Earnings Season - Q1 2020 Stock Market Review (Part 2)

Episode Date: May 8, 2020

This week @RTRowe and @HDanhai continue their review of the entire market, but first, some additional info on 138 Student Living ($138SL.ja) from last week's episode. They also touch on the impact of the BOJ’s Dividend Request to DTIs and then head right back into the review starting with...Dolphin Cove ($DCOVE.ja).Come for the gems, get them in pieces...Contact Us Here 💻 📧 [e-mail]💻 podcast.everymickle.comFollow us on Twitterwww.twitter.com/Earnings_Seasonwww.twitter.com/RTRowewww.twitter.com/HDanhaiLinks138SL - https://bit.ly/3ftqgyyGRWR Link - https://www.everymickle.com/store/grwrstream (MOMSLOVE 20% Discount)Dolphin Cove Hotel Disclosure ($DCOVE.ja)- https://bit.ly/3b9zHQsDolphin Cove Year End Financials ($DCOVE.ja) q1 https://bit.ly/2A5Yw33Derrimon Trading Company Limited Year End Financials ($DTL.ja) - https://bit.ly/35JgeVJ Express Catering Limited Third Quarter Financials ($ECL.ja) - https://bit.ly/3dd7Y2SEverything Fresh Year End Financials ($EFRESH.ja) - https://bit.ly/3b9okIu Elite Diagnostic Second Quarter Financials ($ELITE.ja) - https://bit.ly/2YHfvDc Eppley Year End Financials ($EPPLEY.ja) - https://bit.ly/2VCPMZh First Rock Capital Holdings Prospectus ($FIRSTROCK) - https://bit.ly/3cbH37lFosRich Year End Financials ($FOSRICH) - https://bit.ly/3cdng7BFontana Second Quarter Financials ($FTNA.ja) - https://bit.ly/2WEkbai Shout-Outs@shaemill @UtenJM @alextheoverlord @Dayan876 @SmittyRoyal @loopjamaica ★ Support this podcast ★

hi guys welcome to earning season i'm randy at rt row on twitter randy row in real life and i'm danai at h and i on twitter then i followed you live since we're sending like that this week yeah yeah yeah right that's me trying not to stumble i do see you guys are continuing um our review of the market so we stopped last week at cpj i was going to pick up with the next one in line, which is coming to me in a second. Dolphin Cove. But before that, anything interesting happened since the last time, didn't I? Interesting with Dolphin Cove.

No, no, not in terms of the market because it has been exciting. Oh, sorry. Let me start and not forget this. I'm big up. Big up. Oh, I cannot get the young lady's name wrong. Well, I'm not bad. You're not bad.

You're not bad. You think you're bad. I'm quite bad, but I'd rather err on the side of caution and ensure that I get everybody's name right, because that works best. I agree. Big up Shay. Shame, yes. Young investor who has been doing some serious things out there. And she actually corrected me. I helped correct my view of 1834.

Not 1834, sorry, 138 student living. Yeah, it was just, not that we were off, but she added more clarity. I won't get it right. She's saying that, hmm, trying to look forward to what she told me. I know we had a conversation about it, but I can't remember. But I got some clarification on it,

and I think clarification was around the fact that I think maybe some of the people staying there did get some refunds. There were news articles. Oh, yeah yeah there was to say that they're thinking to pay out some some money

They're thinking to pay out some money? Pay out money that's already... refund money that's already collected Hmm Who that? You or 138? 138 You have the article? Here it is. We got Loop. Yeah. So funny, Loop has survived long enough to start to find a new niche, not niche but a new set of usefulness that stuck around until things have swung their way.

It's funny. I find Loop much more reliable with the financial reporting news nowadays. Yeah. And they're on time. A lot of stuff. Yeah. Yeah.

I suspect it's because I suspect it's because a lot of the things that Loop gets, and I don't know for sure, I'm assuming here, but I think a lot of the things that Loop gets may come from companies or might be press releases or clear companies. So it might be more accurate because somebody in the company wrote it or contributed the numbers or whatever, you know? I don't think you do.

All right. Yeah, I have it up here. State 138 has been faced with finding new sources of revenue for the remainder of academic year. Real estate firm may also decide to return some portion of living accommodation fees already paid. Yeah. Okay. okay yeah I'm giving the people up Sean's what they say they had hope to keep their occupancy rates at over 90% that's key right because we know that I need to stop saying that's key I realized that from the last girl I said that's key as part of a conversation and it's sometimes I'm talking about key itself and I say that's key I get confused and sometimes sometimes people message me, DM me, asking me what I meant about key,

and I say, that's key. What's that link to key? So let me be clear. That is important, I think, because the last thing that I know about the agreement was that they are guaranteed at least 90% occupancy by UAE. So if it falls below that, as far as I know, at least, UA occupancy by you is if it falls below that as far as I know at least yeah but I say that I think that's what I want to share about that there is the possibility that the agreement has since been changed well remember that

there was some court business and then things were sorted out and they got a big payment and the payment should continue to be shared true but i don't know if in the starting out part of it's like okay we'll pay you this and we're going to amend the agreement to say oh yeah what you know with yeah it might have been's say the best deal is one where both parties leave feeling like they've both been cheated. Yeah. Yeah. And it might have been that. So it might have been,

yeah, we will pay, but then adjust it from 90 down to 70 or, you know, you have to show that you did whatever to keep it up. There's all sorts of things that could be in there. We don't know until we know. I like to, I mean, we have to make assumptions assumptions but i like also to clarify yeah

i'd love for them to clarify that well i think i believe that that agreement is material to the company so if it were to change i think they would have to state it in the next audit which is that we got we saw some of it which is again repeat that we saw some agreement during the prospectus when yeah yeah yeah yeah yeah and the people at the last set of grows i've done would have heard that at least some i don't know if i said you know but some because we spoke we touched on it a little bit um and i think i've been doing i find myself doing grows back to back at this point um and it's i'm gonna complain i should i should point out that well by the time people are hearing this there should be a deal for mother's day because mother's day is sunday

coming so people hearing this before mother's day so i should yeah come to grow guys you want a a nice um experience for you and mom she's taught you a lot you want to maybe learn something alongside her for a change there's a great deal come to grow check the show notes for the code or go to every nickel.com slash store slash grow stream bite and enter the code MOMSLOVE that's MOMSLOVE and you get a 20% discount 20% I want to give you a 20% discount I mean it's a tough time though, why not

20% discount, MOMSLOVE so yeah, 138 student living interesting thing in this though is that they're looking for ways to make more money so that they're as you were saying make more money. So they're, as you were saying, after if school don't open up at certain times, then it would be problem for you.

And they're looking at accessing the option to store belongings. Yeah, because a lot of people, I think, still have their things there. Which is funny. So what would be, all your things still here, so you have to keep them here, basically think is that how it works well i guess i mean if that's the business wow i never thought of that i don't the points i think they're giving

back some money and we'll put that that article that you you shared and i in the show notes so people can check the show notes and see it right now. It's a good article. I like that it has some input from the company. That is what I like. I like that they're getting, especially on the financial side of things, they're getting known for being on the ball. There's something else I saw that was so interesting to me, but I think we're going to touch the company in this episode, so I will leave it till we get there and it was also on loops i guess loop winning um wait that's what i wanted to mention anything else happen yeah we saw the

effect of the dividend thing on the financial stocks this week ah yes yes yes yes people started to fall yeah um ncb the great ncb fell more um on on friday on friday april 24th when the notice came out it closed at one dollar 151 and seven cents and today not today i know one. And today, not today, a week later, because it's not today, a week later, Friday closed 141.98. It's funny, I know people that I heard

of, well, you saw a trade at a minimum of 131 this week. Somebody got that 131. And it was good volumes too. Those trades. Wow. Yeah.

Wow. You know, I actually, it's so funny. I tweeted, I tweeted something, a 7% drop. Six, roughly 6% drop in a week. That's a big drop for NCB, i tweeted i tweeted something a seven percent drop six maybe seven six roughly six percent

drop in a week that's a big drop for ncb which means like big drop for the market because ncb influences the market i say well fell as low as 130 131 yeah i think on the on the candlestick yeah wow that's on the same Monday says a Monday right after yeah right after somebody just jumped out damn

131 I love 131 and it did I love 135 the day after that even Friday I love 140 a low of 131 and a low of 135 the day after that. Even Friday, a low of 140. And then in the middle of that, they released the results. So the results came out. That's a big deal.

I haven't touched that since we're going to, at some point, get to the ends. So we can talk about them then. But I noticed how they worded their release, how were that they're they think that was interesting to me but interestingly jmmb was holding on to hope this week i saw some good amount of sales but it looked like there was some resistance to a fall for them and be a good amount of it so i queues, people weren't really pushing into it heavily and they weren't pushing past a point. So look at all the last week for JMB and you realize.

Yeah, it just keeps falling. Yeah, it falls away. You can see where it kept pushing back up during the days. So, somebody is holding on to hope. I mean, hope springs eternal. Hope springs

eternal, JVMB boy. It's so funny. For years, i've been saying how much jamaica market love two things profit and cash profit because it can pay dividends so them really love dividends love it gone to bed and then that's add to that the fact that everybody when they learn go invest in them here. Dividend, two things I say all the time. You learn dividends and diversification, the two D's. It's true. No, man, you should

diversify. Everybody knows you should have a really diversified portfolio. If you don't know nothing about stocks, you know the word diversification. If you don't know nothing else, oh no, buy Carreras because they pay really great dividends. Consistent, which they do, right? And that's not my advice, guys.

