Earnings Season - Earnings Season: Episode 2 - Not Less Than 20%

Episode Date: August 22, 2019

On Wednesdays, find our hosts Randy Rowe & Danhai Hall sharing their thoughts on the Jamaican stock market, Finance and General Business. Find Randy on Twitter at @rtrowe and Danhai at @HDanhai. Earnings Season is an Everymickle.com product and a part of #TheJamaicaPodcastNetwork ★ Support this podcast ★

Hi guys, welcome to another episode of earning season with me Randy at RT Raw and this is Danai at H Danai. Are you changing names? No, I'm going to change the name. It's H Danai. wow h then i um and this week we're we don't have any guests so uh it's just danai talking i guess randomly about the stuff that we we think about the market um we're thinking that every now and then we might just do a one episode where it's just us talking because then i do have these conversations a lot and i'll see where it goes people like it they like if they don't they don't and if we have to edit out a lot of it, we just have to edit out a lot of it. But yeah,

it's a good conversation. I just asked them if it's seen purity, consolidated bakeries. Unfortunately, I haven't skimmed through it. I think they're down on the quarter, right? It's a year in.

Oh, yeah. They're up. They're up on the quarter, down on the year. Oh, yeah. 53 million in fifty fifty three thousand I was like I never mind I lost versus fifty three thousand dollars against couple million shares that's yeah that's not enough to raise a comp the EPS is also significantly right you're hypocrite

because because they have they have 4.3 million in comprehensive income oh i'm looking at the report and this yeah versus versus 1 million last year they were where's the comprehensive income coming from ah you sound like you know what you're talking about there we go yeah yeah yeah and all comprehensive income matters yeah and that's the issue i find that because most of them say not all come because that's a special thought in the market you always unrealized gain on investments actually need to go see what is our investments are they don't know yeah maybe they wouldn't they wouldn't classify property as that unless your purity owns all right one thing at

the time let me see where it came from that's actually cool yeah that's there that's actually cool it's a comprehensive because a big is a big jump this comprehensive income for the quarter is four point for the quarter is 4.3 million and versus 1 million last year and for the year is 16.9 versus 19.9 so still down sometimes when the year

is done it doesn't matter if the quarter is good if you're going back on a rise then that's I like to see when companies are down

not to say I like when companies are down too badly I just when I'm looking for opportunity in the market I like to see when something happened in a quarter before or two quarters something within the last year to say oh to bring the eps down and if that thing is reversible then i know going hey i just bought a bargain i'm buying into the future i'm buying

the reverse of the profit line that's true i just realized we went straight into this um hi guys welcome to earning season again where where is as you hear randy and then we talk about i guess what we want i did intro the episode but i feel like maybe i don't know i just said we just went straight in yeah the numbers are in front of us yeah you know that i hadn't seen them either usually that's the way For the auditors Alright Yeah Reasonable speculation You don't get too Fancy with it But you know

You give yourself You know what happened You know what can happen So you give yourself Room for that Being able to happen You try to explore Opportunities

Which one makes the most sense And then you try to make Some investment decision Based on that And cash flow And that's why I'm a teacher And the cash flow They have 23.5 million in fixed assets

purchased in a quarter Oh and 600 financial investments is I hate how to catch all that so that the purchase of the fixer obviously negative 23 million yeah and then the financial investments is 641 thousand positive 641 thousand versus negative 1.7 million the year before and at the year end it was 887 yeah so I I know that owns up no I think that I think that one I don't say burrito I know they own something like like they're surprised and I said I don't own it I don't mean like them pension I don't mean like them oh let me check hey why is it that's why so long

I like that's my talks bro yeah multiple portfolios what is really cut out I mean portfolio so I look at all of them as well. Oh, okay. Cool, cool. Then it's broken up later on. Some things you just can't get out of. I thought you were going to tell me you're secretly diversifying. Oh no, I am diversifying. I am diversifying. It's heavy diversification. I'm down on a lot of the new buys too. Yeah,

Jamtee scraped me. I just spoke about Jamtee. You're down on Jamtee? You're down on it? No, I'm not down on it. Okay just spoke about Jem T. You down on Jem T? You down on it? No, I'm not down on it. Okay, I'm down as of... I'm down on my last week... Not my purchase, but my last week figure from Jem T. So, it went up, it came back down.

Hmm. And that really hurt. It hurt me because, you know, you got some gains from your unrealized game of course but it came back down after selling in the market to see where a director has been selling some shares yeah they do have a lot of reports every day almost every day now almost every day that a director has sold and bought sometimes and then sold yeah so the price is being pushed though but I swear to me, you know,

you'll see something in the future. You're like, oh, cool. Jamty doing this, bringing Qdoba on board. So we're preparing. Don't manage to buy into a company like that specifically and think, hey, we're going to bad day.

Let me reduce my holding. And we saw a couple of times now where a couple reports now two or three where jamt is doing better just on qwis input yeah heavily on qwis heavily heavily so in fact i think that they're trying to qw i essentially replaced the supermarket yeah i was i even had a i said it on twitter all day i was having a conversation i mentioned jam t around asked what i thought about it yeah but what i said was they replaced the low margin basements the high margin business because any unrealized gain on investment it doesn't have any margins there's no operation off that so it goes straight to the bottom line if you make a hundred million from some revenue from a supermarket yeah there's a whole there's

a whole heap of splitting up that might come down to one or two percent sometimes one million profit yeah and a whole heap of maintenance costs with it because everything yeah yep was investment company is you realize unrealize game of your stock goes up a hundred million dollars then that prepared has revenue and it goes straight to the bottom line yeah i know my analysis out there, they love to see that change in QWI, in Jamty, because they can say, oh, yeah,

the margins got so much bigger. Mm, yeah. So, in other words, the return on, God, the return on equity, technically, the return on,

no, not technically, but yeah, the return on equity for that side, the business is much, much better. Yeah, and there's a lot of overheads i love that but they haven't actually they haven't actually caught up fully i remember seeing that myself let me actually bring up the numbers with jam t i feel like we're saying something else and then we got off track oh yeah it was what's done so it's not done for the air it's not done for my for me for my holding

mm-hmm I just I lost a nice high on it last week I see far back I like last week at seven dollars and sixty four so I'm watching I'm seeing the rise I expected her eyes because hey you know last week we know something's going on in the seven twenty nineteen yeah three months money start coming to them you know better way more efficiently yeah and then nothing nothing reverse basically that reverse would almost reverse almost reverse my profit on that one stock when you look on when you look on on and really or as in you almost back straight flat no no no no i bought at three four something three something okay so and it's currently at 5 44. it could go but yo don't be surprised if this thing go right back down to three dollars yeah if that happens i'm back i'm buying more so i'm even tempted to buy at five something in the queue right now because my expectation next report at least so if

the liquidity stop stops coming in on the sell side then maybe go back up but when did the car five something in the queue right now because my expectation next report at least so if liquidity stop stops coming in on the sell side then maybe go back up but when did they call to end they caught in june so i got a report just now um yeah so in a september is another one another good report and it's moving but it might move before them because the selling pressure might disappear yeah selling pressure what i mean the there's somebody on the sell side pushing shares in so if there's not john jackson always writes about it he says who john jackson okay yeah yeah yeah well he does which is actually to explain it because i know a whole people read that and then just tune out to me. So the hill's on the queue

and if the queue on the sell side is small and it's significantly higher than the opening price, then anybody buying into the company will have to buy not a premium sort of or at least be pushing the price up. In other words, anybody coming in is going to pay a little bit more. A little bit more than.

