Earnings Season - The State of the Market - Q1 2020 Stock Market Review (Part 1)

Episode Date: April 30, 2020

This week @RTRowe and @HDanhai start their review of the entire market. They kick things off by covering the most current events; the Bank of Jamaica dividend request to  deposit taking institutions, its expected effects and then head into the market review. No company is gonna be untouched for this series. Today's episode runs from 138 Student Living ($138SL.ja) to Caribbean Producers Jamaica Limited ($CPJ.ja), and this is only the beginning….Come for the gems, get to choose them all....This one goes long, Enjoy! Contact Us Here 📧 [e-mail] 📱 www.twitter.com/Earnings_Season 🔗Links🔗 BOJ Dividend Suspension - https://bit.ly/2VRHQ7X Randy's NCB Tweet - https://bit.ly/2z0esTJBlue Power Sees Strong Demand - https://bit.ly/2Wpk7erBerger Starting Retail Stores - https://bit.ly/3bQplpWThe EveryMickle.com Stock Calendar - https://www.everymickle.com/testcal🔊Shout Outs🔊 @HalsallDoug, @MsGillyJ, @SmittyRoyal, @MiossotyJohnson ★ Support this podcast ★

it's funny you say gifs and you can't say gilly no i said gifs deliberately because of gilly you're funny let's go hi guys welcome to Earnings Season. First, I would say first, not the first Earnings Season. Well, latest Earnings Season that you're hearing, so that's accurate. I'm Randy Rowe on Twitter, I'm at RTRowe. And I'm Danai on Twitter, I'm HDanai. And this is Earnings Season, a show where we talk about money, finance, business, and whatever else that strikes our fancy.

Usually along those lines. Yeah, usually along those lines, and anything else really that we care about. This week is a great week because we are this week doing a Q1 review, big review episode, the true earnings season, half earnings season, whatever you want to call it, Danai. Almost, we're in earnings season. We're're expecting results we just haven't gotten in yet so really earnings earnings some things that will come out there true but if you think about it is actually actual earning season for q1 because this is the q1 review yeah we haven't actually reviewed Q1, have we? No, we have not. Wow. Wow, I was thinking that it's earnings season, but it is actually the review of technically Q4 of 2019.

Because now we have all the, well, not even all, but most of the financials for all the companies up to December 31st, right? Yeah. Yeah, so for the people who might be lost on that point, come to Grow, this wonderful class that I keep, and maybe I'll throw a Grow ad in later on. Come to Grow if you want to have that explained to you. I should throw in a Grow code, you know. Hmm, we'll see.

I'll see how I feel you later on uh yeah anyway so we are going to be reviewing the entire market and updating our portfolios tonight because we we we did promise to see how we end and oh yes q1 yes that race that wonderful race that we were so confident before corona um so we'll see which one of us which one of us will spoil all it which is which one of us lost harder or lost at all who knows um but yeah so we'll be going through pretty much every company on the market obviously that will take some time guys so this might be a little bit of a longer episode however don't expect us to give you long in-depth complete reviews of our of every single company because then that would take days and you would have to be paying us for that so without further ado boom we can start actually then i before we start that we should talk about um just the big things

happening in the market because we did the corona series and we had a couple of call-ins and we put those out for a few weeks but we haven't spoken about like the biggest things in the market since and like actual effects and obviously the big one is um what you said you know the biggest latest one Dead air. The biggest, latest thing in the market that we have happening right now. Right now? The dividend thing. The dividend thing, as you call it. I'm not going to expose this. Thank you, sir. The dividend thing is the BOJ has put a stop

on the payment of all dividends for financial holding companies and their licensed deposit-taking institutions. So the big companies like Sarchicor, NCB, JMMB, the banks

basically, they can't pay off any dividends right now. and up until the end of the financial year financial year yes the financial year which means that is actually it's not the end of 2020 it's march march 21st yeah yeah march 31st 2021 uh. Big news, right? And they said that they're doing this to... Did they say why they're doing this? No. I mean, they have to give a reason. They can't just stop it.

