Earnings Season - The State of the Market - 2020 Market Review (Part 5)

Episode Date: July 2, 2020

This week the full market review continues! @HDanhai & @RTRowe cover 13 companies including a few big ones, like NCB ($NCBFG.ja) and smaller, newer ones like Mailpac ($MAILPAC.ja). This week doesn't go long, but they throw in gems nonetheless and @RTRowe shows what sleep deprivation can do to a mind😴.Come for the gems💎, get them as requested...Contact Us Here 💻 📧 [e-mail]💻 podcast.everymickle.comFollow us on Twitterwww.twitter.com/Earnings_Seasonwww.twitter.com/RTRowewww.twitter.com/HDanhaiLinksMPC Delay Notice - https://bit.ly/38uXlHCShout-Outs@PhilburgInvests & @ExaggeraShan ★ Support this podcast ★

Hi guys, welcome to this week's earnings season. I'm Randy Rowe. And I'm Danai. Oh yes, okay. I'm sorry sir, I couldn't do all of it. No, it's alright. I don't even care. People know by now. at RT you're on Twitter if you don't know you know sorry about that and I'm I guess I was really eager to say my name there you know what I'm saying

we missed last week yeah we have I think we've missed two weeks now so I think the people might be itching did we miss two weeks or I think I missed

every other week I think I've accidentally turned the podcast into a into a fortnightly podcast. Which might happen guys. It's not official yet. We've just been

really busy and had bad schedules and bad internet and all kinds of things. But we're back and we want to wrap at least 20 companies hopefully in this episode. We want to really get this series wrapped up. So myself and Danai are going to rush through rush through not rush but we're going to push through these companies yeah because i didn't realize how many we had ahead of us and i mean we're recording this now when june done

and what was a hell of a good day yep for the markets right interesting day yeah um I want to look at, I didn't mention anything major that has happened recently. I mean, there are a couple of financials that are out, but as it is now, I think one of the most anticipated ones is still JMNB, still not out. Jamaica Tees, I see the directors exercised their options that they spoke to us about. 800,000. Yes, maybe that's why i had to i mean they were smart they had their not smart but they're fortunate i should say that they had their agm right before um did they they had their agm right before corona no so no man, the AGM was recent though or it was mentioned oh no, so they put a proposal out for the changes

yeah and the changes have to be done at an AGM or was it going to be an EGM? actually I had a conversation about it recently I just needed to actually double down on what's actually happening there was an AGM scheduled for March 20th but they also still did they did the AGM recently, very recently, last week I believe no yeah they were part of the

they were part of the sorry what I'm thinking here was that they were able to get their agm in before um before corona hit but no they were not what they did was they got the board meeting and where they told us about the resolutions for it there we go yeah and then corona hit and it had to get put off. So the JSC did that whole special session in court in order to allow a lot of companies to hold an AGM. I'm not sure. I believe they were, man.

No, I'm not going to swear to it, but I believe they were. Notices hereby given. I'm looking at a reconvening notice. 2019 AGM for members of the company has been rescheduled. They held at the Pegasus on the 17th of June. And they had to wear masks. I watched it. So they screamed it.

Yeah. But I don't think they voted on anything. Did they? They did. They voted, but they removed the stock split. The stock split. So they screamed it. Yeah. But I don't think they voted on anything. Did they? They did. They voted, but they removed the stock split. The stock split. The stock split decision.

Yeah. And I think what they're doing there is they're being safe. Yeah. Just in case that any shareholders in the future choose to challenge the agent. Even though they followed the law. But I think they decided,

you know, put the stock split decision a little further down the road when people can actually reconvene again I guess when COVID lift up completely when we've gotten more used to you working with it but the other things if memory serves me I believe I had an episode I don't remember which episode somebody can check right now if you're a good fan or you can check earning season podcast.com and look at all the episodes and see what um what episode it was that we spoke about the things with jam t and qw qwi yeah these guys can hear from danai zion we are recording this late again um i don't know if there's anything else major what else

happened recently than i because i don't want to i don't want us to be so non-current true and all that stuff has happened yeah quite a bit has happened you know i think what's it mean we missed a week so yes so you don't know what is new from what is old, from what is really old. Paul's put out their their their

their COVID plans. Because Phil Berg invests. You said it to me, I said oh Bo C, look look he was saying that it's like big talk from the Pulse team which is essentially they're saying that about 2-3%

of the business was affected for the year by COVID so and only 10% impact really being felt 10% of the business being feeling the impact of that.

Funny wording as always. Yep. That's interesting. Interesting wording because I think it's possible for many to think that that means 10% of the business comes from the things that

were named, which was named, I think, the business comes from the things that were named, which was named, I think, the hotel business and the hotels business and the hosting of Caribbean Fashion Week, which would have been put off because of coronavirus, the COVID-19. And international money agency permissions. Yeah.

Yeah. That was very careful wording. But yeah, because I think it was meant, I think it was meant to convey something very clearly with the implication of something else.

I don't think those are 10% of the business, but regardless, I mean, I still, I still really like Pulse and I said I've ended the quarter

very nicely. Yeah. I've ended the quarter very nicely. They've ended the quarter up quite a bit. Quite a bit, sir. They fell from yesterday. Yesterday they ended at $3.11. But they've ended today at

$3.25. Wow. That is up even more. Sorry, I'm surprised. I looked at the market earlier today and this wasn't the figure I was seeing. Yep. $10 million shares traded today. A higher of $3.42.

Wow. Pulse is always so exciting. Indeed. Around these times. Give me some good money. Yeah. wow Pulse is always so exciting indeed around these times give me some good money yeah big up to Topstrike I see her tweeting

how she she's been enjoying the past few weeks yep yeah big up Shadis I mentioned it when we were together

we've had her and the grow up people really love it the feedback has been strong I'll share that with you but Paul's excited and I guess

maybe people are excited about possible APO news maybe maybe they did indicate that they're going that route so might be near, might be close to key insurance some senior management changes i believe somebody had left okay the finance director limited office june 20th june 20th june 19th

the top the management of key has changed but there's no surprise there. They have new ownership. So obviously, yeah. When you own something, put in your people. Yep. Go in your direction. Go in your direction. Exactly. Ah, still interesting Key. I would mention APO earlier. So I guess it's almost mandatory that I have mentioned Barita who also ended the quarter. Ended the quarter um as well yeah almost a sharp increase just over the last few days at sixty dollars and thirty six cents

yeah i mean you could have picked it up for as low as 49 during the past few weeks yeah and it has averaged in the $50 range, especially the low 50s for the quarter. Yeah, since the quarter started. So, Barita continues to be interesting. It might get even more interesting now. It's funny that a lot of people bought into it right before the APO announcement.

And I mean, we're not sure what the terms of the APO are, right mean we're not sure what the terms of the apo are right you're not sure the prices but i guess people are so confident or maybe you think it's a misunderstanding or you think it's just people covering their bets who knows who knows well anything else you think happened anything else i feel like i'm forgetting stuff but i i i don't know it's been a while it has been a while people in time this happens to us when you should say email email us email us and and tell us uh what what topics well what topics you'd like us to talk about. Maybe we can make some interesting ones happen.

It makes it interesting. General Accident increases shareholding in motor one. So the Trinidad company they own, the General Insurance company that they bought into, they've increased their shareholding to 65%. Wow.

Big implications. Started out with both the trinidad and barbadian holdings motor one was a big grab for the motor one is the biggest um taxi insurer in trinidad um has locations all over trinidad and uh trinidad actually going through some rupture now yeah rough I've seen some videos with some air routing and police saying hey just make sure

we video when you're shooting everybody afraid no as they should be I want people to stay safe the petty side of me is remembering all the comments that were on twitter in 2010 when jamaica was going through its um stuff so really sad to see that summary like trinidad is going through that now you know rough guyana i'm more worried about guyana seems as if it inherited the oil curse early. The election. Yeah, the long-lasting election.