Which is what causes the price to move up. Yeah. So if there's pressure on the sales side, then there's a lot of sales coming in. There's a lot of sales

coming in. And that generally pushes the price down because I put my trade in the queue and I see Randy puts a trade there and the price is smaller

than my price. To beat him and get my share sold, I put a smaller price on Randy. So we fight our way to the bottom and the price drops yeah i think the kids are why for that but um what what what happened in that situation is is that is that all right well here's a real life example of that situation i think i think i saw it happen a little bit with SSF this week also, where... SSF it happened with, I saw it happen with the Wigtown file a little bit also.

And there's one other stock, I don't want to say that stock yet, but yeah, I saw it happen with SSF. And I think also Cygnus, this is the third one, I think I also saw it with Cygnus, where you see a lot of people like signals let me see because i'd bought a little yeah like 27 and went on to 26 and around to 25 and i can tell it's because the people who the other people selling at 27 26 who bought at 1372 which was the IPO price. So, boom, 2744. There are a lot of 27 sales. So there are a lot of people who I remember saying them people

them coming at IPO them get burned, you know. And they get burned over what, two years? Not just that, over two years

they have to watch everybody and them cousins who do IPO. Talk about them doubling and tripling and them selling. I mean, I bought some signalsals at $9

At one point So there are people You know them people Get really Really upset And say It's not worth enough So now for these people

I'm sure You buy a 13 You get a chance To sell it at 27 And it's not good Every day It's around the same price When I'm looking

I was making my money on it Plus some And then I said Boy I'm not going to Afford it Because the queue days i run the same price and i'm looking i was i was making my money on it plus some and then i said boy you're not gonna further cause the q not really move up you have to you start thinking about exiting because you make your profit yeah so i guess the holy but dames about that a holy part all the time um and it's on the the the signals the us oh yeah yeah it's not moving like how the other jmd is moving do you think i should i don't know if you should move it i can't take that but i i yeah our friend chad she responded to my comment on twitter and she i mentioned signals usd on twitter another french responded

to me she's been holding both usd and jmd from ipo and i thought she should be happy with it us to the JMD movement what is he like it no more move it's the same stock the same rights on the profit of the company mm-hmm same as on all the assets of the company so it's actually when you hear about value versus the price the value of that stock is the same as the signals GMD yeah if you guys read any more articles right about the pirate party Pissou or pirate party Posse and I screwed up word of that term but like anything that is once I cast a bit every other stock yeah so those two are literally the same things have two different names so in essence the value of one of those you know is the same as the value of every other one of those. The other one is trading higher.

So if we're looking at a value standpoint, so you want to buy the whole company, then you're getting a discount on one side. Yeah. Who will, and that side being the U.S. side, but who does that transfer? Who does transfer? Yeah, if I buy the U.S., who can that transfer? What is transfer? Yeah, if I buy the U.S., who can I transfer? We mentioned this the week when we had David on.

Shout out to JC Knight. JC Knight. JC Knight 2 on Twitter. Yeah, for that nice interview. We got a lot of feedback on that. But he mentioned this also. I remember mentioning So who will buy the US

Versus the Jamaican And give you back Jamaican instead So if you want to get Say the USD stock So this SEI USD If you sell it as SEI JA You can quote it in Jamaican dollars When you're selling

So you buy it for 13 cents You buy the USD If you go on the market and want to sell that USD stock and quote it in Jamaican dollars. It's like when you're selling, so you buy it for 13 cents US. You buy the USD. If you go on the market and want to sell that USD stock, you sell SCIJA and you sell it in Jamaican dollars. So you can get a conversion rate on it even.

Better conversion than the buck. Can't give it to someone. That's actually a fire thing, but I'll say that again because I hope some people just heard that and realize what's possible from that. Yeah, yeah, yeah. I was thinking about that. Yeah, that's a set exchange rate. Yeah. that again because i mean i hope some people just heard that and realized what's possible from that i was thinking about it yeah that's a set exchange rate yeah yeah

anyway okay but but that's scija versus scijmd yep scijmd if you want to sell your SCI-JMD in US dollars You buy You sell SCI-US But you can't do that You can I can take my SCI-JMD and sell it as SCI-US Not USD US I can buy SCI-US and sell it as No, SCI-USD and sell it as SCI-JA SCI-JMD and sell it as SCI-US

Why do they have two? I don't know why I have to do it to be honest that never saw the point of separating I like that but no seriously why do I have a CIJ versus a CIJ MD no they have you TMD you know a CIJ MD yes cells oh yeah that's active stock that's what we thought when we said signals yeah but it's also the very same stock That is SCIJA It's the same In terms of value

Value yes But in terms of selling it You can't You can't have SCIUSD stock And sell it as SCIJMD stock Why not? That's what the mechanism There is right now

But who says that Because it's the same It's the same It's the same stock So my thought was That you'll just If you sell it as this You can sell it as that You can trade money over right no not even your thought it makes sense

no but they are the same the whole power pistol thing so they have to be the same yeah so how why can't i sell it it's not trading so you can you can only yeah but why can't i choose to sell trust me bro i don't have a good answer for that i don't know i think it's dumb and can be worked out better than that it'd be good if we had like some market experts we could reference yeah in jamaica anyway um maybe maybe we'll edit that part out oh you know leave it in let's go um that back to jam t let me not even touch that back to jam t yeah so they have um that they have replaced the supermarket income with their qwi income you know and the qwi income has given a much better margin he had mentioned that and so that during the third quarter the third quarter ended june 2019 and i'm looking on the jamaica stock exchange website for anybody wondering

listening who managed to not know i'm looking on the jamaica stock exchanges website which is jamstockx.com that's j-a-m-s-t-o-c-k dot e there's no dot sorry jamstock e-x for the x.com um and so you can find all you marked information on every listed company in Jamaica so it's a it's a nice enough website it's not as clean as every Michael calm which is my website which is a free plug that I'm pushing for myself but it's a nice enough website and it has all it has all the information on all the listed companies you can see who the top 10 shareholders are you can see how the each company has performed each quarter you can see here from the directors the senior managers you

hear how many shares they have but i have to tell you um you can find the prospectuses there once there's any announcements on ipos that's the place you go if you care about stocks in jamaica jam stock x.com in summary you have to go j-a-m-s-t-o-c-k-e-x dot c-o-m slow that part down anyway so jam t which is Jamaica teas just drop the third quarter results it's funny I do that so I will looking at the the financials and the first thing you sort of cover page and the second thing is the board of directors commentary I just need to just screw up I'm not interested in hearing what you have to say like Like, I read that last. You know I go first, bro.

