44] Cameron: Oh man, this is, oh, this has been a circus. About a week ago, about a week ago, some Korean scientists published that they had discovered a material, LK99, which has the properties of a [00:43:00] superconductor, but at room temperature,

[00:43:02] Tony: Ooh, okay.

[00:43:03] Cameron: and they published how to make it. And it’s a, it’s a copper lead lattice material.

[00:43:10] Cameron: And so immediately the internet exploded and people were either super excited about it or calling bullshit on it. And sometimes saying both in rapid succession. And then people started replicating it. And then people started creating fake replication videos and other people said they couldn’t replicate it.

[00:43:29] Cameron: And so it’s been a crazy week of people trying to replicate these results coming out of Korea. I mean, the, the. Implications of room temperature superconductor, if we could ever build one, are massive,

[00:43:45] Tony: Yeah.

[00:43:46] Cameron: change the world. So it’s kind of been crazy, like just, I, I’ve been waking up every day and just going to Reddit and Twitter and seeing what the latest results are, what, who’s done what overnight to either call [00:44:00] bullshit on it or to, to replicate it.

[00:44:02] Tony: I knew there was someone using Twitter out there

[00:44:04] Tony: still.

[00:44:04] Cameron: or X. using X, yeah.

[00:44:08] Tony: time I go past something, like, it’s like in the shop window, there’ll be a brand, brand X. I just laugh because it’s like, it’s such a dumb name for a, for a brand. It just gets used over and over again. But speaking of replicating results, did you see the cold fusion? The announcement that they, that they had created energy with a cold fusion reactor was replicated this week as well.

[00:44:29] Cameron: No, I went actually, I went to check up on that because the initial one late last year was done by Lawrence Livermore. And I went to see if they had done any updates just a couple of days ago and they hadn’t. It was replicated. Where do you remember?

[00:44:44] Tony: I can’t, sorry. It may have been in the Fin Review.

[00:44:47] Cameron: Wow.

[00:44:48] Tony: yeah, somewhere I was reading on over the weekend, which is probably the Fin Review.

[00:44:52] Cameron: That is super exciting. Oh, here we go. CBS News, 48 minutes ago, second [00:45:00] nuclear fusion breakthrough could pave way for future. Wow. Yeah. I mean, that’s, I mean, I was to Sammartino and I were doing the futuristic podcast yesterday and I was saying like all this stuff, I just feel like humanity’s leveled up.

[00:45:13] Cameron: in the last 12 months. We’ve got some form of functional AI, breakthroughs in cold fusion, cancer drug now, you know, looks like maybe some form of room temperature superconductor. Some of these like holy grails that we’ve been struggling with for 50 years all of a sudden are showing really promising results all of a sudden.

[00:45:35] Cameron: Like, like we just leveled up in the game or somebody flipped a switch. Maybe it is the aliens, maybe the aliens. have given us all of this stuff. Did you what, did you read up on the congressional hearings about aliens? You’ve been

[00:45:48] Tony: A

[00:45:49] Cameron: that apart from Joe Rogan?

[00:45:51] Tony: yeah, a little bit. It’s crazy, isn’t it? It’s the, they’re even, they’re even,

[00:45:56] Tony: you know, taking the time to go through it. It’s

[00:45:57] Tony: just.

[00:45:58] Cameron: But there are these videos, [00:46:00] like, Air Force keeps taking these videos of objects that are exhibiting unexplainable behavior. Everyone’s been going, well, what the hell’s going on? And they go, we don’t know. I want to know what’s going on! I mean… As I said to my boys on the weekend, like, I just fundamentally don’t believe that we’re being visited by alien civilizations, for, not that they don’t exist somewhere in the universe, but, as you and I have talked about, Dark Forest Hypothesis, or, you know, Fermi’s Paradox, or whatever it is, I just, I find, you would, you know, it’s an extraordinary claim to say that there are intelligent alien species just happening to visit here on and off over the last 50 years and not make their presence known.

[00:46:40] Cameron: But, it is.

[00:46:41] Tony: Except to Navy pilots, with bad cameras.

