QAV 750 — Hello World

QAV 750 Club

[00:00:00] CR: Uh, wel­come to QAV. Wel­come back, TK. How

[00:00:14] TK: Yes, thank you. Good. Thank you to, to your co host while I was away. I lis­tened to it in the car on the way back

[00:00:21] TK: from Wag­ga.

[00:00:23] TK: Very good.

[00:00:23] CR: on. Yes. Um, how was your golf­ing tour­na­ment?

[00:00:28] TK: fan­tas­tic.

[00:00:29] CR: You

[00:00:30] TK: Yeah, real­ly good. Actu­al­ly fin­ished up play­ing about six rounds in the last week, so it’s been great. Uh, it start­ed off bad­ly, um, that Roy­al Mel­bourne was a real­ly hot day, real­ly hot. I sent a card out to, to, um, The guy, I’m play­ing with an old­er guy, he was about to pull out after about 10 holes, I sent a card out to him,

[00:00:52] CR: Oh,

[00:00:52] TK: but it was hot, windy, did­n’t play well.

[00:00:54] TK: Sec­ond day played real­ly well, that was it, oh, not real­ly well, played well, at um, Penin­su­la Kingswood North, which is I think prob­a­bly des­tined to be one of the best cours­es in Aus­tralia if it’s not already. And then we had our char­i­ty day on the third day and we came fifth this year. Last year Rud­dy and I won it,

[00:01:12] CR: yeah.

[00:01:13] TK: but he did­n’t turn

[00:01:14] TK: up this year so

[00:01:15] CR: Rod­dy did­n’t turn up

[00:01:18] TK: obvi­ous­ly, obvi­ous­ly Rud­dy’s the bet­ter golfer

[00:01:20] TK: between us. He car­ries

[00:01:22] TK: me.

[00:01:23] CR: what did what did Rod­dy have

[00:01:24] CR: to do? He had some­thing bet­ter on, had a

[00:01:27] TK: he did­n’t. He’s, he’s sav­ing up to buy a car. So he did­n’t want to spend the mon­ey on the golf trip.

[00:01:32] CR: Right.

[00:01:33] TK: Yeah. Which is fine. So, um, yeah, I had three good days away with the group and then went to Cape Shang for a cou­ple of days and played golf there again. And then went to Wag­ga and played golf there again with Rud­dy.

[00:01:45] CR: Wow,

[00:01:47] TK: Good fun.

[00:01:48] CR: that’s great.

[00:01:50] TK: And now I’m back in Syd­ney pack­ing. So, um, it’s busy.

[00:01:54] CR: Tell peo­ple why you’re pack­ing

[00:01:57] TK: Well, obvi­ous­ly I’m mov­ing. I’m going down to, going down to live at Cape Schanck next year from ear­ly Jan­u­ary.

[00:02:04] CR: Wow.

[00:02:05] TK: We’re, um, yeah, we’ve decid­ed not to sell the Sky Palace. It’s, it’s, the mar­ket’s turned down in Syd­ney, so we’re going to rent it out for a while and, and test retire­ment by liv­ing at Cape Schanck for at least

[00:02:17] TK: a year.

[00:02:20] CR: Well, the Mel­bourne crew expects you to turn up to all of their events. When you’re down there,

[00:02:26] TK: I can, I can, well, I’d like to go along to at least some, yeah. I’m sort of learn­ing how remote Cape Schanck is from places,

[00:02:33] TK: but I’m hap­py to

[00:02:34] CR: you’re learn­ing.

[00:02:35] TK: for an

[00:02:36] TK: event. Yeah, well I’m not going to go down there and stay there.

[00:02:38] CR: 20 years.

[00:02:40] TK: Yeah,

[00:02:40] TK: true, but um, I have a, so the trip before or this last trip, any­way, I had lots of up and backs.

[00:02:46] TK: I was up and back to Mel­bourne every day,

[00:02:48] TK: going to var­i­ous

[00:02:49] TK: func­tions, and it got tir­ing after a

[00:02:51] TK: while. Because it’s an hour and a

[00:02:52] CR: two hours. Yeah. Okay. And a half, depend­ing on the

[00:02:55] TK: two hours with Mel­bourne traf­fic,

[00:02:57] CR: yeah,

[00:02:57] TK: yeah, but any­way, I’ll prob­a­bly find a

[00:02:59] TK: short­cut after I get used to it.

[00:03:02] CR: Well, maybe you can meet them halfway. Maybe they can meet you in Frankston or some­thing. Is that halfway?

[00:03:08] TK: well they do let the um, the board­room at the Nation­al Golf Club be used, so they can come down there.

[00:03:12] CR: There you go. Per­fect.

[00:03:14] TK: Hmm, and

[00:03:15] CR: Well, let’s get into it.

[00:03:17] CR: Get into it, TK. Um,

[00:03:20] CR: ANZ, your favourite CEO.

[00:03:24] CR: Um, he’s, he’s, he’s read the writ­ing on the wall. CEOs are get­ting assas­si­nat­ed. He’s going, you know what? Might be time to, Pull up stumps.

[00:03:34] TK: What you say is my favourite CEO.

[00:03:36] CR: I don’t know.

[00:03:38] TK: Okay,

[00:03:38] CR: Yeah. Don’t know. Shane Elliott.

[00:03:40] TK: I mean I don’t, I don’t mind

[00:03:41] TK: him. I met him once at a Christ­mas

[00:03:43] TK: par­ty. Nice guy. Ah!

[00:03:49] CR: who was the last guy you would tell you met at the Christ­mas par­ty? Alan Jones. Was he with Alan Jones? Was it that

[00:03:54] TK: No, that was­n’t a Christ­mas par­ty, that was at a, um, a rac­ing func­tion at, um,

[00:03:59] TK: David Hayes house.

[00:04:00] CR: Okay.

[00:04:02] TK: No, no, dif­fer­ent. No,

[00:04:03] TK: he’s a nice guy.

[00:04:04] CR: I read in the finan­cial review today that, um, Investors aren’t too hap­py with his lega­cy. He, uh, the per­for­mance of the ANZ shares has­n’t real­ly been quite, uh, as good as the oth­er banks. It says ANZ shares may be up around 16 per­cent in the last year, but his rivals have risen more sharply.

[00:04:29] CR: Uh, what are your thoughts on ANZ’s per­for­mance? You’ve owned them on and off. Do you own them at

[00:04:34] TK: I own them. I own them at the moment, yeah. I’ll declare that. Oh, 16 per­cent plus a good div­i­dend yield? Which I think is about 8 per­cent ful­ly frank. Maybe it’s 9 per­cent grossed up. Yeah, it’s pret­ty good. I’m hap­py with them.

[00:04:47] CR: I own them As well. As it turns out, they’re the only bank I

[00:04:51] TK: There you

[00:04:51] TK: go. Yeah.

[00:04:53] CR: Yeah, all right. So

[00:04:54] TK: But the share price was down on the day of the announce­ment of the new guy. Por­tuguese banker, um,

[00:05:01] TK: Nuno

[00:05:02] TK: Matos, who I don’t know. I

[00:05:04] CR: Chan­ti­cleer

[00:05:04] TK: to have some friends in.

[00:05:06] CR: had some unkind things to say about him. Did you see that?

[00:05:09] TK: No, no I

[00:05:10] TK: did­n’t.

[00:05:11] CR: They were basi­cal­ly say­ing he was­n’t good enough to get the top job at HSBC. So he’s end­ed up at ANZ or some­thing to that

[00:05:17] TK: Well that, that thought crossed my mind too, but um, it’s not uncom­mon for the inter­nal can­di­date who missed out to, to move. Um, they could still be a qual­i­ty per­son. Uh, so I thought that was a lit­tle bit unkind. That’s gen­er­al­ly you won’t, look, I don’t know how many, what per­cent­age, but a lot of CEOs are in that boat.

[00:05:35] TK: They, they’ve missed out on the top job, they’re get­ting old, they know they can’t hang around and wait for anoth­er try. So they, Get tapped on the shoul­der and go some­where else. But what it does mean is the two inter­nal can­di­dates at ANZ who did­n’t get the top job will prob­a­bly do the same thing. So, that can be good and bad if Nuno has a good team under him and he likes them and he thinks they’ll work well, he’ll poach them and bring them in, which will be a big cul­tur­al change for ANZ.

[00:06:04] TK: But, um, you know, he may not have that team under him, so, um, we’ll see. Uh, but, but what it does mean is that, you know, the key roles at ANZ are prob­a­bly all going to turn over in the next sort of 6 to 12 months, um, which can be good or bad. I don’t know this per­son. I do know some­one in, from, uh, My friend’s cir­cle in Toron­to called Mat­tos, she was Por­tuguese as well,

[00:06:28] TK: so she may be relat­ed.

[00:06:29] TK: I should reach out to her and see if she’s got any,

[00:06:32] TK: like, you know, what does he do at the Christ­mas par­ty every year? Um, yeah. But, uh, any­way, um, but I do have a cou­ple of com­ments to make. The shares are down 3. 6 per­cent on the news. So, um, he’s, he’s wiped, uh, I don’t know how many mil­lions, if not hun­dreds of mil­lions of dol­lars off the share price.

[00:06:49] TK: So peo­ple are vot­ing with their feet, I guess, but it may bounce back. We’ll see. Um, he’s say­ing he’s hap­py with the strat­e­gy and it’s up to him to imple­ment it, which I think is prob­a­bly appro­pri­ate with ANZ because Shane Elliott is leav­ing with a few unfin­ished. And the two big ones are inte­grat­ing the Sun­corp merg­ers or acqui­si­tions.

[00:07:13] TK: So ANZ took about two years to gain all the reg­u­la­to­ry approvals to buy the bank­ing part of Sun­corp. The insur­ance part still remains sep­a­rate­ly list­ed. But it’s going to be a fair­ly big job. Merg­ing that into ANZ and, you know, he, he did­n’t sign up, well, he signed up for it, but he did­n’t, um, set the syn­er­gy tar­gets, but he’ll be held account­able for those.

[00:07:40] TK: So that, that, uh, will be an issue for him, the new CEO. Um, but it also, It also begs the ques­tion, the, the scut­tle­butt was that ANZ were los­ing mar­ket share in the mort­gage mar­ket. And so Shane Elliott looked around and said, well, if I buy Sun­cor Bank, I can get back to where I was by com­bin­ing their.

[00:08:04] TK: Mort­gage share with mine. Um, and that’s, you know, that’s not a bad strat­e­gy, but if there was under­ly­ing prob­lems with the ANZ mort­gages, uh, and they were los­ing share with their mar­ket­ing for what­ev­er rea­son, pric­ing, or ser­vice, or con­ve­nience, or prod­uct fea­tures, then buy­ing Sun­corp does­n’t fix it. And so, Nuno Matos is going to have to not only inte­grate Sun­corp, but I’ll prob­a­bly fix up the mort­gage busi­ness today in Zed.

[00:08:32] TK: And don’t for­get the big four banks in Aus­tralia are basi­cal­ly build­ing soci­eties now. That’s all I do is issue mort­gages, um, and cred­it cards and per­son­al loans. But, you know, gone are the days where they had insur­ance and wealth man­age­ment and funds man­age­ment and all that kind of stuff. So, um, Mort­gages are impor­tant.

[00:08:48] TK: So that’s his first issue. The sec­ond issue that he signed up for is to migrate as much as pos­si­ble of the ANZ cus­tomer base across to their new IT plat­form, which I think is called ANZ Plus or ANZ One. ANZ I think, which, um, his 2IC was devel­op­ing and it’s been very late to get to mar­ket. And there are still ques­tions over whether peo­ple will actu­al­ly want to tran­si­tion onto it.

[00:09:14] TK: So if it works, you’ll be a hero. If it does­n’t work, you’ll be a vil­lain. But again, he’s inher­it­ing a very preg­nant IT project and, uh, he did­n’t have a hand in the, in the con­cep­tion. So, um, he’s got, for some­one who’s com­ing in, he’s got a lot of. He’s an inter­na­tion­al can­di­date and Aus­tralian banks have had dia­bol­i­cal attempts at expand­ing over­seas.

[00:09:47] TK: And, you know, the most recent notable exam­ple is his pre­de­ces­sor, once removed, um, Mike Smith, who I think may also have come from HSBC, but cer­tain­ly came from one of the big Eng­lish banks that oper­at­ed in Asia and then set up, set about try­ing to expand ANZ into Asia and Shane Elliot­t’s job was to dis­man­tle that and bring it all back on shore.

[00:10:11] TK: So I’m not sure why they’ve gone with an inter­na­tion­al can­di­date if they don’t want to expand over­seas. Um, it’s a, it’s an inter­est­ing choice, but if he does start to make nois­es about going over­seas, I think that, that for me would be a red flag time to

[00:10:26] TK: sell. Um, it’s been tried before and

[00:10:30] TK: Yeah,

[00:10:30] CR: that would be a, that’d be

[00:10:31] CR: enough for you to. Pull out.

