Earnings Season - The State of the Market - 2020 Market Review (Part 6) w/@876Invests1

Episode Date: July 16, 2020

This week the full market review continues! @HDanhai & @RTRowe bring in backup in the form of @876Invests! They pick up from $PTL.JA, go on a few good tangents ($NCBFG.Ja, $GENAC.Ja, $Mailpac.Ja, $JMMBGL.Ja) and end with a cliffhanger…(Guests: Henel Vidal, Schaunn Anthony Thomas, Nicholas Dundas) Come for the gems💎, get entangled in the tangents 🙈! Thank you to 876Invests! 👈🏾 Give them a follow here. Contact Us Here 💻 [e-mail]  Follow us on Twitter here 👇🏽 www.twitter.com/Earnings_Season www.twitter.com/RTRowe www.twitter.com/HDanhai🔗Links🔗The EveryMickle Telegram Channel 👉🏽https://t.me/MickleSignals 🗣Shoutouts 🗣Chris Berry, John Jackson, Dmytro Ason ★ Support this podcast ★

Hi guys, Randy here, just giving you a quick heads up for this episode. So we recorded this episode and it was pretty long. I don't know, I have put out long episodes before, but I honestly have no intention of having you guys go through too many of those episodes anymore. And this one was particularly long, it was almost five hours long. So what I have done instead is cut it into bits. So just giving you a heads up that you will hear this one end a bit early you'll know when it's ending because you'll hear the ending music i just don't

want you to be surprised so look out for the first part of this right now because you're hearing me and look out for the rest in maybe two or three other parts as we move throughout the rest of the month or months uh thank you to our guests 876 Invest for really contributing to this one and you guys are going to hear a lot more of them obviously because as I said we've got this one into bits. Enjoy! all right hi guys welcome to another week of earning season i'm your host randy at rt on twitter and i'm deny at hda on twitter and this is earning season another earning season and this week we are going back to doing our market review and we are trying to get through the last almost 30 stocks so we're calling back up we're calling as some of the gentlemen from

876 invest we have two of them here with us though one can join us a little bit um but the two gentlemen here from 876 invest uh we've had one on before I believe or is it no for both of them no I see them as I said to them earlier so we can see them is like a gang is like it's somebody else I'll ask them to introduce themselves right now start with Henel am I saying that right Henel are you know you know vital I promise it's any wrong just because I hear you. Yeah, I probably am. Henel, you have to unmute to let people hear you. It's Enel Vidal. So the H is silent.

It's Enel Vidal. Sorry, the H is silent. Sorry about that. So introduce yourself, sir. Sorry, sorry. Alright, so Enel Vidal. Been an investor for maybe three years now. Yeah, pretty much. And a student, a UW student. I see.

Where you study at UW? Civil engineering. Oh, cool. Sounds good. Practical, man. Indeed. Yeah. That's what you want to go into what you want to go into when you actually leave that or invest in investing team seem to steal everybody away from them yeah it's true and a lot of engineers going to um invest in like

those kind of guys so i'm waiting huh maybe it's german yeah um chris berry yeah he did industrial engineering actually yep so yeah it's it's one of those things that it's appealing to us and because of what we do we do a lot of like um cost management so whenever you're doing some you have to make sure it's beneficial cost-wise so i think that's where it kind of stemmed from so yeah it's kind of natural you're stuck in an area where you have to be exceedingly practical yeah and very precise yeah wow i like that so in a day it's not whether or not it's sound good or if it look good it's your job is to ensure so it's still the structures it can't collapse yeah if it collapse that that's a is to ensure it's still the structure, it can't collapse Yeah, if it collapses that's a hundred people dead, you'll lose a license

you know, so it's very very precise Yeah, I like that maybe that is why and your companion here for this episode is Sean Thomas Sean, I'm pronouncing your name wrong? I managed to get it right

I mean, I say Thomas you say Thomas sorry but say your name say your name and introduce yourself sir for the people I won't ruin it all right my name is Sean Anthony Thomas I've been investing for a little over well my first investment account when I was 16 but then i didn't really pay much attention so i've been taking it serious for a little over a year uh final year accounting student at ue yeah oh that's good so well you definitely well in the wheelhouse so if you're in the area where many don't become investors. Yep. I always wonder why.

Yeah, you're going to find out in a few years. You talk to accountants and you get it really quickly. So, are you also wrapping up your accounting degree, Sean? Well, yeah, I just did the last set of exams a few weeks ago. So, I was waiting on the results for those. Thank you. You know the results already, right? Yeah, I'm pretty confident in them.

Which is great. Graduates already, freedom. So post-graduation, what are you looking into today? Well, actually, I'm looking at doing the CFA certification while I'm working. So I've been working while I've been doing this last year of school so i'm looking to just continue that make it a full-time job and then do the cfa while i'm doing that after that we'll see what about accounting what about accounting exams that's actually after the cfa oh cool cool cool cool. So you're going straight to ACCA after that. So CFA then ACCA.

Correct. Oh wow. So you are looking to stay within the field. So you're looking at a job in the field? Well yeah I currently work in accounts currently. Oh you work what? You keep that secret and you don't tell people that man? Or you don't want to tell people you work?

Yeah I don't really want to tell them where but i work in that works you work for a house no i don't okay all right that's good that's good at least you get in a practical how many people in the department invest about there is a department of eight and i think three of them invest outside of myself so it's four of us in total oh that's that's not bad that's actually that's way ahead of the industry i found the invest 50 it's way ahead man that's pretty good all right uh well i'll allow your bedroom when him join to do his own introduction i hope him stayed in the field too. So we're going back to our review, as I said, and we last did...

It's the last thing we did, didn't I? Was it? Proven, yeah. So we're starting off with PTL, Paramount Trading Limited. I mean, Paramount Traders is one of them companies that hardly anybody owns any of the shares, right? Yeah. Yeah. Yeah. I'm working for a memory.

Yeah, go ahead. I wanted to say something on them. You're not very, I realize they're not very popular on the market, but they're actually a very good company. I think Hugh Graham is the owner. Yeah, Hugh Graham is the person over there. Not every company is a good company what

you mean by good all right no all right let me let me state it a different way where they're in a space where I think they're probably the only person in that space and I think I believe so yeah it can be it can be overlooked so the space they're in is chemicals so they provide chemicals on an industrial scale um especially like even um road construction a lot of chemicals that are used for road construction they're involved in that and right before this yeah so that's kind of connect back to my background so that yeah that kind of um spike a little And then I looked, I did a little reading on them, and I saw that back in, I think it was 2017,

they actually purchased the chlorine, I think it was chlorine operations from Seprad, back when Seprad was streamlining their activities. And that's very interesting. I think them and Bergerger paints are the only persons locally to produce it on like a mass scale chlorine i think it's chlorine okay okay and um they were looking into going into i don't remember what it is but i think they bought allegheny petroleum yeah yeah yeah they bought allegheny Petroleum. Yeah. Yeah, they bought Allegheny Petroleum. But, Henel, if you know them, you can't half know them.

It's not like you know them from the output of their business. But, I mean, investing isn't just about the day-to-day. Like I said, almost every company is good. But in terms of investing, why do you think? You touched on it when you said they're not popular. Why do you think they're not popular? I think they're not popular because a lot of people don't really know them or hear about them much because even the other day they did a deal with fisco where they're going to provide

fiscal lubricants that they were like 250 million or something like that you know those numbers the the the they said they're going to do a distribution deal because they have the allegedly the license that they bought the license when they bought something to do a distribution deal because they have the Allergen, the license that they bought the license when they bought Allergen. They got something to do with the licensing. But it's not, well, I can't speak for why you think that they're not known on the market. They're known. They're just, like I said, they're not very well owned. You can't own them.