It's just, I don't want any, I don't want, first of all, it's your job, right? So, I don't want to trust everything you say. I want to see the results first, and then I want to hear your story. Because even though we don't have this thing I say, companies lie, CEOs lie, but the numbers can't. And that's a joke because legally legally a listed company cannot lie to you but they can say they can choose what they want to say so they can't choose what not to tell you sometimes yeah but you know they they have to tell the technical truth that's a technical truth but they can give you the technical truth in such a way what they're very good at doing is saying

something that sounds like what you want to think they're saying so a good example is jm b says that when the align best deal is finished they will own not less than 20 percent who the hell says things like that you know somebody talking to him say yo how much money you have not less than three yeah but how much you get not less than three grand so you have three grand not less than three grand so you have more than three grand which is also not it's it's but it's how companies because they can't lie and they have to tell you that they're taking a certain stake and they can't but they don't want to get how much of a stake just in case you

do any projections so which is weird it's like they don't want me they want me to see where they fall beyond fall behind their predictions but yeah yeah this is weird yeah yeah so if they told me then i'll be holding them to that line yeah if not then there's nothing to hold them to not less than you know i would have not less than 20 profit increase okay which i mean what they will they're going to have what anybody work that number yet i work you are not sharing that but whenever i hear everybody talking about whenever they get to the ally investing they say yeah but it's kind of complicated how the whole

thing go it's not that complicated it's very straightforward yeah it's just it's pretty straightforward it's new surgery which is such a query old so it just call it such a core boom yeah such a core group and maybe owns 20 not not less than not less than so 20 percent more percent yeah yeah of their profit so i think they did that because of that you're an associate company if you're 20 percent and then and then yeah that literally is associate company at 20 percent and majority shareholder once you pass 50 or 50.1. Yeah, you become a subsidiary. So they don't want to say, they can't legally say that for 50.1. So they're just trying to box themselves in that we're definitely going to be an

associate company, but we don't want to say how much we're going to hold. And even if they have just 20% they don't go over the 50 what I expect them to do record share of profit in associate within the P&L so they can

really take a piece of the bottom line from Sajakor that's what Sajakor has been with with XFundra you mean with Playa with Playa

so yes so they report that in the P&L Panjam is famous for doing the same thing with its associate companies well Panjam is set up that way. Exactly.

But hold on. I think investment hosts start defining themselves in that way, in a certain way that they can do that. Sajikor is doing it, why JMB wouldn't do it? You know how inventive those guys are. Once somebody does it, they follow. And you know the fact that Sajikor is in the same market it's good to say hey I'm I have a piece of my own market share the what I find funny is the holdings of that the

holdings of that must be very funny in fact no no not just so just even suchikor because Sachikor how much does JMNB does Sachikor own? Oh yes I had that number the other day Yeah let me bring it up it's a funny thing though because they already own a certain percentage so on that

on that basis JMNB buy the books shout out to the textbooks on that basis JMNB should be worth a lot more because they didn't

share buyback I wonder how many people have worked that out for NCB already Guy Den's one of the biggest owners at ncb so essentially ncb just did a huge share buyback closing the loop i call it yeah yeah but but those those shares don't get counted as um shares i no longer own or are like it's not considered that they're off the market they're still issued shares what's the name um jb jamaica brothers they did something it's something similar to that the jamaica brothers trust i think his name is uh the shareholder the shareholder separate entity that i control and i own shares in myself yeah and i require the profit from owning shares only shares in

myself so anytime i increase and those shares i think the term use was that it will the shareholders will benefit from the increase in share price yeah that's the way I see it it's a self-fulfilling prophecy if it goes so if I share goes up then the shares I own go up and my personal profit line goes up which then has an effect next quarter without a have to report it I keep growing I keep showing a profit line consistent you can blow an entire company up with that yeah you can grow you can grow your share price from single digits to 90 it's really interesting how that works yeah yeah yeah it's like so it's a real share buyback on the owner's end say I own JBG and they do that and they're reaping value

from their own shares by holding it in a separate entity. Then I'm with those outstanding shares are actually limited without being actually limited. Yeah, yeah, yeah. I'm actually getting value

from them not being out there on the market. Yeah, exactly. Because it's a fake buyback. All the benefits of a buyback. Yeah. But you don't officially have to call it I'm surprised that I'm surprised that there

are a lot to that in Jamaica it was interesting to me to be honest what yeah so as the FSC ways to find is that I think it's fine legally okay I mean I mean you have no doubt that it's legal and if it's legal then I'm good yeah if we really wanted it to be legal we would make it illegal all right let me let me try I'm calling some bus I'm sure somebody's listening and they're like yeah but they started with um what did we start with it's actually that specific company that I didn't actually I said what do they already purity purity owns i cannot i can't i can't remember what is this jc also lists the stocks like that i don't i guess remember their system uses a weird alphabetical system so like the lab is

under the t's because it's actually the lab yeah oh yeah because the limners and bars right what it is they don't they don't do because it's not thing there it's the so you start the name yeah but they don't die for everything that's actually everything has to be on it and but even what else has that on it the incorporating incorporated name for that visit they i don't want to say yes that might be why you can always you can always check the prospectus yeah so people in the prospectus it tells you exactly in the prospectus that it has to tell you is what the legal entity that you're buying into is like what the actual name is and that is under the section called let me not get this wrong

about the company where they have to tell you what they do yo hold on watch me take the whole hour and it should be about the company but i want there's a part where they legally say it there we go on about the company 7.2 the history the company was incorporated and this i'm reading from the lab prospectus guys page section 7 page 20 it says page 20. and in the pdf is also page 20 and in the PDF is also page 20 yeah I was incorporated on March 30 2009 as the production lab limited and on April 22nd 2014 it's changed its name to the Limna's and Bart limited so it is a nice change okay yeah Connelly referred to by its acronym the lab yeah a funny story behind that name

to a guy that came up with that name is on Twitter but I don't think that's my story to tell that's a that's a cool name I like cool names like that yeah I actually thought it was Randy yeah boys yeah it's a cool guy was something I can't take credit for that one yeah was a virgin mine on and off virgin I'm sure I've been listening to this right now and saying unprintable things. But going back to Jamty, which, guys, I can't remember. When I remember who consolidated Bakers, which is Purity, owns,

then I'll tell you guys. Until then, we'll just keep talking about Jamty. So Jamty... What I also found interesting in the report was the rental income or if i income line that's growing i think it's 25 million somewhere in there search rental i don't want to search for it i wonder if i did i still own the supermarket property oh they i might they might just own it because I know how they did it they bought the box in American they sold it into a come another company that

they owe that they own I don't they own it is that they own an associated company because one of the owners in the company owns it yeah basically foods or something like that I think they want a piece of it too basically foods I think that I think the director owns a piece of it so which is why it's called an associated company there's something funny in that you know it's associated even if if you and i have a company and i own another company that company is associated by virtue of the fact that i own it even if it doesn't do any business with you yeah fact that I own it even if it doesn't do any business with you yeah I know that I was a reporter for a report that's called it's a joint venture so I'm wondering if I yeah there was a time when they spoke always a drama to be

noticed every time they move something over to basically you lose it here and I don't it doesn't come in under OCI either Oh Michael small interesting not even significant I think it's no I think it's an associated company remember you have more than one way you can become associated one of the ways is 25 percent 20 percent not less than not less not less than 20 percent ownership but but and now we can become associated with significant control yeah not significant control director oh i i know you mean i thought so i'm not like same man as you before. I mean, you mentioned something else. I have to work with an associated company, associated company,

like accounting wise. But associated company legally is just here, I have some association with. Yeah, but then you have to report things as well. So to whoever is listening to this now and they're frustrated because they're like, guys, why don't you just check the pay? Because the financials tell you. I get the financials tell you everything right here um jame the principal activities of the company and its subsidiaries so you are correct base city food is listed here base city foods limited since february 1 2019 that's this year that's no i know that kind of close call with you and i spoke what is last year sorry oh they changed

