Earnings Season - Earnings Season: Episode 10 - The New JSE Index (MDI)

Episode Date: October 17, 2019

This week Randy (@RTRowe) and Danhai (@HDanhai) cover the latest announced Index from the $JSE.ja; the Manufacturing and Distribution Index. They cover a few other things like the TransJA IPO, $PJX.ja's results, $BPOW.ja's Lumber IPO explanation and a whole lot more. Show Notes: What's an Index? - http://bit.ly/2FXxX0b $JSE.ja's MDI Announcement - http://bit.ly/32iB8se $JSE.ja's MDI - http://bit.ly/2Bh1A9N $JSE.ja's MDI (Oct 16th, 2019) - https://imgur.com/86qEMjQ $JSE.ja'sFinancial Index Announcement - http://bit.ly/2BeSLxc $JSE.ja's FIndex - http://bit.ly/2pvqkIA All of $JSE.ja's Indices - http://bit.ly/2nVYmFM PJX 6 month 2019 Financials - http://bit.ly/31jsiZR Blue Power Explanation - http://bit.ly/35D5U14 @NNBoogie's AGM Challenge - http://bit.ly/BoogieAGM @RTRowe's Bank Tweet - http://bit.ly/2IWvxjL $JETCON.ja Distribution? - http://bit.ly/2VTmSDV Marley Family Copyright Protection - http://bit.ly/2J05k3U Shout Outs: NNBougie - @NNBoogie, CyaapetGad - @DrNigelClarkeJa ★ Support this podcast ★

Hi guys, welcome to this week's earnings season. I'm Randy at RTRO and I'm Danai at H Danai. There we go and we're having a nice quick episode for you this week. This week we wanted to try something that's not really new but you know we talk about a lot of things we go all over the place all the time that's what we do but I also want to see if we can we're still going to go all over the place let me just get that out there right off the bat but uh we're going to try and focus this week on one thing that i know a couple of people have asked me about and it will become a lot more important very soon so i want to have the podcast now before a certain company i won't say sagicor but sagicor probably before a certain

company does the puts together a fund for this so this this week's episode is on yeah go ahead no tell them manufacturing index the new manufacturing index from the jsc the jsc has put together a new index that's right which is weird to me that the jc is putting together indexes but hey go ahead no it's cool i guess maybe that's what uh um uh a marketplace is not a marketplace but a broke not broke yeah it is kind of weird kind of weird because like anybody can anybody should really get up and say, hey, we have this type of company on the JSC. Let's put them together in a pool and say,

hey, this is our index. We're tracking it. You can buy into the index. The JSC has to say, boy, you know, there's this index. Look how long the financial index could have been made. And the JSC has to say first, boy, guys, there's an index, you know. Yeah. What are they doing?

They're tracking the prices of it, which anybody can You know what, let's not jump ahead of ourselves Let me start properly from the jumps For the people who don't know First, as Danai just said, the JC Manufacturing and Distribution Index It was announced at the end of September That the JC is Let me read to you guys Very quickly what the JC is saying

And I'll cut out the boring bits The Jamaica Stock Exchange is keeping a pace with the demands of our market by providing innovative products and services for investors to expand and diversify their portfolios in 2019. October 1st, the JC will launch the JC Manufacturing

and Distribution Index. This index will enable investors to invest in all manufacturing and distribution companies that are listed on both the main and junior market. The index will consist of 30 securities, 18 representing the manufacturing industry, and 12 securities for the distribution industry. This unique index is also comprised of 21 junior market companies and 9 main market companies. So I like that it cuts across both. And of course, junior market beats main market, I think, in terms of number.

So, yeah, in terms of number. So yeah in terms of the amount of companies on it. So obviously easy to have more there. The JSC manufacturing and distribution index is called the M&E index. MDI. The JSC is MDI. Look at that I'm making the JSC cool already. You're welcome Mr. Street Forest.

Anyway it's now the second such index on the jsc for no it's not the second such index jsc you have you already have the all jamaica you already have i guess it's the second industry industry tracking index okay because they have they have they were tracking indexes before but this is this is the second time they've said hey let's take out these companies and certain industry and put them together in a basket and run into that index okay so it's the first time that they're having a industry specific yeah index all right uh i promised people that we'd cut out the boring bits i'll skip past that no let me let me listen to what mr street forest says um no let's read the important bits no no tangents. The JCMDI is now the second such index on the JC following the financial index that was launched earlier this year.

And people, you guys should know the financial index. It is the index that tracks financial companies. And of course, it is tracked by, or it is attempted to be tracked by the Sajikor Select Funds. Yeah, which is why I mentioned Sajikor at the top because I believe that it's very likely that they'll just do another index. be tracked by the sagic or select funds yeah which is why i mentioned such a core at the top because i believe that it's very likely that they'll just do another index because they in the process for the civic funds financial index that we got they basically said we're gonna do new in any new index

that comes out or that's how i interpreted it interpreted it yeah yeah in fact they actually said that the funds that could have different classes of shares that will exactly for another index then this class of shares class b class c will be towards that so exactly so they already create the spaces within the company to have other other not other indices but i have other funds that track oh yeah this index yeah and that's a very important thing i'll get to that in a second but yeah let me let me just finish off this bit. So the performance of the index, no, the weighted average market capitalization method will be used to calculate index. That pretty much means that they take the market prices

of all the companies, they multiply them by the shares of the companies, and then they total all of that, and that's the index. And then they represent it with a number. The performance of the index will be, I should think about whether or not what I just said was correct.