This is not an advisory show. We're not investment advisors. We're not licensed investment advisors. This is not investment advice. Speak to a licensed investment advisor, all right? But I've said all of that. You hear that all the time, you know, diversify, dividends. Wow. said all of that that um that you hear that all the time you know diversify dividends wow i mean i guess it's proven true here because down down down down down boy close the week jim and be closed week out

33 54 33 50 this thing api for 38 a couple months ago you know and the apo price was lower at the time than the trading price yeah yeah you know because of that everybody and them because i get asked all the time now every single girl you think api what is the best thing you should should i sell all my shares and buy ap oh god it's it's come to grow and get the answer to that um yeah jay might be something but yeah what i want to clear up the the 138 student living thing. So it's a very interesting situation for them going forward. But it's going to be a very interesting situation for everybody, I think, on the market. Really.

But luckily, I think they're equal to the task. Indeed. Yeah. So, Dolphin Cove, you want to take it or you want me to take it uh i mean i'm sure i'll take it dolphin cove is a general star rough on them still they depend heavily on tourism a lot of jamaicans does not do this and even if jamaicans are going there then guess what corona still much of the place so yeah they it's a tourist destination yeah a lot of we go and swim in the dolphins that's the fun part basically a sea jamaica's version of sea world and there's

nobody flying in right now and nobody's not traveling to the north so tourism down the revenue is getting a hit right now yep matter of fact today's buffett moment buffett moved his money out of all the airlines oh yeah yeah oh my god oh my god i mean outside of it being a huge oh let's talk about buffett's thought moment i mean it's i think it's telling. It says that Warren Buffett no longer thinks that there is heavy profits to come from the airline industry over the next few years. But that might not be a bad thing. It might mean that they're going to be burning cash in order to get people back into the flying mode.

So there might actually be really great deals coming up and i think social media could propel a lot of that when you know people are like yo you can go to jamaica or yeah i was going to italy but yeah wow so that's going to be the real test right when tourism in italy rises that's how you know the world is back where it was um that's a good indicator there world is back where it was. That's a good indicator. Those unorthodox macro indicators that I use. When Italy's reporting increase in tourism, you know that things truly are up and up.

And we, Jamaica, need to beat them. So it's going to be a tough road. It's going to be a very tough road. It's going to be a tough road it's going to be a very tough road it's going to be a tough couple of months or longer so darvin cove darvin coves earnings me why it's funny it's right after cpj so in our talk so general star right our next one coming up that's close to close to that home true well let me be more analytical um let me let me add some structure around around the the anecdotal that i'm saying i think 10 percent of jamaica's tourism either 10 or 20 percent i think it's 10 though i think 10 percent of jamaica's tourism is internal so jamaicans going. And not even them going.

I mean, that's at the best of times. So obviously that means when things kind of load, that means 90% of the income is not from here and tourism is dead and it's a wicked set of months for some of these companies. I think what's instructive

and going to be instructive if you want to predict the movement in Dolphin Cove is to look at what that agreement says from the last notice that they put out about the US dollars that they get for the agreement around the building of the hotel. Because I believe, I'm just working on it now,

I don't have to bother to bring it up. I'll call that homework for people. I'm just working on it now. I didn't bother to bring it up. I call that homework for people. But I believe that Dolphin Cove, I believe that it, I think it gets some money if it doesn't happen.

So like if the hotel isn't built by X amount of time, they're guaranteed X amount of US dollars, which might be an amazing thing to happen if they're like, yo, it does not make sense to build a hotel in jamaica right now and well i mean you have this agreement so i'll give you more money and right now the us dollar rate spiking and it might spike a little more boy so it's i think a bunch of factors that could actually lead to an earnings surprise for Dolphin Cove are, if you want to even go deeper, to go how we look at the market, at least how I look at the market, I know you do the same thing Danai, is that they may actually have

like a drop in price because you you're like this doesn't make sense tourism is taking a hit blah blah blah right the usual herd reaction and it drops and it might get more sold and it might go all the way down and then you see it all the way down and you hear them say we have decided to kick in the agreement that we have with this hotel whatever and so we're going to get like you know a hundred thousand is a hundred thousand years or something like that and that would that might be a heavy bit of earnings hitting their books in u.s dollars at a time when the rate might be even higher and then they're going to although i don't know if they report in jamaican dollars or u.s dollars we can check that also people should check that if they care but whatever it is it's cash coming in it could allow them to

pivot or you know make make some make some alternate investments put some money somewhere else that they might be making money right now at a time where tourism isn't working or maybe but that's the thing that future profit is made out of

and speculating future profit is made out of and you look to see if it could happen but you're saying you feel something as in future profit is made out of and speculating future profit is made out of and then you look to see if it could happen. But you don't see it happening. You're saying you feel something. As in, I've said before, property you own, how I feel about the thinking

around stuff like that. I don't often see people going in that direction. So I don't think I might just get the money and say, well, this will hold hold operations for X period of time and make it go on doing things. The boring play, quote-unquote. Make the money, just hold it

and tell the story. I mean, are they usually boring? Oh, Dolphins go? Yeah. Yeah, they don't necessarily do much. Yeah, but I don't think the people... Oh, you know what? No. The Mexicans control it now, no? Mm-hmm.

And they're like the dolphin people in the region. Okay. So, if they're getting cash, they may actually... If they're getting cash, they may actually choose to repatriate it because it might just be a dividend payment right so it might be it might be a good thing yeah exactly so in that situation being oversold might be really really good the dividend yield might look very nice yeah and that's so fun because there's no model you can run that would tell you that other than a common sense model

you know that would not go remember last knee yeah looking at the material thing that they sent out, disclosed the material information. Effective March 3rd, a subsidiary, Dolphin Cove Negro Limited,

granted to Reserve Investments Limited, an option for one year renewable for a further period of one year to purchase on terms of property on which Marine Park at Lucy is located for the purpose of constructing a hotel thereon. The option money is $100,000 in the U.S. That's where I got that $100,000 from. And a further sum of $100,000 will be payable if the option period is extended for a further year. Dalton Cove Limited states that the company has retained the right to continue to operate

its marine park in the hotel and would be adequately compensated should the park at Lucy need to be closed for any reason during the construction in the event the option is exercised. Dolphin Cove added that the market will be kept abreast of any additional developments. Yeah. Wow. developments. Yeah. Wow. So that means that they already got the money.

I would think so. What? 100,000. They get 100,000. I mean, option money here speaks to the money that they get to i think have the right to cancel it i think during the time um and every year that they want to extend it have to pay another hundred thousand

yeah so i think it might actually, I mean, if you decide that, this is also another good, this is also another good indicator. You're one of them unorthodox earnings season indicators. Because if these guys go ahead and build this hotel, no, it says that they're confident in something.

Or maybe they could be. Confidence might be in the wrong place, to be honest. Well, that would require going deeper to see who Reserve Investments Limited is, right? And how they're actually working out for it. And how the coronavirus is affecting them. Well... Subway, hotels, and then what? Well, I think, I think, I think, what did I say? That's why it's an indicator. Meaning if somebody is versed in hotel business and truly has confidence in it and says, hey, I'm going to go ahead and build this hotel in Jamaica right now during the dip. You might be them saying best to build during the dip so that you benefit during the rise, right?

Because by the time we done build it, the market has recovered. Or on the flip side, if you're expecting some greater hits, you might say, I am not spending any cash right now because a hotel is going to cost more than 100,000 US to build. So here we are. Make them keep them 100,000 US and we cancel the contract. If that contract is canceled, on the one hand, Dolphin Cove gets a nice little bit of money. contract is cancelled and the one-hand dolphin calls get a nice little bit of money but it too tells me that okay the guys who are the experts in the hotel business are scared that that's nice so that's how you can benefit from an indicator agreed yeah yeah but it's like it's like how often do you get to benefit from a red flag

i'm just saying i'm not really confident all right no for them because look at the overall revenue in the mid last year well december 2018 was 14 mil overall us yeah versus what versus uh how much what will a hundred thousand add to that really no man not revenue what was the profit because this is straight profit oh profit uh this hundred thousand is just it's just money given to you because somebody has canceled that deal so it would be straight profit so what was their profit? two million yeah 2.3 did they write dividend payment what was it the total dividend? So I do it in February 2020.

I pay them in what amounts per year? Quarterly or semi-annually? Second. ounce per year quarterly or semi-annually taking the last one that declared yourself your q1 was february 24th and it was a dividend of 30 cents for the ex-dividend date of March 12th. Paid on March 30th. So it's paid off. What does 30 cents mean

for them? 30 cents. I want to say 30 cents here. Did I mean 30 US cents? I was going to ask. Yeah, that's a lot of digging yeah i think i can just do some inference from this one because we do have to go through a lot uh but i think yeah i think dolphin cove is in a dicey place and for the for the the less for the less risk of some of us who are willing to do the digging that you hear us do in Anwar, because we're not going through all of it, is for them it might be instructive to dig properly, talk to the advisor and look at if there could be, I don't even know what

you call that. What do we call that? I mean, it's not really an earning surprise, right? But if it's oversold, I think it might actually be 30 US cents, you know, the share price. No, I think not anymore. No. Because the share price is $7.22 Jamaican dollars, right?

