Earnings Season - R and D Get Tangential

Episode Date: August 7, 2020

This week @HDanhai & @RTRowe talk about the market via QWI's holdings. Their latest results came out just as they started recording and so they dive in and follow the path it lays out. They start with the US market and then head right back home to the JSE. $VMIL.ja and $JP.ja come up along with a few others like $SEP.ja. @RTRowe finally speaks on $Key.ja including dropping a few predictions and they wrap up with their personal predictions for winning stocks this quarter.Come be entertained, informed and educated.Contact Us Here 📧 [e-mail]📱 www.twitter.com/Earnings_Season 🔗Links🔗 $Key.ja's Q1 2020 Results - https://bit.ly/3gHlvlyPJAM History - https://www.panjam.com/historyGK Digital Transformation Article - https://bit.ly/30C2KKu@TopStrikerShan's #TopStriker Workshop - https://bit.ly/TopStrikerShan@MsGillyJ's Excel Workshop - https://bit.ly/3gPfHXfSteven Whittingham's Promo - https://bit.ly/30J6KZB📢Shout Outs📢@Stubert_ja, @NigelClarkeJa, @TopStrikerShan, @RichardPandohie, @david_coolbreez, @MsGillyJ, @876Invest1  ★ Support this podcast ★

well oh good what they have a thing well the currency gains which I guess is from the USD yeah yeah man release it in July it's right it mm-hmm no no it yeah I think I think is I think it's um because i don't know i don't know how because i'm looking at it now i don't know how he thinks or how it is thought that the results will be looked at because is it like they're expecting it to be good because they're back in profit so people can ignore the nine-month figure? I think that's what we're thinking. Oh, we're back in profit.

We're on the right path now. It's a bit of a gamble. It's a sort of thing that John Jackson always does, in my view. I've always viewed him this way. Like to me, this is how he sees the signs that the market should see as, hey, they look like they're down on the nine month,

but look at what they're actually doing in the quarter. Even though they're down on the nine month, look at what they're actually doing in the quarter you know they're down on the nine month they're actually profitable in the quarter you know and and so over the next one two quarters um they're going to be set to to to grow and not not this this negative 461 million oh i mean it's possible because it's mostly you know the volatility on this and it's a small price stock so it can actually happen but Jesus yeah

but you know it goes sometime to where you're very often the first quarter of goodness you can't think they want you eight first quarter of goodness and people are like well for that stock I took three quarters of goodness for it to actually move. So three quarters of goodness and Ryan talking about it. And then we still had to wait. And the market is still so slow. It's still slow.

Yeah. It's slow because the core... Exactly. That's what I was about to say. the core of the market are the people who know and then the people who should know right and when the people who should know aren't um um quite as as gung-ho because i mean it's been a rough a rough year for many then the new people because the new people jumping into the into the market now are looking for the cues from the people already in the market right this is where we get the other thing there the other chasing yes yes yes so any point i knock because just i like i find this whole dynamic

hilarious you know because like so as i said the who should know, it's weird to me that the people who should know, this to me is a sign of the level where our market actually is. People usually talk about it and say, it's not at US market levels and what about. We're usually the ones that say, well, if you actually look at how things move,

it's very much like it. It's just like the quickness is the difference, right? Yeah, the speed is the difference. But this to me is it. It's just like the quickness is the difference, right? Yeah, the speed is the difference. This, to me, is a difference. People in mature markets, we have the players in the cells don't seem to trust the market fully yet. So you have certain

people we always talk about. CB, JJ, you know? It's funny, we're talking like we're on the pod right now. Well, yeah, we are. Let's do the intro then. Hi, guys. Welcome to Earnings Season. You haven't heard from us in a while. I'm Randy Rowe at RTRowe on Twitter.

And I'm Danette H. Danette on Twitter. And yeah, instead of giving you guys another one of those reviews, market reviews that we have cut up, I said to Danette that it might make more sense that we just have a conversation because we haven't had one in a long time for the market and it's like i don't know it's half earning season the early part of the true earning season a couple of things coming out so yeah you guys get to hear us have a real conversation for our two so let us go um you're just saying yeah what were you just saying

to me the level of confidence the players in the market have, the people who should know, so the industry people, the people that are they manage the funds they buy it, they should be the ones that buy stock heavily they kind of have a

the feeling I'm getting from them right now is fear so I don't know what's going on I may not touch really I forget a really good deal for me to put money into, you get me if you look at abroad now or something that the bosses tell us that we have to I mean, Barita's

APO is coming out soon, I'm sure you're going to see everybody push towards that because it will be the because APO is coming out soon, I'm sure. You're going to see everybody push towards that because it will be the thing in the market. Exactly. It's a nice in the market. Right, Spark, yeah. But then, that will be a great, that's going to be an interesting one for me, right?

Because you're going to see, sorry, I realize I interrupted your point. That's fine. I can't do it. No, no, no. We're coming right back to it because it's a big deal anyway. Finish your point. Oh, yeah. But interrupted you. That's fine. We'll come right back to it because it's a big deal anyway. Finish your point. If you look abroad,

people seem to always want to be in the markets. Even when there's fear, there's a good amount of money saying, hey, let's push in. They're always looking for where is the value?

Let me get to it. Oh, Terry, I hear a lot of talking. Boy, it seems COVID happened. Whatever happened, the market fell out. And it's no longer, let's look for the value. It feels a bit more, boy, we don't know the market. They talk about the market as a whole instead of, boy, these are individual stocks that we can find value in.

Other days, you saw the spike in airplane stocks. You saw the spike in medical stocks. This is America. You saw the spike in medical stocks, the pharmaceuticals. People are looking for where to get the value from now. Even for different time horizons, boy, right now, this will get within the next six. Or even if a different time horizon says, boy, right now this will get within the next six months when things start looking different or based

on what this person is doing, I can go into that company and get some value from it. The fair thing is not cut it. I can't have a cut. It really doesn't cut it. If your general view is the market is a problem for you, then you're not going to find any value in the market is a problem for you,

then you're not going to find value in the market where definitely value is. So that's the difference to me. The maturity of the market, that specifically, where the players are, the mindset of the players, that to me is a testament to the maturity of the players. I see Ryan put that thing there a long time ago yesterday. And he will speak, and a point you the thing there, to the maturity of the players. I see Ryan put that thing there a long time ago yesterday. And he will speak.

And, you know, a point you've always mentioned, where you want everybody to at least have the bigger players need to just come onto the market because there's money there. Of course, yeah. Yeah, so bigger companies get regional entities to come into the market. Just get the whole market to be something. That's where the maturity will come from. More options on the market, then more place for money to go and we always i don't know if we've

spoken about it on the pod but we always well i don't as i said i don't spoke about it but we always spoken about it separately um pension reform where the the group on pension pension money where they need so pensions are heavy buyers of our stock market. But if you look at how much their allocation, how much of the money they can actually put into the stock market, it's problematic for them. Because a big problem with pension fund managers right now, a large amount of the allocation that they're legally allowed to go in

based on the fsc and the laws they have where they're maxing it it's government paper but if you look at what we're doing right now we're pulling back on government paper so the big complaint they have is you sell most investing government paper but you're not giving us paper to buy so where do we put the money yeah and the overseas limits and then then they have the equity market limits. But I suspect that COVID might cause a little bit of the lightning of that load, right? Because I suspect that Capit got himself, Dr. Nigel Clark, might want to have more money get unlocked from the pensions,

especially over the next few months, I think. I think based on what could happen. Yeah. In our little group, there was a conversation started around the tweets, around tweets, and somebody mentioned in an environment where we have, I think it was Stuart. He said in an environment where we have, I think it was Stuart, he said in an environment where we're

continuously looking for a reduction in debt-to-GDP, that does care work. If you're telling people we're reducing government paper, but you can only invest a pension on the government paper, that does not make sense. So you get more

institutionalized by the pensions, put money in equities only good for jamaica yeah to a level to an extent because let's not let's not um let's not let's not look past why it happened i mean maybe we should look at why it is yeah the reason i haven't really spoken about it is i'd like to you know like a set of shows on pensions and that would obviously come up but i mean there must be not there must be i know there's a reason but i'd rather not be the one saying it i won't have um more knowledgeable people and me come on and say but it's not it's not i mean they're not dumb why they did it i think there is a lot of fear in there there is there is fear lot of fear in there. There is, there is fear that led it.

And you have to understand when those rules would have been implemented. I think it was also like thing there, opportunity. Remember how we were very much a borrowing nation in terms of our policy towards what we're going to do with money. So it was, it was a lot of, which was like we had a high interest rate of the past. Government was prioritizing. So, yeah, definitely.

But if you think about it, the effect of that was that the switchover from the private sector funding was not there. Oh, yeah, yeah, yeah. Because why would I put my money into a business

with, I don't know if that's four but two some if it's a distributor two two percent margin if you're lucky when i can put in government paper and get 10 12 some crazy numbers that we are still paying for so if you look at that thing there and I think that the government's push for that probably had something to do with the pension laws at the time. To quote-unquote save money, getting good returns, and we were always able to buy off our paper if we had the pensions buying heavily or buying our paper heavily.

Okay. Well, I mean mean i'm not saying no you know i just think you know about how it would break who would like how to safely break out but i'm sure they're great i'm again greater minds are mine working on how to break out of it but it would be nice to have them um pumping some more money into the spaces no because it's not just the market it's also private equity it's also a bunch of other things so it would be

great to have them pumping their money into the markets financial markets now it would be really really good how did we get to that from QWI that's funny that I do not remember I was looking like when you're talking about QWI I was looking to see you know how they list their US holdings now

and like to me again I think it's just because I have so many years of reading John Jackson's stuff on IC Insider. It's always almost like an eye roll to me how obvious he makes what he wants you to see. But I understand the industry now. I understand why. Why that might be an acceptable way to do things. Because he's speaking to his audience. So like for this, I am assuming he's pretty much just saying, guys, go and put these shares into your own little spreadsheet and you'll be able to track at least what our value is. Because we're reporting as at the end of June.

And assuming that no great holdings have been changed, you can check how these have performed since.'m sure you need a value so it's literally so you're literally able still again in in his own fashion you're literally you're literally able to see both his company and the factors that drive his company and preemptively see the factors that drive his company i mean you literally can just put them what is 10 stocks yeah home people netflix yeah nvidia lockheed martin mastercard broadcom northrop grumman what's this at a war company I think what's northrop grumman carp northrop grumman Corp? Northrop Grumman.

Aerospace. Yeah, they're a bomb company. Oh. Yeah. That's right. Hedge your bets just in case anything ever pops up. That's very smart. Target.

You can see the investment thesis behind the buys. Home Depot, because, I mean, people are home. Yeah. So all of a sudden, you have more time to work on your home. So you're wearing things out more. You go to Home Depot a lot more. Netflix, people are home. Nvidia, that's gaming.

Again, people are home. And not just gaming nvidia actually yeah it actually makes a lot of money from um those extra devices the internet of things devices because they're like those small chips um and gaming though not the gaming ps5 come on who have the chip the amd right yeah but that's some competitors. So if AMD have one, I mean, I'd have to go check after this, but yeah, it's strong gaming. Although I think AMD would actually be a better buy.

No. But AMD doing well. But yeah, AMD doing well and AMD have the next generation, I believe, too. And the new chipsets, the CPUs. Yeah. next generation, I believe, too. And the new chipsets or the CPUs. Yeah. Who has a PS5?