The shares are controlled heavily. If I'm remembering serving right, I think they're they're between hugh graham and his connected parties i believe a good maybe close to all the shares not yeah the number one shareholder has 1.2 billion shares and they're 1.5 outstanding so exactly you know that yeah we didn't top 10 they hold most of the shares yeah so it's just not a very liquid stock it doesn't trade yeah don't trade very often it doesn't move very much when it trades and and that has actually been a protection for it i believe over the last few they may have had some improvement recently but i remember over the last few years they haven't had very good results yeah profit has slipped again and again and again and again as they go through i'm not sure what

they're going through if it was a rebuild or a retooling or what um but yeah it has not been strong for them on the profit side of things at least yeah and strong for them so growing revenue uh might indicate that they're not well we know for a fact like we just heard like two or three things that they're bought into so they have a growing business but not much else popping out and trading the stock has to be something that like you're almost forced to be long term with this stuff yeah yeah pretty much forced to be long term if you're going in a significant volume then you might be in there for a while

exactly yeah I mean literally it will go like a month and no trade or go a month and trade once twice for the month we're in July now and it has traded once

once so far and before that the first time we traded was the 24th of June yeah it's not a very liquid stock at all boy but the company itself is working and is turning business and is making money so

indeed and their response to COVID was to produce more cleaning agents and sanitizers ah yeah because they're in the chemical business let's turn that out

the real issue is okay so that side of the business is doing well they're producing on that side with the sanitizer what about the rest of the business how is well. They're producing on that side with the sanitizer, but what about the rest of the business? How is that producing? How is that selling? If you can't

sell more of the other things and only one segment of the business that make up X amount of revenue, then you're not really sure that it's really going to be a good plan to save them, but it might just bring them through the time, to be honest. I have to look into that. I think they'll come out of

this fine but they might just not they might not see a very great q2 in upcoming results yeah but i mean the price is rock solid they don't have to really worry about how the price going anywhere even even if they if they slip um again not very exciting and you don't really get much of it even if they slip. Again, not very exciting. You don't really get much of it. You speak to your licensed investment advisor about that. Indeed. Of course, nobody on the show is a licensed investment advisor.

Neither he nor Sean suddenly know something that we don't know. But yeah, none of us are licensed investment advisors. No, no, no, no, no. The show is not investment advice. I'm a licensed investment advisor. If you want to get proper investment advice. So that's PTL. Right after that is Pulse.

One of the most exciting stocks. One of the stocks to talk about for the month. Oh my God, we'll beat this one red. I don't know if there is the first to say. Drive it to the ground. Is there anything else worth

saying? Anything? Huh? Yeah, go ahead, you know. It's like you have something you wanted to

say on it. Yeah, I just expect more of the same from us. You know, it's been a very good

company, very solid, you know, and throughout this whole thing revenues still strong as i said only about two percent they're only expecting a two percent um decrease in revenues so it is a very solid company and when i was looking at their article about them expanding into their television offerings and the caribbean mother search and one other show they're going to going to increase the amount of countries they're sending it to so they're going to increase it in the u.s through irishms and a bunch of other a

host of other caribbean countries and they said they want to increase their coverage in the UK as well so and Africa I think so I mean these are a lot of great things I'm expecting from them I mean yeah that's so nice uh yeah they're also you mentioned Irish how much we're expecting them probably to take a stake in early yeah and they spend companies will probably take a stake in early. Yeah. And they spend companies who probably take a stake in there. They have, you've named all of the businesses. We've beaten this one to death. Even the construction arm. They have a construction arm?

Well, not a, well, not a arm, but they're venturing into it. I think they built, they built some units and they're going to sell the majority of them and keep some of them

for rent out and that kind of thing you mean the real estate real estate arm that sounds different from construction very different really yeah my bad yeah the real estate arm

continues to do well enough so they had some land and they're expanding on it now and putting some more expanding on it now and putting some more stuff on it yeah hi to sir dondas yes um has joined us nicholas dondas introduce yourself to the people nicolas all right people well i'm nic Nicholas Thunders. I'm currently on the last lap, the final semester of my master's program at UWE. I'm studying corporate finance. You know, it's clear I love finance.

It's my passion. And yeah, I guess that's me. Boy, that intro is probably the most school-challenged piece of all of them. Right? In the future, I will not do it. That intro is the most school challenge Right? In the future I will do it My perfect art Of giving them name

And holding all other info I try to speak out Since when young Jamaican men Get so freddy freddy Young Jamaican women are listening That's when since when since when young jamaican men get so freddy freddy so so you so all three right well two one one one um one engineer and two financial engineers you you also plan to stay within the field when you when you graduate than us yeah yeah definitely uh yeah right now my life is all about finance for genius so like if i can live finance rest of my life i definitely will well i mean you don't have a choice you just

acknowledge it from the jump i notice yeah all. Yeah. All right. I like that. So your plan to stay within... Are you also working in the field currently? You said you're doing your master's. I'm full-time. I have no time for it. I mean, I want to look at something with my uncle, but that's not really... I'm full-time, so...

Wow, I get you. And a master's in finance, what's your concentration in the master and a master's in finance is what you what you what your concentration in the master's right it's corporate finance so corporate fine okay yes wow that's good are you young sorry you guys didn't give you ages what's the age oh yeah i'm 22. 22? Yes, sir. That's your child in the background? My child at 22. That's not even far-fetched. That's a lie.

You're right. You're right. Yeah, well, that's good. I like that. I like that. That's not even a possibility in your mind, right? Of course not. I like that.

Yeah, I can't tell you that. Get used to the girl in the truck. Come on for the truck. Yeah, yeah. Russia, I can't tell you. I get used to the Gelding joke. Come on for the truck. Yeah, yeah. The truck is quite comfortable. Sure, sure, sure. May I drive the truck, Mersin? No, you're not.

No, you're not. Oh, boy. Yeah, so just to catch you up, we're doing a quick – we're continuing our quick review and we are we're currently at Pulse but Pulse is one of those stacks that have beaten to death on this show because we've spoken so much about it so

I'm just going to move on very quickly to Purity which is next in line Purity is known most for their baking and birdie yeah miss birdie yeah miss birdie crackers that outer in my view just came out of nowhere and everybody immediately act like they didn't know it there was a time when there was no miss birdie's

um crackers and then all of a sudden everybody just know miss birdie yep um but it tastes great um but they're in yeah but they're in yeah but they're in a solidated they're in a heavy industry they're in a heavily competitive industry and um i believe that they had i feel like we spoke about this before then i don't know why oh because i thought we're honeymoon you think so yeah purity is the one that has the... Not European, but the ISO pass for their plant. That was Honey Bun. That was H... Is that the H-A-A-C-P thing?

Yes. And it is Honey Bun that has that. Yeah. So Purity is one of their competitors. Like I said, it's a stiff, stiff, stiff competitive area. Purity is Consolidated Bakery of Jamaica. Anybody know them and love them off? Know them stock and love it off?

Know all the information about them stock already? Anybody follow it up? You don't have to love it just now. No, not really. Yeah, not a big fan. I don't really follow it up that much. Like, it's not high up on my radar. Okay.

Well, I know that they, like everybody else, has been feeling the pinch. Well, I think they've been feeling the pinch from before. Yeah, I think their pinch is, their pinch is pre-date, anything. Yeah, man, they've been in the pitch from before yeah i think their pinches their pinch days um predate anything yeah man they've been in it the funny thing you mentioned miss birdie and how it just came out came about and then it was this big thing the scrappers alone but then if you look at the rest of the a good amount of the other items that they produce they're under the miss birdie brand now so they have miss birdie muffins miss birdie doing everything so it looks like i'm not sure if they're pivoting fully into being miss birdie because i think i in front of him

is a maria's inbred and i haven't seen that change since miss birdie from before miss birdie's been about the same thing but it's some of them items you can't see that oh yeah it's miss birdie inbreding on more than dusty crackers so i think that's a post-office. But like purity, in breakfast in general, you know people that buy purity rolls, purity bread? I don't know if that's really... No, I know the rolls.