Because I'm not sure if, well, you know what, guys? Here's what I know is correct. I have a SagiCore Select review on everymicle.com, which I know is correct because I did research for that. So go ahead and check that

if you want the exact explanation. But I'm pretty sure that was correct that's exactly how they put it together the market cap of all the companies and they do a weighted average average so that means that the bigger companies affect it more and the smaller companies affect it less and we know that from the financial index ncb is the big dog so ncb is almost half of the index if not more yeah and um the third of the regular jc index so yeah exactly anything ncb touches it it pretty much leads yeah yeah um which is why a lot of people ask the question why would i buy the index which why would i buy the phone when i can just buy ncb worse if you buy

ncb scotia sagic or at that point you have about 70 or almost 70%. If you have NCB, Scotia, Sagicor, and JMMB, you have a craploaded index. If you have proven, you definitely have a craploaded index. I think that's a fifth.

And then with proven, going to own 20 odd percent, still owning 20 odd percent of JMMB, which is going to own 22% of Sagicor International. Sagicor International.

That's a good one. Select F is a great, it's a great, I would say it's a great hold over eight months. Yeah, yeah, man. Go to, catch a lot of what's going on in the market, in this market space.

Yes, yeah. Especially right now where it's low, right now it's at, I think, $1.17 or something like that. Yeah. Yeah, so if it, I mean, it's not going to stay there. Once the GMMB, once the entire Alain Vest deal happens,

GMMB is going to fly up. Yeah. People are going to realize GMMB is flying because GMMB's intrinsic value is going to be huge. Yeah. It's tied to the growth of Sajikware International Group. And that is going to, we all see that's going to grow.

They're pushing for growth. Exactly. Which is the whole point of the Alain Vest deal. And the fact that they're going for 22% means that it's supposed to be an associate stake.

So they get to just write a line in their books about- Share of profit from associates. Exactly. Or share of loss. Share of loss, yes. It can be share of loss.

But chances are it's going to be share of profit from the entire Sajikor group in the entire region. Yeah. Which includes Sajikor Jamaica but everything else right and that's going to hit jmmb in the books it's going to hit prove in their books because they have 20 percent of jmb don't forget panjam and panjam is a part of Sajikor Jamaica but the

how they cash in on that deal is a movement of the jmb shares because they own some jmb shares that's right up or down then the book are lost again or lost yeah through the piano yeah so and then to tie it all off all of them listed on the the financial financial index so if it's not going to stay below a dollar for very long that's a nice eight month buy i might actually buy some of that same uh eight-month buy. I might actually buy some of that. Same. Back to the article. Back to the manufacturing.

Tangent again. So Mrs. Marlene Street Forest, Managing Director of the JSC, stated that, as we continue to listen to our investors and track our other markets, we will endeavor to provide our investors with a conduit and platform

through which products and services can be developed and delivered. This index is designed to provide market information based on the companies in a specific industry targeted. We anticipate that from the Manufacturing and Distribution Index, I really like calling it the MDI. It's so nice. The JSC's MDI. We anticipate that from the MDI,

we will see innovative products and new investors to the market. Probably. Mrs. Streetforest further stated that specific funds cannot be created utilizing this index, thereby allowing investors to invest in all manufacturing and distribution companies. And I believe that's where we got Q Sajikor.

You know what would be nice? If somebody just beat them to it. Yeah, so Jesse has been speaking about ETFs from either last year or the start of this year yeah they said they want the house in straight did funds exchange traded funds but nobody has come with an actual etf just listed equity funds basically just pull them together and track it by now but an etf would be and and hope and hope that the trading price matches the nav because it doesn't have to. It doesn't have to.

And it often doesn't have to. And I might make the case where it will beat it. Not a case where it will beat it. I would make the case where I say it shouldn't. It shouldn't. Like, if we're going to pretend that the world is perfect and the market is truly perfect, select F shouldn't track the NAV of um the fund select of the financial fund perfectly it shouldn't because select f has fees as much as it does 0.5 it has fees it has it has all other fees

that's management features 0.5 but i should expect to see a buy fee in the financials i should expect to when them financials come up by the way uh they're on the regular three months yeah i mean everything has a three-month thing but when you remember when so i think where do you have any financials for them no no yeah so september ended so so okay so we have the usual 30 day usual 30 45 45 you know i keep saying the 30 i said the 30 day thing on the one with rent so you know why i was some research. And when you research the old laws, you get the law first, but you also have to look up the amendment.

So the original thing, I think up to 05 was 30 days. It was amended later on to say 45. The 30 days are stuck in my head. Isn't the pressure that doing the 30 days? No, you know the truth is- I love it though. I love that, yeah.

It shouldn't take so long. In shorter time period, box them with the money. Yep, yep. More information quicker. And that will help speed up the market, which I like. Cause the market has been speeding up still slow. But yeah.

So why I mentioned that the ETFs that the houses would have brought on from these, you know, in the, in the article, Jesse mentions it as a product. So they're not by itself. All JSC is doing really is tracking an index.