Yep. The election where nobody has decided. No one is refusing, is saying, okay, we'll stood down. A recount happened. Yeah, that's the oil curse. And I'm wondering how that will get sorted out because right now is not the time to have any and now why politics yeah everybody has it wow well on that dark note let's go into the review let me just jump right into it um last time we spoke we spoke about lumber that's where we ended so uh we'll kick it off now with mail pack

yep doing well since the last results yeah the last results um where they they and the last results were pretty strong right they had i think one of the things that jumped to my mind immediately is that they had stronger profits or the stronger revenue they're strong there's one of the results were stronger yeah in q1 that it was for the Christmas quarter which is usually their strongest yeah I think what a lot of people now are expecting is that Corona will allow them to have even stronger results because so many people have been home

and they have delivery services and of course a lot of shipping still happens. I think they have more space in terms of presence of mind for consumers now in terms of dropshipping and their services that they're offering. But this was thing they they had a little boom recently and this was after the dividend announcement so they come to the share price so June 25 mm-hmm they put other thing there yeah and you can see since it was on the day it was 185 and it's moved up to now 195.

yeah and so immediately the next day the next day yeah two million shares trading on it on that day on the day after that 786 thousand five hundred sixteen dollars yeah man so yeah i think so i think dividends are becoming i think there are some people in the dividend market the the dividend market doing some strong hunting enough i say yeah i seen some i see the people know that the financials not giving the easy ones like um ncb zone still shut down um who said i paid somebody paid the other day or said I would pay in light of the BOJ's

revised request I don't know who it was but I will I will shoot probably an entire episode just on that

because I don't know how legal it is for them to be able to do what they said they have done or intend to do but I will

see if I can get legal minds much brighter than my own to come in and comment on it but may pack people expecting it to be good as you say given consideration but the thing there the profit was higher than it was in their december quarter yeah yes yeah good increase on the chamber yeah which was which is generally strong for them right yeah yeah that's what people think because you know they'd have a lot of shipping during the christmas time and um what's enticing and nothing that's enticing about this is that i mean like you said revenue didn't rise much 364 million 364 point call it 0.8 million um versus last quarter not

same quarter last year last quarter which would be november to october to december 2019 it was 361.7 million but the profit is up from 96.8 million to 101.9 which might is that greater efficiencies I mean it's a greater margin but I don't know if it truly is an efficiency-led margin. Probably not. The gross profit itself is down. Yeah. But selling and distribution costs are much lower. So the expenses were less there.

So it might be efficiency on that side that maybe what they're the shift in the business it's more efficient on that side. So what they're doing now and where they're making up for what they were falling off in the business from before

with a new business, it might be, the newer business might be more efficient. Oh, I imagine ARM is contributing more. Yeah. I get you. It never occurred to me to check the MD&E. The director's report, I mean. I mean let me scroll up there too

yeah still that's a habit I have the last thing I read is that yep expenses comprise mostly staff costs, advertising expenses and store operating expenses which we can see

by reading it. Right? It's a reason we read this last. Yeah, this is where the tricky part. This is the tricky part. This part is hard sometimes. I enjoy

a good well-written one. A trickily written one. Not because it gives me information, but it gives me additional information about how good the people writing it are. I mean, they seem to hint at the amalgamation of

the business lines being the reason for it. Oh, well. reason for it but oh well I mean MailPack the business continues to be a good one obviously a

strong one pulls money it has good direction it has good potential it can go in a very good

place exactly I mean it has been and it's growing right that's wonderful it's a 101 It has good potential. It can go in a very good place. Exactly. And it's growing, right? That's wonderful. It's $101 million worth of profit in a quarter. And your business is actually growing. That is wonderful. And you're in a sector that is growing.

And who knows what can come in the future, right? And you're paying a dividend in your first year. You're not even listed one year yet. Well, the future right and you're paying a dividend in your first year you're not even listed one year yet oh well i shouldn't say you're paying a dividend you're considering a dividend yep interim dividend interim dividend yeah that's that's that's i mean i hope they pay one what kind of dividend you think they'll pay the amount yeah i mean the yield because i think i mean the yield. Because I think the yield is going to be tagged to IPO price.

Yeah. In consideration, because God, before you hear me say that, that's what dividends are tagged to. I'm sorry. Sorry guys, that's me slipping into some of the easier conversation I know that I understand. So let me be clear. The dividend

being tagged to IPO price is me saying that I believe that the board when considering what to pay as a dividend would be considering the average yield of the investor who would have gotten in at the IPO price, which at the time would have been a dollar.

What's their thing? What's their dividend? Policy? Policy, 75? I don't know. Look it up and I will look at how the cash stay. Cash and cash equivalents. 194 nil.

75% on their profits. to how the wording on that go definitely up to what actual what actual wording say companies admitted to GSC directives in the process of dividend buy sale projects an annual dividend of 75% of net profits available for distribution yeah of course after blah blah blah yeah the need to reinvest up to 75% but realistically this is the first quarter report and then they follow the calendar year this is their three months ended March. But you know that. Yeah.

I figured it's first quarter. But they have $194 million in cash. It is their first quarter. They do follow the calendar. What were you saying just now about the cash 194 million oh yeah and if you look at the thing their expenses not that bad actually no it's a well-run business that is that is that is a clean business i like i really do like that. It's not heavily burdened by much. Yeah. I like the business, obviously.

I'm just wondering what kind of dividend could come out of it. I don't see them paying over 1%. That would be amazing if they paid a 1% on this one, right? Imagine that. Amazing. 1%. You were saying something just now, didn't you? I can see that

75 being paid out without a problem. Yeah, no doubt, right? As in, can they do it? Of course. But what do they usually... I mean, they're... Well, yeah.

For a quarter. 2 mil. No, no. I don't think they could do that. I mean, it costs them 76 mil to run the business for this quarter, right? 194 in cash. That's a lot.

Yeah. All right, fine. But, you know, I'm sure they they have other plans you don't want to keep yourself too low uh what's the retained earnings a good amount of the money there was from the raise itself right was it was it i mean a lot of the money went to paying debt, which I did in December. I paid on $200 million worth of debt in December. In the December quarter, I should say. A $265 million worth of it. But that was part of IPO proceeds. I remember that.

I think that was said up front as one. Yes, it was. As one of the reasons for theo and the use of proceeds from it these guys might actually pay an impressive dividend impressive as dividends well impressive for where they are do you think i mean i think i i'd like to think that they would be left to keep a lot of cash on hand in order to shore up remember that they're pushing I mean a brand new business line now you know yes that would be yeah that so that does come with its own cost and it was marketing

cost but regardless they do have enough you never know but I think that I do have enough to be interesting I want person dividend I think five that's a thing they sent if I have men no beating now we say man the hundred mill is one quarter you think they do it every quarter in the quarterly payment I'm not sure this is all looking at how much it cost them in the quarter but you know business tend to be kind of conservative at the front end. How much what cost them? They might say we don't know what might happen by the end of the year. How much? Sorry what was that? What you said might cost them?

They might just be conservative because it's the first quarter for the year so they might just say you know have some cash on hand for whatever rocks reached them by the end of the year well i mean yeah but that if they're considering the dividend no i mean they're considering it in the middle of the year post corona so they have a good idea of whatever the plans are and whatever the impact i believe i know they have a good idea whatever i want to find out what i'm saying the the the thing in there i call it again the payment itself might be considered a conservative payment oh yeah that's right yeah i i would be surprised if it's more than one cent yeah i'm sorry it's more than one person which would be one percent one percent as that um ipo price yeah yeah you know that standard one percent dividend

I really hope I'm wrong I hope they blow us out of the water like a four percent dividend I mean that's what 250 million they can't do a one cent dividend I don't think they can do a one cent they cannot do a one cent dividend so it's going to definitely be lower than one cent yeah they can't afford that um they can't even do a half of a cent dividend maybe they do a 20 percent of a cent 0.002 wait what do you mean what are you counting there oh i've been, I've been counting my zeros wrong. My God.

They can't do a one. Yes, sorry. I've been counting my zeros wrong. Easy payout. They're good, man. Yeah, they can more than do a one cent dividend. Yeah. Wow. Maybe they've got two percent at most

two yeah i guess that's below the mandate the mandate um thing there level the policy level for 75 million around 75 million the policy the policy cap mil will be the policy cap. Yeah. So maybe they go two cents. But one cent is an easy payment. Yeah, and it leaves them with a lot of room. Yeah. So it's something nice, but you're still left with a lot of room.

