Earnings Season - The State of the Market - 2020 JA Stock Market Review (Part 4)

Episode Date: June 19, 2020

This week @RTRowe and @HDanhai continue their review of the entire market, they touch on a little Fontana ($FTNA.ja) then delve into the big stuff starting with...General Accident ($GENAC.ja). Covering a little over 20 stocks in this episode, it goes long, but they make sure worth it, as always.Come for the gems💎, get them 20 at a time...Contact Us Here 💻 📧 [e-mail]💻 podcast.everymickle.comFollow us on Twitterwww.twitter.com/Earnings_Seasonwww.twitter.com/RTRowewww.twitter.com/HDanhaiLinksCanopy's Financials - https://bit.ly/3dfDyMMRichard Pandohie's Tweet - https://bit.ly/2CpmdohShout-Outs@RichardPandohie who leads @Seprodgroup, @PhilburgInvests the Seeker of Gains, @Tessellated who handles music like magic, the #TopStriker turned teacher @ExaggeraShan and the Creatively Cancelled @SmittyRoyal 🤣 ★ Support this podcast ★

hey guys welcome to earning season this is daniel hall at hd on twitter and i'm randy rowe at rt rowe on twitter i'm surprising at at rt row first right this is at rt row who is randy in real life oh god and this is earning season as i said you never said that i did i started hey guys this is earnings but cool continue oh well guys this is the jumbled up episode it's not but um we've given you guys a lot of mixed up not mixed up but a lot of um other things for the last few weeks and we're just going back to our long promise market review as actually talked to danai about how long we've had it lagging that we are now thinking of doing maybe not maybe that's what we're gonna do today a blitz oh i really hope you guys aren't hearing that timer which just went off

in my ear uh but we're really just doing a blitz review so what's a blitz review we are going to try and do eight minutes though actually i'm picking eight well i'm picking eight because i just did five and it seemed very fast so we're doing eight minutes on each company either less if it's more and more we're not going to kill ourselves off but we're trying to the eight minutes or we talk about a company we move on quickly because we do want to finish this review and get on to all the other good things that we have so we are going to try and get a nice review in on the flip side it's yeah it means that's for companies here what was that eight minutes per company yeah sir. What was that? Eight minutes per company? Yeah.

That's a lot of time. It is a lot of time. I know. I know. I know. It's almost eight hours. We're definitely not spending eight minutes really on every company. But I have that there as if the timer goes off on the same company that we started. You got it.

You got it. Sounds good. There we go. Yeah. A little bit of restrictions. They said through constraints is where creativity

shows itself speaking of creativity big up Smitty Royal oh boy big up Smitty Royal who decided this week

that he wanted to get himself cancelled so he said we both can drink some pen and jail man yeah oh you're funny actually I stole that joke from Nigel wanted to get himself cancelled. So he said... We both can drink some Pinal and Ginger, man. Yeah, you're funny. Actually, I stole that joke from Nigel.

Because Tessellated, that's a big track. Big artist, actually. Yeah, big artist, so a big track. And you're really, really, really talented. I actually met him long before Pinal and Ginger thing happened. I ran into him one day at a Virgin, a mine store. And yeah, him live the lifestyle, boy.

I'm really believing in him music. So glad to see it happening. And big up Smitty, picking the wrong enemies still. Don't diss the people who make memes, Smitty. Don't call them lazy. Anyway, Smitty can defend himself. And anybody who's lost about what we just said for the last two minutes, Memes, Smitty. Don't call him lazy. Anyway, Smitty can defend himself. And anybody who's lost about what we just said for the last two minutes,

sorry, but we'll get back to the things that you do want to hear, which is stocks. So we are starting off where we left, starting back where we left off. Yes. Yeah. And where we left off officially was Fontana. We ended there. So we did go into Fontana, I believe. Yes, because that's where I spoke about my thoughts on what was actually happening in the company with the blah, blah, blah,

with the pharmacy separate from the rest of the company and with them really making money wherever. I'm not expecting there to be a massive growth in the business during the COVID. Sorry, Tam COVID. Sorry, it's all right. Yeah, yeah.

It's one of those painful things, right? Because you got, I mean, the financials came out and they were, yeah, I hate this is right. Not to say the company is dying.

The company is fine. Yeah, the company is fine. It's just not making as much money as it used to. Well, that's not even true. It's making more money than it ever has. Yep. All fine. Yeah, the company is fine. It's just not making as much money as it used to. Well, that's not even true. It's making more money than it ever has. Yep. Right?

Yeah. It's just... It's a new location and all. It can't afford anything there. But I would hope it does that. Better I say that. Yeah. But the third quarter ended March 31st.

I saw them reporting less profit for this year in 2020 than they did in 2019 when they had less stores imagine that right yeah you know it's funny um if you look at the actual numbers of fontana if you look at actual results up to operating profit they actually made a lot more money all right the last year last year same period for the quarter ended March 31st. They made $34 million in operating profit. This year, they make $57 million in operating profit. But what they also have was another line called other income.

Other income. Unrealized fear value loss, other income. Yes. So last year, they had other income of $8.55 million so that added on to the 34 and this year they have a loss of 10.6 million you know it's really funny when you realize where the loss came from the loss came from their their their their financial holdings their um the short-term unit trust investment unit trust investment. Unit trust investment. So after the man actually start make some money,

now the Blurred Neat unit trust turn around and beat them up. It means that their broker's product, a unit trust, actually made such a big loss that it erased their actual day-to-day core gains. Isn't that funny? The industry is what cost them money. Wow, I thought that was poetic. Anyway, so you know about Fontana? Wait, I'm dining back there. Let me see if I agree with what you just said.

So they made a loss because of their unit trust. They didn't make a loss you know this oh they got me i lost on the unit just for the quarter but they they recorded lower profit yeah sorry yeah it sounds like it sounds like you're saying why are you saying what yeah yeah you're right thank you for the numbers in front of you that is true i've seen this is the basic numbers are in front of me. So what happened is that they made more operating profit, but the, their holding their financial holding, which is in a unit trust caused them to lose 10 mil, 10.6 million.

And that came out of the 57 million. So they ended up reporting 46.5. Then they have finance costs, which also doubled. Yeah. Yeah. And that was a major thing. So the doubling then the finance costs which also doubled yeah yeah and that was a major thing so the doubling of the finance costs and the loss from the unit trust pulled them all the way down to 25 but interestingly you know if the unit just 21.59 said the thing there said that that um that line item was zeroed so it didn didn't have a loss on unit trust, then they wouldn't have beaten the profit by much.

Because out of the 57... It would have been like 31 million compared to 29 million last year. 31, 32 million. So it would be barely above... 32, 33, yeah. It would be barely above what it was last year. That is true. So the finance cost

is really what the, the, um, combination, combination of it. True. True.

It's like, it's like basketball. You can't, you pay attention to the last five minutes, but the truth is every point from the start

of the game counted in the same way. I can look on the loss because it's such, it's an obvious point on the for the unit trust for the unit trust loss affecting their profit but the truth is everything affected their profit including the doubled final the almost doubled finance costs yeah yeah thank you for that i'd love to see our location break down since yeah Yeah, I would. And do you think they'll put that in their final, their fourth quarter?

I think not. Maybe not. I mean, well, they might if it looks good for them. They usually give us nice things. Yeah, if it fits the narrative. All right. But let's go. I'm starting the first eight minutes now.

So, jumping to GNAC. I'll take it. Sure. You want to take it? All right, so GNAC, General Accident. Boom, what them do? Insurance company, general insurer. And they dropped their results recently also.

They dropped their results that ended the quarter match 31st, 2020. So they had one month. I'm going to be nice and call it three weeks. Three weeks out of March was Corona for Jamaica. So I will say that they had three weeks worth of Corona impacting these numbers. And this is their first quarter. So Q1, they made a profit, a strong profit, actually. This stock actually spiked since the last time we spoke.

This stock actually spiked heavily because this is the first time they're reporting both Trinidad and Barbados. Am I correct? Or are they just reporting Trinidad and Barbados? Barbados is the first. They're just reporting Trinidad and Barbados. Am I correct? Are they just reporting Trinidad and Barbados? Barbados is different. They're just reporting Trinidad. Barbados is not coming yet, I believe.

Because Barbados, let me actually go check it and stop talking before I talk solutions. Well, for the quarter, for the first quarter, what they had was profit of 74.7 million versus 30 million the previous year um last year meaning their financial year they had 651.5 or five 651.6 million dollars in profit and that was against 10 billion dollars in revenue

this quarter they have 2.5 billion in revenue and 74.7 million in profit and that that revenue is actually lower than it was same period last year because same period last year they had 2.7 billion in revenue so they actually have lower revenue and when i say revenue here i'm just talking about the insurance that they have brought in yeah the gross premium exactly exactly they also have commission income which was lower um and higher claims expenses but what they did have was an increase in investment income. I won't go too well. I'll do this one time so I don't have to repeat it.

Insurance companies generally make the money in two ways, from the premiums they pay them and from investing the money that they have from everybody's premium, what they call the float. And so the money that they make on the float is usually considered investment income. And the money you pay them for a premium is considered gross premiums uh pretty simple story even though expenses even though expenses claims expenses which is people actually claiming for accidents and so on went up they still had a

strong profit and i think the driver of that profit was one the other income line um there's no details on what other income is but it's probably investments or whatever else i think they're probably um for an exchange uh i think so probably and it wouldn't be it wouldn't be it wouldn't be reported as FX? So, other times companies fold that into their FX into other income.

Because you notice they don't have FX clients separately, I believe. Let me check. Finance charge might be, finance charge might be,

but other income, other operating expenses might actually just be that. Okay. Well, I mean, I'm happy for them. They've made a strong profit and the people who have been paying attention to the company for a while and a big up Phil Berg invest.

Phil, I know, has been sweating over General Accident. Yeah, for a good little bit. He was worried, which is understandable. He was worried before the results came up because there was a chance of the results from the Trinidad operations being a loss. Yes, I remember a thing there. So the Trinidad operations actually bring out

the interesting bit into it for me. So on their annuality report, the quarter they reported annuality report for, it was due to have the Trinidad in there, the impact from Trinidad operations. Because it bought a subsidiary stake, so it was reported in, pulled into the company, but they did not. And they said, in the annuality, you're going to see it, basically. Okay. So that's the December 2019 results which showed that.

So the RAT results came on December 2019 and showed the effect of the Trinidad in their operations. Well, so and the Trin trade operations were strong they're quite interesting they were they were strong yes but they had some bits to me that were quite interesting all right so i'm gonna get on my notes i'm sorry guys we'll have eight minutes though all right we'll have six and a half'm sorry guys we'll have eight minutes though all right we'll have six and a half minutes left over the eight minutes for this company i would not even hit it fight but while i've i'll go ahead so looking at it and all right so in the

online report in the audit report note 38 they discuss acquisition on 55 percent interest in motor one limited right on 16th september 29th on 16 september 2019 group acquired 55 interest in Motor One Limited, right? On 16 September 2019, the group acquired 55% of the share capital of Motor One, acquired business contributed revenues of $304 million, and net profits attributed to shareholders of $130 million for the year ended 31 December 2019. What's interesting becomes now, had the entity been acquired at the beginning of the year,

it would have contributed revenues of $373 million and net profits of $100 million. Ooh. But look on that. In the last quarter, it brings revenue of $130 million. But if it had been profits of 130 million, if it was for the whole year,

it would have brought 100 million. So it would have brought less if it had been for the whole year. And another interesting bit, 300 million in revenue for the last quarter, but if it was for the whole year, it would have been 373 million so that so the bulk of

the revenue from the king from from the actual company from motor one came in the last quarter so 73 was would have been the rest of the year and 300 in that last quarter hmm so it sounds like it's after them fix it is right when invite them fix it or the fix up before them what do you think I think I think in the fix up enough but let them buy it and inside somehow some fun a new business to it some some go on but yeah this is theary organized. Yeah. But if you look at the thing there, if you look at the Auditory Report, the most recent report, the March 31st, 2020, you see the thing there. You see, even though we had a stronger profit sure which is always good

it's just to me what it is it sounds to me because I've tried I try to simplify it so the simplification of it is essentially that it hints let me not say is that fat but hints to me that some fixing happened either right before they got it or since they've gotten it which to me is not a bad thing it means that the expertise is there yeah right and general accidents is one these are very often like yo i have some client or i have something i need i need a vehicle to run it through or i know i can get this business and the trend that market is there so you'll find some way some way somehow right and it's muslim they're across the caribbean i can see

them moving to thing there is they're moving back into bible on gennock and more than just by and more than just the group itself there there's something i don't know exactly where it is probably i'll remember exactly where it is, probably I'll try to find it, is where they said, most things looking to move. The original Barbadian company. Yes, they are.

And they said that the group is moving to move back. Not move the group itself, but moving back business towards Barbados. So they came here to Jamaica, became a Jamaican company fully, and they're looking to go back to Barbados to get more business for the group so

to me it's a group of the Caribbean mentality they have seen where they have deals with Caribbean all over

they play that sort of thing and then now we see so now we're sitting there we see they're not doing this moving to Barbados

and Trinidad but the next interesting bit now so you see a lot of other things happened for them in that last quarter for motor one right but if we look at the thing there the profit attributable to non-controlling interest so that's the other owners of jenna so in the most recent quarter it looks to me like motor of them had a loss because the profit I attribute to the other owners of Genak is $1.3 million.

It's a $1.3 million loss. So that means the subsidiary made a loss. So in other words, they didn't buy something perfect. They bought something that does need some work. Yeah. So it comes down to do you trust them to do the So in other words, they didn't buy something perfect. They bought something that does need some work. Yeah. Yeah.

So it comes down to do you trust them to do the actual work? Unless, to me, it's either there was a great fix in that quarter that happened. Or the nature of the business is that in the last quarter they have some heavy business one-off or recurring something one-off or recurring yeah

so it will be really interesting to see that the audited numbers for this when the year is done you think

yeah definitely or just when or when I need to come up for this thing there so that's that fourth quarter

or just the rest of the results for this year thing there? So does that fourth quarter or does the rest of the results for this year? I want to see them because that's very interesting to me. Yeah, it is actually very interesting to me. I need to find out what's going on so I can be ahead of the curve with whatever expectation. Yeah, but whenever they're done, with whatever expectation yeah but whenever they're done you don't want any g-knock i did i bought some g-knock about quite a bit of you know at so before these results were out my old looking g-knock was good so i saw you know somehow some of the one whatever whatever so i bought a good amount at 4.5 so it it's above, around $6,000. So, made some good money there.