They're not selling anything. So it's not really a product for people to buy into. If it was to be matched via ETF, then it would be actually a product. You can say it's a product JSC is providing if houses were to match it by etf but i'm not really seeing that so you know what i think i think that they might show it from doing that because i mean it requires work oh definitely by those shows that the same guy that takes quite a bit yeah it takes work you know it takes work i think it might also take volumes definitely no it shouldn't take volumes i mean obviously it will take volumes but it there's a bandwidth in which when you buy you

also sell so etf explain that you take them etf essentially it's it requires active daily management you have so to get an etf you have to have all the stocks within the same composition at the same time. Yes. That'd be really hard. Say, I want to buy NCB today, and I get all the volumes I want for NCB, but I don't get all the volumes I want for SagiCorp. Okay. The day changes, and the price for SagiCorp change, and the weighting index changes.

Ah. And you always have to match the weighting. I have to be weighting. So, if I can't get all the shares at once, then buying into that and try to get it to match that directly, that's a problem. Yeah. So I'm going to say, hold the shares somewhere, and then they just switch them over to the company at one time.

And then just move the excess or the less. Some way, somehow. But just to buy them from our money, that would be a problem. Yeah. So that's where I see the issue is. Yeah. I'm still still as you said that it reminds me of again select f i'm still waiting to see how they bought those shares

oh yeah because you pay attention to the market like we pay attention to the market i a lot of those i never see a lot of those things move across the market i select if have them i'd really like to know how they got them um and i remember when i'd done the review before well when i when the prospectus was out but they had only included information i think up to june and i had done my thing and i'd done it up to july and i know that they had had more than in july than that in june but i never see them buying nothing and i know what they had in july and in august coming that they suddenly had a lot more and i never see all those volumes move so i'm very interested in knowing where those volumes came from and how they bought them the way i think it was done is say like how jamty and qwbi so jamty held the equities all by themselves

and then they incorporated qwbi and moved it moved it over the share transfer so it wasn't that it was bought by qwbi the portfolio was being absorbed the jam t it was being it got a new owner basically yeah i mean there are people who said to me that sigma satyakor sigma funds holds a lot of those shares already so maybe there was a transfer i don't know how true it might yeah it might have been that it may have been a site called sigma bought if i remember correctly they were one of the first shareholders yes for select if so i think that's what that transaction went they just moved it over with the share with change of money yeah but i want to see it yeah i want to see the proof of it i want to only speculate up to a point and

then like they can tell me you're right or you're wrong so yeah that'd be very interesting to see man this is very interesting. Yeah. So going back to this new one. So the JCMDI, the Manufacturing and Distribution Index. So, of course, what companies are on it? Oh, that's my issue now. So read that. Yeah.

You have a list, right? Yeah, man, there's a list. So on the manufacturing side, they have AMG, Bepo, which is Blue Power, Ber carb cement caribbean flavor and fragrances gk honey bun jamaica teas jamaica broilers group jamaica producers creamy lasca manufacturing ptl that's what's ptl ptl is paramount that's all or lubricants company yeah well oil oil base yeah ptl purity salada seprod sra the sweet river abattoir disappointing company yeah and wisinco that's on the manufacturing side on the distribution side side they've got cpj detail dermont traders limited foss rich jetcon jetcon lasco distributors mds indies everything fresh fontana fontana fontana all rightana SOS I guess Carreras CAC 2000 Limited

Alright so I know The two ones that Jump out immediately Fontana And Jetgun So I guess I'm looking at Distribution across

But then That Which one Which one are you talking about You take one I'll take that Both But

They mean distribution The Fontana People love Fontana They mean Being wide When they say distribution Because theyana people love fun they mean being wide when they say distribution because they put retail it's retail selling not really hmm what does fontana distribute i mean they have about five six locations now yeah the new place open yeah so i would say how we think of distribution isn't generally oh of our shops that are sell this i'm a distributor

yeah no yeah that's not that's not distribution at all so so saying fontana and jetcon are distributors just kind of jumps out at me yeah the jetcon one i had raised my eyebrows up but then all right so jetcon i had said, I think in their last annual report, that they bought some space at Tinselton, the old Tinselton facility, and they're looking to distribute across the region. Across the region, but are they doing that yet? I don't know. I don't know if I've ever actually seen anything from that.

And JetCon, share price has been taking a beating. Actually, it hit a 52-week low a couple weeks ago. It went down to $1 something. Yeah, that's actually a nice. I looked at it and I was like hmm that's that's a nice buy point that's a nice way yeah but you don't want to be you want to be buying with the hope that something is happening yeah yeah yeah just because the price low because the price is never really low no price is low or high on its own it has to be the comparator so yeah the price isn't the value so jetcon since I touched that point up to the second quarter the second quarter ended in June and they had profits of twenty three point nine million versus last year in six months they had profits of eighty

point five million what a drop yeah yeah and the revenue had also dropped because the revenue had fallen from 467 million to it had fallen to 467 million from 606.5 million jetcon going through it boy yeah you know it is i think they're in an active industry they're in a crowded industry and the truth is them car salesman people everybody short cut jetcon had a nice thing going first you know them giving people 100 grand back yeah cash back 200 grand i don't know if it ever hit 300 grand but the whole other man them just copy them yeah because eventually we started seeing a lot of everybody's saying yeah we are here 200 000 cash back yeah so why am i going to jetcon versus anybody else i'm just going to walk around i look at the cars and i get the same deal everywhere so

the same character it's about the car so yeah jet can't have to set themselves apart and the truth is the playing field is not truly level because they're i mean jetcon is paying taxes they're they're fully on board they're not paying corporate taxes because they are under the um the junior market stuff but they are paying all the other taxes and the bmg's and stuff and they're competing against people who aren't necessarily as tax compliant yeah that's the truth and it's an audience and everything exactly they get audited they have to put this out every three months i have friends and people i know who have character and the man they don't know nothing about financials

that money don't know not about taxing just doing them things yeah but but theres. Them man, they don't know nothing about taxes. I'm just doing them thing. Doing them thing. Yeah, but those men, them man also not selling a car across the region according to JECON. Yeah. But, you know me,

I always go to the note one, the company identification in the financial statements. And they say that the principal activity of the company is the importation of motor vehicles

for the resale in Jamaica. So, it sounds like retail. It sounds like retail, right? Granted, I mean, that's a principle. So maybe... Maybe it's that. Yeah, yeah.

