2 Australian (ASX) Stocks to Buy Right Now

0:01Every soda's got something to say. Colas brag. Probiotics give TED Talks. Then there's Mr. Pibb. No pitch, no promises. Just bold cherry bringing the flavor. Bold kick of cherry.

0:13Emmet:Hey yo Mr. Pibb. Then things started to accelerate. 2022 they're at 109 million. Okay. 2023 they did 333 million. December 24 they did over half a billion. 516 million dollars. And then December 2025, just a few months ago, they closed the year with over$800 million in revenue. So that chart looks like organ pipes in your local Christian place of worship. So it is a very nice revenue chart. And I say that because so often biopharmers and farmers alike don't.

1:00Emmet:Welcome to Stock Club, the podcast where we find and discuss stocks that anyone can buy, many of which we believe will go on to grow your wealth. If you're new to our podcast and would like an introduction to our premium services, sign up for Stock of the Month on mywallstreet.com. there have been some incredible winners over the years like shopify which was recommended in january 2017 and is currently up 2624 or indeed arista networks which was recommended in october 2017 and is up well over 1000 but overall it delivers a steady stream of stocks that as a whole grow so get it today go to mywallstreet.com and sign up for stock of the month which is a service my esteemed colleague mike has quite a bit to do it how are you this week mike i'm good i'm good i'm gonna open the show with a bit of a rant i was reading a newsletter there um did you see that there are you aware of the uh prediction markets in the us it's a sporting thing right yeah sporting thing it's kind of evolved into betting on you know will there be clouds tomorrow it's gone totally jumped the shark but no i just see i just read that they're bringing a senate bill or something to try to block it whatever it is anyways it's kind of been this weird i don't know it's become so big like it's it's partnering with the national hockey leagues and baseball leagues over there and it's in this just weird loophole gray area where it's technically not gambling it's considered commodities or futures trading because it's not considered a bet it's considered a swap and so like it's completely leapfrogged like the main gambling companies over there like DraftKings and Flutter and it's really it's started promoting very bad behavior like there There was a mad story that came out last week.

3:08So a journalist in Israel, he reported on a bomb strike and then was threatened by people betting on Polymarket that there wouldn't be a strike that day from Iran. Mad stuff like this. No, no, no, no, no.

3:20Emmet:Whatever betting about clouds in the sky tomorrow, that's fairly innocuous and lame, but you can't be betting on what ultimately will cause the destruction of human beings. Exactly. No way. Sorry, can't do that. and there's been huge issues with insider knowledge and insider training and stuff as well and it's funny because i have kind of this this little personal rant um or basically i've been talking about like gambling in the u.s and how it's set to blow off since 2020 maybe 2021 yeah you have i remember and you had quite a few stocks on it draft kings was one of the first you introduced 100 and flutter as well delocal was that another no that's another thing finances and all the other casinos and i don't particularly feel too bad for them like they are buy stocks there is a damage to what they do but it is just such a sign that you can be right you can be early you can do everything correctly and it's still a tall task to make money in the stock market do you know what i mean i just yeah i was thinking about it there when i was reading that story i was like flipping hell you can be right there at the right point at the right time making the right statements predicting exactly the behavioral outcomes that are going to come from it and you're still going to be losing money in the stock market so i don't know what we have to do to get it right em it is what i'm saying basically do you know i was talking to a young student a 20 year old student there the other day and i was talking about your career is a combination of determination relentlessness studying hard working hard attitude but luck also figures like anyone who arrives at the pinnacle of the pyramid in the organization or the industry in which they've decided to conquer, whether it's they become the CEO of Coca-Cola or they are a private practice consultant physician earning a couple of million a year, they have to attribute some of their success to luck.