[00:10:34] TK: I think so. Um, I’ve seen it, seen that movie too many times before with Mabb going over­seas, with A& Z going over­seas twice. They twice tried in my sort of time to expand over­seas and it has­n’t worked. Um, so the last point I want­ed to make is that in hav­ing a turnover of CEO and poten­tial­ly of the two key play­ers, play­ers under him in the busi­ness puts a lot of empha­sis back on the board so typ­i­cal­ly they won’t retire a chair at the same time as they do a CEO tran­si­tion and Paul O’Sul­li­van’s been around for a long time noth­ing against Paul O’Sul­li­van in fact I knew him at Shell he comes out of Shell did­n’t know him well but and he left soon after I joined but um uh he’s a very com­pe­tent busi­ness per­son uh but the ANZ board It does­n’t have any bankers on it.

[00:11:31] TK: Paul O’Sul­li­van comes out of the oil indus­try, and then I think he was CEO of Optus, um, and all of the oth­er mem­bers, uh, I think, don’t have any bank­ing expe­ri­ence. So you’ve got a new CEO from over­seas, poten­tial­ly fac­ing the loss of their two lieu­tenants here. Uh, and a board that does­n’t have any bank­ing expe­ri­ence.

[00:11:49] TK: So, it’s um, it’ll be inter­est­ing times for ANZ going for­ward. That, that may also have con­tributed to the sell off, um, when the deci­sion was announced about, uh, Nuno tak­ing over. I hope I’m pro­nounc­ing his name prop­er­ly. Nuno, Nano, Nuno,

[00:12:04] TK: Nuno.

[00:12:05] TK: I don’t know, but, um,

[00:12:06] CR: Well, I know Nuno, Nuno Betan­court, do you know Nuno Betan­court?

[00:12:13] TK: Not per­son­al­ly, no.

[00:12:14] CR: You know who he is?

[00:12:15] TK: No.

[00:12:19] CR: He is the lead gui­tarist of the, uh, met­al band, uh, Xtreme, Whole­heart­ed, More Than Words. Remem­ber More Than Words? 90s? Acoustic? Ah, okay. Well, he was mar­ried to Susie DiMarchi from The Baby Ani­mals

[00:12:35] TK: now I know who

[00:12:35] TK: it is. Yep.

[00:12:37] CR: But he’s an amaz­ing gui­tarist. Um, extreme. Still going, actu­al­ly. They’ve got a new album out. It’s real­ly good. You should check it out. Got a crazy met­al, uh, track off of it. I can’t remem­ber what it’s called, but there’s like this crazy gui­tar solo that Nuno does. But any­way, he pro­nounces it Nuno. I don’t know

[00:12:55] TK: No, no. Oh, thank

[00:12:57] TK: you. Yeah.

[00:12:58] CR: this is all I know

[00:12:59] TK: Yeah, so ANZ is going to be inter­est­ing in the next six months. We’ll have to watch the space. It may, it’s fall­en off. It may, it’s still above its cell, but It may,

[00:13:07] TK: drift down

[00:13:08] CR: And he’s not leav­ing in a hur­ry, he’s not leav­ing till July, I think,

[00:13:11] CR: Elliot, right? So, it’s not a, there’s no rush here. He’s got six months to sta­bilise it.

[00:13:18] TK: Yeah, but that’s also, I mean, I don’t know when UNO’s meant to start, but if, you know, that’s not a great, I mean, it’s not a thing you’d want to have hap­pen to your­self, is it? I’m tak­ing over, but the old, the old per­son I’m tak­ing over from is going to be there for six months. It’s um, yeah, I’d be sort of pro­gres­sive­ly mov­ing them fur­ther and fur­ther away from head office into small­er and

[00:13:39] TK: small­er offices.

[00:13:43] CR: Well, I’m assum­ing Nuno’s got a job and he’s got­ta wrap that job up before he comes and takes this job.

[00:13:48] TK: Yeah, did­n’t say when he was

[00:13:50] TK: start­ing.

[00:13:52] CR: any­way. Um, any more on A and Z? We wan­na talk about ABA. So, I did a

[00:13:58] TK: talk about ABA.

[00:13:59] CR: Paul Pork in your absence on ABA

[00:14:01] CR: last week. Um, they briefed just as I was set­ting up for the show today, they became a three point sell from a moment and then they inched up a cent or some­thing and got above it.

[00:14:13] CR: But, uh, yeah, what, what are your thoughts on the ABA MyS­tate tie up?

[00:14:19] TK: So again, I own shares in ABA, um, not because of QAV, but because, uh, I was offered, um, uh, an allo­ca­tion in the cap­i­tal rais­ing I did back in August to buy the finance com­pa­ny you spoke about last week. Uh, and it was known then that they were merg­ing with my estate and Alex Hayes com­pa­ny, my stock­bro­ker, Ord Minettes was the under­writer and, and, um, also gets fees from merg­ing the two com­pa­nies.

[00:14:46] TK: So he was keen for me to take some shares. I don’t know much. I, um, I just have a lit­tle bit of, uh, Oswald, and then it became a, uh, came onto the buy list, so I was hap­py with that, hap­py to keep them. Um, I just want­ed to, um, I’ll give a quick back­ground to it, but I just want­ed to talk about my approach to these kinds of things, rather than nec­es­sar­i­ly much about the stocks you spoke about last week.

[00:15:10] TK: Um, what can I say? Uh, I’ve got some notes here from Ord Minette, so I’ll flag that. Uh, as you said last week, was­n’t a great day. Result for Auswide this year, MPAT was down 60 odd per­cent, um, large­ly due to net inter­est mar­gin dete­ri­o­ra­tion of 46 basis points. So lots of issues for them. So I can see why they’re keen to merge and that’s not unlike­ly.

[00:15:39] TK: Unusu­al in the small bank­ing state and Auswide, I’m not sure about my state, but Auswide and a whole slew of oth­er Queens­land build­ing soci­eties list­ed and became banks back in prob­a­bly the 90s. I remem­ber liv­ing in Mack­ay at the time and get­ting a phone call from my cousin who ran one of them and he said, go and open a bank.

[00:16:01] TK: 10 sav­ings account in every build­ing soci­ety in Queens­land, up and down the state. There was Mack­ay Per­ma­nent, there was The Rock, there was Auswide, there was four or five of them. He said we’re all going to list and you’ll get shares in the issue and we’ll all do well. So that worked out well for me. This is a lega­cy one of those, Auswide.

[00:16:21] TK: This was the old Wide Bay Capri­cor­nia. Build­ing Soci­ety. But if you think about Build­ing Soci­eties, they still have start­ed off life almost as a qua­si co op. They exist, they’ve been found­ed by the peo­ple in the local area to facil­i­tate lend­ing. And they kind of grow from there, become Build­ing Soci­eties and then become banks.

[00:16:41] TK: But they’re up against stiff com­pe­ti­tion from the large banks and also an unlev­el play­ing field from. The rules around, the DAPRA set around hold­ing more cap­i­tal because you’re more like­ly to go bust. And, um, hold­ing more cap­i­tal means that you’re finan­cial­ly more secure if you do go broke. Um, but it means that they need inter­est mar­gin.

[00:17:05] TK: goes up because they’ve got to hold more cash, which isn’t cash or cash equiv­a­lents, which isn’t as pro­duc­tive as loan­ing it out to peo­ple. So, um, that’s buy the buy, but that’s what hap­pens to small banks. Uh, the MyS­tate result, which isn’t on the buy list, uh, QAV scores only about 0. 03, uh, was bet­ter. So, uh, MyS­tate, I’m just look­ing up their results, uh, their, Home lend­ing was up 2%.

[00:17:33] TK: They had 14, 000 new to bank cus­tomers in the last year. Oper­at­ing costs were down 1. 6%. Net prof­it was down 8. 3%. But their cap­i­tal ratio was up. Their div­i­dend yield was sta­ble. Their net inter­est mar­gin was sta­ble. And they also have a trustee ser­vices busi­ness, which did well for them. So, my state isn’t a bad Bank to merge with.

[00:18:01] TK: My state is a Tas­man­ian bank and so even though these banks often do still have mort­gages in dif­fer­ent states because they do online lend­ing and they often, they some­times open up one branch in a dif­fer­ent state to get busi­ness, uh, but, um, uh, they’re not big in Queens­land and AusWide’s not big in Tas­ma­nia, so it does, it’s a good syn­er­gy.

[00:18:24] TK: Um, and, Just try­ing to find the ben­e­fits. They’re talk­ing about there being 20 to 25 mil­lion dol­lars of syn­er­gy ben­e­fits in the merge, in the merg­er. So, um, that’s mate­r­i­al for these, these small kinds of banks. Uh, one thing I, I did won­der whether they had account­ed for was, are they going to incur more trav­el costs if one’s based in Tas­ma­nia and one’s based in Queens­land.

[00:18:50] TK: They’re not like they’re, they’re not kind of side by side. So there might be some costs they haven’t quite tak­en into account. But any­way, they, they pro­pose syn­er­gies. Uh, the deal. Um, and this is part of what I do when I look at these merg­ers and assess­ing whether I’m a buy­er or a sell­er or a hold­er. Um, I look at what they say that will hap­pen in a deal.

[00:19:10] TK: So the deal is the pro­posed merg­er sees Auswide share­hold­ers receiv­ing 1. 112 new MyS­tate shares per Auswide share, uh, imply­ing that, um, MyS­tate has the major­i­ty own­er­ship of the new bank, 65. 9%, um, It’s, they’re say­ing that the syn­er­gies will come through, but not until 2026, because they do have merg­er costs to absorb in 2025.

[00:19:39] TK: Um, and they go on to talk about them being high qual­i­ty com­pli­men­ta­ry banks. So it does­n’t, it seems like to be a, it’s, it’s kind of these deals have to be done for small banks, but it does seem like it’s a good, a good part­ner­ship arrange­ment. Um, so I’m, the way I treat these, these kinds of deals is I’m a hold­er.

[00:20:00] TK: And I’ll just trade using three point trend lines, um, through the deal. So if Auswide becomes a sell, I may sell. Um, when I bought into the cap­i­tal ris­ing, there was a small dis­count. I think it was about 3 or 4 per­cent to the Auswide price. And then there’s anoth­er dis­count, um, when the merg­er takes place.

[00:20:20] TK: So, uh, and then the, the, the. Banks were on a good yield. So I could sort of, um, go on with my eyes wide open, see that the merg­er was going to pro­duce syn­er­gies, but in just buy­ing my allo­ca­tion and the cap­i­tal rais­ing, I was pret­ty sure I was going to make dou­ble dig­it returns over the next sort of six to 12 months.

[00:20:39] TK: So it seemed like a good deal. Um, so I did, I did take some, uh, what else can I say? Uh, ABA is up 10 per­cent since I bought it. So, um, that’s good. Um, It’s had a 10 per­cent cap­i­tal gain and a 4 per­cent div­i­dend, I should say, so 14 per­cent plus frank­ing cred­it, so that’s good. Um, just been through the merg­er log­ic, which is some­thing I check if it’s a merg­er.

[00:21:03] TK: I’ll check the dis­count, bit like if some­thing’s in the takeover sit­u­a­tion. You know, if you’re not get­ting a dis­count to do this, then why do it? So that’s some­thing I’d look at. And then I, yeah, as I said, I’ll use my nor­mal sell mech­a­nisms for get­ting out at the right time. So, I just want­ed to take peo­ple through that because merg­ers hap­pen from time to time.

[00:21:23] TK: Um, often times there’s one stock on the buy list and one stock that does­n’t and, you know, my process for deal­ing with it

[00:21:29] TK: is, well, I just out­lined.

[00:21:32] CR: That’s good, thanks. I just, um, checked ABA in the Bret­ta­la­tor. It’s sell price has actu­al­ly dropped a cou­ple of cents, or sor­ry, gone up a cou­ple of cents since I ran it on the week­end. So it’s, is actu­al­ly below its sell price now. Cause it’s sell price is, I think, 4. 43 and it’s trad­ing at 4. 41. So we’ll see, uh, how that plays out by the time I get to look at it.

[00:21:58] CR: But, um, yeah, there you go.

[00:22:02] TK: I should also say one last thing I for­got to men­tion, the merg­er is being delayed. until Feb­ru­ary of next year. It was meant to be hap­pen­ing in Decem­ber. APRA is tak­ing longer than expect­ed to go over the num­bers. They don’t see any prob­lems in that. It’s hap­pened before with bank merg­ers and, um,

[00:22:19] TK: uh, but it is delayed.

[00:22:21] CR: Alright, well speak­ing of things that are delayed. I’m still try­ing to fig­ure out, uh, what the hell is going on with Boom Logis­tics on, in all of our port­fo­lios since their con­sol­i­da­tion. I reached out to Navarre at Navexa yes­ter­day, or over the week­end actu­al­ly, and told him I was still con­fused by it. Can you open up Navexa

[00:22:46] TK: Yeah,

[00:22:47] CR: have a look at the BOL hold­ing in the dum­my port­fo­lio?

[00:22:53] CR: Here’s an exam­ple. So Navexa have sort of an auto­mat­ed con­sol­i­da­tion, uh, process that they apply. So they’ve gone through, because I hold it in the dum­my in a light port­fo­lio and a cou­ple of oth­er places, maybe, and they’ve applied the reduc­tion in the num­ber of shares. But not real­ly adjust­ed the share price.

[00:23:26] CR: And I’m not exact­ly sure how to work this. So, I think in the dum­my one, I can’t remem­ber, I think I may have edit­ed the buy price. So it was, I think our buy price orig­i­nal­ly back in April was 0. 14. I adjust­ed it to 1. 40, but now it’s made it all look ridicu­lous.

