[00:00:00]

Cameron: Welcome back to QAV America, Tony. This is episode 35. We’re recording this on the 13th of January, 2026. Uh, how are you, Tony?

Tony Kynaston: Good, good, good. As I said, um, in the Australian show, we’ve had a lot of bush fires Victoria, which is unfortunate. And some of those I guess, have indirectly affected me because I have, um. Brood mares and race horses in various farms, and had to be evacuated overnight quickly, which is logistically very difficult to move. I think in total like about 500 horses. Um, between various farms and it’s been amazing the way that everyone’s pitched in. And there’s just been convoys of horse floats taking horses and putting them on other farms. In one case, I think the sale yard in the near tele marine airport in Melbourne’s taken 150 and there’s housing them.

So [00:01:00] it’s, it’s the worst part of nature and the best part of humanity, as someone said to see all this happen.

Cameron: Although I’d like to see humanity stop the fires from happening in the first place, I think that would be a better,

Tony Kynaston: Yeah.

Cameron: you know? Hmm.

Tony Kynaston: Well, I think they’ll

Cameron: Hmm.

Tony Kynaston: bushfires. It’s whether they’re uncontrolled is the issue.

Cameron: Hmm. Yeah, as we were talking about on the last show, like, you know, we’ve known for a long time that things are getting hotter and that we’re gonna have more fires and what are we doing to not, or prevent them if we can, and if we can’t, you know, sort of minimize the impact and the damage and the destruction of them better than we are currently doing because.

You know, they still seem to be hugely tragic events. So I was just reading about the LA Fires, which happened a year ago. The other day, I think it was the 12 month anniversary of that. They were talking about how many hundreds of thousands of people are still displaced in LA after all of that [00:02:00] happened.

Um.

Tony Kynaston: Yeah. Um, you’re right. I dunno about America, but in Australia it still seems to be a lot of finger pointing between councils and government departments and people who think we should be going back to First Nations and looking at what they do to manage bushfires, et cetera, et cetera. they

Cameron: Hmm

Tony Kynaston: occur.

So

Cameron: Hmm.

Tony Kynaston: they’re not effective.

Cameron: Well, speaking of effective solutions, um. Jerome Powell, apparently not very effective in rebuilding or renovating whatever he is doing to the Federal Reserves offices. And the Department of Justice has decided to open a criminal inquiry into Jerome Powell. Uh, we talked about this on the last show, what the implications of this might be.

Yeah. My understanding is like the big issue of this is the perceived. Political nature of the investigation. [00:03:00] Obviously President Trump has been very critical of Jerome Powell, who of course is a Trump appointee originally, but in this administration, uh, second administration of Trump has been very critical of Powell.

Powell has not been cutting interest rates as quickly or as often as President Trump would like, and there is this concern that if the. Perceived independence of the Federal Reserve as lessened that it could have implications for the market. Am I understanding that correctly?

Tony Kynaston: Yes it is. Uh, well, yes, you are understanding it correctly. Um, and look, it’s. It is been a long time since we haven’t seen an independent reserve bank or fed chair or, um, the European equivalents to those, uh, in various countries. So it’s hard to say whether Trump’s right or the chairs of the Fed is right in terms of interest rates and what they should be set at. But generally he’s [00:04:00] accepted that if, um, if you have interest rates set by the government, they will. Because they’re beholden to the electoral cycle, manipulate them to suit themselves rather than necessarily the long-term benefit of the economy. Um, which kind of begs the question that why isn’t the whole country run by technocrats if they do a better job of running the economy than, um, elected officials?

But anyway, that’s a different story. but, you know, well, I’d like to explore further, but, um, yeah, it’s, uh, it’s, it’s an interesting situation. Um. We see this in Australia from time to time and is often, uh, reported after the fact when, when things get announced, when. There’s enough time between the event and, and when it’s reported that, uh, the treasurer or the Prime Minister, they rang up and abused the head of the reserve bank for not doing the right thing that they

Cameron: Not gonna do.