something they changed your name or they incorporated something funny enough that's right below qwi investments limited you think everything they'll list basically if it does well enough you don't have to do well honestly it just have to be a growing concern you can almost anything list these days yeah but yeah they've marked that point so we can edit that name out just in case you got picked up but um i'll just we'll just we'll run from the point um yeah do you think the list i said do you think the list you said maybe not i said okay do you think their list do you think the list uh said maybe not i said okay do you think they'll list do you think they'll list uh maybe not because the perception is that perception is a lot of some of these people in

industry so if you list a company that's not necessarily doing so well small profit line how much you can really get out of it i get you um but we've seen companies are not doing too well this and and they get a lot of it but it it's how your broker position is what your plan is for the future trying to grow sure if you're coming to me with you've been doing this all the time I asked for money goodbye yeah well that's for you but some people do it and I actually don't mind buying into that Eric are watching if I have a supermarket there various reasons to list I think what I'm liking now is that it's becoming less taboo okay coming less taboo not just the

list but to be open about the fact that i'm listening for the tax break you know people like yo this company is for the tax break should i be ashamed that yeah that's like saying you're only this job for the paycheck yes all right yeah when you go to your job this is probably above a certain threshold the income the income income tax threshold if you're above that threshold the income tax threshold, if you're above that threshold, ask yourself, would you do the same work right now, but you don't pay tax? Yes. You can be a couple of dollars over the threshold and you're paying tax. So imagine how you're fee, $20,000 per month over the threshold.

Yeah. You're paying tax on everything. You make $100. If you make $100, I'm losing if you're yeah anyone you may pay i'm losing i'm losing the extra value i have over that threshold so let's say as you said if we did the same job not pay tax what's tax these days employee tax when i say tax i i group everything in that group education tax yeah yeah yeah group even it's weird because it's on a threshold so if you're about if anything one above the one above the account 1.5 yeah anything about money up the man's that call 1.5 million one

no you have to think it in the big yeah i hear you i hear you yeah you have to be able to 1.5 so if anything above the 1.5 is that's where you get taxed i don't know that's right on that yeah no i get you but generally i'm thinking it's just like it's not ballpark because i know for companies it's 25 percent i know i remember back you pay 143 if you had 1.5 so no just percentage wise in my corporate days i was doing about 30 30 32 percent yeah so your question really is would you do your same job for 30% more in your pocket? Right? There's nothing wrong with saying I'm listening for a tax break. That's a great thing to listen for. That's a great reason.

I'm giving you a piece of the company that's now worth more because we can clear more money to our bottom line. Exactly. You bought a company with X amount of bottom line just because they were paying tax. And then you have it. The reality is that you're getting more money from a company that you just bought the company is making more money you own this piece of the company it looks good to me it it makes perfect sense yeah and

if you have the right plans and you build a company the right way then you utilize all the space that a tax break and the market access to capital gives you and then when the tax break ends where your company is it shouldn't have a great fall-off so I've been looking at a couple of companies we're coming to the the first 10-year mark for a few people a couple of companies have come up Lascaux, LasD is now a main market company and so on and what I respect them for is that like the company hasn't really stumbled too much oh yeah yeah cuz remember looking on the bottom line and net profit line

once I start paying taxes they're both to take a 25% hit yeah that they're and couple companies have done well I think creamy has a creamy if you mean what they're below the profit they were making last year just after tax break but but they're always not from the tax break but they didn't take a 25 they made it up they made it up yeah i don't want to get it wrong but it's so it's so good like cream me right before they listed it and cream it after after the break oh yeah huge huge huge difference so just like the money they get from the listing and utilizing the extra profit

that from the not paying taxes yeah this is it's a limit it's just business this is why you have a business you make money you want to keep as much of that money as possible so you can expand the business which is the whole point of the junior market listing with the tax break they want to list for the tax break yes yeah you can do something you can wonder with that that's so silly unless you go on Twitter it's something that people say you're doing stocks for the sake of doing stocks it really does make some money with it too, no? Yeah, yeah. At least try. I'm not knocking anybody for losses.

I'll knock people for losses. You're saying you're learning. I'll knock people for losses if you have a certain sense. I cost a bedroom of mine, and I'm listening now. I won't say his name. But I cost a bedroom of mine like he is an auditor, right? Which means he speaks the language of finance every day for his job. He knows it all you and I

know English by no stocks I find accountants not read that good on sometimes these audit you're an auditor you have a certain level of responsibility where you can't be sorry suppose think about this suppose one of the companies that I am auditing buys and owns stock in a listed company or a listed company there's all these things as i kind of say can you find out those companies that you're not allowed to buy yes but then there's no but just don't buy those just buy the others um you don't understand excuse excuse excuse excuse and then yo you're boarding your ipo that you have to understand as an auditor you have a certain

level of money make up your mind the thing is there's no shame in in going out there using the skills that you have

investing against the skills that you have in whatever those skills are and making money off it since when since when I ashamed to make money

since when I ashamed to make money legally legally legally you're making money legally you can braff Since when are you ashamed to make money? Since when are you ashamed to make money? Legally. Oh my God. Legally. Legally. You're making money legally. You can brav proudly.

Like, mommy don't have to vex. All right, nobody, you don't have to look over your shoulder. I've had people, like, come at me almost upset

because I expressed that, hey, I'm here to make as much money as possible. How dare you? So, like, like, if I take your approach and invest for the sentiment

of it like i might say i'm not here to make money why am i investing what's the point i'm trying to build a legacy then you don't understand so the legacy is built on your zero percent savings it's not about the money you don't be told that about stocks straight straight face it's not about money. You don't have to tell us about stocks. Straight face. It's not about the money. Like what? What is it about? Why are we doing this here? Is this fun with us?

I don't understand. No, I'm trying to build something. Yes. And that thing costs money. But funny enough, those people, when they actually make some money, they're the first person to tell you.

Once profit goes up, they're the first person to tell you. They're so proud. So much conversation. So much arguments with boy like this shy ball is the prophet yeah i said i didn't care they said they're weird they they want the money but they cause and act away when you get it and then the second they make it happy yeah man i made a tweet um dividend investors how I made a tweet dividend investors how

how they act when they make some accidental profit and oh god and then I put a gif on it gif gif somebody gonna kill me for that

and it was a man hiding and eating oh wow so yeah man my dividend so they're all in your face they tell you

you ask them how much do you plan to make a return on this on the stock you're holding not for the long holding not for the long term yeah for long term eventually on dividend stocks just going to not have any space to grow and we keep paying out money so i was like all right so you want to see i want to make a return just not necessarily capital gain and yeah man yeah man yeah man that's not capital one day

i get like i get him some nice dividends say cool the up. Brother, that was the bossiest I ever see that youth ever man come back and him say look now, look now, look how much gain I make and he's flashing in front of people's faces. Yo shout out to that youth because he's tracking his gains. Big up that. He had a percentage yeah big up that. I know you're hiding that're right it's weird it's weird how i don't know if it's an offshoot of just society who we are because we came up as a society with almost being you know the rich man on the hill