[00:23:45] CR: I’ll com­pare this one to the light one, soon as I fig­ure out how to share this,

[00:23:51] CR: so, if I look at the chart here, you can see that April, when the buy hap­pens, the val­ue of it drops by like 90%. So, they processed this con­sol­i­da­tion, which reduced the num­ber of shares that we owned by, I guess, what, 90%? Um, but there was no, uh, adjust­ment to pric­ing or any­thing with that.

[00:24:21] CR: And of course, if this remains at 14 cents Uh, it does­n’t work because the cur­rent price is 1. 40, so then that is all hay­wire. If I show you the way they’ve, I haven’t touched the one in the light port­fo­lios, so, sim­i­lar sit­u­a­tion, they’ve processed the reduc­tion in the num­ber of shares, the price is still at 14 cents, but, uh, you know, the, the, I don’t know,

[00:24:55] TK: No, it just looks to me like the price has­n’t come through yet, so it could be still trad­ing on a deferred

[00:24:59] TK: basis.

[00:25:02] TK: So, they have,

[00:25:03] CR: says it’s 1. 40 up here.

[00:25:06] TK: Yeah, I’m see­ing that in Stock

[00:25:08] TK: Doc­tor too.

[00:25:10] CR: So I don’t know if I should, um, man­u­al­ly process a sell for the date of the con­sol­i­da­tion at the price it was pre con­sol­i­da­tion and then apply anoth­er buy post con­sol­i­da­tion at that price, but then it’s going to mess with all of my cap­i­tal

[00:25:34] TK: I would­n’t,

[00:25:35] CR: you know?

[00:25:36] TK: I’d be ask­ing Navarre to fix that for you. They’ve done half the job in the con­sol­i­da­tion, but not the full job.

[00:25:42] TK: So

[00:25:43] CR: Yeah, I did ask him and

[00:25:45] TK: I would­n’t,

[00:25:46] CR: he went,

[00:25:46] TK: I would­n’t change the buy price man­u­al­ly because it’ll, um,

[00:25:50] CR: Okay.

[00:25:50] TK: he’ll prob­a­bly do it. Yeah.

[00:25:53] CR: Right. So, um, when you’ve had these things hap­pen in the past, um, is there a process you go through or you just let them han­dle it?

[00:26:01] TK: No, let them han­dle it.

[00:26:03] CR: Okay. Well, I’ll

[00:26:05] TK: Yeah. They should be han­dling it.

[00:26:06] CR: I’ll put this back to 14 cents here and wor­ry about it lat­er. Yeah.

[00:26:11] TK: Yeah. Yeah. It’s sur­pris­ing the price has­n’t come through yet. So, It’s, so the price, the price is right on the screen on the, when you look up Boom Logis­tics. It’s just not com­ing through in the port­fo­lio for some rea­son.

[00:26:26] CR: Yeah.

[00:26:28] TK: that’s a bug.

[00:26:30] CR: Okay. I’ll wait for them to sort that out then.

[00:26:36] TK: Mm hmm.

[00:26:39] CR: Alright, what else, um, cou­ple of notes, uh, about the buy list this week, in the last cou­ple of weeks, uh, peo­ple may or may not have gath­ered. Alex, your daugh­ter, who nor­mal­ly does the buy list for us each week, is on vaca­tion. At a secret loca­tion, I won’t dis­cuss it so the fans don’t hunt it down, but um, I’ve been doing the buy list, and peo­ple may, I got an email from Daniel ask­ing why the man­u­al data sheet in the buy list has­n’t been updat­ed.

[00:27:06] CR: Okay, so,

[00:27:07] TK: Mm hmm.

[00:27:08] CR: Alex uses the man­u­al data sheet from Tony’s sys­tem, which I don’t use, because I’ve got it all hacked. Soft­ware

[00:27:14] CR: cod­ed. So there’s a sheet called cam code, which Alex uses, but then she man­u­al­ly updates all of her thing. I can’t be both­ered doing that. So my bylaws process just uses my soft­ware. So if you want to see the

[00:27:28] TK: You know, I had to, I had to down­load my own buy list today. And, uh, cause Alex Nor­by does my ver­sion and your ver­sion

[00:27:36] CR: yeah, okay. I, I, what are you, you’re not buy­ing any­thing though. So what do you care?

[00:27:40] TK: No, I’m doing a pulled pork.

[00:27:41] CR: Oh, I’m

[00:27:43] TK: I, and all

[00:27:44] TK: the, only half the data’s avail­able in

[00:27:46] TK: yours.

[00:27:47] CR: Well, no, it’s all there. You should have just told me. I’ve got it all. Could have just sent it to

[00:27:51] TK: Okay. Ha

[00:27:52] CR: Any­way, so for, sor­ry, I did­n’t, I did­n’t even

[00:27:55] CR: think you’d be using it for a poor pork. You’re right. So for peo­ple that are look­ing for the man­u­al, lat­est man­u­al data, while Alex is away, look at the CAM code sheet in the buy list.

[00:28:03] CR: That’s the one that I gen­er­ate, and it’s all soft­ware dri­ven, so you’ll see the cur­rent. Um, sen­ti­ment and the, the, the PE and the equi­ty and all of that kind of stuff that’s in there. If you’re look­ing for it. When Alex is back on deck, we’ll go back to the usu­al sys­tem that she uses. Uh, I should have

[00:28:25] TK: She got delayed.

[00:28:26] CR: that. Oh

[00:28:28] TK: been delayed in New Zealand for

[00:28:29] TK: a day. Yeah.

[00:28:30] CR: Try­ing to get back out.

[00:28:32] TK: Yeah, they had high winds or some­thing and they could­n’t fly, or the crew was late com­ing down from the North Island, so. But, yeah, New Zealand put her up in a hotel, so she was very chuffed.

[00:28:42] CR: Oh, that’s nice.

[00:28:43] TK: Yeah.

[00:28:45] CR: A cou­ple of things with the buy list though, this week and also today. So a lot of move­ment in the com­modi­ties sec­tion. Um, There was, there was a bunch of things this week when I checked the com­modi­ties that had changed. Um, Gold, AUD had become a buy, Coal Ther­mal had become a sell, Crude Oil had become a sell, Cop­per had become a buy, Alu­mini­um and Zinc were buys, Steel was a sell, LNG was a Josephine, Grain, Wheat and Lithi­um all Josephines.

[00:29:20] CR: But, um, I saw this thing in the Fin today that Chi­na’s had one of their con­fabs and they said they’re going to do more, uh, to boost their econ­o­my. And all of a sud­den every­one’s excit­ed about the Chi­nese econ­o­my. It was, you know, it was all going to end in tears yes­ter­day, but today every­one’s excit­ed about it again.

[00:29:41] CR: And I went and I read in the Fin that the com­mod­i­ty prices were all going up and I went and had a check of the com­modi­ties today. Um, and some of them are get­ting close to being a buy again. Iron ore is close to being a buy, not quite above its buy line, but it’s head­ing there. If it keeps going up in the next week or so, it might be a buy again.

[00:30:00] CR: Gold USD is a buy, uh, but, you know, I tend to use the Aus­tralian one. Do you use the USD one for any­thing? No.

[00:30:08] TK: No. Aus­tralian. I don’t think so. I think we were track­ing them both there for a

[00:30:12] TK: while, but I used the AUD.

[00:30:16] CR: Noth­ing else had changed, but a cou­ple of oth­er things were look­ing pos­i­tive, turn­ing around, so we might see some more com­modi­ties as a buy next week if the Chi­na news con­tin­ues to put some wind in the sails of com­modi­ties.

[00:30:33] TK: Good. I also read some­thing about Chi­na today that they’re, Think­ing about open­ing an anti monop­oly case against NVIDIA in the chip space, which sent NVIDIA share price down overnight.

[00:30:46] CR: An anti monop­oly case. Hmm. In what? The, um, world, um, what­ev­er it is.

[00:30:55] TK: AI graph­ics

[00:30:57] TK: chip, what­ev­er it is, AI chip

[00:30:58] TK: space, I sup­pose.

[00:31:00] CR: Yeah, no, I mean, they’re going to take it up with who? The World Trade Fed­er­a­tion or some­thing?

[00:31:05] TK: With, with Chi­na!

[00:31:08] TK: I don’t know, I can’t recall the arti­cle.

[00:31:11] CR: Chi­na’s going

[00:31:12] TK: signed up to any world? Are they, Are they,

[00:31:14] TK: even,

[00:31:15] CR: Yeah, yeah, they’re mem­bers

[00:31:16] TK: of any

[00:31:17] CR: Yeah, they’re mem­bers of all of them now, but every­one’s always com­plain­ing that they don’t abide by them, and they go, well, what are you going to do about it? Bite me, like Amer­i­ca. Um, all right, well, that’ll be inter­est­ing. NVIDIA do have a, sort of, an inter­est­ing, um, monop­oly, but, um,

[00:31:38] CR: Cou­ple of oth­er things, uh, shout out to a rel­a­tive­ly new mem­ber, Lind­say, sent me an email.

[00:31:44] TK: uh huh.

[00:31:45] CR: Fig­ured I’d just fol­low up after six or so months doing QAV now. I’ve tak­en my time learn­ing every­thing, and I’ve def­i­nite­ly learned a lot in regards to invest­ing in the stock mar­ket. I’ve got lim­it­ed expe­ri­ence with Excel, Stock Doc­tor, Stock­o­pe­dia, but I’m begin­ning to grasp how run­ning a down­load works, and I’m look­ing to have, It ful­ly nut­ted out over the Christ­mas break.

[00:32:08] CR: Giv­en my lim­it­ed expe­ri­ence with invest­ing and not real­ly know­ing what I’m doing, fol­low­ing the QAV method, I’ve had a 30. 13 per­cent return since May 1st, 2024. I

[00:32:20] TK: There, you’re all done, Lind­say. Mer­ry Christ­mas.

[00:32:22] CR: and a tes­ta­ment to how the QAV method works to invest­ing. My best per­form­ers have been FND, 75%, I was up 130 per­cent until yes­ter­day, sent me this email a week or so ago, yes, we all feel your pain with FND, Lind­say.

[00:32:39] CR: SGI up 78%. Every­thing else in my port­fo­lio is aver­age about 10 to 30% of that time. And my worst per­form­ing is MMS down 10%. Thanks, Lind­say. So con­grat­u­la­tions,

[00:32:52] TK: I own MMS.

[00:32:54] CR: That’s why it’s down.

[00:32:56] TK: Out of all those three, yeah. Although, um, yeah, well done, Lind­say. Thanks for shar­ing. SGI, I think is SG Fleet, from mem­o­ry. It’s under a takeover.

[00:33:04] TK: Offer.

[00:33:05] CR: Yeah, right?

[00:33:06] TK: be aware of that. Lind­say, don’t get caught if it gets

[00:33:09] TK: com­pul­so­ri­ly acquired.

[00:33:10] CR: Hmm. No, that’s great. Well, and the, the counter to that is Nick, uh, was post­ing on our, uh, Face­book chat, uh. room, and say­ing that his port­fo­lio has­n’t been doing well. He says he’s been doing QAV for a few years and has­n’t made an FY prof­it yet and has had a lot of, um, rule ones, but then said that he some­times does­n’t check his sell alerts for a cou­ple of weeks due to hav­ing a cou­ple of young babies and work­ing a lot and stuff like that.

[00:33:46] CR: So I said, yeah, that’s prob­a­bly not great. Not check­ing your sell alerts. He said that he’s had a lot. I think

[00:34:00] TK: I’ll set some alerts, Nick. And, um, thanks for the feed­back. Uh, I did see in the email you sent me, Cam, that there was, he had his own rule one as well. I think it was 10 per­cent below buy price, but when it went up, when the share price went above buy price, it became buy price. So that, I don’t know if that’s affect­ing

[00:34:20] TK: him at all.

[00:34:21] CR: that’s, I gath­er that’s some­thing he has imple­ment­ed, uh, more recent­ly because he was sick of see­ing shares go up, like F& D, go up a lot and then, you know, drop back and, and then you sell them. And this has hap­pened to me from time to time. Like you end up, like I think Myer was a clas­sic exam­ple a cou­ple of years ago, was, you know, Up like 60, 70 per­cent and then came back to being a rule one also.

[00:34:48] CR: No, I think I got out of it as a small prof­it when it hits 3PTL or some­thing. But, um, yeah,

[00:34:54] TK: can I say I’ve had, I’ve had tons of those. So it’s not, it’s not, uh,

[00:35:00] TK: it’s not usu­al, but it’s, it’s

[00:35:01] TK: not uncom­mon to see it hap­pen.

[00:35:04] CR: yeah. So he’s fudged his rule one rule. Um, and look, every­one is enti­tled to fudge

[00:35:13] TK: teach peo­ple.

[00:35:14] TK: Once you get com­fort­able with, with invest­ing Yeah.

[00:35:17] CR: Fudge away.

[00:35:19] TK: Fudge your, well, not fudge your way. Set your own

[00:35:21] TK: rules,

[00:35:21] CR: Yes. And then report

[00:35:23] TK: and

[00:35:23] TK: then share the results. Yeah.