Jamaica is doing the perpetual, it's bringing the unbanked and da-da-da-da-da. I think MailPak is working hard with that especially with the thing they did with um Western Union where you can be a MailPak through that instead of just necessarily having a bank account or such was it Western Union uh Western I don't know if Western Union I know there's a lot of no we're saying we're doing the own we're doing their own thing never has a special the thing they carry their own

card a master car we say you know they're not competing business my bad it's okay they don't sponsor so but yeah I mean we've spent remember so last time we're doing this eight minute thing we've blown that out of the water on mail pack to to to say how we feel about which i think by now i mean you have a good idea how we feel what we should say which we have been lazy and not saying is that this show is not financial advice i'm not a financial advisor and neither am i yeah don't tell us financial advice anything you hear here think about it consider it carry to your license financial advisor please all right uh

mail pack i mean continues to be nice let's see what happens let's see how this dividend influences that dividend hunger market yeah um and i think i'm going to have to do the next advance grow on long term and and big money trading like some of the strategies there are people who want to hunt for dividends so included in that would be like you know an actual dividend hunting strategy um things like that the things i haven't heard anybody really talking about it um things like that the things i haven't heard anybody really talking about it right yeah they're like there are ways to do it there are aggressive ways to do it to where if you're serious about a dividend issue you're a true dividend strategy is a cash strategy you know a true dividend strategy is a cash is a cash producing cash spitting strategy

a true dividend strategy is a cash is a cash producing cash spitting strategy well even like the thing that in the long term i want to be i want to live on my dividends away in the future i don't i don't need to talk to that this is the simple what you need to do to get there nobody speaks to that i want the aggressive build up to be to make it worth it and what the aggressive build up to make it worth it thing is or even not aggressive every quarter there are certain moves you do to generate the most

these are the things you look for but it's coming let me not pour out anything else it'll come in time so Mailpack look nice in my eyes they look in a nice position So mail pack look nice in my eyes. They look like in a nice position.

Yeah. But and they're still below $2. So assuming Corona gives them even good results, even better results, who knows? They're mostly fairly, they're a little undervalued, but you could say fairly, but not for a dream market company growing. Okay. Who knows? Next up is MDS.

I feel like I've spoken about MDS before. but not for adrena market company growing okay who knows uh next up is mds i feel like i've spoken about mds before sure maybe when we were doing results i mean mds close today at six dollars forty cents um roughly fair value p of eighteen point seven times um actually down meaning six six point four is down from where it has been in the court i think it had a quarter's high of seven dollars and fifty cents well i could be wrong in that region so no down to 640 but i dipped today maybe some people are cashing out uh oh we're missing the article out well I think they're under the same that better full year right yeah their full year ends March 2020 to July 15th COVID 19 yep So who knows, maybe

they have a really good set of results coming for the year I know up to their 9 month mark they were at 29.2 million in 9 months which is way below where they were the year before

which was 54.6 million but people think that people have been saying oh there might be one business that benefit from kobe yeah at one point i know they were limiting sales for some of the supplies because they had such heavy things it's a long time you usually have questions on certain things what supplies exactly and how much those actually contribute to usual sales what are they doing

on selling right now they went to selling introduce me to sweets how that looking right now ah because I mean maybe a huge part of that might have been schools.

Although suites are all over. But yeah. And distribution generally doesn't it's like a 1 to 2% business if you're lucky. Yeah. Yeah, so Just look at the brands and you can say, oh cool.

Are they doing as well as I think they were doing? Just look at the brands and you can say oh cool like are they doing as well as i think you saw that well so look look just look at the places where you think or kovid would affect them and then you have to look at how that usually affects the business and you can see or are they open because of covid or whatever yeah i mean who knows it might be an easy one to see if they save the company in the in the last in the last quarter of the year yeah maybe a hell of a say i don't think i mean i don't think they can save it they ended their previous year at 112 million in profit on 2.2 billion in revenue and up to december they're at 1.7 billion in revenue and like I said before 29.2 million in profit so I don't

I don't see where it's going you know when we had our opening cup the chairman walked in he walked into the thing there into the room into the yeah he was there it was not the link up but the room into the yeah he was there

yeah i know yeah he was there yeah yeah yes yes yes well it's a great business to own if you own a holy fight yep indeed yeah i think that speaks to how it speaks to how i feel about it i'm no you know what's drumming in my head is what the hell could be really causing if the revenue has increased what the hell could be causing where are they losing money what exactly increased 40 odd

more than 40 odd million like 50 odd million in the expenses right it's admin expenses that have increased a bit and selling and promo expenses that have increased a bit and selling and promo costs that have increased and there's a bit of a swing back in I guess other expenses the year before year before had a positive but I guess there was maybe a cashback. I don't know. But the selling cost going up is not necessarily a nice thing.

It'll be very good to see those audited numbers, though. I hope it doesn't have like a huge, a huge other expenses line. Yeah. Tired of those. So MDS, I mean, okay company in my view. Like I said said i'd love to own it if i owned a lot of it yep yeah otherwise maybe i would look at the main event entertainment group one of the directly affected corona companies Boy Ruffman them stills heavy in the entertainment sector and you know that's true after the revenue was cut off with this thing there with COVID the parties stop keep yeah i mean yeah nobody's going outside there's no more carnival this yeah some of the biggest

events and the biggest times now we're heading into summer and there's no more carnival this yeah some of the biggest events and the biggest times so we're heading into summer and there's no parties no party yeah it's like even agms get put off it should have been a nice source of business for them also i mean some of them still happen yeah yeah yeah pretty rough but yeah pretty rough but another big jump in the revenue almost almost right well i mean they just put out numbers for the six months the six months ended april 30th so they just put out numbers this week the q2 numbers and they have um no in for the for the quarter they do have a big drop yes for the quarter 286.6 million is what 0.7 million is what they made for this quarter and the same period last year was 438. yeah wow so

it's dropping from 438 to 286. wow major revenue. But impressively, under six months, revenue does not seem to have fallen as much. It fell from 895.8 to 884.8. That's actually impressive. I guess the first quarter, well, the first quarter would have been the Christmas quarter, so we know that was a huge one. It was a huge one for them.

Wow, that really kind of saved them you know we said this did we say it here? it's a damn good thing they had such a great quarter going into this yeah I don't know if it was on the podcast or the fans make us know

but wow on the bright side for them here's something for the bright side I mean they're not going anywhere they're the major player in their sector for a reason but if the major player in the sector imagine there is 100 million hit in revenue and this is a well-run company imagine a less yeah imagine somebody who doesn doesn't have the cash resources somebody might just fall out of the business

or the clients might just move after then corona exposing more pre-existing conditions cause wow if the big guys are feeling this you know yeah cause I mean at the end of the

quarter I should say I didn't actually say they reported a loss Big guys are feeling this, you know. Imagine. Yeah, because, I mean, at the end of the quarter, I should say, I didn't actually say, they reported a loss. Yeah, $15.8 million loss. And they can afford to take the loss. And, I mean, they're good. They're more than good. In terms of cash,

they actually ended the quarter with more cash on hand. They're fine. Yeah, they're more than fine. Same period last year, they had $58.7 million in cash. This year, they have $143.6 million in cash. So, I'm going to open the previous report so I can check what he looks like because I want to see the cash at the end of the last quarter so the comparison of this quarter specifically that's what I want to see okay you want to okay hold okay okay yeah cuz I did you know we would like cash flow 6 months yeah it's a snapchat yeah and maybe they don't want people like you

know so interestingly so they ended last quarter january 31 with cash of 100 100 million and they ended this one with cash of 143 million. So they ended this quarter cash-wise better than they started it. Which is to be expected. Meaning a high revenue business with a loss is to be expected that they would have ended with an increase in the cash position. Well, based on the type. You know what? I'm being because i i immediately started thinking about the type of business yeah yeah yeah because these guys would get like deposits when they said the higher view business i was like hey hey

that that never really add up to me but then being male mean the main event then yeah yeah it's a type of business i i always have to look out for that you know like you're if you when i add bits of data mentally and i have to remember that everybody is not hearing these thoughts bro you have to say you're right you're right high revenue business doesn't mean doesn't mean that it would definitely have cash. It can be a high revenue business and it's just dead same way. Party shop in a high corona area, that lock is still a high revenue. Well, it was a high revenue business

until it locked, right? Yep. Cash can burn down. That's really good that they have this one. That means that they also get a tax break in the future. Yep probably not well if up to the six month mark they had i don't think that you think they'll finish a year with a profit depending on coronas yeah i don't i think what's been happening with the current the current um restrictions you see they're slowly being eased

