Cameron: [00:00:00] Welcome back to QAV America, Tony, episode 37. It is 27th of January, 2026 in Australia. It’s, uh, 1935 in the United States. Uh,

Tony Kynaston: Well, and also very cold. Apparently, I, my condolences to anybody has been affected by the freak cold snap over there where it’s not usually happening.

Cameron: My regular co-host in my history shows Ray Harris, who’s in Virginia, sent me a photo out of his window earlier today. There’s a lot of snow outside the front of his house.

Tony Kynaston: we’re sweltering

Cameron: Very cold.

Tony Kynaston: like

Cameron: Yes.

Tony Kynaston: fifth day of

Cameron: Mm,

Tony Kynaston: degrees Celsius.

Cameron: warmest place on the planet. Apparently Australia is right now

Tony Kynaston: What’s,

Cameron: place in the planet.

Tony Kynaston: Celsius and American terms. So there’d be 110 maybe.

Cameron: Oh yeah. Bloody, [00:01:00] bloody hot, Tony. Bloody hot. Well, uh, look, before I get into my deep dive, my little walk down Wall Street today, Tony. Um, we had the Sell America trade going on last week when Donald Trump threatened to throw more tariffs on Europe, but we just made a deal. They said, I don’t care. He said, deal Shme.

I’m the art of the deal. I just break the deal and throw more things in. But then he tared on that as he often does when they agreed to let him invade Greenland or whatever the hell he’s gonna do today. So the, the market had a bit of a conniption for a few days, did affect our US portfolio. Um, let me just bring that up so I can tell you.

Well look, our portfolio, our, our main US portfolio that I’ve been running for a couple of years is doing great. Um, the new one that I started, the light [00:02:00] portfolio that doesn’t have its legs under it yet, and a lot of the stocks that I’m buying were very close to their sell lines anyway. They just etched above them.

Um, became a buy. I’ve had to sell a couple, but, um. Oh, it looks like our US one has gone back a little bit too. Anyway, for the last 30 days, our US dummy portfolio main one is up 15% versus the s and p 500, up 0.29% in the last 30 days. So it’s still all right, uh, VV versus that.

Tony Kynaston: of

Cameron: Um,

Tony Kynaston: in a month.

Cameron: since inception.

Tony Kynaston: Yeah.

Cameron: Yeah. Since inception, which is, uh, September, 2023, our portfolio is up 92% versus the s and p up 56.

So not quite double market, uh, but doing, doing pretty good like in the last 30 days, no last three months, [00:03:00] it’s up 21% versus the s and p up 2.3. So it’s particularly since the beginning of the year, it’s done quite well. The light portfolio though that I only started a month or so ago, I think late December, not doing as well.

It’s down two and a half percent since I started it versus the s and p up 1%, and I have had to sell a couple of things recently. I sold. A MCX this week. A MC networks breached their three point trend line. And also a MTD idea that we talked about recently. Uh, no, hold on. I haven’t sold those. Um, they, they are a cell, but I’m holding onto them just because I’m being bloody minded about it.

Uh. I told you last week, I’m giving, I’m giving all of these stocks a month to settle in before I sell ’em, because they’re so close to their sell lines. When I buy ’em, they go up a buck, they go down a buck, you know. But I did sell GTN Media last week, um, which I’d held onto for about a [00:04:00] month. And A MCX I’d held for about a month.

So I was like, well, that’s it. Your grace period is over. Um, but VLRS. That I added last week is up a couple of points, which is, that’s good. And I’ve also added the stock that I’m gonna talk about today, which is ticket code, CHRD, cord Energy, AKA, the Williston Whale, a Symphony of Shale is the title of this episode that.

Oh, Google Gemini came up with that for me. I said, come up with a clever, come up with a clever title. That’s what it came up with. The Williston whale, A symphony of shale. Now, I dunno a lot about, we’ve talked about shale from time to time on our podcast, particularly when we’re talking about crude oil and the markets and pricing.

But I, I’m not sure that we’ve done a deep dive on a shale oil company before. Uh, and what I’ve learned in doing [00:05:00] this is. A lot of developments in shale oil technology, largely driven by this company in the last couple of years. So it’s a whole new era of shale oil and fracking that changes the, the dynamics in the economics of shale oil.