PS5, I don't have to check. Easy check. PS5. Graphics card. Okay. AMD have both the PS5 and the Xbox. yeah i thought i was like um yeah i know they're the better bike because i've been following them for so long too bro i think amd is all it's all it's one of those stocks you always hear about people people are very crazy about amd stuff

i've actually owned it i've owned it i mean it yeah man you told me to ask like it was on you yeah yeah and it was because i thought you know what actually bought it under on the hopes of at home pc gaming becoming more and more popular look at it now across the world and that's exactly what has happened look at it now yeah and then on top of that them them have money in from both the ps5 and the Xbox X how the hell did Nvidia allow that to happen? dropping the ball but it's funny because if you if you're into tech like us then you know you see it all over the place Nvidia dropping the ball but people are more upset about Intel dropping the ball than NvidiaVIDIA still has it but the problem with NVIDIA NVIDIA NVIDIA right now is the thing there is the they're saying it's the price

price of performance so it's very often better to just buy a thing there and buy NVIDIA and the serious gamers that are going to serious um the gamers editors they'll go for NVIDIA for the everyday person who want one game like the person you watch on Twitch you can buy an AMD chipset and I'm good and it's going to be the cheaper

oh you can buy a sonar game I'm not going to pay that $1000 for a graphics card but I'm going to buy that $300 AMD graphics card right they're actually beating them in every um at every price point i believe because even even i the other day when i i had a video card that i thought might have burned out on me and i said all right let me replace it and i got but i was looking at the prices as it did only make sense every at every single point that they beat them

single point that they beat them so if you're paying the same price for a thing there for nvidia that you're paying for md you're getting a better you're very very very like getting a better one than the thing then that makes me want to know what the hell is nvidia doing to make money after looking to that but to me it can't just be that niche of, oh, then again, they do sell heavily towards that niche. So I'm very serious about this and I want the best possible graphics I can get. I'm going to think there. So you watch the thing there. When I found out the other day that Amazon owns Twitch, to me, that was like a signal. Amazon is buying into the whole gaming culture, the whole culture that

Twitch brings around, which is man-bought game and streaming. I'm into that. You know I'm into that. So, yeah. Yeah, but no. As in, they're not buying into it. They're huge in it. They have a studio. What's that game that

the kids play that cannot play or fortnite where you build fortnite fortnite yeah yeah they have a a fortnite s game um god you know the type of game i'm talking there's a ring it's closed oh yeah i think they're like again battle royale it's funny yeah yeah and and they were giving it away for free as always yeah the basis style first one is free so yeah if you look at stuff like that then very often the people on that people on the platformers are streaming it's very hard a low-end graphics card can stream and one game that's high high graphics the same card. It's very often there. You know, the higher level buying

Nvidia card. And if I look at you, then I want the best TV card. This guy I watch on thing there. The guy I watch on Twitch, he has the best possible setup because he has that graphics card. If I can

afford it, then I'm going to it. He didn't catch me. I bought the best graphics card which if i can afford it and i'm going to it it didn't catch me i bought the best graphics card that's true and i i i wonder and i wonder if i was thinking about buying on myself because you know you just do it the crash yeah but i don't know what everybody's seen them hitting today getting hit i'm wondering if maybe they're making the money because as much as we're talking the game inside they made the money for more than one place right definitely like I when I was buying into AMD it was on the back end of them making money off um crypto mining because their price for price of performance again crypto mining would would give you the best of that so you know you want the best that you can get for the cheapest because you have to use it to do whatever with big coins i don't know what the

hell they're doing the point is i know that couldn't last but i also know that it was going to be co-opted by the the big boys who always win and i wondered i mean not it's not that he's going to die because he's never going to go away. So somebody has to use it. So while somebody could make a PC to do the calculations to make them whatever amount of cryptocurrency, right? And you plug it in at work and you run it off the work electricity or something. And then because you're the person doing that, you have a certain limit to your money. So you'd buy like an AMD card or a bunch of AMD cards. When crypto is getting, which it is now, as official as it

is, I don't know if they're building computers in the same way. So I'm wondering which company, is it Nvidia or is it Nvidia or AMD that's winning the new proper crypto wars and graphics cards are impossible to get just the other day yeah yeah yeah yeah but that's kind of i don't know and they still know yeah so it's it's always it's right it's always the higher higher margin pc gaming market for general Nvidia cards. Then there's the lower margin,

but definitely holy pomoney to make it for one of the consoles. And then there's the other applications, right? CryptoCars, other applications as a class to blow up. And graphics cards getting so good that they couldn't mining and the second CPU kind of thing. I remember PC laptop is still a space

and they very much put their, like a smaller chipset just for that laptop. So you buy that laptop, it has a little Nvidia sign on it or AMD sign on it, which means, hey, they just built a chipset for that lap for that and then dell or whoever it is just there's an example i'm sure they use whoever

but if you buy that laptop line whichever laptop line everything you'll get amd or nvidia graphics on that so every school has probably not a game on it i probably play game on the side buy for school but he but he just bought Nvidia graphics or AMD graphics. So there's also that market. And those regular, buy a computer. Who does graphics for Apple? I think Apple do their own stuff. Yeah, I know they used to use Intel for their PCs and much.

And they control their own vertical now. Oh. Could be wrong, let me see. It sounds like you can either do yes you can either make the own thing yeah i don't i mean i think this wasn't that um i i was going to say it was steve jobs dream but i don't think it was they used to have your man say why the first thing i'm looking at why apple ditched nvidia graphics cards because i know they used to use it and it's just intel thing I'm looking at, why Apple ditched NVIDIA graphics cards? Because I know they used to use it. I know it's just Intel and NVIDIA, but they wanted in-house, as you said, CWD

vertical. Yeah, they have full vertical from the wrap to the Apple store. Makes sense how that says. Yeah. The money you do it. Makes sense how everybody says, but you get me. Yeah.

Yeah. I mean, it's all profit for them. Yeah. Well. The money you do it. Makes sense that every side, but you get me. Yeah. Yeah. I mean, it's all profit for them. Mm-hmm. Yeah. That's, wow. We have lost everybody.

We're gone. We're out into things we don't even talk about. Right. So we were saying, Nvidia may not be that great a buy. 200 shares.

Let me see how much he bought how much they're worth at end of June 75,982 US and it's 200 units so 379.91 for Nvidia and as of right now is for 1862 think about the US market so much happens yeah yeah but they have earnings to report soon so it those aren't good it goes are good then I guess you know yeah if it's a beat we know that long earnings missed then guess what yeah yeah but 10 percent up 10 percent up um a month later you know so the u.s market yeah this market nice yeah and if they're trading in the in the in the you know the advanced market where they um probably have their their drivers their stop losses so i mean you're, you're 10% up, you have your little ticker.

If you lose 2% to the 10%, you just sell and get out. And that level 200 shares, they can do that? Oh, yeah, yeah, yeah. The market makers cover that without noticing. Yeah, that's not bad. That's the the I suspect again I don't know yeah

find out what bare thought around this is what all I'm buying for what I'm

looking for in this stuff yeah and I always say how I always say John Jackson we're talking

about QWI but it's not just John Jackson and I think the person who has a lot of insight on the US market

is David Stevens yes again an assumption of mine but I think the person who has a lot of insight on the US market is David Stevens. Yes. Again, an assumption of mine. But if so, like I was saying, we got to this point by saying that their investment thesis shows in what they have, right? So I was saying you're at home for Home Depot, at home for Netflix, at home for NVIDIA, Lockheed Martin. Lockheed Martin and Northrop. War.

Yeah, that's war. Oh, the China thing now is too good, you know? Yeah, yeah. Martin and Northrop War Yeah that's war Yeah yeah I mean I think we do our war One way or another so Ah it might happen Right I mean yeah No

It's true though it's true that's the reality of life And that's history True I don't know what happened the other day, right before COVID, actually. Actually, I had this huge fear that I had to take me as thinking if Putin

decides that America... Let's move on. Let's talk about something else so there's a mastercard which is also smart right so mastercard and visa have been pushing financial um access through the entire world i've been on this push for about more and more of it recently exactly you notice that a lot of the drive a lot of the drive and the um the push you've seen in terms of card access has been visa and mastercard even the ads visa oh yeah i was going to say if you haven't really if i was wondering if i have been seeing them advertising more because i think i just because

i ran them up on c1 they decided oh they're advertising nowadays now two to three years now two to three years now he's been on the roadmaps and which is why you saw a lot of the previous um movements by the banks because i know eventually this would happen this would be coming because visa can align themselves with so many things right i do i mean i don't know if the laws would i know i think that almost definitely the laws would not allow it but one could imagine a situation where a gas station has a credit card assigned to that. Their credit card, right? The gas station's credit card.

They're not a bank. It's just branded with us. It's here, but it's actually a Visa card. But you've got MailPak. And it's linked to a U.S. bank or an offshore bank. MailPak has it. So MailPak, what MailPack has I've been told, big up Swaby,

I think we're actually having this conversation a couple of days ago. You're saying MailPack has a debit card, right? So it's your money, it's not a credit card.

So how do you put money to it? Which bank got the fulfillment? I don't know. I don't know at all how it works. How does it work?

You know? No. No? But when you have services like pay an air and um stuff like that there's so many yes it's obvious that yeah the financial the financial battlefield is getting extremely important you want to change or what anytime you want to change a battlefield widen it widen it NTV visa debit card is now available right the guys have been doing it for the longest time have now done it

yeah so you know when the giant move you know yeah because NCB visa debit card I mean that's great for you to buy on Amazon sure but NCB is now in a lot of countries and it's same NCB is now in a lot of countries and it's the same NCB in Bermuda is the same NCB in half a tree yep yeah so NCB rolling out something is the same

NCB in Trinidad even though I mean they might still be calling them guardian but they'll change yeah that's not a joke thing at all um again we got there from war you know just like the tangents keep attacking us yeah um mastercard yeah but no but not visa all right next topic i'm going to hit you with two and you don't need this one wow yeah why not visa why didn't no not hedging on the bets? Or maybe they hedge on the bets but it's low in value? Wait,

what did you say? They have MasterCard but they don't have Visa. Who? QWI, I'm still looking at the portfolio. Oh, yes.

It's funny because in America what we're exposed to with recent is Visa. So, I think Visa is making a bigger push

in our region. Well, in Jamaica. I'm seeing more news. Definitely. I've been seeing more Visa-related stuff in Jamaica. We're having Visa debits. Definitely.

So, why Massacre versus Visa in the portfolio? I don't't know that was my point i don't know it's very i'm wondering if maybe the visa is a lower holding so it's hedged but i don't think so you know 500 shares who knows yeah maybe as a smaller holding in visa like as a hedge maybe um or maybe it's the price but yeah, investing on the financial wars

also as they spread. You know how I think that? Those guys... When I think of that type of hedge, it rubs me wrong. Well, yeah. Well, yeah. It's the kind of hedge that you do

when you don't... Uncertainty. You're afraid of your bet. You're afraid that maybe I pick two heavy competitors and I choose one. My thought is that if one does well, then the other will lose out. So my real thought is this versus this.