It's a stretch. But also an index... I want to be nice and say an index can prepare. So you can say, I know you're going to do this. You've said you're going to do something to include an index because that's where you are. But... No, that's not what you do. No, because in America, when you qualify for the index, you get put on the index.

And when you get disqualified, you get taken off the index. Yeah. The truth is, JetCon, as it is now, in my view, I could be wrong. Maybe they are doing it. But I'm looking at the latest financials they released. I don't see them doing distribution across anything. Look at the composition that JC has for the index.

So I have the same issue with SelectF. I'm having the same issue now. If you go on the page for the index and look at the composition, you're going to see a very long list of things that are not on that page. So I see 138SL, 1834, AFSs send me the link

for the page let me open it up so i can i can see it i didn't check the link for the page you know my salary i just did it i do it on my own i do it in excel and i track the indices myself so i can have a good idea because i sometimes like two weeks ago well i don't know when people are hearing this i shouldn't say two weeks ago but some time ago very recently in the last half of 2019 there's this huge gap in time where i think september where jc just never update the tracking page for select this yeah and then people people are complaining boy you know it's funny that's when you find out how the industry and how the people who said they're watching stocks stay because they're complaining too i can and they're complaining to say jc need to do better which they do jc needs to do better they're complaining too. And they're complaining to say, JC needs to do better, which they do.

JC needs to do better. They were complaining to say, yo, we don't know how much the holding is and JC needs to update the thing. Like, my Lord, then make an assumption that it hasn't changed in terms of composition

from the last time and track the index yourself in Microsoft Excel, which I expect you to do. That's for anybody who's serious about investing and commenting on it. If you're in the industry, I don't think you're going to go there. So there's no excuse. in microsoft excel which i expect you to do that's for anybody who's serious about investing and commenting on it if you're in the industry i'm not even going to go there so that you know if you

look at the the changes in the index across time it's not like not the index select f look at the change in the holdings it's not material yeah it's not material change and then the big thing to me is the barita change and look at the price they got it at oh word okay i i i will check that out but you sent me you sent me the link for the um mdi composition yeah so you're saying that you're seeing a lot of things on it that aren't actually listed as being your right 138 1834 access financial the same thing for the financial index when it just came out. Barita, yeah, that means it's like somebody just don't go work it. The composition is always messed up.

So I don't know what's happening there. Salada was on the financial index when it just came. On the composition page, Salada was in that. Eventually it fixed it up to be only the financial company. I don't know if they were being added to the tracking. But the truth, yeah, you hear my thing already.

Forget what JSC put out. They tell you what's in the index. Just go and do it yourself. Because you can work out the weight in yourself because you can see what the market cap is on its own. Yeah, if you don't know anything of that stuff, come to Grow and I'll show you. Everymicle.com.

And there'll be information about that. Or on Twitter, it's there it's there's holy there's holy pot chances for people to learn if you don't want to pay go on internet and read it for free and put it together yourself that's what i did so yeah really and truly there's no excuse uh yeah so they put together a index let me stop beat them up and just start about the index but they put together an index and this index is supposed to it's supposed to to be tracked so they've given the go-ahead for people to do so i guess sagicore will have something soon that's let me go back to this point why does the jc to give go-ahead for somebody to say boy this is an index i'm gonna track it but i know such a court should i just all the indexes i know is that we're tracking it yeah i always wonder why that yeah that's

a great question why do they go through jc when they don't have to you can just do it yourself they've had years to do this yeah everybody i mean if you think about it you know like so people who don't know an index is literally just a collection of stocks based on a criteria chosen yeah give me any anything you want to say yeah and if these match that criteria then they're in the index the rt row index every stock that rt was mentioned favorably over the last year on twitter boom that's an index i just tracked them uh your portfolio is an index it's an index of stocks that you have you like oh you like this stock, right? Yeah.

It's an index. You don't like it anymore. If I'm going to be technical, your portfolio is a fund which tracks an index that you picked. Yeah. See, technicalities that you can't buy, you can't actually buy an index.

Oh, I can't wait for people to disagree with this one. Well, no, you know what? They won't disagree. The book says that. The book says you can't buy an index. You buy a fund. A fund allows you to enjoy an index. Yeah.

Yeah. Which, okay. So distribution, we can say question with JetCon. Fontana's distribution though, how does Fontana qualify as distribution in any way, shape, or form? The point was Fontana, play distribution In any way, shape or form The point was Fontana You played devil's advocate for me that night

Tell me how Fontana could make the The distribution too Manufacturing I could have maybe seen them Maybe kind of buttonhole them in there Pigeonhole them in there Tell me how Distribution

So say I have I have a pharmaceutical company I make drugs I don't sell drugs directly. I sell it to Fontana Group. And Fontana Push It Out. Not Fontana Group. I sell to Fontana.

