Earnings Season - Earnings Season: Episode 7 - Privilege and Profit

Episode Date: September 25, 2019

This week Randy (@RTRowe) & Danhai (@HDanhai) discuss some the the recent happenings in the market including $JMMB.ja's Right's Issue, $Proven.ja's Sale of 25% of Access Financial ($AFS.ja), QWI, AlignVest and its implications, $JETCON.ja's best steps, the Access Financial Buyout Scenario, Sagicor Select Funds and the impact of its members along with its suitability as a long term 😲 investment option and a whole host of other things including (of course) Privilege. Detail list and episode shoutout's below: JMMB Public Offer of Shares - http://bit.ly/2nbZ9Bw Access Financial Services Limited (AFS) Announces Acquisition of Embassy Loans Inc. - http://bit.ly/2leYZZK Pressure on Jetcon’s sales easing via ICInsider - http://bit.ly/2mJvzTX I Don't Save and You Shouldn't Either - http://bit.ly/2yfjjzO Earnings Beat/Earnings Surprise - http://bit.ly/2ldmpP6 EveryMickle Mailing List - http://bit.ly/2l9FUrH Proven's public sale of 25% of Access Financial's ownership and the implications. - http://bit.ly/2mHHH7Q $VMIL.ja's Barbados Buy-in - http://bit.ly/2nk8kA5 $JBG.ja's US Vertical - http://bit.ly/2nj8ZSj Shoutouts: @NNBoogie @5Solae @GuruInTraining_ @WeAreProven @JMMB @JMMBGroup @ChrisfromProven @BaritaLimited @DrNigelClarkeJa @miaamormottley @kfcjamaica ★ Support this podcast ★

All right. Hey, hi guys. Welcome to this week's episode of Earnings Season. I am Randy at RTRO. And over there being silent this week is actually... And I'm Danai, H. Danai. I'm not trying to interrupt you again, sir. No, that's fine.

That's fine. That's fine. I'll call you sir if you think that I'm your boss. Can't forget. Where do I begin? It's been a while Since I've heard from us I guess I haven't heard from us

Since that Ryan episode We're not very current right? Oh God Yeah The one time we give them a gap Is like one of the hottest weeks In a long time And the people that watched

The hidden episode before Yeah Messaged me Oh Vic saying This is the pilot tonight Where's the new episode? I get a whole heap of that I get a's the new episode i get a holy pot i get a holy pot i get a holy pot um no but i hear this already you mean i hear this already i hear this right what you mean no man so so so so you know or somebody else tell

me say yeah it really is hard to record every week isn't it but no no it's not thanks to bam productions bam studio big upAM in the background as always, giving us a good podcast quality. But yeah, people really, really, some people liked it. To the people who didn't hear it first, they really liked it. They liked, as I said, they liked hearing you talk

because people give me a hell of a lot of time so you don't talk. So geez, I guess I think I drawn you out. So let me make sure that you get ample opportunity to speak. It's just an AI this week. There's no guests. We didn't need any guests because i think we have good enough content yeah and a holy partner in the market so what's been up that night it's been two weeks

anything exciting in the gap jmmb everybody doing something wow so and then boogie boogie doing the live tweets for the jmmb yeah you know what let me cut you there sorry let me cut you there because i've never said i need to tell her thank you i think i've told her thank you before let me let me audibly say thank you so she can type this on twitter right now big up at nn boogie who is i i enjoy following her tweets because she is a regular person she's nothing that's all she's a regular woman who do her job um real estate is her thing and she try out the stocks thing and it has been working for her as she tries it out and she's trying to approach it sensibly but she's also i guess a fan of the podcast because she live tweets episodes

as she listens to them so big up and then boogie yeah man so yeah she was live through in the agm jayman bhm so what's going on this week. A lot of money on the table. Yeah. What happened at the AGM? Something important happened at the AGM. Oh yeah man. They spoke about their share offer. The public offer of the shares that they're pushing. 325 million shares I think. They're pushing for the public to acquire upsize, raise some money and do some deals that they want to do the um i remember seeing boogie's twitter she was saying something about they're not she said and i'm assuming she's saying it because it was said at the at the thing at the age m she said

that there is it's not a regular rights issue so you don't have to worry about being watered down you have to worry about being diluted now you're diluted yeah I don't understand what that meant I meant to ask whether I never bothered Twitter has become

such a rough place for me these days I never bothered if anything something like this makes you more likely to be diluted yeah

because everybody can go for it rights issues generally it's just the shareholders they can take a piece and they take a piece in keep percentage of the issue is the percentage that they have in the company already.

So if everybody takes up, there's no dilution. Yeah. It's a good example of this is Barita. Barita is in a rise issue. But to get those shares, you really have to own Barita shares already. You have to have been a shareholder by a certain date. Yeah. To be fair, J&B has...

You beg the what left. Has J&B put out anything on what this actual offer is? Yeah, man. door left has you maybe put out anything on what this actual offer is yeah man I don't know they put so much I don't think that's was the amount of money they didn't tell surprise I think but it's a regular public it's a public offer so it's not it's not that oh I'm within a piece of company keeping the piece I have before so everybody in the market can fight for that one is the piece of the company so Wow the competition for that well you know of the company. So, wow. A lot of competition for that.

Well, you know, let's hold off because maybe, maybe when we see the circle, the offer circle, it has terms in it.

Maybe it has terms like, generally, I expect that shareholders will get a piece. I think they did say that, that shareholders will be getting some of our preference,

something like that. So, are you, you're sure, sure, sure that they've said that they're doing a completely public rights issue? Yeah, man. I think somebody said this is not a rights issue.