In theory, we’ll see that plays out, but that’s the theory. So the Williston whale, uh, Williston is a city. In North Dakota, Tony, um, everything I know about North Dakota, I know from watching Deadwood. Um, uh, and I think Fargo,

Tony Kynaston: Minneapolis, isn’t it?

Cameron: um,

Tony Kynaston: Minnesota,

Cameron: uh,

Tony Kynaston: Yep.

Cameron: I dunno. Yeah. Could be. Sure. That’s all I know. That shows you how much I know.

I don’t know anything. It was, uh, Williston was founded in 1887. Named [00:06:00] after Daniel Willis James, a merchant and capitalist by his friend, railroad Magnate James J. Hill. So it’s Willis Town.

Tony Kynaston: financing. Then they should name a

Cameron: No it wasn’t. Who’s the number one?

Tony Kynaston: Yeah.

Cameron: Well, we’ll name a town after then ’cause they’re up 300% in our US portfolio. Wasn’t named after what you’re talking about. Willis, either or Bruce Willis. So they, they were my first two guesses. It is the birthplace of Phil Jackson. 11 time NBA championship head coach of the Chicago Bulls.

I think also the Lakers he went to after the Bulls, if I remember the Michael Jordan documentary, um, we often talk about Don’t bench Michael Jordan. And Phil Jackson never did bench Michael Jordan and that’s why he won a lot of NBA championships. So crude oil is, um, a buy on, uh, our. Uh, buy list this week for new listeners to [00:07:00] QAV.

Uh, one of the things that we track each week is where certain commodities are, because particularly in Australia, a lot of the stocks in our buy list are mining stocks. And Tony has learnt over the years he’s been investing that if the underlying commodity of a stock becomes a buy or a sell based on its trend line.

Stocks that are predicated on that or, or that commodity, whatever it is, their share price will tend to follow. There’ll be a lag, but tends to follow. So, um, if something beca, if a commodity becomes a buy, we then are able to buy the share price of it too, becomes a buy the, the, the stock. And if a. Stock with an underlying commodity and that commodity becomes a sell, we will often sell it.

Um, crude and LNG have both been sell for us for quite a, quite a while. They both became buyers again this week. Whether or not that has anything to do with Venezuela, um, dunno, but[00:08:00]

your theory that Donald Trump’s going to put, you know, tow Greenland down to Venezuela and join them together.

Tony Kynaston: It’s a great

Cameron: So he can go skiing now. He’s the president of Venezuela. He can go skiing in Greenland.

Tony Kynaston: And surfing in Venezuela.

Cameron: Who knows?

Tony Kynaston: Yeah,

Cameron: Got the best of both worlds. Uh, speaking of midnight oil, so you stand, imagine this, Tony, you’re standing in the middle.

Uh oh. Midnight oil. We were just talking about Australian rock band. Midnight oil, not shale oil. I dunno which oil, midnight oil is, but uh, it’s black like midnight. The drummer of, uh, 1970s Australian. Well, they’ve been around since the seventies. Been on all the, the founding member and drummer Rob Hurst passed away this week.

It’s very sad if you’re an Australian Rock fan and if you’re not, uh, if you dunno, midnight all you’re an American, jump on Spotify or Apple Music and have a listen to some of the greatest hits of Midnight Oil. You probably [00:09:00] know a couple of ’em because I think they got quite a bit of, uh, traction in the US over in the nineties and two thousands.

Tony Kynaston: us talking about a shale oil company, I don’t think.

Cameron: No, they were environmentally greeny, uh, com, uh, rock band, very political. So imagine this, you’re standing in the middle of a frozen North Dakota field beneath your feet. A drill bit has gone down. Then, oh, look at my broken knuckle. See that finger? I can’t. If you’re not on video, you’re missing this. The visual, my broken, my broken knuckle finger.

This cannot go. I can’t straighten it out. The bit is doing a 90 degree turn and traveling four miles horizontally through.