You said rolls. In my mind, I can't see the rolls in the gas station. Or the supermarket. It's so funny, I think gas station. I think purity. Yes. I think the same is funny for the large price too that type of thing in there yeah that's how to impulse purchase

convenience store that's where the money comes from heavily they made a loss last year looking at the financials they made a loss last year of 14 million so currently for their first quarter with them at a profit of 8 million 8.8 and a half million in profit on 299 mil revenue this is a better look for them until you compare it to the same period last year, where they were at $14.5 million. So yeah, that's the fate of being in a competitive industry, right?

You can grow the revenue all you want, but those costs come and hit you no matter what. Yeah, the type of spending that happens on their type of item, on their items, it's not like a good household necessary. Boy, I need this. For some things, people buy it on a consistent basis. Say a little pastry,

every now and then somebody will buy it, but you're not going to find where it might grow to the point where everybody will feel like, oh, I need this type of thing in my life. You get me? So like bread, National says bread hard. I'm not sure. A purity bread hard i'm not sure i'm a purity bread i'm not i'm looking for honey bun nothing else

oh gosh the purity the beauty people supposed to be supposed to be brawling when they hear that but the reality is the reality and i'm sure they know know it. They know the space that they're in. But looking at the stock price, however, versus the operations or the business, it's pretty much the same thing. They stay in a steady area because I think they had their major drop, if not last year, the year before. The people I believe in purity that have been waiting for purity

to come out for a long, long time. When I joined this thing, people were talking about purity. in purity that have been waiting for purity oh yes for a long time when i joined him and i joined this thing people honey bone purity those people just waiting on them to be be good and i'll know you said that again i say honey bun soon soon shot the world well i mean honey bun honey bun honey one did get a good rise yeah it has already kind of moved I believe I believe it has gotten a lot of a move

and Honeybon seems to have found a lot of efficiencies in the last few quarters but Purity two years ago January 1, 2018 they're trading at $1.87 and it's in a little region region between one and a little over two dollars right between one high ones and low tools now we are in july 2020 and the stock price is one dollar 57 cents it doesn't ever leave that little region there so i mean there needs something

major to happen to them in my view what is stock price to move and i don't see that major thing coming anytime soon but you know what it could be covid could be eating up these guys could be bleeding and when when when people are bleeding um that's when a lot of opportunities happen we'll see it happening with the with the well maybe it's just me looking with the cruise lines, the cruise industry. You check that out recently, don't I? Talking about, yeah. I've heard about cruise lines.

Oh, wow. Oh, you also invest overseas? Yeah. Wow. You should give the people a little bit of that. Guys, on the count of half, shy, we're not doing anything, you know. Let me hear your thoughts as I hear you from there. the people at the club, they thought, guys, on the count of half shy, we're not doing anything, you know. I mean, you have to ask someone

as I hear you from now. Yeah, I invest overseas as well. Oh, so you're excited about that but not the local market? No, no,

no, no, not like that. Not like that. No, no, no, no.

I'm just pointing it out here, that's all. Yeah, but what else? I'm reflecting about CCR for sure. You can tell about CCR, which is Carnival Cruises. But before you tell me about Carnival Cruises,

because I was just mentioning that as an aside, tell the people what you want to do. Tell the people about 876 Invest. I'll pause and allow you guys to do that. All right. Well, 876 Invest, I think you said it the last time we were here, that we're an initiative that basically we're advocating for financial literacy. So, you know, we just want Jamaica to be,

for the public to understand how important it is to be financially literate and make the tools accessible for people to try to use it and start to prepare themselves for it. You know, tap into the economic growth that we should have been having, might be a little different now, but, you know, grow with jamaica try to be a part of that um me personally as it relates to you know me in finance and then nicholas speaking yeah this is nicholas speaking you know so i've i've let us

say i love finance everywhere i can beat my finger i will you know try to see what i love the most and i you know put a finger in forex you know the jsc addicted to the us market as well you know so i mean i have a little bit of knowledge here and there i'm trying to gain the experience i mean i'm fairly new to integralist i started where we've been 20 i started at the end of 20 18 or 19 19. yeah like like september 2019 so really i'm very into it yeah i'm feeling into it well on you start your masters in finance before you started investing no i started september oh and you start investing when well september well investing in investing a hard in September I had a sigma from like July Sean that was over to you see why you see why accountants don't really invest no I don't know why but there's something about them there's some about people who know and deal with these numbers every day, that for some reason just turns them off

actually investing behind these numbers. And I don't get it. I mean, look how much money you're making via your balance sheet, but won't actually invest in the balance sheet. I don't know. I find it very odd as well. I mean, we learned about investing from Sixth Form.

We learned about stocks from Sixth Form and I didn't do it straight to well. I mean, we learned about investing from sixth form. We learned about stocks from sixth form and I didn't do it straight through. I don't know. Yeah, it's something strange. There's something about it being viewed as an academic thing versus the reality of it, I find. But I'm glad that there's two on this call, at least not making that mistake

and actually dipping their fingers in the market. So I'd mentioned, just to wrap everything up, I'd mentioned Carnival Cruise Lines as Corona being a possible advantage for them. So everybody, wow, I said Corona Cruise Lines. Carnival Cruise Lines, I'm so sorry. So I mentioned Corona being a possible advantage for them because it is for some industries um and what's happening is that what's happening is that they're buying out a lot of the smaller competitors

because the competitors can't take the heat right now they can't take the time without any cruises any money coming in and they're going out of business and so you see the big guys royal royal caribbean royal cruise lines and um Cruise Lines, which are two of the largest in the world. You see them buying up a lot of their competitors, their smaller competitors now. And I'm saying that that might actually be, who knows i don't know of any let me be clear that i don't know anything about that happening within the the food the fast not fast food but the the baked goods fast consumption market let's say the consolidated the market that consolidated bakeries is in and and um honey bun is in i don't know that happening but i can see generally where that could be the case where there's an opportunity now for some of the bigger players to snap up some of the smaller

lighter players so while to me purity stock price is a sad thing um and while i also think that i mean they're also overvalued in my view currently, but in terms of real business and actual business, it might be an opportunity for a competitor to say, hey, you're bleeding. Why not join forces with us? Why not? Let's merge. Let's merge. where it's a air quotes merger like you know rj arglina where one is just a richer than the other and and helping the other out and uh who knows something like that could maybe happen i met this this this company or the stock price suddenly break out of the bands that it has been stuck

in for two years but until then i think people have a long way to go because overvalued and getting hit by corona is not a good look for them and i'm sure a lot of their sales happen because of school schools yeah yeah schools have been out for a while so yeah rough i would not want to own those stocks right now uh coming up now is another one the big one another big dog qw i john jackson's vehicle the vehicle will put the john jackson a lot although it's not john jackson i don't know his team um but he's probably the most visible face locally from that team so jam t's john jackson's qwi qw i had 75 cents how you guys feel about it jam t's john jackson's qwi qwi at 75 cents how you guys feel about it

crickets at 75 cents i think is you think is that what a good deal i mean the nav last night we see is a dollar or three so i mean at 75 that nice when when has it ever traded at it's now at 75. Isn't that nice? When has it ever traded at its now? And again, the crowd goes mad. Yeah, probably when it just started trading. Maybe.

No, when it just started, it was on the first day, I mean. Yeah, but after that, it just went down. Yeah, so I say that to say that I don't. Okay. So the NAV is whatever.