It's a public offer for shares. And I'm sure shareholders are going to get some piece where they can say, oh, you can buy in at this price or you have a pool for yourself, something like that. But the public can apply for the shares it's not going to be just jmb it's not a regular regular rights issue well i was looking just now while you're speaking on my phone see if i could find some information it's i could give you guys fresh information i wanted to be clear on what i said but that's the impression i have also so it it's but then what why that stood out to me was that i knew in the conversation

well based on what she said and again this is just my assumption she said don't don't um worry it's not going to be it's not going to be uh uh an excess it's not going to be a an excess she said you don't want to be diluted and i saw that and it made my ears perk up because i know a rights issue dilutes yeah by so how the only way it could not be a dilution is if you're going to be assigned shares no matter what or if you are if it's a completely different company it's like a different vehicle you think it could be a different vehicle i don't think so i think it's jmb shares being pushed and people can go pick it up additional public offer something like that yeah and they shall public offer yeah which which which is popular these days a lot of people are asking for money why

do companies do it i know people dm me those things all the time why do companies do it yeah why do companies ask for more money they don't want more money they want money to do something and they'd rather use your money than theirs yeah why would they use theirs often works out for them it works out for you when it works out for them so no problem with that yeah in this case i believe they're using it to buy the one-fifth of the the oh this is new surgical financial yeah yeah one-fifth or as i said which was public this wasn't known before so they're going for exactly 22 percent yeah which means the sagicor group of companies across the caribbean are going to become associate companies of jmnb how far have we come as a country oh my god and there's more in i think there's there's definitely more on the line for sagicor because apparently sagicor has some

insurance license in the states sagicor is that yeah sagicore has an office if you remember when that little um when they when x1 was was was reorganized in a certain way uh and some people moved around when the leadership change happened one of the guys was he left and then i don't know if he left or he was brought back or whatever but he ended up in florida at a sagicore brand so he still works with sagicore financial but in florida i think they want to widen the footprint more than just where they are no i think they i think sagicore's agm i think where they spoke about how much the foot was it the agm that they spoke about how much insurance licenses they have to up the license that operate is more than just one state it's across the whole us so i think they're

trying to just push as an enter the us proper as an insurance i think so wow so i will clarify that though so yeah yeah let's look into that but i'm sure somebody's dming me right now as i listen to this saying what daniel's talk and i doesn't know what he's talking about he said that i usually know him talking about that's a good point that's an interesting point the u.s market is a very attractive place if you can get there because we are so because of the multiples and the u.s earning yes you can you can earn lightly in america so far usually i mean i don't know the footprint would be in america but the footprint usually for a company in America you can go off smaller margins and it means more to you in Jamaica because of what the US dollar is out here yeah yeah yeah I was thinking US is I always say this

for businesses the US is so big you can the cross-section of people you can push your product to is so large like you can hit a small part of the market of a market and your banking just because so much you burn us if it was push out everybody my smack that totally different kind of market though is it that's that's the funny thing is such a totally different kind of market and that that works out to all our favors another company has done that and if you remember I think either late last year earlier this year access financial bought a company in florida i don't think a lot of people remember that they made a huge bond they call it a global bond so i guess everybody all over the

world got a little piece of it and they used part of the proceeds from that and bought a small loans company in florida again nice company to have um and i think that's part of them broadening their footprint and trying to ensure that they have some continuity of income continue to have someone's fancy just make sure them keep making money in the future especially with that regulation coming to box them with especially with what regulations coming to box them for microcredit ah but isn't that already in it's already in i'm asking they got sharked um i don't think they're gonna get sharked i think i think they're i mean i believe they're they're leading the industry so they should be definitely industry and i said that some 200 plus microcredit institution in jamaica so everybody

when they start acquiring is going to be so good for them you think they're going to acquire though because they've been quite they've been quietly acquiring you know they have been if you check their books over the years they've been quietly acquiring, you know? They have been, if you check their books over the years, they've been quietly acquiring small loans companies, which is smart. I think it's best at this point because they're doing the best in the industry right now. So when the small man, see, his rate gets chopped down, then if access take it up, then it's fine.

If the small man can't make as much money as he can, as he's making now, and he's still a small player, then he can get forced out of the market at a certain level. So if Axis take up those loan books then it would be good

for them. That's true. Also, it's a thin margin high risk business. Alright, bad debt is a thing you always have to think about

when you're doing those loans. So if somebody else wants to take on this headache for me and I'm going to pay you to do it, of course. It only makes sense for me

for Axis to start acquiring like that. Yeah, yeah, yeah. You know who else I think should start doing that? Who hasn't? I've been begging for them to do it. Check yeah it only makes sense for me to access to start acquiring like that yeah yeah yeah yeah you know who else i think should say that who hasn't i've been begging for them to be for years i'm doing it jetcon oh yeah she's your wife trust me you know i know you've been begging i mean i mean i love jetcon i've been trumpeting jetcon from before the ipo big up big up big up john jackson the chairman yeah i mean but they're big up john jackson the chairman

a big object on himself lots of people have made a lot of money off jetcon over the years but no funny enough no jetcon is yeah they're going through problems right now yeah they're going through a rough rough time i think um i saw an article on one of those online sites asking if it's time for them to start showing unit sales because companies in jamaica tend not to do that i'd love to see that to be honest yeah but i don't i try to remember it was icy insider which is always funny it's always funny when icy insider says things about some companies to me yeah it's always very funny um but yeah jetcon i think would have that because you think about the jetcon in its entirety as huge

a company as it is because it's not doing badly right i always try to get people to understand the difference between when we talk about whether or not a company is good or whether or not a company's share price is good yeah so jetcon the company is doing fine yeah still selling cars still doing okay they're not in any trouble would i buy their shares no no no no i don't that's another i love the drops of more yeah man i see i mean at 2010 cents i think they have a pe of 34 yeah yeah that's high no yeah i mean they could they could chop that into which means jetcon can easily be but it fell below two dollars out of there it fell below two dollars recently and some people grabbed that so shout

out to the people who bought it they're kind of body bottle two dollars at 210 now they've already in the green but it looks like it's it's still overpriced yeah yeah so if you go off a pe business yeah um which i believe the market does same yeah the market itself of course doesn't necessarily agree with that yeah yeah don't agree but you do it same way yeah yeah isn't that funny it's like it's like us i remember saying that well people who listen to the last episode would have heard me saying something weeks ago that i was told which at this point in my life i believe completely which is that men like to learn while pretending that they already know the thing that yeah i see it in myself i see it all over everybody like when the ego starts going yeah you can't i can't

come to you like i don't know i mean if you want to let me know explain everything to me right now why i don't i don't get it i try i try always to edit how i put forward information to people with with um them in mind to the best method of getting the information out to them. So it's easier, I think. For some reason, women gravitate more towards the message. I understand what I'm doing. And what I've gotten a lot of, especially in terms of positive responses, there are things that I seem to be being stubborn on or being hard with.