Tony Kynaston: field. Yeah,

Cameron: Yeah, yeah, yeah, yeah. Saddam Hussein would’ve loved this. It’s, it’s going all the way to Q eight,

Tony Kynaston: oil beneath the, the [00:10:00] school and they had all these meetings about what to do with it and everyone thought they were gonna be rich until Monty Birds brought in the slant drilling company, went underground and

Cameron: right?

Tony Kynaston: Yeah.

Cameron: Yeah. I think that’s what Saddam Hussein accused Q eight of doing back that led to Gulf War I. So it’s, uh, cracking through rock harder than a sidewalk the company doing. It was left for dead in 2020, but today is the undisputed heavyweight champion of the backend. Um. When I first read that, I thought the backend was either a mythological underwater monster from a Lovecraft book, or was a bad guy from like a Mortal ko.

I think like the big boss you have to fight in Mortal Kombat is the Backen, but the backend formation is a massive 200,000 square mile subterranean geological unit spanning North [00:11:00] Dakota, Montana, and Canada. Which is known for harboring vast reserves of unconventional oil and natural gas, and that’s what these guys are tapping into.

They’re the Frankenstein of the backend though, because they were built out of the dead bodies of other oil companies, fracking companies.

Tony Kynaston: That’s a great image.

Cameron: And fracking companies themselves are, you know, mining dead animals. So this is a company built on the dead companies that were built on the dead animals of the, uh, whatever period the back and oil reserves come from.

So it’s ancestors were two companies called Oasis Petroleum. And Whiting Petroleum. They were two rivals that were doing fracking in the Williston Basin. During the shale boom of the 2000 and tens, they fought [00:12:00] over the North Dakota dirt and the oil underneath it then came 2020 COVID hit, and I had forgotten this, but the oil price didn’t just drop.

It went negative at one point, it was negative $37 a barrel. At one point you had to. Pay people to take your

Tony Kynaston: you were paying

Cameron: oil.

Tony Kynaston: at one point, weren’t you? ’cause you couldn’t sell it. Yeah,

Cameron: That’s right. It was, it was a disaster. So both of these companies went bankrupt, but the way that they went bankrupt. Well, yeah, but the kind of Chapter 11 bankruptcy that they took was not good for the shareholders.

Tony Kynaston: Never is.

Cameron: ended up with? Well, yes, but they ended up with not nothing, [00:13:00] nothing but almost nothing.

The best, like, yeah, it was pretty much nothing.

Tony Kynaston: oil

Cameron: Um

Tony Kynaston: I thought they were sitting on the oil reserve under the school, but.

Cameron: Oh yeah. So, um, CORD hasn’t just stopped with those two. It’s, it’s a bit of a predator. They also, in 2024, bought a company called N Plus, which is a massive Canadian based, uh, fracking company and an $11 billion deal. So they now control 1.3 million net acres, which is an area larger than the state of Delaware.

And have become basically the dominant force in fracking in North Dakota. But let’s get into this history a little bit because I, I assume that the reason it’s cheap, uh, in our buy list this week is because institutional investors don’t wanna touch it after [00:14:00] what happened to it, um, five or six years ago.

So. Shale 1.0 2010s. Uh, these two companies, oing and Whiting, oh, sorry. Oasis and Whiting were the poster children.

They had spent billions drill in North Dakota, but they had borrowed those billions of dollars. So between them, they were carrying over $5 Billion in debt. COVID hit share, price crashed and it was a big disaster. So. Uh, they went belly up and it wasn’t just COVID that hit as well. OPEC plus Saudi Arabia and Russia saw that as a great opportunity to kill these American companies. So there was an all out price

along at the same time,

Tony Kynaston: Yep.

Cameron: and they were specifically targeting high cost producers, US shale producers, flooded the market with cheap oil. [00:15:00] And that sort of killed these guys. So, But both of these companies used what’s called a prepackaged. Chapter 11. I’m, I think of it as a bit like a prenup. when they went into chapter 11, the deal was the company made a deal with the banks and the bond holders. That was a total transfer of power over to them, and they forgave billions of dollars in debt in control for a hundred percent of the new company’s stock. That totally erased all of the Wall Street pension funds and index funds equity in these companies. There was no recovery. There was no 10 cents in the dollar. It was just. Immediately gone, uh, canceled, declared worthless. Thanks for coming. Have a nice day. If you owned a thousand shares on Friday, you woke up on Monday with [00:16:00] dust.