30 US cents. Yeah. You sure? Yeah. Oh, why did I think that Dol cove traded in in in us dollars that's a report in us that's probably right yeah yeah but yeah 7.22 at 30 us is 42 dollars at 140. there's no way people get in people keep that price of seven dollars when they can buy that 42 when when they turn dividend at 42. well. When the 8th dividend at $42.

If you get me. Well, I mean, the dividend paid already. So, all of this is post-dividend. Yeah, but look at the price. $7.22, yeah. Yeah, as in... It's falling from $11.38. Yeah. Before the X date. Yeah.

So, I'm not seeing where... You get $42 and you know, right? You pay $ not seeing her for you get that you hear 42 dollars and you know right 42 you pay 11 dollars per share and you get a dividend 42 dollars per share and you keep it at 11 dollars i don't think so oh yeah oh sorry you mean in the us yeah yeah yeah yeah it's jamaican i'm with you i'm with you so that's what you're saying that is 30 cents jamaican yeah it's 30 flat it's 30 flat? I just I just I just

30 flat Jamaican yeah what do you mean? I just multiplying so the total dividend amount

was oh that's what you mean okay cool yeah I want to see how much how much

that 100 I'm trying to find how much that hundred... I'm trying to find a way that it might be great for them, you know? So I want to see how... Okay, this is screwing up. It is 117 million point seven. 117.7 million Jamaican dollars. And 100,000. That's about 14 million Jamaican.

Yeah. Drop in the one. Yeah. Drop in the bucket. Yep. Whew. Yep. That's sticky. That's good to put in. I'm not going to do it.

The voice. The voice edit? Yeah. The Ghanaian music. Oh, Lord. Things looking sticky for them. All right. So that's the Aspen Club report.

Yeah. Rough, rough times. I shouldn't laugh because there might be a whole lot more to come. But, I mean, we used the tough times. Next up is Derryman Trading Limited, DTL. David Stock. Cut drills. David Stock.

Oh, God god you're funny yeah I guess because David does seem to spend a lot of time looking at it DTL has for the year for the year fallen from $2.56

cents per share to $2.56 per share to $2.01 per share. Resilience. Again? Resilience. Yeah. That's a big job at all. Right.

Well, it's big. Right. It's $2.00. $2.00 is the last thing there. That's a fifth of their price. So 20% down. But still, compared to everything else, a lot of other things.

Yeah. But they had a low of 140. A low of 140? Yes. Somebody made some money since then. Yes. It was a big trade. It has actually had some big enough volumes that's the thing you know

i was thinking maybe it hasn't traded much but it's it's pretty liquid yes two specific days are millions of shares traded but regular days like 60 odd dollars or anything there see 200 thousands 990 thousands yeah so yes pretty liquid i guess yeah i mean it might not be a lot of trades but it trades you know um on friday was three trades and it 99 000 units success that that's i can't knock it i cannot them if you look at dignity of the actual company I cannot knock it. I cannot knock them.

If you look at Dingle, it's an actual company. Yes. Which is what I was going to do now. And this is probably one of our first real corona companies because... Oh, yes. Yeah, because they're in distribution of food, right? And poor people food too.

We touched on a part of the group's CFF earlier. Yes. They are majority owner of cff yes is a subsidiary subsidiary so now we're at the rest of the people then so there's a change of voice again you change the voice while i go in and then all of all of the girl in my message being asked me why you don't you edit that i have voice i don't make him real voice come out whatever you do i'll, speak like that again. Keep the mic where you kept it because I heard it very clearly a while ago.

I don't know. Better? That's good. I think so, yeah. I can hear you clearly. That's perfect. Yeah, go ahead. The rest of the group, detail, woodcats, detail, detail itself, the actual thing there. The main company parent here in distribution of food and they owned the only supermarket some parts which had a report saying that they know how thing there they have uh optic in online sales

because remember they were doing the online thing for a long time i'm not sure what's going you know you know jamaicans resistance stuff like that but they were smart and i think what they do is they start the focus on having people overseas because people overseas can buy groceries for them family yeah they were talking about that cut out grace and i was saying it was primitive just buying them groceries make sense yeah so yeah and they actually distribute for things they are distributor they bring soda and anything there to the supermarkets and stuff yeah and would get and wood cats is what would cats do palettes palettes yeah which i don't think

i'm not expecting a supreme loss of business for woodcats to be honest they should be fine but if i think the um rationale behind them purchasing woodcats was that they were just yeah yeah so they're owning the vertical and he's trying to increase his his net profit margin because yeah at least for us he's been notorious for having raised that margin. It's my deterrent. One percent. I know in Billupim Group enough to, less than one percent. Yeah.

I think the net profit margin is less than one percent. But Billupim Group now to a point where I think he's slowly increasing it and I suspect a good distributor might be able to, not might be able to, is in a position over the next few months especially to really capitalize on the distribution of cheap and clean. Yeah. Would you use some results from them results results results their annual was december 31st yeah i mean they have something for march 31st so i think they have the corona delay i see the revised yeah yeah david's handiwork David's handiwork. Ah, I mean, yeah, go ahead. I was saying they're up.

We'll continue. Yeah, exactly. I was looking at that. I was saying, you know, the revenue is up and their profit is up. And, you know, they're handling operations that should be not a little bit better, a lot better. The asset base is higher. Am I correct? Yes. Yeah. Reserves strong. a little bit better a lot better the asset and the asset base is higher am i correct yes yeah yeah reserves strong and i think it's good that they're looking like this because they look you're going to need to be very healthy especially as a distributor to survive so that's the benefit

of being able to work from raise up in margins you're very you're very efficient with you you're forced to be very efficient that was a focus from before all this so yeah and i think i would think that the thing there the online sales might be more efficient for them because they will not they might have stock in the back that they don't put out on the shelves that so they don't sell shell space and they get me so not spending as much on putting stuff on the front if you sell stuff online. So that might be better for them in some cases. So you might actually see good front detail. Yeah. But it's so funny.

Almost every company has to be reconsidering, like, what is their performance? How do they stay? And then, what is their their performance how do they stay and then can you can can they survive what's going to happen to them i should say hold on one second for me god guys I'll link you and I done recording right I am still recording I'll show Tina second sorry yeah i'm supposed to have a brett green link i brett green zoom link up it was a drink actually you know i can't get with that i think i couldn't either but um my friends wanted a zoom brunch but i'm not it. I don't know about a Zoom brunch.

This was... I'm going to get food and come back and we talk and eat. What I'm going to do at Bertrand's Zoom Link Up is I'm going to sit in this chair I'm always sitting in. I'm going to have some scotch and we're all going to talk and listen to music

and whatever. I'm going to have some scotch and we're all going to talk crap and listen to music or whatever, which I would have been doing anyway. Which is brunch. I'm not bringing up. Wait a minute, you have to pay for it? No, you make your own shit, bro. Pancakes.

Yeah, I'm not doing that. I'll make my own whiskey. Oh boy. Where were we? Yeah. The funny thing about this reconsider every company how they will perform yes and then and yeah how they will perform in the coming in the coming crisis is that crisis i mean i think that crisis yeah i don't want to jump ahead i I said the day before we started recording that I am so worried about just everything. And I don't hear anything being said yet. But I understand, obviously, the government have a preparatory response.

And I don't know if it's me just always over eager. Or maybe it has been happening and I haven't know if it's me just always over eager maybe it has been happening I haven't seen it but like a realistic layman's expectation and response to what's about to come because tourism is dead and has been dead for a month and a half now and will be dead for a little longer tourism is about a little over 30 percent of every dollar that jamaica makes so every ten dollar jamaica makes three of it come from tourism ten of it a little over ten comes directly from tourism and another 20 come another 20 odd comes from add-on industries i don't know if cpj would come so if like cpj would be a add-on industries. I don't know if CPJ would come. So if like CPJ would be a add-on or if CPJ would be a direct.

So if it's not, and I could be wrong here, but if it's not it would be that like the hotel is the direct tourism industry and then CPJ would then be the knock-on. Or if not, if CPJ is the direct, then like the auditors for CPJ, the people who audit CPJ's books

is knock-on. It's going to be a the direct then like the auditors for cpj the people are the cpj books it's not fun yeah um it's it's going to be a a a thunder trap through the industry through all industries i think yeah tourism and bpos i think that dimitri was just mentioning but he mentioned today him but he mentioned today at utm yeah he remembers a conference some time back a conference i think where he said i know he was talking about jamaicans should look at shouldn't well companies shouldn't look at jamaica as just a 2.7 million people you have to also look at 4 million tourists that travel through here as part of it. Exactly. At the time, he was looking at it as hey, he can make more money from

he can also look at Jamaica as a money-making opportunity from just 2.7 million if out of tourism. But now, the context, for all purposes, the context would be we're losing 4 million people and we're only left with the 2.7 million to make money from because of this right

now so it's exporting to be honest but you get what i'm saying their domestic sales are things tourism was buffering was buffering that up now we'll ask a lot of that yep it's um it's something that we're really going to have to think about and people i would like if there was a real conversation happening and like some open just clear talk to people like you know things going to get rough all right you'll use employee only people 40,000 i think that's our 400,000 yeah no enough i don't think it's 400,000 um but my god i suppose it's 400,000. But my God, I suppose it is 400,000.