And it's dumb. Sometimes people say, yeah, why not just tell? Why not just tell? But anybody who has gone through the process knows why I don't actually tell because when i force you to go through the process of finding out you will never ever need to do it again big up my parents for that um but it's it's it's just you know it started as an og nerd i used to read a lot still read a whole heap and i used to hear you read and you say oh mommy or daddy um what does serendipity mean and they go oh i don't know what serendipity mean go on and get the um well

listen to me i don't know what does serendipity mean i go i don't know i'm asking you and they go okay well how do you find out and i used to let me go for the dictionary got to a point where i started just to read with the dictionary beside me they kind of just kind of stick with it and after a while you just don't ask them anymore um and so you learn to do it and that's exactly what i try to bring to people not trying to have people go to the dictionary but that i want you know teach a man to fish i want i want people to learn on their own because i want the best thing i'd have for people is to not need me or not need anybody and that's what i that's what i like in systems and in companies when a company sets

you up or a system sets you up in such a way that you don't need them that's the best kind of company and the same way in teaching if if i teach people you know i'm saying yo what's good in the market and i say oh access jmb then that's not what i think is good in the market people all right that's just an example but but if people ask that i tell them access jmmb and i'm going to make money off access and jmmb yeah man i'm gonna say right i'm gonna say two things boy right they know i'm thinking them tell me to pick on ray ray and then they're going to they need another pick they're going to come back and say what else is good and they'll always need to keep coming back to me that's great if you want to keep people hanging on to you but if you want people to learn

and push out on their own you have to teach them that's what i do of course the bad side is when you do that people don't see it that way they get vexed vexed yeah i've had mixed experiences uh people message me and say yo what's what is stock doing whatever whatever they don't ask me that actually they ask me to tell them what stock to buy it's always the same yeah man walk out of the market now what kind of pick that i know yeah you said you said you don't want to tell them that they're getting vexed. You're mean. You better tell your friend them. Fasio, I deny that to them.

They know the thing to you. You say, what's one of them saying to me? But you ask them if I pick him. Can't do nothing. Yeah. Big up DJ Leng D on Twitter. Leng. DJ Leng?

DJ Leng D. Yeah man. Good deal to him. He's like I know that. I'll check my DMs. He was at your grow. He was at one of your grow events. Ah! Yes, yes, yes, yes. at the back yes yeah big up big up big up big one he just started investing i think i know he just started paying attention to the stock market in a heavily and he's never asked

me then i we start for buy but he asked about a company or i'll see a way think about whatever company and he goes in he goes by, researches whatever, gets his questions. And he comes back and asks questions and see if he can answer them. But he's not asking, yo, I should buy this company. He genuinely wants to be informed and wants to know how he can start doing this for himself. Yeah, I rate people like that. Yeah, man. Yeah, big him up for that.

I rate people like that. I mean, that's why Yonah started talking about this so much because literally he didn't ask me for any pics. He asked me about things. And you know, funny enough, I have never lost that. To this day, people ask me all the time, like, why do you answer the DMs? I get DMed heavily. Why do you answer the DMs?

One, I like to be nice to people. I figure if I was DMing somebody, I'd want them to at least respond. Yep. But then there are people, anybody who messages me one way or talks to me and what they want to do is to learn know about something you get me and i test them all the time same way just like i used to test you i test them all the time i say yo read this and i send them a link all right thank you i usually end there yeah or or what happened is that i think they think that they've established some rapport there and so the next time they come back and they go so what do you

think about this qwi thing because they think that maybe my mind changed from trying not to go to jail for being an advisor or in the one percent of cases they come back and they say well what has happened the ideal case for me is i say i usually have an article i send them i don't save and you shouldn't either check the blog out every michael.com i talk about it I said, pay attention to the links in there. Because the links link to articles like, which broker should you pick? How you know which stock to buy? It links to things that are natural questions. So if those people actually read it, they would see it and they'd click.

Because you want to know which stock to buy? How you know which stock to pick? There's a link in there, you click it and you read it. When people do that, and then they go and they research and research it's different you come to me i say yo because here's the thing that really people though i have a million dollars i might think say oh more but not like jamming being surgical waiting waiting i can't i can't tell you that also people ask that all the time i can't take it on third i to answer that question properly i actually have to do my research

so oftentimes when people ask me them they'll realize when i'm answering them i am taking my phone up and i'm going through things to make sure and i'm confirming i don't think people realize this is happening take time for me and then imagine i get asked 10 times a day exactly and but you have the one or two people who go read it come back and buy them thing and say all right listen i like jmmb but i like that they're doing a lot to grow the thing but i don't know if it makes sense before this before this so why you say that well you know because of the rights which is yo that question why i realize i ask it a lot okay trust me and i realize how people react to it is very telling of the kind of people there are people who i say why to them and they get

properly offended yeah man because as far as they're concerned why they don't have an answer so they start but that's why i'm gonna come to you like i try to show me i'm not trying to show you but i'm saying why because i'm trying to spur A specific kind of conversation That I want you to go to Sometimes I have to answer Sometimes I have to answer Sometimes I know But telling you is dangerous People don't know that too People don't know

Telling them is dangerous Because guess what I tell you Yeah man JMMB good Yeah man JMMB good And you buy JMMB forever

Yeah and I forget That I told you JMMB was good And then there are people who To them it's a milestone event So they remember That we had this conversation Yo you remember The stuff I'm telling you about man What I'm going to tell you about, man?