And my head is choose the other one. It's like you buy the market and hedge against the market. Well, I mean, I well yeah i mean that's they'll tell you that's that's good fiduciary responsibility right as part of the fiduciary responsibility yeah which is why you you run your own fund and you're running fun in the way you want it's good i mean check warren buffett he's not about that really yeah no but he does he does and so some things but no when you make him bet to make some big it's very often it's not that type of bet it's not the buy the buy the index fund and ensure the index fund it's it's it's very it's very much i'm going to choose one and my head is in a different way my head is oh i buy another

industry because you know yeah and buy an industry smartly i actually believe in that company and that industry and this and but they're both opposed in some way yeah but you act you act you use the use the buffet method is to use like the berry method yeah um i have the i have coca-cola right i'm drinking this coca-cola we're selling it as far and wide as we can on the back of the suites which are everywhere because kids everywhere in the world eat sweets everywhere in america definitely eats sweets that means that stuff move across the country all the time so it's only natural i'm going to buy well in his case buy like a bunch of railroads i think and create csx why and you say oh, well, that's him buying the index. No, he is the index. Because CSX,

when he put it together and created it, I have now created it. You think a lot of movement between the soda factories and the soda factories, the endpoints, the distribution hubs,

those distribution companies, everything. You think all of those aren't hitting hitting either desk of the manager being told hey we're switching over to this logistics provider distribution of course you use your own thing yep yeah you send the money through your own your own network that's what you're supposed to do and in doing that you build more of your own network. So now I have a guaranteed customer because I own company A and I own company C and company B is in the middle of them. I'm going to funnel all my business through it.

And if I have the shares, if I have shares in company B, or it's not, even better if it's not listed yet. Oh God. And that is actual private equity. Yeah, that is the actual game game that's the level of the game and you can do it that's opm working for you that's right you can borrow money and do it you

can borrow money from somebody and use it and buy something else and bill all that and then pay them 2.5 for borrowing their money that is the the the slice of the buffet method so you're right i don't know if it's a good hedge but i can understand if you just go straight up it's fiduciary responsibility you know you have a lot of money and a lot of money it is other people's money too so same opium so this is them being careful maybe but again remember i said i was speculation on all part because we don't see visa we do see mastercard broadcom was broadcom cables i think so internet google internet design and development infrastructure robots about a wide range semiconductor infrastructure software products wi-fi radios is what i think when I think brought come that's that's what link hit me although I mean they

also money off for God in America very often they do that you know they are and in the same business as what's the Chinese one Huawei oh yeah so this is you're very much better than America don't make sense you're better than Huawei anyway especially at this

side of the world you have to go with your people and if America isn't going to use Huawei let's go with let's go with

Broadcom I mean income up revenue up operating income up it's been a good year it's a good pick oh you spoke about the Buffett method I mean, income up, revenue up, operating income up. It's been a good year. It's a good pick. Oh, um,

you spoke about the Buffett method and whatever you're going into by the distribution and the actual product. Mm-hmm. MDS going into suites. We said going into, but going into... They're already in it, you know. That's the type of thought. Are they going to the place? Yes. I already go into the place.

Every farmer sees his sweet he put down. Why not? Get some sweets too. There's some space on the truck when I send it over. Send the sweets. That's what I thought about. That's actually a great idea.

I'm waiting for a smaller company to be aggressive though and smart and pull, I was going to say, I'm looking for a small one and I'm asking for the example, I realize the example is the one, like pull a divestment, like a blue power lumber. But I guess that is a small company, right? We're not really small. Not really small not really small yeah when you guys touch them they tend to get very very big very quickly did you watch the Derryman

the Derryman interview uh no I I watched it is Derek Cutrell is is um an interesting fellow the things he talked about the man obviously knowing in business name stuff and I found out something there that i didn't know which i think was a deliberate point that was made um that uh dairyman is either the or one of the largest importers of rice yeah and we're about to eat a lot more rice yeah i mean but it's a staple so that's good right? But that's that that we said that from morning that's that that's that that's I'm trying to find the right word to describe how he's run that business for me. I think about how many years ago he used to run that joke about raise a thin margins but maintain it and he know the secret to cash flow boy yeah that's crazy

it's very funny how that worked out right and he there's one clear example there of him doing it's buffett-esque but um woodc, yeah. We use you so much anyway. You're right there. That's Apple, actually. And on the retail supermarket. Yeah, that's vertical. If you hear him buy a bunch of farms, he'll buy a bunch of farms

and go on full vertical. Yeah. What's his name again? Megamart. With the farm push they did all the day yes yeah yeah exactly exactly that uh you see it at every level so that's what i want it's like a doing it because that's uh that's i can say that the lower level i know the money not low but um his money is not low but but but it's it's if you can if i call it a low level and call like a jp upper level oh yeah jp did the same thing right heavy heavy yeah we grow the plantings here

process them there oh we'll go to bananas here cut them at the chips here bag them ship them off through our shipping company through to Europe, send it to our distributor in Europe and then sell it. They don't own any stores there, but sell it in the distribution network in Europe. Get the juice,

make the juice in Jamaica, ship it. That is amazing. I call that the upper level of it. And JP, kind of the same thing, right? We are shipping all the time anyway. Yeah, and we're shipping Euro things too. Exactly. Yeah, and then let's do it again. Let's ship Euro things since we're shipping Euro things anyway.

And they're already shipping Euro things with Kingston, right? But they're not shipping Euro things with JP too. With Europe. JP, what's the name again With the Europe. JP. Logistics. Yeah. It's a good, old school corporate law.

Why is my phone? Make your money. Can you hear a ringing? No. That's weird. Anyway. no that's weird anyway it's like it rang and I knocked the point out of my head JP I was thinking about

there's one specific thing man something it's about JP and them in Europe I know they have the juice I know they have the leading juice brand in Europe and I know it have the juice. I know they have the leading juice brand in Europe. And I know it's about, it's COVID and the sales. They took a hit last quarter,

JP, on, there was stronger at-home sales in Europe, I think I said. The channel shifted. But what was it? Like all of my JP points in my head now are going through them you know i remember the biggest red flag i can remember is the is the cruise ship the dropping cruise ship sales

yeah but i don't i don't i don't know how huge that is and they're looking funny to me like they've been looking like they're setting up to do something for a little while now they've been saying it yeah they have been saying yeah but i don't know if their timelines match my time you know that though yeah and by a company because we are it's going to be billions more in five years for them and then a year after that we will start tasting point zero two of that which is at that level of money great yeah all right five to seven years a lot my hand bite was I talking to that I talked to somebody and I was saying that if i had 200 million dollars i'd put 100 million in panjam because i mean it don't matter what happened

it don't matter what happened yeah it's gonna be there yeah yeah there yeah it's it's not about if they're gonna come out on the right side it's which side are they gonna come out on because whichever side they come out on is your right side yeah the panjam is one of them left side him right right i was as as doing some research or something the other day and it pushed me into looking through their story they have an interesting story to start with that the guy knowing how his dad started and he set things up and apparently lost everything. He actually,

there's actually on the website, we talk about him, family, his wife and kids had to leave the house in their dream house. I remember that their dream house in Norfolk. Like, no, like,

like overnight, like, like, like, like, like, like, like,

like, like, like, like, like, like, like, like,

like, like, like, like, like, like, like, like,

like, like, like, like, like, like, like, like,

like, like, like, like, like, like, like, like,

like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like like overnight like as in have have to party back since well this was before panjam

this was before panjam listen to the timelines of what i'm saying listen to the timelines of what i'm saying this is like i think 80s or 90s oh i will see if i can find a link and i'll share it with you and i'll also share with the people but this is before pancha so after he did he went through the trouble he went on to do a whole lot so you can probably buy an artwork if you want to buy it back i mean yeah i i would i buy it back i don't know if i ever bought it back oh i know that's all i know i know so if i think that if it's going to be in my story if i don't mention the bike back on in the story i'm laughing in my

head with every day yeah man even if i even if i never live there again yep just out of principle target corporation which i guess across america good distribution i mean they're like the Walmart of non-southern Americans although they are in the South also yeah Bristol Mayor Squibco that I don't know Squibco I'll tell you we said it to each other biopharma the depth of the US market there's so much options oh god yeah yes and then there's like well you know that the level that nobody don't really talk about the levels that people already talk about like everybody will talk about the google and the apple and amazon yeah and you can do a lot of things.

I mean, Buffett made his name in small caps. Yep. Berkshire Hathaway. Right? It's funny where that is now, where it's coming from. Yes. Yeah. They keep asking for the Buffett episode,

but I want it to be well-researched more than I can give my time to right now no man you can do it well we'll get it done we'll get it done hi everybody sean the top striker here so this sunday august 9th is going to be my short-term investing workshop it's going to be a nice not too complicated interactive online workshop where i'll go through my short-term strategies and the tools that i use to make these striking moves so if you've heard about some of my market plays i want to know how you can successfully make them or if your portfolio taking a hit right now you

want to see if you can learn to trade against the market volatility to rebound on some of those losses then this is a workshop that you'll definitely like. The cost is 65 US dollars. You can register and pay at everymickle.com slash technicals. The link will be in the show notes. So join me on Sunday as we take a practical approach towards short-term investing on the Jamaica Stock Exchange. Guys, just a quick break,

and I do not remember what I was saying before, so this is definitely the extra tangent let me see the another tangential um we're still going through the qwi the holdings i don't want the u.s holdings um bristol mayor's squib co i know i'd looked up but you were saying something else but they're a farmer they're a big farmer company so that's smart for them to um to lean against that so the obvious thinking is you know corona but corona is on the corona is new and loud but it's not on the game in town or the deadliest game in town and bristol mares squid is uh in in the game of things that people can do it out wow i'm looking at their top their their top medications i'm not a doctor i have no idea what they are but

that i i i take that to mean that it's the stuff that you have to get in a hospital yeah which means that's a continuity of income just another thing buffet does oh yeah that's why i don't know the name of any of these leukemia medications and so on oh seriously or something yeah but the sort of thing where you i mean you have to buy the medication yeah so trusted but known companies and of course the last one alphabet inc google yeah yeah which i mean that they are not going to lose oh yeah it's funny what i said i wanted to drag it into you saw the antitrust thing today what's that oh we're um facebook facebook amazon Oh, where Facebook. Facebook, Amazon, yeah. Yeah.

Who was it from Google? Let me tell you. I just saw one clip where somebody, where one of the guys. Sundar Pichai. Sundar Pichai, yeah. Google's greatest hint at where they see themselves concentrating for the next 20 years. Yeah.

I just saw that bit where Zuckerberg was saying that he doesn't know anything about Trump's son being banned or disabled for a while. And he's like, oh, that's Twitter. I can't speak to that. But I can help you with

Facebook. Yeah. What I saw was based on his five minutes, he spoke about how much of a market share he actually owns and saying that he owns less than, well, Amazon owns less than 1% of the retail market globally and less than 4% in the US. So, yeah.

Yeah, his numbers are low, you know. We've always trumpeted about the death of retail and it is dying in a very funny way, but it's funny what you call retail and what we think of as retail. Yeah, and it's also... You go ahead.

Also, funny point he made he did speak to as much as you guys make it seem as if you know we're stealing business if you really think about it like the fact that amazon sells you brandy have a business to sell it at amazon amazon is a platform so it platform. And they speak about how much million businesses actually are on Amazon selling the thing. We just facilitate it.

So the death of business is just a new way for it's just a new avenue for certain people. It helps some guys' margins because Amazon has the stuff they can't have. So, yeah. You know? What do you think about antitrust in general?

I mean, historically, it has shown how effective it is. Antitrust, as far as I know, it's to show the reasons why you shouldn't be broken up by Congress. Yeah. That's how I think of it. That's how the oil magnets, standard oil was broken up. And it's so nice to say that if you look at the history of it, all it did was, that's when it created billion. That's when it created billion that's when it created um huge billionaires i don't there's no business runs along human nature nothing is going to stop

we find a way to do what to to benefit ourselves but it very often feels like out of yapping like you may. Let me complain about normal things. A lot of times it's just political posturing. It's just to have my supporters see so I can say that I did this. You look at that thing there. They gripe with

Apple. So app creators are complaining that, hey, the terms that are... So, app creators are complaining that, hey, the terms that are given to us as creators on the Apple store aren't what we like.