Tony Kynaston: rates. so there’s always some kind of pressure going on between elected officials and the independent board. but the independent boards generally given [00:05:00] enough power to resist. It doesn’t mean they’re infallible. We saw a problem in Australia with interest rates. Um, when the RBA head here said there wouldn’t be interest rate rise for a couple of years, and then a few months later started to rise, interest raise interest rates, and that caused problems to people who’d acted on, his verbal, they predictions and took out mortgages, et cetera.

So, um, they don’t always get it right. Uh, so it’s, it’s. Generally, I think the, the RBA or, or the Fed should be independent. I think that’s the, um, the best, uh, framework for, for setting interest rates to affect the economy. But I’m not saying they’re infallible. I’m not saying crops wrong. Um, you know, as, as we discussed before, we, I thought tariffs would lead to inflation and they haven’t yet.

Whether they do or not, I’m not sure, but, um, you know, maybe, maybe the president’s right, interest rates should be cut. [00:06:00] It could just be a timing issue. I wouldn’t be surprised if the US does cut interest rates at some stage in 2026. Um, so maybe he gets his wish anyway, if he just let, leave things alone.

But, um, that’s not his style, is it really?

Cameron: Certainly now I’m pretty sure interest rates will be cut by someone. Hmm.

Tony Kynaston: Yeah. Yeah, By the current guy or the next guy. Mm-hmm.

Cameron: Well, that’s the big story in terms of the US market this week. Um, in terms of, uh, other stuff going on, you know, the, the whole, uh. Market’s been, um, still bubbling along over their little bit of an equity wobble, but um, I think things are still just chugging along, uh, in the US And I was saying to you just earlier, our portfolio has really been going quite strong over there recently.[00:07:00]

Um. For the last 90 days, our dummy portfolio is up 16% versus 6% for the s and p 500. Uh, since inception, our portfolio is now up 77% versus 57%. For the benchmark. So a couple of weeks ago we were sort of running neck and neck, but we’ve, um, just really rocketed back up again. It’s been an interesting period.

If I look at the last one year, uh, some of the stocks that have done really well for us are in Nova International. Year ago they were trading around about 98 bucks. They’re now trading up around 160.

Tony Kynaston: Oh.

Cameron: Uh, so it’s been a big year for them. Euroes, one of the shipping companies that we’ve held for quite some time, ESEA is their ticket.

They were trading around 26 bucks. They are currently trading around [00:08:00] 55. They were up over 60, uh, late last year. They’ve come back a bit. So, um, yeah, there’s been some, some other good ones. Um, UBS Ag, they were trading around about 31 bucks a year ago. They’re up at nearly 48 bucks today. Um, this, I’m just looking at the charts here.

There’s just lots of, lots of good stories right across our portfolio. One of the best ones though, in uh, last year, we haven’t held ’em for this long though, is career electric power that we, uh, talked about on the show a few months ago. Um, they were trading around about six bucks a year ago. They’re now up around 18 bucks, but, uh, yeah.

Tony Kynaston: What’s caused

Cameron: Hmm. Well, you remember we had this whole story about, uh, their inability to raise rates that were held back by the governments, and then all of a [00:09:00] sudden some of those, uh, holding the, that hold was taken off and they were able to adjust it and the, the numbers turned around. Anyway, the company that I’m gonna talk about this week, Tony, um, is another airline.

You know, we’ve talked about a few sort of airline related businesses over the last. A couple of months. Um, about a month ago I talked about Air Cap a ER, uh, which is sort of a, an Irish company that owns and leases our commercial aircraft. Back in October, I talked about American Airlines.

Tony Kynaston: Mm-hmm.

Cameron: Today it’s ticket code VLRS.

 Out of Mexico. Uh, better known as ris.

Tony Kynaston: I wondered how long it would take one [00:10:00] of us to sing that.