That's cool. I mean, it's way below its NAV. It's net asset value. But how does that impact the actual share price? Because we've seen that a discrepancy between it and the share price don't matter. As of the 10th of July it has a net asset value of $1.02 and that's Friday

so on Friday it's worth $1.02 in terms of its net asset value and in terms of the actual share price it's at $0.75. How much low is that? More than 25 percentage points price. It's at 75 cents. How much low is that? More than 25 percentage points low. That's crazy.

And who cares? So the net asset value is 102. So, I mean, who's going to buy it at 102 to bring it all the way up? I mean, I think the market needs something to shock it. I mean, I still like QWI. I still love QWI. The thing is, I'm not sure that most investors are checking their NAV.

I figure they get the surprise when, oh my God, the results look a certain way. When the results show the effect of the NAV. That's exactly it. Good results will shock the market into recognizing the value here. Possibly.

Possibly. Because the market move quick on bad news and like molasses on good news so who knows and I have said before I think I said the last episode that I believe that the market does have a in my view a bass towards John Jack against John Jackson and John Jackson is a primary face of this company so what can we say they have in my view exciting things happening but until the market is ready to recognize it yeah i can't recognize it in the meantime though qw has been steadily buying up their own shares right quietly in a nice not quietly because it's announced but either the company or connected parties or directors have been snapping up shares at

what i think is a much much much much lower value which i can understand doing yeah i'm still trying to stop him you're still trying to do what you've done this i'm trying to understand what's going on with access like what do you mean i don't understand what's going on with AXS. What do you mean? Understand what's going on with AXS? As in QWI and AXS. Yeah, go ahead. Go ahead, Donas. Be a little clearer. We're trying to say. I mean, I don't want to like, I don't want it to come across like,

how do I say this? Basically, I'm just trying to understand like why is it they'll go so heavy that's been nothing serious just why you listen to this show maybe you don't listen to this show

I can understand that clearly clearly you don't listen to this show I haven't seen yeah we don't we don't pull punches we don't pull punches on the show ask what you're asking

yeah well my name is Taxis so I want to know why they're not going so heavy now oh I mean obviously I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know I don't know taxi someone to know why they my god save you know I mean I'm a stand me a money since then you see no way to us episode they made that what in

my view is a terrible by for a terrible yeah and I see to hurt him it hurt him it hurt him yeah I'm not seeing with the prep where the price they got that was the best price you get that It was a bad price. Yeah. And to buy so much of the business at a bad price. I mean, I never saw anybody... So this, Don, this is me

saving myself because I was about to say I never saw anybody with any sense being excited about proving selling the access shares, right? But I'm thinking about how many people were publicly excited and I might have to edit this. I might not. Who knows? But the truth is the truth. It was, in my view, a bad buy.

So I have admitted that I don't have all the information. So maybe the company principals knew something grand that will happen three years on the line. Maybe it's a timeline thing, yeah. Yeah. And don't get me wrong. yeah. Yeah. It's a good time to get this much shares. Yeah. Yeah, exactly.

It's a great thing. If you know something good is going to happen with Access three years from now, and you can use other people's money, because that's what QWI is really, right? You can use other people's money and buy heavily to something that would be good three or five years so i'm not sure go ahead and do it and if the price of doing it is you're going to have to go through three years

of bad results to get one year of amazing results then that price might be worth it for you i can't say no because these guys own so many shares that they naturally view the company differently from the regular person just buying the stocks on the market right so for them maybe there's some i have to give them that room for maybe they have a great deal there but just looking on the face of it as i see it no it's a terrible buy terrible buy and obviously terribly buy but maybe they know something i don't know and what i do know is that what, you know, what suits you might serve you or what what's bad for you could also turn out to be one of your greatest strengths. Right. So who knows, maybe access could be good for them in the meantime,

but for now, nobody cares. Yeah. People care as much about the share price as they do about the nav, which is not at all More than 25% below the NAV And nobody cares And the truth is the NAV I think maybe the only thing that trades close to its NAV Is Select F

Maybe I haven't even honestly checked that in a long time Well Select F has fallen I think Select MD Kinda stay closer to the NAV I don't think Select MD kind of stay closer to the number. What? I don't think Select MD trades really. Well, there we go.

That's the next thing. There we go. And Select MD won't trade until either GK or Wysinka throw up some wonderful results. And then everybody will discover it. Just like how Select F not going to trade until AFT. You want to see trade? Wait till NCB results drop drop not when it come back i said when the results drop it's very specific you know what i said but the results the next results coming from ncb what you guys think what they're gonna look like

i i don't have anything to say um since right now i've been hearing people are saying they expect uh expect bad results based on just the same thing but i personally can't see i i can't see you know all right well are you not allowed to speak on them i don't want to get into a winner i just i i just haven't been looking into NC, but I've been hearing a lot of talking about how people are worrying about it because of Corona. I mean, I just can't see, you know, how Corona is going to be hurting them

when it comes to, you know, provisions, much. Expecting credit losses, bro. There we go. Expecting credit losses. As far as then, what's going to change all of a sudden they would have already if you have more people that are not

working or that are earning less money then if you have loans and those kind of things out to those people then your expected credit losses is going to have to go up they're not getting as much money you have to think up for those expected credit losses through the pnl

the moment they realize it you have to you have to have to recognize that in the opinion ifrs nine something i think it i think it's it's gonna be a big deal material you think it's material what yeah do you know how many people are really affected bro forget how many people are affected look consider the business and not necessarily people up front home what percentage of ncb's business is loans all right and there we go and a huge part of ncb's profit comes from cap markets right what percentage of cap market has to account for e-sale, not just through loans but also through maybe some of their other holdings. Some of those very safe bonds.

It's not so safe anymore. You get a ratings chop, then guess what? E-sale's gone up. Yeah, we've seen a bunch of those ratings chops. Right? And what sweet you might start, you? The thing you boasted about this year? Or the thing you boasted about three years ago? Might be the thing that's beating you might serve you. The thing you boasted about this year.

Or the thing you boasted about three years ago. Might be the thing that's beating you up right now. My Barbados buns. Also consider NCB now is bigger than NCB last year. NCB now is GHL also. Yeah, so

the NCB now is bigger than NCB a year or two years ago. So consider what GHL's credit losses might be because those have to be booked under NCB also, right? So there's a consideration there. So it's the entire NCBFG group and it's GHL. And I mean, there are opportunities within any crisis for movement and for gains but realities they might

they might just have to face a little bit of heat yep um and it's good right you guys would say that is maybe it's not it's not a loss in a real sense ecls aren't real losses they don't have to pay out any cash so it might mean that the cash position is even nicer i think ncb the business has a whole heap of plans and they're making a lot of moves and i like some of those moves that i see happening so if they have to drop some bad results in this time i mean people can still see what is happening otherwise with the business and they should know what to do with that you know good luck ncb is not that's not no no i don't mean right no i'm just saying if if you ncb overall we know even if these results are bad We know NCB Isn't bad As a business

As a company So I mean We know Even if these expected credit losses Are high And they hit the results We know What NCB is about

And what they will do Going forward about it Yeah but we know You know but guess what I know everybody The person that wake up tomorrow And see bad results They say well

Time to sell these stocks Yeah I know how that go And NCB NCB love getting that hit Nobody and see bad results. They say, well, time to sell these stocks. Yeah. I know how that go. And NCB, NCB love getting that hit. Nobody, there's not a stock people love selling more than NCB.

Good times, yeah. Bad times, boy. Yeah. Anybody sneeze outside and run left to NCB. Yo,

if you're a stock, if a next stock do bad, them side say NCB too. That's true. That's true. I started realizing it might be a big deal for him because I will personally, I think cash flows, everybody knows cash is thin.