And they say where we put it. This store sells it better. So they sell it through this store. I guess that's the only way I can see it really. And not only drugs. Anything they sell there so but to me it's very retail so yeah and very likely that pharmaceutical group would have their own distribution line or distributors that bring to fontana or sell to fontana

indies is on the indies yeah wait hold on indies distribution actual distribution is on the manufacturing side oh yeah they don't manufacture the buyer priest those no apologies apologies okay indies is on the distribution side yeah yeah yeah cac 2000 is on the distribution side how how how how were it i don't know cc 2000 did say that they have something in the region right they're going to try and and buy stuff that they have something in the region, right? They're going to try and buy stuff. But there's something in the region that if I have it right, I could be wrong.

I'm sorry. There are construction projects happening overseas and they are included as a supplier in that, but they're actually installing and doing the stuff. So you see that, boy, we're distributing our... I think that's more distribution on Fontana, though. I see what you're doing, JC. I see what boy we're distributing or or or this yeah i think

that's more distribution on fontana though i see i see what you're doing jc i see you doing jc i mean it's only like if the cat fit me if the cat if the cat fit let them work with the cat cut the cap is a one-size-fits-all coming when you for when you pack up the thing but i'm glad that they're doing it anyway what's the next what what's the next index you think they could come with next index I know their plans because Sajikor Select Funds was very clear in that they have five like they have five slots

and one was taken I guess this is second so three more to come so what else could they come with what's another index that they could bring up let me think about that because we already have finance and we already have manufacturing and distribution so i guess we'd have to have like maybe food yeah it could be food yeah consumables fmc you can't fast move you can't have fm fast moving communications really who do you put under the communication uh so i'm actually on jc's You can't have an FM pass Moving consumer goods Communications Really?

Who do you put Under the communication? So I'm actually On JC's Listed companies Me too I'm looking at All the listed companies So 1834

Cable Bahamas 1834 is that communication? It's not But it has interest In communications I guess so So RGR Yeah yeah yeah

But that's also on it Okay so that's two kate bahamas i hope you can get some shares though yeah one million dollars per share you have to buy a hundred shares yeah yeah i guess only us can buy that i see nn boogie made a tweet the other day say people can um don't worry you can buy with 10 grand she started with 10 grand and eventually you can get to the point of the guys

on earning season the volunteer we're talking about I tell you when you see her she's a vixen I say she get trouble but she get trouble you know

in the same podcast I shall list to her she said that from you know we're very clear when we say well I say it all the time I started with 10 grand I started with this

alright and and everything I do is about the people who don't have a whole heap of money. Trust me. Poor people's money has to spin faster. I'm glad that you believe I have that much money. I'm really, really appreciative of the faith you put in me. Boy, big up Boogie. Trouble maker.

I'm not going to stop saying Boogie. I want to live up to your view of me. Big up Boogie. I'd buy her a coffee to your view of me. Big up Boogie. I'd buy her a coffee if she'd have me. I'm going to send her a Starbucks card. New Starbucks in Fontana? Have you been there? Oh, you know, I haven't been there.

Oh, Lord. Starbucks. You know, I'm a Starbucks tete, but not... Wow, hear the privilege talking. But not in Jamaica. I'm a Starbucks tete, but Starbucks in jamaica is too i don't i don't like where people go places to be seen i like to work there's a great working environment though but i don't want oh i saw randy in starbucks worse i can't go to kano boogie's starbucks

is fair thing you know and then bougie bougie yeah i actually already like that at first yeah when i heard you say boogie i was like oh yeah no no oh you've always said bougie always said bougie yeah you saw the privilege and then bougie oh gosh you know what i said to her i don't i usually don't talk about private business i'm gonna talk about private business a little bit i link her and say let me see if she's gonna vex body so far i say let me go through it to my mind no it's my business i link her and say yo i want by a piece of land somewhere see if you can help me vex me before I say it. Let me go through it in my mind. No, it's my business. I'll link her and say, yo, I want to buy a piece of land somewhere. See if you can help me get it.

And to be fair, you know what? She did guide me. She gave me a good guidance. No, actually, I think she's really good at what she does. She's competent. You can't knock her for that. Yeah, you can't knock her for that. And she wasn't able to help me,

but it's not her fault because she wasn't the selling agent or anything. I'm asking her to go into something because I want to get a piece of land. And she wasn't able to do it. But I'm just going to twist that and say yo she never helped me out at all my money too small yeah she didn't know that no she tried to sell her apartment people if you want a piece of land check in and boogie on twitter she always has places for rent or for purchase

yeah this is some good deals i've seen some much better deals i haven't seen other places she had a 50 odd grand apartment in new kingston i was very close to grabbing in new kingston something else today 150 000 rent um four bedroom four bedroom four bedroom three bathroom i don't even see but it was a tweet with i think 50 000 in kingston and the follow-up follow-up one after that was 150 000 four bedroom three bathroom so yeah man yeah man big up big up big up and then bougie and then bougie and then bougie oh god i can already hear her cussing me well i can't actually hear i can already see the text on my screen close your hand not me yeah yeah then i need to get some heat now uh all right i've forgotten the tangent that we started

on i'd ask for fontana because of this but yeah we're saying what what kind of index could they I need to get some heat now. All right. I've forgotten the tangent that we started on. I'd ask for Fontana because of this. But yeah, we're saying what kind of index could they come with next? A food index because you could get less M on it again. And companies can be on more than one index. Yeah, but that's funny. I don't know if we have the volumes for that. But that's a good reason for-

I'm going to teach this on RAM. Go ahead. Infrastructure index. Infrastructure index. I like that's funny. I don't know if we have the volumes for that. But that's a good reason for... I'm going to teach this from Ryan. Go ahead. Infrastructure index. Infrastructure index. I like that. Yes. But then what would we have? We'd have Trans-Jamaica when it lists.