Cameron: Yeah, not long. Apparently the name is a Port Mano of Re and Polaris. I dunno whether Polaris North Star Bit comes into it, but there you go. So they’re an, this is an interesting company. They are a low cost, an ultra low cost airline out of Mexico. Launched in, well, according to their website, uh, ultra low cost airline with flights throughout Mexico, the US Costa Rica, Guatemala, and El Salvador.

Valis offers low cost airline tickets to develop the market, offering customers high quality service in a wide range of. Products we launched in 2003 when the Discovery Americas won, and Columbia Equity Partners investment funds joined forces with TACA airlines to create a new ultra low cost Mexican airline that would offer the opportunity to fly to a greater number of [00:11:00] Mexicans.

 And, uh. Basically they do what every ultra low cost airline. I think we mentioned when we did the a ER show that the guy behind a ER launched one of, uh, what’s the Irish one? Is it Ryanair? Yeah. He launched Ryanair.

Tony Kynaston: Mm-hmm.

Cameron: And the guy behind this is sort of the grandfather of ultra low-cost carriers, but basically they, for people who dunno what a low-cost carrier is, you know, they just sell really, really cheap seats and charge for everything else.

We have them in Australia these days. Yeah, if you want take bags, you have to pay extra seat choice food. You know, oxygen debris that comes extra. Uh.

Tony Kynaston: Landing.

Cameron: Yeah. Yeah. Oh, you wanna land? Oh,

Tony Kynaston: We’ll just

Cameron: oh, you say you wanna survive?

Tony Kynaston: here.

Cameron: Yeah, yeah, yeah, yeah, yeah, yeah.

Tony Kynaston: Uh.

Cameron: [00:12:00] Um, the core customer for valis are apparently migrant workers, families, domestic travelers, cross border flyers between Mexico and the us.

Uh, it’s uh, obviously. Running on fairly low margins, so they need to stay full. They need to turn around fast, they need to squeeze their costs relentlessly, and these guys don’t try and provide great customer service. These, this is like, it’s cheap. That’s basically what you get, and it’s basically the Ryan Air for Latin America.

Now, the guy, one of the co-founders of this is a guy called Bill Frankie. Never heard of him before, or Bill Frank. It’s got an E on the end of it. And he’s got a private equity firm called Indigo Partners. I looked him up. He’s a billionaire, American airline investors. He’s called the grandfather of ultra low cost carriers or ccs as they’re apparently known.

He’s the money in the brains behind the [00:13:00] unfortunately named Whiz Air, um,

 which is actually Chrissy’s nickname for me is the Wiz.

Tony Kynaston: would, would you like to get the marketing contract for? Was there?

Cameron: Wiz Air. Yeah. Chrissy, when I had long hair for a couple of years, Chrissy called me the Whiz because I looked like a wizard. But now I’ve got short hair again. I say, you can’t call me the Wiz anymore. She goes, yeah, no, it’s just, you’re stuck with that now forever. So, Hey Whiz. Yeah. Wiz Air, um, they’re a Hungarian ultra low cost airline, uh, group head headquartered in Budapest.

He also, uh, started Frontier in the USA and Spirit Airlines and basically Indigo do this over and over. So they’ve got a, a basic playbook for your low cost airline. And the playbook is this. You buy Airbus planes in bulk to get massive discounts. You jam. [00:14:00] As many seats into them as possible. You take out everything else in the plane and you charge a fair so low.

It basically kills the competition in this space. So this isn’t some, like these, these Valis folks aren’t some one-off operation. This is run by the Indigo machine. These, these people have been doing it for a long time. They’re very, very good at it. They’ve got low cost airline, DNA, they seem to know what they’re doing.

The CEO, who, uh, is one of the co-founders on.

 When they asked him how he planned to steal market share from Aro Mexico, he famously replied that Aro Mexico wasn’t his competitor. Do you want to guess who he thought his competitor [00:15:00] was? Nope.

Tony Kynaston: Oh, well. Um, so who are the ccs in America? Uh, Southwest. Um,

Cameron: Buses.

Tony Kynaston: okay. I give up. Who? Yeah. Right. Okay.