I really love, I pay close attention to cash flow statements and non-cash loss is never really bother me. But I realized that people tend to only look at the bottom line and you know regardless of whatever the story behind it is they're still going to see a loss and be like oh you know the company's in trouble and blah blah regardless of why loss is impaired yeah but you know what i'm saying is the bottom line give you a dividend you know i think randy

explained that really well when we're talking about separate and they i had raised a concern about them getting profit a good amount of the profit number from their tax credits around there is a very important point which is very important aspect like ncb where the investors are there for dividends your dividends are paid from retained earnings any negative one that it chops into retained earnings so yes you have a good you have a good cash position but say no you're able to pay your dividends much less in ncb you can see that they're all about paying those consistent dividends have a dividend plan going to the year they tell you this year all dividends will go up so you know how much dividends for the rest of the year you're going to get that type of thing you can see that they're very much for the investor that goes into dividends so bottom line really really matters if you get a

good it's a good bottom line and you don't have cash on hand right now at some point you can still pay a dividend yeah man your dividend ability really comes from your bottom line exactly you remember when we spoke about this many, many, many episodes ago, and I said that you can actually, I think it was the same point you're talking, the same time we were talking about, I said you can actually have a loss, book a loss, borrow a loan, and pay a dividend from the loan. And what a name just did that. Indies just did that.

I'm not sure they did it but it looks like it very much could be that well the if you look at money as if you look at money from the fungible point of view they took in a loan and then they paid out dividends are paid from retained earnings which is just cash yeah i was so specific that it was paid from returning i've seen on the last you know what is retained earnings between earnings account you have in here you don't call your bank and say what's my return yeah i know it's not yeah i know it's not actual cash they had yeah i know they had it no they had an insufficient cash balance i think they had um so yeah the amount of cash

they had is less than the amount for the dividends they paid yeah yeah but they're returning to school whether i manage it so you know what happened then they needed money to come they need some cash to come in for him to be paying all that cash so either new business or the part of the loan money we pay out exactly no there's no thing that's what happened yeah but dividends are always paid from retain earnings i mean it's it's just it's literally how you book the movement of it yep i personally don't have an issue with it but i do know that classic accountants have classic jamaican accountants have been trained in my view to see it as a route every time you mention it to one of them they will say no that no sound right yeah but no yeah and it's so funny if you look at

the american market it is a it's a very look at the history of corporate raiders and what they do when they actually go into a company i buy your near-death company but it have a hundred million in retain earnings and i make your near-dead company take out some very big bonds and i pay out the whole hundred million in the retain earnings and whatever you have left i I tell you that, listen, you guys need to figure it out. But guess what we did? We paid it as dividends.

And guess who was the chief shareholder? Me. And maybe the company dead tomorrow, but I bought the company for 500 million. Or I bought the company for 20 million. We paid out the 100 million in retained earnings through a $200 million bond that we took. And you have another 100 million left and you need to fix

operations or figure it out i don't know but thank you for paying out this 100 million oh i name him again you come at the end of the day you know when the company is looking very dead and the bondholders are for all the time so i guess what either i take the company and fix it up i was my money dead that's true but the dividend don't pay already so yeah the same the same equity holders buy a nice a nice chunk of the bond also yep and even if you don't there's not some real finance even if you don't because you have paid out all this money from the company that you may take on such heavy debt the bond gets downrated and people start to sell it for cheaper than you listed it for and then then you turn around and buy it back.

Big up Digicel. That's our next stock. That's our next stock. I did not want to say it. Let me be clear people, I don't know of Digicel doing anything like that. I can't take a lawsuit but big up Digicel.

It's a good business. You were talking about Gallagher earlier with the credit losses and... Expected credit losses, yeah. He spoke about it before. But General Accident, do you think that in light of COVID,

do you think that ECL is going to be significant for them? Do I think ECL will be significant for General Accident? Off the top of my head, I don't know. I don bit significant for general accident I don't know I don't think so I don't know insurance companies have to book it like that I know yeah it's still positive the same I recommend I thought it was first it was just for you know for like loan profiles or but it also applies insurance premiums Insurance premiums. Yes, that is true.

If the climate overall basically changes, they have to adjust it based on... Do they have to adjust it or does it mean that they might have to face higher premiums due to reinsurance risk? I think they have to book more. They have to have an increase in the provision for the RFS

alright well I'll tell you this Dana and I actually haven't talked much we actually talk about this we don't talk much about it on the show anymore but I'll say something real that I do I wouldn't know what I do is I go and look at other insurance companies or check if IFRS makes specific note towards that exactly so IS has a lot of

information on how to track things no, we're being silly. We're being silly. Sajikor just had to book a huge amount. So obviously, yeah, it was going to happen to GNAC also. It's going to happen to Gary and GHL. Yeah, because Sajikor just had to book a heavy amount at ECL.

Sajikor Financial. Yeah, but there, was it from the thing there? It was it from the thing there it was mostly from the american business but i think all their business lines felt it yeah but as in is it from banking or in insurance but what side of the business actually give them gave gave them that heavy that that number or they comprise an e-sale number insurance as far as i'm going off the top of my head but i believe it's insurance and i believe it's the american armored insurance i was expected to get the biggest i think i think the american insurance license i think

america has an insurance license but i don't think there'll be any banks in america so yeah so it would be it would be the american i know the american side is where the hit came from so it's definitely need to check it but yeah yes i think it's on in there right yeah so i think um off the top of my head i think that they would have uh they would have some e-sales there but also i also feel so good about gina that i mean if that you know you see how these guys are smart they increase their business and their business lines during this time so even if they have to take a bigger hit it is a much bigger organization than it was last year that no has to take this hit yeah so they're fine if the share price drop for me personally i'm speaking just personally here if the share price drop anything below four dollars i'm buying it all right that's for me

personally the share price no i buy so i i don't yeah i don't i don't expect anything bad from it they are in their growth phase this is an example of in my view of a company taking advantage of of other companies yeah the situation and and strengthening themselves when everybody's weak this is this is how it looks and the strengthening is where they were weakest i don't know if they were weakest i mean that that's where the last and the breakdown uh everything else was good except for motor well motor is the greatest risk right yeah motor motor yeah motor across is the greatest risk, right? Yeah, motor. Across the board for general insurance companies.

Motor insurance, really. It's not great for them. Yeah. But the way, in my view, I have a view of the insurance industry. And I'm still building out my view in terms of my full understanding of the insurance industry. But I believe scale is the friend there, right? I made a tweet out of there saying that insurance is the new banking you messaged me asking what you mean in my head i'm like why are you doing that that's good because i just wonder how come people message me i tell me things so i'm like yo you

know him you know just tell him like he's a good compliment tell him they know i feel good yeah it's the same thing if you want to know what i'm thinking ask him um but what i mean i mean we can i plan first to do an entire show on that so i won't go too deep into it here but insurance is a new banking and um it's not accidental that so many banks are looking at insurance, right? Exactly. NCB is no longer a banking group. Say that again? Like investments other day. Yes.

Simple sense. Look at things. What are you going to say again? DK Financial. Yes. Look at the GK Group. GK Group. Exactly.

Yeah. GK Group. Thank you. Yeah. GK group. Yeah. Or to name them properly, the GK Financial Group. Mm-hmm. That's the Miss Birdie of the financial sector. Everybody does a talk like

to overhear that name before. My name just drop it for everybody. Oh, yeah, GK Financial Group. I know them from where. When's the last time you heard? That was when I heard that name. So you should be jumping around the place when you hear that.

I'm moving around. But yeah, boy, you guys carry us on this tangent. Boy, it's a good tangent. Insurance is the new banking. Leave it at that. Just trust me on that. And yes, insurance and banking face a lot of the same risks. But one of those businesses is obviously better if what you want is to hold money in your

hand. I don't even remember how we got here. How did we get here? We were asking about them because of... Why were you asking? I asked about Genak because you were talking about DHL I wanted to know why you wanted to know about Genak Why I wanted to know about it?