what's wrong with him and then you know like how dare you work hard oh god and then but same time we also all wanted to get rich to have the house on the hill because the ghetto you dream is to get up the ghetto but you get your boy you know something like rich man you know that people yeah all right in prison in prison before his relocation yeah oh god so yeah man but yeah you're right

and you know what let me tie the point up let me make some sense out of it I think that what at the core of the issue is that

people when they invest they need to be actually aware of what it is that they're going for and be honest with themselves about what it is

that they want out of the investments and then actually align the investments to that it's just that simple so if it's don't say you're a dividend investor because you put your money in in separate when it wasn't flying all right yeah exactly and you say you you're afraid oh boy the you know for your work or i thought it would work yes but they're paying out a dividend so suddenly a dividend investor but the second the stock flew yeah yo you see the cap gains are maybe yeah you can just tell me saying about care about them though yeah suddenly they forget that they told you that um you know gains aren't real until you cash them out right yeah they also said i would never make a loss oh yeah you don't realize a loss until you sell it i'm looking at that negative on my sheet and i'm feeling it right

your net worth is real worth so not because you're not seeing the money in hand you still have less money if anything i mean if i say that stuff guess what you're doing yeah that's a financial literacy point people are like yo and it's linked back to ifrs9 they're like yo it's not a real thing david did tweet something he called it a dangerous rule and like it's not dangerous yeah all it says is that if the stock that you own you bought at a hundred hours and it's not worth fifty dollars you have to put a negative fifty on your books that's all the thing that you can't pretend that the next year isn't there so it's in comprehensive income yeah like that's that's exactly what it was before now

so you're making your losses in a comprehensive you just want to buy it you just weren't paying attention to them exactly and officially a lot of people that know accounts people that speak in attention to them exactly and officially a lot of people that know accounts people that speak in accounting about to speak against profit yeah i find that they ignore that so the company making its losses and investments investing your money because you use your company invest in your money and making a loss on it every year and boy you know saying go up 30 percent profit but you're gonna comprehensive income line and the loss on investment is 200 percent you just lost all the money really because the company is more worth much less yeah but I don't

sound as good right definitely I'm not going to acknowledge it but no I first nine forces me technology nothing dangerous about rule yes yeah we can't have to be more to put more due diligence on our process you know you just you know what it is you come back to the same thing I say all the time because it works in the big companies it works in the small companies

it's the same thing all the time you just have to track it you just have to track it that's all it is IFRS 9 is just the international association of whatever boring crap it's just those people saying

you have to pay attention to it you can't pretend it doesn't exist you can't pretend and that's exactly it yeah no you know what they say they say hold on if you want to pretend it doesn't and that's exactly it yeah oh no you know they said they said hold on if you want to pretend it doesn't exist that's perfectly fine but you you get to make the decision once and once you've made that decision you can't go back on it yeah which is why it's a

big deal which is why i tie in a whole heap of things together it's like the end of the marvel universe it's it's like i'm saying on the episode we ex-fond and how and such a car and how big it was that day they turned entire revenue model around it's the same thing that's why such a big deal because this they had to go okay guys we said when we bought this company that we were doing it for for the income we wanted it to run through the P&L the profit and loss the feeling. Because the stock going up. Now when they felt a whole of the hits from it they're like yo switch the revenue model around and that's why i said such a big deal because for a company to literally change

how they make money they're saying exactly that's exactly as far as their console now how the whole intricate how important that line item is to the business is turned around so before it's turned around. So before it was just a stock trading, you buy a stock at X and a site at X plus 10. And you want to feel the IFRS 9 gains off because they wanted that. They wanted the rise in the stock price to benefit them.

So now they're pivoting from, okay, the company, the stock is important to the company is important because they're reporting the bottom line of the company. So the company has to, the company itself has to do well outside of the perception of the company which is the stock price yeah i'll play devil's advocate and simplify and say that they kind of have to do that because at the end of the day the company is more important than the company is holding because the company has to especially how much they own well yeah but yeah if you think

fiduciary duty which is a lawyer talk to say that if you are a director of a company then you have a responsibility to always make the best decision for that company what they did me could be said to be the best decision for x1 because they protect the future they protect themselves from the fluctuations in the price yeah they protect themselves from the fluctuations in the price yeah they protect themselves from the fluctuations in the price um and i guess maybe they just think that something isn't acting along the lines of what we want to do then we have to change which is perfectly fine i rate that yeah actually because when you talk to the employees of that company sometimes that they don't seem to know that it's

okay to go yo i bought this because i expected this from it i didn't it didn't work out let me see something let me show one example like for example uh i don't want to talk about that yet let me see if i can i don't hold any salada unless you don't want to talk about salada or you don't care i don't care oh yeah so salada um that almost happened to me I actually tweeted Earlier this year That it's the first time

I made a loss-loss Because I chose to realise it Because you know A loss isn't real It's funny When he got the loss He told me And he said

I was going to be in this company For longer than I thought I was Yeah Because yeah It's a play It's a play That has safeties on it Yeah

Take your loss Yeah Sometimes you hear Play guys Just being like You know NCB is going to go up Yeah, because it's a play that has safeties on it. Yeah, take care of us. Sometimes we hear play guys just being like, you know what NTV is going to go up. You have a specific reason why you know what NTV is going to go up. And so the play is that you're buying the stock or you're buying something that you expect to react in a certain way based on something you know will happen. That's a play.

So the play was I had bought. I can't tell you the play. The play was Salada was at the time undervalued and might still be undervalued let's say they closed that last week as a week of August Fless I know that whatever we have August 15th in there is a week we're talking about August 15 2019 that week ended with Salada closing at $34 and so did that a great year last year yeah halfway through the year that I decided I mean I think I really go dear or no or the start of the year I mean yeah my q4 was great it didn't post a q4 numbers

separately from the fully a full year yeah I mean each other difference it was great yeah so our our expectations that was our q1 is going to continue to be pretty strong yeah even with the seasonality out there q1 yeah but something happened ah it wasn't like you want because i had a good q1 they had a good q2 so it was in the q3 isn't it so oh yeah they're not gonna kind of you know no they're not gonna kind of oh yeah yes they are whatever it was in their q3 they had a fire at the factory yeah man cute started this year I don't know I don't know what what I call it so I know that I fired the factory I'll fire a factory on the boiler I think it was something blow up they didn't have anything going for I want to say it's honored to me from the report like it was like more than half of the quarter.