Cameron: I’m not competing with other airlines. Yeah. Tunnels. I’m competing with tunnels. Yeah.

Tony Kynaston: uh,

Cameron: Uh, yeah. In Mexico, roughly 3 billion trips are taken by long haul Luxury bus every year.

Tony Kynaston: right.

Cameron: And so his business model, or Polaris’s business model was basically to convert bus passengers into airline passengers by saying instead of taking 10 hours, you can get there in an hour and making it.

Cost competitive with a bus trip. Plane. Uh, Avion. Apologize for my bad Spanish there, but it basically apparently means plane at the price of a bus was their [00:16:00] business model.

Tony Kynaston: Yep.

Cameron: Which is pretty smart. Um, today, roughly 43% of Valis routes don’t compete with another airline. They only compete with a bus line. So they’ve got sort of a monopoly on these route.

Um, and it’s, yeah, going after the, the, the bus businesses.

Tony Kynaston: So you buy Lar, buy RIS and Short Greyhound. That’s the trade.

Cameron: Yes, yes. They introduced things called V Club and the zero fare. Zero fare was basically you got a seat and nothing else. You couldn’t even take a carryon on you. You were allowed, uh, a small personal item. No, no carry on, no checked bag, nothing.

Tony Kynaston: people walk

Cameron: And.

Tony Kynaston: looking really big? ’cause they had all their clothes for their holidays all at the same time.

Cameron: Yeah, I’ve, I’ve, I’ve been with, I’ve been with, uh, [00:17:00] yeah, one of my kids who’s done that before, like, you know, when he is back, I think it was Hunter, or when his, uh, luggage was too heavy. His carry-on just starts, you know, wearing everything. He can stuffing it down this jacket or whatever. Um, these Faires apparently was lost as 10 or $20 USD, the zero fair.

Um, I went on their web website though, and looked for airfares to try and figure out how cheap they really are. Mexico City to Austin, and I was booking it a month out, so mid-February was about 184 USD plus a $66 airport fee. Uh, to LA from Mexico City. It was $113 plus the airport fee. So I couldn’t figure out how to book a zero fair.

I even jumped into their little AI chatbot thing and said, how do, how do I book a zero fare? I was like. I can’t help you with that. So I don’t know if that’s still a thing or not, or it was a thing that they launched with, but they’re cheap. It’s a, it’s a, still, it’s a budget [00:18:00] airline. Maybe some of these other towns that aren’t as big as Austin or la uh, are cheaper because they fly to a bunch of different places that are sort of random cities all over those regions.

I mentioned before. Um, so it, they’ve had problems though. So airlines as we know are, are cyclical pain machines. COVID nearly killed demand for airlines. Obviously for a while. Fuel prices spike and, and crush margins. The USD versus the Mexican peso makes life difficult for these guys. And the big problem, uh, in recent times has been the Pratt and Whitney.

Issue that we have mentioned on previous episodes briefly. Um, prat and Whitney or PNW? The P-N-W-G-T-F Oh, if I was them, I’d call it the GTFO, but the GTF engine [00:19:00] recall geared Turbo fan, they’re used on the Airbus A three 20 Neo aircraft. We’re found to have powdered metal contamination in critical engine components.

The result was accelerated wear and a requirement for mandatory inspections in early removals. Engines have to come off wings. It was a big deal. Now these guys, uh, were heavily impacted by this because they, you know, they’re all a buses, so they had to ground roughly. 30% of their fleet and it hit them really, really hard.

But not really bad management, just unfortunate engines. I believe Pratney, Pratt and Whitney are paying them, um, sort of, uh, what do you call it?

Tony Kynaston: Compensation.

Cameron: That’s the word. Yeah. [00:20:00] Compensation for all of this. Uh, but it’s caused disrupted schedules, higher maintenance costs, lower fleet utilization, and really hit their numbers pretty hard.