Yeah man, outside of that Repeat that from here Yeah, as in what else what's the interest that you have in Genak? I was thinking about up and just, I was thinking about, you know, off the top, I was thinking that, you know, with less activity, you know,

it's not based behind like a statistical, you know, but I think what are the odds of the premiums, I mean, staying the same and the payout. I think that the spread the spread will be greater throughout this period so regardless of whether or not they have the expected credit losses i think that you know they're doing a better position it might be likely that they'd have less less payout and similar or more into it okay well i mean if you want to go into depth of the business what i said was that uh insurance is a business that benefits from scale so you notice that how these companies have

have um if you pay attention to the sector you know so these companies have protected themselves when faced with with issues when faced with um business arms that weren't as profitable issues when faced with um business arms that weren't as profitable gk separat cut them off when faced with insurance problems that aren't as profitable genoc didn't cut them off they just went bigger ncb went bigger sachikor went bigger scotia i mean you know somebody had to pay but but you notice that they all go bigger. Gina has an issue, just like Danai pointed out, where the part of their portfolio that gave them the most issues would be the motor.

So the man then go to Trinidad and buy Trinidad's biggest motor insurance company. That's scaling up. Key insurance, probably the worst run insurance company, definitely on the market um in the past in terms of the results what did they do they didn't they didn't get smaller and cut off the terrible part no they integrated into a group that's bigger scale is is the friend of the insurance business um and so i don't Buffett with that flow no no

you have to go there you go there you go there am I again with the flow thing I look at Genax last thing there

look at their Genax last results if you look at the increase the motor on stake is now

being booked and they're look at the actual in the motor on stake is now in is now being booked and they're possible when we look at the actual thing the investment portion of investment um income that's gone up of course because you have a bigger flow from more money coming in second thing i wanted to say yeah based on dundas's point that was it that was the the um second thing i wanted to say which was that was that premiums cannot stay the same. Premiums have to be raised. You already saw there was an article a couple

weeks ago. Talking about reinsurance. You never even need to say something like their reinsurers are... It's like them passing the buck, but the end result is expect higher premiums. Across the industry.

That's a must. Insurance is a new banking, of course. So you're going to pay more. And Jamaicans generally, if you bring it to Jamaica, Jamaicans are underinsured. We are underinsured. You see that when you go to any other country and talk to the people or in the real life.

I mean, you can get insurance. My phone is insured. My phone is insured in case it breaks or somebody steals it or or whatever there we go yeah so jamaicans are underinsured because human beings as human beings would have enough insurance and would have enough health insurance would have enough life insurance believe it or not uh yeah so insurance is new banking we're gonna do a whole episode on it but that's my thoughts on on g-nac as it is and g-nac is is an insurance company that i do feel nicely about i believe yeah i want to say i'm a shareholder but i'm not sure if i'm a shareholder anymore

so what happened i bought in got the rice rice sold and when it fell i'll plan to buy again i just miss my stop i'll miss where it was actually i'm a shareholder and i i am The forex people, you know, they stop, stop, laugh. Stop, laugh. Yeah, yeah, yeah, yeah. Actually, I'm a shareholder and I won't get too much details on my portfolio, but I'm a shareholder and I will continue to be a shareholder. It's a good time to buy, in my opinion, but I am not a licensed investment advisor. And you should speak to your licensed investment advisor about buying into something like this. But for me, it is a good time to buy, and I will be buying more.

You know what? I can feel myself regretting not saying more on that point or cutting it out. Again, not a financial advisor, and I'll tell people what happened here. If they have to face e-sales, I'll probably just buy when the price drop even more yeah by about these prices and I will be buying when it falls more and I will be very happy when it flies but because I'm impatient I buy no and when it falls more and i will be very happy when it flies but because i'm impatient i'll buy no

and when it falls more so that when it comes back to this price where it is no and i think it's undervalued now when it comes back to this price where it is no i'll be even happier all right which is a little thing i learned from um i think our next stock no it's not our next time we just spoke about qw bring us right back to right back to it it's not our next stock we just spoke about QWI bring us right back to it it's not the next one but our next stock is RJR wow RJR Radio Jamaica Limited

ah RJR right RJR had a big rise the other day on base but nothing in my opinion. Now I see it's looking worse. It's looking worse. Yeah, I don't know why.

Well, I know I have my theories. I know why it rose. But, and I think it's just a matter of how the market stays. At one point, it fell below a dollar or so. No, wow, no. it's been it was it was being dollar range for the longest while yeah for like since 2018 it had a nice rise uh mid 29th like a year about one year ago everybody climbed then i

walk off rgr white rise you buy rj you get none um was you know it's funny you know somebody needs to yeah definitely treated it from why because it was it was moving within our range uh it's just a nature internet i was not yeah that's not that's almost really i don't know if it's a must Really? I don't know if it's a must. I don't know. For me, it's definitely a must. And I enjoy it. I enjoy being immersed in it.

Enjoying it is one thing. Do you do it profitably? Yeah, I do. I have been doing it hard since March. And the only loss I've taken intraday was recently. I took a loss on SVL but that was I was I didn't for the dividend and the dividend let me out in a couple I haven't taken any losses since March what do you say but I mean obviously if it I will it starts as intraday but if it

doesn't go right I don't mind holding you know well yeah I mean everybody uses that kind of safety I'm sure a lot of people doing listening to this would have done that sort of safety with indies or um yeah recently mail pack as well mail pack is the other one i was about to mention i think about when people hear this so people are hearing this on wednesday and if you're listening to this on Wednesday Wednesday July 15 it's too late that's why work is too later is X date right or is today the last day to buy I think tomorrow I think tomorrow's the last day to buy the 16th so you didn't catch me so people are listening to this on the 15th of July So somebody's listening to this in their ears right now

And it's Wednesday the 15th of July for them And so I'm saying If you are hearing about Mailpack's dividend right now Then it is too late Because the ex-date is today Yeah so yesterday would have been The first day for you to buy it uh and and um

a force and this is the big force and dividend i should be going for this yep this is the reason why you guys heard this show you guys you guys got the four percent right the four percenters are here who was in the conversation because i remember seeing it on ig but i don't remember who the names were in the conversation i was in the conversation and malik was in the conversation and i hear is sean and who isn't on yeah so just run people through run people through your thought process for why it was that you um you saw the dividend coming and i mean you did you guys did call it at four% exactly. 4 cents, exactly. Malik called it at 4 cents exactly. I said 2% yield on current prices.

So 4 cents as well. Okay. Somebody in the conversation had said definitely above 2%. 2 cents. That was me. Where I said I expect about 2%, but definitely above 2 cents. Yeah, yeah. And I like that sort of logic.

I tell you, you guys continue to be impressive with this investing thing you know yeah so that's the same sort of safety logic i use that's i know say you also do the short-term trading sean uh my term is a bit longer than you guys so i don't really do intraday or within a week per se but i know why i buy a stock i know what i'm expecting out of it and I wait for that to happen so like MailPack, I bought MailPack in March was when I took my position yeah because when

when their statements came out in March yeah so what I did was when they put out their statements in February right which was for the December quarter Yeah, so what I did was when they put out their statements in February, right, which was for the December quarter, I saw that they had more cash than they expected to have in the prospectus.

I think like $20 million more, right? So I was like, okay, that cash has to be doing something at some point. Then in March, Corona happened or whatever, the local. I saw the article came out. I think the article actually came out in April, but I bought, I started buying before that, but the article that came out in April where they was talking about the re-ink the deal with Pricemart

within that article what's his name Carrie Robinson had mentioned that they had to hire about 30 new staff, add 5 new fleet to the, five new vehicles to the fleet within that week.