5:14Emmet:They have to because there's so many things outside your direct control, no matter how hard you work or how relentless you are luck plays a role and same plays in the stock market i'd rather a lucky fund manager than a brilliant one and i guess your point is we can we can you know once you do it often enough and you practice we will and we have often found some absolutely massive winners but i always when i see a massive winner like my netflix stock yeah i was i was lucky i bought for a dollar a pop like i i could go back and i was inspired and i was a vision no i saw a great business that had the attributes of other ones that grew 50 000 uh percent and i went oh that one looks good i'll have some of that now there's loads more i bought that i also thought would be netflix-esque that didn't work out anything like that so i totally agree with your point um we can find the perfect industry the perfect stock or business positioned at the right point with all the inflections and all that the thing going in the right direction to find it works out to be a dud and i was working through a whole pile of notes i took about five years ago myself this morning reviewing how about 20 25 different stocks that i really fancied all those years ago have worked out and despite it being my best effort back then only about three of them worked out to be great now as a whole a portfolio of 25 worked out well but anyway uh i'm going off piste here you're right there mike um what were you saying yeah flutter great stuff pretty much yeah yeah and a little old violin for me feeling sorry for myself so what else do we talk about this week mike there must be must talk about this that's that's do something new what we talk yeah so this is a good idea uh we came up with last week and it's an area of the public markets we never really talk about it's australia um and i think there's a very active community of investors down there you can see it there's a lot of publications i think equity mates is worth shouting out as australian stock investors doing something similar to us and kind of democratizing this area of finance uh similar now in europe as well it really took off post colbert so it's worth dedicating an episode to it i think it's very interesting area there's very specific regional types of businesses down there that do very well and there's just as same with anywhere in the world there's just some great businesses coming out of it so i prepared a small bit of a backstory here it's actually quite interesting you're going back reading over it um i was shocked that it went this far back but the first stock market in australia dates back to 1861 in melbourne which is i don't know how old is australia there was a lot there was a stock marketing just there i think every city had a stock exactly this is it so each state the six uh states had an independent state stock market up until 1987 and then they all formed to merge into the Australian Stock Exchange.

8:10And then in 2006, actually, that merged with the Sydney Futures Exchange, which is why we call it the Australian Securities Exchange now, ASX. But yeah, there's some interest in historical facts. They were first to a lot of things. They were first stock exchange to actually go public itself back in 1988. And then the London Stock Exchange followed in 2000, the NASDAQ 2002, and then the NYSE in 2006. So it is a bit of a trendsetter there. It was also one of the first stock markets to bring in an automated trading system. That was in 1987. It was one of the first fully automated trading systems in the world.

8:49And it replaced the trading floor, which was everyone working on the trading floor was called a chalky because the employees there, they wrote their bids and offers in chalk on massive billboards that just kind of circled this big trading floor, which I found very interesting. So its primary index is the S &P ASX 200, it's equivalent to the S &P 500. Five biggest companies, very boring here. We've got Commonwealth Bank of Australia, BHP Group, which is a mining metal company, Westpac Banking Corp, National Australia Bank, and ANZ Group. So four banks and a miner. You know, not much to write home about in the top end of the market, but there is some very interesting businesses and you'll notice that they do revolve around certain in industries um so you know you're going to do some digging no doubt and there's going to be certain hidden gems to be found and yes that is a very bad mining poem i wrote into my notes here but emmish you kick us off because you've got something very different to what you expect to