What's going on for them? What's that? You tell me for buy, access, and GMM, B&T. When? I really don't remember. Because that's a dangerous part. If I tell you when to buy, I also have to tell you when to sell. Which, if you think about it, is a root of what I used to complain about with the industry for years.

That they tell people what's good and what's bad bad but they don't put any time periods on it big up simon who said that his team now whenever they put out anything there's always a timeline on it oh yeah it's either one year or a year or three to five years right that's this yeah i read that i read that that is where the industry needs to get to because i don't i won't go into my long speech about the industry and the role of analysts in the industry as a lifeblood I'll just say this in America when they have this thing called earnings beat and it's when a company comes out and they release their earnings and they beat analyst expectations not what they did last year not what they did last quarter analyst expectation is the thing that they measure against which means that Every single quarter There's at least one

Analyst in America Who is saying Oh yeah man You gave me this Amount of money And I'm like It's alright Exactly

Carib Cement is I expect them to make 20% more This quarter Than they did last quarter With the cash position Blah blah blah Yada yada yada

Right And if Carib Cement comes out And Carib Cement goes 21% Earnings beat Because not only have they Beaten what was expected Of them They've got They've beaten it They've gone way ahead yada, yada, right? And then if CaribSemant comes out and CaribSemant goes 21%, earnings beat. Because not only have they beaten what was expected of them, they've beaten it. They've gone way ahead.

Or sometimes you have the opposite, which is because you miss the expectation, again, of the market, of the analysts in the market. Not your performance last year. In Jamaica, we measure based on last year performance. Why?

Because nobody wants to say, I think that they will do XYZ because god forbid i get it wrong then you might become a better analyst and we're not knocking people who get your expectation that's fine like there's no it's cool to do that it's cool to measure business of course be more vocal about what they think will happen for the company but yeah i just want analysts to be more realistic but i understand also why they can't do it because if you start an analyst overseas,

even my overseas trading that I've done, you have to understand and get deep into the company and understand the same things I talk about. Same thing I talk about at Grow. I have a Grow coming up. If you're hearing this today, Wednesday, there's a Grow coming up on Friday. Go to evermickel.com and sign up for the Grow event.

Sign up for the mailing list. And when and sign up for the Grow event. Sign up for the mailing list. And when you sign up for the mailing list, you'll be sent an email for the Grow list. So if you're a newbie, if you're just coming to the market, if you want to understand stocks, you want to have an idea of how I do it, Grow event is this Saturday, I'm saying August, it's not August, Saturday, September 28th.

I think at this point, there's still a couple of seats left. I don't know if many seats left, maybe 15 if so much. I haven't checked it all day, but yeah, there's 15 seats left. And there's also streaming. So you don't have to come. If you don't have the time, if you don't want to come, if you want to stay on the comfort of your yard, there's streaming. So you can look that up.

So that was an ad for the Grow event from EveryMickle. Is EveryMickle paying for that? You know what? EveryMickle is going to pay for that because earning season need to make some money uh if you guys have for ad inquiries email randy at every mickle.com but yeah uh outside all of that i am happy when people show that they're doing the research and understand that i am almost never trying to say to somebody who messages me i'm never trying to diss them i'm never trying to show them up but what i'm trying to do is to see if you are worth taking the heavy time out that it takes to teach you something to have you understand it because i could just tell you the worst thing i can do is just tell you a

pick i said that to a virgin of mine already see it when frustrated i was going on and i say yo you're not taking it on. I get that it's bothersome for you and I know that you're impatient, you just want to hear it, but here's what,

I'm going to start telling you things that I think are good. But the downside of that is sometimes I don't remember to tell you to sell it. I can't really give advice.

I can't charge for it. I'm not an advisor. Exactly. Yeah. The people that you mentioned a couple episodes ago, the people who bought

JSC at $40. Because a couple of them messaged me. They had them buy a 30 odd. Somebody has messaged me and said they bought near the peak. In the high 30s. Father, it's their first time going in. Now, imagine somebody like that hearing me say that JSC is a good company. Good company.

Which it is. Which it's growing. It really is. The stock price isn't necessarily the company. Yeah, exactly. The stock price isn't necessarily the company yeah the stock price is the market's perception of the company or somebody being okay with buying at a higher price than what everybody else is being is okay with prices fall so if we say a company is a good company doesn't mean hey go let's buy now oh I mean, I agree with you, Dana. It's literally, we shouldn't make the mistake

of thinking that the stock price or the share price is a company's health because it isn't. A company can be very healthy, but its stock price is falling because maybe it was overvalued at one point. Or vice versa. Stock price can be flying up and people are just going off something else.

So don't confuse the stock price with the company and don't confuse asking if a company is good with a company being actually good people maybe if you listen to this understand that what i expect is that you're asking me do i think that this is a good company to buy into and then it's not just that because i can't answer that either it's no the real question is do i think that it's a good company to buy into to match my goals over the time period that they exist which no i mean i need to know your goals i need to know your time i need to people who come to grow have heard me go on and on about this then i know it i need it too so i mean if you listen to this you don't understand come to grow or understand that i'm not trying to diss anybody when i'm talking but i'm trying to do the best thing i'm trying to

teach you to fish not not fish you know sorry i don't sound too privileged i couldn't i couldn't i couldn't we got we got about 30 minutes so i i held it as long as i could oh my god you don't say that licked me hot first of all i've never been called privileged from Dubai before. Homeboy picked up his cell phone in Dubai and called me privileged. I don't understand what he's saying. I know we need to be context because I tell people all the time too. And thirdly, I should say, second or third, whatever we're on,