And Apple prioritizes the people they have an interest in. If you just think about it, my... So, I explained that to you. I was in an argument

with my friends about it because, you know, they're less a filthy capitalists than I am. So I was saying your business is viable because you're going to sell your business on Apple's platform. And you're complaining that the terms that are given to me are not favorable. Just think about it. I only thought of this business because Apple is a thing and it does its thing.

And I'm going to push my business through that. So my business, the whole environment of my business is Apple. But I don't like the terms, so I'm going to complain to the government. To me, the thing is, yo, you don't have this business or i don't i mean i'm with you i know the other side of the argument i know i do i do i very much acknowledge it and i can see i can definitely see where you because if it's style for business it if it does look like a style for enough business business. And if there's less avenue for business to be viable, then you have less employment,

and more poor in one month. It has never resulted in less employment. It's very funny. But then they do argue that they have never actually, they have halted all things that have created that problem. That would have created that problem so they said their argument is that they've never allowed it to reach that far that's true because it it does not i mean no hold on they have allowed it to reach that far it's costly if they say they are

that's funny but but that's not employment randy exactly that. That was how far it got. But I don't... It's funny how that thing works. Right? That literally was it. That is the true inhumanity of it. They figured out a way to bring their... to truly manage their operating costs.

Are they experienced or as a source? Right? Anyway. their operating costs are they expensive or as i think right anyway luckily we can all manage our operating costs now um but no i'm not i'm not i'm not for that at all you can't is that's like me coming to your house and telling you i do not like the sound that your fridge makes you need to get a different fridge exactly leave like what no yes but your platform is so huge that there's so many people on it so i must be punished because i'm popular yeah exactly that that is that's what happened to bill gates you know oh yes sorry i'm

i made the system that was so good everybody in the country uses it it wasn't a monopoly i invented it it's funny because what he did with piece the pc made it made it happen and then there are other pc people coming up and i remember the gripe i know about specifically was uh everybody can give thing there can come with so generally you know we have microsoft word office office office apps we had we have no microsoft word excel blah blah blah there are also excel like apps also spreadsheet apps also word apps and bill gates also said i'm just gonna make one and i put on every microsoft pc and then basically people say that if i can buy this and also buy that and that and that they might also buy the Microsoft PC.

And other people got... So the people who were making the apps before started complaining. And people... Competitors were also complaining, saying, boy, him think of this. And other people got run out of business because he was giving a better deal. And somehow, someway, government is involved in that. deal and somehow some way government is involved in that government is always involved because political posture yeah yeah yeah yeah and the more people learn about businesses the better they get at not being fooled that that's that that's simply it. My issue

with what went on today was the Google one. So Google, the search engine, was returning so it was prioritizing Google related businesses. So say you are watching there.

I used, but say Google invested in your tennis ball company, right? And I searched Penn tennis balls to return me the Google one and then the Penn one. So the first thing would be the Google one.

So people were upset. So the people at Penn would then be upset and say, boy, Google is removing me. Google is giving their own thing even though they searched my thing. So the searches are optimized for Google things. So the competitor, you type in a competitor

and Google thing will return first. In my head, I'm like, well, it's just a search engine. Just think about that. There's no rubric. There's no, this is how search engines must act. If anything, Google created that. I mean, they didn't create it, but yeah, they defined it so well, again, because of their popularity. Remember, their niche was, we give you the best. So back then, you search something, you get bad things. And something very unrelated to your search. So Google was optimizing the searches so you get the most looked at page for a thing there

so if you search tennis balls you'd probably get some obscure page before from some other place that have nothing to do with yeah what you look and it wasn't very fast yeah it wasn't very fast so google said hey increase speed and we make sure that you'll get the best tennis you get the most popular tennis ball search that people go to so when i see something like that i'm like you're complaining that their algorithm is their algorithm that has nothing to do with your business either hey think about it you sell tennis ball in a store but somehow some way you're upset that you're upset that the search engine didn't show your tennis balls first you're not paying a search engine to do it for you but you're upset that a search engine didn't show your tennis balls first you're not paying a search

engine to do it for you but you're upset that when somebody search on their search engine that they put their thing first over your thing it has nothing to do with your business so when i complain like that i'll no i'm not with you tatara i mean it's complaining but they complain and comply true yeah I mean if you really

if you really have a problem with it that's why I say human nature is the truth you know if you really have a problem with it you don't do it and if enough people

don't do a thing that they it stops happening right if if a place sell really good food even if them even if you think that maybe they'm overcharge you yo if your place are really good food and and the customer service there is terrible you're still going to go to that place yeah kfc joke oh god but yeah it's it's it's human nature that's why it's built on that's why it's a system that

is self-regulating the day everybody truly feels a certain way about a certain thing that thing can no longer happen exactly so if the problem if the problem isn't isn't limited to just me being vexed about it, then it's not going to change. Exactly. Is that a politics joke? Oh, wow. All right.

So I'm going to wrap this QWL. We've certainly seen this one. It's good to see this profit. I mean, we spend so much time looking on the u.s part of it like we never even touch on the jamaican part they still have the access financial um the the albatross around the net but albatross helped them to soar high this quarter it seems heavy holding and it did well for the quarter so contributed a good amount of numbers to them. Yeah.

By and large, a huge holding. The second hugest is Grace Kennedy. Grace Kennedy is an interesting company. Yes. Talk about that. Actually, QWI is the perfect company for us to use for this because it touches the whole market so well. Yeah. Yes, it does.

Yeah. GK. GK the great. GK put out numbers the other day. The other day meaning? Oh or recently did he do that but nothing yet when I say recently I mean what I really mean is have we spoken about it on this

yet I'm sure we touched them to some degree I don't I'm not sure we touched them heavily I don't think we've touched it really since we had to do it as part of the room yeah I don't think we have touched it really since we had to do it as part of the yeah i don't think i like i like the feeling of oh my god never again that i get every time i think about it you took me like classroom reading you know like teacher versus oh this book is good let me read it now i think it's the very first time I've ever I've ever Done anything related to investing

And it was a pain Yeah It's a pain not because it was a pain It's a pain because It's a pain because It's the format, the way we're doing it It's one thing for us to review the whole market Yeah

It's another thing to sit down and Talk to it And in that way i were going in depth and talking and you know actually being oh you're this interesting thing about this i'll just give an overview type of thing reading out them revenue and then profit like punishment but them days done and GK seems to also be saying that them days done in terms of the share

price anyway them days done in terms of excitement that they had late last year there was this huge run up like mid November it was at $62 a share the first 40 that was killing me forever forever and it peaked it went all the way up to 75 dollars 75 60. ready for the road

january and then it's a copy no copy and then and then well let me say from before yes no? COVID and all. Well, it's that drop from before COVID. Yes, let me say that a bit. It had the same NCV effect. Oh, yes. Yeah, trans. Too big. Yeah, it's too big and everybody to it. It's too much of a it's too much

of a market stalwart or a established investor. The old schools. Too much of old school companies. The safe companies. The first company I'm going to tell you to buy when you walk in the broker. Oh, TK. TK, yeah, man., too much of the old school companies, the safe companies, the first company to take a buy when you walk in the broker. Oh, GK. GK, yeah man, it's one of the,

one of the, almost every recommendation. Exactly. You can hide, yeah, you can lock your eye and see. So as a result, everybody that was in that, when they hear about the big thing coming, trends that they can't miss, they jump out of GK. Especially because, I mean, if you've been waiting from it, for it from 40 something,

or if you've owned it for it for it from 40 something or if you've owned it for a long time even before right is he hitting 60 and 70 odd and trying to make eyes on the horizon it's the it makes sense hey why don't i pull some profit out of this thing and put it into that thing i expect to make a lot of profit from yeah natural thinking because it comes right back again to always say human nature is a thing that you cannot go against you can talk you can speak against it but you can't deny the reality of it so it started dropping from january from its spike and it continued to fall throughout february and then it showed a little bit of life at the end of February boom there

came the corona virus right at the end early March it just continued to fall again because of its nature because of the kind of company it is and it settled now at the $56 level yeah still rough but if you look at it across them long timelines right not even long but i mean if you bought if you bought it two years ago you bought this fought maybe maybe maybe maybe not right if you if you bought it like mid-2018 you probably bought it in the 50s so it you mean you'd be kind of like 10% ahead of where you are there where you are now right but arguably in the most exciting

time of the company's existence shifting up yeah I'm getting ready to move again right I mean the most interesting the two most interesting things I see is a movement of staff. And I see one, Steven Whittingham got named head of what they call a digital innovation. Yeah.

Which, I mean, everybody outside the company going to nod and act like they know what that means. But- Detail information. I'm sure internally. I mean, they said that they gave the usual vague company meanings but as to what it will really mean because i think he's still does he still does he still do things at gk investments he's still cio i still see him as

cio chief investment officer of gk so I would think so. Okay. I'm checking the actual... COO, you mean? CIO. Of the Grace Kennedy Financial Group. Yeah, man. But he's chief investment officer for Grace Kennedy Limited. So across the group. So that's... Yeah.

That's a lot of titles. Those titles really tie together. Yeah. That's a lot of titles. Those titles really tie together. So if you're top of the investment arm, then you're either a CI or a home group. Exactly. Because that is the point, right? The point is that the group exists as a conglomerate and it is managed that way.

So naturally, the person who we have handling our investments is going to naturally be the head of our investment arm it just so happens that our investment arm happens to be a separate company not separate but a separate in the sense that it's its own company within the group so obviously you'll be head of that you think you can get a different paycheck for each row i don't know that would be fire that's the benefit of corporate very nice you want that level of talent you have to pay for that level of talent um and and it's that's i say it's probably

arguably the most exciting time um i like whenever they speak to gk financial group because the gk financial group but sunday you look like it passed without anybody even noticed that article you're actually the one who shared it with me he did pass scrutiny yes it's funny we just talk about antitrust so the free trading commission has given them not given an alternative case canada position of 80 stake in key insurance so key insurance was, GK bought 65%, and then they recently increased their stake to 80%. And the Fair Trading Commission said,

cool, they're not really, they're not much of a market with these tools. They might just do that. The amount of people, explain, hey they might just do that people explain it divided people have taken around with it so much of the market you know take a good chunk of the market mm-hmm yeah market share that's by me not the stock market or they might do that in a good way I can my might some good things coming from Key. They already halted twice or three times, no? Monday, Tuesday, Wednesday. I haven't even checked it yet.

Let me check the share price for this. Go through that. It ended today at $7.23. Yep. Wow. Wow. The last time it rose and I then got joined

and spoke about it it caused a little bit of furor see the fundamentals of it doesn't justify the whole thing yeah

yeah because they're going to have a loss and then right after that they did have a bigger loss yeah which was we spoke about that

actually we did speak about it on the podcast where they lost I think decided to they did have a bigger loss. Which was, we spoke about that actually. We did speak about it on the podcast. Where the loss, I think, decided to spoon feed that one. Yeah. The loss came from the reinsurance. So they cancelled their contract with their

original reinsurer and because of that, they were no longer due certain money, so they had to book it as a loss it's a receivable line those got cut basically so book a loss same time a big expense line 300 million so basically without that there'd be 50 they'd have a 50 million dollar loss it was a better loss than the previous than the same period last year than the same period last year. That's key. Yeah, that's key.