you can still know i think what the latest change is that is as at the curfew goes up to 11 now but then it's therefore the thing there the restrictions on public gatherings yes it's now 20 yeah that's that's not a party yeah still not a party that as even is not in that grow as considering doing a um a smaller grow or wedding restrictions wedding is a gathering yeah but is do they have a special size that they can allow like wedding not to not to my knowledge i think is i think it stays wedding so yeah yeah i don't yeah i think funerals is a special you get a to my knowledge i think is i think it stays i think there's any gathering guys

so yeah yeah i don't yeah i think funerals is a special you get a special thing there i think but weddings no you get i don't think there's any special dispensation for funerals either yeah yeah i think it's just a restriction is the restriction are you small funeral wow um so main event i think main event is going to be great next year also i think they might end the year strong i think what will happen is that by christmas we will have well i think there's also going to be an election this year and that's going to involve some amount of events that i would i would be surprised if main event don't get some of that just because of the quality of the work that they're doing the

size that they're able to provide and they're probably getting very versed in offering um like tooling up to to be offer corona safe events yo you know what then i a side note this is a tangent guys so sorry about that choppy you've just heard i went off on a tangent and i decided to spare you guys the tangent because it didn't work out as clearly as i hoped it would but we were talking about main event, MIG, and I don't remember what was the last thing I said, but I think we can wrap it to say that I think that they are in dire straits now, but not dire straits.

I shouldn't say dire straits. They're in a tough situation now because of Corona. For them, COVID is not an excuse. It's reality. After Corona, they should be well positioned. Well, well, well well positioned and I suspect Corona is maybe causing a lot of their weaker competition to die off it's a long term opportunity for them

yeah might be very immediate you know some of these companies live within the cash flow so some of these companies might not be able to take a six months a six months drop like this so you might just see customers switch over to the stronger people yeah i mean yeah yeah i mean if the companies don't exist the companies don't exist anymore right or worse um well not worse i should say better you might see me and even acquire a thing or two right now is a great time to acquire things if you have money you know sorry his small home in omaha reality brother the man the man did not become a billionaire to live in

a small home in omaha i'm sure he still owns it of course went back the jet on avenue out at the back of the ranch which I believe is where he actually does park it Next up is Mayberry Best Friends Limited We can book Mayberry and Mayberry together Yeah, MIL and MJE Yeah

We will speak in very clear terms Because I don't want to get my co-hosts in any issues You know, I'll say what I can And leave what I can I think MJE is the easy one to start with. I'll go into MGE first. As in to bridge into ML, because they don't have one each other. But MGE is a talking point with all your other market down and they actually invest while

they're across the market. The big thing for them to do is SVL. They have a large holding of SVL, which I believe still makes up the subject belief. I think, yes, 47% of the holdings are in SVL as are the last numbers. It's a hit of a price

change in the company, 46% down, which means a lot and most of the holdings are you can see they put their top ten holdings I believe here yes top ten yeah in the results and they're down on every one of them the markets it saw a big hit from COVID they're a large company so they invested widely so they actually they actually can say oh the market is down so we're done so

as most funds as most funds yeah man a lot of money so you can only you can only only so much can go into one thing right yeah so yeah so after a million it gets hard and they're all billions and they have billions yeah there we go so yeah so they're down on that. The effect that was on Mayberry, Mayberry is their... 72% owner. Yes. So whenever... So they report MJE's numbers. So they take a hit if MJE goes down

and they take a positive, they get a nice chunk if MJE goes up. The holdings, not the the price the holdings and since MJ is a large number big gains for MJE big gains for MIL big gains big losses big losses across MIL's numbers you can see in the quarter they took a billion a 1.2 billion dollar loss boy that hurt me channel 1.2 billion imagine that i feel like i complain when i lose and imagine how they feel being down on a billion plus the third channel i mean different levels have different the feelings you know to them true they might just be yeah at their level who knows

this is that well opportunity by by my other people yes but you can see a big a big thing there a big negative understatement. So firstly, they're down 50% on their net interest income. Yeah. But that's just 10 million out of the money. 50 million out of the money from net interest income

last corresponding quarter. Same period last year. And they got 10 million this quarter. But their big money for them is in is the revenue lines below that and a heavy loss they took from mje so mje translated losses to them not mje alone but mje and their total investment portfolio so unrealized gains they had that number which are mje we contribute heavily to they had a 1.13 billion loss when you look at it that's pretty close to the last figure that they made

so i believe most of the losses would come from mje okay that's that's one assumption that's i mean that's a clear line you can draw the expenses are only 366 million but we know we know the big deal here we know that i mean mje takes its hits from svl comprehensive income the other comprehensive income line i will say net profit for mj is.1 billion, but the total comprehensive income has net profit, sorry, net profit, or I should say net loss is negative 1.1 billion, but the total comprehensive loss is 7.1 billion. um so obviously a lot of the things in the um oci are hitting that uh as every financial company is going to have to feel this uh tell me something do they do ecls hit you guys especially credit loss yeah uh it should you know uh i believe so because the neighbor interest income portion they do loans margin loans and such i believe e-sales would hit

would impact there yeah all right i hate having you have to talk dicey yeah yeah it's i don't i don't i don't put you in any in any heat um but i'll tell you how i feel about maybe it's still maybe still Mayberry still Mayberry still the broker the only house in my view I shouldn't say the only it's not the only anymore but still the house

that takes the equity market the local equity market seriously the most serious yeah man definitely yeah and the spaces they exist in

I see them taking it very seriously still a holy for my respect the reason I can't say the only anymore is because realistically the burrito guys are not joking and john jackson also over there at qw john jackson team over qw i also have a brokerage house yeah well i i well that's why i i edit to say like investment holes hi guys Randy here from the future jumping I just wanted to stop for a minute and say that um what you're about to hear is a lot of I want to say

unmitigated rubbish but it's not unmitigated rubbish it is however what it sounds like when you podcast while tired um I think you can hear my brain slowing down and you hear me go on to not just describe QWI incorrectly in terms of what I do for business, but also reinvent a broker. So I just put this in here so that anybody listening who might be one, confused, two, not confused and thinking that what I'm saying is accurate, it is inaccurate. Now, I just left it in here because one is good content and two, it lays a context for a lot of the conversation later on, so I didn't want to cut it out, but I just wanted to be clear here that after getting a little bit of sleep and listening to this while editing and I thought, you know what, I need to make it clear that no, we were incorrect. Well, Dana is correct. I was incorrect.

And I am aware now that I was incorrect. Okay. I just want to make it very, very clear. So don't worry. You don't have to tell me. I am well aware of what QWI does. And I know they're not consumer facing. Outside of the fact that, yes, you can just buy the stock and you benefit from the expertise, which hear than i point out just like mj all right

so with that said here we go we're going back into the conversation but remember i know i was wrong i got some sleep and my brain started working again though podcast while tired guys but you're right they're not a brokerage house you are current what do they do because they do offer service to the public you know oh you're the guy yeah're not a brokerage house. You are correct. What do they do? Cause they do offer service to the public, you know? Oh, you know that? Yeah.

Like you can go to their office and do service. Yeah, man. Have you, have you looked at their website? What service? I don't know. That's,

that was my, that was my point that I don't know, but I'm pretty sure that you can actually get a service from them. Maybe I'm wrong. That's new to me. Actually. I don't know the offer services maybe something to show some welcome maybe yeah maybe so people that was that is 100% me. No, you know what, it's a misunderstanding

on my part of the website. Let me put to myself. It's a misunderstanding on my part, because I'm speaking to QA as what it is, right? But I mean, it is what is a holding of it's a fund but it's a fund that's majority owned by jam t so they're speaking to that as them being a company and this is a service we offer and they just happen to have a really big customer already right i guess it's not like you can just walk in and no i think it's like it's like exactly when they get posed by mje i think they're the same bike you the bag it's like when they get posed by mje i think they're the same bike you the bag exactly yeah and i'm saying i i think i spoke of it as if it's like a regular consumer facing business when it's not but it may very well be right yeah maybe first invest in this investment option not just that i'm sure if you have like a if you have a company like an actual company and

maybe i leave in a listed company and you want you carry a heavy float you have a lot of cash on hand and you don't use it all all the time maybe qwi is literally a business to business business you know hey i have 50 million dollars that i don't want to keep earning this overnight paper on this is turning out it's sounding like a qwi investments ad i don't explain it no more maybe i can link somebody there and have them come on and explain it but i see it as an actual business now sorry i i think the problem is how you and i would have come to QWI as seeing the genesis of it versus now somebody who, let's say somebody who didn't know anything at all about them and just went to the website, QWI's website. You get me? So I'm saying like, oh, you know, so I was saying incorrectly.