I don't know that he was talking about me because I wasn't talking about me. But let's be serious. A lot of people say hashtag the finance thing or the people he was talking about me because I wasn't talking about me. But let's be serious. A lot of people say hashtag the finance thing or the people on Twitter talking about me. They usually just mean me. I don't know what to say to privilege. For the very first time in years, somebody is bringing something to the people

and I'm doing something that I don't need to do. Something that I don't, it don't really help me. I don't need to do it. I would much rather keep my mouth shut i make my money quietly like all the people have made money before me and i'm making money with me now are doing quietly the ones are actually making money they don't really talk it's few and far between you find the people who are really pushing it even ran big up five

as mandatory every week even ran hasn't you can't take it on it take doing it no i realize how much it takes just to push people people expectations of you are huge and here i am writing an observer thing every week making sure to take the language of the finance world and put it into i don't know it's like i don't think people understand that i don't think people understand that the biggest thing that i do which is also the thing that causes me the most trouble is the fact i don't think people understand that the biggest thing that I do which is also the thing that causes me the most trouble is the fact that I don't speak like an industry professional I don't speak like an accountant sorry

I don't speak like an accountant speaking a language to other people instead of speaking the accepted violence language the jargon and the jargon gets a lot of respect very quickly yeah man trust me i know people rich after not rich but they're reputable off jargon alone completely completely um and so i just have a whole respect for anybody who is trying to bring that to the people and i mean i don't sound like a

bitch too much i feel like a bitch too much sometimes but at the end of the day it's one person me or in this case not even me alone because there are a lot more people right there's there's simon there's david yeah there's just ran there's people who at any given time is one person who has to deal with a lot of people hitting them plus other entire lives so yeah that's all i just said let's not have the people who are trying to get other people better feel bad yeah yeah let's encourage what is a good thing because the option has always been there for them to remain silent and keep the money and if you look on those lists those top 10 lists you see a lot of names that is the first you're hearing them but they have been there for a long time

which means you're not hearing from them they're not dissing anybody who make their money on any top 10 list but we have to understand that it means that if people are if people are laughing okay okay okay okay you got me we got me we got the lab we're editing the whole of that by the way we are editing the whole of that anyway people are on top of this have made money and they're not all of them balling out so they need to borrow some of them talk some of them show it some of them do their part the junior market has a whole heap to say thanks to yeah man to um a gentleman from grace he must know his name he's one of the

people he's one of you say artistry is a father he called himself the father of the junior market well this guy from the private sector is who wrote the paper and suggested it oh yeah oh yeah i know it was don webby yeah sir webby sir we have done a lot to grow jamaica i've never met him but i'm happy for what he helped push forward don webby again big up to my pocket yeah but then watch this don webby look at don webby's pocket oh yeah he he's rightfully rightfully compensated he owns a good amount of grace as he should because he's put a lot of his life into building that how much people great has grace help the companies on the market know that used to be divisions in grace yeah yo yeah yeah some of them great some of

them like t-tech trucking keep going on you know others not so great like a sorry which which is that's a weep it's been off why it's sorry yeah that's a weepy case I don't even know what's happening it's all the most recent news and the first thing you pointed out is that the gross profit is basically flat and most of the revenues are gone. No, what gross profit? They don't have any profits. Oh, you mean the gross profit? Gross profit, yeah man. Oh, yeah. Oh, okay. Sorry, sorry. You said profit and I'm frightened because they don't make profit. They had 55 million less revenue and they made this gross profit. Gross profit was the same as

last year. I think that's an improvement. Well, obviously mathematically that's an improvement. it's an improvement yeah but it's a questionable improvement because it says what was happening what was happening before what's happening now yeah 55 million is their companies whose revenues on the stock market in one quarter isn't 55 million and they lost 55 million in terms of revenue and yet the gross margin didn't move that's crazy crazy and they said they're going back to selling pigs because apparently they stopped they stopped not selling buying pigs buying pigs yeah but i think two quarters ago they told us that they couldn't get people to sell them because people weren't selling them pigs and i wondered why when i read

that and it was weird i know you know and then and we have an idea and people send me messages people send me all kind of messages it It's very, it's weird hearing what's happening underground. It's interesting hearing what's happening underground or what people say because anybody can say anything, right? I don't know these people myself.

But, but you know, yeah, people, people talk. Exactly. A lot of people are informed about companies

in a small way just because they more pass the place every day. Not a lot. Yeah, exactly. And those people are the people that a lot of people discount.

You learn more talking to a security guard that that sit on the parking lot and you learn sometimes reading the company's numbers not to say you shouldn't read the company's numbers and to be clear telling people not to read the company's numbers and if anything you definitely have to read the company's numbers to find a correlation between real life and the numbers that's what i think i'm good at that's what i've learned earn a lot of money off thing and that's what i still do and that's what i do for'm good at. That's what I've earned a lot of money off doing. And that's what I still do. And that's what I do for near free. Well, for free, online, in the newspaper.

All right, but anyway, people, I think that's enough of me bawling and moaning. Nobody wants to hear me, bitch, especially not me. What's good in the market. Yeah, let's talk about what's good in the market. Let's reward the people for all the crap that they've heard. Acquisitions. Okay, yeah, no, let's talk about the thing

that's very popular right now because people want to hear about it the um access financials sale of sorry proven financials sale it's proven financials proven proven investments i believe yeah the proven investment proven investments yeah you're just giving wrong information i don't really say you see that you can't listen like Proven is a group. Investments, I believe. Yeah, the Proven Investment Company. Proven Investments. Yeah. You're just giving wrong information. I don't understand. You see that? You can't listen to that.

He doesn't even know what he's talking about. He doesn't. Proven Financial. What is that? It's a new company, yeah? Yeah. Proven Financial Group. That company run by Chris Williams.

Notorious among young people. Because, like we say, Chris Williams, he's one of those people Ryan mentioned in his episode how he saw bunting you know you recognize that somebody who had as a young person somebody my age and I don't think you can see somebody who has moved forward he's like is that all I want people you know you see you see somebody moving and you see Chris Williams you know as somebody as young who I mean there's no there's no there's no denying what he's built. Even just with the sale. Even just with the sale of those access shares. They bought those access shares at a little over a billion.