But Grace's acquisition of key? Yeah, buying more. To me, I think I've said it to you. I'm wondering if he might be surprising this report based on the stock I've seen here. They do mention that they're still considering the rights issue, which to me was always going to be considered that Noggeda should do so. Unless something

something happened. Something good. They think some other deal come on the table for them. They get a better deal for the money. So, how about that? Than free money? Than a rights issue. It's hard to imagine what could be better

especially if you're the one brokering it exactly exactly which is why i very much think the right you just you just can't um and human nature again whatever they had planned must have been so huge that they're willing to give up five years of a tax break yep go on you have to justify that mm-hmm it's like it's like it you know grandma gear grandma gear toes not she gonna give it those nuts and you lost it it's that ball hey I says all right I should say you know what here is alright I should give you back at those I said next house is that those launch give you back I mean that don't help me and I still vex that next those laws I should give you that can't last yep I can't also talk anything

they'll do it before if you were a daughter you like what am I going to buy balloons or a book whatever is whatever is the when you get the second one back you sure know what you're going to do with it. Straightforward. Same human nature. Get key and you have five years of half tax. When you might very well, obviously you buy it because you believe you can fix it. You can turn it around. So if you project your turnaround and you see it good,

and you can also do that without paying the full tax bill paying half of the tax that you would have to pay so that mean i mean common sense especially if you're a group like gk you want that money for i'm sure other things or it could make a nice a nice um dividend yeah if i can't if i don't have to pay it out to the government let me pay it out to myself i can use my money better than the government can and i have to give and have to give that up i must get something definitely better you have to come with something really good something to cover the whole of that so i think that'll be fine that mention of i don't remember if you said it earlier, you mentioned the reinsurance, not the reinsurance, but the actual reinsurer and the cutting of the...

The contract. Yeah. They canceled that agreement. So whatever, their reinsurance policy, they canceled it with their original reinsurer. What about it well just the concept of what that actually means i mean what what what does that really mean oh so they basically had an insurance policy they say oh boy every time every policy we make with you we have some right we second of us we insure it basically and we have a guy we pay for that basically so because of the contract they were due some money from the reinsurer insurer was supposed to give

them some money and they said so 300 million dollars and because of the transit policy they're no longer due that money so it's like you think there so you have an insurance policy uh longer due that money so it's like you think there so you have an insurance policy uh and when you reach a certain age you're supposed to get the money so you pay money every month but when you when you when you reach 42 you're supposed to get the money but now you're 41 and you cancel the contract you cancel the policy right before you turn 42 you're not supposed to get the money anymore so, you've been spending all that money every month for however much

years. Coverage, yeah. And then you just drop right at it. Never mind. So you're supposed to get $50 million and you're just not getting it anymore. That's a loss in the future. So basically, the book is a loss at that point. So the way these things work you know them way have to find another reinsurer you said it before how they're going to think there and they've said it even they're going on well yeah let me hear

what they say because i know what i was going to say what i asked was but go ahead let me hear what they say oh they said they've gone on to the the group the group's reinsurer. So GK actually has a reinsurance policy across the group, and they're just going to tag Key onto it because they're part of the group. Or scale. Scale is how you win at that level. And you know how that goes. Better deal. If it's more money under one umbrella, then you get a better deal. So since GK across the board was doing that, anyway, you get a better deal so since gk across the border is

doing that anyway they're a better deal so i figure key they won't just cancel the contract and move into a worse deal so i figure they'll be spending less on the reinsurance contract reinsurance going forward yeah i can see that also but let's think practically all right so let me admit that so i don't know so this is me talking just straight speculation but you said that they said what you think about the exact wording of what they said with key and reinsurance you remember it yeah the insurance partner was hamburgry this was from the article or from their report but i'd rather go to the report to know where you're all right so the article is one you just you want to just send

back to him but i don't open the report so that oh he's insurance partner was hamburgry this year like stock company gk general keys looking to do business with with three with who with three so the same one that GK Journal Insurance uses okay and who was Key's Hamburg Rhee Hamburg Rhee and Renewal

Willis Rhee Willis Rhee I had this crazy idea in my head but am I is that what you were tweeting about? I had this crazy idea in my head. But am I... Is that what you were tweeting about? No, insurance? No.

I never wanted to touch politics, but... Oh, yes. That's what I thought it was. But you know that goes around the tweet anymore, doesn't it? Yeah. Everything around the tweet is about the market. So, you know right i don't have a life then i ran the tweet in about the market

oh my god no one has asked me what it is so that's good i'm sure it's coming so the idea i had in mind was that i had this crazy idea of oh suppose they suppose they just it's not like really that they don't um have the reinsurance right or like they cancel a contract because why would you cancel a contract if it if there was no yeah if there's nothing there they don't make sense you must have some plan where you write it to you know or something right or or is it that because i didn't go over the exact reasons why they had to put a loss is it that because i didn't go over the exact reasons why they had to put a loss is it like a financial reason why they have to put a loss because it's not sure is it like one of the ifrs9 things no it's just a possibility it's just a thing there

are a lot of receivable so it's just like it's almost like ecl you do some money but you know you no longer think there you no longer do that money so that's the part that i keep trying to pull you pull your mind to that's the part i'm trying to pull your mind to what makes you think that they're not going to get the money look at the wording of how i only read it the one time when it came out so i'm working from memory here that's a long time it come out now but look at the wording of how that that thing, look how it was worded. Is it that? Listen, there is no clause in the contract

for us to get back anything. So based on, and again, I'm not, neither of us are advisors. We should have said that at the start. And guys, if you've gotten to this point, neither of us are advisors. We're not licensed investment advisors. Now this is investment advice.

And I'm also not obviously a lawyer or an insurance agent, right? So I'm just speculating here. Here's my point. What if I'm talking to you, Danae? You're my reinsurance. I buy this company. I come in. Who's your reinsurance, Danae?

I say, Danae, honestly, for this to work, we need our insurance bill to be at X level. Right? You say, boy, I can't do that, you know. Or maybe I can, or maybe I do a, maybe I do a, maybe there's, for whatever reason, up front front I've worked with Watson on paper you can read it upon termination of the MQS agreement which is the motor quota share

reinsurance agreement management decided to accelerate amortization of certain underwriting assets resulting in a one time charge of wait from amortization I was waiting for you to notice of certain underwriting assets resulting in a one-time charge of... Wait a minute. Exactly.

From amortization, I was waiting for you to notice. They chose to book something. You and I actually spoke... Oh, yeah, man. Yeah, when I said manufactured loss. Let me be clear for people hearing that. I do not mean that there's anything untoward. I just mean that they made a certain amount i i believe that

they made a couple of business decisions with specific timings in mind yeah because he made the decision to close the contract and if the contract doesn't have so i use in this example where i say yo then i um all right i'm gonna lock this contract no the contract does not have an agreement in there for the agreement he says um relating to the terminated mps agreement there was i don't i don't think they were due any money there i don't think that no man there's a specific thing the amortization of course they said that they sped up their amortization also for the people listening and wondering which one is it just tell them which quarter reported you're reading now this is the march quarter most recent report from key what is that q1 yeah and of course i will have the link in the show notes i know i've said that

a couple of weeks and it hasn't been there but if you can hear me clicking in the background that's me ensuring that i'm putting a note there right now. So all I have to do is copy and paste it in case anybody is lazy. If you would like to get these as they come out, there is the EveryMaker Telegram group. And as I said, EveryMaker Telegram group is not a group. There's nobody in there talking. It's just a simple place where all of your news around what's happening on the JSC, articles related to companies on the JSC, it all goes in one place.

So if you're looking for a quick, easy way to keep track of everything that's happening on the market, you can check it out. The link to that is in the show notes also. I shouldn't call it a Telegram group. I should call it what it is, a Telegram channel. So where they do the money? That's what I'm saying. The issue I'm looking at, where they do money

or it's just an amortization of underwriting assets. That's what they say to us. I wonder how you never pick it up and then because... So basically, you have to amortize the assets. We accelerate it because the termination of contract, because the insurance contract. Oh, bitch. You see that? You see the lack of, the fact

that they mentioned, remember, you know, my thing already, companies lie in air quotes. CEOs lie in air quotes. Remember the idea behind how IFRS 9 works. I'm not saying it's IFRS 9 related. Although it might be.

You know how where you have to like if you're writing something down you have to use certain specific um certain specific markers to write it down so sometimes you have to use like market price or like in the case of jmmb there, you know, they did a valuation of assets with an independent valuator, right? So in this case, I'm thinking this reinsurance agreement, they made sure to state that there was no... Yeah, they said there's no,

the agreement made no provision for the payment of cash or settlement of outstanding balances upon termination, hence was terminated without recourse by either party to the agreement. So they're fine. Shit.

So yeah, it's just accounting and how you look at things. No, no, no. Hold on. Because that means that they took a hit from the cancellation of it, right? So they're saying that there is no... Explain the hit in real life.

They said accelerate amortization. They probably have a balance. They named it here. They probably have outstanding balances. There should probably be a payback. You were the one who did the example of the thing. So what I'm saying here is this, right? What makes you think that they haven't had another agreement

to say, here we are? And let me bring all my points together with IFRS 9. If the official contract has no official provision in there and I end the contract, then I have no proof to show the auditors for my recovery of whatever balances I have with your company. Okay. So lack of that proof. Sorry. You're saying. Yeah.

That's not that one. Let us say that I come in, I buy this company and our reinsurance are denied. I approached the night. I'm saying, Hey, I want x-ray. Then I said,

I don't know about that. I said, all right, here, I'm going to cut the policy. He said, cool. We cut the policy, right?

Now you have a $200 million balance there to pay me back. However, the policy itself doesn't state that if I cancel, you have to pay me back. There is no clause in there stating that, right? We're now in the realm of hypothesis, i don't want you to say randy did say this on his fat no then i isn't going to thief my money then i say hey i have this 200 million here for you i say you just hold on there then i i will tell you when to pay me back just confirm for me that our contract does not have a clause saying that you have to pay me back then

i say no there's no clause in there but i'm not going to take your money i'm going to pay you back i don't want to have a bad name with you or whatever you know i understand you get bought out years of business blah blah blah i don't want to say that's cool i'm not saying i'm not going to take the money i'm going to take the money but just please hold on because i have a vested interest in being unable to show my auditors any proof of 200 million coming onto my book soon. But I'm doubting that because of insurance. No, man, hear me out. So I end the agreement.

And so because of that, I have to amortize the cost. And I say, well, is there any recourse? No, the contract doesn't include any recourse. Hmm, okay. And so I have to write this manufactured in air quotes. I don't think they're doing anything wrong or illegal. I have to write this manufactured loss onto my books of the 200 million, right? In three months after I have changed out management, fixed things up properly,

have my people in and I'm knowing my big groups in reinsurance policy too. And I also want a nice little boost, maybe to make the numbers look good or excite the market around maybe a rights issue. I say, hey, Danai, that 200 million you have for me, you can pay me back now. And you pay me back and I report it on that quarter's numbers. You were always going to pay me back. But whenever you're doing anything anything along IFRS 9 you can't just say you're doing it you have to show proof anything audited you have to show proof and if you don't have so even when you say that you are putting expected when you said I thought you got it when you said it's exactly

like expected credit losses even though you say i am going to get paid by my customer where we have a 10-year relationship they always pay the auditor says yes but corona is happening so you have to make some accounting for a possible loss and i said all right i'll make an accounting for a 10 loss and honestly say come on. The industry average for your industry is 30%. And you have to show proof as to why you think 10% is a better number, right? You can say, well, no, look.