Oh, they're not really like, hey, we want you to come in and do business with us. But maybe they are. They're just not looking at me or you. They're not looking at somebody off the street, maybe. But maybe they're prospective. Just by feedback. No, maybe, let's say I have Randy's Trucking. And based on how it works out, running cost for it is $50 million or $30 million.

But I have $ 70 million in the bank so I know I always have this extra 20 million sitting there instead of earning little to nothing on it or earning whatever pay. No, not by QWI either. So I wouldn't say buy.

I guess it would be so I would want them to issue shares for me. I don't think that would happen. buy like i guess it would be so i would want them to issue shares for me i don't think that'll happen they have the permission already to issue shares and nobody want don't they do they i believe they do i'm speaking without checking but i believe that they took that from the jump. No max. Unlimited shares. Having shares unlimited also means...

And the ability to issue as needed. But again, I would have to go and check it. Look at us not doing the usual research. But I can see QWA as a business. As an actual coming coming we want you to

choose us so basically not just by the shares then take away this invest you know again to increase their investment or increase the amount of money you have basically just issue more shares on the market to a certain person yeah yeah so the diverse investor basically yeah that's what i mean yeah yeah yeah so the diverse investor basically yeah that's what you mean yeah but then you should share that with that little bit thing there that water me though but you gave them the permission that's a sign if that's if that's there if they said it either you know if they say it from i mean i'm not a lawyer I don't know company law like the back of my hand but I can't see where

I can't see where a guy can say something no but if you no if you give me the permission though I know man so I think maybe they would have

given you you would have given them the permission from IPO if they said it in the prospectus then but you know

company law or something it's all well the prospectus can't go against it yeah company law makes sense man

it can't go against it no no no I was makes sense, man. It can't go against it. No, no, no. I'm not saying it doesn't make sense. I'm saying I might have a view as a company that what I'm doing is okay. But the law says it will. Later on, you'll hear otherwise. Yeah. Well, I know the law says you have to get shareholder permission.

To bail them. Yeah, that is known however i also know that you can ask for the ability to issue as needed yeah yeah and they're not the only ones didn't somebody that didn't um i could be wrong but does the signals have that ability i have to check that we're definitely going to have to go on oh look at that more episode content more work more work I'm not complaining about that actually yeah

it's so funny the only reason I know that you like this is the same reason I think I like it is because it's something that I'm not sure of and I want to

I know I know the work is going to allow me to be 100% sure you were just randomly talking about some company not on the market or anything, but it just became a point of

deep analysis for me to look at what it does and whatever. Is this where you invest? There's a puzzle. Yeah. I've been thinking about that same thing as well. One of the reasons is that it has

a definite, like an immediate and definite payoff. Meaning, there's a point past which you know whether or not you're right or wrong. Like, without a doubt. Whether or not I like it.

Exactly. But that leads us down another road that we don't need to go down right now. How the hell did we get to QWI? I know how we got there. You're talking MIL and MJE. And QWI and Jam T are very similar to MIL and MJE in that one owned heavily by the other.

One is a fund administered by the other, that sort of thing. Interesting stuff. And there will be episodes on the stuff that we mentioned here in terms of the allowance to issue shares whenever and however so yeah you said that I have to check it here as part of the people because I'm thinking can I go check it now anyway

well no I'm going to stay on track we're going to stay on track so I'm going to jump past MIL and MJ and we jump to MPC Caribbean Clean Energy Limited the company MPC, Caribbean Clean Energy Limited. The company that's now a fund? Or is it a fund?

Why they jumped to mind is that they did change. They're one of the first companies last year. They changed how they recognized something. You said problems like in your death things change but no change back yeah oh wow as in problems specifically with that or just corona problems um just recognition because the audit results came out today

i know within the reviewing process of the financials and the year-end discussions with the company's auditor, an appropriate change in applied accounting policies has been identified. Necessary changes have been identified and will be elucidated in the management report of the quarterly financial report to be published soon. And what I'm reading from here is that the delay notice which came out earlier um a delay of 10 days is expected and therefore

the publication date is presumed to be february 24 2020 and of course we know that when that happens corona hit um so but one that they hinted at it there when they say, uh, appropriate change in applied accounting policies, which means one of the IFRS is this. Yeah. And we know which one was the big one that they did. So you think I can actually switch back and switch back? Things don't look as good for them and i know that their statements came out but i'm not okay i'm seeing

so what did i see today no no something did come out audited financials for december 2019 yeah oh okay i'm looking at the first quarter ended march 31st no wow sorry the wrong thing 2019 december 2019 so the delay is for the thing there delay your numbers normally the delay is for the interim financials figure in the 31st of march okay so you have i'm basically extending the timeline in the auditing process depends on partners from variations so multi-relevant service partners have conversations from ffa so you just read no what i was reading was old it's from last year i opened the wrong thing uh

so so so they put out a notice with extension to june 30th and then they put out the audited financial statements for December 31st, 2019. You're not incorrect. That's what you're looking at, correct? And the unaudited report had net change in unrealized gain. The unaudited or the audited? Yeah. And then the audited? Yeah.

And then the audited has the same. So, all right. I'm going to check this out. I don't know what it is. Well, let me tell you. During the auditor's review of the financial statements, they were not able to obtain sufficient evidence to support the valuation gains, which have been reported previously.

Oh, yes. That's it. Yeah. The valuations on which the previous valuation gains have been reported have been compiled by an independent accredited valuation company due to the structure of the fund which invests predominantly through shareholder loans instead of equity the lack in valuation gains caused the distributions received in september 2019 which have been funded by shareholder loans had to be reclassified from dividend income to a capital repayment you remember once we spoke about the difference between those who are dividend versus a capital

issue yeah it matters sometimes especially in some countries and we know mpc is multi-country i think this is where we started that conversation because they're paying dividends with no profit or something like that may have been okay. Okay. However, no impairment was recognized on the underlying investment. The deviations from the fourth quarter unaudited financial statement presented in the beginning of the year show now an income of 272,407 US dollars.

Instead, compared to previous, 1,893, and 63 us dollars resulting in an accumulated deficit of 197 402 us dollars compared to previous 408 377 us dollars retained earnings retained earnings. Hmm. Why did they use retained earnings instead of profit? In other words, tell me if I'm wrong, Danai. In other words, they're saying they had to reclassify it and the dividend apparently counted before to the fund as income.

But now that it's counting as a repayment of capital invested versus dividend. They can't classify it as revenue. So because it can't classify as revenue, it also couldn't make its way to the profit line. So then they couldn't have written earnings.

So they have a loss instead of profit. Wow. Due to the reclassification of the distribution received as well as the distributions paid, investment in the fund was adjusted from $11.5 million down to $9.9 million.

And the share capital was adjusted from $.1 to 10.1 million US dollars wow wow wow wow I don't that does not come across very well at all so these guys have had to reclassify their income and the fact that they've had to reclassify their income well what i think guys you see why the audit report is important auditors saving the day again wow let's let's give the auditors some credit here so wait so what is this actually saying so is it that they're saying that thing there the the previous profits that the report evaluation The previous profits that they reported aren't.