You paid $9 per share for them or so? $1. Oh, shout out. Okay, cool. Yeah, they spent $1.12 billion to buy them. Nine years or so. And they got that. And now they're selling. Same thing. We were talking about right with round you buy it and he said half of it for no as much as a

quarter but you're selling so much that you literally bring in liquidity to this company think about it they're bringing more liquidity bringing more liquidity than a junior market company hands because a junior market company yes has 20 percent and the reality is a lot of that 20 is still held up right yeah between closer people blah blah blah no 25 just hitting them over i mean a lot of them are the pensions we're buying obviously the banks went but you have some rich people just buy yep people have money that can just say i want you know i want a piece of that wow rich people who just buy. You have people who have money that can just say, I want, you know, long I want a piece of that. Wow. You have people who are just going to buy and they're putting 25% of that straight to the market.

And if the offer is strong enough, they say they'll upsize. Yeah. For years, I hear about iron balling from Axis. People want to own Axis. People have owned it. Liquidity money. Kill them.

It's hard to get shares. Yeah. Really, really hard to get shares. QWI, that's a double one. a qw i owns a hundred thousand i think a hundred thousand shares in access and select phones and select ones that's funny you mentioned those two so that'd be access so you don't hear this funny thing i think about select funds right proven is well before we get there i've got the last piece in the puzzle so jmnb so jm is going for 22 percent of we have a good here sagicore it's such a long web so sagicore

group the regional group there's a buyout offer happening in canada with allah invest right jm and bc they're going for 22 percent so they've just made that public note that they're going for 22 percent of ally invest yeah they're paying for this or paying for part of this at least with the access shares that are being sold no no no no no no no no no no jm maybe with the right the right issue like thing they're doing yeah so we mentioned that at the top did we mention that at the top or did you mention before we started recording i think we mentioned at the top yeah look at me get myself in trouble anyway so yes guys we do talk about things before we start recording so jmb is paying for that with a rights issue or paying for part of it or whatever with the rights issue um proven that this is i think i guess some i've only heard a few people say but i think i buy

no more selling us you know it's pretty obvious or maybe they don't so yes well no proven pretty much has to buy the extra shares because if JMNB does an issue it's going to dilute them as we mentioned earlier if we were if that's how it comes out I haven't seen the paperwork myself but if that's how it looks so if JMNB does an issue so They own around 20% of JMMB. Which allows them to refer to them as an associate company. Associee company. Yeah. So they get a line item in their income statements, share of profit in associates.

So any amount an associate gives them... 20% of that. Any amount an associate makes, it's added as income to them, 20% of that number. is added as income to them, 20% of that number. With JMB's issue, they stand to be diluted if they don't take part in the issue. They can't buy the shares on the market,

but talking about, if it comes to them, and they care. Pretty much you're saying that they have to own, keep owning 20%. 20% of them allows them to put a profit line

in the financials saying that they own um that they get that share of profit no jmb is always going to make a nice profit even if it goes up or down it's a nice and 20 percent of that comes to access and the only cost of doing that is owning the shares it's a nice little thing right if they get diluted then they drop below 20 percent that they can no longer report that line item. So the way I see it, they have to buy 20% of the company. At least 20%

of the new shares being issued. Yes, in order to keep their ownership status. Yeah, yeah. But that's even nicer because think about that. JMB is going to get

to own Sajikor Group for 22% of the Sajikor Group for the Caribbean, right? And that's a new item for them that's a new line item wow and improving and improving is going to get 22 percent of that piece that jnb is getting and that's going to hit that they can't have that one they can't afford to drop below 20 because they can't lose that they can't lose but two who wants who don't want eat a new food that's billions you know uh-huh how if anybody work out those numbers oh my god billions i'm having to calculate or something it changes so much about the entire

sector it pumps money into jamaica that never exists and coming from canada exactly we're taking this canada i love here that you you know. Yeah, no idea. When, look at Jamaica, our company, that's abroad, just smashing up the place. And we have an advantage that nobody else don't have. You can't scare us

with being poor. We've been poor for so many years. We know how to operate down there. You guys have huge margins. We can do all kinds of crazy things with that.

Yep, definitely. Foreign margins, nice, you know. Foreign numbers are so huge that they can have one and two percent margins and it's nothing right i'll tell you about some of those margins and some of those that's why software companies were such a big deal because they had huge margins yeah and even now they eat into the margins you know all sorts of stuff yeah right whoa but in jamaica

our financial sector which is the financial sector in america in any developed market because i'm just america in lond also, the financial market is so expensive. Even just the cost of an employee there, a low-level employee in the financial sector in a developed country is heavy. How much do you think it costs a bank to have a teller? Yeah. I mean, it's expensive, don't get me wrong,

but it's not US expensive. It's not US expensive. It's not US expensive at all. And they can affect and affect. They can affect changes here and affect things in those markets and bleed money through canada or take away market share because canadians used to own it right so we're taking something that used to be over there now and we're putting it here yeah

and that money coming into jamaica and through jamaica to the region oh yeah yeah this is billions acquisition just pumping through our market this week um so first i was out no hold on i said all i had to say that that is going to hit sagicor jmmb proven oh it's going to hit the big dog ncb it must it might even hit the the one's big dog scotia who is paying out a nice a lot a lot of money because maybe it looks like yeah they're paying out a lot of money it looks like people are leaving to me that's what i think it looks like but they're paying out a lot of money and it's going to hit them it's going to hit everybody in this market it's going to hit regular people who just own a lot of ncb shares it means our

financial sector is going to grow and we have an entire index that tracks that and there's a company out there that tracks the index and how long you think it's going to take before sagicor before the jmb and the sagicor deal happens because once it happens a quarter that it has to hit the books the books are about to blow, which means the NAVA them is going to go. The market hear about it. The things are going to... Money on top of money. Money making more money for money.