So, uh, they, their numbers have. If you look at it on Edia, I’m just gonna bring up their chart right now. You know, they’ve had a rough couple of years, but again, I think it’s, it’s mostly related to this, um. Uh, situation. So they made a loss last year. They’ve had, they’ve had a couple of loss years over the last four or five years.

COVID obviously 2020 was a bad one. 2022 was another bad one. And this year they’re expected to make a loss. 2025 estimate is a loss of 85 mil. And then. Back to profit in 2026. Not a huge net profit, though. They’re looking at 4 million, [00:21:00] um, as opposed to 126 million in 2024, but their revenue has gone from 1.8 billion in 2019.

The estimate for 2026 is three. Point four, 1 billion. So that’s a lot of growth. Uh, operating margins have been all over the place, as you might expect with a business like this. Not really paying a dividend. They, they’re sitting on quite a bit of cash, but, uh, they’ve also got a ton of debt. Their debt’s up around $3 billion.

Um. But, you know, airlines live and die by their cash. They’re, they can carry debt. They’re buying a lot of airplanes. Obviously that’s part of the business model. I’m not too worried about that. Um. It really comes down to how well they know how to run a business. And I, uh, run this ultra low cost airline business.

And, um, I think these Indigo [00:22:00] guys seem to know what they’re doing. They’ve been doing it a long time. They just got hit badly with this GTF issue over the last, uh, year or so, but they’re generating a lot of cash from our perspective. Um. Prices around about $9 45 market caps, a little over a billion dollars.

Average daily trade is roughly 5 million. They’re liquid enough. I think for institutions. They’re not a micro cap play. Um, but they’ve got a negative EPS for the year forecast. EPS for one year is also negative, so it’s probably scaring off some institutions I think at the moment. This is not a near term turnaround though.

On earnings. This is, um. You know you’re gonna be waiting a year or two before this really turns around. But the [00:23:00] share price has been recovering. The share price was as low as $3 68 going back April last year. It’s already recovered to $9 52. So the market’s been readjusting this over the last nine months already.

I think it already sees that these guys are gonna get back on a solid footing. In the next, uh, maybe two years. It’s not gonna happen quickly, but it’s also not gonna take, you know, five years assuming that they get through this. And there’s no other hits that, uh, come out of nowhere. Uh, if I run through the numbers from a QAV perspective.

Look at our scoring. Average daily trade, I said is about 5 million. Big one for us is the price to operate in cash flow, which is 1.36. It’s insanely cheap. From our perspective. Quality rank on stock, [00:24:00] EDIA is only a 45, so I can’t score them for that. The stock rank though is above 90, so we scored ’em for that.

Their REF score is a four. We only scored if it’s above or equal to four and a half and above, so we couldn’t score it for that. They report in pesos, uh, or MXN and uh, I had to adjust some of our metrics to accommodate for that, but it didn’t really change the scoring for their IV one or IV two. Didn’t score ’em for IV one or IV two or price, uh, equal to or price less than book or price less than book and plus 30, couldn’t score him for any of that.

They don’t have a new three point upturn. PE is not less than the yield because they don’t have a yield. Um, basically at the end of the scoring, I gave them a six out of 11, which is only a 55% quality score for us. But the prop calf really was quite strong, so they [00:25:00] ended up with a QAV score of 0.4, which is pretty high for us.

Um, but you know, I, I kinda look, I like the look of this one, Tony. I think it’s a good business. So you sound surprised

Tony Kynaston: uh, yeah. Um,

Cameron: you don’t like it.

Tony Kynaston: oh no, it’s not that. It’s just the air, just, uh, investing in airlines is, can be, can be risky. Um, as

Cameron: Yeah.

Tony Kynaston: points out, but, but this

Cameron: Yeah.