Yeah. I mean, BPO is great in that it can jump into your country with limited costs in terms of setup. But the flip side of that is that it can go just as easily. Because I was looking at it and I was saying, the fact that we've never had a lot of BPO's been online. That's an opportunity. Opportunity for somebody to say, boy, if I could just get customers that would be okay with people just,

like a Fiverr type, you know those online work environments, they can just go. If you have something like that for Jamaica, where you can just, okay, you're an employee here you work from your computer you answer the phones and all that stuff and we just track your hours and that type of thing or remote WPO

that makes sense, but looking at it now with what happened after that we're just now stepping into that and Jamaica is not the place it's not the place of cheapest labor in the world so it can go very easily that exists that has always existed

the issue of that is the reality of Jamaica on the business side of things a lot of those companies in the that exist within the SZA special economic zones

special zones of activities or SEC special economic SEC anyway um anyway where was i sez uh sez yeah because within that regime there's some there's some laws that require like certain equipment that's used within it has to remain within it which is uh coming off the free zone model and still has some elements of it but and also has taxation benefits of companies that exist within that space and framework which means that if they come out of that space and framework

they're no longer as competitive right and so they need that framework and you can't be at home and in that framework. That's crazy how it sounds. And on the other hand... No, go ahead. You might be more profitable if you have a remote. No, it is more profitable, but it's a matter of law. It's a matter of law and how the benefits are granted to you. I know, yeah, man, but I'm saying, I chop out the Caesar thing.

I'm not working with that. It's easy. So I'm not working with that. It's easy. I just have a remote thing. I just have a, in my yard, do my thing and then have a place. Yeah, easier computer.

Yeah, everything, yeah. And some of the company buying the service, it might be cheaper. Yeah, but no. No, because I think there's certain benefits that would be entrenched there on one hand. And yes, it might be cheaper along those ends, but then the other part of the

part two of what I was saying is the thing that influences that, which is the chopper phone factor. I hope you're sitting down, factor. Hey, Jim? I heard monitoring is a big part of it. Hey, Jim. I heard the monitoring is a big part of it. The monitoring of employees is a big part of

BPOs maintaining their credibility to the outside people. Their customers. Yep, because nothing kills a contract quicker than scamming. Yeah. I hear some stories about

how that went well I can show you how that went yeah yeah some man say them done with mocha them not stop dial it's just

it's us the people that cause that like I don't know what to say yeah it's just it's the chickens coming home to roost and we have to hope that what i think will have to happen is that we will have to just be better meaning the guys that run these companies are going to have to really put their their skills to work to um to maybe keep and secure new contracts it might be opportunity also right who knows maybe the u.s dollar will um the u.s dollar rate might be higher and that might be better for the business because it exists out here but they're getting paid in foreign currency and you know you might be able to offer these workers actually better and that

might mean that jamaica might become cheaper than maybe a couple of other markets. But the truth is, it's almost every country in the world getting hit by this thing. it's a matter of who's more competent, who has the better pricing, and who can open up first. But who's going to bell the cat and tell the public that we actually need to open up if we want to survive?

You didn't tell us that, sir. Yeah. I do to the people who listen here, but we're known for crazy ideas on this. I am truly scared. So DTL. So DTL, I think we'll do well if they

can capitalize on the coming downturn or the coming possible contraction or let's hope, I suppose we hit the magic button. The airlines get it right. The travel industry as a whole gets it right. The hospitality industry as a whole gets it right. The marketing around it is done right.

And Americans especially start to travel again. People are like, yo, we're over it. You know, socially distance from the beach, you know um that sort of thing i it just some i don't know it's just some something but something to get the traveling let's say they start traveling let's say the influencers start showing that oh my god i can go to negril for 8.99 and two whatever and it take off Because you're going to have to shift the target market, right?

If, as I said earlier, 10% of the tourism product really comes from Jamaicans, and the other 90% comes from the people who visit, right? With America making up the land share, I think maybe over the next few years, we might have to have some of our tourism companies focus more on local, bring that 10% up. Yep. Maybe double it. Maybe remind Jamaicans that is our country.

And you can go on the grill just as much as Jan. You can enjoy Blue Hole. You can go and swim with the dolphins at Chukka. Or you can stay home if you can't afford it. Or if you can buy some

less expensive food from Derry traders you know the direct line i i have a lot of confidence in a company that has always had to struggle for every dollar and derrick cuttrell has shown himself at least to me to be a a true hustler yeah the man said, every year that he's able, he's going to buy a company. Looking out to see what I'm buying now because this might be a very attractive time for him. If he has the money. Yeah, but I

suspect he can find the money. Hell, him have Woodcats, him have CFF. He had to sell some of CFF the day you know remember that yeah so i'm not sure how that going but maybe maybe himself forget the cash for the song i think he's supposed to get the cash to pay off some of that thing there

yeah i have to recheck it but in my mind there was a need why they sold piece of detail see a piece of cff wow well i mean you know business but that's the point of having the asset anyway to put it to use yeah what do you mean randy sell our stuff to make money you sure people don't talk about it like it's okay let me say this you know let me let me let me say the thing that i the mess let me put the mess around what i want to put out there which is to the people listening who might have this question you know yo what do i do because i lose my job now i have maybe 800 000 left on the car for payoff and i don't have i don't have a job so you know i've had a bit of savings i have 600 000 savings but i have maybe 2 million in ncb shares because i did buy

the ncb shares from a long time i forget about them check them with you and i bought them at 60 and even though ncb drop it's still a one for this one. So still have some money. But I don't want to sell NCB shares. It is perfectly okay to be in a bad situation and sell your shares to handle the situation. Yep. That is not their far. Yeah, the asset has no use unless you are utilizing it.

People often forget that. It's like having a bank account To be honest Say you spend only $100,000 a month But you have a running balance And your bank account Every month Your bank balance is $2,000,000

But you only spend $100,000 a month What are the next 1.9 doing for you? What is it really doing for you? That money makes no sense for you at all Better find something to spend it or invest it so as randy says money can only be invested yep literally the only thing you can do with it if you buy a new car you invest it if you buy a bread you invest it yep so someone you don't have anybody on your speed exactly you can't just sit down and look on it um you have to use it asset have to be used so i can

not i can't knock him if that's what i'm doing if anybody listening wondering about that was in that situation there's absolutely nothing wrong with doing that yeah if you have a if you're facing a situation and boy i'm going to sell the stocks to handle it want to sell the stocks and start over. Yep. Without a life, don't reach. Yeah, exactly. Go again? Without a life, don't reach and dead. Don't reach 100%.

You can't spend it when you're dead. Yep. Cannot spend it when you're dead. And as you're working on an inheritance, I would say it makes sense to sell those stocks yeah yeah yeah it depends so detail i would put in the bag i say i personally have a lot of faith yeah man yeah i think they'll be doing they'll be doing all right at least all right if anything they'll be doing better they'll be doing alright at least alright if anything they'll be doing better they'll be doing well

unlike our next pick why? ECL ECL results just come out the results before the corona problem yeah and how were they doing? they were doing well

but they did mention happily I got that edit in the report that oh don't bring up that report right now express creator eliminated so february 29 2020 results yeah February 29, 2020 results. Yeah.

There were, there were, so EPS, EPS was one cent less. Well, the EPS for the Q3, for the Q3 this, Q3 just gone, was 0.068. And the corresponding one from the year before was 0.068 and the corresponding from the year before was 0.069. How much did that work out to? 0.068 you said? It's from

0.069 to 0.068. This is ending in February. So you know, March was the problem of the corona for really, for Jamaica. Hmm. Yeah.

But they still fell. Mm-hmm. Yeah. Well, I believe that they would have started seeing maybe some of the issues in flying from before,

from maybe... Yes, exactly that. So they came that close on the back of well there's already some contractual in the market yeah and i think they were topping out their earnings and unless they were going to start doing something more major in the airport to attract more people to spend oh yeah definitely yeah man and you heard him start talking about where they they might be expanding

beyond just Jamaica or beyond just that one airport. They're looking into expansion. So you know, boy, the money here kind of stuck. That's what I thought. Where would they expand? I have to check those reports

if they did mention that they were going to expand. But two airports in Jamaica. Two major airports in Jamaica. Exactly. And and common sense you can link it up so the same people yeah montego bay airport is controlled by a mexican company and that same company now controls kingston yeah international airport so it makes sense since they've already have a relationship they're already established here i would think they have a good foothold now that there's a guarantee but yeah i think they have a good football but on the flip side their revenue is very much a function of um arrivals and departures

people walking through that place exactly and tourism is going to feel it is feeling it and will continue to feel it. Moby is the biggest airport in Jamaica in terms of arrivals and departures. And so that's definitely feeling it. Kingston, they might have to jump to Kingston just to save them life. It'll be a lifeline. They might have to speed that up.

But even now, there's certain problems with that. Money not flowing through Kingston either. It's an airport, right? Well, yeah, but people still fly. money not flowing to Kingstown either it's an airport right now well yeah but people still fly once flights open up oh yeah right man no no no and the question is when flights open back up

and how long it will take them to open up and you're going to need people it's not only just cool Jamaica accepting people now other countries have also we're sending people abroad well yeah and it has been some in some which is probably why i said the kingston makes sense have two locations more than just the one to at least keep offset the loss in one area. That's funny.