Wigton. Wigton. That's strong. JPS. JPS. When it lists. Yeah. That's strong.

I like that. But I mean, three things. Can I stretch it out and put it in Carib cement? I can see you stretch it. That's an easier stretch to me than Fontana. Carib Cement has infrastructure. I could see that. Who else is infrastructure, though?

A creative's index? You'd have Lab, you'd have iCreate. Lab, iCreate. Who else could make it? But it's just two. Two is not an index. Two is just two picks. But then I guess...

I would also say tech, but I'm looking at T-Tech. And who else? Tech. make it but it's just two two uh two is not an index two is just two picks but then i guess i would also take what i'm looking at t tech and who else tech um what's his name again i create could make a tech index yeah and the xerox guys what's your name again oh those guys that lose a lot of money in central america i forgot i forgot it but yeah i know them pjx pjx owns it pbs but pjx has a stake in, have you seen the results? Most recent results. Are they good? Should I bother? They're much different.

They are much different. Much different. PJX? Yeah. As in turnaround has happened? I wouldn't say that. Say what you want to say. Okay, so the FVPL, Fair Value Profit and Loss, has brought them a lot of money this quarter.

What do they hold under that? I was going to ask you that. I think PJX owns PBS. They own a piece. They own a lot of little things. So how much did PBS move this quarter for that to happen? Maybe this is the first time they're recognizing it. Oh, maybe.

But it's the second quarter. I feel that. I forgot to check it up, but they didn't really, I didn't see where they stated specifically. They didn't give details? What they said, it's an investment in the fund. And you know,

they invest in a fund. So. Yeah, it's actually, it's actually the second part of a fund. So maybe they're tracking. It's like an MPC, as someone explained it. MPC,

we want, we invest in a fund. We take the public money and invest in a private fund of sorts. Yes. It's actually the second part of something that happened before. So we need more money,

but we can't get one man to buy in. So we take our people's money into our company and invest it into the fund. If you actually hear how Leachan described it, it's Leachan's business. So if you hear how Leachan described it,

he describes it very differently. And the impression I got, as usual, is that he, and we know know he doesn't have to do it he chose to do it i gathered so i mean thank you again michael and good work with what you've been doing with our bank so you know thanks mike pity about the helicopter stuff yeah i tell you his helicopter annoys me oh yeah anytime anytime i stay i stay in new kingstead i hear i his helicopter wakes me up and

reminds me that i'm not i'm not reaching yeah i was going to say that yeah um this is this is where usually that's his motivation yeah no that is motivation yeah i want to be the annoying helicopter guy yeah yeah yeah you're way till 4 30 the goals i have to look up the city fly over doing a park fly over doing a park'm going to tweet it yeah that's why I'll never have that level of money but no it's nice

but thank you Michael for what you've been doing PJXO the latest numbers have them ending August 31st with a profit of 795,795 is this in US dollars

it is in US dollars wow that's a lot of money and what's that compared to the previous squad the previous squad the same period last year spli supply uh last year they had a negative 222 228 so they've turned it around so they're realizing so they're booking the movement of their investment that is great to me so it will look like a previous quarters what the movement of the investment was

that there were if it was being booked because it was probably very unlike it was being booked because you kind of the six months six look on the six months you can see that the i see what you're saying so the first quarter before this wasn't it wasn't that hot wasn't that hot either yeah something was happening now so yeah under six months under six months yeah you're right on the six months august 31st this year 2019 their six months profit is 890 thousand 591 and their three months on august 31st is 795. so you said the difference between those two would be last quarter which wasn't that great yeah and six months last year 2018 negative 723 000 on revenue of 38 000 that's so funny it's definitely something they're booking because their revenue hasn't um the revenue for the three months is 2318 us it's fully the fvp yeah yeah so i want to know what's that i want to once i can track it

better i have a better expectation of where this is i'd say something but i'm gonna leave some homework for the earning season people in fact i'm gonna make this one nice and short for the people who some people like it long some people like it short it can't please everybody so i'm gonna please myself i'll just go into some quick shots for here because we were talking about the index so let's go right back to the index and let's wrap up how you feel about the index people ask me all the time how i feel about things that i'm sure you get the same questions we get asked about how we feel about things that we can't know how we feel yet yeah yeah or it's dangerous to speak about you know how you feel about the trans jamaica highway ipo that's going to come that we don't know

i was kind of annoyed by that i must let my nines know because i went to the launch thing which was a launch it was the launch of an announcement yeah so just tell us about this thing but we're not going to tell you much yeah and i can understand why they would do that i see there's a lot around it but i like the professionalism of it and big up nigel clark my mp carpet god um i shook his hand while i was there i was pretty sure he had no clue who i was and that's cool but i'm happy about the job he's doing i'm still happy about the job he was in a rush he had a security with him so i just said you know thank you i just call him nigel i know what i'm supposed to call him nigel i'm the most honorable right on i don't know what i don't know i don't know the proper terms yeah but i'm thankful for the job he's

been doing and the job he continues to do. So how do you feel about this index? All right. So remember we were just talking about he don't know how to feel yet. I have to, I really want to get up and look at the actual composition and see where... But you have a good idea.