Tony Kynaston: this is certainly fitting all our numbers. Anyway, couple of things I picked up on when I had a look at them. Um, I mean the, the benchmark is Ryanair and. I mean, I think there’s two metrics which are always important for airlines. One is called tram and one is called chasm. So is total revenue per available seat mile and chasm is cost per available seat mile. They’re just KPIs, which roll up a few things and then express ’em in a ratio. [00:26:00] uh, these, the, those metrics are pretty good. For Valis, um, but still not at best practice. So Ryanair, for example, which tends to be best practice, their chasm, their cost per available seat mil is down around 4 cents. Uh, VALIS is currently just below 8 cents. So nearly twice the cost per seat flowing as, um, Ryan there, but they’re still making a margin of 8 cents because their revenue, um, is 8.65 cents per available seat mile.

So just eking out a small margin there. Um, but certainly has work to do on costs. Uh, a lot of that comes down to how good they are at filling seats, and they’re currently yielding So out of all the seats flowing or all the planes flowing, they’re 84% full, which is pretty good for an airline. Um, I didn’t get the numbers for Ryan error on that one, but benchmarked against some other ccs.

That’s not a bad number. [00:27:00] Um. Um, but if you look at the, your price, it’s, it’s pretty much at its low point for a long time, it’s back at 60 bucks a barrel. that turns around, then that will hurt their costs. and the other thing which I felt I found interesting in looking at their numbers was that more than half of their revenue comes from what’s called ancillary, ancillary revenue.

So baggage fees and seat selections and food. Et cetera. So that’s a, that’s, yeah,

Cameron: landing.

Tony Kynaston: the majority of their, their income, which I find interesting as well. So, um, uh, a lot to like about them as you say, but they, to me, they’re kind of on a bit of a knife edge as well, that, that cost the margin isn’t very high.

It’s, it’s very low.

Cameron: And how much of that is related to the Pratt and Whitney kerfuffle and increased costs? Yeah.

Tony Kynaston: and the

Cameron: Hmm.

Tony Kynaston: had been negative there for a while, so that could have been because of that. I

Cameron: Hmm.

Tony Kynaston: think the [00:28:00] share prices doubled on the back of the fact that they’re coming outta that and they’re back to profitable margin and they’re back to making a profit, um, fairly soon.

So, uh, yeah. Um, look, I, I. As you say, experienced operator, successful around the world, but, but just thin margins, um, in this business. And, uh, it

Cameron: Mm.

Tony Kynaston: to the, to affect it in terms of the oil price or something else happening, like COVID or whatever. So, um, certainly by, at the moment, but perhaps not a long-term hold,

Cameron: Donald Trump arresting the President of Mexico and taking over Mexico. And running Mexico. I mean, that could be good for him.

Tony Kynaston: could be. It be, well, yeah, they could start operating into Venezuela. I think I told you last week, I read that Michael Palen book about Venezuela, and there was

Cameron: Yeah.

Tony Kynaston: airlines in the world allowed to fly into Venezuela and he had to fly through Turkey or something to get there. So, yeah, if that changes, that could be a, a bit of a bounty for the airline industry as well. [00:29:00] Hmm.

Cameron: Yeah, well, I like, for me the high level stuff was, um, they are run by this Indigo group who seemed to have a long track record and know what they’re doing and, uh, they’ve had a bit of a bad run because of the Pratt and Whitney engine thing. But, um, still very low price to operating cash flow and, uh, seems to be a reasonably well run business as far as I can tell.

So anyway,

Tony Kynaston: Yeah.

Cameron: it was very, wasn’t at the top of our buy list or my buy list this week, but the one that was at the top became a Josephine after I ran the buy list. And it was a bit scary too, as a company called T Tech, um,

Tony Kynaston: They

Cameron: uh, ac No, they do call centers

Tony Kynaston: okay.

Cameron: and um,

Tony Kynaston: They’ll be outta business

Cameron: they’re. Well, that’s part of the story with TEI started to do a, um, a [00:30:00] deep dive on them, uh, until I rechecked them yesterday and they’d just become a Josephine.

But yeah, they’re trying to say, oh, we’re gonna, we’re gonna be the AI trans, we, yeah, we’re gonna do all the AI stuff. It’s gonna be, you know, you know, we’re gonna a, we’re gonna be the AI call center solution. They’ve been around a long time. But, uh, it’s a hard, it’s a hard sell. You know, that they’re gonna make, manage that transition.