[00:35:24] TK: exact­ly. Yeah.

[00:35:26] CR: But I do encour­age every­one to, I mean, you know, I, look, I know every­one’s busy, um, and has stuff going on, but check­ing your sell alerts is pret­ty impor­tant. Um, it only takes a cou­ple of things to get away from you to have a big impact. I mean, I think, I know I’ve had things slip past me on occa­sion, and I know you have.

[00:35:49] CR: I’ve had two, some­times things slip through the cracks, but two, and one thing won’t kill you, but if it hap­pens on a reg­u­lar basis, it can real­ly take the wind out of your sails. And, um, you know, I, the way I do it, peo­ple know if you’ve been lis­ten­ing for a while, I have a spread­sheet where I track every­thing and I just open it up like first thing in the morn­ing when I sit down on my com­put­er, I open up my spread­sheet, just have a quick check where things are at and if I need to do some­thing that day, I’ll do it.

[00:36:16] CR: And if not I don’t wor­ry about it usu­al­ly until maybe the end of the day. I will check again if I’ve got the time, but nor­mal­ly it’s just the first thing in the morn­ing. I have a quick check, takes me 10 sec­onds to look at it. And, um, that’s it. I don’t both­er after that. That just keeps me abreast of what’s hap­pen­ing.

[00:36:36] CR: But you need some form. And I think, actu­al­ly, this con­ver­sa­tion, I think, I don’t know if Nick start­ed it or some­body start­ed it, was about auto­mat­ed sell­ing. Whether or not many peo­ple use an auto­mat­ed, um, sell trig­ger. And I was say­ing that,

[00:36:51] TK: A

[00:36:51] TK: stop loss. Yep.

[00:36:53] CR: yeah, and I said that I don’t because I want to check things

[00:36:57] CR: before they sell because some­thing could go, we get ex div­i­dend, for exam­ple, and You have to fac­tor that in, et

[00:37:07] CR: cetera, et cetera.

[00:37:08] CR: So there’s a, there’s a few things that I want to man­u­al­ly check before I hit a sell order.

[00:37:15] TK: And you’ve also seen too with your Boom Logis­tics expe­ri­ence that some­times the machin­ery of port­fo­lio man­age­ment gets a bit

[00:37:24] TK: of sand in the cogs.

[00:37:26] TK: So yeah,

[00:37:27] CR: That too. And, and also, as I said, um, in the, in the chat group, you know, I have fudged things like, is it AS, ASL, um, Super­group, ASG. Yeah. From time to time, I mean,

[00:37:40] TK: sports,

[00:37:42] CR: I tend to fol­low the rules unless I don’t, um, but there will

[00:37:48] TK: the pirate way,

[00:37:50] CR: I’m wear­ing an eye­patch

[00:37:51] CR: today because I’ve got a swollen eye, it’s a long sto­ry, but I’m slow­ly com­plet­ing my full tran­si­tion to pirate mode.

[00:38:00] CR: Um, any­way, that’s the pirate QAV is, uh, you fudge things from time to time. If you give some, like, the way I have learned to do it, and I think you’ve,

[00:38:10] CR: you’ve, you’ve Um, sug­gest­ed this back in the ear­ly days, if I buy some­thing and with­in a day or two it drops through a three, it’s close to the three point sell line when I buy it and it drops a cou­ple of

[00:38:23] CR: cents and it goes below the three point sell line, quite often I’ll go, well, like I’ll give it a grace peri­od of a week or two to see what hap­pens.

[00:38:32] CR: If it keeps drop­ping, I’ll prob­a­bly sell it, but you know, I’m not, I don’t want to be too trig­ger fin­gery. If it’s just trad­ing with­in a mar­gin of, you know, a few cents here or there, and I bought it real­ly close to its sell line. So there are

[00:38:48] TK: Yeah.

[00:38:48] TK: nor­mal volatil­i­ty should­n’t be trig­ger­ing sells. You may, I mean, your buy­ing may have pushed the price up and that’s reset­tled again. So, um, you could be part of the volatil­i­ty and you don’t want to be

[00:39:01] TK: caus­ing your own sell once you exit the mar­ket from buy­ing. So

[00:39:04] CR: you been speak­ing to my cou­ples ther­a­pist? I’m part of the volatil­i­ty. Is that what you’re say­ing? It’s,

[00:39:10] TK: you have a, you have a cou­ple’s

[00:39:11] TK: ther­a­pist.

[00:39:12] CR: I’m caus­ing the volatil­i­ty.

[00:39:15] TK: Can, can you get them on the show so we can com­mis­er­ate?

[00:39:21] CR: Actu­al­ly, Chris­sy and I have been using GPT. As our com­mu­ni­ca­tion ther­a­pist recent­ly, um, if we’re

[00:39:30] TK: can’t imag­ine you

[00:39:31] TK: guys not com­mu­ni­cat­ing.

[00:39:32] CR: oh, we com­mu­ni­cate, but some­times it’s not pos­i­tive

[00:39:36] TK: uh.

[00:39:38] CR: So, I’ll write what I want to say in GPT, it’ll reframe it. Which I can then give to her and then she’ll reframe it, give it back to me, or we’ll both send it to GPT and let’s say, okay.

[00:39:51] CR: I think what Cameron’s try­ing to say here is, and I think what Chris­sy’s try­ing to say here is, and it acts as the inter­me­di­ary. We have an AI inter­me­di­ary things get a lit­tle bit hairy, that’s great. Any­way, okay. Uh, thank you for that feed­back, Nick. And yeah, I mean, I know it’s hard, but. Any sys­tem’s

[00:40:15] CR: gonna strug­gle if you’re not sell­ing stuff.

[00:40:18] CR: I mean, we do have a stop loss dri­ven sys­tem, so if we miss those stop loss­es, it’s gonna pull every­thing down. Then again, you and I had a cou­ple of bad years, uh, post Ukraine

[00:40:32] CR: inva­sion when the stop

[00:40:34] TK: Yeah. inter­est rates ris­ing. Yep.

[00:40:37] CR: that’s great. Yeah.

[00:40:39] TK: I checked my shares today actu­al­ly up 17 per­cent for the cal­en­dar year So I was hap­py with that.

[00:40:47] TK: I was gonna, I was gonna do some kind of year end wrap

[00:40:52] TK: on my port­fo­lio But I ran out of time prep­ping. Might save it for tomor­row or a spe­cial

[00:40:58] TK: show or some­thing.

[00:41:00] CR: Okay. Speak­ing of which, um, I’m going on Phil Mus­catel­lo’s show tomor­row and he’s com­ing on this one. I’m going to do, we’re going to do an inter­view, uh, a joint

[00:41:13] TK: mm

[00:41:14] CR: my, him inter­view­ing me will be on his show and me inter­view­ing him will be on our show over Christ­mas. so yeah, we’ll have that in the bag for when you take a Christ­mas hol­i­day.

[00:41:27] CR: Uh, What else? RBA’s meet­ing today, Tony?

[00:41:32] TK: Yes, uh, well, we’ll prob­a­bly know the result in about 10 min­utes. Real­ly like them to see them to cut inter­est rates, but I don’t think

[00:41:39] TK: they will. Um,

[00:41:42] TK: and

[00:41:42] CR: What does

[00:41:43] TK: the lat­est eco­nom­ic data

[00:41:44] TK: about,

[00:41:45] CR: Is she giv­en

[00:41:46] TK: I haven’t seen, no, no hints.

[00:41:50] TK: I haven’t seen

[00:41:51] TK: any­thing out,

[00:41:52] CR: Uh, they left it

[00:41:53] TK: before­hand.

[00:41:54] CR: on the fin already. Cash rate 35%.

[00:41:58] TK: okay, bug­ger. Well, when the results came out say­ing that Aus­tralia had anaemic pro­duc­tiv­i­ty growth and it was all gov­ern­ment spend­ing. I thought that might’ve. Cut some slack for them to reduce rates, but they haven’t. So, um, they’re going to get caught because it’s going to be a fed­er­al elec­tion some stage in the first half of next year.

[00:42:19] TK: And the RBA is loathe to change rates dur­ing an elec­tion because it’s seen as being an endorse­ment of either the gov­ern­ment or the oppo­si­tion. And, um, ever since they did that dur­ing John Howard’s elec­tion loss, Back in 07 they’ve shied away from it, so I thought that that may have gone into their think­ing today.

[00:42:38] TK: If they’re going to move, they might move ear­ly, but um, it has­n’t unfor­tu­nate­ly. Oh well. Coal for, coal for presents for Christ­mas again this year, Kev.

[00:42:49] TK: A lump of coal.

[00:42:51] CR: Some­body, one of Chris­sy’s vio­lin stu­dents just gave, she just did a les­son for and they gave her a Christ­mas present. It was a tray of man­goes. Beau­ti­ful, ripe man­goes. I was like, that’s the per­fect, you know, gift for a teacher at the end of the year is just a tray of man­goes. Bril­liant. For­get the smelly can­dles and all that kind of stuff.

[00:43:12] CR: Just a tray of man­goes. What a great idea.

[00:43:15] TK: Oh,

[00:43:15] TK: that’s real­ly good.

[00:43:16] CR: I’ve got a ques­tion.

[00:43:18] CR: Oh,

[00:43:18] CR: sor­ry, you got any­thing else? No? Ques­tion,

[00:43:20] TK: I don’t think so.

[00:43:21] CR: Dave sent this through a week or two

[00:43:23] CR: ago, but you were away, so.

[00:43:24] CR: I held it over.

[00:43:25] TK: Oh, okay.

[00:43:26] CR: He says, Fleet Part­ners report­ed their annu­al results on the 18th of Novem­ber. The results are in Stock Doc­tor.

[00:43:32] CR: For the third half in a row, oper­at­ing cash flows are neg­a­tive. There­fore, FPR is no longer a QAV stock. Dig­ging a lit­tle deep­er into the num­bers, receipts from cus­tomers are still far exceed­ing pay­ments to sup­pli­ers, i. e. true cash flow from oper­a­tions is still pos­i­tive. What’s changed is the oth­er oper­at­ing cash flows line.

[00:43:55] CR: Below is an extract from the 1H23 results where oper­at­ing cash flow first went neg­a­tive and an extract from 30th of Sep­tem­ber 2024 annu­al report. I’ve tried, but can’t ful­ly under­stand what’s going on. There seems to be two approach­es to fund­ing the vehi­cles, finance leas­es and ware­house fund­ing.

[00:44:13] CR: Pre­sum­ably, they hit the finan­cial state­ments in dif­fer­ent ways. Giv­en ware­house fund­ing is increas­ing over the last three peri­ods, I’m assum­ing that is what is incor­po­rat­ed in the oper­at­ing cash flow as invest­ment in lease port­fo­lio, send­ing it neg­a­tive. Prop­er­ty plant and equip­ment in the non cur­rent assets is increas­ing pro­por­tion­al­ly.

[00:44:34] CR: Two ques­tions. One, can Tony explain this in lay­man’s terms, please? And two, are we real­ly say­ing FBR is no longer a QAV stock? Thanks, Dave from Newey.

[00:44:46] TK: Thanks, Dave. Um, I’ll try and explain it as much as I can. I’m not an expert in ware­house leas­ing, but I did some Googling. Uh, and this is from Fleet Part­ners March 23 accounts. Um, their results when they, uh, pub­lish them. Uh, and it says, Ware­house facil­i­ties are so called because they can be drawn and repaid on an ongo­ing basis up to an agreed lim­it sub­ject to con­di­tions.

[00:45:15] TK: A group of assets fund­ed via a ware­house facil­i­ty can be pooled togeth­er and refi­nanced via the cre­ation of a spe­cial pur­pose Asset backed secu­ri­ti­za­tion vehi­cle, which issued debt secu­ri­ties to whole­sale investors such as domes­tic and inter­na­tion­al banks and insti­tu­tion­al funds. Fund­ing novat­ed leas­es through the ware­house fund­ing struc­ture impact­ed rev­enue.

[00:45:41] TK: by spread­ing the rev­enue over the life of the lease as net inter­est mar­gin, rather than receiv­ing the rev­enue at the start of the lease as fund­ing com­mis­sions. So I think that’s, that’s the rea­son for the change in oper­at­ing cash flow. In a nut­shell, it’s being spread over a num­ber of years because these vehi­cles are gen­er­al­ly being leased for four years, um, rather than, um, rec­og­nized when the lease is signed up front.

[00:46:12] TK: I sus­pect what that means is in the ear­ly years of this change to their financ­ing, uh, it will look worse at the oper­at­ing cash flow line, but I sus­pect once, you know, a lease cycle goes through, it’ll look about the same. Um, it just, I don’t know enough about Fleet Part­ners fund­ing to know how lumpy they were rais­ing these funds.

[00:46:35] TK: Um, But it’s a change in account­ing. Uh, I think in the long term it won’t have any effect on the accounts. Um, if I look at earn­ings per share over the last cou­ple of years, it’s been rea­son­ably flat. So I think it has had an effect on, on their results, which makes me won­der why they did it. But, um, any­way.

[00:46:58] TK: Um, and the share price has come off a lit­tle bit too, so, uh, it’s, it per­haps is caus­ing a bit of con­fu­sion in the ana­lyst com­mu­ni­ty, as it is with Dave, and I must say, it is with myself as well. Should it be a QAV stock? Um, look, rules are rules. I use oper­at­ing cash flow rather than, um, NPAT as my, you know, basis for work­ing out a val­u­a­tion because it’s hard to manip­u­late.