9:50Emmet:find in australia that's true and i mean what you described there is is so predictable what i mean by that is um you would say that the australian stock exchange is dominated by mining and financials and i've often said that a country's stock exchange is in to a point like the autobiography of the commercial history of that country and when you look across the names that pop out of the asx it is the story of australia itself and even though um there's there's something like 100 stock exchanges in the world i think there's about 60 that are given full kudos for are being run properly and that I think comes under the World Federation of Exchanges but if you include smaller and regional and emerging markets I think you're talking about 100 stock exchanges around the world and the big five are the New York Stock Exchange, the NASDAQ both of which are only a stone's throw from each other in New York City, the London Stock Exchange, Tokyo and Shanghai Stock Exchange and so with those five exchanges the vast vast majority of the earth's wealth would i be fair in saying or at least the list yeah it flows through those five buildings and in fairness those last two that i mentioned tokyo and shanghai um in japan and china are rarely considered um by us western folks you might say for a whole load of reasons that are quite obvious to guess so when you and i sit down mike and we've had very very many hours of debate off mic about you know where to find winners and what exchanges present the best opportunities when you take away the american exchanges and the london stock exchange um two or three just keep presenting themselves and as the sweden nasdaq first north and sweden is one we've spoken about and both have a strong funnels for and the australian stock exchange is there um because it's quite culturally aligned with ireland its reporting is done in english um but it does have a very different kind of beat to the irish stock exchange or the us stock exchange because the asx is full of these really dividend heavy slow growers the mining and financial companies and then the us despite also being an english-speaking market is growth heavy reinvestment driven tech so um the us is almost a completely different animal you know what i mean it has its portion of the market which could be comparable to the asx but it also has the high growth tech and it also has everything else oh yeah do you know what i mean it's just such a beast i think it's about two-thirds of public company market cap is from the us now it's completely dominated um since well kind of since the the outcome from the great financial crash is that the us has basically dominated international markets since and it's just cannibalized everything and so much of that comes from tech and having the venture capital money there and having the support and and you know there's what is it how many trillion dollar businesses are there now five or six seven i think five or six yeah um and you know there isn't any other trillion dollar business outside of the us was is is saliaramco might that come into oh yeah that's yeah that's true um that was i think that was the first trillion dollar business wasn't it did it beat did it pip apple to the post well it certainly was larger than apple for a period of time and i don't know if apple pipped it when it became a trillion dollar business but yes but you know that's that's an anomaly in that you know it's a state-sponsored oil company like isn't it's not like you can cultivate a business like that in other countries.

13:39That's very much to do with natural resources and everything else. But that's why we're looking at these different areas. And I think it provides a lot of value for an international investor because they're going to be hidden gems that you just won't find. They won't be talked about in the news. They won't be touted. They won't be bought up to ridiculous valuations like you see sometimes in the US. And it is uncovering hidden gems in these markets is really, really valuable exercise.

14:07Emmet:yeah totally so australia has its fair share of wonderful companies and as you well know mike there's one i have a specific fondness for um which i've pitched and bought in horizon on many occasions and will continue to do so over the years ahead especially as the shares have been kind of clobbered recently but there are businesses that do stray from the financials and resources kind of mining set and have some massive potential. And I'm going to pitch to you a business. I think you're going to pitch to me an Australian ASX listed business. And then at the end, will we divide up our hypothetical 10 grand?

14:47Sounds good. 10 ,000 Aussie dollars this time. We'll save ourselves. All right.

14:51Emmet:Okay. So you get two beers for the price of one. All right. Okay. So I'm going to pitch a company called Telex Pharmaceuticals Limited, which is a biopharma and generally i avoid pharmaceuticals i've gone through my investing life kind of saying i avoid pharma and fashion kind of because it rhymes but also because it's true fashion is very hard to invest in and so is pharma and we've had that debate especially about pharma in recent um months in the eli lily post um um ozempic world but um this company telex pharmaceuticals it develops and sells diagnostic and therapeutic products based on radio pharmaceutical technology now before i dive into and what does it do i'm just going to tell you it's total revenues every it's months since i told everyone about the shape of a graph and thank you mike i knew like listenership i just felt it was dipping a bit because the people were tuning in to hear me describe a curve but um telex pharmaceuticals revenue at an annualized basis is a thing of beauty in december of 2020 so for the year that ended 2020 they made the price of a happy meal they did in revenue about four million aussie dollars then actually no i don't know what happened yeah yeah i know i didn't say how many i'm buying but But anyway, so at the end of 2020, they were at 4 million revenue.