That was it. It was done. There were lottery ticket warrants, so to avoid of legal warfare, apparently old shareholders were given warrants, long-term options. But the strike price was set at for Oasis, $94 57. That was so high. It felt

at the time, and in

Tony Kynaston: Yep.

Cameron: the share price for Court energy today is $95 and 53, so it is only now. Uh, back to where it was. I mean, so it did get higher than this. By the looks of it, 2024, it was up as high as, uh, 160 bucks. Uh, 185 bucks actually. but they basically, at the time it looked like that was a joke, but that was what they were left with. They were offered these, uh, warrants. So sort [00:17:00] of the background story with these guys.

Um. And the oil price has been down, as we know for the last year, their share price has gone down with it. I assume that that’s a large part of why the share price has collapsed since, uh, the $185 days. They’re also a pure play. I guess that’s one of the challenges with these guys. So they’ve got a dirty history, oil’s been down. They’re not like, um, a Chevron where they’ve got oil fields all over the place doing different things. It’s, it’s basically North Dakota. If North Dakota goes bad, um, then you get hit with problems, laws, pipeline freezes. I don’t know any sort of these sorts of issues can have. But the guy that runs the company, a guy called Danny Brown, who’s the CEO, he’s a mechanical engineer by trade.

He runs the company like a semiconductor fab. Um, and as I[00:18:00]

new

Tony Kynaston: It’s like a what?

Cameron: A semiconductor fab. He runs a, like an engineer, like he’s not a, he’s not a kind of guy. Oh, okay.

clean, brutal operation by the sounds of it. they’ve been the key proponents in this, what’s called the four mile lateral. So they’re the world leader horizontal drilling. There used to be two miles was the best you could

They can now do four

Tony Kynaston: Wow.

Cameron: It’s fairly new, I think, the last couple of years, and it’s a pretty big deal. Basically, as I said at the beginning, you, you drill a vertical hole, you hit the oil, used to just do that and stop, then you go down, you stop, you turn and you keep going you can, I like almost double your output with no extra

[00:19:00] Once apparently, all of them,

Tony Kynaston: Right.

Cameron: of the cost is the initial drill down Once you drill down everything, you get out of that. layer then is

Tony Kynaston: I imagine there’s also,

 get to pick, you can drill down in Soft Rock, which would be much easier than curling through Hard Rock.

’cause the other option is to move the rig to a different location and go straight down again. Yeah. I.

Cameron: So it’s about 70 football fields, um, is how far they can go horizontally. apparently the rock layer that you are going through is about the size of a house, so it’s not huge. Once you get it, you wanna suck it dry like a Vampire like blade Blade. Half Vampire and he doesn’t like to drink blood. He, he, he has a, a serum that he takes that stops him from having the hunger. Sorry. I’ve been watching Blade Films [00:20:00] listeners, if you’re wondering why I’m going on about Blade and going back to the Old Blade films, it’s, they’re pretty awesome. First one. Awesome. So they break even. Uh, now we’ve talked about shale on the show over the years, and we’ve talked about how shale oil companies only make money when the if it

Tony Kynaston: Correct. Yep.

Cameron: screwed because they’re high, cost producers. That’s

Tony Kynaston: kind of always viewed as a sponge because, um, of the oil industry, because it’s self-fulfilling. Once, once they start to, they can produce when the price is high and what’s the cure for high prices?

 More, more volume. So

they, they flood the market, which drives the price down and they have to shut up again.

So yeah,

they’re the, they’re the,

they’re the kind of top of the cycle producers.

Yeah, Oh, okay. They’re the peak, peak

Well, PCO means something different, but yeah, big price. Yeah.

Cameron: doesn’t really work, does it? Yeah.

Tony Kynaston: Yeah.

Cameron: [00:21:00] So apparently that’s no longer true with these guys, So

they can make money even if the oil drops a barrel.

Tony Kynaston: No, that’s good.

Cameron: They, and they’re making a of cash off of what they’re operating, um, with no debt because they offloaded all their debt.