Oh, my Lord. The select funds things are really good index. I mean, the timing is great. Timing, yeah. The timing is great. I can't knock them for that. Timing is great. Really, really good timing.

I don't know. Wow. I just mentioned a lot a lot of companies anyway i think the access deal will happen i think one of the most important things is that a company that was tightly traded is no longer as time intruded and you find now that that means i mean i think it's going to change a lot for access it's happening at a time also and i think their market is getting very tight yeah margins getting tighter i mean there's growth there but i think they're constrained on the one hand by what technology allows them to do yeah they're pushing though they're pushing yeah they're doing so even acquire the next company sometime ago last year yeah they're always acquiring but acquiring something overseas the other day they acquired something in florida yeah i think the last year earlier this year i think it finalized they bought us loans company in Florida which means they own

an American corporation yeah I can do nice little things all the time again bro yeah I'm really impressed with your Jamaican is now in ten years access was the first company to ever list on the junior market so it was like the almost like a test case it's gone through all the ups and the downs but at the end of the day it is huge huger than where it was access had a 10 to 1 stock split at 18 something so they split from 18 something down to one dollar and 80 something cents and the stock price went all the way back up to 18. i know that those shares are being sold i've been 32 almost double that money made bro wow and all of that bill for jamaica and it was always here it's just

we weren't the ones getting it i'm really proud of this country boy really really proud like i'm impressed and i see the money there and i see what's happening and to know that people have a chance to literally participate in that and own it too access operates abroad it's operating abroad yeah

when they make money this is Jamaicans us as shareholders put their hand over into the US yeah some US man pack it and take it

right back over here tax free tax free because if I own the shares I don't have to worry about the hand holding transfer the money no no no

the company worries about that in fact the company doesn't have to move it the company just have to acknowledge that it owns it on the books and you're not coming over

with a dividend payment or something like that so it might it might do like a one dividend payment it might do a heavy dividend well I mean usually

after you acquire something you drop a dividend or two to pay yourself acquiring it assuming that the company's books can handle it but it's why is that funny has somebody done that recently i'm not a barita ah yeah but big up barita though you're big up cornerstone yeah big up cornerstone that's good business good business indeed yeah the dividend they paid the other day i think was very was handsome it's a nice chunk of what they paid for barita that they paid for so money made bro money made it's the right time to be in the financial space in jamaica it's the right time to to to it i mean i'm no expert definitely not certified but but it i think i know i think right i think i know that it's the right time to make

all if you're making a long bet on a long-term sector in jamaica the financial sector is a really really good better financial sectors can swing yes they swing they can swing but things to me look like they're handling it because the only kind of swing they can also control a swing when they hear them talking about giving small business owners more credit more credit yeah man yeah that that means know that they have to pay attention to it and you're not going to listen company you can't do it one time and stop and pick up the boss him freeing up the asset tax on the financial companies so the more money we need for the micro credit that you keep buying about i didn't remember i think about that think about that think about it so there's no asset

tax which means that immediately on whichever quarter that that comes into law that quarter ncb profit automatically goes up exactly and that expense is no longer theirs which means the profit automatically goes up which means that the index attracts that must go i was going to say yeah select is like you know i like select here's something like here's why i like select it makes it easy to make a long-term bet if you want a long-term bet yeah like oh i believe in the financial industry just buy the industry boom exactly buy the industry you believe in industry just by just by by select like no ceremony yeah over an ex-wife is my distant wonder yeah if you don't know everything yeah oh god I died so we just

said by select I forgot to say that we're not financial analysts we're not finance we're not recommending anybody anything blah blah blah of you say would none of us are experts we're not doing that officially but to me how i see what i'm thinking is if i believe in this thing over the next five to ten years and i think they're going to make money and i'm a person who say i want to put on some money for the next five to ten you know select f is a very easy option to do that regardless of the price and the price right now at one dollar one dollar so it's in the teens i think so one dollar something is is literally yeah easy easy to see as a long-term bet if you're doing that if you're into that stuff you do not have to be privileged to buy

smartphones that's the point oh god don't touch my privilege so anyway so i think i give people something good i think we give people something good there we talk about a lot of companies that are in a line to make a nice one i did talk about that thing with marcus james as it would be great if he floated a bond on his own and came in because you only need to buy like seven percent to trigger a mandatory offer so if you get a bond that's big enough to cover the seven percent or you can buy that out of pocket i'm sure and to trick well buy the seven percent to trigger the mandatory buyout offer cover the cost of the buyout offer and i'm talking full buyout so d list and three three pay the pay the penalty that because you know if you delist he has to stay listed this is 10th year

yeah so he's the tax break is done for him almost just pay back all the taxes he would have owed yeah so if he delists

he'd have to pay back all but I mean you can also calculate that number to me I think if you calculate that number you divide it by 135 to get the US figure it becomes a very regular bond

US figure very very very regular that's a very regular 8, US figure. Very, very, very regular. That's a very regular 8% bond. 8% is nice for a bond too. That would sell fast. Yeah, especially right now. Someone giving a 68% bond, that's a grid that would fly off the shelves. And it's a company that's listed, so you can tell what's happening there.

So everything that you already have, you can do, and the cost of it is that you have to pay back the tax break to the people of Jamaica who did give it to you. you but guess what i'm okay with that because it's like he took a loan from us i know it's weird that i think of it that way but it's like he took a loan from us he took a loan to grow he grew like i said this did i start a 10 to 1 stock split and come back and meet it so you see when that's that's what that's an art of magnitude each time and we're now double that more almost double that man basically then also has a company yeah he lent us a piece of it i would do that yeah and the cost fight is that i'm going to have to pay the tax back through this bond that maybe eight percent over the next 10 years but that's a very regular bond and it just means in real in reality it just means that

all you're doing is you're cutting your profit margin by the percentage interest on that bond right but guess what now i own back a hundred percent of this much huger thing and i can give your profit margin by the percentage interest on that bond, right? But guess what? Now I own back 100% of this much huger thing and I can give myself a very stupid dividend every year.