Here's this agreement we have. We have a really good relationship with the customer. But I'm thinking I wasn't different in order. That's what I'm saying. I'm not thinking I wasn't in the same way exactly like that. But you should because it's the same principle. Yeah, but if I know know think about what this is this is a legal lump sum of money that you are going to give me legally as per perfectly fine legal but it suits me right now i get what you're saying i'm not saying i don't understand

what you're saying i always say no but i'm not and the second you the second the contract you have a con understand this you know the contract has assets linked to it the the um receivables are an asset but as i'm saying the second you cancel the contract you have to say what happens to the assets and if you can say listen the contract does not which is perfectly true the contract does not have any recourse for the recovery of those assets then as per those rules you have to take the hit just like how with ECL you have to put the hit on your books and even when your customer even when you know your customer going to pay you still have to put the hit on your books and then in the quarter when the customer does pay you you get to book a bigger profit and take it back off right so there

might be a quarter that you know down the road because obviously i've been planning this for a good little while where you specifically want a good hit to come in all right so i'm not saying you're not right by the way i'm just saying yeah i don't care about that i just want to hear it hit the theory let me hear all right so i think i'm thinking about it different insurance is basically i'm going to pay you every month because I know when I need the money. When I need, whatever agreement we come up on, when the car crash,

you're going to give me an extra month of money, cool? That's regular insurance. Me to the company, yeah? So, that's basically reinsurance. No. Reinsurance is no.

I am going to take any hit that happens to you, Jim Brown's insurance broker, insurance agents, insurance companies, and I'm going to reinsure you to a certain level. So there's a certain amount of money that I'm going to give you, but it might not be the same. In fact, you might have to pay out to Danai more money than I'm going to give you, but it might not be the same. In fact, you might have to pay out to, to deny more money than I'm going to pay. Definitely.

I'm just insuring your account. I'm sure I'm insuring your insurance contracts. That's what insurance is. Yeah, exactly. I'm taking on the risk. Yeah. So,

so what's the difference? Well, it's the same. It's the same. It's the same insurance. I want. Yeah. Yeah. Yeah. Yeah. You want me? so what's the difference well it's the same it's the same it's the same insurance i want yeah yeah yeah you want that now he's like you forget you forget that we're still on the podcast uh yeah so i get what you're saying you and i know that but i'm making sure that you say it very clearly so i don't have to put up with hearing oh you're saying the wrong thing all right cool cool so yes you

explained it well so yes so yeah it's still an insurance with another person i'm just i have the insurer i'm also insured cool yes so basically it's the same agreement it's the same type of agreement so what i'm saying this specifically said they're accelerating amortization of certain underwriting assets that's what got me so basically how the insurance how I'm understanding the book insurance is that I have amortized the possible money over the period of the contract so if I have 1.5 million and I'm paying out money to you every month, then over time, then I would say, boy, that $1.5 million that I'm supposed to get insurance for, whatever, the money I'm paying out every month to you is cut down again.

So when I accelerate it, they basically hit all the things. They hit all the money they'll pay, all the amortization bill, which is the quote-unquote deterioration of the money. Boy, I hate explaining it sometimes, guys. Because I feel like I know I just lost people. All right, well, say it over. Say it in a way that you won't lose people.

You didn't lose everybody, but say it over. So basically, Randy will give me $1 million if I pay him $10,000 for a period of time, right? Every time I pay Randy $10,000, I would weigh that against the money he's going to give me. So basically, at the very start of the contract, if I pay him $10,000, then he has... I started the contract, right? He has $1 million for me. he has what i started a contract right he has one million dollars for me every time i give him money then in a sense i'll he has less money for me because i'm basically paying off that balance

paid paying out that one million dollar balance get me make sense no i'm with you i'm with you an audience won't reply yet yeah so i don't know if you're correct though, but I'm with you. That's how amortization works to me. But we're not talking amortization. Yeah, man. Sorry, I was thinking reinsurance. Yeah, man.

Sorry. Yeah, man. So because I have that reinsurance policy, they have to amortize it, which is an underwriting asset. The underwriting asset is really... You get me? It's really the insurance money that they're putting down? I said, I'm writing, I said, is really. Get me. It's really the insurance money that they're putting down.

Sorry, you chipped out just now. You're saying amortizing asset is really. Underwriting assets. I mean, just be sure. Yeah. I mean, how I see it is this. You're on the right path. I don't know.

You're pretty much saying. Yeah. So basically, when they said accelerate, this. You're on the right path. I don't know. You're pretty much saying. Yeah. So basically, when they said accelerated, basically we have money to pay them still. They have money to pay us. Pay us. Meaning if we're putting ourselves in the, I think, let's use real companies. No, it's too much iffy ground.

We use A and B. So I'm company company a you're company b you are the reinsurer you're lloyds of of your danai of london i'm in jamaica i'm offering insurance on cell phones right um i'm putting a hundred thousand you say insurance on this cell phone everybody comes to me and it's pretty much average insurance policies 100,000 Jamaican right and you and I, Danais of London are giving me insurance on losses on a portfolio of phones up to let's say maybe 60 or 70 percent right so for every the phone loss essentially you will give me 70k and for every phone loss i will give the customer 100k and of course i have an agreement in my contract with a customer that says you know any extra cost

i can take out if maybe i can repair it instead of replacing it i will do that why because i want to cut down how much of the difference at 30k i have to take out of my pocket. Why does that matter? Like, why would anybody go in that kind of business? Well, unless you lose your phone, I don't have to pay you any money. But every month that you don't lose your phone, you have to pay me maybe five grand or 10 grand, right? So you're paying me 10 grand every month or let's say seven grand every month. And if you lose your phone or get robbed or

the screen break i will replace it if i can or repair it or give you a replacement like i said or i'll give you a hundred grand or a brand new one right danai's company b gives me 80 or 70 out of that hundred grand in the event that i have to do it what you're doing is you're cutting the risk and for him to give me that 70 i give him maybe two grand out of the it's a three grand out of the money that i get from you every month right you the customer listening no then i have a nice little sweetener in his package which is why i chose him as I chose to reinsure with him, which is that him say, OK, every year I will give you back 2% of everything you give me as a lump sum. And also, just because we're a regular business around the world, you know, we don't do money. We don't do money we don't

do business with money immediately we obviously have balances with each other right so you listening here right now person listening to us on the podcast you lost your phone and you um did an insurance claim with us and we paid out a hundred thousand to you and we said to Danai hey Danai we have to out 100,000. Give us the 70 that you have for us. Then I say, cool, no problem. I'll pay you next month, end of month. That 70 is a receivable. They are saying here, again, this might be a huge misunderstanding of it.

So if we're wrong, somebody feel free to let us know. But my understanding of it, my assumption of it is like this. The contract now has linked to it that receivable the 70 grand you're supposed to pay me and maybe the little two percent that you have for me from last year's um total money paid to you right the bonus but i just got bought out and my new owners have terminated the agreement and because the owners have terminated the agreement. And because the owners have terminated the agreement, finance rules say that they have to amortize the underwriting assets, right?

They have to put the charge up front. They said they accelerated amortization. That's the problem with me. Accelerate amortization of certain underwriting assets resulting in a one-time assets. Accelerate part. Accelerate part. Cool. I get that.

Fine. In other words, I moved it forward. Yeah, so maybe we didn't have to amortize it until Q2. We had to amortize it for the rest of the year. So maybe the contract was the rest of the year. We took a little piece every quarter. But instead, we're going to set the full year right now. Why?

Because we're canceling the policy. Now, when you take a hit like that in just regular business, not thinking normally, straightforward, you don't want to have to take a hit like that, right? So you would show evidence and say, hey, I don't want to put this negative 200 on my books. Here's this clause which says that in the event of early closure of the policy we will have a five percent fee and we will return all outstanding balances and blah blah blah to you

right um this agreement does not have that policy so they don't have that to show no you could go maybe go to the reinsurer and say, hey, let's draft up something to show that you're going to pay us it. But I am saying that I can see a path where you definitely go to the reinsurer and say, hey, that money you have for me, we're going to pay it, right?

But no, you can give me separate paperwork or you can sign it with a grace group. And then when the auditor says, okay, if you're amortizing this contract, you have to pull all the costs from now to the end of the contract forward, unless you have something to show me that you're getting some cash back.

And I go, no, the policy doesn't, the contract doesn't have any clause for that. Okay, well, you have to put the negative whatever on your books. No problem, cool. I don't put the negative whatever on your books no prob cool i'm gonna put the negative whatever on my books why because i also know that one you're about to get reinsured within the group a lot cheaper two maybe two or three quarters from now you're gonna pay me you being you than i company b than eyes of london you're gonna pay me back that money that you have

for me because we have maybe a gentleman's agreement or a larger agreement or maybe there's some transfer between both re-insurers right and hey you give me a credit charge here you and i will give you a negative there and on the group gk policy maybe they get a negative to the tune of whatever this amount is assumption on my part again i don't know straight speculation guys all right but i'm saying i just i don't really think that this money isn't there i think that they pull the money up i think it's a a loss that they didn't have to take which i did say that they moved it forward but i also i don't think that they're walking away from the money that's what i'm trying to say to you i don't think they're walking away from the money this isn't the kind

of money you walk away from all right to be clear again i'm not saying i don't understand you i'm trying to say to you i don't think i'm walking away from the money this isn't the kind of money you walk away from to be clear again i'm not saying i don't understand you i'm just throwing doubts all right why why exactly would i walk away from 323 million or anything in that range like think about it is them canceling it you know no no no the doubt is actually the doubt the doubt was telling me from I don't know how this actually worked or

accounting around it I was just figuring it out so that was where the doubt that is what I wanted to hear I'm surprised that I haven't seen anybody usually you know every now and then

you see people talking about I don't see anybody talking about this it's just and I've been waiting and wondering and nothing nothing usual talk is cheap yeah yeah i said it recently commentators are nothing there some are really fun very often people look at the same places over and over or they have a

view of our stocks and they will look at it they're not going to look at it more than so that type of thing so and here some people don't talk about certain things they say cool why so you go well or as you said um it's funny this is randy's own own words so may i start the conversation yeah i'm not people do it that is true that is true which is why i'm here saying it on the podcast um but but it's to draw attention to that the possibility of there being something there and what it is is me i just waited enough time for people to get over it and start looking back at what was said and think whether or not i'd have suddenly lost my mind to be running into a company that is burning down

and be here happily grinning. I suddenly decided now at this time to start making dumb decisions on the market. I would. But my point is, this is me talking about Key finally. It's like it's obvious they don't they didn't and

everybody all all of the things i saw said about it were to say oh the fundamentals were supported these guys are making a loss and then the second loss which is one we're looking at now came out and oh wow an even bigger loss wow when it's i mean i say that that gk the thing is it's funny no you know they said the funny thing is they say yes there's a gk taking over but still it doesn't warrant the i'm like it doesn't what you believe in gk but you don't believe in what they buy that's that's weird to me somehow gk the best thing ever but what gK by a key, they're most fool now. Like, you think they're smart until they don't align

with whatever. But I don't know. It's common sense, I guess. And then the thing is it's not like they didn't say a lot of things from long before, right? So it's obvious that there's a lot of stuff coming. And if you look at what GK is, the grow-up people know this. You look at what they do is the grow people notice you look at you look at

what they do for money and who they actually are gk has what two or three insurance companies under them already why would they buy one more no granted yes murders and acquisition but then buy one a crappy one and put themselves through hell to do it and then gave up five years of a tax break something a muslin or something they pulled food straight off sagicore plate over the last year going under canopy hinting right earlier i said you know the sort of thing to fall under I said, you know, the sort of thing to fall under. Unintended, Randy. Exactly.