So they got rid of all their debt. Few years ago. It was a great deal. a, it’s a Donald Trump kind of deal. I just go bankrupt, get rid of all my debt, keep running. He’d love this company, I’m sure. So shale, so I, you know, I was having a conversation with Gemini about this and I was like, I thought shale companies, you know, could only make money when the price was high.

And they go, well, that’s the shale 1.0 argument. That was true 10 years ago, no longer true. That’s an out of date argument. It so, um, combination of not just the four mile laterals, but also massive consolidation. The best in class operators [00:22:00] like Cord low breakevens, even in the low

or the fifties.

Tony Kynaston: Okay.

Cameron: it says Saudi Arabia can pump oil for $10 a barrel, but they need $80 to fund their national budget, social programs, all of that kind of stuff. Cord doesn’t have to fund a country, it just has to fund a balance sheet it can at lower prices than OPEC can. I reckon. So. And I guess, uh, Putin needs to fund a war machine. So these guys, you know, it, it, used to have this idea that when the price dropped shall, oil companies needed to stop. Apparently that’s no longer true. What they probably won’t do

wells

Tony Kynaston: Right.

Cameron: drops, but wells that they’ve already got

they can keep running and

Tony Kynaston: Yep.

Cameron: generating cash.

It’s once

it’s drilled, once it’s fracked, they can keep. it dry

Tony Kynaston: Mm-hmm.

Cameron: um, it’s the, [00:23:00] apparently the cost is as low as like $15 a barrel to keep pulling it out. So it’s not that expensive than Saudi oil They don’t shut down old wells, they

just stop drilling new ones. So. Apparently this is the secret weapon, is that it’s modular. If Exxon is building a $10 billion offshore platform in Guiana, they’re committed for 30 years. If the oil price crashes tomorrow, they still have to finish that $10 billion project. Cords, businesses modular. They spend their money in relatively small increments, $10 million, like one well at a time. the market gets ugly, they just stop the next increment.

But they can keep. You know, sucking oil outta what they’ve got. They’re not expensive and they’re adaptable to the price if they keep their costs down and they run a lean, mean sort of an operation. The other part of the, the shale oil myth that [00:24:00] I drilled down on is this idea that they pretty quickly.

Tony Kynaston: Yep.

Cameron: That it loses about 60 to 70% of its production in the first I’d always heard. So you have to keep moving around. You have to keep drilling. Um. Apparently the counter argument to that is they get most of their money back in the first 12 to 18 months. They’re not waiting 20 years to see a return on this. yeah, it costs ’em $10 million to drill, but they get it all back, most of it back in the first year,

making profit,

Tony Kynaston: Right.

Cameron: get after that. So it’s a, it’s a sort of a, I don’t know,

it’s like a. What, what do you call those stores

Tony Kynaston: Yeah.

Cameron: Do

Tony Kynaston: stores.

Cameron: store and sell mobile phones.

You know, pop up quickly, Mm-hmm. and then they can get out.

So. bankruptcies didn’t happen because the model failed. It happened because the capital [00:25:00] structure failed, and it was a bit of a black swan, um, event too. But now the new court in 2026 has almost zero debt, low break even, and is returning cash to shareholders. So. I’ll run through the numbers now. So you see what I’m talking about. Um, share prices I said is about 95 bucks. Market cap is about 5.4 billion USD there EPS at the moment is about. $9 16. Their forecast EPS out a year is $9 52. The yield at the moment is 5.44. PE is running about 10.4. Operating cash flow is about [00:26:00] 2.2 billion at the moment, according to stock Pedia. Pretty large volume. Average volume is about, uh, 747 million daily trade, so pretty big. Um, Petrovsky F score is about a six. Pretty good. The quality rank is only a 64 stock ranks only a 64 in stock edia, so it doesn’t really our bubbles there or the quality rank’s good. We’ll score anything over a 60, but the key thing of course, that we look at is price to operating cash flow The price to operating cash flow is 2.47, not as low as some of the companies we’ve seen recently, but, uh, pretty low. Um, and it’s generating a, a ton of cash. Um, it’s when I went through the checklist, it scored for quality rank. As I said, it’s a 64. We’ll qua, we’ll score anything over a 60, didn’t score. for stock rank, did score for F score. The price [00:27:00] isn’t lower than our IV number one. Our IV number one is, uh, $47, but it is lower than our IV number. Two, which is $98 80. less than that, but that’s good enough. Price

is lower than book. The book price is, uh, where’s the book? Price to book? I’ve got at,

 uh, uh, 0.67. Where’s the book?