Alright, so here's my misunderstanding. No, no, no. Here's my understanding. I could be incorrect. Speak to an expert, a professional. We are not. Remember before they were dealing with a fund like a business

and sold money to the fund from shareholders. The fund was money to the fund from shareholders. The fund was funded by money given by shareholders. And that's my understanding. I could be incorrect. Then they reclassified how MPC, the company, recognized their holdings. So they're now starting to recognize themselves

as a company that held a stake within a fund so they recognize gains on the shift in the valuation of the phone well because well they were I don't know if the dividend thing wasn't working out for them as much as remember at first they booked that share of profit in associate and then they moved to a state holding say a stake holding in a fun type of thing so before share property associate was just recognizing the company the company's actual was just recognizing the company the company's actual as i think that yeah so just company do whatever i turn profit then okay so now it's a thing that it's uh that's also a company of course right and whenever we get a dividend from it it would not show in

the thing that it wouldn't show in our it wouldn't show us profit but when we get a dividend from the company yeah me the same thing goes with JMNB because we're not able to share profited or booking little dividend yeah you can't but the dividend I'm with you so now that they book it as a shift the valuation so valuation gains also okay so they move away from that to a state at a stake holding in our fund also that's about like an investment stake cool it's a evaluation the change in valuation of that asset will be booked at the revenue and also dividend dividend gains from that as revenue yeah so and so now the auditor is saying you can't book it that way anymore you

don't we don't recognize we don't agree with you recognizing it that way that way so they're saying it would appear that way to me and so they're saying you have to let me make sure i'm not misreading because it's because it would seem like they're saying that you you previously were recognizing that way and you said then that the fund moved in valuation from X to Y. Right? Now we're saying that you can't,

we don't recognize you owning the fund that way. I, no, sorry, I've lost myself. They said they were not able to obtain sufficient evidence to support the valuation gains. I wonder if they disagree. It's privately. They probably disagreed and I think it works.

I'm not sure they're telling them to switch back to the share, to associate holding. I just think they're saying, hey, that's a valuation. Me and you have two different ideas of if that's correct. Not just that, but because if they change how they recognize something, that's a major thing. That's like Sajikor and X1. Mm-hmm. The valuations on which the previous valuation gains have been reported have been compiled by an independent accredited valuation company due to the structure of the fund which invests predominantly to the shareholder loan in self-equity. The lacking valuation gains caused the distribution they received in 2019, which have been funded

by shareholders and had to be reclassified from dividend income for a repayment, capital repayment. Based on this, the issue of the company to the shareholders has been reclassified. Therefore, no impairment was realized on the underlying investment. Oh! Oh! When you get a capital repayment, then you have impaired the original investment

because there's money coming back. Yeah. Yeah, yeah. But you do the same thing is that's still the jmb example meaning dividends are are reduce the reduce the capital um standing like it's i'm screwing this up because i'm not saying it the right way but that's like the dividends don't touch the piano yeah yeah exactly correct what are so are they saying the capital the capital amount my point is i think the reason why it impacts here is that there was something that was accounted for as revenue previously, which is no longer revenue and that revenue allowed them to have an accounting profit account for a profit, and no, they do not have that profit

they're actually a loss, but I want to be exactly sure and why, like I'm caught between going deeper, this is it, going deeper yeah, I think caught between going deeper this is yeah that's what i'm holding right now yeah um i i think i don't want to delete and i don't want to get us to get distracted either i think npc deserves its own um episode yeah and i don't want us to guess our way to through it either i want us to do the guessing in in a space where we don't feel like we rushed yeah all right cool because this is actually very interesting because remember from the jump we had questions about MPC being able to pay a dividend before they had any retained earnings and it was never quite worked out I know it's even worse because the

dividend has now been paid what is bothering me here is that they speak to the dividend and then they speak to the dividend also impacting ah i think i understand it it's a share i don't know why i'm confusing myself but we are going to i will save that one for its own episode mpc look out for it maybe we can even get somebody from the company to confirm it. So I give the review if they're open to it. And maybe an accountant. I mean, obviously not the auditors. That's not allowed. I wouldn't expect it.

But yeah, maybe we can do something on it. Unless you want to keep going, Danai. No, I realize I need some to actually look into this deeper. Yeah, this one is going to cause, like, I can see myself writing. This is going is going to cost me a whole deeper research immediately but i want to get some more companies down so next up we have margaritaville another rough one today mv mtl margaritaville turks limited how things look with them i mean they're in tourism so they've been they operate after the cruise ship thing so yeah

so they're directly affected not so nice for them at all is this an old report or am I looking at the wrong thing no they're reporting up to the end of February. That's when their third quarter ends. I have that right? I do have that right.

So they're reporting up to the end of February. And that's our nine months, our third quarter. Revenue's looking nice for them. I know you're talking about revenue is looking. No. No, I mean, the revenue increased 5.5 million US dollars last year to 5.8 million US dollars this year. That's right before the hit. Right before Corona hit.

Just like ECM. Yeah, just like ECM. Yeah. Do you know why they do that? february though um that's right before the heat that's right before corona hit see my easier yeah just like easier yeah do you know why they do that why they report after february you have any idea why they picked that for the financial year maybe or the the isos i don't know but this is just not on a conventional three months there must be a reason for it. I suspect it might have something to do with the tourist seasons. Maybe. Yeah.

Tourist seasons follow a certain schedule. Yeah. But yeah, hit by Corona corona shot through the heart uh still double-digit right before exactly right and and margaritaville itself i mean strong backers on there and they have a strong asset base i'm sure they're worried i am sure they're worried because they eat a lot from the cruise ships.

I think it's public. I think it's known, generally known now, that most cruise ships, most cruise shipping companies, the earliest date they have is like September, October to start back. Most of them. I mean, all over the world. So I think these guys might have to take a heavy hit. It'll be interesting to see how local tourism changes.

I said it before that I think we might see more of a focus on locals being included in the tourist product versus just exclusively, not exclusively, but so heavily overseas people. I believe locals make up about 10 percent of the business of the tourism sector locals also going through it so exactly but hey i saw instagram over the last two weeks people and i see all the pictures on twitter it look like everybody staying at a nice little hotel that only goes so far down the tourism triple you know yeah and it's not the same level of the door was not the same way exactly yeah you know you're not going to fool three dollars for that

cup of coffee well i can't say that it's probably cost more than that wow let me put my coffee down uh i mean mtl they're going through it but i think they're strong I think they'll survive and I suspect they might find opportunities in this and they're not going to fall out right before they hit so stay strong stay strong yeah and these guys obviously know what they're doing in terms of money they do well for themselves

the principals they seem to know this as well yeah and they know the markets yeah the principles they seem to know this as well yeah and they know the markets yeah next up we have the big dog NCB financial

group limited Randy's fave this is the quarter the quarter ended June 30th 2020 at $136.43. I don't think I've ever seen them that low since the highs, the peaks that they reached late last year. Wow. Wow.

Yeah. What do you think is causing this, Danae? What do you mean? Well, sorry, they were lower yesterday at 135.05. It was 131 today, didn't it? And they traded as low as... Yesterday, they traded as low as 131. Today, they traded as low as... Yesterday they traded as low as 131. Today they traded as low as 135.

Not so bad. Yeah, not so bad. That share price is going through it. NCB is always a great example of a share price is not a company. The company is not its shares. Whenever there's anything heavy around in the market,

then NCD gets hit. Which is funny because then they bring the market average down with them. I mean, they bring everybody, not just the market average, I mean, they bring the unit trusts down. They bring so many things down

when this price falls but again great example of share price is not a company share price is not the same thing as company health in most cases yes I believe it's the hit so it's oversold it's easy to oversell ENT because it's a sensible yeah in such quantities that's big though you're sure you're sure it's oversold i mean pe ratio of 13 times at the price it's at no 136 yeah and and they are they they have reported up to march 31st 2020 which means we don't see the april may june we just finished april may june quarter right so they suppose they have a hit there but when also their expected credit losses have they accounted for them in that

in that six month report or do they report do they account for them at the nine month mark or do they save it all up until i don't think they can save it all up i think you have to when you face a credit impairment loss at the time i think they're on march but they might not be more coming to be honest. But generally, the first hit of e-sales are usually the heaviest. Yeah. If there's one company that is extremely spoken out, it's this one, right?

I mean, we talk about it heavily we talk about it heavily and there's not much there's not much else we can say about them that they're the giants they're they're huge they have a strong business line i wouldn't bother to go into the numbers too deeply definitely not going to that here um right now but ncb's ncb is only stronger it has only grown stronger i suspect since the last time they've reported um i also suspect that the guardian group is being ncb eyes no you know like they're whipping it into shape um they're farming what is it they want they might have to face a couple of hits while they reorganize the guardian group and also why they they account for the expected effect of covid on the business that they're in i mean they reorganize the Guardian Group and also while they account for the expected effect of COVID

on the business that they're in. I mean, they are in the loans business, among many other businesses. They are major players in terms of the regional financing, infrastructure game. I mean, Trans-Jamaica was them. Big projects in Guyana is them. Huge loans in Trinidad is them.