[00:46:45] Cameron: Yeah. And

[00:46:46] Tony: Quick, turn off the high def camera, I think I see a UFO.

[00:46:49] Tony: Get the grainy one out.

[00:46:50] Cameron: I don’t think they have, you know, Canon 5Ds in the cockpits of fighter jets,

[00:46:55] Tony: They do, they’re friggin spying on people.

[00:46:57] Cameron: They

[00:46:58] Tony: They can spot a needle in a

[00:46:59] Tony: [00:47:00] haystack from ten miles up.

[00:47:01] Cameron: But there is some like that, that, that is footage of the, we should be able to explain that footage. If it’s a glitch in the system or whatever it is, there should be explainable.

[00:47:10] Tony: Not everything’s explainable from grainy footage, but to jump to the conclusion that it’s

[00:47:15] Tony: extraterrestrial

[00:47:16] Cameron: Yes. I mean that I find a bit of a stretch. I do want an explanation for it, but I’m not jumping to the conclusion that it’s Extraterrestrials. No, but I don’t know what it is. I don’t know what the, I don’t know what the rational explanation for all those videos is, and I would love it if somebody came up with one.

[00:47:33] Cameron: I it doesn’t have, but it doesn’t have to be one, though, does it?

[00:47:36] Cameron: Well, yeah, there has to be an explanation for everything.

[00:47:39] Tony: Well, sorry, we don’t need to know what that explanation is.

[00:47:41] Cameron: Yes, I do. What the hell am I here for? If it’s not, what’s the point of life if it’s not to have… I want to know what those things are. I want to know what happened to Michael Jackson’s nose. I know that one.

[00:47:53] Cameron: I want to know if, you know, Elvis and Hitler are really living in Argentina under pseudonyms.

[00:47:59] Cameron: You know, I [00:48:00] want answers to the big

[00:48:01] Tony: You know, You need to go and

[00:48:02] Tony: work for the National Enquirer then, they know, they know all the

[00:48:04] Tony: answers.

[00:48:05] Cameron: Who really killed JFK? the big questions.

[00:48:07] Tony: did you see that was stopped from being released by Biden recently?

[00:48:12] Cameron: What was stopped from being released?

[00:48:13] Tony: So, it’s 40 years since JFK was assassinated, or it’s coming up to be 40 years this year, and no, that’s more than that, 60, 60 years, sorry, 60,

[00:48:24] Cameron: 70.

[00:48:26] Tony: 70, no, 63, yeah, so 60 years, this, I should know, I was born then,

[00:48:30] Cameron: Oh yeah. All right. Yeah.

[00:48:32] Tony: apparently the, the, the records were meant to be open 60 years, after the death and they, Biden’s come out and said nothing to see here, I’m keeping them closed.

[00:48:42] Tony: So Oliver Stone posted a big diatribe about it on Facebook, calling

[00:48:47] Tony: Biden out.

[00:48:48] Cameron: Good for Oliver Stone. Yeah. Well, I thought that was supposed to be released when Trump was in office.

[00:48:54] Tony: Well, maybe.

[00:48:54] Cameron: Anyway. Yeah. People call me crazy, but I’ve just read [00:49:00] too much about that. I just, you know, there’s too many people that wanted Kennedy. Both of Kennedy’s

[00:49:05] Tony: Yeah.

[00:49:06] Cameron: Lyndon Jonson hated them What’s His Face, the head of the FBI hated them, the Mafia hated them, then the CIA hated them because they were going to gut the CIA.

[00:49:16] Cameron: Just too many people hated them and wanted them dead. It’s for it to be just a coincidence, I don’t know. It could be, but I don’t know.

[00:49:24] Tony: Better be Marilyn Monroe.

[00:49:25] Cameron: Who killed them?

[00:49:26] Tony: JFK.

[00:49:28] Cameron: Didn’t she die before JFK.

[00:49:30] Tony: Oh, did she? Okay.

[00:49:31] Cameron: I don’t know. All right,

[00:49:32] Cameron: that’s the show for this week. Thank you, Tony.

[00:49:35] Tony: Thanks, Cam. 

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