No, what affects it? Yeah, definitely. What affects it most are things like JBG, the biggest companies in this. Ah, exactly. I want to see how much they weigh. Who's going to weigh it down? Well, Wissinko is in there.

The big dog. So you know, yeah, Wissinko is going to move it. CPJ is also in there. Yo, they're going through hell. Yeah, but how much are the index to the tech ops? I want to have a good idea so I can say, boy, CPJ is... You have a good idea of the market cap of these companies. So Burge have a nice market cap too.

Carb Cement have a nice market cap. I think Big Up, Last D for getting there and Last M for getting there. They have a nice market cap too. It's actually going to be a very interesting index. I like this index more than the financial index because the financial index is just NCB and friends. But this one is... NCB and waiters. in tbn wayless yeah man you make man you make we get a copyright suit i can't take that because anything marley gets gets pulled quickly big up the marley's for doing business the right way for years uh this is an interesting index i'm actually excited about it jbg you're right he's on it and

jbg is we talked about him like episodes now yeah jbg has a huge u.s impact and their market cap is nice but look outing there right now career as is on this big up my old employer career as heavy index movement also and they are distribution then we have jam t peaking at the finance index because qw is part of the finance index they are invested in the finance index and Jamty will be booking some of the gain from their holdings in QWI. Yo, here's a little tidbit that I never said nothing about with QWI. I'm waiting for these things to come true.

Yo, if you know, I've never been this happy to see a stock fall. Never in my life. I've never been this happy to see a stock fall. Jamty have a licensing deal with QWI where they book $ million dollars every year annually to provide um to provide admin services for them they're already providing admin services so they know they just have 12 million coming in on the books straight profit by the way to me in

my mind yo big up big up good business big up good business you know who else has that blue power blue power yes i ran some numbers on what blue power looked like after the lumber company come out and those trophies uh-huh yeah blue phone number company gonna be good i hope i hope i hope i hope the lumber company dropped too i know i'm gonna drop like a qw i drop because i want to eat some food next year oh my god you know so my personal view on this index, I'm excited about it. I wasn't as excited about the financial index. I was more excited because it was happening. But this I'm more excited about because I think the companies are going to be a lot more even.

I don't want to talk too soon. I'm going to run the full numbers on all these companies. I want to put together the index myself personally. I see what it looks like. I see what moves it. But I think a lot more things are going to move it unlike the financial index yes gk is on it how could i skip that yeah gk is huge your gk might be the ncb of of that yeah it's quite it's by market cap so you're never really sure because we sing no gk gk gk heavy g and career is heavy too you have to watch it yeah you have to watch it are you wondering this one out watch it. I really want to read this one out and see what's happening.

Yeah. It's a good one to watch. Yeah. I'm going to keep it nice and short. I hear that we can't do any episode below and all. BAM Productions. Big up BAM Productions.

Martin, over or out? We're not. 41 minutes? People are vexed. Well, let's see if people are happy because I'm going to wrap it. You want to wrap it or you have more you want to talk about

than I? That's fine, bro. Just one thing on the blue pole. I was very vocal about blue pole and the lumbar. blooper and the lumber And what I thought was going to happen In terms of the sell off Now that they released New information on what's going to actually happen It's very different from what I thought was going to happen

Tell us what's going to happen Okay so what I thought was going to happen Was that they were going to sell about 20% Give away around 20% of the company. Basically, MJE and MIL. What's actually happening is they're giving away the full company to the shareholders. So if you're a shareholder of BluePaw at the X date, then you're getting equal shares that you had in BlueP of the lumber company oh yeah

we completely split from completely that was a major point in that even if i do want you guys here you get a nice tidbit there i was holding that one but but you're right so blue is it's almost like what the government did with wigton yes they're not selling some shares they're getting rid of it completely so in fact they actually say in the in the circular that you're referencing they actually say in the circular that um i'd have it up in front of me but i i'm going from memory so forgive me if the words are wrong but they actually said pretty much they admit that there might be some fallout in value to blue power because they are divesting you know i personally think that they're just being careful there you know big up chrisberry no reason at all just big up chrisberry that's all i'll say just big up chrisberry however um i think that they're just being careful there's no going to

accounting there isn't going to be any real fallout in true value there might be a fallout in price because people are not i'm holding back myself i'm saying something mean there might be a fallout in price because the reaction yeah but the value there's no loss in true value because one as a shareholder you're getting so everything i just lost from blue ball i've got it back in my pocket in a in a more tangible way because before anything that blue ball wants to do with lumber then do it and you never know say exactly no i own number and i'll be going to shareholder meetings and all that exactly they got boogie again for agm challenge guys go to at least one agent for stock that you own this year please yeah sorry i spoke away for that i want you to say you get you own lumber in a more tangible way

before you yeah secondary holding you hold blue power and blue power actually owns the company no i own both blue power and lumber so i'm going to be going to shareholder meetings for lumber decisions decisions i can have a say yep i think this one is it's actually good you don't actually you lose value in blue power but you get it back from the actual truth you don't lose anything you never last one i won't go on better you don't lose of this tidbits are giving people you don't lose of value because blue the lumber company has to pay blue power for the amount of assets above the cost of liability so cut the boring part the point is let's say after you take out the the debt on the books and the value to Blue Power,

let's say it's worth 100 million. I think it's something like 112 million. Lumber company has to pay Blue Power the 112 million. So effectively, you're buying the assets from Blue Power. Exactly. That's basically what's happening. Exactly. So Blue Power doesn't really lose any value.