Oh, yeah. Yeah, man. More than half of the quarter just did no work. They made no money. But if you look at the revenue gain, the revenue compared to the quarter before, with that happening, to me that was saying, I hear what they're doing really well because with that much days of operation, they did so well. I think they equal they didn't make a loss. They equal the previous year's quarter, even though

they didn't do any work for half. They got a loss in the quarter but the revenue was pretty close. It was close to the same period last year. Yeah, which to me is a good sign of the company itself, corporations, running good. And in the Q2, if you see it, they gained I can't remember how much they gained and they don't know the reason

the report i was just released in the q2 i'm not saying q2 guys june but i'm not sure if it's which one all right so their quarter june 30th 2019 was their nine month all right yeah man so like so in q2 is their year end in sept is here in September September okay cool said it nobody had the fire in their q1 your character had the fire in October October last year yeah and if you look at the numbers know that this fire isn't there mm-hmm that's great all right let me tell you what the numbers look like uh you can see the momentum yeah i was going to do i i want those tangents that i'm sure some people like some people hate or you notice also that you look at the asset do you look do you look at do you look at the the statement of financial

position i mean i look at it sometimes i look at it yeah generally when i'm going deep yeah i pay attention to based on a company yeah based on company like I want to if something I'm looking for then I'm looking yeah or something don't make sense then I'll actually obviously check everything but yeah go back to Salada so this quarter and three months these three ones which the month 69 6 78, 789, month 789, they had revenue of 275 million versus same period last year where they had revenue of 266 million. The cost of sales, however,

176 mil versus 164, what's the percentage on that? 176, rough percentage point one no man I want to see what actual margin is so a 64% they lose they lose what 30 36 percent that's 30 gross profit margin 36 percent I did the highway for some reason I just put the gross profit margin, 36%. I did the hard way for some reason because I just put the gross profit over the revenue. I did the hardest way. I'm looking at you. Yeah, yeah, yeah. Because I'm thinking about the next thing.

I was going to say, yeah. The margin of that and same period last year where they made gross profit of 101.5 mil against sales of two hundred and sixty six point four mil and that's a 38 so it's about what is actually lessened yeah it went down slightly I'd call that flat I call that fat on the gross profit but when he there when and the other operating income is also law yes operation profit it actually does not very good but when you get all the way down to the profit line it looks a little

better right because they how did I do that actually could I have sixty point three five six point four million in profit versus fifty six point six million in profit last year so the profit went up because they had more net finance income well that's what that's US dollars FX yeah I think so yeah it's the most boring way to make money unless you're a bank but it has saved a lot of money and burned yeah and burned burned and helped yes over and over side note you notice people like they complain about the fluctuations in the US dollar during all the time right and I'm it annoys me

because it still shows the lack of financial savvy of our of our I'm so sorry guys I'm so sorry I know you can hear me you can say I'm an asshole for saying this I'm sorry but of our entrepreneurial sector in jamaica yeah the lack of financial savvy there sometimes you show it and it even affects about because i'm surprised that nobody immediately has jumped up with a financial product just to offer these businesses a hedge if you spend jps is asking for a hedge exactly why would why i mean i cannot understand something that's entered to the size of jps asking for a hedge because jps can move the rate yeah but but other companies are distributed for some something and

you consistently spend you're in the bank shouting that you're consistently spending 500 000 us so you know that's a lot of whatever yeah 500 000 us maybe that's your your cost of goods or whatever and you know every month and you don't understand how when the rate fly from 128 to 138 how it mash up your business and i get it bro but if that happens to you every single month that you do every single month talk to them about the hedge if you don't know what the hedge is if you don't know what the hedge is talk to your business banker about it and and they need to know what it is remember that right because it's okay if you don't know it's the your bank's job to know so ask them and if them can't tell you a really good business banker is supposed to say hold on one second and take up the next phone and call it

find out and put something together and if enough of you do that the houses come with it yeah they come in yeah a product you can't contract right you can't ask. It's like NCB lead the market in banking and Mayberry lead the market in equity. If they don't do it, they don't do it. They're not going to do it. And once they do it, everybody do it. Nobody gave a damn about the filling out of the prospector's fund. For how long?

NCB going to go IPO? No. Every single house. You know, we have a product working on also yeah right great not that i mean i'm happy for it but it's also annoying i feel i think it's fair for us to feel this annoyance with the financial houses in jamaica and and the lack of savvy that they're showing and also the entrepreneurial class the lack of savvy that they're showing if you have if you have this problem every month guys every business is built

on the solution of a problem if you have a problem that month guys every business is built on the solution of a problem if you have a problem that you and all your other entrepreneurial friend them have that's a business right there solve it one time just like how rory craig walker on twitter yeah um he he does he has his company called jamaica care packages i think that i mean i mean i asked him to be on the podcast if he's up if he's up for it so rory if you so send me a DM if I don't send a DM already ask if you want come on and talk with your company but he had he has a problem his company sends care packages to people overseas in diaspora yeah and he had a problem I think because of obviously they have to use a lot of US dollars all

the time they have to they have to buy so so and and accepting online payments i think was a painful thing for him so i think he came up with an entirely new company because it's a pain point for people so the company is to accept online payments in the u.s and you get paid in each other oh yeah i think i thought in the news yeah so that's actually really good cool yeah um yeah yeah the more i'm concentrating what i can say about that because that's i don't think it's a problem that we should have oh yeah definitely i am of the opinion that it's a manufactured problem but when i start explaining why it's a manufacturer i might step on tools that i can't afford to step on

it so cool yeah but i think the opportunity he has made, it's, oh, that's really good for Jamaica. Because that's how you go. Once you have an issue, a problem, a recurring problem affecting enough people, then you have a business right there. Yeah. Everybody in this community is too far away

from the town center. Every day we all stand up down here and complain about it that guy who went and bought a car or the bus and started to carry you guys from town center to the community back and forth you might hate him now but he's a businessman he's solving a pain point a problem i know so many of them have started to become a problem that whoever can wipe them off the roads will become yeah yeah but you get a point that the solution of a problem is the um is the formation of a business quite simple and sometimes the best thing is when you find a problem that people don't know that they had yeah so anyway rory saw the problem of um rory saw the problem of of people saw the problem of people not being able to accept the payments and so he came up with a solution and that's what I like I

like that he came up with a solution I mean if you can come and give the details about it but carrying it back to everybody else carrying it back to the whole entrepreneurial sector in Jamaica same thing there's there is a it is not there's no financial problem Jamaicans are going to have right now that are new. Somewhere in the world, somebody already had it and sorted it out. I had that problem. We fixed it 10 years before Jamaica. Fluctuating currency.

You know what this can do? Well, we know what it can do because we can go and check every other country in the world that has had it. And just see what their solutions have been. We talk all the time about how... You know how financial markets need to get better? I hear that one a lot. From people in the financial markets. In the financial markets. about how you know you can't take it better yeah i hear that one other thing yeah about how from people in the financial market if you'll be in the financial markets i'm like and you're on twitter

every day complaining about oh boy that'll land up again you know you know somebody us where they come to the dollar fly i need a 125 now right hey bro go to your boss and tell me you know say we need to start with the forward contract because me and everybody else have this problem literally and just make some more money yeah and then you know what's going to happen you know ncb or chris berry is going to do it and get a bag of money and then everybody's going to fall in two to three years so you know we know of a forward contract yeah yeah do you know what the foreign contract is a foreign contract is when we and then they sell the front line oh you don't think you give up that much to be and then they sell the front line oh you don't think you give up that much or buy this

and then there's the same people backlash again on twitter because that's where you got to cause everything so the same people are going to say look what the bank never push them forward contract and i didn't say when i run up the dollar it's so funny people complain for anything but i'm saying that there's an opportunity there and i'm surprised that nobody's taking it up yet. And I'll be thankful when I see the first. First person to do it. Yeah, because it'll mean that it'll happen. It'll go well. And I hope well. Even the small Cambio can take this up.