I think the reason given was... Yeah, go ahead. I want to say the official release. So, let's go there. Yeah. But what's at the top of my head is that they're doing it... The stated reason, I believe they said, is to protect're doing it the stated reason i believe they said is to protect the strength of the financial institutions and their ability to have and and give out capital

but i mean i think they usually have more than enough money for that i think i suspect it is more linked towards the US dollar. US dollar protection. Meaning not US dollar protection. The rate. Yes. I think it has to do with liquidity. The banks have a significant liability in deposits. So when you go into the bank and put money in your bank account,

the bank will lend out some of it. And they have a guarantee that they'll pay it back but say they pay dividends and there's less money in the bank so they pay dividends from their profits and retain earnings there's less money in the bank and something will happen and they're losing money now and why you come to draw your money it's not there. Or every day there's a mass pull out of the bank because of whatever is happening in the economy. Like if something bigger than... Yeah, I think they're trying to lock down and make sure the banks have money inside. So they're ensuring that the banks can pay people back. And what did they say? What's the official reason that they said they gave I'm looking for it yeah what are you doing you checking the twitter?

I'm checking the actual article okay so guys this episode expect to hear a lot of pauses while Dana and I look at data, because that will also happen while we're going through companies, right? We're going to actually take a glance sometimes at these companies' financials and anything interesting in them. Yeah, see there. It's an observable article. BOJ suspends distribution of profits by way of declaring. Reading down, the full release from the BOJ is printed below.

The Bank of Jamaica has been closely monitoring the current impact of the novel COVID-19 virus pandemic on the global and domestic financial system. Notwithstanding the effects of the pandemic on normal business activities, Bill J. would have to indicate that the fundamental Jamaican financial system continues to be strong, with licensees' capital and equity exceeding current regulatory requirements and established prudent norms. I think that line itself is why I was looking at liquidity issues. They mentioned liquidity. They mentioned liquidity to say, oh, it's fine right now, but I'm not sure that they can see where things can go south.

And remember, they're borrowing money. They're looking at IMF program right now to get some more money, the line of credit type of thing, to get some liquidity in our system if necessary. So I think that's where that comes into play. In addition, the central bank stands to generate a pool, provide liquidity and other support necessary, ensure that financial institutions can continue to provide credit

and other financial services to the public, limit the potential negative economic repercussions on the lives of ordinary Jamaicans and preserve confidence in Jamaican financial system. Against his background with a view to conserving capital and further enhancing licenses, lending, and lost absorption capacities, BLJ, after a consultation with the board of the financial holding company, FHC, designates and wishes to confirm the mutual understanding that FHC

and deposit positive institution will suspend the distribution of profits by way of declaring dividends in any amount of cash or stock for the financial year until further notices or understanding of FHC dissonance and details so may I postpone the distribution of any unpaid dividends declared for the

2019 financial year. Which is a long way of saying no dividends from these big guys for the rest of the year until March 31st. Also, any that were declared before and you were going to pay, don't pay.

Yeah, and that last bit is important because I think that catch Sajikor. Yeah, because they had a dividend declared and didn't. And the payment hasn't come as yet. So I think that's where it is. Oh, it's going to be very interesting in terms of seeing how, I mean, if I had the time, I would have done some digging to see how they can, um, stop, especially just the one

that was already declared. You mean how they can stop? Because technically the BOJ is a private company. They don't have that much power. So that's the investigation I would get into.

As far as I know, the central bank can tell banks to chill. they have a lot of leeway where they can tell them what to do true that they can they can stop a lot lot lot however even though i'm saying okay go ahead true true true true you know what else they do that they regulate you know? They regulate banking hours. We are required as Jamaicans

to have a minimum, I think, of 24 or 25 hours of banking for a week. Yeah. Which means that that's for you guys thinking. If everybody thinks, you know, why can't we get the banks open later? If you really want the banks to be open later, just ask BOJ. means that that's for you guys thinking if everybody thinks you know why why can't we

get the banks open later if you really want the banks to be open later just ask boj lobby boj not the banks because if boj increases the number then the banks have to do it yeah yeah but right now i think the boj probably wants to keep the banks happy. Yeah man, yeah. Because mutual relationship, Jamaica and the bank, you can't really, if you squeeze them too tight, then you have problems and you don't want any banks to have any problems, which is a big part of them. Keep like, when you talk about all liquidity ratios are too low or something like that, or you can, not necessarily the same, but you can look at the key was in a situation where it is FSC and because they're insurance,

but it's a similar type of regulation. The fact that key was in probably because of your unprofitability and you don't have enough cash. You need to be at a certain, perform at a certain level because you hold so much of people's, you hold so much of people's welfare in your hands.