[00:47:27] TK: But hats off to Fleet Part­ners because they’ve man­aged to manip­u­late it. Um, all I can say is if you hold it, Dave, use the three point trend lines to decide when to sell. Um, if you, if it’s not in the buy list and you want to buy it, buy it, but it’s not on our buy list so I’m not going to look at it until this gets sort­ed out.

[00:47:48] TK: Um, but there’s, you know, 89 oth­er stocks on the buy list to choose from, so I’m not going to get tied up in knots try­ing to work out the arcane ins and outs of ware­house leas­ing. But I think that’s the rea­son they’re being, it used to be rec­og­nized up front as income when a car was leased and now it’s being spread over three or four years.

[00:48:10] TK: So, uh, that’s the

[00:48:11] TK: dif­fer­ence.

[00:48:13] CR: Right. Yeah, I threw this into, uh, GPT to get its analy­sis on it. It said, um, The busi­ness has two main ways of get­ting vehi­cles onto its books to lease out to cus­tomers. One way is by using what’s known as finance leas­es, and anoth­er is by using some­thing called ware­house fund­ing. Both mess th th bleh.

[00:48:34] CR: Both Meth­ods allow the com­pa­ny to pro­vide vehi­cles to cus­tomers, but each is treat­ed dif­fer­ent­ly in the cash flow state­ment. If the com­pa­ny uses finance leas­es, they often don’t have to front up all the mon­ey for the vehi­cle pur­chase as part of their day to day oper­at­ing cash flow. The account­ing rules treat it more like a financ­ing arrange­ment.

[00:48:51] CR: Think of it like bor­row­ing mon­ey to get the asset, so the ini­tial cost might show up under financ­ing rather than crush­ing the oper­at­ing cash flows. But that sounds to me like it does­n’t real­ly under­stand the busi­ness the fleet part­ners is in. It’s talk­ing more about them as a Com­pa­ny

[00:49:06] TK: they were leas­ing.

[00:49:07] CR: Yeah, it does. I did­n’t give it the full

[00:49:09] CR: back­ground.

[00:49:11] TK: I think they pos­si­bly are. And I’m not, again, I’m not that famil­iar with fleet part­ners, even though it’s been a good share for the dum­my port­fo­lio over the years. Um, I don’t know whether they buy the cars and then lease, lease them out and then sell them when they’re returned.

[00:49:26] TK: Um, or whether they go and get a cheap­er lease. to lease the car and then when they lease it to the end user, the retail cus­tomer, there’s a mar­gin in the lease charge that the retail user pays and there­fore they’re kind of clip­ping the tick­et. So I’m not sure on that. Sounds like that they’re fund­ing it via the sec­ond way, they’re leas­ing the car as well, and then out­sourc­ing it for a high­er price.

[00:49:55] CR: just try­ing to fig­ure out the last time it was on our buy list.

[00:50:02] TK: It did well, um, I owned it when it was called Eclipse, um, way back when, um, and there’s typ­i­cal­ly always one of these fleet, uh, Leas­ing com­pa­nies and salary sac­ri­fic­ing com­pa­nies on the buy list. We men­tioned before, Nick had SGX, I’ve got MMS, and Fleet Part­ners is the third. Uh, so they’re kind of, you know, a bit like the big banks, they go through their day in the sun.

[00:50:28] TK: Fleet Part­ners is inter­est­ing because they, rather than pay div­i­dends are buy­ing back their shares and that’s sup­port­ed the share price for a long time. So that could also, I don’t know if there’s been a change in that pol­i­cy, that could also be affect­ing their share price in the last

[00:50:42] TK: six months, but it’s cer­tain­ly gone

[00:50:44] TK: down.

[00:50:45] CR: Well, what I can’t fig­ure out

[00:50:46] CR: is it seems to have last been on our buy list in May of this year, but when I look at their cash flows in Stock Doc­tor, they’ve had neg­a­tive cash flow, accord­ing to this, going back to Sep­tem­ber 23.

[00:51:05] TK: Yeah, but Stock Doc­tor used a rolling 12 month, so may could have been a mix­ture of a pos­i­tive and a neg­a­tive cash flow when the account­ing change hap­pened, for exam­ple.

[00:51:14] TK: I’m not sure.

[00:51:17] CR: Um, no, it’s going back to Sep­tem­ber 23 as neg­a­tive cash­flow Last time. Accord­ing to stock doc­tor, now they had pos­i­tive cash­flow in a, um, six month peri­od. An inter­im peri­od was March of 23, so 18 months ago. Um, so I dun­no if that it’s been, some­thing’s gone on with it being ret­ro­spec­tive with the report­ing on that.

[00:51:43] CR: Could­n’t have, it could­n’t have been on our buy list if it had neg­a­tive cash flow, right. Price to oper­at­ing cash flow would just blow out.

[00:51:51] TK: Yeah, but if we owned

[00:51:52] TK: it pri­or to that peri­od, we don’t sell it when it

[00:51:54] TK: goes neg­a­tive cash flow.

[00:51:55] CR: was on our buy list in May of this

[00:51:57] CR: year.

[00:51:58] TK: Oh,

[00:51:58] TK: sor­ry. Gotcha. Okay.

[00:51:59] CR: Should­n’t have been on our buy list under

[00:52:01] CR: those

[00:52:01] CR: cir­cum­stances.

[00:52:02] TK: Well, all I can think of is, is that at that stage, before the results were out, per­haps the pri­or two halves added to a pos­i­tive cash flow

[00:52:15] CR: Hmm.

[00:52:15] TK: because Stock Doc­tor does say that it, it rolls, it adds the two halves togeth­er rather than tak­ing the, the one half as the, um, as the annu­al­ized

[00:52:25] TK: amount.

[00:52:25] CR: Hmm. All right. Well, some­thing’s going on there, but any­way, there you go. That’s, uh, Fleet Part­ners for you, Dave. Tony says, no. Tony says no.

[00:52:39] TK: Well, yeah, and like if we have to We have to manip­u­late accounts to make things work for us. Um, it’s, it’s gonna, it’s gonna add a

[00:52:48] TK: lot of time to the invest­ment

[00:52:50] TK: process, I think.

[00:52:51] CR: But as you

[00:52:52] CR: said, it’s not like there’s noth­ing else to buy. So why have to work so hard just for the sake of one com­pa­ny that’s doing clever stuff with their account­ing? Alright, that’s the only ques­tion we’ve got for this week. Tony, you got a pulled pork for us this week?

[00:53:14] TK: I do. Hel­lo World Trav­el. Code is H L O. Remem­ber John Laws? I used to start off every day with Hel­lo World. I need

[00:53:24] TK: to

[00:53:24] TK: use broad­cast. Any­way, that remind­ed

[00:53:26] CR: Well, that’s why

[00:53:26] TK: when I saw

[00:53:27] CR: first

[00:53:28] CR: pod­cast G’day World. It was, uh, sort of a ref­er­ence to that. Yeah.

[00:53:33] TK: I

[00:53:34] TK: did­n’t know that.

[00:53:35] CR: It was also a ref­er­ence to, so when you learn to code, I don’t know when you learned to code, but when I learned to code in C or what­ev­er it was, the first lan­guage I learned to code at in the eight­ies, Hel­lo World was the first script you learned to write.

[00:53:50] CR: You know, you would write some­thing and it would print Hel­lo World. You learn how to print some­thing. So also a ref­er­ence to that, but yeah,

[00:53:58] TK: I learned to code in BASIC and HELLO was the first thing you learned to print there too.

[00:54:02] CR: go. Yeah.

[00:54:03] TK: It was­n’t HELLOWORLD, it was HELLO. And also dis­played on screen. Yeah.

[00:54:08] CR: print screen,

[00:54:09] TK: Okay. Inter­est­ing. Any­way, HELLOWORLD, trav­el com­pa­ny. It’s cur­rent­ly moved above its buy line, so it’s on the buy list, I think, Um, fair­ly recent­ly, maybe this week might be the first time, uh, but today it’s a Josephine.

[00:54:23] TK: So if you’re lis­ten­ing to this, just watch what hap­pens to sen­ti­ment before you make a deci­sion on whether to buy or not. Uh, Hel­lo World Trav­el Lim­it­ed is a trav­el dis­tri­b­u­tion com­pa­ny, head­quar­tered obvi­ous­ly in Aus­tralia, pro­vid­ing inter­na­tion­al and domes­tic trav­el prod­ucts and ser­vices to clients around the world.

[00:54:42] TK: They have a lot of brands. Um, and they have a lot of dif­fer­ent chan­nels. So they have tech­nol­o­gy plat­forms that they, um, on sell to end users, uh, like Smart Tick­ets and Smart Fares and ResWorld. Uh, they have what’s called a Con­sol­i­da­tion Busi­ness, which I strug­gled to work out what it was, but the brands there are called Air Tick­ets and Express Tick­ets.

[00:55:06] TK: So I think that’s like they bulk buy. Tick­ets, and then I’ll sell them in parts to, uh, oth­er peo­ple. They have a lot of retail trav­el brands, and they oper­ate, uh, fran­chise busi­ness­es around Aus­tralia and New Zealand. Uh, under the ban­ners of, obvi­ous­ly, Hel­lo World Trav­el, but also Mag­el­lan, My Trav­el, Inde­pen­dent Trav­el Group, um, Express Trav­el Group, Ela­tus.

[00:55:31] TK: Phil Hoff­man, Trav­el, etc, etc. There’s a lot of brands here that they, they sup­port. Uh, they have some tour oper­at­ing busi­ness­es. One of them’s called Enter­tain­ment Logis­tics, and they actu­al­ly are the biggest movers of um, of shows around Aus­tralia. They also have tourist trans­port, um, Fiji. They oper­ate in Fiji.

[00:55:55] TK: They do what’s called inbound ser­vices. So basi­cal­ly you get off the plane, hop on a bus and do a tour. So ATS Pacif­ic, Aus­tralian Ris­er, uh, E Air, It’s a tour com­pa­ny in New Zealand, AOT Inbound, AOT NZ, ETA, which is Expe­ri­ences Tours Aus­tralia, and they whole­sale, so they sell prod­ucts to oth­er trav­el agents through brands like Ready Rooms, Viva Hol­i­days, Cre­ative Cruis­ing, and Cruise Co.

[00:56:27] TK: So quite a large busi­ness, they have more than 2700 mem­bers, I call them mem­bers, which is the end, uh, or the trav­el end. shops, I guess, that use their ser­vices and they employ 600 staff. They have over 530 fran­chisees and over 1500 agen­cies in their buy­ing groups and 650 mem­bers of their bro­ker busi­ness net­works.

[00:56:51] TK: So all in all, there’s over 10, 000 trav­el advi­sors across the HLO net­work in var­i­ous forms. Yeah, I spoke about Fiji. They have a sig­nif­i­cant pres­ence in Fiji, um, spoke about enter­tain­ment logis­tics busi­ness that they own, uh, one of the things I saw in their results, which I thought was a lit­tle inter­est­ing, is they hold 1. 4 mil­lion shares in anoth­er to ASX list­ed trav­el com­pa­ny called Cor­po­rate Trav­el Man­age­ment, CTD.

[00:57:19] TK: That was at least when the results were announced back in June. Um, so that’s inter­est­ing, they must have a, um, a need or a lik­ing of Cor­po­rate Trav­el Man­age­ment to hold shares in it. Um, don’t know what that means ongo­ing though. Uh, at the end of, FY24, one of the things that’s, um, is good for this busi­ness is that the trav­el num­bers in and out of Aus­tralia are now back to pre COVID lev­els in FY19 and just slight­ly low­er in New Zealand, they’re about 85 to 95 per­cent of FY19 lev­els.

[00:57:53] TK: So, um, Yeah, it suf­fered bad­ly dur­ing COVID, obvi­ous­ly, when things were shut down, but get­ting back there now. Hel­lo World was launched in 2013 after the con­sol­i­da­tion of lega­cy brands Har­vey World Trav­el, Trav­el Scene, Jet Set, and Trav­el World. A merg­er with the AOT group fol­lowed in 2016 and the busi­ness name was changed to Hel­lo World Trav­el in 2017.

[00:58:20] TK: So, short his­to­ry, It’s been going for about 11 years in this guise any­way, but the under­ly­ing brands that have been rolled up have been around for a long time. Full year results, um, were pret­ty good. Rev­enue growth, uh, of 37. 5 per­cent year on year. Net prof­it after tax, uh, up 60 per­cent year on year. And, uh, earn­ings per share up 55 per­cent year on year.

[00:58:46] TK: Div­i­dend was, uh, 6 cents per share. Um, which was up 37 per­cent year on year. The oth­er inter­est­ing thing in their num­bers is they have zero bank debt. So, I can’t think of any oth­er com­pa­ny on the ASX that I’ve come across that has zero bank debt. So, um, that’s pret­ty good from a qual­i­ty point of view, um, and prob­a­bly scope for them to, um, to raise some funds at some stage to con­tin­ue doing what they’re doing.