And as a shareholder, I get value. Because Blue Power doesn't give us the money. I hope Blue Power shares fall. If you think I'm buying that stock make it drop make it drop and then i won't go on better they make a little thought they say blue power may choose to participate in the coming ipo in order to retain some not not controlling, you know, they said some presence. Yeah. In other words,

in lumber, which I just want to know how they're going to book it. Are they going to track it under the P&L? Are they going to track it as an associate or do they want to buy 25%? If they have 20%

then they're going to book it as an associate. That's a straight profit again. Or they say, hey, you know, lumber looks like it's going to do well so let's just buy less than 20% and track the movement of it through the P&L. Through the P&L. that's a straight profit again again or they say hey you know lomba look like a great do well so let's just buy less than 20 percent and track the movement of it through the pnl so yeah

up to you whichever one you choose whichever one you choose so i don't know yeah it's looking good to me yeah i'll say this it ended with the the board or the chairman saying mr tana i don't know that's how you pronounce his name but it ended with him saying that we the amount of body speaking for the board chairman we we believe that this deal is in the best interest of shareholders i agree i agree thank you very much sir i agree guys if you're worried about this people who aren't shareholders or people who are shareholders if you're worried about this so you're not sure you say yo i like the lumber company because the lumber company is like either 50 or more percent of blue pause revenue right and a significant amount of their profit

if you think this is not a good deal i would not be opposed to you selling your shares for any prices available in the market god be with you yeah man just get your feed boy yeah you want say that three three dollars you have a lot of shares anyone get rid of them fast even if it's a little bit below market value I encourage you to do this I'm also not a financial advisor let me remind you I'm not a life financial advisor this isn't financial advice than I is a licensed financial advisor either but yeah

obviously what we're saying we're joking a little bit but we think it's great for Blue Power and it's definitely great for the lumber company and it's great it's great for Jamaica

it's great for the market it's great for shareholders of both it's probably my most that's the IP I'm most excited about I don't really care about Trans Jamaica

that much I care about Trans Jamaica because of what it means for Jamaica. Because I remember the ball in our boat. How would upon a toll on how we own it? And we weren't going to own it for a long, long time. We weren't slated to own it for many, many, many years. The

JSC and the Junior JSC and the excitement around the stock market in Jamaica has allowed us to own an asset way ahead of time. I'm excited about it for that. I'm excited about it because NCB, who is the lead broker, is probably going to do it, hopefully price it right in such a way that there's something there

for the owners, but there's also something there for us as a public. If it becomes another week done, I would be happy. A long-term, nice infrastructure thing that people can make a little bit of money from and you can go in there for the long-term.

I like it for that. In terms of actual money and excited about IPO, probably most excited about ipo probably most excited about this one as an ipo so that's my answer now you know the question that i'm going to ask tonight what ipo you most excited about you can't say blue power you can't say trans jamaica and it has to be something that you can say sir oh definitely i wouldn't say anything i can't say there we go

what do i know about JPS? That's cool I'm excited about JPS Yeah, that's cool I like that Why are you excited about JPS? Tell us how time will wrap Remember we spoke about Wicton About JPS probably buying a piece of Wicton or so

Or vice versa Yeah, it gives us exposure to that possible deal And it gives us exposure But if you think if you think about it because how jps bills so if you have people buying about the u.s go up u.s go up jps is some u.s protection because jps bills us based on the exchange rate ah yes they book that they book their earnings in u.. Oh, that's nice. Yeah, because it's owned by a Japanese company,

so they work with the US currency. Yeah, so this is some US protection for those who have an issue with the rising dollar. If you think that dollar will go up, JPS looks like a good one. Listen, anything that you spend money on consistently, invest in it. Boy, we're tired of spending money on JPS consistently. Yeah, there's no way around it. So it's a way to eat. Yeah, that's why I say people who know the old tweet, I'll bring it up in a little while. I'll put it up.

So hopefully, maybe the day of this episode, the day this episode drop, I'll drop that old tweet. But I say, I stop complaining about bank fees. I just buy bank stocks. Buy bank stocks. Yeah, because I get it back in my dividends. My dividends. Yeah, straight up. Yeah, that guy's

Advocating for his dividends You're goddamn right Oh Sorry I forget That I'm not supposed To like dividends too Which I don't care About dividends

But I care that people Care about dividends Yeah same Yeah But yeah I'd get that back From the banks I'd like to do the same

Thing for JPS I hope water commission Come on too Or some form of Water commission Comes on I think it might be Too big

Or it might still Have trouble But who knows I think that's the issue in the finance in the in the finance world there's things you can do but jamaica is so profit oriented that you have to come making profit already yeah yeah yeah but who knows i like that so a nice quick one for you guys this was earning season i'm randy at rt euro and i'm the night h then i i hope you guys love this i hope you understand what the index is more now i hope you have a better idea and i hope it means a lot to you this is what we like to a little bit of entertainment a lot of information see you guys next week all right guys