If the bank is doing well then you don't have a safe environment for your money to be so you need them to be and you hold a lot of it's two things I know for key was around the fact that you're an insurance company so in order

to be insolvent you have to have X amount of money capital and then also the pensions who invest in so many of these things yeah yeah the boj has to be that regulator to ensure that like we have to act now so that we don't feel it 10 years from now yeah which is also why i make such a big deal about financial literacy because people are like well i don't i don't need to trade stocks it don't matter to me i'm not in stocks so what might happen on the market don't matter to me okay so my company that i put my so i have an insurance policy with a company

and my company is on the market so it's subject to certain regulations exactly you can't pay me if it's not doing well so at some level the company is affecting me and if my pension or insurance policy invests into that stock on the market then why are you not probably stuck around which we've seen

what is the name again 2008 and 2009 in the US.S. So I was giving a weak comparison. I don't want people to take it up and say that I compare now 2008 and 2009. Different situations, but they have some similarities in the way things can go. Like when people are going to follow the U.S. Generally, U.S. is very different. Because the big crash there was, boy, the US is very different because

the big crash there was, boy, the markets smashed up now. We have no insurance. Insurance companies used to own

these homes or these loans. The banks used to own these loans or pensions used to own these loans

and then all at once these loans don't, they're not worth anything anymore. Your pension never worth nothing. Your pension never worth nothing your insurance never worth nothing everything just went into crap people lose their homes because they don't have a plan anymore

i think that's never make up make up work work with a lot of people at that time yep i forgot where i'm going i think you're i mean the point was around why it is that even if you think that the stock market is going to affect you directly. Yeah, definitely. So if your pension is there, your insurance is there, then there ain't no problem if certain things are bad for them. And at a certain time, like, no, we're a secure boy. Companies which are on the stock market, which we are invested in, however you're invested in them. If those companies can't continue business

or do well, then we have a problem. And you see the big companies like the NCBs, the MMBs, and the statutory courts, they hold a lot of the money that is invested through whatever instrument, through the insurance and the pension.

They're invested in those companies but they're huge and they pay significant consistent dividends so which dividend everybody point say your pension portfolio can't get the regular dividends that it was thinking ticket for a whole year now mm-hmm I'd invest in NC me thinking board the dividend will come so it might be some rebalancing there yeah that's a very major point yeah very major point although I might not be too but a problem if they can if the cash flow to the pension fund is good enough for me from elsewhere so like you get anything there so you have a whole lot of bonds and the bonds will actually pay well for this year and if you never know bonds in province to right now so

well it's a big big point you make there you you know, because I thought of the very same thing as you did when you said it, that how are the pensions going to really survive, you know? How are the pensions going to make it out of the year? Not that they're in any real problem of becoming insolvent or crashing but just the fact that like you know a whole heap of pensions hold ncb shares and they rely on that annual dividend yeah it's a whole ncb for years right so you take you bought when you were 25 right and now you're 65 you bought into the pension plan and they were buying NTB for 40 years. In the year 65, so you're sitting there, the cash is passing through that dividend cash flow to you. So your money you're supposed to get for your pension every year now,

every month now, will be coming from NTB dividends probably instead of them actually selling the NTB stock. As long as they're keeping off of the minimum cash that the pension requires to have. Exactly. Then they have a dividend and they can just pass it through. I own the security, that's pass through the cash flow I get from the security, no problem. Now they might... Now things are different.

Yeah. But again, pensions are very very very diversified stocks don't make up most of them invested so you you might not have that issue but they'll have to get creative and find new ways and find some of us new ways to pay they might be selling stuff more than they usually remember anything or determine us sell some bonds or actually the bonds, if the bonds do well enough they pay through that well, that's one

consideration, I'll put the BOJ notice the official one, in case anybody hasn't seen it in the show notes from right here well yeah, that's one of the major and since it was announced last

week Friday after the market closed and of course the big deal was yo what is going to be the effect on the market come Monday morning alright pension there's other people

they go buy a pension fund other people have, they just bought some stocks as a pension. They're buying stocks here, they bought NCV for years. And then these dividends to NCV, you find out that older people are these, are agents, because you sell them pension, they make them dividends after years of investing. Am I right? After they make investments in these bigger companies, these financial companies, they might be feeding it right now, and they might be selling.