That's a sensible use of diversification. Yes, it is. Yes, it is. Diversification of location. Of course, to my base, too, because I believe that the types of flights from Kingston would obviously be different from the types of flights from Moby. Yeah, Moby would have heavy um yeah mubi would have heavy

tourism flights while kingston would have tourists heavy tourism to what also a lot of local linked meaning citizens and um business and so on yeah so conferences yeah that sort of thing i like to hold out hope but on a straight line basis, obviously ECL might see some contraction too. But on the flip side, they pay dividends and they pay dividends in US dollars. And they pay dividends in US dollars in a country where the US dollar rate might be seeing some pressure. And they pay dividends in a country where the biggest dividend payers are currently prohibited from paying dividends so there are many people out there seeking dividends and they pay dividends from St. Lucia

where we don't get taxed when you receive those dividends yeah does the economy just need to get money to pay dividends so yeah they do need cash to pay those so yeah so yeah they're cash they need to make some money if you're looking if you're looking for that if you're actually looking out for your wealth then a time will a time comes where they can

make money again might be a good opportunity yeah it's always about the timing timing yeah yeah the timing and their little indicators you can look for them that won't show you common sense can show you them though you know them that i but yeah indicators you can look for now they're looking for them for ecl uh because i think i still own some ecl shares i don't anymore i made a lot of money on that stuff in the year it came in the year it was anymore i made a lot of money on that stuff in the year it came in the year it was i period over and over again people just would not get it that boy this this company is worth more than whatever you see right now and they kept results drop price up buy sell and it's right down to that four dollar line over and over again so There you go. Happy times.

Happy times. The same thing. I sold the majority of my position, but I know I kept a little. I believe I kept a little. I'm not seeing it on my dashboard. But I do know that I've seen dividends from them. That is strange. I should check that

or maybe it was that they had a I think their last dividend payment had like a record date far from the payment date and in between the two of them they have sold, that must be it anyway that is the dividend report today that is the dividend report today. That is the dividend report from Randy.

I think, yeah, I think the case is clear for them. If they either get into new countries or new locations, we'll say new locations. And I think they have a lot of experience with Starbucks now, which would be one of their flagship brands. And I think they can very quickly make the case for Starbucks in Norman Manning International Airport. That would be nice.

And it might help a little. But how much can it help? We don't guess. We're going to check to see how much it actually helps and estimate yeah so i mean it's so much grub so used to just saying that and people get it and i hope they get it uh yeah ecl what's next oh boy everything fresh oh why is that rough run it was rough before it was rough on them now and you know they just sold the thing there the place they had bought i mean it's been

rough on them before corona right i mentioned that it's been rough on them and then now this could happen to them so boy hotels fall off which was i thought of them as the thing the keep cpj trying to be okay you want to be you want to be that cpj level it just wasn't happening and then there are competitors of cpj well obviously a smaller competitor long before the corona thing I wondered something long before the corona thing I wondered this why did they buy that meat company if they were just going to shut it

yeah it was making losses for them I guess they really thought it would be profitable I don't know what happened there but expectation never you can't really tell here we are be profitable i don't know what happened there but expectation never you carry out and then here we are they didn't list too long ago and then now they sell it so you think them by with it that's crazy yeah but like it was a big deal and then the the bartending just locked i thought

they were maybe going to you know like let's say to lock it down and move the assets in or whatever. I don't get it. I was actually confused by that. And they have been going through it from them list. Have they ever been above their listing price? Not sure now. Whatever it is, I know

they're going through and have been going through hell. You know, when I saw it at first i was hoping that they had bought sweet river yeah but most of them are like that nope everything fresh look like everything's still not fresh and then they'll look like this is gonna help moreover most of what themselves come straight from tourism like a significant percentage i believe ncb had a an analysis the other day i think day that covered them where they spoke. I don't know what the percentage was from it, but it is huge, right?

And the fallout in tourism is set to impact them heavily. And they have heavy, I think they sell chicken too. I think everybody sells chicken. And as you hear, Jamaica have a glut on chicken and a block on imports and I believe they used to import I think they import everything they sell I could be wrong but I think they import everything they sell so them getting beaten on both sides

I think the meat processing was imported because the meat processing was an attempt to control the vertical get them prices low but boy you know where you work up for them was an attempt to control the vertical. Get them prices low. Boy, I know where you work up for it. There's a loop article on there.

The company said steps are being taken to mitigate these effects as the situation develops, including repositioning products for more retail sales to the local market. So CPJ, box Deal type of thing. I haven't seen how you eat everything fresh Box Deal though. Maybe it's out there. But CPJ just moved faster than marketing. I would say CPJ is on top of the marketing a lot more.

Moving fast. And of course, CPJ have more resources and seem to be more in tune with it. Well, I mean, everything first still strikes me as a very much a family company yeah not that family companies are inherently a bad thing yeah no it seems like it was it's actually i never really expect i often hear boy anybody that's how a company to list or company at that size and they're not ready for the market i don't agree with that type of talk but boy no it's he it's not what we're used to i guess i'll say that that's that's good that's good that's really there definitely but then here we are right

we're going to face it anyway imagine what if what are we going through if they were facing it without the market behind them if they never get that nice injection of cash. Yep. Rough money. Really rough on them. Next up, we have Elite. Elite closed this week at $3.70, I think. $3.70.

And Elite has been down for a little while now. In fact, they started the year at $4.99. They started the year at $4.99. They're ending the year. Sorry, they're ending the year.

They're currently ending April because at the start of May, Friday, May 1, they're at $3.55. Wow. $3.55 versus a $4.99 start. That can be scary. Especially if you have heavy money in there. You lose almost 30% of your money.

29% of your money gone. If you're sitting in this one. And I don't see them necessarily doing I don't see something great going on for them right now remember they just opened a new place too and that place I had I would say not enough time to get

much of a following and I don't think anywhere again so elective procedures you see like the public public health system they're telling they're not prioritizing elective procedures right now and

so the tests like I come in for a diagnostic test on something that won't necessarily the government wouldn't take it up right now when in these COVID times has something to be a big deal. And I see where AD2 get up and would be the leader in that space. But I think maybe a doctor or somebody who works closely with them can give me clarification on what's happening in terms of the market for them right now well at the end of the day i mean i would have a doctor online so we we have to just work with what it's have what we have in front of us

which is if the company i mean the company where made the money, they made most of the money from that, from the, from the x-rays, not just x-rays. Yeah. But it's a matter of which ones, like what, what the actual, what the actual scans and procedures that they are and how much it impacts their revenue. Yeah. And the COVID test is a swap not not not a i'm not going to see where they get increased business from this but they might what could happen is you have to think of the whole universe you know yeah so if

if the hospital is not seeing xyz we're not doing these things right now because we're saving space and handling our covid things blah blah, then you might get shuttled too. That's what I thought that doctor's offices are complaining about. So I have a good amount of doctor friends that they complain that they go into their private practices, private practice work, and one or two people come for the day, versus when they use their full house.

I've read that. I've read that for more than just Jamaica, so that's interesting. So, like, I get people just not going to the town. Yeah, it's like, I'm only risking this for COVID. I'm not leaving that. I'm not bothering myself with this, and it's COVID I have.

Yeah, that's a good point, you know. That's a very, very good point. Their Ochi location that they just opened up, lots of offices were there. They put lots of offices there so they can have... Basically, our private practice is running alongside that thing there, alongside the Black Massey Center. And I think if this is across the board,

then those offices were built, and then they might not be seeing the business they thought they would have seen coming because of what's happening right now hmm so there might be a fall off in their overall business I mean people sick them sick but I don't know

yeah yeah and as it was they were already falling down profit was already low yeah phenomenon in him there open a new location and then boom yeah which which happens because sometimes the expenses go up. My issue with them is at IPO, there was a profit they were making when the IPO is about the same now

after all those new businesses, they should be seen. So yeah. But they're making hella revenue more. Yep. Wow, a whole heap more revenue. They had 117 million last year and and just for the quarter and for the six months at 235.9 million versus last year same

six months the year before same six months december 31st 2019 21.1 million profit net profit versus 6.7 million so that hey that's great that's um i just eyeballing what it looked like also an increase not just in net profit but also net profit margin it would seem so the the last quarter results i'll get the six months results look at the quarter itself man not the six quarter itself has a nice jumping income um but it it has a fall in net profit yeah man that's what i's what I remember. Yeah. People were hoping and praying on that. I remember at the early

in-couple, I mentioned that Elite was going to steal Philip's choice because he was an Elite fan. So I told you, I'll steal his,

I'll answer for him and say Elite. And then this went on. Yeah. Yeah. Boy. But bigger feeling yeah yeah boy

but to be fair elites most of elites money comes from the local market I think once people start going out and about again a health based industry I think they'll pick up

I hesitate to say that they're corona or or um recession proof but on the list of businesses on the exchange that might be recession or corona proof elite my i would say elite is there in the medical industry they can pivot that way and once you're sick you'll you'll do what you need to or you'll try to yeah and i believe they might have some revenue i think they might get some work from the government you know not and i think i heard that before corona was that i think that they might get work from the government like the government does something oh yeah man so the government was saying they was pulling in under people that do similar businesses and their

partner with them. It wasn't because of COVID. But... Yeah, man, but when that list came I didn't see it on it. So... The competitors were there. They were not. Damn. Well...