Well, I can't say nothing. I mean, I own some G-NAC also. I can still hold some G-NAC. Yeah, and I've had a good long-term outlook. And them, I had a good long-term outlook before they mentioned anything about going back to Barbados or Trinidad.

Now they own Moto One, which is the largest. And they also have a license now to act in Barbados. Yeah. I mean, I like them over the next two years. Yeah. Oh, and that was a timer that went off eight minutes. So we spent too much time on that one, but that's good. As soon as I stopped deafening myself with this timer,

we are going to run to the next company, which is... Is it GK? It is GK. Grace Kennedy. The big dog. Yep. Interesting results as well.

Right? They put out the first quarter results. And I still have some homework to do on gk you do what kind of homework public homework or private homework we mentioned something the last episode about the lockup on the dividend declaration ah yes about about the fact yes the lockup of the owner himself so the name again they said they will close the company's register of number the number the list of members of the company will be closed for a certain period of time and we said you know maybe you think that maybe it indicates

something that's going on with the company but the data done himself mentioned that it's something they've been doing for quite a while now. Going back to... He posted, he said the first one he found was for 2016. And I'm going back and I'm seeing quite a bit of them. See May 10, 2019 is there. So it seems like it's a practice they've been doing. I really wonder what the hell that is. Why did we do that?

So that would be a good AGM question, actually. Yeah, I have a thought. It would be good. It would be good. But speaking of AGMs, I mean, they seem to be the bad people, right? Oh, yes. Yeah, they went ahead and just had their AGM. They had a closed meeting for their AGM on May 27th

in the middle of the coronavirus. So they actually had the meeting? They did, yeah. And they had actual instructions out there because it was live streamed, right? They said that the AGM will be held held and this is obviously before may 27th they said it was i'm just jumping into the into the letter it is with deeper great therefore that we advise that the grace kennedy agent will be held on may 27 2020 it will not be open to the

public we will however be streaming the event live so please check their website regularly for updates and further details will be posted and they did do that they did have it um check their website regularly for updates and further details will be posted. And they did do that. They did have it on their website. But of course an AGM, for those of you who understand law around it or at least are familiar at least with it a little bit is is

it might be perturbed because an AGM requires it to be all shareholders present to be able to vote. It should be open to all shareholders to attend in person. Yes, but voting is also a part of the process and you should have the ability to vote. So they did give the voting ability via the proxy forms, right? But while the proxy form is an option,

the Jamaican law says that, uh, it has to be a physical meeting. The Jamaican law does not allow for, and I'm paraphrasing JC here, the Jamaican law does not allow for digital agents. Yeah. It has to be in person.

And, um, I big up the J, I really have nothing to big up the JSC for. I big up the JSC for pushing along this issue. So it says to me that GK's AGM, again, I'm not a liar at all. And we should have started it with our advisory. I'll say say no that neither

than i and i are lawyers we're not lawyers we're not investment advisors none of this is investment advice we're going to be talking quickly and and very plainly about companies but at the end of the day it is up to you to speak to your licensed financial advisor about what to buy this is not financial advice all right having said that gotten that out of the way um i i i think that gk i could see a world where gk has to do over this yeah yeah because any decisions taken there may not maybe null i personally think that what they're doing is they're trusting that no one will sue them and no one will question it um it's really i think it's in the interest of shareholders that they did go far with it in this way i don't want to raise i think so yeah i agree but we are here to do different things very often

exactly and the lies are to protect us small shareholders, right? Because a lot of things can happen. There's law going back hundreds of years that shows, literally, no exaggeration, there are hundreds of years, over a hundred years, I'd say over 200, more than 200 years in markets where it shows the importance of AGMs and it shows the importance of giving, especially minority shareholders, their full voice and their full rights. So I will be happy if I see this done over and I hope it's done over. And I also hope that the law is changed to allow for digital meetings because we need to get there. Digital voting, digital meetings. I hope

very soon we'll get a following of earnings calls. Yes. I've been trying to encourage you to do some more man i need to feel like a shareholder yeah start talking you know the thing is the earnings calls are to give you shareholder updates but also as we can say in the u.s market and advanced markets that that they're to allow not just interested parties, but the analysts to have an insight into the company and to ask maybe early questions. It is to help guide analyst expectations.

And you know my longstanding background that analysts continue to be substandard. To be honest, analysts, they do have conversations with companies after results but it should be pre it should be pre-results should it not or no it's when results drop but yeah i have the questions on the results um but it's not an open forum and i don't know that i can call and say oh i'm an analyst independently and get you I don't know that I can call and say,

oh, man, it's independently and get you. Well, you can, you know, David has said, David, the data on David himself, JC Knight 2 on Twitter, but he has said he does that and he has done that in the past. Yeah. He's my son, hearing from me. Yeah, yeah, yeah.

We'll see. We'll see. We'll see. But it's good that JC in this has stuck to their guns and I look forward to seeing what the end result is with GK. But as it is now, we're speaking about the, um, just speaking very plainly about the results that they came with.

What was surprising to me, the results as of March 31st, 2020. They came with an increase in net profit, right? 1.45 billion Jamaican versus same period last year, which was 1.01 billion Jamaican, right? and they have revenue, overall revenue of 28.9 billion Jamaican versus 25.9 billion Jamaican same period last year. So this is a growing business, right?

What's interesting to me is that if you pay attention to the data that we do and our little dots, Grace complained about a drop in remittances and we know remittances is that is a huge contributor to grace's profit there's a 20 percent drop in remittances within the region but i see grace not showing it here at least so this still is up to march 31st so it only have for three or four three three and a half weeks of corona impacting it but it might have had corona fear before what they do have

oh sorry i just had the reset cough in my ear i really hope you guys can't hear that but uh what they do have is is is revenue is it you think it's from a new source than i well not a new source per se but a new um a new push meaning a new direction maybe they have been speaking a lot about a new direction their money services is still a strong contributor to their profit with 814 million in profit 840 out of that 1.4 million 814 million came from money services yeah and their insurance is in a lost position so that's impressive right because one arm of the group insurance is actually at a loss but they still have higher profit yeah yeah wow uh does this this last position it would be impacted by their latest acquisition no yes because it's from january to march and they would have when they were in there

in memory serves no so i think the acquisition period okay so this is my interest in this about key and grace. So in the period of acquisition, they wouldn't consolidate. So they wouldn't put their revenue, their profit, go straight down to the bottom. They would actually book it as an investment. So did I get it for more than it's worth or less than it's worth? If I got it for more than it's worth and I book a profit a land profit saying oh i book some gain gain on gain on acquisition that type of thing if i bought it for more than it's worth then i put a loss on acquisition

that is true that's true and they also acquired it i had the date on that wrong on the 24th of march is when they when they officially acquired it. So that was like six. That's a week. They only got one week on the books. That's what I'm saying. If they acquired anything within this quarter, then they wouldn't book it.

They would book it the same. They would book it in that way. So if it's the start, they could have all three months of key under them books. They wouldn't book it in that way. Get me? Okay. So the next quarter, when we start to see, because no keys on subsidiary, we start to see booking.

Also, keys revenue will be reflected in grace. Keys expense reflected in grace. Well, we won't touch key yet. We'll just come right back to GK. So based on that, you're saying GK has all this all these numbers not them show keys revenue or expenses our profits in them okay okay yep okay so if you look at this to your eyes if a lot of the let's look on the growth across and revenue for each of the line items like everything is up what do you mean the growth so or revenue full and trade full trading three billion drop on from 20.9 i call it 21 billion to 23 billion. Banking moved from 1.49 to 1.54.

Insurance moved from 1.74 to 1.84, even though it made a loss. So that is interesting. I'm just wondering, can I have a share of Associates and Joint Ventures line? Yes. Which for the insurance segment shows a 7 million loss. I'm just wondering, can I have a share of associates and joint ventures line? Yes. Which for the insurance segment shows a seven, a 7 million loss. So what would their other?

So the associates and joint ventures. So if you look at the audited before this, they show canopy as their associate and joint venture. So they don't book it as subsidiary. So the insurance is generally gk insurance how can they not book it as a subsidiary though because they own 50 percent they don't know so they don't own so if you want to both then you have majority interest and blah blah blah and control right below the threshold yeah so they can say it's a joint venture 50 50. me and you walking hand in hand yes yeah wow wow wow wow so it seems to me you cannot be still in still in a loss

based on this but hold on if they once you're over 20 percent you can, you can, or is it that you know, if you're 20% to 50%, then you're an associate joint venture. If you're under 20%, then you're just investment. I hold 50% then you're subsidiary. True. But between 20 and 50%, you can elect to, you can elect. Yes. You can say I am whatever whatever or auditors can say you do whatever exactly yeah control correct so your significant control allows you to dictate the runnings of um you know you're you saw the money go yeah exactly yeah and so that and that that shows your your level so you that

shows that you have to put it onto your book so you're saying that they are not putting it on their books regardless they have chosen not to put on their books maybe or they i think i don't think they want to put on the books yet and i think the auditors agree with him based on the last audit having Canopy booked in that way. Well, okay. Well, they spoke about Key, and Key is obviously a much different beast from Canopy. Yeah, Canopy is,

we're yet to see the fullness of Canopy. Yeah. And Key, we're also yet to see the fullness of Key. Fullness, meaning? Meaning whatever plans they have for key. Yes, I agree. Yes. Yeah.

So whatever plans they have for key is yet to come. And I'm sure those will be interesting. But Canopy's numbers are out, by the way. Canopy's numbers are public as a result of them being an insurance company or as a result of them being under GK I think GK was supposed to them

like the actual auditing results for 22 months in December 2019 22 months yeah man you know the thing

it's audited and it's not public reporting like a JSC so guess what they can't give anything more right

they can audit for whatever period they they can't i would say whatever period they want to audit oh that is true wait that is true but i would also say that i would i would counter that with is is not is not um regular insurance companies don't have to publish their results you know and so it's only it's only this thing that causes us to see certain things but as a regular insurance company they send their reports to fsc and we never see them so honestly the company like canopy wouldn't see it generally don't and you know they don't really give us subsidiary information more than what we see from the company itself so they can choose to they can choose to um integrate it in their numbers they can choose to hide it if they wish yeah they don't have to actually break

it all and say oh this is this line item but it cannot be actually published quality results where is this by the way uh send this send the Yes, please, because I would love to see this one. Boy, it's so interesting the things that can happen on this market, right? And GK having been on the market for so many years is also a great, great, great, great, great, great. The things that kind of published their numbers on their own website and I'll put a link to that in the show notes so anybody who is

interested in seeing them, it's there for you. It's the first time I'm going to be seeing it also so that is a good thing for everybody actually having paid attention to what could be happening with Canopy. Before I even open them properly, Dana, you want us pre your orders primed is it good is it bad

yeah but I mean a loss for insurance companies is like yeah it's like normal almost numbers you know health insurance is health life insurance bread and butter type of thing that's in like yes very often they're making good money yeah and it's significant it's safe money i'm safe in air quotes meaning it's money that in fact this money for tax rate is money and put from such a corner so because it's just money yeah all these people used to be employed you used to be insured we pay one bill spare different bill let's play a bill. So they used to be insured through their group insurance policy through work with Sajicor. And now Canopy exists.

People switch insurance over to Canopy. And these people here being the company principal. So in other words, it's the GK guys and I'm sure the Muslimslims going and and other people involved going hey we all have these large companies who employ so much at jamaica and we're paying sagic or the insurance why don't we form our own insurance company and just profit off that ourselves yeah and so said so done yeah and gk owns 50 of that so if you are one of those people thinking in the long term you are able to then think about what that means because canopy sits like a canopy above above so many companies so many strong companies with long track records and it serves their interests for it to be there so an opportunity

to be impacted by that is good uh what we're looking at here is 2019 it's a 22 months and we're looking at a loss of 197 million yeah if you look at both of it comes the work of the expense sign is from the admin expenses and the break that they break that out in tinder no no date yeah so where that that's our management c line of 105 million105 million. But that still wouldn't cover the whole of AMA again. So if they didn't have that line, there would still be no loss. Yeah, they have another, what would I call this? $82.5 million that is from staff costs and startup costs. I don't know what that is.

But staff costs, they did break out, which is $39.8 million in salaries and taxes, of course, payroll taxes with the employer's portion and pension costs, $179,000 and then $5 million in other costs. So it is a startup, essentially, but it's a massive kind of startup.

It's not your typical startup. Yeah. Interesting. You look at the thing there, you look at the share of profit, essentially but it's a massive kind of startup it's not your typical startup yeah wait interesting you look at the thing there you got the share of profit share of loss that will come from canopy for this one quarter and it's just seven million so that will be a 14 million in losses 15 million in loss for the whole company big company in one quarter share of of losses where? Where are you seeing the share of losses? For GK's numbers. Ah, for 2019? For March 2020. Okay. For three months, March 2020,

it's around 15 million loss that I've gotten. So those losses are looking different from 200 and something for over two years to one quarter, 15 million. Maybe we can see some change up. Right.

Yeah. Right. There's more here. If we had more time, we'd get into it. So GK, like it, I think the biggest threat

to GK currently is the downturn in remittances, but I also... Which might not be so much. Which might not be a downturn at all. Oh, yeah.

I saw a tweet from Richard Pandole. Big up Richard Pandole. Yeah, he mentioned about only 2% loss in remittances over the period. Over. Let me check it. I'm just trying to actual tweet and send it to you. The last thing I saw in remittances was 20%, but I've been checking on the ground with a few people and places I know,

and there's been a resurgence, and some people tell me they never get a drop off at all. But granted, GK is not just Jamaica. It is regional with this remittance thing. The tweet is, Jamaica owes a massive debt of gratitude to our diaspora. 2020 remittances are only down 2% versus last year, 87 to 92% of remittances go directly to wholesale expenses including medication

oh share that tweet with me also that's a good tweet yeah so only down two percent yeah richard pandoy versus but i wonder if you know that volumes or thing there or if I take in either volume transactions yeah Richard pandey and he's a man that's very careful with what he says very genial very open very fun but also as much as he has fun, he's very careful about what he says, careful with what he says. I actually learned a lot working with him over the years about how to ensure that what you say is accurate and you can stand on it. Yeah.