And there's, I'm sure, a whole heap more to come. So they're gearing up and setting themselves up as a proper multinational, a proper conglomerate, regional conglomerate. Well, more than regional. Regional financial powerhouse. I still continue to love them in 10 years. Do I love them right now?

Share price getting hit. I don't know. And the next set of results come out when? August? Yes Yeah, so who knows, there was a little time before the report but

I mean I think I mean I love them in the long term NCB is NCB, they're the biggest company the biggest public listening company in Jamaica the biggest public listening company in Jamaica, the strongest public listening company in Jamaica, and they'll be more than all right. They'll be fine. Continue to make billions,

and I'm interested in seeing what they'll look like in a year or two. Okay, I won't waste much time on that. What's next? Palace. Palace Amusement. Another coronavirus company. we will waste much time on that what's next palace palace amusement uh another corner yeah we did speak about palace like i feel stuff about palace from before um corona hit company they only reported up until their their may 31st march 31st sorry not me and at that time they were

looking at a forty nine point two million dollar loss so imagine no they have to have operated really sorry maybe I have that wrong 53.3 million dollar loss Wow so it's worse now because they have not had any showings at their locations. No movies playing. The best so far is the pivot they've tried to do to sell the confectionaries.

Sell the confectionary to people at their homes. At their homes. I doubt one, the take up of that and two, sell a confectionery to people at their home at their home but i don't i i i don't want to take up of that and two how much that will that will have a significant effect effect in covering their their losses so it's just something for you like you'll try your best go sit down and do anything at the moment yeah but do something at least you know get the they're going to spoil if I'm sitting down there so I might as well tell them right

so you don't have to hug that loss so I mean you might as well ask as much as possible but I think the loss will be significant for them despite yeah I mean they're one of the companies if I could chart a company they're one of the companies I chart maybe that's they're one of the companies I chart you know that's when you said it yeah that's that's when

I said it so who knows who knows yeah not much more to say yeah much more to say really really going through it yeah I feel it for them so the people are saying they're looking at asking the government if they can open and

have some measures in place to cover themselves on that level to cover themselves with the COVID spread and their contribution to it so you don't have the place open but you have some social distancing measures in place for the

consumers but the thing there they also are looking at going back to the open the driving movie model taking that on bring back driving bring back drivings then i carry everything so you could yeah now all four of us can watch a movie

for the price of one i mean i mean i'm sure they'll check for that but who knows wow it'll be very very interesting to see how they pivot out of this I'm a girlfriend drunk yo that's a good idea actually because the back seat can open from the trunk those make sense look at that hypothetically know how to steal revenue from the company they really have their work cut out for them i hope things easier than our country if they continue with their expansion plans if they can yeah uh yeah it's so it's so sad like i i can't help but think about what what could um be done but i'm sure they'll come up with something great. Next up is PBS, Productive Business Solutions.

PBS had a bit of a, would I call it a surprise profit? Yeah, sure. I mean, last time I saw results from them I mean they dropped the annual report but that's just the audited numbers but up to I think March 2020

up to March 2020 they had a loss of 612,000 US dollars yeah yeah as they continue to bleed a loss of 612,000 US dollars. Yeah. Yeah. As they continue to bleed with the new business that they've taken on.

I call that bleeding. I wouldn't call it bleeding. I'm not imagining that I've had long back and forth with about PBS. But I realize we see the market differently. So I would say PBS is another one of those long, I mean, well, PBS is obviously what it has always been, right? A longer, slower hold.

It gave a lot of people a lot of money between last year and now. Indeed. And it's, sorry, I'm looking at the wrong thing, but I'm going from memory with that between last year and now. Indeed. Sorry, I'm looking at the wrong thing. I'm going from memory with that because I know it gave a lot of people a lot of money between last year and now. But I wanted to catch an exact point. The end of the quarter down heavily

at 55 cents. I'm looking at the US dollar shares, by the way. It's one of those boring companies. I tell you. I'm sorry. I mean, they can be exciting in terms of what they're doing. They're acting like a conglomerate

and they're consolidating a business, obviously, for the long haul. And I think they're looking for some efficiencies because they're in tech, right? And distribution and all this. Yeah. Efficiency is their game their game efficiency must be their game cash flow obviously has to be a big deal and they have some lucrative opportunities sort of uh xerox is in my mind i think they have something to do with columbia and xerox i think they own the columbia the xerox dealership in in columbia

or they share the distribution of it. Costa Rica. I guess I'm not very excited about PBS. It's another one of those companies that I believe has been set up because it wants to take advantage of

the long-term nature of the market. It has benefited from that. Corona impacted as much as corona impacted businesses that it has itself in. Maybe if the offices use less stuff, PBS has less money coming in, less warranty, less maintenance.

And they make money from maintenance and selling of items in some countries. Yeah, not very excited about that. However, on the other hand, you have something a little more exciting which is pan jam pan jam the which itself was a big dog and still continues to be a big dog actually huge one of the highest valued companies on the market meaning in terms of market cap 77 billion closed today at 73 close the the quarter at $73.05, which is down, down heavily on where, well, not heavily, but down from where it ended.

It started the quarter, because we went into the quarter with $77.50 as a share price. And it ended the quarter at $73..05 so a bit of a drop there uh I I think Panjam benefits from benefits and suffers so people think of it when they think of sagicore or maybe that's just me. Yeah. I think maybe they might have something interesting coming, that's

me and my flights are fancy. Yeah, man. They have spoken to some degree that the hotel for the last, I don't remember, they were planning to do an APO or a rise issue or something like that. One of those type of things we've yet to hear what where that's going but they had a hotel building out in Mobe and first we first heard of it was the thing they were doing

first I heard of it they were doing some they were seeking loan money to do it. And then they said there is some APOs. They think they are doing an APO for whatever reason. So there is stuff coming, but I know they wanted money for funding something. They do have some amount of JMB and they recognize JMB's share price in their trading gains from JMB

in their income statement so they are tied to Sajikor and JMB at this time but I mean you said they earn from JMB's share price or from share price because they are one of the smaller owners

I think 8% or something like that. Something like that, yeah. Anybody who wants to can check the top 10 owners which are in the financials. So they have associated companies which are exciting. I mean, at one point people were speaking about

Chukka coming to market and I believe they have a stake in that. associated companies are exciting i mean don't they at one point people are speaking about yes about chukka coming to market and i believe they have a stake in that they have a new castle yes and they have walkers with a musha brown sauces they have the courtyard marriott and they have um i think are they the ones who have they have itel yeah oh they recently took a stake in it and they also have tropical battery they have tropical tropical who who's tropical yeah i think you have yeah i know shaka is singer it's poor sure because portland and panjum i think portland has piece of tropical too Portland and Panjam. I think Portland has

been tropical too. Okay. So Portland is tropical battery. That I do know. Because Portland did put a stake in there. Portland invested in something there.

Tropical battery. Diverse assets. that oh in poland that invested in thing there in the tropical battery enough diverse assets so that's the thing that's the middle building i think or the folding that they own the thing that's true it is yeah i'm saying it for her yes i'm saying that yeah you know i don't know I don't know for a fact I would believe well regardless Panjam has been around for a long time obviously it also has a 30% stake from Sajikor which should have faced a hit

and we know Sajikor might have even more of a hit to face because again Corona and expected credit losses that all financial companies are facing but Panjam is also one of those older Jamaican companies that has survived many many things and will continue to survive many other things. The old and slow and less old but also big in terms of its fun. You mentioned

it earlier, it's the next that we have which is pjx portland jsx limited they've been in profit for quite a while now um yeah you remember they put out a notice was it last year they put out a notice stating like they were kind of putting it on the nose to people saying hey we just want you to know that our

investment phase of our business is done here we go in January 15th they put out a notice saying Portland JSX Limited has completed its investment phase and looks forward to accelerating growth of profit and shareholder value in 2020 and beyond. I'll jump to just what the company's chairman said.