16:27Emmet:A year later, 2021, they're at 5.5 million. Then things started to accelerate. 2022, they're at 109 million. 2023, they did 333 million. December 24, they did a half a billion or over half a billion,$516 million. dollars and then december 2025 just a few months ago they closed the year um with over 800 million dollars in revenue so that chart looks like organ pipes in your local christian place of worship so um so there so it is a very nice revenue chart and i say that because so often biopharmers and farmers alike don't uh they don't do revenue we're like hold on we're still mixing the stuff and check and it's like there is a real thing so what telex or telex actually does in simple english is it finds cancer and it's trying to treat it using radioactive drugs so what they do is it injects a patient with a tiny radioactive tracer and then it lights up cancer cells on a scan so medical professional basically gives you an injection and can see on their monitor if and where cancer exists it turns lights on so doctors can see a tumor clearly and its main product um i'm not going to try and pronounce it mike real sorry about that everybody just look it up it's usually used for prostate cancer scans which is the one of the most prevalent cancers in the world and it's already approved and selling globally as you would have inferred from my revenue piece and that's where the money is coming from today that particular drug that helps doctors and medical professionals alike examine and spot prostate cancer and then the second thing they do is they are at least more future looking is they they kill the cancer it's the same idea they attach a more powerful radioactive payload it delivers it directly to those cancer cells that the medical professionals see on their screen and it kills them so think of a a guided missile um going after the enemy within so what what kind of investors excited about the stock and i wouldn't even say that excitement is reflected in the share price which i'll talk about in a moment is that as i said it's a real business um it's not all about the trials and we hope and we expect and we see a lot of those around here um it's already selling its products in 17 countries and revenue as i said is growing fast and the trend is our friend we like businesses where every quarter sees a higher revenue payload than the quarter before it means that the sales people and the product are effectively hitting a need on the head so the second reason i like it is there's huge upside of these therapy works when therapies work and and like imaging is a good business like it's a great business to have a product that helps doctors see what's happening in there but therapeutics is a massive business so there are plenty of me too products um in the diagnostics world even gardened health gardened health does it by a different way garden which which i'm a shareholder in and which i've discussed and it's a horizon pitch and it's a wonderful wonderful business it it takes a little bit of blood out of a patient garden now and they look for ct and c circular circulating tumor dna ct dna and they can find with a blood draw where cancer exists in the body so that's a substitute product but therapeutics the actual seek and destroy send it in there get rid of the cancer that's massive business because a patient doesn't leap for joy when the cancer is found generally they they don't feel too happy but they're i suppose happy it was found but when you say you've got this the exoset missile to kill that cancer that's where it is so um the long-term plan of the business is to use the cash to fund future cancer treatments so the money coming in the door from the diagnostics business is now being used to transition them from from lesser diagnostics to a treatment company which if it works will result in a step change in evaluation of the business and they have a really good strong position at the moment because this radio pharmaceutical is very complicated as its name would suggest you're you're bringing together cutting edge physics and chemistry um this is leading edge science and uh you know manufacturing radioactive materials delivering it quickly because as a short shelf life like the these um isotopes decay quickly so it has telex has a global supply chain it has a distribution network it has like 225 sites in the united states alone so it has a really good moat it's not just ip and oh well we have a few patents and we've allowed in there with a white coat to sure he's only brilliant they have the real stuff out there and they have a really big market opportunity because as i said unfortunately prostate cancer is huge and the imaging for it is huge and it's a multi-billion dollar business and they're currently hammering out patents and looking for more cancers and early detection and in in their recent jp morgan presentation which i read before the podcast one uh slide caught my eye which showed a six billion dollar potential market expansion um but like when every biopharma and to pick a pharmaceutical float in australia it doesn't matter where it's floated it's a risky business and uh it's most of what i've said is not proven so like the current revenue is from imaging it is not from treatment yeah and treatments are in trials they're not approved they could fail and that's the way of the industry and any as any of listeners know anyone who works in the industry anyone who's been around the block a few times know that drugs more often fail than succeed and every new drug needs approval and the fda the food and drug administration in the us needs to give it its its blessing and and and then on top of all that mike before i ramp down and shut up is that competition is obviously very serious they they have um they are playing and going shoulder shoulder with the biggest farmers in the world and and that is a notoriously cut neck business or cutthroat aesthetics right cutthroat business because they network yes exactly cut neck a cut neck business i've invented that's worse than a cut throat to cut your neck um it's a cut neck business because manufacturing approval it's all tricky stuff it's expensive stuff and um and then when you you throw on top of it that their stuff decays it's radioactive it's half-life is short um you really got to get the the drugs that they've got to the to the site of the tumor as as as cleanly as possible so my bottom line is that i think it is a high quality moonshot that has revenue i think it's a um it's a high risk business like there's dozens and scores of companies on the australian stock exchange that are absolutely safe compounders like csl but um this is not one of them so what i would say before i close is this it's a real business that could become a much bigger one but only if it's drugs work and right now today its market cap is about four billion aussie dollars and what else can i tell you it's share price yeah it looks like um a cross section of everest it went up and up and up it went down and down and down so there you have it folks and it's currently 12 bucks 79 cent australian 12 bucks 79 cent per share yeah and at its peak it was up around 30 or 40 i can't see what the graph i have here you you reminded me um of a report i read back in the day it was wide ago now for morgan stanley but it was on about the burgeoning smart chemotherapy market so it estimates that it could go from 5 billion in 2022 to 140 billion in the next 15 years and this very much falls into that but i think the fact that you have the diagnostic side of the business is very similar company to tempest ai last week where you have the diagnostic side of the business that is there taking away bringing in money supporting the moonshot aspect of it and it is very important to have both because you don't want to be as you said a lot of these biopharmers are pre-revenue and just completely based on hope and i'll tell you we'll get there eventually and promises and all the rest and if it does amazing but if it doesn't you know it's kind of going to zero so the fact that it has that's true and it's nice to see one with a cash cow and you're right it did remind me of tempest ai stock i totally dived into after your pitch last week and one i had no i just i kind of had heard the name i didn't give him one minute consideration but yeah no interesting business and i like the i like the dual aspect of it there's cash cow there sitting sitting underneath the moonshot so yeah nice one okay i'm going a different tact i never i nearly went to very similar tact actually i was very tempted by a business called pro medicus but even now the stock is down i think 60 since july and it's still trading at 50 times earnings so it's like yeah really high quality business you can stick it on your watch list but i don't think it is uh it is any way viable at the minute even though it's i had a look at it too and i arrived at the same place yeah yeah that is a really strong motive business in the medical imaging industry uh i don't want to give away my favorite azzy stock as it's one of the original picks of nexus 3 but i think any of the vote we have talked about on the podcast i think we talked about on the podcast without mentioning the name so if you are a devolver i think i know the one you're on about i think i'll be meaning to look closer yeah but i do want to stay within the kind of big industries we were talking about which define australia which is mining industrials energy and all the kind of adjacent companies that help prop that up because i think mining alone is estimated to be worth over 300 billion dollars a year to the aussie economy You throw in energy and industrials on top of that, you kind of have the entire backbone of the country right there.