Big up Richard Pando for that. And I'll put that tweet in the link to that tweet in the show notes again. Interesting. What he's saying uh the key acquisition is mentioned in gk's numbers yes they are yes because I had I had checked for that um acquisition of key insurance is part of the group's plan to further strengthen and expand its financial services division and forms part of the company's focus on mergers and acquisitions. Yeah. The key strategic driver for growth.

Yeah, pun intended. Number five, note five is business combination. They said that by key following table summarizes the consideration paid net assets acquired on goodwill, which have been determined provisionally, subject to final determination of the fair value of assets acquired. So the goodwill

is not. So interestingly to me, they didn't do it versus the market value of securities or purchase price versus how much they're trading for when they bought them. So it's versus the actual asset base of the company. And so they look at the thing, they're trading for when they bought them. So it's versus the actual asset base of the company. And so they look at the thing,

they're the purchase contribution, cash pays was 490 million. Fair value of assets acquired, 470 million. And a non-controlling interest is 163 million. So their goodwill acquisition would be 183,562.

And this is so accountant-y. I wish we had an accountant here to bring it in. Are you sure that they're not looking at the fair, when they say fair value, they're not looking at the market value at the time? Because for a listed company. That is straight up fair value. And I know accountants,

I know accountants will like that. It's because of how I read it. That's how I said it. So fair value of i know accountants i know that you will see it's because of how i read it that has said it's a fear of net access equality right yeah i think that might be the so that 470.9 million again i assume because i'm just talking off my head here i think that might be 65 of the market as at the date it might be damn right but yes they basically said they paid more for the company than thing there but then the non-controlling interest is factored into that so you come up to 183 million but one next interesting part to me about that is that you're not seeing that number on gks so you look in the pnl and you don't see that number reflected if you realize if i look on the pn oh because it's uh it's an asset that they've bought so you wouldn't

necessarily see it no you would see the opportunity because remember if you buy an asset for more than income if you have a goodwill number at all goodwill positive or negative it's going to come on and that's it's going to be a pnl that is true the very first time i believe yes yes this is this quarter we're talking about okay he did the cost first he's going to buy it for the worth and then the next quarter they consolidate it the thing there i see one line i try i look i'm really looking for I'm looking for where that's actually It's in the thing there In the In this thing

In the financials? Yeah Yeah, because I'm not so sure about it I think we need to do a deeper dive on this one I don't think we have the time I think we do, unless you have it in front of you Oh, well The only number that's close

to that is the change in fair value of equity investment at fair value through other comprehensive income. They might just put it in OCI. I've never seen a company do that though. Put the acquisition, the goodwill figure,

the gain or loss on acquisition inside the Oci i've never seen a company do that uh but is if it's if it's not good maybe you wanted to go in oci no yeah this you don't think of course it was a negative you wanted to know so yeah no i was not a negative because if goodwill is negative it means that you paid less for it than you than it was worth so you would want that on your pnl you'd want that would be a good thing that'd be positive so it'd be if it's a negative no yeah a lot of people confused i'm sure if the goodwill figure is negative then it means that they have paid less for it

than it costs if it costs ten dollar we pay five we pay six dollars for it then we have negative four in goodwill like like ncb got negative goodwill on buying and that's a positive jhl and that is a positive thing yeah but i I think the non-controlling interest might be the issue. Because look at the calculation of it. So they bought it for less than it was worth. But they paid more. And then the non-controlling interest come out because they're

going, I guess because of that thing there. They're going to book it further on because of the subsidy there. They have to put the non-controlling interest in there, I guess. But it comes to 183. So, which is why I get what you're saying. I agree with you.

Yes. So, you'd want to go in OCI, but I don't know if I've never seen a company put something like that in OCI. They usually put it

in P&L. So, I don't know how IFRS treats that. So, I need to actually go check that. Yeah. Let's consider that. Maybe we'll have a gk only episode oh because it's a hell of a group we can be looked at um

there's something to consider indeed look at that something to look back at uh but gk overall looks great yeah um i think the two things that we have to worry about with them in the future is how Corona is going to impact them in terms of their sales on the food side. Although food doesn't really have much of a margin on it, but still it's there and it's a revenue earner. On the financial side, they would have been hit within the group. They would have been hit with the freeze on dividends, right? From their subsidiary under gk fg financial group and i think maybe if you follow thinking you also have to look at expected credit losses for that same group yeah definitely yeah which every finance company has

to think about these days so it's a matter of and thirdly there is a possible remittance hit so if those things are bad they could be bad and if those things are good they could be good and on the growth side they spoke about they've spoken about their mergers and acquisitions being a key driver for them we see them buying key insurance which is which offers nothing new to the gk financial group yep so not Yep. So not even to say junior market holding because it's been moving off the junior market to main market. So the question then arises, why would they buy Key, a loss-making insurance company, and bring it to the main market? Yeah. And those of us who dig can find the answer for that, right? There are only a few reasons to move to the main market.

So GK, I mean, in my eyes, I like how it looks. I like how it looks in the longer term. find the answer for that right there are only a few reasons to move to the main market so gk i mean in my eyes i like how it looks i like how it looks in the longer term uh but it's a matter of how can it weather the corona storm the the storm for the storm of um it being impacted in your business and not just impacted in your business but impacted with with remittances and not just in Jamaica but to the whole region right yeah so time will tell one to watch speaking of time that's less than eight minutes I think that is less than eight minutes or I may have reset the timer you know I may I don't know but I have two minutes left on the timer so let's move all right cool and we move why you had something else you wanted to know I I don't know I was wondering I felt more yeah it felt like we probably

was more I think that's more like 16 let's speed it up GOS this one is easy GOS closed today at 95 cents

I have not heard about this company in such a long time yep it's been so quiet since the last set of things hit them um

the last set of results we had from them tell us about December 31st, right? Tells us how things are up to December 31st and we're looking on a company with 32.9, at that point,

32.9 million in revenue and net loss, because they don't have any profit, to the net loss of 20.98 million. G West is going through it, boy. Yep. The forgotten brother that is still going through a rough time.

I don't think by the estimation on the amount of business they'll be getting, the type of business, it doesn't really work out to plan. It's a reality versus what's going on, versus what the plan was. And then they went into a little bit of

struggle, I believe, with let me not say they were in a fight. I will say that they did not have, I know there was a point where you couldn't use an insurance and not any insurance would work there yeah but i gather no that has been sorted out here yeah and um it has allowed them to grow revenue yeah they said that in their in their note that the revenue the steady revenue increase is attributable to their urgent care which is now accredited and able to accept major health cards you have a hope that this you know that that will save them because i think that's

still going on so it might be nothing right maybe maybe maybe perception might change maybe people say the traffic changed and i'm sorry getting people down there but i know i don't think corona wasn't a good thing for them so which is funny because if they have an urgent care facility you'd think that a health crisis might might get them um more people but then if you hear a lot of people saying they're no longer going to the emergency room unless you have a really serious mepharistic corona you know yeah yeah so that might have been an issue here so you think the medicine just dropped off yeah that's rough

medical and dental complex I mean they were always a nice mix meaning they're a real estate company but they're also earning from their medical facility within their real estate the plan seems to pivot more than so start real estate and then move into your

actual medical complex earning money from the medical yes that was always the plan once you get all the units sold or leased um they sell property they didn't they didn't intend to sell it from the start they have to sell something yeah i think so or they had to take back on something themselves something never worked out yeah yeah they've had quite a few hiccups, including losing leadership, I believe. Very often you see that James and CEO just cut. Yeah, it's never a good sign when that happens.

More than one time. Never a good sign. More than once you see a change of the same position. So that was concerning. Yeah, when you see that stuff, you know that in that you need steady leadership to step in and go, of the same position. So that was concerning. Yeah. When you see that stuff, you know that in that you need steady leadership to step in and go, okay,

this is what we're doing. This is where we're going. And at least steer the ship for a little while, you know, if you're in the storm and the captain take over, the captain take over until they come out of the storm. Or if the ship sink, the captain was at the helm,

but you need leadership here. And it's just been quite funny. So I can't wait to see what their new numbers are. They're well overdue. Agreed. But there was a full year numbers are due as at March 31st, 2020. And the last thing I

heard from them was that they're using the usual Corona delay to say that they are hoping that they will get it on or before july 14th yep so so we're still waiting oh yeah but not much to say beyond that so yeah not much either uh okay so that ends it for g west next up is honey one almost uh lots of people's favorite stock not necessarily favorite but i very often hear about our own honey one from our giant market we've been talking about honey one yeah honey bun was loved from ipo and

honey bun is who has i don't want to get any products wrong in a class they're in a very competitive market um in fact i'll not say another products honey bun is honey bun the pastry products uh in a similar packaging. It's like a line of pastry products. I think that's what they're most famous for. Yes, there is one specific one. They have good money too.

They do make good money. In fact, I think they had a little bit of a turnaround, no? Yeah, because they said they're doing some, well, until these last numbers where I get you. Well. Revenue-wise, definitely I get you. Well, revenue-wise, definitely. Profit.

Yeah, but profit-wise, no. Yeah, so revenue-wise, under three months, they've now made 453.5 million Jamaican in revenue and

compared to 406.5 million in revenue same period last year and for profit,6.5 million in revenue, same period last year. And for profit, $43.3 million revenue versus $70.9 million. Wow, that's a big drop. It's a huge drop indeed. And what is responsible for that?

Admin costs have flown. Admin costs have flown from $735 mil to 94.9 mil. And selling and distribution costs have gone up, well, not as much. That has just gone up from 59.7 to 62.99. That's called a 63. So it's not as big. So selling and distribution is not where things happen.

Admin is where their costs really have come in. And I don't see them really explaining why you know I don't say explanation yeah those of them at all but I know that they when did they list before I came on June 2011 further June 2011 so their 10-year tax break is almost up yes that's not necessarily a good sign they're going to have to find something and we have to really have to find something I remember the only memory did this read the deficit did they did they mark their facility and marketing here no they want it on everything because

they wanted each the certification base yes HACCP certified bakery yes Jamaica's first HACCP certified bakery yeah and I said what was the plan around that that if you get the certification it allows you to export

yeah export better yes with less difficulties so that plan will be important going forward, especially as they come to the last part of the tax break. Yes, they have one year left of the 50% tax break and then they have to be listed. So when I hear that and I'm looking

and I'm seeing lowered profits and increased admin costs, I'm not necessarily happy. Yeah. I read in a facility, I think also they had cleared more space so i figured that's more work cause and that that that that so i can see me i can kind of see where more admin class would for me wow all right you pay money for it every year or something like that, don't you? I believe so. And you do have to maintain the facility.

You have to remain. You have to, yeah, it's not just automatic. Certification where you're going to be one time and then go back. Exactly. And to their credit, I mean, business-wise, in terms of understanding their own value, business-wise, that's good. Do it while you have the tax break. Get that certification, upgrade the facility

while you have the tax break. It does upgrade a facility while you have the tax break it does mean however at least in my view that going forward they're going to have the benefit from it needs to outweigh the cost yes and i'm not sure that it can i'm not sure that it can yeah yeah yeah we will see in time i think of this are a tough game you yeah we will see in time i think of this as a tough game you know like i i only see myself starting a bakery yeah it's a rough game and you have and the competition is right yeah definitely which is why i think you're supposed for the export and you can you can see the honey buns packaging which is odd i don't really talk about packaging often but you can see that the type see that they have a specific branding. Relative to the competition,

I look at National as somebody heavy on branding and that type of thing there. Branding within an export push is always good versus, but I'm not saying some brand over there, so I don't know. They must have bought it. True. True, true true true true well this one is a is a business run by miss michelle chung and um i believe that they're i mean they have raisin bread

them have cheese bread yeah that was the thing i was thinking about about what's called it that cheese bread no cheese bun i believe i think they have cheese bun. Yeah. They have things there. Oh, cinnamon. Oh, doughnut. They have other things there. All kinds of things. Yeah, they do have individual doughnuts.

Oh, God. Every gas station. Yeah. That's another thing. They pretty much have to be distributed well. And school. Schooling. Yes. But the thing there, they have an increase in revenue in the

period. They do? Yeah. But when did schools drop out of play? Around the same time.

Around the same time. Three weeks out of March. So we might see the effect in the coming numbers and not necessarily in

these numbers. Yeah. And there are some, like they mentioned some things in the in the mda in the mdna management discussion analysis where they're saying um like the prior year had an asset disposal game gain of five mil um while the current year have revaluation losses of seven mil again under on the stocks that the company holds.

So it looked like these companies, they went in, they bought a lot of stocks with some of the money they had, which is not a bad idea. It's a great idea. And of course during the market dip that happened from about February, definitely in March, they got hit also because they're reporting

us at the end of March. And I'm hoping for business continuity now is the time for them to be buying uh well back then was a lot of the time for them to buy more and even now is still the time for them to be buying more so you have 60 mil worth in of investments coming from sorry sorry coming from about 91.9, I call it 92 million worth of investments last year. Up to September, they had that. That's their year in. So, yeah, they were cut out for them.

For me, it wouldn't be for me per se, but I can see somebody owning a big stake and profiting off maybe the consistent dividends because they do pay dividends. They paid dividends every year, at least for the last two years. And they're in a tight business, so there are little efficiencies that they can make. Do they own distribution, Danai? No, I don't know. I have to check that, actually.

Yeah, that's an important one. Because whoever does the distribution, distribution is key for a business like this. That's what I said. And they say that's what they do. is key for a business like this. That's what I said. And they say that's what they do. Principal activities include the manufacture and distribution

of baked products in the local and export markets. So Honey Bun, in a tight market, doing well for where they are, but it is obviously making less money.

Every dollar counts for them. And schools being out don't necessarily help. Yeah. Yeah. So that's's one we are now at i create i create wow i haven't spent too long on these people you heard if you don't know think about i create just go back and listen to episode which episode is that now i want to say it's episode 38 am I getting it right?

39 alright yeah and that one is Killu with Tyrone the CEO of iCreate founder and CEO

yeah we won't spend too much time on it since we have the actual CEO there Founder and CEO. Founder and CEO, yes. Yeah. And big up Tyrone. We won't spend too much time on it since we have the actual CEO there. Is that episode 39? Yeah, there's that. And we also have an early episode if you want to know the history behind it. Pretty much where Tyrone is now.