That is true. You know those. Because the Cambios do. They are currently doing a lot of. Buying and selling on spreads. That's not what I was going to say. But I don't know if I'm allowed to say what I was going to say but I don't have a lot to say what I'm going to say so let me shut up you know what the cambios are at the forefront of the financial sector locally in terms of monetary adherence to policy. Imagine a small Cambio walk up and say, boy, here's a fall contract. Because we can trade U.S. legally. Legally. Yes. Yeah. And they can also, they're financial institutions,

so they can accept larger amounts. I could be wrong, but I think they can accept more than a million dollars. They can. So the registered Cambios can accept more than a million dollars. Cash. Cash. Yeah. Okay. That's a very powerful thing. But depending on the size of a Cambio itself and the level of clearance they have, then they have a certain amount of laws they can handle for a certain day and everything there. What do you mean? In terms of there's a limit? Smaller Cambria's have a limit on them of how much they can. How much foreign exchange or Jamaican dollars? You can't limit Jamaican dollars?

Probably foreign exchange. How much they can take for the day and everything there. I've thought it through and you can't say so you remember when when the law was changed to prevent people from using more than a million jamaican dollars in cash that rip that yeah it's not that long ago stop so yeah relatively recently this before 2017 because i was still at careers at the time okay and um it was it it was a problem for the business community in Jamaica right and out of that problem came a solution and a lot of cambios I believe currently accept a lot of cash from companies in order to solve in order to solve the security concerns of and the security costs of having maybe

those security companies go to there's a lot of things that is a lot of business people do a lot of direct work with cambios every day because of the cash movement and the restrictions that the government has put in or had put in at the time still in so you see out of that problem came a solution and here the fluctuating exchange rate is a problem for some people just there there are solutions guys it might mean it might mean for you I know business people like when you just spell out the solutions and if I can spell out the whole solutions I leave that for the more qualified people but it might it should mean for you a business person let's say over the last 12 months

the average exchange rate has been 132 dollars thirty two dollars Jamaican dollars for one year Stella it might mean that for the rest that a broker or investment bank or regular commercial bank can say to you okay for the next six months I'm guaranteeing you a US dollar rate of a hundred and it might be it might be high it might be like 135 but what it will be is 135 no matter what and that then allows you the chance to i understand as long as you are giving us more than let's say a hundred thousand us or ten or whatever ten thousand us a month we can guarantee a rate of xyz and how the bank makes money off that is sometimes it's going to be low and they'll make it off the spread

all times will be higher and they might not make as much but they'll still make but it is in that it's not fluctuation that the bank earns and you earn so you might pay a little bit more but you are able to plan your business ahead but you see if you're doing the business just like somebody who's not planning no strategy involved no planning involved you're just a dating or met the money this week bye tomorrow if you've always done it that way then the concept of forward planning is going to be alien to you and the idea that there is an entire industry set up to help you with this and make money this way might also be alien to and then what you'll do is you'll complain and say yo government to mash up my business and the exchange rate to mash up everything you get a lot of that the government

picks up a lot of blame for a lot of things but it's um it's it's it's it well i guess that's the government's job yeah that's going to really to pick up the blame for a lot of things because some people just kind of need you kind of need um somebody to blame and who you gonna blame yourself yeah yeah i don't blame myself for anything yeah i don't blame myself for anything but yeah uh kind of all the way back to stocks if i'm bored with that tangent um uh jam t which was the point i think i need to tell people something good about jam t you know at this point uh i can spell it out and we've spelled it up before but they're going to the qwi and i don't understand there's something I want to bring up. Jamty, we know that they're going to,

they have QWI under them, right? And we know that QWI is going to list because they've been very public about the fact that they're going to list. And QWI is an investment company that is a subsidiary that is owned by Jamty.

And Jamty is going to list that subsidiary which means that jam t is probably going to sell some shares yeah yeah yeah where are you going to sell some shares so you mean sell some qw shares so depends on the whole thing yeah yeah yeah and that's all the qw and i wonder about that and he talks about accountant about how they'll put that gain so they sell some of the shares, will they book a gain on sale off? Because it's a subsidiary, they already own it totally. So I'm sure that I really feel that they'll book some gain there.

I think you just check it out with the accountant and see how it actually works out. But QWI will be fully consolidated if it remains a subsidiary of Jamt. And what does that mean for the people who aren't financially then where does the financials of qw everything of every all the financials will be shown in jam t's reports okay so it's still be like a department department of jam t yes you won't see it any different just gross yeah i mean they might show it differently they might be deep in the numbers they'll break it out hopefully because they don't you don't always have to right something you don't want to hide it exactly imagine you don't want to see you want to see what

the rest of the company is doing separately from qw yes that's true you all know what each other arms are doing yeah jamty is interesting i can't remember if we laid this out i don't repeat too much but i mean they have a bunch of arms we definitely spoke about this now a bunch of arms have the supermarket which they don't have anymore or they have but they recognize it in a weird way so they don't count um and they have the low income housing they just finished selling housing yes they have a rental line in there where they're doing rentals and that's interesting to me because that's how we got to this point yeah yeah we saw there was a line and they were interesting to me because it grew this year sauce there was a line and it was interesting to me quite grew this year over last year but you know they did say that they they they put it into

companies they said that they're going into new properties and they have they did mention rental income at some point in the past you know yeah I think so I'm not sure you know I think I have no one said it no I think it's 25 million but the financials are here so let, look for rentals. Hold on. Rental income. What does HMS mean? It has rental income. What's the thing there?

Some other my food. My food and sons. I don't remember the name. H my food and sons. H my food and sons. That's a rental company. They said they have a company that has a rental property.

And they're requiring income from that company. I think that's under what did they buy what's the thing about from the government kiw you sure I'm not sure but they had where no they sold warehouse oh yeah that's what I was absolutely freelance so rental income from H my food answer to the real estate arm yeah I like how they lay out everything I like what a little everything I like

what I made a business open this a John Jackson company yes it is all right I yeah I like how they lay out everything yeah I really like that I like how they lay out everything I like how they make their business open is that John Jackson company yes it is all right yeah I mean shout out to John Jackson

for always being for sometimes being it's not for me to say that for always being open with at least you know what to his credit his companies that he's

always a part of financially yeah man you they show their books I like that they don't hide stuff because you

like I was saying they can hide this stuff they can consolidate their like that they don't hide stuff because you like i'm saying they can hide this stuff they can consolidate their income so they don't have to break out qwi versus supermarket versus real estate sometimes they really want to go in a company and they say nothing in the mdna yeah md is the management discussion and analysis yeah and then you look down in numbers and you can't see any separation between the business lines and yes and then you look down in numbers and you can't see any separation between the business lines and you say boy we'll find out when the audit come out yeah and even when sometimes when the audit come out nobody knows yeah funny some companies do that deliberately um

ssl vc i know that did that when they um they decided to to group their income by industry class oh yeah but, what the hell is that? But I think it's deliberate to hide it. So I know like a VC company might want to hide income especially if some of your sub-companies are in really competitive industries and you don't want the competitors to know. So I can understand the reason behind doing that.