27:10Do you know what I mean? And it's based on the value of its natural resources. So there's loads of high potential pick and shovel plays that are right up my alley that are just supporting those mega industries. So the company I picked is Supply Network Limited, ticker symbol SNL, Saturday Night Live. It's a pretty simple business. it provides aftermarket parts for commercial vehicles predominantly trucks as well as buses

27:35Emmet:in australia you love these kind of businesses mike you're like a five-year-old with a matchbox cars i should have guessed 100 well like i always say it like as in it's got the acid the the attributes that very much mirror companies like you know wattsco or waste management or o'reilly auto where they have these scale advantages and then they bring them to competition with local competitors can't really compete you know they don't do anything fancy they just continue to expand they usually operate in consolidative industries so they end up buying up local competitors to expand that way and yeah they're just it is hard to compete again i believe snl is i'm going to call it snl for the episode instead of going supply network limit is it's built in the same mold as those companies who and why i like them so much is because they've produced completely outlandish returns.

28:25Do you know what I mean? Take a look at O 'Reilly Auto's stock chart from the start. You can describe that one, Emmett, to be there a while. But yeah, so it's a distributor for after markets parts predominantly through its multi-spares brand. They don't actually manufacture the parts, which is important. They source them globally and then distribute them through, I think it's about 25 branches, probably more at this stage.