There is Canopy, which they own 50% of. I don't know what's happening there. No, you know. If you wait until the race is done, you can't bet on the race. You have to look at the early signs and make the move. Canopy is an insurance company. Key is an insurance company. I mean, it's not quite the same.

The insurance is the next banking, right? Say the thing. Insurance is the next banking because you grow in wherever the area is that you have the least limits and the most gain, or so you feel. And when you notice everybody's going towards it, it's not accidental insurance is a new banking you cannot there's only so many more backdated service charges you can hit people with

people come to you know what jamaica is under insured and everybody know it so who you think is going to solve that problem now the money man name that's going to obviously do it and if you're and if grace is saying it very clearly that they think the way forward is through mergers and acquisitions and then buy a crappy insurance company and then own another insurance company that isn't really touching the market

outside of the fact that they own 50% of it, which means that I'm going to have to report the numbers anyway. I wonder who owns the other 50%. Could it be like a set of people who are notorious for using the market to gain? So maybe it's a cheap bet to buy a key at $2 even if they have a loss because... It's a good thing I made that bet.

Same to you, right Randy? Worst case scenario, Grace makes it better. That's the worst that could happen. The worst thing that could happen is that Grace makes it better. There's another line in that article which is that Webby said, I don't want to get i don't get it wrong i want to read the exact words it's a simple line though it's a scoop for collaboration no it's not that it's in the meantime he sees the plan they have to turn the company

around yielding results matter of months yep months because the only problem that key had was money and guess what grace have a lot of money and what do you do if you have a lot of money you need money you use other people's money not yours which is why the line before that says don webby who took over as chairman of key from natalia goblin gunter one of the legacy shareholders says the board is still weighing the likelihood of a rights issue to raise fresh capital for key insurance. So maybe I wasn't dumb. Maybe it was just somebody doing an analysis, putting together dots, and knowing how to look at and understand a business and analyze a company.

Actually understand business and understand companies and understand finance and understand the world and analyze a company actually understand business and understand companies and understand finance and understand the world how things work that's what we need that's what the people dying for people who can do that oh god so anyway i said all that to say that key is is great right i know it's at seven dollars again you remember i already tried to go uh message you and say maybe i wonder if you can post a profit was a profit this quarter you know i want to post a loss you did you did a little bit creative that i mean my plans have them still making a lot yes definitely but i can see them giving me a surprise profit

yeah but i want i want i want the last is because that's even those we can do it out to be this you know i i don't even want it for that reason that is is you know what is not the last because the financials are one of the milestones that i have but the real thing i'm waiting for is to see what they're doing within their insurance yeah gkfg i'm waiting to see what's going to happen there true money is money right yeah let's see what that move is that's what that that's a move that i suspect key has a key role in pun intended yeah anyway so keys know up in the past uh what is this and a end of i thought it was the end of j it's not, it's last week so over the last, from the 24th, last week Friday

till today, over the last three days he has risen yep, as I said the movement has come since this news article came out 44% between Friday and now hmm news article came out. 44% between

Friday and now. Hmm. Yet it was weird when I was saying that I'm buying it up to $7 months ago. It's a good thing I never have to wait on Glina to write the article. Oh well. What else is nice on the market that is in the qwi portfolio yeah big up qwi big up big up john jackson team there david uh

yeah what else is nice on the market vm's numbers came out just came out and yes i see a reversal of their fortune they posted some numbers in the first quarter wasn't so hot that poster loss actually 36 million dollar loss hi everyone this is jillian from financialsensibility.com that's c-e-N-T-S-I-B-I-L-I-T-Y, financialsensibility.com. I'm having Excel classes in August, beginners, intermediate, and advanced level classes. And if you want more info on what's going to be covered on each, you can find it out on my website and the cost for doing each as well. So it's August 13th,ust 15th and august 17th

so check out my website and sign up to learn how to use excel or brush up on your excel skills see you there we took a break and we're talking about something else but we were just mentioning vm and that you're saying yeah they've got the fortunes turned around they posted a loss in the previous quarter so the few one they posted a loss and then now they posted for this quarter they posted some profit that profit is better than so it's meeting simpler last year so yeah we are looking good the thing there well i mean looking at the numbers the numbers are good cool um if you look at the previous quarter you realize that boy the revenue hit them hard so the total revenue net net interest income and other operating revenue for them for the first quarter was 268 million and the quarter before

that was 438 million so you know already it's said boy i mean problems and they did not clear those expenses so they ended up with a loss that quarter so now you got thing there revenue beating same period last year and profitable now interesting bit yeah was interesting bit yeah was these if you can come from fees net fees and commissions 184 million computer tone 200 200 million last year 207 207 minutes yeah so big jump cream of a lot big big big jump you think is pushing that? Unitrust. My first thought. Unitrust? Fees. Ah. Or, well,

actually, I've been thinking about that. Because I said capital markets unit. Fees. Yeah. So a strong... The capital market, is there equity in it? Is it just equity? It's investment banking, basically. Okay.

So the Barbados move. Yeah, and they'll make bonds for people and charge them fees on it when they make the bonds. Yeah. It's a strong performance from the asset management unit and then classic income and property portfolio so the fees on capital market unit specifically gave a

fee increase of 98 million so you get me i can't see where that 80 million jump in fees overall can fall within a 98 million jump in those capital market unit fees. So it might be a strength of that. You see that nice line? Our asset management unit will, in the future, benefit from the expanded distribution

channels. In other words, the roads that we have paved is going to make it nice and easy for them to keep making more and more money it's a bigger VM that we're dealing with now pretty much yeah, yeah, Resworth, Bertrandson as you say

yeah, the man not the man not play at all yeah, the man not drop any catch, that whole group as a matter of fact, and you know what I like about them they Resworth and Michael Morris, is that the name of it? I saw their A about them they did resworth and michael morris is that name of it i saw their agm they streamed the agm the other day according to their own shares yes yeah yeah i like that they care about it they care about it and it's their own seer shares

and they seem to be serious about the market and what's happening and them look like them care about them share price i think when you're with a company they were vested interest in the number three holder he's a the number three top shareholder and he's saying that he has the most shares and as an individual so number one is vmbs number two is one of their pension schemes which are VM pension schemes. And number three is Rez himself. And his wife.

I assume it's his wife or his mother. I think it's his wife. Yeah. Anyway, that is great. That's an inspired CEO. That's what I want to see more of. Yeah, man. Yeah, man. does he move his unit does he actually trade has he been buying more uh let me check actually he sold a little bit a little little bit i went to 2018 yeah he had six point six point five seven yeah six point four now

okay so well that's good i think he was taking gains because if you look at it, he was in a good period I think between June and March 20. Yeah. What's the VML? VML not touch. What's the high cycle? It went all the way up to 11, 12. You're probably beyond that.

It's probably beyond that. 13, 99. 52 week range. Yeah, I know it went double digits in the past, so you can't knock that. You can't knock that dog. You know, actually, if you better see less units and more there, meaning it says to me that he's active

enough, that he invests. That's somebody who knows the market. Don't just own that share and leave it there. It says to me that somebody invests that he has less. who knows the marketing don't just own that share and leave it there it says when somebody invests that he has less best for reasons because with more it might just be you know everybody learns to buy if you have a lot of money and you have a stake and obviously has a huge stake so it makes sense for him to have a business and care about it like that so in buying shares in the business anybody can do that in them don't know but less especially, especially less, and it's a financial institution, and it's an investor,

less I like. Less says to me that that's somebody who touches the market and understands the market. Yeah, more of that. Yo, at $13.99

his stake, yo, I'll be very motivated as well. He gave himself a headache. I'll be very motivated as well. Big up still

because this is growing from a little bit to $2.33. Yeah. This man made himself happy with his own hard work. Right? Hard work pays, guys.

Now I'm impressed even more when I see something sold. Big up Stills. Yeah, enough. They got major respect when I see that. I think I've been respecting this guy yeah yes yes you have been mentioning him since it's ever since your days yeah since before since before you yeah before you even moved what else in the market have we not spoken about in a while i know we mentioned mail

papa we've killed that they has more than killed in this happened they don't come back on it right mail pack content expected rise drop an inch slow upward rise again mm-hmm what I think happened was that the people that were excited about it the noise happened around it people are jumped in for the dividend jump here and jump back out but then the natural pull of what they are how good they are just has kept moving them up and who knows that their report soon no you have a bunch of reports coming out the next couple of weeks going to be very very hot I won't carry on too long I said I was going to keep very very hot uh i won't carry on too long i said that we're going to keep these things

wrapped up so you can tell me then i what you're excited about all right i'll i'll start i'll tell you one that i'm excited about and then you can tell me one i go the one i've been excited about the last couple of weeks is t-tech yeah it came out of a question about which company yeah it came out of a question about which company i think stands to gain the most from um covid from corona and uh it even came up on that episode was with every eight seven six invests yes yeah well people would have heard that part as yet so you guys are in this before you hear that part but it came up with them so big up eight seven six invests again um and you guys will hear more people like so we don't want to bore you with it too much so we'll be chopping those up and sending them out still

little by little sorry guys edits on that one are hard there's a lot of background noise to get rid of um anyway t-tech is a company i think that covid19 listed company that I believe COVID-19 might actually end up having the best effect on, at least in the near, definitely in the near term. Because one, everybody know about them, but nobody really pays attention to them. So they're mostly ignored, have been ignored. Two, the operations, they were slow years ago. I think they brought in a newish guy, I don't know if I'm still new anymore, their CEO, Chris Record. And since then, we have seen a heavy investment in the business. We even spoke about a lot at one of the growers that did a couple of weeks ago.

Yeah, I don't want to oversell it. I don't want to sound like I don't want to have flashbacks to key. At this point, I feel bad talking about stocks publicly sometimes so anyway this is me mentioning t-tech that maybe you'll find somebody else interested in so it's a one company what do they do they're an it company they did in my view a lot of investment in themselves last year and their staff they're tooled up then they mentioned getting a new big customer they have one huge customer i suspect is gk because that's where they're coming from they tool up their board with um the ex digicel ceo justin marine on it um and he's now the md of appliance traders um chris record himself has been put in with a lot of work

and pretty much guys everybody know two things from corona you know so you're going to be home a lot so obviously work from home will happen and i will have're going to be home a lot. So obviously work from home, what happened then I will have food going to eat at home. We all accept that the food companies, the distribution companies might have a nice rise from it. And we see Lascaux showing some of that, hopefully, seems to be showing some of that. But nobody seemed to remember that there was a company and the exchange that specializes in work from home in fact set themselves up internally

to be almost 100 percent work from home from long before corona and the corona came at the right time how them start to help all them clients them companies those we all talk about how backward jamaican companies are tech wise t-tech has been talking about how they have been modernizing and helping to modernize their clients and partnering with them. And they say openly that they've been so busy helping their clients get into the new work-from-home methods and setting them up with new work-from-home software,

servers, migrating their clients to a digital workspace and style of working, which is their business, which means that while everybody else was balling these guys were working hard i believe the ceo even said it in his report that their team has their team has been kept busy throughout this season and throughout that entire time the stock has just nicely meandered in the four the mid four low threes mid four and i think i bought some then i bought quite a bit and people start to know about it now i can tell that a lot of people see it now since the start of july has grown from four dollars and 70 cents to currently it's at six

dollars and 87 cents so that is less than a month 46 growth within the i mean damn key did that in three days but yeah t-tech did that within a month and t-tech hasn't reported the numbers yet so i think that the june the quarter ended june 30th to report and they report that in a week or two so by mid-august they should be reporting that and i suspect that what they will have is greater profits from having helped their customers, especially their larger customers, not just GK, but their larger new customers. And they also have a presence outside of the country.