As we enter 2020, the company has completed its investing phase and we are pleased with a portfolio of 10 businesses that has been built. There are quality businesses that are diversified geographically and across sectors. And the portfolio includes smaller, higher growth, younger businesses as well as mature industry leaders. More importantly, we are optimistic that the hard work and effort that the management of these businesses has expended to date has positioned the businesses for acceleration of growth and profit and

shareholder value. So nice. Corporate speak for yo, the investment thing that we did though we're done. Money time now. Just expect cash um i think of course the money they've been making so far is fear for the games so for this year because i think they're in my game so the interest income is very is down like from 25 so last so first quarter let me just find the whole year

well what they are is that they're sorry they are partner of a bigger fund important to the bigger phone yeah and sometimes they invest alongside the fund yeah so their interest income down from 55 million last year 55 000 us last year really ah so sitting there so 11 to 10 000 us this year but they have a large thing that the fair valley gains turn around so they had three of our losses last year of 665 000 and they've gone to fair valley gains of 2 million 2.3 million fair valley games so the holdings are the fun well i mean this is this is funds are big money, big money playhouses, right? This is great for like a pension, like a heavy money person

maybe, other companies, that sort of thing. People who have really long horizons. Yeah, I mean, they're well diversified. I think they were ignored heavily in terms of being in the building phase, as they say. And I suspect had all things remained equal, they would have maybe shot up in terms of share price or certainly show strong returns this year had everything worked how we wanted.

To say if Tropical Battery IPO'd, which they have a stake in, or they have a stake in a company that has a stake in, I expect that they would have maybe gotten something out of it. If Chukka IPO, they would have also gotten some benefits out of that. And maybe those companies will still IPO. Who knows? Who knows?

Maybe that's what Corona might force. I can see Corona forcing maybe a tropical battery to the IPO but maybe not who knows maybe somebody offered a tropical battery the money for cheap on terms that they were okay with how would that help I do see them going for the IPO I think there's too much tied to the IPO they want to be audited in their location of writing their ferry but i believe the ferry got that story about the ferry going ahead you know is it done right or it started with john when i was like going to car and go ask yourself

june about a year ago they were talking about um about putting 60 million into it and up to march this year they're saying that they are in the ipo after they relocate so they're almost done yeah yeah but then again that's up to march i like this story i'm looking at is sunday march one and anybody who pays close attention to the market would know that three, two, three days later, as soon as the first case was reported. Entire look at the market changed. So they may or may not be

going ahead with that. But I believe that they will. I mean, it has the beauty of it, right? They still have to finish the work that they're doing. They still have to pay for all of the stuff that they will i mean it has a beauty of it right they still have to finish the work that they're doing they still have to pay for all of the stuff that they have i mean the bills don't stop just because corona come right so who knows they were pretty close in in the march article they actually said that the final draft of the audited financials were ready and they expected to list the stock 45 to 90 days after they've been

valued, after they've done their valuation. And then of course Corona happened, but I suspect that these guys will be coming back to the market and quickly too, right? And I hope that they'll come back to the market quickly and I hope that they'll kick off a great start in the market. Agreed, agreed, agreed. But look at us looking deeply and a company that they'll kick off a great start in the market. Agreed, agreed, agreed. But look at us looking deeply

at a company that's not even listed. Well, to look at Portland. Sorry, I think Portland will continue to do its low and slow. Agreed, yeah. It's the simple truth of it, yeah. It has a leeching influence and leeching

has not lost yet. I'm sure you tell me he's lost, but he's turned his L's into W's. Indeed, indeed. Yeah. Next up, we have Proven. I think we'll wrap it on Proven because Proven is quite the company another one of the young stalwarts I watched something recently

I interviewed Chris Williams when he spoke about his start with Proven what do you think of it? I don't want to hear more it's totally interesting it sounds like a good story reach out to him

ask him if he want to come on the podcast proven as it is its fates are tied to its associate companies plus its operations its associates are well its biggest associate company is JMMB right and

JMMB is very likely to face some financial hits because of Corona and ECL and JMMB's own ownership of Sajikor Financial

so who knows Proven might take a hit from that so part of Proven's cash flow would have come from expected dividends from JMMB and JMMB having been not prohibited but JMMB not being able to pay a dividend during this time

might also impact what happens with Proven and of course the market's not necessarily being open right now then there's a dream exactly dream ipo and dream hasn't made any money we see white name put off uh really weekend but uh they have thing that they put they said no refunds yes they did say no refunds right um because that was part of the thing that was stated who knows that could work out well for them right that could that could mean that they they they end up seeing a profit because they have all these money all this money collected all this money collected, all this cash that they can do. And they don't have to spend.

And they have the partnership with Proven, who obviously knows how to invest a lot of cash. So that might help actually. And they said that they'd be back next year. So that'd be good. They have another associate. What is that associate? Another. they have another associate what is that associate uh afs basel i don't know that's that bank

the next sub series access basel is a box serious the but because access is not um an associate no because they sold out so much yeah um they had an apo also the apo closed the ap that never was yeah um and i said that it was closed then they came back and said that i guess maybe they didn't follow i wondered about that you know maybe they didn't follow to the t the api rules or did they but they made sure to update everybody in terms of what happened at api which is pretty much to say that um it was closed uh and it didn't happen you saw the wording of it makes it unclear whether or not it happened and closed. It happened and closed, I think. Or if they withdrew it completely. Because how they speak about it is they say,

the rejection of application standard, no new ordinary shares were allotted by approval resulting from the APO. But remember, the APO was underwritten by Sajikor. There we go. So, I guess there might be some... We call that ambiguity. I don't know if it's that, okay,

the offer is closed. It's closed. We don't want to take anybody else's money, but Sajikor, because as an underwriter, we'll fulfill the obligation, and then we'll go forward with whatever deal, and then whatever works, so it works out. We get the money from Sajikor, and we'll go forward and do

the thing. Or, yo, we're just not doing this APO right now. Sajikor keep the money. We keep our money. I'll just do the thing. And I'm not sure what's happening there. I want clarification on that. But my hopeful mind is telling me that

it's saying to me that I want Sanjibor to do its thing and give them the money and then they go for the money deal and then we work in the market to hold whatever else happens. That's my hope. I don't want to run away with hope so that's where I mentioned ambiguity I suspected that I'm more excited about what is that they were coming

with what they're going to do right they spoke about regional financial acquisitions yeah I just want to see what it is that these guys are buying and whatever it is that they might have wanted to buy I am assuming that it must be

even more attractive it must be even more attractive now months into the coronavirus right? Anybody who needed money before I was selling probably even more influenced to do it or who knows maybe that date has passed um one to watch because they want to watch it but also they would also have to

face some of their own expected credit losses would they I'm just trying to figure out what kind of hit they have coming outside of the loss of um yeah and dream but um yeah they have they they'll actually they'll face e-sales because they do have long on the books but you said sorry you said expect the credit jmnb there's a jmb and and easier it's a jmb and dream yeah but and and um access oh yes so yeah they're good at them this whole office is that good oh yeah but i mean a lot of it happened because of them choosing to sell access no meaning in terms of its share price yeah but still yeah to sell Axis now, meaning in terms of its share price. Yeah, man, but still. Yeah, great timing. Wow.

Great timing indeed, because Axis is definitely going to go through. But again, a little bit of roughness can be good for a business like Axis, but maybe not too much. And good for a business like Proven. Whatever they were buying might be coming at a better price to them now. Yeah, that's what I was alluding at earlier.

I think Proven might be good. I'm going to cut it short here because I think we're wearing this thin and I do want us to be more excited about what's happening. I don't want people to get undrary from us. So I'm going to cut it short at Proven.

We have still a lot. We've gone through what's that? Almost 15 almost 15 so guys i'll call it 15 oh yeah yeah almost through 15 it's not like 13 but 13 company is not bad if you want if you want to add to it, we can look at... No, we'll save the next one for PTL and Pulse, which I know... If anything, I'm running through my dinner right now. There we go. So, guys, thank you again for listening. We're running through

this one quickly. I'm going to ensure that we actually have some guests also on this. We're going to try and bring some people back to help us with the analysis of these. And here's maybe some other views other than the stuff you'd have heard from Danae and I. Maybe somebody can come with something. Cover also,

maybe say, why don't you first check this? Yeah, definitely. Definitely. With that said, this has been this week's early season. I'm Randy Rowe.

And I'm Danae. That's right. Boy, Randy, it's going to drive this one, man. He's Randy Rowe at RT Rowe on Twitter. And he's Danae Randy at RTR on Twitter And he's Danai on Twitter

And this has been this week's earnings season Big up Holy bugger love me ah We are losafient Earnings season bro