Price Equity per share is, uh, $141 98. So it scored for price lower than book obviously. Also, scores for price lower than book plus 30 does have a new three point upturn. over PE is not greater than 1.5 though. PE is not lower than, the yield bank is not higher than, uh, so the yield is not [00:28:00] higher than the mortgage rate forecast I IV not greater than double the share price, but it’s scored for 11 out of $14, quality score of 79% and a QAV score of 0.32. So, um. There you go. That’s the shale oil

Tony Kynaston: I saw a couple of things too in their announcements, which I liked. Um, so they’ve been doing a big share buyback and their policy apparently is to use free cash flow either for buybacks or dividends or both. Um, they’ve been returning all surplus free cash flow to shareholders, which I like.

Uh.

Bought back a heck of a lot.

They bought back 200, 216 $0.5 million last year of shares. So they’re really, um,

helping [00:29:00] shareholders out there.

Cameron: they’re trying to, they’re trying to make good. you remember us?

Tony Kynaston: yeah,

Cameron: you. Well, look, now we’re good

Tony Kynaston: yeah. So they’re, they’re doing all that, um, dividends, high, big buyback. So. Helping the sh the put the floor under the share price. Uh. They’re still active. Despite all that, they’re still active in the m and a space.

As you said, they, they bought NA plus last year and that was a huge expansion, um, for them in the Williston basis. They, they expect to, they expected to get $150 million of annual cost and efficiency synergies when they. Propose that, uh, acquisition and now that they’ve got the company and they’re operating, both of them, they’re now forecasting to get $200 million annually in, um, operation Synergy.

So that’s pretty good. Uh, they’re. Operating cash flow close, uh, jumped sharply after the, uh, [00:30:00] closing of that deal on pl. Uh, so they reported a 61% year over year increase in operating cash flow for quarter 1 20 25 as a result of the integration. So they’re throwing off a lot more cash than they were.

They’re either putting it to, to use to expand via m and a or they’re giving it back to shareholders. So that’s, that’s pretty good. Um. What else did I see about them? I like them. Their, their latest, um, latest numbers were great. Q3 2025. Uh, net income was 130 million, which is 2 26 per share. Um, actually, sorry, it was down.

So they went, they came down this year from, uh, 2, 2 26 from 3 59. Um. They reported a net loss of 40 million this quarter, but that was a book loss. So primarily due to $539 million. Uh, million dollars, sorry. Non-cash goodwill impairment charge [00:31:00] recorded because of the n plus acquisition. Um, so, uh. Profit was down, but because of the, um, the, the, uh, non-cash items, uh, and they’re still not really reflecting the, um, the n plus acquisitions in their results yet.

They expect to see them, uh, in the next quarter coming through. So that’s a good thing too. I did wanna highlight that there is, uh, some risk. We’ve spoken about a lot of risk already in terms of the, the oil price and what could happen, but they’re also, uh, almost entirely reli reliant on shipping their oil through the Dakota Access Pipeline, DAPL, which is a major crude oil pipeline running from the back backend fields to the three forks.

Oil fields in North Dakota, um, and then onto Illinois spanning over 1100 miles. And, uh. The upside of that is, of course, it’s very direct and efficient, uh, for, for transporting crude oil, but it does come [00:32:00] with risks. Um, environmental risks, operational risks, uh, political risks. Uh, oil. Oil pipelines have long been contentious, particularly in North America.

Oftentimes from getting Canada’s oil, uh, down to us refineries and ports. Um, this particular pipeline still does have ongoing legal challenges coming mainly from the Standing Rock Sioux Tribe on environmental grounds. So, um, they claim that the DAPL violates violates treaties in sovereignty and, uh.