First time in the company's existence and being listed that it has made a quarterly profit and it's for Tyrone to pretty much repeat that yeah so he's under there's stresses that our company is under it's not an easy road and let's see what Tyrone comes with for you because Tyrone has faced a lot of the same dangers earlier I mentioned

what happens when a CEO leaves and Tyrone has had to face that well not CEO he's been a CEO but GM GM and a few board members board members have left yeah and much like

Smitty on Twitter Tyrone has also gone through his own cancelling these days let's see how that goes if he comes back next quarter we'll ask him about that also so Tyrone prepare answers from now you know yeah so indies in this next up a company i think can be better potential this you know when your friend says she get a boyfriend and it's like a waste man him all these dreams are where him, man. Him have all these dreams of where he can be.

And she have all these dreams of where he can be. And you know, say a boy, they want to educate him. They can't see where, you know, you see him have talent, but he never really does anything about it.

Yeah. That's the, this is that guy. Wow. But then they'll have a big jump with him, man. Yeah. You appreciate,

you appreciate the man. So no, yo, it's not i read this company go it's twisted yeah yeah look at the man there is on the basis of potential yeah so um looking at the last results they are they are up in terms of revenue they're up from 168.2 mil to 193.7 so 193.7 and that is an 11 jump in their business no i have that incorrect sorry that's a 15 jump in their business from a revenue point of view and from a net profit point of view they're actually lower and it's for the third quarter ended january 31st so if you look at the thing there the numbers you realize that thing so gross profits

are stronger are still strong still stronger but profit from operating profit that's that's actually the problem so it's after the admin expense line you realize that they have thing there so why when they first came on they first listed and they had some plans with the herbal going to the herbal herbal thing herbal medicine that type of thing yes nutraceuticals that's all yeah yeah and then they paid off their debts i was wondering so people think that people are rejoicing it's a good thing that gone no more in no more interest expense finance costs but in my head i was like all right cool we get refinanced right we're gonna go into get buy something we're gonna push something and that never hasn't really come they haven't said there i think there's one thing where they

said they might take on that but i haven't seen where they nothing that might that hasn't happened that might hasn't happened yet so admin expense they're losing admin expenses profits are lower since so the finance cost gone which is good but they're still losing admin expense despite increase in business um what i think is important to notice here is that these they do have a director's loan amount that has doubled um usually i wouldn't care about something like that but the director's current account is looking at 61.4 million versus same period last year was at 34. So that's almost doubling, not doubled truly,

but almost doubled. And at the end of last year, their financial year, October 31st, 2019, it was at 36. And currently in January, it's at 61.4. Wait, wait, wait. I'm looking for that director's loan, director's current account. What's the current account

Yes Wait I'm not following that one Because it's an asset Yeah, correct It might be an asset, yes But it's cash Yes, it's cash

The first thing I look for is director's loan And that's non-existent. The land item is empty. A director's current account is the same thing, no? Yeah, no. The loan means the director borrows money

and pays it back. The director's current account means the director can spend from this current account. You know what I'm saying okay okay no man there must be there must be there must be a constant asset for the company no it's the asset meaning the cash is allocated there how they use asset doesn't mean the money gets come back to them it just means the money is there and it's the company's money

no man if it was the company's money it would just be sitting in cash and cash equivalents yeah yeah so the director's current account speaks to

money actually taken out no man so the money is So the money is there for the directors to use. This is how I understand it. The money is there for the directors to use and not necessarily pay it back.

And not necessarily pay it back? It's the company's money. The directors can't spend it. For what? Company purposes, I believe. It has to be. Oh, yeah, man. Yeah.

But I'm not thinking that any money spent will necessarily go back to the company. I don't think the directors can spend it with any. They're not going to buy a car, but it will be spent for purposes of the company, if you get me. So expenses that come in relation to the company. You see this, I know i want to run up against because in my mind the director's current account speaks to money actually taken from the direct the director has actually taken you know that's how that's how i view it i view just like a director's loan so it is an it's it sits as an asset because it is money that should be repaid to the company

but i and the fact that it moves oh yeah i was actually looking at it wrong you're actually right yeah you're right i think you're looking at it as like an actual account account meaning like oh the money to sell in the account no man this is money taken from the company so that's why it stood out to me because, I mean, it's cash. But part of buying into a listed company is the simple fact that you take on the listed company and its directors and whatever. You have to show some amount of trust for them. So you buying into this company should be saying that you trust Mr. Mopuri. I know I'm going to get that name wrong. saying that you trust Mr.

Mapuri. I know I'm going to get that name wrong. You trust Mr. Vishnu the Mapuri. Mrs. Apologies. Wow. Those secret directors.

I think there are a couple. I think there are a couple. I think there are a couple. So yeah. And they don't have, the liquidity position is healthy, as they say. And they have a lot of assets, but I know that including that asset would be the fact that they have loans.

I know they bought some land the other day to do something with. There are, it's even mentioned in the MD&A. So they're set up costs for a new facility in Freeport, Mobe. I mean, big up them. I like what they do. I like that they exist. And I like that they, I'm assuming that they have made better money

during this Corona time. I'm assuming. We don't know how much they make up until, the most we know is how much they made up until January, right? Or am I missing something? You're right, Iman. Yeah. So,

no, Manu No, they did release something else Why did this just come out? This came out this week The second quarter came out this week That's me with all data looking at the first quarter The second quarter So wait, that's not on thing there?

Oh, JC, you put it on the damn tab I'm glad Ah, why am I not surprised well yeah here I did see the thing there yeah I hope me man okay I did see this you probably saw did you see probably through the group hmm probably are checking this. Ah that was it okay good okay Overstore. Continue yes because this was the thing that why I remember this because I saw a round tweet big up thing that he was saying he was digging up indies and that's why I checked it I don't think I spent long on it but I know I checked it and yeah very different

from the last result. It's a game changer for the year too. So they were down on the year as per the last results, but they're not up on the year. Because this is a solid game. Okay, yes. This was the thing that was exciting. This is the thing that sent the price higher. Because I know there was a reason that the price flew the price flew for a little while there yeah man it jumped from like it was averaging in the 2.2 dollars 20 2.30 and it jumped all the way to 298

after these results came out so these results came out june june 10th wednesday june 10th in the i'm going to assume in the evening after the market closed. And then the very next day, June 11th, it jumped from $2.30 to $2.54, right? And it has continued to rise to recently where it just did a small dip. So it's actually now at $2.92 as of the day that we're talking to you here today in June 16th. What can I say? These guys know. So let me give people a better numbers. Now,

very quickly, six months results, 400.96 million versus three 61. And on the three months, 207.2 versus one 93 on a profit basis, the profit almost double. So then jump from 32.6 mil in net profit to 68.5 mil that's under three months and under six months have jumped from 79.5 mil profit to 108.1

mil profit right and what's important here is that in all of the last year the 12 months for last year they made 130.9 cut 131 million in terms of profit for the entire year and in the six months mark they have made just they have made a hundred and eight of that already so these guys are already in six months at at roughly more than half last year 82% oh wow that is big because for the 6 months so far they have made

82% of the full year figure which means that they are almost definitely going to be blowing this year's profit out of the water barring anything totally catastrophic they are going to be likely going to be blowing this year's profit out of the water barring anything totally catastrophic they're going to be likely going to be blowing this year's amount out of the out of the water I mean they're not undervalued I think undervalued you know I could be wrong I could be wrong let me let me let me look

at it and work it out manually Out of the little 8 minutes that we have for them So the jump is it Corona? Oh that's a great question right Because they're reporting right up until April 30th So they are Not the first company I've seen But they're one of the first companies to give us

Actual effects of Corona That meaning that they have Given us February, March, meaning that they have given us february march april so they have a month and a month and a half it's a a month and a half yeah it would be nice i really and truly two or three months of direct corona but in these cells um medical medical supplies so yes cheap things yes we'll be stocking up on that type of thing yeah i suspect that they're they're doing really really well you guys can read the mdna for for um more info on that but if we

are looking at from a pe basis i believe their pe so far is 12 cents and there are two and I still have the e-wish of 24 times so they're still actually hide it's still pretty pretty young they're higher yeah unless you're considering the potential and what it is that has given them this opportunity to jump yeah I I would grant increased business of this type across for the rest of the year. Yeah.

The revenue itself for the quarter never really jumped that much. It jumped like 14 mil. Yep. Yeah. So it's not that big

an increase. A large part of their gain came from in terms of six months they have two and a half million worth of exchange gain

versus last year same period they had many expenses less than last last year are they yeah 81 versus 99 ah i was looking at the six months i was looking at the six months wow that is good that. That's efficiency right there. That's efficiency. Less admin expenses and your profit is more than doubled. Your net profit is more than doubled. That speaks to tight management, which we've seen. We've seen where they've paid off debt in the past.

We've seen where they've concentrated heavily on the business. I know we've seen admin management going along with that. So, revenue up, cost of sales down. with that so revenue up cost of sales down yeah so this is a company that is tightening

its ship and being more and more efficient that's a good sign in my view they did mention the stock price in the MD&A

so I would have a fee in the dick here yes I like that I like that and they do also speak to their debt which I know

pleases a lot of the value the value the value investors so they speak about the fact that they took a short-term loan to purchase land which is to use

for construction right which is even great even better because it means that yo the man them serious is on the fly by and I think them

setting up themselves so you got to think there look at the director's current account it hasn't much moved since so six months is 63 million and the previous quarter was 61 million so there's not a big increase so good thing wow hasn't move most since last quarter true but i noticed that there's a director's loan line and it's empty so yeah but that's that's a thing that's a liability so that would be the

company lending to the director yeah so well well doesn't that come back to the first part of the company borrowing from a director if it was a liability if you're a baby ah sorry that was there from yes before with the listing yeah during the listing times together there was some going on there so i'll check that well yeah a nice one to dive a little deeper into and i think it might provide some value for the people who have a little patience uh well let's move on so as indies what's up next isp finance another quiet company who isp uh very very quiet company hasn't really even traded much it rarely trades nobody traded both is high or low because somebody said all right let's buy it's big buy it slow you look at the

last couple yeah last 50 shares traded since may 20th may 21 only 50 shares traded yeah and before that on may 20th they had 6 000 shares yeah then you say 50 on may 20 what's that may 29th right yeah and then nothing since then so we're talking to you in june middle of june and they haven't traded all month so it's a very small company um and they have their financial year ends december 31st and they put out their financial statements and there isn't much to say there just because usually it feels like very often yeah because they're a small loans company i saw them do so there's not much that shifts unless they do something interesting uh their financials look i don't want to chaka chaka but chaka chaka is kinda the sizes don't

match up the pages don't match up but their income is growing income from loans at least is growing from 360 306.2 mil in 2018 to 367 mil in 2019

sorry and uh overall their net profit for the year did not grow i can't say that i'm surprised because they're in a business that is tightening their profit their net profit almost half they move from 44 44, or did I say 43.6? If you use comprehensive income, it'd be 44.3 versus this year, the busy 2019, they're down to 22.9. Yeah, and I can't imagine they're better off right now doing all this. Right? And credit losses has hit them really hard.

I noted that that jumped out at me. They moved from 35.8 mil to 87.6 mil allowance credit losses i mean and they're in the part of the loans business that is higher risk okay so isp has their audited numbers out and it's for the whole year 2019 bottom line is as i say isp they are in a loans business and they're feeling the pinch right now like so many people are all right um and they've been feeling a pinch long before corona in fact corona could technically be an upswing for them right because people have less money now um and companies like this really make a lot of money when people are making less money however

it's not they don't benefit when people are making no money because yeah you have to be able to work exactly you have to be you have to be working to pay them back so uh expenses have flown up almost 100 million more from 234 to 309.97 it's called 310 um staff cost is a nice little piece of it but credit losses like i said doubled on them from 35.8 to 87.6 um and other operating expenses have moved up a little bit to by 15 million all in all these guys are in a space where things are just like access, you know, exactly. And they are about to face their half year. Their half year tax break is now on.

So now they're only getting 50% of the tax, the taxes written off by the government. There's not much more to say. I can't waste more time on them. It's ISPs. Not that great. One of the boring companies, I call them. Because there's not much really happening all the time.

Exactly. And the high-level trades. I mean, you jump into ISP, you might be around a long while. Yeah. Next up is Jamaica Tees. The exciting Jamaica Tees. teas wow definitely not a boring company indeed uh jamaica teas has strong results last i checked in the second quarter the most i told

us about was up to march 31st so they only got half a month or three quarters of a month of corona so their revenues are up for 73.3 versus 314 and on year to date and they are they're in a loss but okay so jam this is this one might be a little time on so jam t's is is the parent company of QWI. They fully consolidate QWI. And if QWI make a loss, then their loss is folded into Jamtees numbers. Yes. And if QWI makes a profit, vice versa, it falls in. So QWI has continued to make a loss the last few quarters, I believe, because mainly because of...

Exactly. as i believe because mainly because of exactly um and yes it hits jam t so jam t itself if you want to have an idea of how it's doing you have to look at their segment report really and they also tell you a lot of things in their mdna but all right so what i don't like i don't like discounting investment losses or gains no neither do i but I mean I like being able to tell where he is coming from agreed yeah but what I want I said that to say continue looking but let's say there are some that were ready to discount investment gains so I have never heard anybody decry investment losses yet I would expect the same people that decry that say oh boy you know it's investing in

gain no make sense to say the same thing about investment losses it's not real losses right guys yeah to me it's real losses but I wonder if they have the same sentiment and are willing to buy a jam tea despite yeah if anybody had that mindset just feel free to you know at earnings season on twitter and just let us know let us know if you believe in that yeah if you believe in that yeah you see it's not believing investment game if you don't believe investment losses now yeah the simple fact is that you can't you can't it's hypocritical if you like

one i ignored all yeah yeah i didn't think it needed to be said but boy these days everything needs to be said you know otherwise you hear so we never say that wasn't understood oh yes um misquotes but um right but their their revenue importantly is is strong so i like their revenues are so strong oh yeah because 473 versus 315 and 906 million almost a billion and a half years i see them boasting on the new export push very recently how they're pushing more exports to foreign exactly yes there was a snippet in an article what was it that they said i tried to remember that i remember the article you're trying to remember searching yeah i i don't think it was around jam t

i think that's it but i believe what was oh yeah right in the article yeah it's just a byline guys so this is how you put together some of the facts so there's just a byline when they were talking about how corona has affected certain companies and you know what i'm saying jam t was mentioned and i spoke to the director mr mafood who said uh something along the lines of i'm paraphrasing because that's in front of me it's not all bad and we actually have had a huge ramp up in our exports to the point

where we have had to put an extra shift on our manufacturing and we're still not able to make as much as we can sell and this was during a corona time that he was talking about. So it is very,

very, very interesting to see what that will translate to. Um, the investment in cash is king. So yeah, this corner losses and the investment losses and the cash making portion of the business. Do you know that, right?