[00:59:13] TK: Uh, from the num­bers point of view. QAV num­bers. Stock price used in the analy­sis is 1. 99 and when I looked this morn­ing it was 1. 98. How­ev­er, that’s still only 70 per­cent of the con­sen­sus tar­get and below our IV2 val­u­a­tion of 2. 15. It’s above IV1 of 1. 15 but as we know that’s a pret­ty low Uh, Val­u­a­tion.

[00:59:37] TK: Uh, Method­ol­o­gy. ADT is 500 mil­lion dol­lars, so it’s a rea­son­ably large com­pa­ny and should suit most lis­ten­ers. Yield is 5. 5%, which is very strong, but it does­n’t quite meet our thresh­old to score, so we score it zero. Stock Doc­tor finan­cial health is strong and the trend is steady. Stock­o­pe­dia qual­i­ty, how­ev­er, is only 67.

[01:00:02] TK: And the total rank­ing for this com­pa­ny is 90, which isn’t too bad. Um, I drilled down into the qual­i­ty rank­ing on Stock­o­pe­dia. The F score is 6 which is, you know, we’ve seen that before. It’s pret­ty good. The Z score, which is the bank­rupt­cy score, though, is 1. 1, um, which is, uh, marked as dis­tress. And I drilled down into that, and it was­n’t scor­ing much in the Z score, um, met­rics.

[01:00:27] TK: And I won­der whether that was due to the nature of the indus­try where small com­mis­sions are clipped on large rev­enues. Um, so some of the ratios that uses to do the Zed scor­ing maybe did­n’t make so much sense in the, um, in that indus­try, but I’ll high­light it. Um, does­n’t have a good Zed score, but um, in stock doc­tor­ate it does have a good qual­i­ty score.

[01:00:48] TK: Uh, PE is 8.8 times, which is the low­est in the last three years. There was a cou­ple of years when it did­n’t make any mon­ey ’cause of Covid, so. They get elim­i­nat­ed, but of the ones where it has, it’s trad­ing at the low­est in three years. Prop­Caf is only five times, so it’s throw­ing off lots of cash, there’s no debt, so we can buy it rea­son­ably cheap­ly.

[01:01:10] TK: Net equi­ty per share is inter­est­ing. It’s 2. 04, so the share price at 1. 99 is almost allow­ing us to buy the book, cer­tain­ly less than book plus 30. How­ev­er, again, this is one of these com­pa­nies where the net tan­gi­ble asset is only 29 cents. So, big dif­fer­ence and there’s been lots of acqui­si­tions and roll ups in the trav­el space since the com­pa­ny list­ed and that means a large amount of good­will on the bal­ance sheet.

[01:01:37] TK: So, as you know, I don’t nec­es­sar­i­ly balk at that, but it is a risk that like the good­will could be writ­ten down in future years, just depends how well the busi­ness has per­formed that it’s acquired.

[01:01:55] TK: What else have I got here? Direc­tors hold 36 per­cent of the com­pa­ny. The CEO and CFO hold around 19 per­cent each. And they are Andrew and Chinzia Burns. I’ll read out the lit­tle bios that Stock Doc­tor has on these two. Mr Burns was Hon­orary Fed­er­al Trea­sur­er of the Lib­er­al Par­ty of Aus­tralia from July 15 to June 2019.

[01:02:19] TK: Andrew was appoint­ed a Direc­tor and sub­se­quent­ly Deputy Chair­man of Tourism Aus­tralia in July 2004 until 2009. He was a trustee of the Trav­el Com­pen­sa­tion Fund from 05 09 and a board mem­ber of the Aus­tralian Tourism Export Coun­cil from 98 and Nation­al Chair­man from 99 2003. Chinzia Burns. Com­menced in 1982 in trav­el and after work­ing as a trav­el whole­saler in Italy for nine years, she has played a role over 26 years in grow­ing AOT, which was one of the com­pa­nies that Hel­lo World brawled up.

[01:03:00] TK: Uh, grew AOT from a region­al safari oper­a­tor into one of Aus­trali­a’s trav­el dis­tri­b­u­tion busi­ness­es. Uh, I think I mean one of the largest Aus­tralian trav­el dis­tri­b­u­tion busi­ness­es. The AOT group was pri­vate­ly owned by Andrew and Chinzia Burns until its merg­er with Hel­lo World Trav­el in Feb­ru­ary 2016.

[01:03:20] TK: Chinzia was a direc­tor of Tourism Vic­to­ria from 2013. 15. She has also served as a board mem­ber of Health Ser­vices Aus­tralia and the Aus­tralian Tourism Com­mis­sion from 2001 to 2004. Zi was appoint­ed a direc­tor of Aus­tralian Fed­er­a­tion of Trav­el Agents on 14th of Decem­ber, 2022. So a lot of expe­ri­ence in the trav­el agents, uh, in the trav­el indus­try.

[01:03:50] TK: Um, big share­hold­ing both on the board. Uh. Andrew Burns has been buy­ing shares over the last few months, but not in over­ly large parcels com­pared to his total hold­ings, but obvi­ous­ly likes where the com­pa­ny’s going. In terms of man­u­al data, it’s a new three point trend line, so we score it for that. It does not have con­sis­tent­ly increas­ing equi­ty, but it was close.

[01:04:13] TK: So qual­i­ty score for this com­pa­ny is high, 15 88%, and the QAV score is 0. 17. So kind of mid­dle of the buy list. Uh, the pros, no debt and vast man­age­ment own­er­ship and expe­ri­ence on the board. And the risks, it suf­fered dur­ing COVID, no doubt. So, you know, some­thing like that could affect it again in the future.

[01:04:39] TK: And the oth­er risk is that, as I said before, there could be good­will write downs. at some stage in the future if some of those, um, busi­ness­es they’ve acquired aren’t worth what they were when they were acquired. So, um, have a look, peo­ple. Not a bad, um, a bad busi­ness and a decent size to be on our buy

[01:04:56] TK: list.

[01:04:57] CR: What did you say the um, aver­age dai­ly trade is? I

[01:05:01] TK: Uh, half a bill.

[01:05:04] CR: think it’s 500. I think it’s 500 000.

[01:05:07] TK: Oh, is it? Oh, sor­ry. Cut my unit strong?

[01:05:09] CR: read­ing my stock doc­tor wrong. Yeah,

[01:05:12] TK: Okay, thank you. Thanks for pick­ing that up. I

[01:05:14] CR: it’s all right.

[01:05:14] TK: to be my, uh, what’s the word? I was going

[01:05:17] TK: to say intern, but you’re not my intern. AI. yeah.

[01:05:20] CR: AI. I’m your AI.

[01:05:23] TK: Yeah,

[01:05:23] CR: of which, that’s

[01:05:24] TK: back­stop.

[01:05:25] CR: my first thought when I see this

[01:05:26] CR: busi­ness is, this is, they’re, they’re a dead man walk­ing.

[01:05:31] TK: Real­ly?

[01:05:32] CR: Well, with AI.

[01:05:33] TK: think AI is going to dri­ve tourist bus­es

[01:05:36] TK: around Aus­tralia?

[01:05:36] CR: I think it’s, in terms of trav­el agent busi­ness, like in terms of, um, plan­ning and book­ing and arrang­ing, all of that kind

[01:05:46] TK: Mm

[01:05:46] TK: hmm.

[01:05:47] CR: Yeah, I think busi­ness­es like this, um, are going to be one of the ear­ly tar­gets for dis­in­ter­me­di­a­tion.

[01:05:57] CR: Unless they get on the front foot and they have their own AI that does it and they just fire all of their human stuff. But even that, I mean, there’s, there’s, I’m not sure there’s a lot of upside with that because your basic AI will just be able to do all of that stuff for you. You’ll just say to what­ev­er the AI does, thing is on your phone.

[01:06:16] CR: Hey, I want to book a trip, I want to book a trip to Italy and it’ll take care of it all for you. Tell you where to go. It’ll make the book­ings, et cetera, et cetera.

[01:06:27] TK: I like your faith in AI, I’m not so sure, and my skep­ti­cism is root­ed in the fact that I’ve heard this argu­ment before when the inter­net came along and every­one said, Oh, trav­el agents are dead. You can just go online and book an Expe­dia and Book­ing.

[01:06:44] TK: com are gonna take

[01:06:46] TK: over the mar­ket.

[01:06:47] CR: and they did.

[01:06:48] TK: large

[01:06:48] CR: Yeah. They took a huge

[01:06:49] CR: chunk of the mar­ket.

[01:06:50] CR: Yeah. No, and I

[01:06:51] TK: Hel­lo World point out in one of the pre­sen­ta­tions I read that par­tic­u­lar­ly in Aus­tralia, being so remote from over­seas, you don’t have the kind of con­nec­tions and expe­ri­ence to make your own trav­el book­ings. And so they still have a lot of face to face Con­sults with peo­ple around the details of where they’re going.

[01:07:12] TK: You know, have you been to Italy? Yes. Where would you rec­om­mend? Here. Oh, I can trust it. Yes. So there’s a fair, still a fair bit of hand hold­ing that goes on, par­tic­u­lar­ly in our

[01:07:20] TK: coun­try and book­ing inter­na­tion­al

[01:07:23] TK: trips.

[01:07:24] CR: Well, when we did our trip with a bunch of my lis­ten­ers back in 2018 to Europe, I orga­nized all of that through, uh, Flight set? No, I don’t know. Well, some trav­el book­ing might’ve been hel­la well. I don’t know, some guy. I said, just, you know, I need, I need to take 20 peo­ple to Europe, orga­nize it all, and he did, and he did a great job.

[01:07:47] CR: So I get that. But again, I think AI is going to do all of that for us.

[01:07:53] TK: Yeah, look at my, and no, I know you are. I am, I am, um, I’m not ignor­ing what you’re say­ing, but I think I’ve seen it before, that com­pa­nies still sur­vive the tech­nol­o­gy trans­for­ma­tion. I’m not say­ing hel­lo world will. Some­one will.

[01:08:09] CR: some, or maybe. Um, yeah, thank you. That’s my first, that’s just my impres­sion. When I see busi­ness­es like this, like in terms of low hang­ing fruit for AI, not

[01:08:22] CR: dri­ving tour bus­es, although I’m sure Elon will have, uh, self dri­ving tour bus­es, uh, out there. Cyber, cyber bus­es. And what did he call them? He called them

[01:08:34] TK: Remote con­trol cyber

[01:08:36] TK: bus­es.

[01:08:37] CR: or was it, or, uh, bu Auto­bus, he, he had, he had some fan­cy way of say­ing auto bus when he did his launch a cou­ple of months ago with the self-dri­ving bus­es. I think he was call­ing them Auto­bus or, or

[01:08:54] TK: Ah, all right.

[01:08:56] TK: All right.

[01:08:57] CR: Any­way.

[01:08:57] TK: Yeah, okay. Your South African accent, huh? Yeah, and then the humans will just be rel­e­gat­ed to the bugs that load and unload the,

[01:09:05] TK: the exhi­bi­tion equip­ment

[01:09:06] CR: I’ll be

[01:09:07] TK: onto the auto­bus­es. Oh, robots will do it? Okay.

[01:09:10] TK: Uh huh.

[01:09:11] CR: that. Yeah. Uh,

[01:09:14] TK: who

[01:09:15] TK: has the hol­i­day?

[01:09:16] CR: well the robots. the

[01:09:17] CR: robots go on

[01:09:18] TK: Oh, the robots. Oh, okay. They do a tour of human zoos. Don’t touch the humans, kids.

[01:09:26] CR: It’ll be the apes. The apes, when they take over, will be going.

[01:09:30] TK: Uh huh.

[01:09:32] CR: Uh, Well, you know, I guess we’re under half our hours now. Thank you for that, Tony. Um, I did see, I was going to tell you about this, I, um, I saw, uh, Elon being inter­viewed by Peter Dia­man­dis.

[01:09:47] CR: You, you know Peter Dia­man­dis, I’m sure you’ve come across him over the years.

[01:09:51] TK: Well, you told me about him

[01:09:53] TK: two weeks ago when we were on the

[01:09:54] TK: pod­cast then,

[01:09:55] CR: did we have the, oh yeah, I talked about the Mooch.

[01:09:58] CR: Did I tell you about his inter­view with Elon, that I also watched?

[01:10:03] TK: I can’t recall. Sor­ry. The Mooch or Dia­man­dis?

[01:10:05] CR: No, Dia­man­dis?

[01:10:06] CR: um, he was, he was doing a, he was run­ning some sort of AI forum in Riyadh or some­where like that. And Elon was like a Zoom guest. And Elon was talk­ing about, if we get this right, um, this will be the end of cap­i­tal­ism.

[01:10:23] CR: He talks about How it’ll just be a world of abun­dance. Peter Dia­man­dis wrote a book some years ago called Abun­dance, which was about, you know, uh,

[01:10:30] TK: That’s right.

[01:10:31] TK: Yeah.

[01:10:32] CR: And Elon was like, if we get this right, it will be a world of abun­dance that we’re head­ing into. And I thought, it’s inter­est­ing, despite your snick­er­ing, when the rich­est man in the world, who runs sev­er­al very, very large busi­ness­es is talk­ing about work­ing on the end of cap­i­tal­ism, that the tech­nol­o­gy that he’s try­ing to devel­op will bring about the end of cap­i­tal­ism if he gets it right.