They're in Guyana. They also have a presence in, of course, the US, Louisiana, Miami. They do stuff for clients in Central and South America. I think they must have their money in Jamaica too. So that is divers diversified and they sounded like they're gearing up to even go further out so if there's one company i'm excited about from this whole thing is t-tech and i think it's uh i think it's i think it's something that people have been ignorant but i suspect people know about you know because i see it spiking yeah right you see it's spiking before results it's that six something on and who knows how high it might go and i suspect it would have a really good result

so i did some work on the pe ratio and if they beat last year's q2 which i'm about to report if they have beated if they beat ted wow wow fully done if they beat last year if they beat last year's profit um by like 30 i think they have already made the whole of the profit that they made last year in six months of this year in the middle of Corona. So that's why I'm excited about them. And outside of that, the concept of the company and what the company provides is so necessary and so normal in terms of the new way of working and not just talking corona just just in terms of tech being every business being tech it's just the normal and they're i won't say they're the only company on the exchange specializing that technically pbs is kind of in that but pbs is a much different beast than t-tech so maybe t-tech maybe pbs is more like t-tech in the 10 or 20 years from now because with a heavy spread and heavy footprint right now they're in the growth stage so of course we don't

buy stocks where they are we buy stocks where they're going to be I'm excited about where T tech is going to be so that's one that I am excited about how about you Danai? I think mine is no surprise don't say Cygnus the surprise was already the excitement was already I spoke about it on Twitter. Seprod. Seprod. Oh yes. Long call. Yeah man.

What did you tell me about Seprod? It's not this year. Not this year. No. Oh way, way, way back. You called this specific rise from before they were publicly talking about the sugar. We used to look at the sugar and say boy really beating them bad. And then, and we saw they spoke about it in a weird way where it used to look at the sugar and say boy really beating them bad and then and we saw they

spoke about it in a weird way where it used to be like boy it's bad for us but we're going to continue pushing for it so we really thought so we thought at board level there was also interest in keeping the sugar on the books because they really wanted to make it work but boy yeah yeah there was a time when they were trying to lobby the government to get the losses to get like the tax credits up i think moved across the group or something like that get the classroom across the group yeah that's a long time i feel that's either a year or two ago so it's been a while but specifically as i spoke to on this on this podcast was the sugar coming out of the books and being compared so when when the comparative previous are coming so after the sugar is coming

off totally the last is run off operations gone no more paying out heavy money to the no redundancy packages paying out anymore then we're going to start seeing you know comparative pre-race boy we do have this 230 million dollar sugar loss on top of that what's the product on top of that they started streamlined operations with the betty they got some they got betty from nestle and then now you see them moving back into the only Nestle where they think they're nice a big word wise a big big in the milk game and they see three milk knowing Jamaica so everything on top of everything coming together they had the milk plant so the

dairy plant in Baguio I believe they what they bought it from necessary to the to fix it up and they said they said very specifically that they think they have a lot of space in there for current operations. We don't fill the space. We plan to move more people in there and rent it to people who need it. And now I see that Nessa said, Nessa and them now saying Nessa said they're going to that coal manufacturing agreement i could be wrong you know yeah man i'll find it but basically separate yeah they're looking good and with the way covid settled people are more at home and it's not that thing there so the type of products they think so we think already and the type of products they push out the water and stuff

and the heavy consumption of bottled water wasn't necessarily at home it was really part of the keep events hotels it's everywhere but i don't think the home thing was where most of the market was you know drinking a regular 500 milliliters of bottled water at home and i don't think that's a regular consumption for people of water. Speak for yourself, bro. Most of Jamaica, I drink water all the time. Actually, I have bottled water. Nobody

buys a 500ml bottle by the case. Well, I need water as long as I'm alive. NWC helps us out with that one us normal people are with that one you forget how the Spain life go what do you mean? water go regular still so I have no water right now

more like I said water come back every now and then water come back regular yeah boy it's been feeling like that since Corona still. Every now and then, water gone for the longest time. And I guess they figure, oh, my toe is not for baby, right? Right, NWC? Right? That's what you think? Separate. I was comparing separate.

Separate, so they're both in manufacturing, they're in food. But the type of goods they give. So, also, the products are home consumption items. So, consumer items. So, yeah. People home. I'm not seeing where they will follow, if anything, their benefit to some degree

on some items. Everything comes together, Sephora is looking good, and they posted some good numbers, which was in line. I went to message the day before and said, I think I even messaged, we spoke about Sephora before that, one hour ago on in our chat

i was saying boy look i i think they're going to look good and the day before the results come out of the message and say i think we buy someone separate never message you never buy because work was holding you and then lo and behold results out strong have they have they flown as a share price move there so around 51.99 something at 3195 and it's not 55 57 so that's almost 10 percent they're on six percent so six seven i wonder i mean this is a matter of days so yeah so six seven percent six point nine or seven percent what have this yeah cover your fees and you have some in there if you put a big enough stake seven percent is nice yep that's a great dividend yep i'm still bullish so you can buy in and i and i jumped out at this level and you'd have made more than most dividends yep yeah speaking of which i

do in advanced grower we did short-term investing last month. For last month, Advanced Grower with Shanice. Yo, everybody came and it was properly good. People still messaging me asking, when are you doing another one? And of course, people weren't there asking to come back, asking when we're going to do another one back. So I've been talking to Shanice. I think Shanice should come with something soon. So anybody who hasn't been looking out for it, look out for it. for it the shorter investing class from shanice let's see what she comes with in august hi everybody

sean the top striker here so this sunday august 9th is going to be my short-term investing workshop it's going to be a nice not too complicated interactive online workshop where i'll go through my short-term strategies and the tools that I use to make these striking moves. So if you've heard about some of my market plays or you want to know how you can successfully make them or if your portfolio is taking a hit right now, you want to see if you can learn to trade against the market volatility to rebound on some of those losses, then this is a workshop that you'll definitely like the cost is 65 us dollars you can register and pay at everymicle.com slash technicals the link will be in the show notes so join me on

sunday as we take a practical approach towards short-term investing on the jamaica stock exchange this movement reminded me of that because seven% is enough if you have big money. And unlike many stocks, Seprad can move big money in and out, yeah? Sometimes. 57,000 units yesterday. 24,000 units today. Money. Yeah, that's some heavy money.

57,000 units at $57. It's $3.2 million right there. Probably half of the adding fees, or 3.3. Adding fees. And that's just on one day. Seprad can actually move money. For the people who have a little bit more coin in their pocket. But Seprad, with those numbers that you come up with, Danai,

I mean, you slightly mention it when you touch on the milk. Because we were talking, one of the things we used to talk about, was it last year or the year before from the original gem big up the original gem with the export oh yes yeah for milk uh yeah i know i know we see them doing it right they did the very first export region and if you look at the export number actually their total revenue for the period includes export sales of 945 million. 945 million. Last year, that was 807 million.

So they've added 130-something million of export in this time. Wow. Yeah. So something's going good. Wow, how much money used to come from the sugar too much i can look at the comparison of that yep exactly the quickest thing i can draw for the sugar is the sugar losses so 330 million are on there well that's the losses and they might have whatever in there right well i mean like when sugar was contributing it never really ever did work for them yeah but revenue wise yeah it was supposed to and it ended up not

ever did work for them yeah but revenue wise yeah it was supposed to and it ended up not yeah but a big up richard pandoy you know him in that plane obviously rolling out a hell of a dream yeah separate separate separate looking good the man i expect more from well good yeah made by seprad must be good they even spoke we spoke about it very recently about what they want our possible ventures for the sugar land. They might lease it for coconuts as some income for them. They don't worry about the whole coconuts. Actually, they do. They just lease stuff and the people grow coconuts on it.

So it's sort of like a JP thing with a mother farm type of thing. And then they're also looking to also say that anything that was produced, they're looking into making things say that anything that was produced but they look and make looking into making thing there probably added products so coconut coconut items basically you can sell coconut water coconut this coconut not just that the interior of bmw seats are coconut husks that's what it's made from the there's there's so much that you can do yeah you know the coconut thing like 10 years to make a farm, so by the time you get around to it,

you have to find all the uses for it. Indeed. To be coconut farms and also making some good money. Yeah. To this day,

I'm angry that when we were growing up, we were made to think that farmers are poor. Trust me. And farming was a poor thing to go into. Exactly.

Town people alone fool like that. Yup. Because the CEOs smart enough to see in the conference hall like Richard Van Duy or the Digitalian Town. I don't know about Stephen Whittingham but I know he's definitely digital i know i mentioned him again because earlier i said that most people would say yes to it or are not at it but not really understand what it is and quite timely these guys these guys are smart you know quite timely there's an article out today in today's green as i put that in the show notes also it's talking about

gk refreshing the digital transformation strategy and what it means. So it's a good little idea. So it's in the show notes. You can read it to get an idea of what it means or you can realize that where they're putting, well, what they have put Stephen Whittingham in charge of is a major thing for the group to highlight. They point out the moves that they made

and the lessons they learned from trying gk mp and looking now into the problems that they know will happen in future with the financial side of the business and the benefits from that so stuff around like know your customer and how even knowing your customer and this is me adding to it so let me not misquote i'm thinking ahead here is thinking that even how knowing your customer through one part of the group allows you to sell maybe a service in another part of the group to them so on and so forth and they actually touch on some of that they touch on kyc and the high low chain which is under gk also and how you know the initiatives that they can they can push to get them going so big up him

to that article is in the show notes and big up the rest of the ceos who helped us make profits in the time um i feel like i'm forgetting something specific that i want to say before we wrap you have anything you want to before we wrap the night i know you had a birthday the other day i have one over here but i there's something else it's going to bother me i'm so sorry yeah well it'll come to me uh thank you guys this has been this week's earning season another nice one i think just myself and danai i hope it's good enough for you we really put a little review i remember what it was the night. Half a year mark has passed.

One, we don't say nothing about, well, we haven't finished the review, but I think we said from early that we definitely would have taken a hit in Q1. But we still don't know exactly which one of us lost more, right? Either you or me. Maybe we can get a do-over. But what I did want to say was that i think the june report for the main market is when i realized the value that we put

out here that's not a normal thing in a market of 87 companies more than 87 options on the market but 87 companies and and six stocks have gone up year to date on the main that is pulse 138 student living key insurance epi limited kingston properties and portland jsx as at june 30th and we call half of them pulse against the crowd 138 student living we We call her early up, Big Up Miss Jilly J. Key. So, in case you doubted your prowess, sir, doubt it no more. It literally was just that point.

I remember, it's a big deal. I feel like I've made a big enough deal of it, but it is actually a very big deal. You don't sound like you care. You don't,

you say, huh? Not really. Not really. You don't care. You personally call at least three of them i'm going to have to edit out the whole of this i just said goodbye but it's a big deal it's a big deal it should be made a bigger deal of if in the middle of a recession you have a trader who there are only 10 stocks that go up and you have a trader who there are only 10 stocks that

go up and you have a trader who find three of them alone like his picks is these three picks that's a big deal true but that's funny maybe we can pay my boss well unless you have anything else i'll wrap it i might even just chop that up but that is actually a major thing indeed alright guys that has been our earning season I'm Randy Rowe at RTR on Twitter and I'm Denay

at RTR on Twitter see you guys next week yeah guys big up Ta woli pa money ral jesev. Bega 2000 alot a et. Ye che sa e befo eze 250 dalot.