28:50Emmet:Now, are those branches junkyards? It's like, come on, is it, is it, is it like, tell me, what do you see? The mode here is technical expertise because this isn't your run of the mill auto shop where you just bring in your Ford Contina and you get a new carburetor and off you go. Like it specializes in heavy vehicles. And when I mean specialize, it has to specialize because these are beasts like as in, and they take specialty expertise to understand and fit. So like if a freight truck or like, you know, a city bus breaks down, the owner needs the exact part immediately so so what snl calls it's like parts interpreting is one of its great competitive advantages and the the depth of its inventory market as well it's a go-to for fleet operators and what it benefits from as well is that there is an awful lot of independent fleet operators because like like we know like trucking as a whole is like such an important industry but especially in australia and because of that there's a lot of I suppose like nuances to it do you know I mean there's a lot of drawbacks there's aging vehicles on the roads manufacturers increasingly they build like complex and specialized models there's a huge geographic dispersion so what parts might be needed in Sydney are completely different to something in Perth or you can imagine in the Outback as well do you know there is just a great variance of the needs of each business and then the big thing is the prevalence of kind of small and medium-sized fleets.

30:17So Emmett Savage truck and I own eight trucks and they're all 20 years old and they all need very specific parts. So that's where SNL kind of really thrives is the fact that there are such niche needs that it can serve. And because it has the depth of inventory to serve those markets. So yeah, it looks, I'm saying what I'm saying about so many of these businesses, but it really does match that style of company that works trucks are great aren't they my

30:48Emmet:though in fairness like and they're exciting and they're big and everything um no i i i got it i think i got it i think um i i love that now i'd love to have seen you looking at snl's website and people if i was looking at you looking at the website if you're like is he still looking or is he just daydreaming great big semi or whatever they call it over there but um great and is it growing yeah so it isn't the largest uh company in there in this market but it is the fastest growing so over the last 10 years now this is how you describe stats without describing a chart emish so it's been growing revenue learn me learn me something new growing revenue at a category of 17 over the last 10 years and profits at 27 seriously impressive and that operating leverage is indicated by pretty much doubling is operating margin over that time obviously still tight but it We went from 8.2 to 16.7 maybe.

31:45And then just given the fragmented market, I've already mentioned that it's just very ripe for consolidation by the larger players to take over smaller competitors and grow in that way. I just love to see those scale advantages and I think they go an awful long way for long-term businesses. Like I mentioned, the waste management, the O 'Reilly Auto Parts, they don't do anything fancy, but they grow by 10 % a year, but they do that for 40, 50 years. I think SNL has the potential to do that as well. So I'm going to read a quote here from its annual report from 2024, which I had highlighted from notes I did a while back, which just gives an insight into the industry and what I described and kind of touches on why SNL can provide what others can't.

32:29So the quote is, the diversity of vehicles makes and models and the concentration of certain vehicles for particular tasks sets up considerable differences in demand for replacement parts from one region to another and across different market segments. In order to deal with the complexities of regional demand, we have developed a decentralized management structure with a strong regional focus. We actively build depth in our branch network to improve local decision-making and strengthen support for local requirements. So this means that because they have invested so much into that, they can fulfill orders in three or four hours.

33:02It says actually that 80 % of deliveries are completed within three hours of ordering, which is just way faster than any competition out there. And it has, you know, parts coming from Japan, the US, the EU, something that those smaller competitors just can't do. So if you are a fleet owner, and this is where it comes down to it, because these fleet owners, they're quite price inelastic. If they need part XYZ for their truck, they have to go get it. And they'll have to spend whatever SNL charges, because that's the part that fixes. and they might be the only company in Australia that can serve it to them.

33:38So it really benefits from an awful lot of secular trends in that sense. And then it can just pass on any extra cost to the customer, which is important because at the minute the Aussie dollar is quite weak. So that importing products has gotten more expensive as well. Some numbers, it's really capital efficient. It's maintained return on equity above 30 % for the last six years. and then one interesting thing I want to point out is that the market leader BAPCOR controls about 20 % of the market whereas SNL is about six or seven percent it's still relatively new to the aftermarket trucking so it concentrated originally was in cars and direct consumer kind of garages and stuff like that and then entered this market via acquisition so while it is the largest player You know, SNL has about 40 years of experience on it.