[01:10:58] TK: And would he be the world pres­i­dent of this non cap­i­tal­ist

[01:11:01] TK: soci­ety?

[01:11:03] CR: Yeah. I think emper­or is the word he likes

[01:11:06] TK: Emper­or. Right.

[01:11:08] CR: Emper­or Elon. Um,

[01:11:11] CR: but, uh, yeah, so that’s inter­est­ing. Did you, so you heard our show last week, you heard my, uh, review

[01:11:19] TK: I did.

[01:11:20] CR: book on

[01:11:20] CR: Bit­coin.

[01:11:22] TK: I did.

[01:11:23] TK: Yes. Agree with you 100%.

[01:11:25] CR: I was like, shocked but not shocked. Like, I real­ly thought, okay, he’s, he’s like, all in, um, there’s gonna be a lot of good meat in here about why, and there’s lit­er­al­ly noth­ing.

[01:11:41] CR: The entire book is just waf­fle. About the his­to­ry of mon­ey and the, and blockchain and the his­to­ry of fiat cur­ren­cy and blardy, blardy, blardy, blar. And the only argu­ment about why Bit­coin is a great invest­ment is the usu­al same two we’ve been hear­ing for

[01:12:03] TK: hmm. Yeah, it goes up.

[01:12:06] CR: There’s only a lim­it­ed amount. There’s only ever going to be 12, 21 mil­lion of them.

[01:12:11] CR: And

[01:12:13] CR: there is a good, there is a chance that it, you know, it will become the dom­i­nant cur­ren­cy in the world.

[01:12:22] TK: Mm hmm.

[01:12:23] CR: Why? No one knows. When? No one knows. You know, what’s going to hap­pen to all the oth­er coins? Eh, you know, it’ll just be this one.

[01:12:32] TK: all the world gov­ern­ments are

[01:12:33] TK: going to say, yeah, sure, here you go, cryp­to

[01:12:35] TK: bros,

[01:12:37] CR: Well, Trump is. Trump is now, Trump is out there say­ing he’s going to make Amer­i­ca the cryp­to cap­i­tal of the world

[01:12:45] TK: Yeah, but that’s not like say­ing I’m going to stop

[01:12:47] TK: print­ing dol­lars and you can start buy­ing

[01:12:49] TK: cryp­to.

[01:12:50] CR: But my point is that there was noth­ing, like lit­er­al­ly noth­ing that I haven’t been hear­ing for 10 years in this book. No,

[01:12:58] TK: Mmm.

[01:12:58] CR: no argu­ments, no, no sci­ence, no ratio­nal, log­i­cal argu­ments. I was like, real­ly? Like, what? I mean, so the ques­tion is then, what do these, what do these,

[01:13:11] TK: I’m shocked.

[01:13:14] CR: what, you know, I was in a debate with some­body online about this, uh, dur­ing the week, and, you know, I, I was quot­ing Char­lie, and he goes, well, Char­lie was in his late 90s when he said that, and I was like, yeah, you say that like it’s a bad thing.

[01:13:27] TK: Yeah, yeah. From his, from

[01:13:29] TK: his gold plat­ed

[01:13:30] TK: toi­let he was say­ing it.

[01:13:31] CR: Yeah, Char­lie had seen all of the scams come and go for 70 years. That’s why he was able to say this.

[01:13:41] CR: But like I say, the ques­tion then is, what do these guys see that we don’t see? Why? Like appar­ent­ly, Mooch on this, uh, Dia­man­dis pod­cast was say­ing that he’s got 55 per­cent of his, um, you know, fund. What­ev­er it is that he runs invest­ed in Bit­coin. And the only con­clu­sion I can come to is that it’s a pump and dump is the only, if, if I sink all my mon­ey in, and then I write a book about it and I go on a mil­lion pod­casts and tell every­one to buy it. So then I was rid­ing my bike, uh, the oth­er

[01:14:18] TK: So where have we seen that before, Cam?

[01:14:20] CR: Yeah,

[01:14:21] TK: every day in LiveWire and almost, you know, Mon­days in the AFR. We’re going to inter­view this fund man­ag­er. What’s your favourite stock? Oh, this

[01:14:29] TK: one.

[01:14:30] CR: pump and dump.

[01:14:30] TK: one I own.

[01:14:31] CR: So the, so, I was think­ing, so I read this book and we did the pod­cast, I was on my bike ride yes­ter­day and I was think­ing about this and I was think­ing,

[01:14:39] TK: Should have been think­ing, about the car

[01:14:40] TK: com­ing up behind you.

[01:14:41] CR: that was Thurs­day night. Um,

[01:14:44] TK: okay.

[01:14:45] CR: why does the Bit­coin price retreat? If the peo­ple that buy Bit­coin gen­uine­ly believe that it’s going to hit a mil­lion dol­lars a coin, like every­one says,

[01:14:59] TK: Mm hmm.

[01:15:00] CR: why does the price ever retreat by

[01:15:01] CR: 50%?

[01:15:04] TK: Well, the price goes down

[01:15:05] TK: when peo­ple sell.

[01:15:07] CR: So why are they sell­ing it though, if they believe in all of the evan­ge­lism that they claim about it, that it’s only ever going to go up, that the sky’s the lim­it, 21, why do they then dump it? So I asked GPT and it said, well, GPT said prof­it tak­ing and, you know, maybe the econ­o­my, they’ve got invest­ments in oth­er areas that take a dump and they need to cov­er their loss­es by, you know, going to cash and that kind of stuff.

[01:15:35] CR: So there might be some of those rea­sons, but again, um, I mean, I don’t know, it just seems to me that it is, it’s just a pump and dump cycle, that they dri­ve the price up for a year,

[01:15:46] CR: then they

[01:15:48] CR: say sor­ry suck­ers, and they sell it and take their cash and wait till the price goes back down, then they buy

[01:15:54] TK: Yeah,

[01:15:55] CR: dri­ve it back up again.

[01:15:56] TK: And it was, and it’s hit 100, 000 recent­ly and every­one’s up and about who owns Bit­coin, push­ing it again. Um, so the peo­ple who know about Bit­coin are sell­ing at the moment. And you know, the Bit­coin’s ris­ing because Trump’s say­ing he’s not going to reg­u­late it. And it’s like, is that a good thing?

[01:16:16] TK: Do you real­ly want to own a wild west unreg­u­lat­ed asset where any­body can, who knows a lit­tle bit more than you, can have the edge and rip you off every day? Any­way,

[01:16:30] TK: it’s like, it’s like buy­ing a banana taped to the wall, Cam. In fact, I think he used the, I think he

[01:16:36] TK: used the prof­its to buy Bit­coin.

[01:16:40] CR: Uh, have you ever seen the are­na? Tony, Pam Greer film, 1974. Have you seen

[01:16:47] TK: Pam Gri­er being the actor, actress who starred in the Quentin Taran­ti­no film. Ron, was based on Ron Punch. I for­got what it’s called.

[01:16:58] TK: Uh,

[01:16:59] TK: Yeah. Jack­ie Brown.

[01:17:01] TK: Thank you. Yes.

[01:17:01] CR: Yeah. Yeah. Yeah. Have you ever seen

[01:17:03] CR: like her oth­er sev­en­ties films? The Big Doll­house, Women in Cages, The Big Bird Cage, Black Mama, White Mama,

[01:17:11] TK: big doll­house ring. Yeah. I would have seen, seen them, but I’ve

[01:17:14] TK: for­got­ten them.

[01:17:15] CR: lots of like, Just great sort of Roger Cor­man esque films in the ear­ly 70s. So yeah, well, and, and I can’t remem­ber what the term for it is. It’s like women in prison films, basi­cal­ly, I think is the

[01:17:33] TK: Mm hmm.

[01:17:34] CR: genre, um, that, you know, you just get a lot of scant­i­ly clad, beau­ti­ful women, lit­tle bit of qua­si rape going on, which appar­ent­ly was cool in the sev­en­ties.

[01:17:47] CR: Um, And, usu­al­ly in her films, there’s sort of, um, male revenge stuff against the men, she’s being mis­treat­ed, she and oth­er beau­ti­ful women are being put in prison, and there’s usu­al­ly some les­bian scenes, um, and there’s a lot of nudi­ty, sex, vio­lence, and then female revenge. In this one, there are a bunch of, um, slaves in ancient Rome.

[01:18:16] CR: Who are get­ting, you know, uh, sex­u­al­ly assault­ed by the men, et cetera, et cetera, and treat­ed, there’s always like a mean female prison war­den or head of the Roman house­hold that’s treat­ing the mean, et cetera, et cetera, and then they get naked and fight, usu­al­ly, and then the women rise up. Roger Cor­man said it was a wom­en’s lib film, um, in

[01:18:40] TK: Ah, ha,

[01:18:41] CR: in this one they all become glad­i­a­tors,

[01:18:45] TK: Right.

[01:18:46] CR: one of the guys who runs the Glad­i­a­tor Club tour­na­ment sees them fight­ing in his kitchen and has this bright idea that he’s going to make them all glad­i­a­tors. So then there’s great, lots of oppor­tu­ni­ties for them to be naked in a are­na and an amphithe­atre with, uh, swords and chain mail, tri­dents and what­ev­er.

[01:19:04] CR: Any­way. It’s a lit­tle, it’s a lit­tle bit hard to watch with some of the um, like the, the rape fan­ta­sy stuff that was com­mon in films of that era.

[01:19:16] CR: We’ve talked about this before, it was um, I think the Eiger Sanc­tion or one of those Clint East­wood films from the late 70s ear­ly 80s where he lit­er­al­ly threat­ens his female co star that if she’s not care­ful he’ll rape her.

[01:19:30] CR: And he’s, and it’s like in a jokey sort of uh, You know, slight­ly. She then makes out with him. Like she thinks that’s such a hot thing for him to say that they get it on. Like, it was

[01:19:42] TK: Ha, Ha,

[01:19:43] CR: like, from a mod­ern per­spec­tive, you look at it, you go,

[01:19:46] CR: what, what, how is this, how is this fun­ny or cute or roman­tic?

[01:19:52] TK: I know, yeah. There’s one of the, um, one of the oth­er Clint East­wood movies, uh, one of the sequels to Dirty Har­ry, where he’s in the, in the gym work­ing out in Genevieve. Bejew­elled is the oth­er, if I’ve pro­nounced that right, is the oth­er um, is the female lead and he walks up to her and says, I’d like to lick the sweat off your body.

[01:20:11] TK: It’s like, that’s not gonna work. It worked, there’s a line in the movie, but like,

[01:20:17] CR: like in a, I’ve said that to Chris­sy more than once after a fit­ness class at Kung Fu, but that’s dif­fer­ent.

[01:20:25] TK: but you know her already,

[01:20:26] CR: yeah, it was­n’t my

[01:20:26] CR: pick up

[01:20:27] TK: Yeah, exact­ly.

[01:20:29] CR: If I tried to use that as a pick up line in Cor­si­ca, she would have kicked me in the nuts. Uh, yeah, any­way, apart

[01:20:37] TK: I agree, dif­fer­ent times. I equate that to archi­tec­ture, right? You walk down the street and you see a build­ing and you think, that’s awful, how could they have built that? But, back in the 50s or 60s or what­ev­er, that was the cut­ting edge of archi­tec­ture.

[01:20:51] TK: Just the taste change.

[01:20:53] CR: mm. I mean, Chris­sy’s watched a bit of this film with me and she’s as wom­en’s lib as I am, or any­one is, and she’s, like, we’re both going, wow, this is, like, real­ly dis­taste­ful, but it’s also awe­some, because No, not that bit of it, but the rest of it, because Pam Gri­er is awe­some in these films, as is her co star in this, uh, Mar­garet Markov, who was this tall, stat­uesque blonde, who was also in, I think, Black Mama, White Mama, or one of those oth­er films, uh, from the ear­ly 70s.

[01:21:28] CR: She was, um, Amer­i­can, but always had this, like, weird Euro­pean accent that they’d put on. She was born in Cal­i­for­nia, but she’s always talk­ing like she’s some sort of Slav­ic, uh, god­dess or some­thing. But they’re, like, they’re, they’re strong and they’re, they’re fierce. Women who, if a man, you know, even­tu­al­ly looks at them wrong way, they’ll, you know, cut their tes­ti­cles off or shoot them or, you know, get revenge.

[01:21:56] CR: And so there’s this strong women side of it after they’ve been molest­ed one too many times kind of thing. Any­way, Chris­sy’s a big fan of Pam Gri­er. She’s like, oh, she was so sexy and so strong and so, you know, Fierce and all those sorts of things, which is why Taran­ti­no want­ed her in Jack­ie

[01:22:15] CR: Brown. Yeah, Yeah, yeah, And I’m so hap­py that, uh, Quentin gave her that oppor­tu­ni­ty to work along­side De Niro and Sam Jack­son and Robert Forster in that film because she real­ly Held her own and did a great job.

[01:22:31] TK: Well, you heard the sto­ry that she was­n’t just work­ing along­side Robert. They went miss­ing

[01:22:35] TK: for the first three days of the shoot.