Depending on how those legal challenges go, could result in issues either from paying the Sioux, uh, red Rock, standing Rock, Sioux Tribe royalties or more royalties, but also could also, um, mean rerouting or, or dramatic changes to the pipeline. So there are, there are some risks because of the pipeline. Um.

I think I would rate those as fairly low to [00:33:00] moderate. There’s always the risk of a pipeline to the bursts or that it leaks or something like that. So there’s a, there’s a, a threat of environmental disaster. Um. If it’s a large scale environmental disaster, that becomes quite major. But, um, the, these pipelines tend to be pretty robust and, and well maintained.

So the prob, the probability of that happening is low. It’s more likely, I think that one of the legal challenges causes them a financial impact. So just wanted to call that one out as well. Um, I wouldn’t be surprised if, uh, this company has. Other contingent or has contingency plans in place if something happens to the pipeline, um, either through road or rail transport as a backup at least, if not through other pipelines that it could potentially use.

Um, so yeah, so, but all in all, it’s, it’s a strikingly good company throwing off lots of cash. Um, as you say that e economics of the industry change, they can [00:34:00] make money at low prices. Um, they, they. You wouldn’t say control the backend field, but certainly are the biggest player in the backend field, which has gotta come with some benefits, I would’ve thought.

Um, oftentimes the biggest player is the first person you turn to if you’re trying to sell. Uh, so that’s gotta give ’em some advantages, um, uh, and, and economies of scale. The n plus acquisition is proving even better than they first thought. Um, so yeah, I, I like what I see with this company and the policy of giving back free cash flow to shareholders in terms of dividends and share buybacks is, has gotta be good too.

Cameron: This, friendly,

Tony Kynaston: Now court is,

it was a, it was Oasis and Whiting. They were crap.

They were terrible.

Yeah.

Cameron: yeah, Yeah.

Tony Kynaston: Yeah.

Yeah.

Cameron: Who never heard of them? All right, So, that was our, uh, thank you Tony. that’s a deep dive for the week. Uh, I did add them to the QAV light portfolio yesterday. Sent an email out to our QAV L members. [00:35:00] So, uh, it is up 0.4% since then. So that’s good. in the right direction.

Tony Kynaston: Yeah. Uh, and as we said on, as we said on the other show, the Australian show that, um, it’s often, many times when I started portfolios, they’ve underperformed

until you get 15 to 20 stocks until they’ve had time to

sort themselves out. So you can pull the weeds and let the flowers bloom. It can take a year or so to establish a portfolio.

I think.

Cameron: Yeah, and we know the over long term. You know, you end up with, uh. Good companies that, the rest of the market,

Tony Kynaston: yeah.

Cameron: Well, that’s it for QAV America this week. out of the heat, Yes. go and some,

Tony Kynaston: drag some to the us.

Look and warm up.

Cameron: tonight? Uh, not in.

Tony Kynaston: It’s gonna be [00:36:00] 39 down here in the now’s time, so no,

I don’t think so.

No. And I’ve played three times over the weekend, so

 

Tony Kynaston: I’ll give the bother rest

Cameron: I’m gonna go do three hours of in a tin shed with no air conditioning.

there is a bit of air conditioning, but it doesn’t work very Lots of Right. Okay.

always I come to sweat. That’s

Tony Kynaston: Yeah,

Cameron: here. I come so you

know,

Tony Kynaston: Yeah.

Cameron: It

Tony Kynaston: Good luck. You got like people in a all sweating

Yeah.

Cameron: you Is that why the, the

Tony Kynaston: coach you wear have the big open sleeves?

Cameron: that’s right.

Tony Kynaston: Yeah.

Cameron: smell the

Tony Kynaston: get rid of the odor.

Cameron: Yeah. Oh, right. Yeah. Into somebody’s nostrils. What was the, uh, spinal Tap album? Sniff the glove. Yeah.

Tony Kynaston: Smelled the garlic, I think it was. Yeah.

Cameron: we often do that [00:37:00] ’cause we wear, you know, pads and gloves and that kinda stuff, and they smell. We just like stick it in somebody’s face and go smell the glove. Alright. Thank you. tk. Thank you everyone. Happy? Happy Nissy.

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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