As we can see, I think we're going to the point of what happened today. Yeah. Today, I guess, what's happening. Since Monday, what date was Monday?

27th. 27th. The 27th. Yeah, so since the 27th, NCB closed on Friday the 24th at 151.7 cents. It says 151.7 cents. And it closed Monday at 142, I think. Yeah, 142.57 cents. So that is a drop of almost 6%, 5.96% drop. No, apologies.

That's so much. Well, no, it is. Is my math wrong there, Danesh? Oh, you're taking my math out again on the page what's up yeah no it's about a five a little almost six percent almost six percent lost in one day and of course the day after that it fell again so at the end of today it closed at 140 and 32 cents but interesting you look at the lows so the low yesterday

which is the low on Monday was 148 no it was not no no no I'm wrong wait why am I not seeing Monday

on JCCI no you're correct 148 was the low look on the plates and I see Monday on JCCI oh aha there's Monday yeah 148 was the low look on the plates and I see Monday on JC's side oh aha that is a

there's Monday yeah so 131 yes I finally got it 131 so the low on Monday

was 131 mm and 47,000 shares and that's for you know NCB you know

that's quite a bit of money yeah yes quite a bit and so today was 135 but you can see where people were buying into it kept it and also people were flipping heavily on those days so like they

bought at 130 plus and they were selling back at 140 plus making a nice good spread there nice because two three will have been more than two or three it doesn't have to depend on who your broker is right if you have good fees it doesn't have to be yeah but wow that's a nice little spread yeah yeah the volumes today at least going today i 38 million, 38.7 million traded today. And that's, yeah. No.

Sorry. No, no. $38.7 million worth of shares, yeah. 276,000 shares traded today. Ooh. Yeah. And 166 trades. What is Sagicor fearing?

Sagicor, that's a good one to to check sagicor is we are looking at um an sj sagicor that's their ticker sagicor group jamaica they ended today down 2.89 almost three percent right and they also fell and they closed on Friday at $49.62 and now they're down to $45.01 Wow what's that in percentages looking at jmnb now 49.62 almost 10% almost a 10% drop on

sagicore jamaica in two days in two trading days wow yeah actually exited um ncb you know yeah yeah put in the order i should say i i submitted an order to exit Yeah. I actually exited NCB, you know. Yeah? Yeah.

I put in the order. I should say I submitted an order to exit NCB. I didn't. It wasn't through JTrader. Yeah. You know that's something. Yeah. I don't know how that goes.

So I put in an order. So hopefully I got up before this drop. And guys, anybody listening said, Jesus Christ, Randy, say leave NCB. No, that doesn't mean that I think NCB is is bad it just means i don't have any reason to if i say a drop in front of me there's no reason at all for me to go into that drop um i still think that ncb is pretty pretty not even pretty great i mean i still think they're pretty great i am actually excited about their next set of results. Yeah. It's funny. I saw your tweet today. Ah, yes. I was tweeting to Doug.

I had responded to a Doug Halsall tweet. And I put that tweet also in the show notes. Yeah. It was hilarious. Yeah. So Doug Halsall was, I guess, realizing that NCB had fallen in value and He was saying he might, he never thought he'd get an up-to-average down on NCB again. Which is true, right?

It's funny, when you're going 200 with a car, I think that it's like, if you're not okay with 200 200, then, look at what we're saying. We're saying, oh, yo, just the other day,

you were getting updated by NCB at 130, 140. Look at today. And it's right. Right. I mean, the two, at the 200,

we were thinking, oh my God, we're going to miss the hundreds. Sorry. It is going to miss it and here we are now exactly um so my actual tweet my actual tweet was was um tongue-in-cheek i thought it was obviously tongue-in-cheek somebody was somebody responded in a way i said boy maybe maybe it's maybe not clear enough yeah i kind of kill it so what i said was averaging down on ncb only makes sense if you go for your money is a year or more away and you're under the impression that ncb will still exist and still be