And that since the advent of COVID, orders had gone up nearly fourfold. And I'm like, all right, so clearly they're beating projections again. So I said, all right, that cash, it would make sense for me, to me,

if they would just pay it as a dividend, especially because they recently listed and then the bank restriction on dividends came out. And I was like, that's just even more incentive to pay a dividend. Right. That's good. I like how you're on point. Let me try to help tighten up your points a little bit there. The bank restriction on dividends, the BOJ restriction on dividends is a good point to note, but then you also have to remember the people behind the business, right? If you want to speak directly, not knowing Lycari's business,

you would expect that the bank dividends wouldn't affect him, right? However, you have to think about what else is Kyrie doing? What's the things happening around not just the MailPak group, but the Norbrook investment group, right? What is the things happening around the not just the mail pack group but um the norbrook investment group right what is the things expected and what what what do you need in those sort of situations i

know i'm speaking a little vaguely but i mean people can put two and two together but if you look at those situations you can see where it makes perfect sense to have cash right no add to that corona all right corona is great to ball about if you're on twitter or if you if you're on the news but when you're at a certain level of business corona as i just said a little earlier it's a great time for you to do investment it's a great time to invest now it's a great time to have cash in your hand you're getting all kind of deal it could be miss birdie crackers for cheaper or it could be it could be a hotel in portland everybody's getting great deals now right so even at the level of a normal capital

where carrie robbins would play it would be great for him to have a lot of cash on hand so it's no surprise then that you see a larger than usual dividend being paid by a company like this and also note that carrie is not in my view the typical usual jamaican um investment type right uh i think he's more aligned towards the u.s markets more advanced markets and within advanced markets this isn't anything on this isn't anything unusual it's just it's a strong dividend for jamaica but in terms of advanced markets you guys are the calculations against the um dividend the dividend policy that was in in the in the uh yeah i took it into consideration but i weighed in their debt more

was there four was there four cent versus ipo price dividend in line with their policy uh i should have their policy? Or ahead of their policy? That's what I was saying. I didn't really give it as much focus in the thing. I just checked it to see what the policy was to know how much they couldn't pay out. That policy doesn't stop them from doing anything.

They can go above it. I just wanted to know, based on the policy, what was the maximum that I should be expecting based off of what I saw in the book you said they can they can go about the policy they can do whatever they want is their policy up to oh okay yeah it's not a government policy is them say all right 75 all if it's a government policy apparently well um yeah i mean a lot of i'm saying that and i'm sure there's somebody shaking their head at them speaking or going no you've been irresponsible but it's the truth meaning for example the boj

request because you have to say it's a request right to to banks to um hold off on dividends it is a request indeed the policy doesn't stop them the law doesn't stop them the banks can if they wish pay a dividend right now of whatever amount they want as long as their um cash position and their their their retained earnings allows them to but they've been asked not to right by boj because boj can make it very uncomfortable for them if they do but they can't actually stop them. As long as I think their liquidity is above a certain level, meaning their cash position, their capital. Yeah, and they're way above it. All of them are way above it.

But, you know, it's a request. So, yeah, I don't know that the policy is going to stop you. The policy can be changed if it's private sector, and the policy can can be changed if it's private sector and the policy can also be changed for this public sector um they said there's nothing that is illegal if 100 well-placed businessmen decide that it should be legal yeah but this is 100 legal and i just like that you guys as really impressed with the conversations that you had around coming to that dividend and how you came at it how you see it and then of course i assume that you guys didn't leave it and just talk did you guys actually invest towards it i had a good little portion it was a decent percentage of my portfolio at the time when the run was happening oh yeah i see oh so you got the run you never got the dividend i still have some left back okay but you know you have okay i was i was if i bought in march you

can expect i was up a decent little portion at the time yeah man so a while ago i buy a while ago i buy tea that i'm normally yeah isn't me waiting what you think i just happen to just know the article you're talking about yeah man i know man i listen i listen you know as the episode them drop I listen my google podcast set to auto download and everything yeah the man fan big up

yeah man but yeah you're right it was a great sign and it's good to see those signs and you're you are um benefiting

even if you hold it no I wish this was coming out earlier with people here but so you go you're hearing it now I'm sure there'll be more

uh but yeah mail pack is the second impressive dividend cause in these I wish this was coming out earlier with people here, but there you go. You're hearing it now. I'm sure there'll be more. But yeah, MailPack is the second impressive dividend because we saw Indies, similar sort of thing with Indies, but Indies get a whole heap of pressure in the queue. Yep. MailPack don't get as much pressure. The saying was against Indies. Yeah, it really looked that way.

So Indies date gone. So MailPack, let me wrap that. well if we got here from rjr wow that's so that's so rjr just throw it through a loop out there there's nothing much to say um until something is going to cause their business to suddenly be better or more efficient i don't see anything that is going to help them to do any to do anything impressive within the within the space that they are all right that the last i remember i think they were going for some online sort of things i think fame now have a thing on tv so there's no radio on my tv i i don't i don't i don't know I don't know it's a

they're definitely going to have to get creative well they needed to have gotten creative two years ago yeah I remember that thing when it came out that in fact I was going to say it then but I believe it still exists right now let

me let me see if i'm incorrect rjr as we speak rjr's market cap is 3.14 million billion jamaican dollars not million billion with a b and the lab is 2.3 billion jamaican dollars so there's a point though and that's the lab at at um two dollars 51 cents there's a point when lab was at three dollars and over three dollars where its market cap actually passed rjr uh which would mean that in terms of market cap the lab would have been a bigger company than rjr imagine that uh that's just to show you how the entire face of jamaica has changed in terms of not just investing but business yeah yeah rjr to me i mean i don't own any and i don't plan to own any list and do something impressive they're not that impressive their share price isn't impressive they're overvalued in my view and good luck to the people who own it yeah yeah good luck to them uh next up we have

roc yeah insurance company this one we haven't spoken about in a while that i i think we spoke about it maybe earlier this year or last year but i don't think we've really spoken about it last year but I don't think we really spoke about it in a bit the principal of this company died oh yes legendary old yeah that man had a lot of hands in a lot of places yeah legendary investor and now I think there was a couple of results since then there was a couple of results since then but they are they continue to be strong. At one point, I was probably the most excited about them in terms of the insurance industry. And I'm

still excited about them because what happens is that they don't have the same sort of overheads that all the other insurance companies have because they're young. They're new. I'm looking on the wrong thing. Sorry. But yeah, they're new. Iron Rock, I think, looking on the wrong thing sorry uh but yeah they're new um uh iron rock i think up to the 31st of march 2020 they would have they had a loss of 2.8 million on the quarter and just for

some comparison they usually have losses in a couple of quarters. Last year was, I think it was the first year that they registered a full year profit. I could be wrong. Yeah, 5 million in profit. And those numbers sound low, but don't be fooled. Insurance is the new banking. This is a nice, small, new insurance company with good backers. Fine industry. And the thing is, they're not

really settling in the same way as others, so you can't see where if they refine their model as it is and then open to a wider market, then I can't see where they'll do better. You know, it's funny. Big up

Young Braham who sent me an article from the Sunday Gleaner where they were talking about um they're talking about scotia so the scotia sale of their insurance arm to sagicor financial did not go through in jamaica and trinidad oh yeah yeah and the impression that and this is his his thing begin off again but the the the the impression I got he got I should say because I haven't reread it yet but the picture I got from it was not was that it was more a matter of Sajikor it not being the best buy for Sajikor because of I mean the regulatory hurdles and the extra cost that would cost them to buy it.