Well, this is core, right? Because this is them actually making teas. And Jamaica teas is really interesting with that. I can't find Jamaica teas. Export spike. There we go. Export spike at Jamaica Tea.

So I will put this. No, this is incorrect. This is an old article. We'll find it. Yeah. If you don't see it there, though, guys, that means that we didn't find it. And maybe somebody wants to look it up and feel free to send it to us. That'd be really good.

But it was speaking to an increase that they're having in their business. Export business specifically. So it has bounced back strongly. Until you hear that somebody has put in an extra shift, you know, so things are good. Jamty, way before Corona was invented, Jamty, we were excited about what they had coming in terms of the AGM. They actually had a stock split coming. And it seemed to indicate that there was more, more to come. Because they went for the usual increase, the ordinary shares from 1 billion, which is where they are currently, authorized shares from 1 billion to no maximum.

Yeah. currently, authorized shares from 1 billion to no maximum. Unlimited shares, no maximum. Yeah. Yeah, and they had a stock split that was supposed to happen the 1st of April, but Corona came out and wiped that hot. So with that all in mind, it is interesting to see what they're going to come with now because I believe they're part of a push now. So they had to cancel this they had to split off they had to put their agm off yeah and they are now in waiting mode but i don't think

those guys are in waiting mode in fact you remember we have an entire episode where we talk about what it was that they're expecting to do based on the internal um resolutions they'd passed and also the approvals for them to have like a bonus system which would allow a certain share price for workers at the company or directors could buy at a certain share price and that share price was higher than what the share price was at the time.

So I won't go too deep into it. You guys can listen to the old episodes or look that up yourselves on the old resolutions from Jamty. I still like Jamty. I think I'm actually still a Jamty shareholder. And I have sold a lot of other

companies and I haven't sold Jamty. I don't have a lot left in Jamty, but I'm still a Jamty shareholder and I'm still looking forward to hear what they'll come with after things ease up. So, good luck to them. They still have their apartments after things ease up. So good luck to them. Indeed. Yeah. And they still have,

they still have their apartments for sale. I think that's actually done or near done, you know? Yeah. Actually, I have a funny story I need to tell you whenever I see about that, that apartment and the designers and Jamty and me.

Long, long story. Anyway. So Jamty, good, bad or ugly. I like what they're doing. The baddies at Corona kind of frees them up and QWI continues to hit them.

And until, until QWI sends consistent wins or even a win their way, they will continue to feel this hit. But I think that both those things will be handled, both Corona and QWI in my book. Yeah. The Jamaica broilers group. Boom.

I haven't spent too long on this you know them do them the chicken them the eggs in haiti them the chicken and eggs in jamaica yeah entire vertical america where they have meat um they were going through problems long before corona um there are actually riots in haiti and and their Haitian business has consistently given them a rough time. On the flip side, I've seen a lot of their directors purchasing shares over the last few weeks. In April, two directors sold 553,100 JBG shares, but three connected parties bought 4 million JBG shares. And if you look back before that, there's a lot of purchase, purchase, purchase. This is usually indicative of a company that knows that something is coming and the directors are buying while they can. buying while they can. I'm going to put this dot tied to another dot from

let's say an industry player, an employee of an industry player and how excited they seem about JBG, even when there was no obvious reason business-wise to be excited about them. And when I see industry people doing things like that,

it usually says to me that they know something that the rest of us don't know so the two sets of people that can know what's happening in JBG without me without me or you the regular public knowing is the brokers because they'd be linked to the business and whichever broker that is because not every broker obviously and the directors and I see directors purchasing shares consistently, even though some are selling. And I also see the industry people I know, for some reason, being excited about JBG. And whenever I see mindless excitement, I know that there is usually additional info floating around in those circles so who knows jbg could surprise uh in terms of in terms of what's happening with their operations

they've got for the quarter and the results have given us is a quarter ended january 2020 and that's their nine months so april would have been their full year so we are waiting in june for them to give us their full year numbers it's due any day now no should be yeah yeah what's the rule for full year again what's it what's the rule 60 90 60 90 but 60 because they didn't give us anything. They haven't given us any unannotated. So they would give us the thing there. And they generally give, they don't give an annotated fourth quarter, I believe, generally.

Okay. So they are going to get, we are expecting them to give us a 60 days that January will be February, March, April, May, June. So the end of June is when the 60 days will be up. So we will find out very quickly if things are going well. Yeah. And from a look on this thing, you see the share price.

With all the bad news, you see the share price going up. From June 11th, it started to suddenly rise. Usually I say the 26th raise and it just suddenly start rising. And it's at 29. Yeah. Yeah. So who knows? Maybe someone knows something. PE ratio

of 13.8 times at the current price of 29.77. And just straight net profit 470 million for the quarter ended January 2020 versus same period last year where it was 762.

So that's a big drop in profit. And for the nine months ended January 2020, 1.1 billion Jamaican versus 1.4 billion Jamaican same period last year. So something needs to happen between between versus 1.4 billion Jamaican same period last year. So something needs to happen in between, well, and it's funny,

they said the 25th and 26th of January, that's such a very funny date. Do you notice this, Danai? 26, wait, wait, wait, wait, wait, wait. Nine months, they gave us results that the nine months period ended the 25th of January 2020. That is a very interesting thing.

Why would they do that? Why wouldn't they just go to the end of January like everybody else? Wait, stop. What could be? There's another dot right here right no jamaica bro that's weird you know i know they can't be weird which is i'm checking i'm checking the last thing it was 26

it was 26th of january last time you're saying that based on them comparing or no i was looking at all results there 26th of january and so they looking at all results there 26th January I said I've usually done that the 26th of January 25th 26th 26th 25th JBG it was it's out to me too hmm wonder why they do that I see 27th of July 2019 okay good guys that's what it looks like when you're

excited about something you want to hear it and you're going to check the lie you want to believe

exactly so there's nothing weird there my first two points I still think it's interesting that

industry people are acting how they are but we'll see right and I did hear some good news about them saying that you know because of corona hitting affecting america in a specific way and uh corona affecting america in a specific way something just clicked to me if they have an entire vertical in america

they can list in america you know yeah maybe not nasdaq but you and i know there's holy pa there's an entire world below those big caps and a company that benefits from something like that may very well good and these these guys are no fools i know that and if they're doing something like that they would do it very closely with a bank or an investment house which which might indicate something. But again, this might be the lie that I want to believe. Listen, America would require American investment houses.

Or repeat that? It would require what? It would require American investment houses. Yes, but you would also be doing that liaising with local investment businesses investment advisor i will say no more yes that is a hundred percent true and that is what everybody should do uh so they have a full vertical in america

processing plant etc etc etc in fact they say in the last year's results had a one-off gain when they bought a business. So Haiti is still giving them problem, all right? So Haiti have an operating loss of 92 million versus year before when they had a profit of 146. And Haiti actually went through some trouble before Corona. They actually, I think they overthrew earlier again. Yeah, and so I can see them being impacted in that space. But remember things that move companies are not just operations,

but you do look on operations because that's core. Anyway, you cut it. They're making less profit now. But the players within the company and the space aren't acting that way. And whenever something is strange, it warrants looking into. So JBG, I like it.

And really, whether or not I personally am going to buy it is going to be dependent on how I sleep on this information and how I feel about everybody involved not acting scared and buying more. Yeah, very, very interesting. Dividend payer, and they pay consistent

dividends. I think they pay dividends every other quarter. So that's interesting for the people out there watching dividends. Yeah, right. You know. Big up my landlord. The JBG, I mean, I like it.

There's not much to squeeze that egg but not much else to squeeze that egg. So let's move on to JetCon. One time, hey, JetCon have some, some really nice volatility, you know, than I, you ever notice it? Up to like a week ago, it was below a dollar, you know? It is currently at a dollar 11 cents. You could have bought it for 850.85 on June 3rd. Wednesday, June 3rd, you could buy it for $0.85. That's last week.

Well, a week, two weeks ago. June 16th, it is currently $1.11. And that might sound small for the new people, but it's not. The difference between those two is 30.5%, which is close to what the entire market returned last year. So, JetCon,

right? Yeah, and a sudden increase in terms of volume movement. But connected parties are also buying up. Wow. A direct and a connected party

purchased a total of 3.8 million shares between June 4th and 10th. So the supply of JetCon shares is going low and JetCon doesn't even have

a billion units, right? So that is something to look at. The supply is literally drying up there and the price is going up but the price fluctuates because it was if you go back to april it was over a dollar it was a dollar 16 april 8th may 8th, it's at 90 cents. And June 16th, it's at $1.11. Big up Top Striker Shan for this one. She loves a stock like this, which I'm sure she probably does.

A stock like this allows you to really, if you can map the waves of people, you can get a good money off of it quickly if you're in the short term. But again, people, if what I just said sounds very attractive, but you're not reading all them things, you should not be doing this. You should be going low and slow

and speaking to your investment advisor about low and slow, about safe and understanding. But JetCon itself is a strong company themselves. That's what they do. And they have been going through a little bit of a rough time. And then Corona came and gave them an even rougher time. They're making less revenue,

but they're making more profit. Well, sorry, less revenue and less profit. Apologies. 1 billion in revenue versus 1.16 billion the year before. And 60.3 million in. versus 91.9 billion in profit. Million.

Million. Sorry, this is me wishing more for them. 60.3 million in profit for 2019 versus 91.9 in 2018 uh i can see an increase in business for them in 2020 or post corona well i would have loved to see that the truth is if we get hit with heavy layoffs if yeah yeah yeah and this the problem with a used car marketer still prevailing in terms of saturation and that is just getting worse and worse to be honest yes yes as you said many times about them buying up lots that never happened so yeah yeah these are on the flip side I do have people inside who understand not

just the business but how to make money from the money in the business. I mean, it is a John Jackson associated company. He is the director there. His brother is the owner. He is the chairman of the board. let's see what they do. This is another case where I believe that you might see a surprise. If anything new comes out, if anything good comes in, and I see directors buying up loans or an associated company buying up loan, who knows? Who knows? Somebody can dip into that.

Don't own any junk. I don't hate them. Sorry. Buying, buying up loans is that you're sleeping and saying rubbish buying up units yes yeah buying up units uh currently currently they are rated at a p e ratio of 7.7 times that's actually mad low, you caught it. So this might be a gem for people who may not have

been paid. Imagine it's at $1.11 it's at a PE ratio of 7.7 times. What was it at? 85 cents. I think the issue is that people are not really seeing more profits coming from them yet. If that happens, then boy i see the wrong

otherwise my just stay low jet kind of a special place in my heart in the car the first time i really they're one of the companies that helped me to realize that oh wow people really see the market differently yeah back in the day and and they have that kind of, I won't say taint because it's not a taint, but there are a lot of people who have been skeptical of them over the years and continue to be skeptical of them within the industry, even though their performance is obviously good. Anyway, I mean, I like them. I will see if there's more to be seen there.

Next up, we have well faithful well favorite jmm bgl the big dog i'm sure the people have been listening just to hear us talk about jmmb whoa hey you wanted this one let me start with yes I like the company. Good company. Great company. Yeah, great company. But they might have, I expect, not so good in the next results. It's been a while since I can talk about this now,

so I'm sorry for anybody that saw what we saw and still waiting on what happened. So, recently, Sadiqo Financial Corporation, their numbers came out and it's at a loss position, which means JMNB will see a share of associate line, a share of a loss in associates, and that's a heavy number for them. So, I'm just going just skip the actual numbers numbers

yeah so for the confused people while dana is looking jmmb owns 22.5 percent of surgical subjects financial yeah that's the big side so the chile crack is listed in toronto and they have operations across u.s and the caribbean boom um and they they they have it as an associate stake so i mean anybody who's gonna grow our list to the first part of this thing would have heard us i've done this so many times i'd grow it's it means that they they have chosen to integrate these numbers with their numbers am i correcting that? The thing there. So integration is really just a share of profit or loss in associates. So any loss or profit that Sajikor makes,

then JMNB is going to put a line item in their P&L of 22% of that. So if they make 100 million profit, then JMNB will say, 100 million profit, then Jamie will say, okay, we made 22 million from our stake in Sajikor, and it'll go to the bottom line. But since it's a loss, expecting a loss for Jamie. Expecting Jamie to say, okay, there's a negative from Sajikor in our thing there. there's a negative from such a core in or in or thing there yeah and let me find the actual numbers yes there we are yeah so sergey corey's numbers they had a loss of

25 million US. Shit. 25 million US for their latest quarter. The quarter ended March 31st, right? Which is what Jamie was waiting on the line. Yeah. So. 25 million US overall. That's a company loss

Yes 25 million 120 25 million 120 thousand 25 million 120 Thousand 5 million No no no Let me check

I see that's a company but you want to consolidate it yes you do yeah it's 25 million okay yeah it's 25 million because that match what I had looked at before so that means okay JMMB's portion of that would be

that might just mean say you and me wrong together you know you know what I mean alright so JMMB's portion of that might just mean say you and me wrong together you know all right so Jim and B's portion of that loss would be five point six five or call it five point six five million yeah you know it's right point five okay I wait 25 this point is tinder point two to five yes yes it's worse okay 5.65 roughly I'd do the same thing where I was hoping to find like a little leeway and if I

multiply that by 140 which is the rough us to Jamaica rate. We're looking at a possible loss of $791.3 million. For context, JMNB Yes. For context, JMNB So for a quarter in JMNB,

so JMNB's last quarter that was December 31st,cember 31st 2017 they made profits of 1.2 yeah 1.2 billion yep so that loss would eat out quite a bit of it yes if they if they had to recognize this loss, then they would have ended up making, I don't think the number is right here that I've just calculated. Is that correct?