Yeah. I don't own any shares but you know it's not a bad thing when a company goes through trouble as we know because it's not about the trouble you go through it's how you rise out of it you can drop a buffet code everybody drop in which is what it's going to be fearful

is everybody fearful now on the genocidal airplane everybody afraid no it's funny you know they'll be fearful with him but they won't be fearful against him exactly right even though him say no that he classifies himself as a dinosaur and i honestly think that the industry not industry not just the industry and i'm talking finance in general worldwide now is going through a generational shift and a shift in thought and thinking so you see like the difference between a buffett's generation and thinking and a

bill ackman's generation and thinking and um bill ackman bill a atman it's so funny because i didn't rate bill atman before yeah and and his thinking i think listening to his thinking and reading some of some of his work has has pushed me to like i respect what he does even though i don't like it i don't like because i don't like the quant thing but you can't knock results at the end of the day i measure the effectiveness of an investor based on the results that they pull and you cannot knock his results by him adhering to some numbers that him read on what i mean but him and buffett him and buffett not really friends either isn't that funny oh wait wait i was making a joke on certain people but that that's fine. I'm ignoring that. I'm ignoring that.

I don't think they get along very well. I know Charlie Munger don't really like him. And I've heard Ackman make some comments that indicate that he's not really the hugest fan of Buffett. But he himself has a call Buffett the greatest investor ever. Yeah. I mean, look at the size of Berkshire now versus when Buffett just started. Yeah. And I heard him do a ratted speech at the annual meeting yesterday.

As in, sit down and talk for five hours straight about the whole thing, the company and the economy are not better against America. I haven't even gone through it. When the notes come out, you know that though. Yeah, apparently. I mean, I think it's the end of his generation. I think it's the end of his time.

That's what I'm saying. It's kind of time for him. It's obviously time for him to hand over i mean him and munga couldn't do it together because them couldn't be in the same location oh and he's deep in the um coronavirus susceptible age as richard sees i'm surprised that he was the one who went out but then again munga is older too boy i'm not too worried about him because i i am sure that both of them have the greatest health care available in the entire world yeah exactly and coke

and bill atman not doing bad himself he's actually married to a doctor bill atman's wife is amazing she's a doctor I didn't even know he was his wife I knew about his wife before I really dug into him I knew about him but I never knew about the link between the two of them meaning I don't know if you ever watch his series on Netflix I think it's called Abstract

there's this amazing typical TV but she's obviously stunningly beautiful Israeli doctor who I think works with MIT and runs a special lab at MIT and that's Bill Ackman's wife

yeah I guess that's what you do when you're a billionaire instructively it's also his second wife yeah they're just a child i know that because i listened to a podcast that he was on recently i'll share that podcast in the show notes anybody interested should listen to it it's um it can be complex it can have a lot of things that are outside of jamaica that but it occurs to me that I don't

hear anybody within Jamaica talking about the things he's talking about doing the things he's talking about in a Jamaican way in a Jamaican context because the things he's talking about do have parallels in Jamaica but I've also realized that it means it's just up to us to do it you know the usual

yeah there will always be more coming we'll keep it exciting and it's the great nothing nothing nothing builds good things like adversity maybe they like also maybe they like also in the money talk i don't know anyway on to the next one next one being uh epley limited A company I still own 100 shares of. Really? Yeah.

I still own... They email their shareholders so I don't want to start with any emails from them. They don't email me. The ratings, dude. I,

I suspect. You know, you know, no house emails me. Who? Literally, literally no,

no broker emails me. Oh even the bro even the brokers that i'm that i obviously have accounts and interact with none of them email me i don't get sometimes i sign up for the stuff i don't get them no not anymore oh no no that's right i do still get vms um market active investor yeah yeah i do pay attention to that big up vm for that vm wealth they don't active investor um thing yes uh did you listen to that episode that i put out that you weren't on the one of the phone calls calls? No, I didn't finish it. You should listen to it. The end especially is really, really good.

There's a gentleman on it named Diane. D-A-Y-A-N. Listen to it. Listen to it and you'll understand what I told you to go listen to it. But he talks about VM a lot. And asks why nobody on our show show or none of us

have ever spoken about vm on the show oh yeah i haven't spoken over yet yeah i i think you have but not in the way that you wanted to but i'm gonna press my little bit and press him on why i'm so and talking then you start to realize why he was saying what he was saying it'll be good i admit okay i enjoyed that conversation a lot. I think you will also. In editing, when I listen to it, I start to smile because you can hear him say, get it.

Like, know him, understand. Yeah. Big him up. I won't give him proper big up, but I do remember him Twitter handle. But I will do the necessary work. Let's hope I said his name right. I did say his name correct,

and that is actually part of the conversation. It's at DianeVIves, and on Twitter it's at Diane876. D-A-Y-A-N-8-7-6. Yeah. It's a good conversation big him up for that and you'll understand why but yeah epley the old money run by the smart money the smart money let's call him that the smart money you guys who not a lot of people know what Epley actually does. What does Epley actually do?

Let me see what Epley states that they do. Yeah. They do manage a company that we spoke of last episode. CPFV. Yes, the Caribbean Property Fund value. Epley Caribbean Property Fund value. cf cpfv yes the caribbean property fund value epic caribbean property fund value it's about warning brother yeah that's that's yeah yeah um as of the last financials audited financial american the 31st of december 2019 did they have anything fresher than that?

As of then, they are, they describe themselves as a, use their words, they're incorporated in Jamaica,

they're the first, well, this is good, they're the first company to graduate from the junior market to the main market they did that in 2018 and the principal activity, what they do is they invest in credit products including insurance, premium loan and lease financing yeah and they own Painter

as a subsidiary and Epley Fund Managers Limited and both of those have credit products and management services I think the latter one is the one that manages the CPFV and their farmer group so that's what Epley is and I call them the smart money yeah the guys who have been doing this for a time and we'll be doing it for a long time uh i i didn't talk much about them yeah me neither i i did mention before that um way back when i think one of the rain episodes where i was saying that the fund management money would be good money for them because we knew money for them and they it would be new money for them.

And they had seen some uptick in the business before the fund management thing was going on. So the CPFV money would be good for them because it's a percentage of the assets, net assets, I think, that they get from as a payment. Which is the usual fund management yeah yeah yeah it's usually based on either growth they probably have a they probably have a growth rider in there also so if you grow it by x amount you get x boost it's all in prospectus so i can't remember exactly right

now yeah that's exactly where it is anybody wants more details and i can go and check out the cpfv prospectus and i believe also some of that early boost you might have mentioned would have come from the fact that they would have sold property to cpfv so they would have booked the gain on that i assume if they own the property yeah oh so another day yeah so you're baking some profit for yourself a smart business. That means the profit was growing, as you said, and up to 2019, they have growth in profit also. Of course, I always look on the profit and you can check out other statements.

I mean, the asset base obviously will grow. Their liabilities have grown, but not that much. From 2.5 to 2.9 billion. that much from 2.5 to 2.9 billion jmd they're borrowing so it's boring but that's cool i figured if they use it like dry powder and i didn't get to go too deep in them i just think of them as the old money smart money and obviously they are definitely a long-term sort of thing even though they have provided short-term gains sometimes. And they do pay a dividend.

And I suspect that they will continue to pay a dividend. And things are usually good once you can control a fund. The company that controls a fund is always in a great place. And OIS is a nice little buffer. Interestingly, our next in line

has that same thing. has that same thing. First Rock. Has that same thing, you know? Next in line. Yes. Yeah, what I said, guys. So First Rock Capital Holdings Limited is a real estate and private equity. Do they say private equity anymore?

Or is it just First Rock Capital Holdings is just real estate? They had a specific term they used in the prospectus. I'm not sure. I don't think they did do private equity anymore or is it just first of all capital holdings is just real estate they had a specific term they used in the prospectus i'm not sure i know that the thing they did do private equity recently dollar financial man project that we own got into but we can own let me find it i know they bought Dollar Financial yeah the majority of the holders in Dollar Financial now that's good Dollar Financial wasn't that at't that at SSL? Yes.

I want to see that notice. I just want to be sure that I'm taking it now. I want to see the exact wording. In the meantime, I'll tell you first what themselves says that they do. If anybody wants to know what I do here

all I'm doing is I'm checking the prospectus because I want to use their actual wording so that you have an idea as they have put it forward of what exactly it is that they do and it's all over but there's a specific bit I just want to be

clear on and read from there so they're a St. Lucia company clear on and read from there. So, they're a St. Lucia company. So, you know, tax benefits. They're understated that in the prospectus. That's why they did it.

They're very smart with tax management with all of their subsidiaries. It has a couple of subsidiaries. One in the USA, one in Latin America, and another in Cayman. And, of course, the group, it in Latin America, and another in Cayman. And of course, the group, it's First Rock Capital Holdings Limited that exists in St. Lucia, as I said. So the main activities of the company are holding investments and controlling the operations of its subsidiaries.

The company's core focus is real estate and private equity investments. And the company's primary aim is to provide the shareholders with a tax-efficient vehicle, offering an enhanced level of income above average dividend yield and preservation of capital through the diversification of assets. It sounds so nice. Average dividend yield last year, 2019, the biggest dividend that was paid based on the average prices of all the shares across the exchange in 2019, the biggest dividend would have been paid out, if you held it for the whole year, would have been Scotia, which had, I think, a dividend yield based on the average price, and a dividend yield of about 8 points up percent.