But it didn't seem like Scotia was not interested in selling it. So who knows? Maybe Iron Rock can raise some money and grab that immediately, just level themselves up in the insurance business because you'd buy a local portfolio worth, I'm going to say

billions. If it fits within your business model. So there is some, there are many opportunities out there for them. I have liked them for a long time. How do you feel about them, Danaya? How do you feel about them, guys? I was about to say, man, you can see

where they're growing. One thing I like when I was looking at the numbers, right, look at the same expenses. The stability across year over year wow yeah wow 27 million last year

and this year 27.6 and that's up to March so that includes a little bit of the corona yeah this quarter meaning April, May, June will be very interesting to see especially to see what the ecls do to them how do you guys feel about it henel sean i haven't looked much into them so i'm

not in a position to speak on it as well honestly not gonna cap okay no problem no problem no problem no problem i assume the same for dundas um One thing I will say to you guys, though, it's best to look everywhere. Yes. You don't identify opportunity by seeing the same things you've been seeing. It quickly becomes, I've seen this for myself, I'm sure Randy has seen it for himself, it quickly becomes that you're looking too much at the same stocks

and then you start wondering. What has happened? I agree. Something happened in here. Dundas now in investor group so you've seen me ask is there anything else can we talk about

other stocks more than just the same one everyday we talk about the same stocks what new are we learning about these same stocks exactly I agree, as I've recently started to expand my thing a bit more because i was trying to download like all the statements and try to keep current but then

now i just look and i download them same way now because i've already created all the folders so it's easy to save them now but yeah so it but that's pretty recent that's literally since corona and school became online and everything. Okay. I like that. But you don't have to kill off yourself with no big process like that, my brother. No, man.

It's just like, you see them. I mean, I check the news at the end of every day still. Like, the end of about 6, 7 o'clock, I check the news, and I check it before trading every day. So, it's not any real difficulty for me to save them, because it's not like you have to open it to say no man it's not the saving it's not the saving i'm worrying about the checking of all the same thing yeah i'm talking about knowing it that's i think that's what danai's

point was knowing every company oh yeah and i encourage anybody who's serious about the market to do that you don't take no great thing go on jc website the same little the same the same top right link and and just and just start with 138 student living and you've never heard our company before boom there's the first company view report and open go from even just read it note one what are the principal lines of business for this company and it's open on a report and looking to deeper yeah going, just know every company if you're serious about the marketing you're going this hard because

the moment you read a news article you start picking out how can this benefit whatever company just because it knows that company more than you know what that company does I agree, just actually since I was listening to this thing I heard Danai

mention one time about the Google alerts that he used and that has been a lifesaver from that I also heard the pocket app when I mentioned with another guest one time also a lifesaver that telegram

channel I've mentioned it before I don't know if i've mentioned it on this before i should mention it i don't know but telegram channel there is i put in the in the in the comment in the show notes yeah i put in the show notes for anybody interested but there's actually and if you hear me say this you might be wondering where's the telegram channel that helps you to keep up to date with all the news and events around the jsc and you think randy said it let me message him and ask him but i'm gonna save you the trouble right now go in your show notes and you will see a link to the ever michael um channel there's no chat in there so you don't worry about people running off your ears we don't it's just news it's an easy place to collate all the news and also all the results going there.

All the results, all the notices, everything. It's just an easy place for you to stay on point with everything. All right, so check it right now. I would say, if I could say it, but I don't know if there is an easy link. There is an easy link. T, I'm going to say it also, but it's still in the show notes. t i'm going to say it also but still in the show notes t dot m e that's the letter t dot m e slash mickle signals i'll say it again t dot m e slash mickle signals so just like every mickle mickle signals all right you can go there keep up with it keep up with um your portfolio what's happening

and it will help you stay on top but yeah guys i can't i can't stress that enough just just know the market that way and you know what you know just think about this you ever read an article and i won't say any newspaper name here but you ever read an article in any newspaper about something that you know on the market and you read the article you wonder yo who the hell write this yeah definitely yeah yeah yeah right so you're like yo this is like this is not what is happening in the company at all this is not what was announced you can tell that the person i write this don't really know what going on i'm just kind of just saying like i need to report this because i work under this um thing all right i work in this department at the newspaper then stop me upon the finance desk which happens all the time

so think about that for a company that you know and then think about that for a company that you don't know and you're getting the news from and you're getting the news from the newspaper that's pretty much how I came to the conclusion I was there and I was like I know I'm getting the emails and I'm looking at the articles and such the news from the newspaper that's pretty much how i came to the conclusion yep yeah you can't

trust there and i was like i know i get in the emails and i'm looking at the articles and such and i'm like but if i can clearly see the articles that reference the companies that i am interested in that i've set these things for why would i not just set it for everything like what so yeah that's really what it's been it's expanding but you know you can't do everything one time so it's just what what that's true yeah man take your't do everything one time. So it's just over time. No, that's true. Yeah, man. Take your time and do it. Take your time and do it.

But I just want you to consider also that oftentimes when you don't know about a company or you don't know about it, it's also a situation. We don't know about a company. The newspaper article you read on it or the article you read on it tends to shape your view of the company. True. And when you do know about a company and you read the articles you're like no these people have no idea what the hell i'm talking about right so i don't want these people that

don't know the hell i'm talking about shape your mind for a company because you didn't know about a company so yeah man know about every company and i can tell you still that it's not that it is not hard and the hardest part is just the first part after that it's just a matter of keeping up yep so when new things come out all i'm gonna do is the only time it's hard to keep up is when like a lot when it's earning season and there's a lot of um there's no set everything coming out one time yeah you have just a time and go through all the little you know in fact a lot of times just that's why sometimes you hear us talk so much about the pnl because it's so easy when you know so much about the company already that all you do is updating yourself you know how

are they doing this quarter yeah i had to explain it to somebody the other day when they need me to explain stuff to them because naturally being an accounting major and people see me as part of 876 invest they always come to me like people who know me before will always come to me and be like hey sean i see you guys doing this how can i help and have to be like all right you have to explain to me what part of accounts you know because all i see these numbers as is the reality of business i don't see it in the way that you see it like it's when i look at the number i see all of the activities that made up the number because I work in accounts and I've been studying accounts. I know the work that goes into just condensing it down into the statement.

Yes. Yeah. You have a real view behind the numbers. So other people don't see it the same way. And you sound, you have a very practical view of it. And then your brother and them also have a practical view. So. Agreed.

My mother is an accountant as well. So that's been there from when i was born yeah and my auntie is an investment banker so yeah well you're really right family your family thing does your mother invest on she yeah but not like heavily she she's very long term so she'll get her money put it on something and then leave it for a while nothing wrong with that nothing wrong indeed yeah it's like it's a good move for my mother betty workout she have ncb no she have gk from cheap oh wow yeah $10 gk people yeah man big up mommy with that all right uh so i i know we're not at rj we are roc so roc i like and i like them as a company that i think is is growing in the space that is going to be blowing up soon

right it's just finding footing on it and that's the price what you said i need to find the footing on the stock price if you find the footing and then that stock price what you said they need to find their footing on the stock price they need to find their footing and then that stock price will do its thing oh yes that is true they need a win

I mean those countries they're in profit really and they'll be fine I'll save some of the spicy thoughts I have around them

for when we're doing our insurance episode but I like them as they are now I think that they're a little overvalued

but I can see them making moves to get think that they're a little overvalued but i can see them making moves to get to that value and also the insurance space is getting hot who knows who knows maybe a nice company like the company principal like we say isn't there anymore and maybe now is the time to uh consider maybe you know maybe maybe maybe you get bought out who knows who knows it'd be so good or maybe you buy somebody out who knows oh yeah strong team strong money i like them in in both near and the long term they're there you can't ramp with them all right so coming up next we have salada salada foods anybody love this anybody like it hi guys randy here again just reminding you that this is just one part of

obviously a multi-part series um we will have the rest of the parts in the future but we're gonna cut it here so yes i deliberately allowed you to hear what would have come next which would have been salada and and the next episode when we play it will the next episode in the series when we play it will obviously start off at the Salada point thank you and I hope you enjoyed it Sam. She used to sing, but she don't no more. Samsung. Ah! Don't leave me! Where are you going?