Oh, this is correct. So they would have made only 400 million profit, which is not good for a company JMMB's size. And compared to last quarter so imagine 400 mil compared to that 900 mil yes correct yeah yeah so simple version for everybody who lost while ago sagicor financial have a big loss jmnb is them a source they're an associate of jmnb so jmnb is going to have to eat this loss they haven't reported it as yet so they do have a big loss they well they do have a big hit coming no we don't know what else jmmb did during the quarter

yeah so they might so how says it might even be exactly like that yeah exactly i don't know whether the storm every time we, despite that big number. Yeah. If you go deeper, part of the reason why Sajikor Financial had that, I mean,

they blame Corona, but the hit that really hit them, Sajikor Financial, was their US business, right? That's where a big hit came from.

And of course, Jamaica also had a loss. Did they have a loss, Sajikor Jamaica? No. A bit comprehensively. I don't remember. Maybe on the comprehensive side. But the US loss was

really the heavy part. Why is this important? Well, much like every other financial company, they had to make provisions for expected credit losses. Now JMNB is also going to have to make provisions for expected credit losses.

So in addition to the 791 million hit that Sajikor Financial is about to knock them with, they also have expected credit losses. Now, will they have good enough business within Q4, which is January to March 2020, to offset both the expected credit losses plus the, um, Sajikor hit.

Uh, I don't know. I, that's a gamble. That's a gamble. I personally don't think so. Um, and I exited,

I exited a huge part of my GMB stake as a result of, of seeing this coming. Not because I don't like GMB. I still like GMB. Actually, I love GM this coming not because i don't like jmb i still like jmb actually i love jmb i think i don't love them but i like the company i like the stock and i like the fact that they have sagicore under their belt now however there's no need you know all of you while you might be into long-term investing um there is no need to go into a loss that you see coming yeah if i plan to own jmnb in 10 years but i see next year our next six months is going to be bad

there's no need for me to stay in there and go through the bad times with them it's not my wife i don't love them all right it's not good times i. I am a wagonist. I'm only here for the good times. So yeah, I jumped as a result of that. Yeah. As he died. Yeah. And it's funny there,

there, they are now at 33, which is below the, what was the APO? 38, 75. If you didn't own chairs before. So 38,

75. I know they're at 33 today they close at 33 11 32 11 cents um god 33 11 cents and they are now roughly 15 below the APO price. And when this loss comes out, I think a lot of people are going to be realizing it and jumping ship. Right now, they have heavy selling pressure on the stock. There were a lot of

large volume exits on the sell side. It's hard to move that out. It's hard to get that out of the way. Good luck. i mean it's the we this is what two weeks ago two weeks ago roughly two weeks ago we see 7.7 million shares traded 7.7 million jmb shares is a holy money yeah Holy pooch. Money. Yeah. Right? In the interest of today's current prices, that is over a hundred million. That's 254 million Jamaican dollars on one day.

Right? I'll add to that, that they're also a financial holding company, as we know. So they are prohibited from paying dividends until next year by the BOJ. So that's another thing in their favor against them. a financial holding company as we know so they are they're prohibited from paying dividends until next year by the boj so that's another thing in their favor against them and i think their universe was against them so them campaign dividends they have a big leak coming from their us arm

they have expected credit losses that they're going to have to account for and and and they they have a whole heap of selling pressure yeah and you're saying something i'll check in some specifically some little talk around uh and you mentioned while you search here you're you mentioned um the fact that there's a lot of selling pressure. A lot of people are initiated. That means that there's heavy volumes being sold and not as many people buying. Right now in the queue, we're looking at about 70 people selling. And the second thing in the queue is 485,913,000 units at 34.

All right? I'll just give you guys an idea of what that looked like. Again, shout out to the top striker, Shanice. She did advanced growth and it was amazing. She did it on short-term trading and how to pay attention to the technicals and on the queue watching and how to make money in the shorter term,

but what to pay attention to in the larger term. Full house and amazing. Big up the top striker again. Yep. She did an amazing job there. Big up, you know, Shanice. Yeah, man, Shanice, bad man. But I'm bigging her up because of this point I'm making here,

which is that 485,913 units at $34 mean that somebody is going to have to come in and pay $16. million dollars for these shares and that's the only way to get them off it and even you get them off it two spots later down in the queue there's somebody selling 1.1 million at 34 and right behind that there's 604 it's a whole heap of selling pressure so unless some pensions or some other houses have decided that they want a lot of GMMB shares to buy now and to hold for the next 10 years, this price is unlikely, in my personal view, to pass the 34 mark anytime soon. Agreed.

There's literally millions of shares between where we are now and 34. And on the sales and on the buy side, the biggest offer is somebody trying to buy some for 33 and one cent. Reality is, I don't think JMNB is going to do that great in the near term.

I think over the next quarter or two, they're going to have a whole heap of pressure. At least the next quarter that they're about to report, they're going to have a whole heap of pressure. At least the next quarter that they're about to report, they're going to have a whole heap of pressure and I think the rush is going to come. Funny enough, Danai, we're talking about this early, technically early. So somebody might be listening to this. If you've listened to this part of the

show, if you've gotten this far in the episode and you're a JMNB shareholder, you might want to talk to your licensed financial advisor about whether or not you want to be holding this in the near term. Actually, I want to hear what the licensed financial advisor about whether or not you want to be holding this in the near term. Actually, I want to hear what the financial advisors are saying right now. I would love that.

Guys, if you hear this and you talk to your financial advisor, ask them about it and ask them what they say. You don't have to tell them it's us. You don't have to mention earnings season. Ask them what they say at us on Twitter, at Danai or myself, or at earnings season. Earnings underscore season. And tell us what your financial advisor

said about this and whether or not it's a good idea to jump out and jump back in. It'll be good to hear industry view on this. Yeah, but like I said, I jumped out and Danai said the same thing.

It's disappointing. I don't know, it's disappointing because I could tell that they were gearing up to be so well you know they got um they got about half a billion dollars in terms of dividends from surgical financials in u.s dollars the money gets on nice dividend and convert and then them can't pay it back them can't do a share buy. Them can't pay out no dividends. Let's see what they come with.

Might be interesting, yeah. I should point out that I did say to Danai privately that I wouldn't be surprised if JMNB changes their full, because they're about to report their full year numbers. This is what this would be reported in. And in the event that, let's say, they made 1.5 billion in profit for the quarter, that let's say they made 1.5 billion in profit for the quarter and for somehow between the surgical financial loss and the um expected credit losses let's say they managed to keep that to to 1.5 or a little below 1.5 you might see jmmb instead of reporting what happened for the quarter

they might just report their full year and if the because they are actually ahead of where they were we are waiting on it right now right we are waiting on definitely we're not seeing a breakout at all we're not seeing no quarter versus so yeah and it doesn't look good yeah them them can't hide whatever don't look good for them agreed companies you know they'll report the for them all the time they don't report a quarter and then the full know they'll report the finality they don't report a quarter and then the full year they'll report a full year and done exactly and that might serve nice time nice time to get this class right yep yep yep because it allows them to hide you might

actually see i think they're what they're 22 ahead of where they were last they are they're 33 percent on a do i have this wrong no on a net profit basis nine months to nine months 31st of december 2019 to 31st of december 2018 versus 31st of december 2018 they're 33 percent ahead of where they were yep the previous year four billion in profit versus three the talk we had in meeting there when we before when we had a good expectation for sfc was they're this far ahead and then they'll report ssfc yet yes channel and then coronavirus yeah boy but i don't know but i don't know but i don't know they're rough so they get hit with the dividend restriction and get hit with the corona hit on the share price and also get hit with sagicore financial which was supposed to be their saving grace and uh boy there's there's just no

been an officer. And you could tell because there are people, there are company insiders that were buying up a lot of shares, you know, right up until their blackout date, right up until the 31st of March.

Millions of JMB shares were bought up. So, I don't know what to tell you, brother. I, I, the one thing I would love to see,

what you wish? I think I wished things were different, but, so you go. Yeah. I have to move on were different but so it go yeah it look like yeah the one thing I want to say

because I do think I want to say for listeners two things one I know I made a mistake at one growing up talking about the dividends

and we may have said it on this show also in the past that the dividends we figured it out but we haven't said it on the show I'm not sure but let me can I continue yeah that the dividends, we figured it out, but we haven't said it on the show.

I'm not sure, but let me, can I, yeah. Um, that the dividends that they'd get from Sajikor Financial is not going to show on the P&L, the profit and loss statement, because it's an associate company. So it's going to be included in their general numbers.

So even that then means that it's less of a, a good reason for a good deal for them. They'd still get the cash and the cash flow. We did say it on the show. I did mention the cash flow there.

But JMMB certainly have what seems to be a hit coming. And I think some people know because the share price has started to fall over the last few days. Somebody said to me, the thing that SFC,

I think David tweeted about it yes David tweet David tweet very very early as it come out David tweet about it

I can't wait for him to be pushing some heavy money in the market and then you'll see why I'm stopping

talking about very quickly oh gosh we'll see talk talk after cool let me not talk about it until me get myself right we'll see talk talk cool let me not talk about this till me get myself

right right I think David wants to be a market yeah I think David wants to be a market mover you know but he's not going to move the market in the wrong direction for himself so just for 2019 their financial year of 2019

and it's important their financial year ends the 31st of March. Their financial year for 2019, they made $3.8 billion in profit, only $3.9 billion. And as at the nine-month mark, they're already $4 billion ahead. So they're ahead of last year. long as they can contain the sagicor loss and the expected credit losses to whatever the profit for the fourth quarter was they can still report being ahead of last year but how realistic is that yeah that's a gamble you can actually work it out if you want to work a percentage on their loans and whatever but i would not i i've already stated my point. Yeah. Good luck. I'll see you when you guys are good again. Jamaica producers. Boy, you're not tired of talking about this? It's sick and tired.

I think we talked about it when the results came out. So I haven't spent too much time on it. I have to say that I love it still. And everybody's favorite Randy, say. Yeah. Except for the barita, the dark horse. Oh, yeah. you're right. Yeah, yeah.

Which is funny because I actually don't own any Barita shares currently. Same. Very interesting, yeah. But I still believe it's a dark horse, and I still intend to profit heavily from it this year, if all things go as planned. They have an APO coming, right? They've just said that they have an APO coming. We didn't, we would have passed them. We they have an apo coming right they've just said that

they have an apo coming we didn't we'd have passed them a call mentioned them long ago but i think that's worth mentioning that they do have an apo they just got the permission to have their apo you got the permission or it is the table they want they got they said that they're going to table the request to have an apo at their agm which is to be held on July 6th. Yeah. So soon, soon, soon. And APO, we'll see how the terms for that go. Yes.

So going back to Jamaica producers, Jamaica producers, I mean, still like them, 22.95 is what I'm sure that today they're 18.16, 18.2 times in terms of our PE ratio. Doing good. Next up is, what is the next thing? Your favorite. JSC.

Yeah. My favorite company. PE ratio of 28.7 times, 28.6 times at a price of 20.8 six actually 19 or 20 thereabouts, I think. And I think I exited about 21 to 21, 22 thereabouts. Yeah. Cause I realized, I mean, you like them, but like, don't like can't carry a shop. Right. And while they have good trades happening, they have, they have good income coming in. End of the day.

It's not like that carrier go shop they're not worth it in my view currently for my personal goal and timeline I will always state though that JSC will always make money and will always grow as long as people are

buying and selling stocks and as long as more companies are coming onto the market. Exactly. And a large part of my outlook for them was that they were supposed to be having, you remember how much Mrs. Street Voice had mentioned for the year? Was it 20 or 40 listings

or something like that? Yeah, it was quite a lot. For this year, Corona mashed that up. Who is going to be the first to come back and set the trend again? Yeah. Yeah. As it is now, though.

Down on revenue for the three-month period, but ahead. Am I saying this right? No, they're not down on revenue. They're up. They're ahead on revenue, and they're ahead on profit. But I believe that these gains have been priced in I would have liked them more if we were having that raft of IPOs because you know that means a lot

for them yeah but Corona hit them hard not much else to say not much else not much else to say so that's the JSC next up is kex ah another one i don't have really much to say so i imagine corona was not a good time for them as well no they actually stopped

services completely at one point wow yeah it actually stopped i remember them stopping services at one point and stating that, yeah, during March 20, and I'm reading from the MD&A here, during March 2020, the company suspended passenger services on several routes and implemented cost-cutting strategies while maintaining our courier services throughout the island. So you can send stuff, but you can't go on it. Notwithstanding, we expect the pandemic to have a negative impact on fourth quarter results.

And it is usual monitoring the situation to blah, blah, blah. So these were their third quarter results, nine-month results up to February 29. So that means that for the year, and then no Corona going to hit them. Um, if they stop in March, April,

May, so the year done for them. So they already know what is what they know, how good, bad or ugly it was. Um, and let me see if you say any of them. Well,

they're selling I think it'd be too obvious if they sold and there's also not enough insiders for them to sell yeah ooh no in February right before their financial year

ended Monday February 25th a connected party purchased some and a director purchased some in February. But those guys might have different timelines. Yeah, you can't put a lot on that. If you believe in a company, it only makes sense to get better. Exactly, right?