So you can use that to judge accordingly. If that's the biggest, you can even figure out what average yield is an average might be a lot much lower i can't bother work out what average is this right i was about to say because if the average is necessary you wouldn't mark the average based on the biggest yeah no i wanted people to know what the top is so you have an idea what to look at and average is probably like three or four percent if not two percent yeah so if if if they i mean they're trying to beat two percent in terms of yield and my personal view is dividends are for people who have a lot of money or a lot of patience so if these guys are trying to do what they're trying to do is they're trying to disrupt

the dividend game which is an entire crowd in and of itself that's not a huge subset of investing yes big up smithy royal um so like oh a lot of a lot of people yeah everybody here is long term that's the third thing so you hear two d's and one l dividend diversification and long term um but the reality of investing in equity markets equity market spans everything not just long term short term all sorts of terms right and there are all sorts of strategies all sorts of ways to do it the idea is to find the one that works best for you and works best based on the market that you are presenting or markets um so there is an entire dividend investing strategy and to this day i've not

seen anybody do it proper publicly hey guys this is a dividend port that's a free idea throwing out there that maybe people should do a nice dividend portfolio for people who might want dividend investing and an open one you know where you open it up and say, hey guys, I think this will get you 4% a year in cash, you know, in four tranches based on a holding XYZ. I mean, I can do it, I probably will do it, but I'd like if somebody else did it. I think it'd be good. I haven't heard anybody do that.

So I think what First Rock is saying is that they intend to provide a level of stability in terms of your capital and a level of return that you'll have the same stability of capital as a dividend investor that's what they're aiming for but higher returns than a typical dividend investor and of course if you're a dividend investor you're holding for the long term like value investors do you would then benefit obviously from greater dividend yields over time. And First Rock has their, my personal view is that they're baked in the profit for themselves

for the next two years. I mean, they're projected a rights issue this year, this financial year. I don't know if it happened again with the protections that might be needed for the exchange rate, but even if it doesn't, or if it happens,

that is an opportunity and they might be seen as stable so there might be an option for a lot of people um and they also i think baking their profit because they're in real estate and they're going to get gains from the revaluation of real estate and the fact that they're in property gasp brandy what so the fact that they're in property development means that they're also baking in an increase in the value of their property because and i'm basing that on the fact that if you buy a piece of land in norbrook it's worth 40 million dollars nothing on it right and if you take money that you've gotten from the market and develop that piece of land and put a nice set of apartments on there

and then ask the valuators to come back and, hey, re-valid this land for me again, it's going to be valid a lot more than 40 million. And if you have then, and the fact that you're using cash to do it and it's working and building up something it probably just hits a balance sheet so it doesn't hit the pnl a lot of the spend to to get the properties going properly or maybe it does based on how you do it maybe you do

through friend companies or whatever and they did say that they plan to use the network which is smart and so then a 40 million dollar piece of land in norbrook is now worth 400 million because it has this wonderful thing on it. And you own units in that thing. This is all an example, guys. I'm just using a regular example. I don't know if they actually have anything on Norbrook. So you own units in the place that you built.

The value of it has gone up. And the company itself, First Rock Capital Holdings, has said that it is in the business of property holding and development. said that it is in the bill business of property holding and development so it's it um it it our property holding at least asset holding and they are going to gain from the revaluation of those properties so you've kind of made it for yourself it's like yo i make money from black cars and i buy white cars for cheap and And I also am in the business of spraying cars. So it's going to work. They're going to have high profits. But it's going to be interesting to see how the industry responds

to what they usually term paper profits. Because that's where a lot of the profits are going to come. You know me already. Profit is profit. Threaten earnings and we'll eat it some point in the future but i don't know if first rock is i i'm very interested in seeing how the industry is going to respond to it and then the next thing i'm thinking about is this is one company that is not directly tourism related but it might be affected by corona yeah yeah because the general feel of real estate,

and they do luxury apartments, not just in Jamaica. So they diversify themselves by locations. And they have a nice diversification strategy. You can read it in their prospectus. But they are now facing a world that is not the same as it was six months ago where people i might just not want to buy that luxury apartment that expensive apartment no maybe i want to just keep my cash and airbnb is still dead right now right now at least yeah first rock might be going through it but they also still have as long as them can get those construction projects going and get that those real estate

bits of real estate um revalued they'll be fine and also they pay so the point that we led into this with where we said that it pays really well to control a fund oh yes yeah so you could look at first right capital holdings as a fund and the management company is paid based upon the performance of the asset base and the growth of the profit also we know if they're baking in profit and they're going to make the assets look better which they should because they're doing a good job there. We know if they're baking in profit and they're going to make the assets look better, which they should because they're doing a good job there, then they're baking in a payment for themselves.

So it pays really well for them to do what they say they're going to do. But we don't gain from that because we, the shareholders, would only own the fund. Funding air quotes. Yeah. So like like it love it or not so sure or hate it first off

I like it but I'm just looking at what they're going to do and how they're going to do I'm not jumping to invest in them right now interestingly they paid a dividend shortly after the market and people use it as a oh look look look what happened despite not despite what um we also talked about this thing and people were, because it fell shortly after listing,

the price. Some people were saying, some people were saying the same thing there because the dividend was a marker of their success or something. Really? Some people, yeah. Well, I guess, I mean, some people see the market differently. So I mean some people to the market differently so I mean what did the IP what was the price I mean I think oh I thought yeah I thought yeah just a topic I thought you want our 1667 1667 that sounds that's something there that sounds familiar right yeah i have those two

numbers ahead i think it's 1667 they have yet to approach that so if you put money in first you are down heavily right now first of all jmd at least is down if it's 1667 then Then, oh, we're down. Wow, wow, wow, wow. 30 odd percent, 34%. Can you imagine you put a million dollars in there, you only have 659,000 left, and it's not even two months yet. But I think what is clear, and i would have hoped that i think a lot of people would have heard this and i heard a lot of people saying it everybody i asked about it who

was asking me about it i asked them what the term what the time was that they're investing for and all of them long term until you fall on index weird yes but if you really truly mean long term then you're fine yep in fact if you really truly mean long-term, then you're fine. In fact, if you really truly mean long-term, it's an opportunity to buy more at $11. It's a great opportunity to buy more. And people have been buying and selling, obviously. There's not much I can say. It's going to be very interesting to see what happens here because I don't know how well those those those apartments I'm just thinking of Kingston here and Jamaica

really because I weren't just in Kingston I have a place in Ochi and so on but I just wondering how how well the real estate market will do I am now changing a lot of my views about that i thought it could weather the storm but no because it's something it's something he might be here for longer than longer than we thought for a long time yeah yeah i hope i'm wrong on that i hope we're wrong on that i really hope we're wrong on that but if really hope we're wrong on that. But if the storm is here for longer, then I think you might see a fallout in real estate. And we also have to remember that real estate is just like any other equity class or anything else in the equity class

where you have the influence that comes from people fearing that it's going to fall out. So you might see prices going down. And we know for a fact like the people who, if you paid your rent just off Airbnb. Or just the rent money you're collecting. Yeah. I mean, if you have a place

and you're renting it to a Jamaican, you're renting it to a Jamaican, as long as them dollars, them jawing can keep up the payments, you know, everything is still good I don't know there's not much else I can say I guess this is done I I won't go into too much though since I kind of feel that the vibe just kind of off for for for first of all don't really have anything in it for anybody who wants any money very quickly i think that was clear from the ipo and i think

it remains clear now that the dealing i'm excited that they can bring disruption to the real estate class but still you're you're disrupting a lower slower class yep you know it's still disruption i like it but it's still a lower slower class so good luck to them as a business i don't think i think they'll weather the storm really lasts very very long agreed and not much there fast rich the lighting company the lighting company. The lighting company. But, first you just came to mind that they had some problems with the inventory turnover and all that.

The overstocking. They fixed that. So they went into manufacturing on PVC pipes. We haven't really seen where that has been doing well for them. Have they shown the full of that, have they shown the full of that,

of the effect of that buy-in? The new factory? Full effect, meaning what? Yeah. Meaning, I remember at one point they were teasing a new factory. Are they money? I'm not sure if I know what you're talking about.

Teasing a new factory or just teasing a manufacturing line. I don't know about... I was under the impression that the manufacturing line was a new factory. Isn't that what they were teasing? I think they were... They never tell us where it was first, where it was coming. Oh, yeah, man. They did tell us it was PVC they're doing. where it was first where it was coming oh yeah man they didn't tell us it was pvc they're doing and it came online but yeah man there are new warehouse facility in november 2019

but you don't sound very hopeful they're they are in an industry where they make money from the day-to-day just a day-to-day life people need electrical things but obviously they make a lot of money also from the construction industry yes this thing that proven gk and fosterage in on the warehouse do you remember that spoke about that yes yes but for the PVC and I see where it's been great for them yet yeah profit revenue up about 90 mil and this is the last thing last financials on the three months September 2019 revenue was up about 90 mil 440 from 353 profit was one was 11 mil from 10 mil oh i said hold up hold them hold them i'm asking them cash flow because maybe you can see something

big there from that that's why i wanted to know if you're seeing the full effect of the from that's how I wanted to know if you're seeing a full effect of the of the new the new line by 70 mil but when I really see no no old profound and I haven't seen when is there what is our financial year I think would do some annual we do some on your results are the symbol if you don't get them already actually no it's not at least if if they are, it's not in the annual report section of JSC. It's on the financial statements there. It's on the report. See there.

Oh, the report. Sorry, I was looking at the annual report because I wanted to get. Yeah, reach more wealth. Yeah. I'd need MD&A. Yeah, you know that. Yeah. Yeah.