Actually career, uh, once I took them out, career Electric Power is still at the top of my buy list this week, and, but we’ve already done them. So VLRS was number two

Tony Kynaston: no.

Cameron: on the buy list.

Tony Kynaston: And look, you know,

Cameron: Hmm.

Tony Kynaston: as you know, we don’t tend to focus on the analysis. It’s the numbers and they’re stacking up quite well for this company.

Cameron: Yeah. So, there you go.

 AKA ris. Yeah. I have added them to our QAV light, uh, America Light [00:31:00] buy list, which I gotta be honest, hasn’t had a good couple of weeks. Uh, GTN is now down 15% since I added it. And A MCX has down 13% since last couple of weeks. Um.

Tony Kynaston: at the Golden Globes or the Emmys or anything.

Cameron: Yeah, they haven’t been successful in creating.

Tony Kynaston: Series 10. Didn’t pull off any Emmys.

Cameron: Yeah. Yeah. Um, but zip A from last week is up two and a half percent since last week. So it’s holding, its end up. The other guys need to lift it, lift their game.

Tony Kynaston: And as we know from the Australian light portfolios, they can take some time to get established and then outperform. It doesn’t just happen straight away, so it’s early days.

Cameron: Yeah, and I’m giving, and it’s been the, the US market’s been a little bit rocky over the last couple of weeks, so I’m not too worried about it. But if I look at the, [00:32:00] um, other pulled porks that I’ve done over the last year. Um, there’s been, you know, some great performance still from some of these top golf you’ll be happy to know is up 34% since we talked about it.

That was only early November, so

Tony Kynaston: Send them a

Cameron: I wish I’d been able to add that.

Tony Kynaston: Fantastic.

Cameron: highlight? Well, Zep is, uh, still up 800% since we talked about it. The Chinese smartwatch manufacturer and, uh.

Tony Kynaston: What about what you’re talking

Cameron: Chemics. Well, they’re actually in our portfolio and, uh, yeah, they’re still going strong. They are still up. I think, let’s see, 251% since we bought them. Um, doing great.

Tony Kynaston: Hmm.

Cameron: So they’ve, they’ve had a big, um, they’ve had a good sort of couple of months [00:33:00] too.

They were down, they’d fallen down to 120. As of the end of November, they’re back up to 166. So. We had lost a bit of ground with them over this year. They’d, after being up 300%, they’d slipped down and pulled their portfolio down as they went, but they’re recovering, so that’s good.

Tony Kynaston: Good.

Cameron: I saw some news from them.

Uh, this week they’re looking at selling off some sustainable fuel division that they have, which is apparently, uh, giving them a little bit of a bump. People are happy about that by the.

Tony Kynaston: Right.

Cameron: But lots of it also an an aircraft business. Um, a lessor and servicer of commercial aircraft and aircraft engines. So, you know, we often talk about how it’s funny that certain sectors turn up in our buy lists at certain times and shipping and airlines and television and power generator and finance companies have been big in [00:34:00] our North American show over the last year.

Dunno why, but there you have it.

Tony Kynaston: Yeah. And we never do. We just turn around and say, huh? That’s, that’s, that’s what we’ve been focused on lately.

Cameron: That’s weird.

Tony Kynaston: Ooh. Yeah.

Cameron: Alright. That’s the show for this week. Thank you tk.

Tony Kynaston: cam. Thanks for that.

Cameron: And if anyone, uh, has any requests for next week’s show, anything you’d like us to focus on, uh, shoot me an email cr at QAV america.com and I will try and make you happy.

Tony Kynaston: Thanks, cam. See you next week.

Cameron: Have a good week.

Bernard: Q A V is a checklist-based system of value investing developed by Tony Khighneston over 25 years. To learn more about how it works and how you can learn the system, visit our website, Q A V Podcast dot com.

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