Because they're not like us per se. They're there for the long haul. So they have to think, okay, this is bad, but we're going to be here five years from now and I will appreciate that i bought those shares at this time um as it is now even at 8.11 cents the p e ratio of 29 times is i think high yep and only set yeah only set to be higher uh i'm breezing kicks personally

so that's what express yeah not the service though just the stock actually enjoy the service i don't travel that much sometimes can't really speak for it oh wow it's i mean it's a nice country ride um people have followed my feet i don't know man get yourself a car grade yeah if we change make sure you're the Waffle one in the relationship oh wow oh wow

Key wow Key which we have mentioned when we were talking about GK I think we've

spoken about Key multiple times yeah Key is a company that you're going to have

to look at think of it like a new company what's important for Key is what's coming. I wasn't bored with any of the old numbers. So one interesting tidbit I'll give you from keys numbers is that they seem to have ended their relationship with,

um, they seem to have ended their relationship with their reinsurer. Yes. Meaning when I said ended their relationship here, I mean, um um the contract yeah so how you got i said it again yeah so so understanding how insurance works is important we said there's two parts of the business one is the premiums and they don't really insure themselves what they do is they're reinsuring the reinsurer and it would appear that

yeah i would appear that because of the kind of risk that they have and the size that they were meaning small they weren't necessarily getting the greatest rates and they were getting hit hard on that and the last set of information that we got was that they seem to have redone their agreement with his prayer where they ended ended the agreement with with them and there was no provision in that for monies to return so they put the hit on their books which impacted their hit hugely if you know to analyze businesses you know what you know you can draw some inferences from that and next steps from that um in terms of ownership gk owns them fully now and they are also

no longer a junior market company. As of the 9th of April, they are a main market company, which means no more tax break. But you only pay taxes if you make profit, and they haven't made a profit in a long, long, long, long time. But let us see what comes out of it. What do you call it? A motor quota share reinsurance agreement. Termination. I usually

hold these things back. I'll just say it. They're under a group now where there are multiple insurance companies. They're probably just going to group up with them and enjoy lower rates because it's not just Key alone now, it's the entire group. And Key itself is a vehicle that might be used for all sorts of things. We've half tweeted it, we've half

said it it still like he thankful for the money i've made from key as the and so is my landlord and um i i continue to be a shareholder happy sure happy expectant shareholder leave it derrick kaylee not a quiet one. You can tell that one, don't I? Kelly, Kelly, Kelly. My boy. Yeah. Kelly, Kelly. Kelly, Kelly. Kelly,

Kelly. Kelly, Kelly. Kelly, Kelly. Kelly, Kelly. Kelly,

Kelly. Kelly, Kelly. Kelly, Kelly. Kelly, Kelly. Kelly,

Kelly. Kelly, Kelly. Kelly. Kelly. Kelly. Kelly. Kelly.

Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly.

Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly.

Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly.

Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly.

Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly.

Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Kelly. Yeah, there was some construction thing. Did that happen yet? Nope. You know what? There is a petty bet that I made with somebody. I didn't remember who it was. And I told him that there was a date that we must look by. And I said, I bet you say, and it was like a year or two down the line.

And I said, I bet you say, like a year later, we're still going to be waiting on the, what the hell was it? Arakabesa? Besa? Yes, Besa. Besa yes besser better something yeah yeah yeah well it better it better miss his news to me as of the last i heard about it was october 26 2018 wow it's so long ago that the the better villas were supposed to be done in partnership with Sagicor, right? And the St. Mary development was supposed to cost 22 million.

And developers are already taking reservations for the units and they're supposed to be delivered by, guess when? 2020. Yeah. Yes, I guess not. So again, just like we've been waiting for how long for that we still continue to

wait um in vain you're really waiting in vain this boy best of properties suppose we delivered in 2020 and all know we can't reach and it's definitely not going to get yeah yeah tired of that um tracks on records they did buy back there they did buy yeah they did buy back their franchise yes yeah completely june 13th 2020 jamaica observable okay every news though 90 for tracks and records need i say more revenues though 90 for tracks and records need i say more no well i see a restaurant corona dashed that way i mean i heard opening back up and god knows i'm happy that i opened back up because we need things to open back up but

as it is now yeah kelly what's it what's the share price $1.70 a P E N A a P E N A they have not made any profit they have not made any profit in a long long time I mean the entire company is worth $170 million

that's the market cap that is crazy. Anyway, I'll show you how crazy it is later. I'll move on. I think people are here enough to know how we feel about it. Yeah. At least I have something specific I want to say. I said that right there.

Yeah. All the UK developments going. About how much stores across the UK. Yeah, we're writing right now going to uk and nobody don't stop and eat how much stores build how much are they actually built about the same amount as best answers okay all right cool great kp reit kingston properties reit one of the oldest companies on the stock exchange one of the older companies on the Stock Exchange. As much as I don't pay attention to it, my authority is based on

the stock and all that. Oh yeah. Yeah. Amando, I think. Black man money. Yeah. And it stayed that way. And it's

Black owned business. They're weak. Somebody tell me what's even a like black old businesses really all to this date hurt me yeah it was i think he was just talking it's one of them people on twitter oh they're just talking talk is easy yeah um yeah talk is cheap but the black man business um nicely balanced board two three women three men i think one of the most um noticeable names from it is gary sinclair who used to be uh used to head lime cwj wireless which has to do with how they start yes which is yeah start of how this whole thing came and i'm happy fight yeah man this is this is this is the sort of thing that reads slow money rich money and it's good to see one of them in the hands of a black man and black people so you care about your money over the next 10 20 years

and you definitely not look not not headed but just want a little pension asking investment until you buy black owned businesses businesses. Well, guess what? Yeah. That's right. There we are. You can own one. You can be the black. I think Corona might...

Yeah. What do you think about them in terms of their business prospects now, though? All right. So, the thing that... Well, they have residential

thing there. Real estate. So, you know that if it's not long term then problems i don't i don't think that we're necessarily in the short-term market to be honest but that still might be a problem might have people moving back home but they really they recently did something left on sale of properties owned yes because they were looking for new opportunities I think they bought

Indemore yes so yeah what they put it is that they wanted to move away from the South Florida market and into

a more lucrative market in the Cayman yeah so yeah so sold out a lot of the the Florida properties and

bought Cayman and Jamaica bought Caymanian properties yields there low and slow money so it go I'm saying portfolio

is distributed in 25% office 31% residential 37% warehouse and industrial and 7% retail. They might just be fine still. Yeah, well, you know a company like this is

built to be fine no matter what. Yeah. I've seen those guys moving really. Their tenants have not seen a mass migration from places. Yeah, people are just kind of holding and waiting. 31% residential residential people have to

live somewhere businesses have to exist somewhere is that nicely yeah if you care about REITs and you're okay with low and slow money understanding what that means then that's fine they're having their annual report that their stock price went up 11 in 2019 and they highlighted that so that gives an idea of what it is that they're looking for all right so if you're looking for that sort of low and slow but it will weather storms like corona and market slowdowns then this might be for you yeah i like them but i don't own any and i don't have any intentions to own them for a while uh creamy still a shareholder a bigger brand because him did sell me this him did sell five soleys

him did sell me this not sell me well yeah he sell because he was part of the team to list it I heard about Devon House recently I don't know what was that

3,500 I heard about Devon House recently good bad ugly what was that good man good wasn't there going on the creamy i know they're related but devon house numbers don't touch cream i know i know i just talk about cream itself but yes continue that's just so you go back to money um so yeah yeah their year ended february 29th 1.7 bill revenue versus 1.55 bill revenue the year before and in

terms of profit last year they made eighty eight point seven million in profit this year they make fifty four point six million in profit business down and down heavily yeah that's right. Yeah, and that's it. They no longer have the tax break. So now they're facing straight up tax, which is funny because last year they paid more in taxes. Almost double. Almost double the amount in taxes.

So the business itself is just down. Yeah. Rough. From a, not at a gross profit level, because at a gross profit level, they're still high. And at a gross profit level they're still high and at a gross revenue level they're still high but yeah I think they're just going to have to weather the storm

I remember being bothered at one point let me go back and look I remember being bothered at one point by the increase in their admin costs yeah but now I think it has gone so far that it's it's it's no small yeah selling and distribution 15 uh is is we sinker that distribute for them yes i believe is that we think does our distribution

okay well that is good in that, in that regard. Yeah. Distribution lock. But at the end of the day, their staff costs will, their, their expenses overall is going to need some handling. Um, I believe there was,

yeah, I mean, I still own it, but I wouldn't say I own any great amounts, a small amount. And I'm not really excited about it right now. They're going to have to take a hit. Maybe two years down the line, they'll be

good in terms of the market again. Unless something major change. Yeah. Oh well. That's creamy. What's next? KW. Kingston Warrens. The part of JP that we

mentioned. Yes, steady money for JP. Kingston Wars probably at its most realistic PE ratio in a long time. And it's a PE ratio of 24.4

times. And that's at a price of $57.49. point four times and that's at a price of fifty seven point five fifty seven dollars and forty nine cents I mean Kingston was the Kingston war since always come in they don't really treat every day but not very heavily you know yeah and it's really just a matter of how COVID affects them I think that is that is it. Dividends will still be paid out because they have to pay the parent company,

parent company that money. And they are doing their AGM. I saw some live stream stuff there, but I don't know hugely what it is. Tell me something, JP Logistics fall under Kingston Warps, the Europe part? No.

Nope. Separate. That's JP's thing. tell me something JP Logistics fall under Kingston Warps the Europe part no nope separate JP that's JP's thing JP keeps them there but Kingston Warps are sensible purchase for JP

we need we need logistics we need the business integrated and make it run of course and that will never change

yeah that is not going to change that's a smart business never change yeah that is not what is a smart business purchase so with yeah that's the dead as them owning their vertical in fact it is true yeah they own their vertical completely that's speaking about JP you know I was also this um this is the thing they quite again people do Basically People don't understand Profitability So JP was

Making They need a stronger logistics line So they can actually push their products better They buy into Kingston Wars So it doesn't actually make them money. But, it decreases the cost

for them and their product is unprofitable for them. Then, the product is more profitable as long as the profit, so, if over time,

the profit, the newer profits they make from the acquisition, actually, increases. You know, pays for the acquisition actually increases you know pays for the pays for the acquisition itself but then good because you know in reality how much they actually own 40 odd percent who owns the rest public so you can't have other people money play even though our money is to the other people money into it because the interest, the interest, we only pay for 40 odd percent, for 43 percent.

The loss we get, the loss that is owed to us, by the way, KW is not in a loss. So clear that up. So the loss that would come back to them if KWA wasn't allowed to only be 47%. So as long as they beat out the acquisition costs and the strength of their business, actually, the growth in the business from acquisition just makes sense. So that's why the KWA logistics, the JP logistics play makes sense because to them it was an expense line. Yeah, and why take on an expense that you can't eat from? Just build out a full thing.

It's not cheaper for us to do our thing so we're making more profit on our lines that used to go through that expense line and then now I bring in some more money from other people so it doesn't make sense yeah literally it's it's a logistics version of canopy yes yeah we have Or our version of Canopy. Yeah. We have to pay this fee anyway and that's going to form a part of our cost.

So why not just own the thing that we have to pay the fee to? And if we run it at a loss, I'm so sorry but our products and

our main thing still got going. And if we run it profitably, we still make money. So you cover yourself there. It just makes sense.

It's big business as understanding that business. i don't know who put the thoughts recently that but dimitri was ex i think he was just thinking he was explaining because somebody mentioned about lab and palace what palace by some muslims amusement yeah okay yeah I didn't see either but I think the meteor's trying to exploit he just chimed in to explain you it that whole that could be a sensible purchase for them in that same line of thought yo hey if silly production arm if they can actually

push things content they can push things through this content exactly they can push things through it and be profitable on that content then probably then that's their stake in price could to do whatever whatever as long as you they're still profitable on a total from their purchase of palestin they've not made money not saying that i'll be going was going to my palace say it again because I can hear already I can feel my phone going off

Randy I heard that you were saying on some show that as far as I'm concerned that is not my palace I've not seen where they would push that but that's the type of thinking that would come from that yeah conglomerate yeah that's true that's that's the type of thinking that would come from that yeah conglomerate yeah

that's true that's true that's true yeah so with all of that said we kingston wharves is great in the long term depending on what you think and what your licensed investment advisor says and with that nice segue, you did mention lab. I hardly ever talk about lab. People always, I think people think that one, I have these great feelings for lab where, yeah,

if my seminar like it, am I offended? No. Or like people, I die soon, them talk about it with me. I don't like that feeling. So I don't talk about it much.

And also I don't like having, I don't want anybody to ever think that i am saying anything or know anything inside people won't believe when i tell them i don't know nothing with lab i stopped working at lab day to day sometime now but people seem to still think that i know everything and then to the other i mean i don't know i can ask but i'm not going to be asking all the time because i also want to have that obvious line of separation anyway i'll talk about lab uh just released the six months numbers yesterday long time i don't sweat over certain numbers like right off the bat revenue 471.4 million and this is six months results ended april 30th so this is another company guys that that is giving us a month and a half, almost two months worth of Corona experience, right? So 471.4 million in revenue versus 334 the year before.

And for the quarter itself, 145.1 was last year. This year, 208.4 million. And this is just revenue. Strong, strong, strong, right? The gross profit is high, I won't go into those numbers, but they're also increasing their gross profit margin, which means they're making more money off the money that they're making, that they're taking in.

Admin expenses on the six months did fly from 49.6 to 78.1. I believe that is explained in MD&A. I could be wrong, but I believe it's explained in MD&A where could be wrong but i believe it's it's explained in mdna where they said that it is actually yes these increases are primarily attributable to admin expenses include increased by 27 million or 55 and these increases are primarily attributable to staff costs due to increased work volume yep um and they continue to do that thing you know there's this video of me talking about a lab all the people that was never put out publicly i have my i actually have it but i won't be the one to put it out but in it i think i talk about um one of these points that i did put together

for pre-ipo was to concentrate on the fact that the lab does try a lot to keep its admin expenses below 20 percent or below 16 percent usually is what they like to do 20 percent is what it's people tell you 30 percent they have different ratios point is they keep theirs they kept theirs at 16 percent um of revenue so 16 percent 16.6 or 16.7 percent of the revenue that comes in is what goes to admin costs. So even though the admin costs went up, the revenue also rose. And the nice one, which you know I always talk about, net profit. Yeah, that one, that dirty word, that dirty phrase, profit. Six months in, 86.7 million profit versus last year

six months was 57.1 people 57.1 million when the lab made that in april 2019 was the greatest profit that they had made ever in their existence in a in a six-month period right there are years when the lab never made six months never made 57 million for the entire year for the quarter they made 37.7 million versus the same quarter last year which was 24.5 right um here's a comparison that i give people the easy comparison. Last year ended October, 2019 was the best year ever in labs existence. October 21st, 2019 ended the labs highest performance year ever. And they made $94.7 million for that year.