[01:22:36] TK: Well,

[01:22:39] CR: he has a his­to­ry with, uh, black ladies. He likes, uh, I think every rela­tion, every mar­riage or rela­tion­ship he’s had has been with an African Amer­i­can woman. I know I had­n’t heard that though, but, uh, good luck to both of them. Yeah. So any­way, um, the, the are­na, check it out. If you are on Plex, a lot of, a lot of sort of ear­ly sev­en­ties, uh, exploita­tion fun.

[01:23:07] CR: What have you been

[01:23:08] TK: speak­ing of strong women, have you seen Black

[01:23:11] TK: Doves yet?

[01:23:12] CR: Haven’t heard of

[01:23:12] TK: come out on Net­flix. No, it’s kind of a spy thriller.

[01:23:17] TK: On the pos­i­tive side, it stars

[01:23:19] TK: Ben Whishaw,

[01:23:20] CR: Oh, Yeah,

[01:23:21] TK: Q from the James Bond films,

[01:23:22] CR: Yeah, yeah, love him.

[01:23:23] TK: lat­er ones.

[01:23:24] CR: He’s also Padding­ton

[01:23:26] CR: in the Padding­ton

[01:23:27] TK: Knight­ley. Ah, okay,

[01:23:28] CR: Oh, come on. I love Keira Knight­ley. What are you, what, what, what’s wrong with Keira Knight­ley?

[01:23:32] TK: Okay, I’m a bit ambiva­lent about it.

[01:23:34] TK: I’m, not my taste. I think, I think, um, what’s that, uh, Love Actu­al­ly movie sort of spoiled her for me. Any­way, she’s in it, does a good job, but great. I real­ly enjoy what went through about four episodes last night in a row. But speak­ing of strong women, there’s this one for me, the high­light, there’s a cou­ple of high­lights.

[01:23:55] TK: One of the high­lights is Ben Whishaw plays a, an

[01:23:58] TK: assas­sin and a lot of the I know, a lot of the cast­ing is against type,

[01:24:04] CR: Yeah, right?

[01:24:05] TK: he’s a gay assas­sin and he’s black­mailed into going and killing a drug deal­er. Anoth­er great cast­ing choice, the head of one of the gangs in Lon­don is played by this Greek grand­moth­er called Lenny.

[01:24:25] TK: It’s just, it’s almost, almost like ear­ly, um, Ear­ly Guy Ritchie, like Snatch, um, yeah, and so, um, he, he has to go on and, uh, attack this night­club where the, his tar­get is, um, held up, and there’s, you know, 20 hench­men or some­thing there wait­ing for him, and he’s got no one to help him except these two Irish girls who look like they’re straight out of Dairy Girls, and, and like the three of them, uh, talk about cast­ing against type, these, these two, two young Irish girls are like, yeah.

[01:24:59] TK: Yeah, I’m total­ly up for it. Come on, let’s go. And like that, wield­ing machine guns, and they go in, they shoot some­one. Oh, stun­ning. Did you see that one? And then, and then like, you know, blow up some­thing. Hold on to your fun­nies, ladies. Here we go. It’s just hilar­i­ous. It’s so good. But, um, yeah, it remind­ed me of ear­ly Guy Ritchie, because it’s, it’s essen­tial­ly, it’s about, The assas­si­na­tion of the Chi­nese ambas­sador in Lon­don.

[01:25:25] TK: But that’s kind of the MacGuf­fin. It’s like the cen­ter of the sto­ry, but every­thing’s about the char­ac­ters that revolve around it, you know, gang mem­bers in Lon­don and, and Keira Knight­ley plays this, um, uh, sort of dou­ble, not dou­ble agent, an agent, you don’t know real­ly who she’s work­ing for, might be the CIA.

[01:25:43] TK: Like every­thing’s fair­ly obscure. In it, you come in late to all the sto­ries and you get a bit of back­sto­ry about it. But she’s, she’s mar­ried to the defense sec­re­tary. Like they pick him out as a young politi­cian, mar­ry her to him, and he’s like­ly to become the prime min­is­ter. And he’s feed­ing, she’s feed­ing infor­ma­tion to who­ev­er she works for, which is unspec­i­fied.

[01:26:06] TK: And then the Chi­nese ambas­sador dies and his daugh­ter goes miss­ing, and so it kind of gets inter­wo­ven into the plot. And, and, um, Yeah, I’m real­ly enjoy­ing it, it’s well writ­ten, it’s well act­ed, um, cast­ing is against type, which I love. And, and it starts off, the open­ing scene is, um, in a pub in Lon­don at Christ­mas time and they’re play­ing the Fairy Tale of New York, my favourite Christ­mas song.

[01:26:30] CR: Yeah, it’s

[01:26:31] TK: So that got me in straight away,

[01:26:33] TK: by the Pogues,

[01:26:34] CR: Yeah, can’t go wrong. As soon as you play that, you know, you know, it’s going to be a good ride. Any­one who’s got enough taste to play that. It’s the only song I allow in the house around Christ­mas is that. It’s the only Christ­mas song I’ll get behind.

[01:26:50] TK: Mmm, same. I love it.

[01:26:52] CR: Um, I noticed that, uh, Sam Troughton is in it. Um,

[01:26:59] TK: Ooh, don’t, know.

[01:27:01] CR: don’t know who he plays in it, but, um, he was in Rid­ley Scot­t’s Napoleon film, played Robe­spierre, but he, um, he’s also in The Out­laws, the, um, Stephen Mer­chant TV show, but, um, he is Patrick Troughton’s grand­son.

[01:27:21] TK: Yeah, I won­dered if there was a rela­tion­ship there.

[01:27:23] CR: Mmm.

[01:27:24] TK: Doc­tor who?

[01:27:25] CR: Mmm. The sec­ond

[01:27:27] CR: doc­tor. Oh, good, I’ll check that out. Good tip, thanks.

[01:27:32] TK: yeah, he, he plays the uh, police chief.

[01:27:35] TK: Just call him up. Yeah.

[01:27:38] CR: Um,

[01:27:40] CR: uh, I think, have I spo­ken to you since we watched The Ban­shees of Anishi­naabe­mowin? Did we talk

[01:27:46] TK: Yes. I think so. Yeah. Yeah. Loved it. Love it.

[01:27:49] CR: fan­tas­tic. Yeah, real­ly good. Did you ever watch the Bren­dan Glee­son show Mr. Mer­cedes?

[01:27:56] TK: Yeah.

[01:27:57] CR: Is that

[01:27:57] CR: good?

[01:27:58] TK: Read the books. Um, not as good as the books. I thought the books were excel­lent. Stephen King tril­o­gy.

[01:28:04] TK: Lost a bit on

[01:28:05] TK: the TV screen. Not bad, but

[01:28:07] TK: not great.

[01:28:08] CR: I watched the trail­er of it the oth­er

[01:28:10] CR: day and went, eh, it just looks a lit­tle bit sort of hokey. Yeah.

[01:28:14] TK: Yeah. it was. But the books are great. Real­ly enjoyed the books.

[01:28:20] CR: Um, Chris­sy and Fox went to see Wicked yes­ter­day, which they loved. Have you seen

[01:28:28] TK: Good.

[01:28:30] TK: No. Nor will I. I’ve seen the play.

[01:28:33] CR: Oh, right. I’d like

[01:28:34] TK: Years ago. Ten Years ago.

[01:28:37] TK: or some­thing.

[01:28:37] CR: But she was say­ing that, um, the, the

[01:28:39] CR: wiz­ard, um, Oz, the great Oz is played by.

[01:28:45] TK: Yes. Zeus.

[01:28:46] CR: Zeus,

[01:28:47] CR: yeah, Gold­bloom, he had a blank

[01:28:49] TK: Yeah. Jeff Gold­blum. yeah.

[01:28:51] CR: I thought, per­fect cast­ing,

[01:28:52] CR: like,

[01:28:53] TK: Yeah.

[01:28:54] CR: that’s, but he’s per­fect cast­ing for every­thing, real­ly, that he does. He’s just, you can’t go wrong with Gold­bloom, real­ly.

[01:29:03] TK: Did you ever see The Fly?

[01:29:04] TK: The remake of The Fly?

[01:29:05] CR: Uh, so, um,

[01:29:08] CR: Chris, yes, when Chris­sy first arrived in Bris­bane, Many, many years ago, um, we went out with some local peo­ple for some, um, drinks, um, to wel­come her to Bris­bane. And then a cou­ple of peo­ple came back to my place after­wards. And I put on The Fly for them to, as like a, as a film for every­body to watch.

[01:29:33] TK: Oh, haha, ha,

[01:29:34] CR: For some rea­son, I just thought, Oh yeah, let’s watch The Fly. And, um, they had nev­er seen it before. And every­one was like, Chris­sy just arrived in Bris­bane. I put that on for her to watch.

[01:29:44] TK: ha,

[01:29:44] CR: She’s like, what kind of a wel­come

[01:29:46] TK: Haha­ha.

[01:29:47] CR: And I’m like, what’s, you know, it’s great. Yeah, no, I love it. I love that film.

[01:29:53] CR: Yeah.

[01:29:54] TK: Yeah. It’s good, isn’t

[01:29:55] CR: I love the orig­i­nal too. Like I think it

[01:29:57] TK: Me too.

[01:29:58] CR: Vin­cent Price is

[01:29:59] TK: Me Help me. Yep.

[01:30:01] CR: But the Gold­bloom

[01:30:02] CR: one is par­tic­u­lar­ly, yeah, twist­ed and dis­turb­ing. Yeah. He’s great. Yeah.

[01:30:09] TK: Yeah.

[01:30:10] TK: Yeah. Loved it. Mmm. Well, most of my week’s

[01:30:14] TK: been ta Will be tak­en

[01:30:15] TK: up with pack­ing. I’m shred­ding.

[01:30:16] CR: when do you, when do you head

[01:30:18] TK: Shout out to, uh. Uh, so we’re, I’m going down for Christ­mas and then com­ing back for New Year’s, our last New Year’s here for a while. Um, and then we get packed up start­ing Jan­u­ary 2 by the removal­ists.

[01:30:32] CR: Right.

[01:30:33] TK: and then they, they drop their stuff off on Jan­u­ary 9 at Cape Schanck. So I’m down there

[01:30:39] TK: in between,

[01:30:40] CR: Right. Um, so that’ll be it. First week of Jan­u­ary and you’ll be gone.

[01:30:46] TK: cor­rect? Yeah,

[01:30:49] CR: Well, that’s, uh, going to be fun for you. All the pack­ing and every­thing. Yeah.

[01:30:55] CR: Take it

[01:30:56] TK: out to Rex­el, biggest bull­shit artist in the coun­try. I’ve got this shred­der. I’m try­ing to light­en the load a bit. I’ve got like, you know, tax files and share stuff going back more than 10 years. So I’m shred­ding all the old stuff rather than move it. And I bought this shred­der, which says it shreds a hun­dred things at a go.

[01:31:15] TK: It does­n’t. Adver­tis­ing it, it shreds a hun­dred pieces of paper at once. It can shred through sta­ples and paper­clips. It can’t. And you can feed it through six items at a time, which is what I’ve resort­ed to, because if you put a large load of paper and it keeps stop­ping. But even if it works, It shreds for two min­utes and then has to cool down for eight min­utes.

[01:31:45] TK: And it shreds about, I don’t know, ten pages a minute. So it’s, it does like 20 pages and then stops for eight min­utes. So I’m doing about a hun­dred pages an hour at the moment. It’s very, I might, might just get a match.

[01:31:59] TK: Get rid of them.

[01:32:00] CR: out of the deck. Just set fire to it.

[01:32:02] TK: Yeah,

[01:32:03] TK: yeah.

[01:32:04] CR: Alright, well, uh, thank you TK, you’re gonna be busy then I guess for the next few weeks, we’ll have to,

[01:32:12] TK: No, I’ll be around. I’m hap­py to make time. The only time I won’t be able to is when we’re actu­al­ly being uplift­ed

[01:32:18] TK: on the Tues­day after New

[01:32:20] TK: Year’s.

[01:32:21] CR: well, um, I’m still reach­ing out to peo­ple to come on and do some guest host­ing stuff, and Ed sug­gest­ed instead of get­ting peo­ple who have had good suc­cess with QAV, we get peo­ple on who haven’t had good suc­cess and we can unpick it, so

[01:32:37] TK: and me.

[01:32:37] CR: Yeah. Well, that’s just a reg­u­lar show.

[01:32:41] TK: been good. Yeah.

[01:32:45] CR: so if any­one lis­ten­ing has not had a good run and you want to come on and dump on me, um, while Tony takes some breaks over Christ­mas, feel free, hap­py to have that con­ver­sa­tion.

[01:32:57] CR: But if it comes down to, I don’t check my alerts for sev­er­al weeks, I’m going to go, well, what do you want me to tell you? I mean,

[01:33:06] TK: Oh, Excel. Oh, I don’t use Excel.

[01:33:08] CR: Yeah, yeah, yeah,

[01:33:11] TK: One of my, one of my bud­dies said, I want to learn about share mar­kets, but I have to tell you up front, I’ll sub­scribe to your show, but, um, I don’t use Excel and I don’t lis­ten to things. I just watch

[01:33:21] TK: YouTube. I’m like,

[01:33:23] TK: okay.

[01:33:24] CR: well I’ll have to start putting all of our things on YouTube just for him then. Alright, thank you TK, have a good week.

[01:33:32] TK: Have a good week. Thanks.