Already did up 400 million a year and 10 million increase in profit oh they did include MD&A

yes wow I mean they definitely had something to say for the first quarter wow

and they have heavy receivers I know they also did something with the PS button if that was continued they're doing a lighting program I believe yeah the switch well. And I've, I've had receivers. I know they also did something with the PS button. If that was continued, they're doing a lighting program,

I believe. Yeah. I had to switch over from the old kind of bulbs to the new ones. Yeah. But I mean, I, I less than 10% increase in net profit revenue. I,

I Corona really throw things in. We really, it's like a wait and see for this one. Unless I want to do that, which i don't want to yeah if you can dig some more just based off what's in my head ain't that great and their current price is 389 and a pe ratio of 19.8 times. I wouldn't put my money in there personally, but I can understand how somebody who has a different timeline and is willing to maybe go through a couple of dips in price and average down might be interested in it.

That's a light overview. I'll do that. might be interested in it. Yeah. Yeah. That's a light overview. I'll do that. And I will do this last one and I'm going to call time on this episode because I don't want it to go too long. And then who knows? And plus, honestly, I'm just really tired.

I need to get some rest myself. And I don't want it. Strangely, I don't always want to look at stocks, believe it or not. I guess I just don't want it for a strange I don't always want to look at stocks believe it or not I guess that just don't want to look at them no but we'll end with a one that I think everybody will love Fontana Fontana I love Fontana one of my girls that acts everybody that's we were talking about it as trying to show an

example of how perception might influence companies and I asked the entire room you know how you feel about Fontana everybody go oh I love Fontana I think it was about eight dollars at that time yeah it was back when we could go outside uh it's currently five dollars 13 per share a p.e ratio of 18.6 times um however i think i've heard a lot of time i've heard a lot of talk about crowds in fontana over the last few months yeah you know i think i think they're one of the companies that might be benefiting very directly very very directly from um from corona but my question is so so the idea that the pharmacy sales and the supermarket type of thing they do my bits in the increase but okay yeah pharmacy prescriptions and yeah you

think prescriptions anything I don't prescriptions is a huge part of this German bar is he expected great increase because of corona from prescription items ah hmm especially the doctors prescribing this because we've been out of office more or does not be that i think the heavy inflow yeah but the place pack if the place if everybody tells me say fontana pack fontana pack right yeah what would you say there was a super market thing There was supermarketing going on. And every supermarket was packed. Is that the pharmacy too? Is that the pharmacy packed? I don't know. I think the pharmacies may have been packed.

I've spoken to pharmacists and I've heard that they have had, and not just for Fontana, I just think in general there has been a lot more prescriptions being filled. I know Francis is complaining because they're essential workers now, so they have to be going out safely. And people aren't treating them as if they're essential workers.

What do you mean? So like, they can't keep the skip the line before you go back to work after we get through on that it's like go to the tax office go pay go pay something

and you have farmers and a lot of earners so you get you get through the call is unclear man sorry can I get a skip I can't get a skip

Yeah and then the security send you out And call the police The security not send you out The security risk him life Wait hold on That's not funny I'm not going to make any more Corona jokes That's not funny. I'm not going to make any more Corona jokes.

Yeah, but I can understand how frustrating that must be, but I'm hoping, I'm hoping, I'm hoping that they're seeing an uptick in business. Otherwise, and the truth is, everybody else in retail kind of like, yeah? See, don't the mothers like, no, mothers who sell. Pat is cheaper than everybody else in retail kind of luck yeah see you don't the mothers like no mothers will sell Pat is cheaper than everybody else yeah but if they can if they if their revenues up you know the funny thing is I think what happens that I base a lot of the revenue up based on the things that people say on Twitter which tends to

be very Kingston leaning and then would obviously be very that one story leaning but we know fontana is not that's just how one story is the whole people locations five or six locations right yeah and it goes five or six locations locked down but even if five if four of them locked down are seen lesser sales but the big one is seeing more sales but the big one is seeing more sales that big one will really have to pump some heavy heavy you might have to carry everything everybody man every everybody right up to the six months december 31st 2.3 billion rev um they ended last year with with 3.7 billion rev so that's that's a nice increase they They're close to it. Because the second quarter alone,

which included Christmas, second quarter alone had 1.3 billion in revenue, which is almost half, well, not, no, no, which is a good chunk, not almost half, but a good chunk of what they did for the entire year last year and way ahead of what they had done in the same quarter. I think 300 odd million ahead of what had done in the same quarter. I think 300-odd million ahead of what they did in the same quarter.

Profit-wise, the six-month figure, they're at 213 million versus 174 at the same period last year. And when they had their year end last year, they were at 306 million. So that means in six months, they make more than two thirds of what they made in the entire year. Last year. Wow.

It could be set. It could be set for a great earning surprise. I think it could be set for earning surprise. I think I said it. I said, I said it on an early episode. I actually took a stake in them. I mean,

I baby stayed, but still. When they had fallen below $4, I thought this was good. But I still can't make them, in my mind, be worth more than $8. I can't say. It's a nice eight. Below $4.

Yeah. I'll take that 100%. But I think I'll do a bit more digging and find out where the crow is. Because I'm not necessarily convinced that pharmacy sales might... I don't know. What about crow not specifically will cause pharmacy sales to go up? Everybody worried about them asthma. Every cough get investigated and fixed quick and fast

um i don't know but i know it seemed to be very part because i've seen people saying boy and fontana pack all the time on social media in the groups people say i agree i see that idea people say yeah but again it's usually to be fair i'm thinking it's usually the one location, the Waterloo location, which does not help necessarily with the group. But if I'm being optimistic, if I'm hoping right, and they are actually seeing an uptick in business or have seen an uptick in business between December and now, then that would be fantastic. It would be good to have a win from them. I feel like you're going for a joke there. Are you fantastic? I thought you were going to do something with that.

I was hoping not. No, no corny jokes, no corny jokes. I think you wanted to get a corny joke. When? Since? Since you look a coughing spell a while ago. But, yeah, I like them, and i'm a shareholder now as i say below four dollars it was nice to me it's good to see them in profit it's good knowing that i can

jump out in profit and it's good knowing that they're probably going to have more good results to show the market and i think in a couple of months good results might be a very scarce thing or not scarce but but I think that it's celebrated. So, a company like Montana. And the fact that people want to think that, even me wanting that, they're getting a lot from this. So, them and MDS, everybody want them to be gaining from this so that they're going to pick. People have been telling me, MDS, MDS.

And I'm not sure I'm convinced yet. What was nice was to see Mds say that they they had to ration almost oh yes yeah so that's good yeah but that's good what about other items for themselves for that stay what about the other items man right now you can eat the food of corona eat the food yeah i agree but then the issue for me is maybe that one thing making up for the loss in other segments and you know that's all that is a good point that is a good point and i would expect that a shrewd business a shrewd set of business people i think it's a mother and son team um they would they would they would adjust margins in order to compensate for anything like that. I know they do supply the government for some things.

And at the end of the day, they are in the business of people who, of helping out people who are helping out people who are sick. And so there's some sort of stability in their overall universe because now Corona is more reasons for people to get sick i was thinking about that you know if people are realigning the way what they're looking for in companies so is it that people just not for everybody not for me even but like are people saying boy i'll move away from my company are they going to be buying companies that are more profitable in these times higher like to you know be okay with increased multiples on certain

things but before now i said i take a p a 20 on certain companies because it's probably the best i can find then i asked for a higher PE for it. You know, that type of thinking. Or boy, this company, it won't be up or down, but it will maintain its stability. Then maybe I might be willing to buy that house. I was thinking about stuff like that. Yeah.

I don't know. I don't know. I think it's just you alone on your talk. Literally, that's all the specificity, right? Yeah. It's just, I don't know. That sounds like just another version of my saying, a dividend portfolio. And I didn't even guide for you. And that's the sort of thing I want to say. That's the sort of thing that needs to come. Because as I said, there's no great company, there's no terrible company, there's just opportunities. I love when a company goes through hell because they need to win and fix it, then go into heaven.

And I met money after moving to heaven. And yeah, it's a different way of thinking. It's a completely different way of thinking, I realize. yeah it's it's a different way of thinking it's a completely different way I think in a realize Fontana I am one then I don't want to do it and get drained I think I'm going to wrap it here and I will see me too me too how do you do this this not eating people boy when you say I eat when the work done a lot of times i end up just eating one big meal a day at night

intermittent fasting is all right my body naturally love get fat easy I wish I had a couple weeks ago and Alex could see me now. Big up Alex Overlord. The man didn't even miss a beat. Corona come, the man just bring it online. Yep. Immediately. As I said, I feel bad. I think I'm going to hit that weight rack tomorrow.

At my yard. I will. The weight rack outside. I will the white rack outside I will I will I will I'll get a good night's sleep and I hope if people are listening to this

in the evening I hope you are then this will make sense good evening and I hope you get a good night's sleep also I'm going to wrap this part here and we'll maybe give you

our next part a little later on or maybe put something else in the middle and come back because there are a whole heap of companies on the exchange

I think you guys deserve us with a little bit more energy and not what we're dead for yeah not me devil I've been trying to keep it light but I'm sure you can hear it Because there are a whole heap of companies on the exchange. I think you guys deserve us with a little bit more energy. And not what we're dead for. Yeah, not me then, but I've been trying to keep it light. But I'm sure you can hear it at this point. Well, I hope you do. So we're going to call time on this one.

This has been Earnings Season. I'm Randy Rowe at RTU Rowe on Twitter. And I'm Danai after H Danai on Twitter. And it's been this week's Earnings earning season hope you guys enjoy alright guys listen guys that's what we listen to