34:33So the founder's son is still the chairman of the board. Founder is still involved. Harry Forsythe, he owns a good chunk of the company as well. So we still have that insider ownership there. And then the CEO has been at the helm for 24 years. So there's a lot of long-term leadership right at the top that goes a long way. Who do we have on recently that was touting the power of family owned businesses?

34:57Emmet:i remember this on a porter standsbury yeah it was i think it was porter yeah yeah um and spinoffs yeah but yeah yeah so long term i think it's a brilliant business there are some concerns um so kind of the modernization of fleets stands out to me whether that be through electrification where these new electric trucks will need less parts or the replacement parts will be dominated by the OEMs and then eventually autonomization, which feels like the very natural future of fleet and trucking as a whole. But seeing it come through in the next 10 or 20 years seems like a far away, seems a bit too far away in my eyes.

35:42But again, these are the kind of long-term concerns I would see for the company. And whether it eventually disrupts it, I'm not sure, but it will force it to adapt in some shape or form it's kind of similar to copart actually in that there's been this overhanging threat of evs threatening to disrupt the market in some shape or form that hasn't really played out yet but especially in the fleet industry once it becomes economically efficient to fully transition either to electric and then down the line autonomous snl could suffer but whether it will or not it'll definitely have to adapt to it um and then in the more immediate term you got rising oil costs that are just going to affect the industry as a whole a tighter budgets might make a might take away from fleet maintenance in the immediate term but i wouldn't be too concerned about that it is expensive you're sitting around 30 times earnings for industrial like this even though it's high quality you know you're paying up but i think it's a really quality business i think it fits in the shape of businesses i like that's why i'm talking about it it might be boring to you and maybe to our listeners not boring to me it's not it's not at

36:49Emmet:all i've been clicking through um its financials as you were describing it to me and it's not one bit boring um i i lament copart actually i picked copart for the original my wall street app and i wrote it up and i selected it but i never bought it because like now i'm i'm more into you know fast growth and it has so many overtones of of copart and i know it's a different model but uh it isn't boring it's the point of making but but that's what i mean it's funny how i bracket those kind of businesses together copart waste management watsco corn main and snl here as well they are they aren't really very similar in the industries or what they serve but they are and how of bringing a national scale to a local market i always think is a huge competitive advantage to any business and seeing them do it year after year and delivering investor returns like they have for 30 40 years it's it's just you know it's the stamp of approval you need so that's why i go out and i look for these type of businesses and snl definitely fits that model so yeah i am well done i'm fairly bullish on it even though it is a bit expensive yeah very nice very nice okay two great businesses they're very different i mean if the ceo walked into a room and was asked to throw down a sample of what they do my guy would throw down a vial of radioactive cancer killing isotopes and yours would throw down a big lump of metal covered in grease and so they're quite different for sure but I think they're both very appealing you go first 10k split it 10k I'm splitting 7-3 SNL because I do feel like Telex is a bit, Telex or Telex how have you gone with that?

38:47Telex

38:48Emmet:is a bit more of a moonshot yeah a bit less steady but also very exciting business though and you won me over again Mike, just as you did with Tempest AI I I ran out of steam when I was picturing recursion I was like I know I want your one but I'm gonna go 60 percent into SNL and 40 percent in to TILUS because I do believe they're both great businesses but yours will just keep on truck and no pun intended are you sure there was no pun intended it felt a bit intended no intended means I would have conceived it in advance and thought I'm gonna say no pun or I'm gonna say keep on truck and I didn't know you gonna pick that okay that was manslaughter if i knew he was there i wouldn't have driven over him yeah okay anyway i think before i think too good before we get into explaining manslaughter we might get off this spot will we yeah okay we better leave it at that all right so folks a riveting conversation walk through australia for you this week which no doubt has whet your appetite to buy stock of the month, only on mywallstreet.com.

39:59Emmett, thank you for joining me. And thank you, everyone, for listening. If you haven't done so, do leave us a like. Give us five stars if you can. And subscribe wherever you're listening to this on. It's Spotify, Apple Podcasts, or YouTube. It does help us out. All right, we'll talk to you next week.