In six months of this year, they have made $86.7 million in six months. They have another six months to go and Corona done. And if you guys heard, check half a tree, Corona done. Corona isn't done, but I think a lot more communication from corporate entities have to happen now. And so they have another six months worth of messaging to come. And yeah, I tweeted it long ago, a little after after ipo that only thing i expect lab to break is records and they continue to do it indeed yeah uh to concentrate i mean i concentrate heavily on

the piano for lab i know lab very well but let's not not that they pay they also pay dividends and here's a cool point talking about them buying buying things. So in terms of cash flow, so dividends can only ever be paid from retained earnings. And the lab's retained earnings are, as of April 30th, 2020, is 244.9 million Jamaican dollars, right? That's their retained earnings. Their cash on hand, if you look at the cash flow statement,

their cash and cash equivalents at the end of the year, at the end of the period, not the year, because we're only six months through their financial year, is 352 million. They might have more cash on hand

than retained earnings right watch this them have 352.4 million you remember kelly they have enough money to buy all of kelly and still have hundreds of million left over because uh what i said, Kaylee, was like 170. So they'd still have over 100 million left over. You can't buy it and change the name. Kimala Lab. Kimala Lab Entertainment. Yeah.

Kimala Lab Enterprises. Yes. There's so many things that, yeah, the lab, I mean, I'll tell you, I WhatsAppped her after I went through the results

and I sent her a clapping emoji and said, amazing work. Especially in a time clap emoji and say, amazing work. Especially in a time of Corona, this is amazing work. Because I was sweating over whether or not they would have a dip because I know a lot of companies cut their marketing budgets. But now Kamala continues to truck on. If you think about it logically, people, all those companies that tell you to be Corona safe and all those notices about Corona that go out there and all those ads that include Corona and people in masks.

No, you think, you think it's not marketing companies that making those ads, marketing companies make ads, right? That's what they do. So you think they stopped us because the time of Corona is different things. And,

um, obviously there's a huge shift to online, the eyes online or online media. No, but it doesn't mean that they haven't shifted they've shifted right quite along with them so i i i don't know yeah you have anyone out there sir yeah there's literally nothing else yeah there's there's literally not as i can say i don't know i mean they're seven million away from what they did last year last year was a record year for them. So do with that what you will.

I continue to remain a proud Lab shareholder. Big up Lab. Yeah. Last D. Last D, last D, last D. Lascaux Distributors. Current PE ratio of 20.9. think last year you had some nice numbers recently or was it last year?

I think it would be last year yes it was last year so for the year they made 19.5 billion in revenue versus 18.1 and for

on a profit basis net profit for the year 725.8 mil versus 590 and for on a profit basis net profit for the year seven twenty five point eight mil versus five ninety five ninety seven point eight mil the year before so as the has had their earnings increase you cutting the December third nine months the nine months this the nine months in 2019 were less than nine months in the year before and they know they have the final year better than the year before so that time the last quarter was strong strong pushed even though there was corona there right. Because they report up to

March, the 31st of March, so wow. Wow. I would rate that sort of performance. And of course, it's being considered as one of those companies that is built to weather

crises like Corona. Yeah. They have a segment report of those companies that will that is built to weather crisis is like corona yeah uh they have a segment report that they pulled things out of a pharmaceutical division and a consumer division um and the the the revenue for the consumer division was 15.6 or 15.7 and the pharmaceutical division revenue was 3.8. And that's billions, by the way. Strong results there. I am comparing it to last year, same period last year where the consumer division gave them 408 million versus 557 this year

and 189.6 million $557 this year. And $189.6 million versus $154 this year. So pharmaceutical actually dipped in terms of results. But consumer more than made up for it by, I guess, being more efficient because the increase in revenue is not that big. Yeah. So that is impressive. that is impressive that is just a title ship it would seem indeed yeah you cannot these kind of results sorry you saying something reading so okay yeah yeah and of course they have their commissions

they have a distribution agreement with a distribution company called Productors Rush Interamericana I guess a local distributor but coming from Central America no apologies and they're very clear on what it is. It is them distributing that company's products in Jamaica.

Oh yeah man, you're the one who would just need a distributor. Yeah, exactly. Unless the business is that much of a category for themselves right now. Okay, that makes sense. Yeah, and they're pretty good and so they have

their commission which means they sold more of. They sold Roshi's inventory. They have less this year than they made last year. Interest income was also down, but miscellaneous income was up. I don't like that. I don't like when miscellaneous income is a thing that's higher. And it's tripled. I don't like a tripling of miscellaneous income.

Oh, yeah. I don't like a tripling of miscellaneous income oh yeah yeah I don't like when it comes from there it tripled from 5 million to 15 million yeah at least oh well yeah

yeah I don't like that sort of thing at all. But looking at overall top line, I think top and bottom line, I think that it continues to be strong and I think a lot of people in the industry expect it to be very, very

strong. And expectations is what influences share prices heavily along with good results and not going too deep into this here but it results on the surface of it seemed pretty good and the expectation also is pretty good you have heard lots of analysts speaking about last day as a thing that is meant to weather coronavirus storm you know they distribute cheap products blah blah blah

whether or not that is a reality on the ground is something else, but I mean, hey, good enough results. Indeed. Indeed. Yeah. Lassef, or is it Lassem that's next? Lassef. M. F. That's next. You want to take that one? Sure.

They had closed today at $2.52 per share, PE ratio of 37.7 times um we don't have full numbers from them yet but they are a financial company oh we don't have anything else march 2020 numbers on them no we just have up to december 31st actually it's not good to not be so good on them as a type of company they are but they were you saw the thing there well they look at the last quarter profit that's a hit I always surprised by what was already before

the last quarter profit professors only two million dollars Oh come create a hundred and six what was the reason for it Oh tax tax oh yes that's not paying taxes no yes Lascaux no longer has a tax yes but that tax is still heavy I'm a. The thing is, if you look at it, profit before tax was still bad. Profit before tax is $40 million. Compared to $113. So you're taking a hit up top. But why would you have taxes of $38 against profit of $40?

Oh, you're right. Yeah, that is strange. I read the MD&A which I hadn't when I glanced through it, but they state in the MD&A that the third quarter profit, though low, is an improvement on the

previous quarter, which closed at a loss of 16.3 million. In comparison to the previous year, however, LASIF's current three-month profit significantly underperformed the 106.5 million. This comparison to the previous year, however, LASF's current three-month profit significantly underperformed the 106.5 million. This is management speak, where you say a lot without saying anything, because nothing was said a while ago. This is attributable to our

continuous, overly cautious approach to loan loss provisions. So they are deliberately being cautious with the ECLs? Look, I'm not selling on promotion expenses that jump yeah that last F continues to go through a rough time and this was signed by

Jacint Jacint Hall Tracy Jacint Hall Tracy however I think it's just Jacint sir Jacint? Okay I don't know. I've never heard Jacinthe used by anybody. It could be a

Spanish name. Maybe she was named after like a Cuban name. You know, they say Jacinthe instead of Jacinthe. Jay is, yeah. Probably not. But she was on behalf of the company up until May

so I guess she had to be the one to say this uncomfortable thing it's always hard for them to explain yeah man, rough bad man admin expenses jump from 231 to 265 so it's not much of a jump oh yes

yeah selling and promotion expenses 203 to 265. So it's not much of a jump. Yes. It wouldn't be much of a jump. Yeah. Selling and promotion expenses, 203 to 261. So you're seeing about 30 million on the first line and about 60, close to 60, 50 odd.

So 80 odd million difference on the second line. Look at 526 versus 434. And that 80 odd really counts as one of those little cases where that number looks small. Yeah, it adds up. and that 80 ad really counts as one of those little cases where that number looks small

yeah it adds up so it's now 92.9 mil versus 163 in the previous year so they're already below

and then finance cost is 51.9 versus 49 so the finance cost itself wasn't very big in terms of the difference but

it's taking 50 million from 163 versus 50 million from 92 yeah and then that tax and then that tax yeah i just don't understand why the taxes are high why would the tax be 38 yeah so i'm not seeing a profit of 40 yeah that is very strange because isn't tax supposed to be 25 and i don't have a line explaining it I know sometimes it acts varies based on whatever happening this is I wonder if your tax liability that day that yeah Honda but we'd see it elsewhere because they do the same business as GK meaning they're there into loans and they're

into one part of the GK financial group during two loans and they're there into loans and they're into one part of the GK financial group they're into loans and they're into remittances I was in like a deferred tax liability on every so my that but a little bit the opposite of that like you push your tax you push your tax though so I did when you have to pay it or something like that wonder so where that they said nothing about it yeah but we will see when we see the audited which of course is late yeah I mean I like lassef but I don't like lassef enough to buy any and I think it's overvalued personally PE ratio of 37 times and they don't have the tax break anymore that is a big enough deal to have me worry. Yeah, I will.

All right. So LASM, LASCO Manufacturing, the third, well, third open company in the LASCO group. What do you feel about them, Danai? LASM. LASM is almost, I think everybody here,

hear about LASCO, right? I don't think we speak about LASCO. LASD, I think. favorite Alaska right now I think the was from thing that I'm on from the ruling time people be done it ah yes in recent times all right ran is a fun yeah they made 7.9 million in revenue versus 7.6 million the year before that's that great the comprehensive income is a lot better a lot closer on the comprehensive income side and they have financial instruments that they also lost a hundred and fifty hundred and forty million on everybody the market the market drop hit everybody boy

oh well i mean as it is now how else you feel about him it's a good company um i'm i'm not really hot on lasco uh well let's go my last time i'm not really hot on it i think that as we've spoken about how the protection they get from Elasti, but it still pushes Elasti to do better. Where it could become a we-sink-up, basically. So as long as we see a lag in Elasti doing better, as long as we see a lag in Elasti's numbers and Elasti actually pushing and being more... Because they're really the face of the company. That's's i would say yes yeah because then do the selling we we get the products from them and then we push from that

same i'll push them out i think actually them have like a arrangement where pretty much again this is just my view of it pretty much anything that lasts the same makes us device exactly but I will admit that they're not really it's still good money yes and and they they're fairly valued well not fairly valid if you compare them to the market or achieve their PE ratio yeah definitely on minimum I said him but that's him very often they trade it below thing they straight it they trade it on a low PE so if anything there's there's so there's anything there's more value to be realized in it from that from that perspective yeah well I mean a year ago you know there are about four dollars in

July now you're looking if you look as far as September, they were $5. So now when they're at $3.97, less than $4. If you consider that they may actually continue to make profit, because even though the profit is low, I think there's been a heavy sell-down. They got hit in the same sell-down

as everybody else in February, March. So the value is still there, basically. Exactly. People bought this at 281 in March you know huh I know they are 397 that is nice money make you make a good 41 percent on a company nobody's necessarily paying attention to I'd have good enough volumes you know not big major volumes but 200,000 units you can you can pull you can pull yeah 100 grand 500 grand in and out yeah but but there is some good for that sometimes there's a lot of good to be where people

aren't paying attention and they can't surprise. Any good news, boom, them fly. Yeah. Everybody's at Columbus. Oh, wow. I've discovered this place. There seem to be some people here. I never thought of, oh,

that says how hungry I am. I never thought of the type of food that is at this time. Oh, I mean, it's a timely joke. I don't really rate Columbus oh no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no okay there are these layers you should be hungry longer anyway was the last one is lumber a company that I think a lot of people have ignored definitely price done by people press chilling is it yes 1.1 and I think I still own shares in Lumba yeah yeah Lumba had low yeah a good amount in there still like them 1.1 I'll probably buy more they have a PE ratio currently at $1.11 the PE ratio is 9.5 times wow but they do have some some results to give us but people

limited the last reported was was January 31st and they were at the time it was there six months number so they have the nine months numbers to tell us no yeah oh yeah brand new company not so they don't compare it oh my gosh yeah so i've watched the prospectus they're actually due right now because the nine months would be due february march they will be due june 15th so they are actually due right now. So any day now, probably tomorrow. I mean, I like, we're both shareholders of Lumba.

I think we both like it, but I think we should be open with the fact that Lumba may have a hit. Yeah. Coming from Corona. Yeah. Not that necessarily like construction stop. We heard that it's slowed, but I think just generally a lot of the, the construction activity might have slowed down.

So I wouldn't be surprised if I see a drop in results, but, or a slowdown in results, but at the same time, I mean, new company technically,

you say, we'll have to go look at it versus, yeah, we'll have to go look at it versus what we see in the prospectus and looking at the

blue power numbers and splitting them out, doing a little bit of hard math to the blue power numbers. Well, you can just get a segment report for the old blue power numbers. So looking at it in there, I forgot how they did it, the one month thing.

One month, two months, entire thing. Yeah, I think they deliberately wanted it to be um not quite as easy for us to for us to go through but but it looks stronger than what it was before yeah and viewing us viewing a company on its on its own merits yeah you're seeing a company that its own merits. You're seeing a company that is giving you a hold up. In six months, 37 and a half million in profit,

with an EPS of 5 cents, which gives you the PE ratio of 9.5 times, which is way ahead of a whole heap of companies on the JSC. I say a whole heap of companies on the jsc that's how companies i mean it is one of the lower pe ratios on it and of course p ratio isn't everything

it's not to be all and end all sorry it's not to be all and end all but it uh even if it has poorer results I mean what up would push it to a PE ratio of 12 times 13 times I mean I like it it stays in my portfolio because I'm actually perfectly okay giving it I'm actually okay giving it a yeah a little bit of a weight along it is a long-term pick believe that or not which it always was because of the the shit the limited shareholdings it and um cabroco anyway so i still like it and these these results will be interesting because it's a it's uh i think of these results common results as a real peek into what the underground construction

sector looks like and how corona will affect the underground construction sector. I see Hydro and Alumba put it on Adino. Really? They're setting there, they're giving 1% of their online sales. They're donating 1% of their online sales.

I'll send you the link. Wow's interesting how do number used to be listed and they um they they're also owned by early's part owned by bogdanovich who is also part owner of part owner of kelly correct so he certainly has his arm he certainly has his his his work cut out for him oh yeah I'll cut that long man said that we like it and I'm going to call time on this one who knows we've been going for a while wow his people are three hours yeah I might even still chop this up let do a a quick so guys thank you for listening to this part of it we'll be back with a second part and more companies later on but we're calling time

on it here because we don't want to overwhelm you too much with it um and who knows maybe we'll come back we'll have uh more guests but we will continue i want to get this marketing out because it is getting harder and harder to do it. I might never, may never do it quite like this again because it's quite a few companies and more, more, more coming out. Yeah,

it's quite a bit. Yeah. Anyway, that was hungry than I just know. And I am hungry and tired, Randy. And this has been this week's earning season.

Hope you enjoyed and we will see you again next week for more of the market review. right guys best of thanks for listening boom it is what it is