I'm not. So he owns about what? 48% of the company right now or so? 47, 48. 47, 48. No, whatever it is

because I had worked with I think it was like 7% to get there. Oh yeah, so 43, sorry about that. Whatever it was. I'm sure somebody's screaming right now or or saying somebody said you see that even what they're talking about whatever it is seven eight percent and it triggers the buyout the mandatory buyout for them so he his claim on a profits before was 43 percent

so imagine his claim when you buy it yeah he can pay the finance expense of that loan. Yeah. The 50 cents that he gave back. Uh-huh. That pay him good. Yeah. Not worry about that. So. So, I don't think, I don't think, I don't think, I know a lot of people said, I know a lot of people think that the idea is crazy.

And it is crazy. Sure, it's dumb. It's one of those weird things that you do if you're flying high or you're in billions or something. But those guys actually do live in the Jamaican version of the billions. That things that you do if you're flying high or you're in billions or something but those guys actually do live in the jamaican version that's what you do he has had a rough time he's had the highs and the lows of the market yeah he has he has had a rough had a rough time um going into going into what i think is is the upper level of the market. Because as a first person,

he has gone through everything. He's known what it's like to sell so much of your company to the market. And then also on the flip side, feeling your company grow so hugely. I mean, he's had the rough patches and he's had a lot of the good patches.

I think maybe I could see being in his shoes and saying, you know what? The price is saying thank you to that. And thank you for helping me grow this way and getting to the point might be a big bond and i just go for it but right back yeah this company can take a bond it's done bonds before it can take a couple of months yeah and and a bond that these days when the debt is pretty cheap there's that they have some but they have a bond out there it'd be interesting people look at what the cost

of the last access bond percentage was and look at what current bond rates are yeah yeah there's a lot of room for a lot of things you can read money even at the last bond price you got the last bond level you can get a lot more money these days I think in his shoes I could do it but I'm not in his shoes so I can say anything anyway so you hear me chat a whole bunch of companies. Anything else that you like? Let me try and wrap it up

because we've been talking too long for this one. I like VM Acquire and that company. But taking a stake in that company. The period of period of income. Yeah, the Barbados. Online, yeah. Online. Big up Barbados.

Big up the finance minister of Barbados. I have met her. She's also the prime minister. She's pretty cool. Mia Motley. She's a really cool lady. And she knows her. She's the prime minister and the finance minister. When I heard that, I was like,

whoa. Yeah, yeah, yeah. I know she's doing a hell of a job. But I can say that because i don't live there but what the time i've been there it's a beautiful place it looks like it's working out yeah so for them a company like that with their society yeah you can't stop with this privilege you really want to get me trouble to finish telling people about the company and let's wrap it up please go ahead go ahead it's a pretty pretty lending company so it fits. Please, go ahead. It's a pay-to-pay lending company,

so it fits right in with VM and its lending direction as it went with the whole VMIL listing move. So it really fits into them. And it's an associate stake, I think, at this point. So they may acquire more in the future. Maybe even list it. I want the VM to be more aggressive on listing companies

because they have an investment bank in arm. They've listed companies before so speed up some more what is you know something I do like that I like I like they're making that move was Jamaica brothers they bought further into America I think they bought a plant this is the first time they bring in best dressed to America so before it was eggs and starting stages it wasn't a brand they're pushing a brand of chicken no this new purchase they've made is going to be rebranded to best dressed and the best dressed brand will be pushed in the American market so they they're going to a new market for them. Their chicken, best dressed,

will be in the American market. And further to new markets, that's in a state they were not in before. So they're in a new state, new product. Boy, money that's to me still. They use that, they use that,

a funny term in part of their personalities. i think somebody says the first time they'll control the full vertical yeah yeah that's that that is that is top talk right there that's the full mcdonald's is a full vertical company wow yeah mcdonald's owns the farms that has the chickens that they kill to make the burgers they own the farms that have the wheat that they own that has the chickens that they kill to make the burgers that on the farm that have the we that they own it they own a full vertical McDonald's controls everything from the growth to when you hit that plate in front of you owning a full vertical is something that's very respectable in business very powerful Apple has put a lot of work into on the full vertical of the iPhone then own the

mines they own the smelters they own the aluminum companies they own the companies that ship it to them they own the full vertical they get the entire design well well they own the company that no but they own the company that buys from samsung because what happens is that their factory buys the screens from samsung that factory that's putting it together apple on it makes sense yeah there's something like foxconn that they own who you chuck up they own the food vertical that's a top thing to see. In fact, Jamaican companies say

that they own a food vertical of a food source in America. In America. I can only remember when the American, some American chicken was being advertised in our newspapers.

Oh yeah, about the tape, yeah. Yeah, I'm not sure if I can say anything about that. Other than that. No, but you know what you know what

big up the chickens in jamaica big up jbg i believe in that company yeah yeah i like my jamaican companies big up jbg i'll say that forever yeah man yeah you big up KFC was KFC KFC KFC just bought Wendy's oh yeah from we sink or from we sink or food division which is not part of the company yeah but guess what I'm sure that none that maybe that part of the single group you go back I'm sure it's owned by the person who owns a family group and a family group or the companies above the holistic company have been making room because they bought this the sugar factory they bought the rum the rum the rum thing and they brought rum into their distribution and that I'm assuming that that company still benefits from

that food sale so I think so so hopefully mr my food has something interesting coming yeah with that money all right we're just going to live better you'll be making some good moves thank you signed a happy shareholder actually i don't know if i i won single shares anymore i haven't won yeah i sold it because i did believe in them what they're going to read now so pick them up yeah i'm really happy i'm really happy about that yeah yeah so i think we've given people enough i've been talking and drawing for a long time thank you very much guys this has been episode seven of the earning season the privileged out earning talk too much episode i guess it's an episode where i i i spoke too much episode i guess it's an episode where i i spoke too much and saw the two privileged i hope you guys liked it i've been randy at rt on twitter and this has been earning season Thank you.