Yeah, I'm playing devil's advocate. It's a list of companies. I want everything. You decide to be public so be public yeah and and people should pay attention to that's all i think because you can see a lot blue power is a great example blue power um blue power had all of their books showing the lumber they break out the lumber in their books oh yeah yeah yeah and I know we know blue porcelain they're going to list the lumber same thing like jam T

which brings me to the point that I know we mentioned it before in a previous episode but it's weird to me how Mayberry the analysts I say I've given them a sec yeah keeping up the pressure on and analysts let's look let me not guess I'm looking at their data their data currently is current as of Thursday August 15th so they have updated it for the last day but the whole people things came out on the Friday so that's cool but at this point there's August 15 they already know about jam T and QWI kind of public and they also know about blue power and the lombard division being spun off into its own company jam t's projection from mayberry's

analysts is that they expect it to make a loss in the last quarter that i have left because they have started a pe of 13.95 times currently guys if you don't know what PE means, go on evermickel.com and there are the articles there to help you. And they're projecting a 12-month PE, which means there's just one more quarter left, of 18. Oh, sorry, I have that number.

Of 20.2. So they're expecting something to go wrong. Are you expecting the price to go up or the EPIS to go up? No, but it's always at this price. It's always at the current price. So yeah, so they earnings pressure has to go down which is weird to me right

which is weird to me I can't okay so do you know something that I don't know yeah they're projecting something and basically

that I can't see that paired with the directors selling all the time really bother me it's really bothering me it's really really really bothering me but you know no risk no reward

and on the flip side sometimes you have to disagree with yeah the market well not market flip side sometimes you have to disagree with yeah the market but not market with the industry you can't disagree the market if anything the market disagree with you the market is never wrong yeah and so he he disagrees management he disagree with the directors or maybe he just don't know why i'm selling on the flip side we we have BluePo. BluePo.

And Bepo is, wow, at $8.88, the PE is 36.02%. That's strong, you know. That's a heavy PE. And the Mayberry analysts expect it to fall to 34.84 by the end of the financial year that means they have a good vote on Lomba then barely because I would think that

Lomba stripping would push it it fell from 36 to 34 yeah so I was thinking of it as Dupont or Norma is a 6 star and maybe this PE is what are six stars much less you can have a bit of math

about 75% of that hold on 68 this calculation I'm doing isn't what you want you want to know the PE at what price at six stars 24 yeah so PE is that 24 junior market average about 20 isn't what you want you want to know what the p e price at six dollars yeah 24. yeah so p is that 24 junior market average about 20. so they're saying junior market average is 20 or so yeah i haven't checked in a while all right i don't care yeah i know i know we're

supposed to care yeah i don't care they usually yeah yeah it's so I mean you know what I know I get flames for saying I don't care let me be clear what I mean by that let me be responsible I look on a company based on its fundamentals and I do compare it to market averages or similar industries so and I have a range in my mind because i've arranged it i know that the industry tends to like it yeah so 20 for junior market company just like you i think okay they'll accept that they'll accept 20 and i do the market company truth is these days they look like they'll accept 20 and uh main market yeah 20 was too high when it was a junior market four years ago no main market

companies hit 20 and people are that's fine it's a main market company you know i wonder if things have changed at lasca now over the last few few months as i switched from from june it said nothing changed other than which side the the side they listed on but you know if yeah some some difference is happening there yeah well that's what i mean as i don't care but yeah you're saying it have a p at 20. it says that p or 20 at six and it was started here around six or something it was around six yeah it was six up to a wedding yeah so they're saying with the long with the lumber doing this thing it might just be it's going to be less than inflated price from the issue of the shares of that day yeah i how i put it was really this like two two two dollars of the pe 36 36 to 24 sorry what you just said it was two dollars after p the dividend in specie happened already um the x date was the date for it so i was it was

did they speak about it you know i know about it and there's no other x my egm and yeah but they they listed the amount that they're listing in terms of and they said dividend in speech and all that i don't think that's i don't know i also don't know guys but they're not yeah the day passed yeah where they mentioned that if you have the company as at that date that's the date that they would be a piece of the company and that's called the X yes yeah so that's an explanation for what that is guys he's a state or record meet no you gonna look it up I finish what you saying and I'll give people the proper right now

yeah so when I think was inflated because of that it went from four or4 or $6 up to $14 and coming right back down now because the date is gone. The value in holding the shares, if the value for you was holding for the piece of the company, then the value is now gone. So I bought it at $14 just so I can get a piece of the company. There's no reason for a lot of people who have my like who have my same mindset i'm buying it to own the company anymore at this

high price or it's not worth it to have it at that price so the price usually falls after that if it falls afterwards yeah so you're saying on so here's something controversial wait you're talking about the x date or record date once i clear it whatever it is okay so not the date that the dividend is paid not the normal okay that's the day where if i have it then i then i have rights to whatever it is coming okay yeah so that day that is gone so it's falling it's falling and they're saying the pe is at today's date at 36 and in the future he's going to be worth 34 at this price oh yes it's weird it's so they're saying the valley in the company will go up not by much usually overvalued all right but anything about this at 34 which which which dream I think company trades at its book value because it's currently on the books

at book value well that brings me back to the question of how are they going to recognize profit no way all right the initial sale of those shares might be profit yes okay yeah but then the continued recognition depends on how much they own because say like if it's about 50 percent and then subsidiary fully consolidated I don't think I can give up the way I think there a whole 20 percent of the company I think I can hold 80 percent of the company same yeah why would they not give in a word you know you know how that usually goes give away 20 percent and go yeah whatever it is no less than 20 percent which is the same rule which is the root of that same rule if they sell sell down to 80 percent holding then they

consolidate in that just like mje and the full numbers are shown within depot so if anything loma makes profit people makes more profit so all right so as long as profit increases then people will see the same movement in dollar wise yeah you know what they're definitely going to that and because that's unfair i think about this the operations of the company remain the same of course that you know they do that there's a line in the comprehensive income where is where is um profit not attributable to owners at a company because they only own 80 percent percent but then what it is that can't tell you the full results right so if you keep it in the books you get the result you get in anyway definitely all right plus i get the money that you're going to give me for 20 percent so they're definitely going to keep it on the books

so you see that's a difference so i'm ready to say that they're definitely going to keep it on the books. So you see, that's the difference. So I'm ready to say that they're definitely going to keep it on the books. And if I'm wrong, I'm wrong. But I fully thought this. I'm not going to hide it and say,

it might not happen. I fully believe this is going to happen. I'm at a point where I feel I'm uncertain. I don't get why we're so funny and so billions of you.

Yeah, I know. But I'm not sure why we have such a fear of assuming things and saying that it's my assumption it's perfectly fine i don't want to be wrong nobody wants to be wrong i want to be right it's the only way to be right the better you do but i don't get it to clear up that thing that you mentioned before record date or the x dividend data those things aren't the same the record date is the date at which come i i wrote as an

observer so i should know it it's a date on which um shareholders you have to be on record as a shareholder to benefit from a dividend or a payout or whatever um it's a lot that you can send and so the x date is a because we have in jamaica plus two, yeah. So the X date should be like two days before. That I might be wrong about. At this point, I don't care. Guys, you should look it up. The day and two more days. So it's two days before.

Yeah. Look on everyminkle.com. What I have there must be right. Yeah. It must be right. If I put it there, it's fine. I might get it wrong on the podcast. But yeah, this is right.

Yeah. Okay. So we're getting a wrap up sign from Sir Bam of Bam Productions I think we're giving a nice long rambling

one guys it's a different style from what we used to let me know what you like I have been Randy and and Danai finally with a new name

so H Danai on Twitter yeah I really shaked down with the other Danai but that's too long but yeah and this has been you know

earning season another episode glad you like it guys keep the feedback coming alright guys Thank you.