a massive player in the region in a year or more yeah yeah and then the response i've got to like what so you're really saying ncbs you don't think they'll exist in a year come on you guys know but the ncb has been through worse right there i know right it's me made it through fin sack yeah come on oh lord yeah i thought it was clear but apparently it's not so let me not assume let me let me be clear just in case any listener wants me to be clear i'll say it again averaging down on ncb and for on that part i think we might not get when i say averaging down it means if you own it let's say you bought ncb at 190 200 201 and it's currently no i always said said 140 little bit yeah yeah 140 so if you buy no you are reducing your average price because some of your shares that you bought you bought at 200 i know these you bought at 140

and if you average out the price between those two which you should because all your shares cost you whatever the average price is then it's called averaging down buying low is called averaging down buying something that you already own at a lower price is called averaging down um and so if you if you know that then the rest is that you know averaging down or buying ncb shares more ncb shares follow only makes sense if your goal for your money is a year or more away and you believe that ncb will still be around and still be huge in a year or more if the answer to the last two is yes then you can determine what the answer to the first part should be that's all i mean i didn't think ncb is going anywhere and while i did just say that i have sold my ncb shares best believe i will be buying back ncb shares hopefully at 130 or 135 or something like that um yeah

but wow yeah it's been it's been and jmmb what's jmmb's drop been like it's not been much but that my my thought was that jmmb was taking a beating before from before this right right the the week it was already going down people are saying into it it's been falling heavily and i know that they have some results due so well no they don't have any results due very quickly do they the march results are their year end so they have a little bit of time. Oh, yes. You are right. You are right. Yeah. They have a little bit of time.

Uh-huh. Uh-huh. They usually post. Say that again? They usually post 12 months before they post the thing there. Yeah. You usually get your audited. Your audited.

And then, and then. You get your audited and then you get your. Your unaudited and your audited. Remind me of the rule. It's 60 get your unaudited and then you get your audited. Remind me of the rule. Is 60 days for unaudited if you choose? 60 days. You can choose and release audited in 60 days or 45 days unaudited and 90 days audited. Aha.

So they usually get unaudited first. If yes, then... Actually, I'm checking right now to see which one they usually drop first i know that they release their um annual report sometime around july usually i know it's usually and i know different body from reasons i just thinking about so we know a worst case scenario anybody and it's not worst case scenario guys because you will hear long before July yeah they usually release audited numbers and yeah yeah yeah they're a bank so definitely not yeah around June around the first week of June at least last year they did it June 5th

so we're in April now near the end of April so i have about a month's wait i think yeah um you have about a month's wait and well the people that grow and know the things that what are the things that i pointed out that as a an occasional sign as explained to them you know how my method of analyzing a company how we put how we put all the dots together in order to see whether or not it makes sense to buy in and one of the things was that sometimes you look to see what's happening um with the insiders because obviously the people inside the company know more than you know oh yes and you saw what happened didn't be right before the close of the blackout period not just before the clothes on the blackout period so when i'm showing anything grow is different brother you don't say the man them by the insiders in jamie i shouldn't say the man them because I don't think it's man or woman.

And they have both on the board. And it's not clear. It says I'm associated. It's a connected party. Oh, yeah. Yes. So a connected party has been buying from literally since their blackout period ended. December.

blackout period ended december like so in january the new quarter right up until um right up until right up until the last day of their blackout march 31st and it's big volumes in a better couple days well yeah man two three or four million jmb shares and as the price dropped them buy more them buy right up until march 31st i rate them for that yep um and that's a nice a nice little indicator right well well with that said we can start how you wanted this so you wanted this thing that i i sent you a link um it should help you with viewing the companies a little smoother than we used to. All right. Yeah. So if you work with this specific link, it should help you. We can either go alphabetical order or JC's industry order, or we can go market. Your choice.

Alphabetical. Boom. Good call. And then we can alternate. I'll start with 18 not 1834 138 student living uh currently at um seven dollars and 15 cents um um what 138 student living i mean the biggest thing the two biggest things happened to them was that they

were in a little bit of eruption me putting eruption in air quotes there with their their partners ue and i think they're now back to having full partnership with ue and as a result of that yeah when they're in the eruption the money did pause so ue pays 138 student living some money and they're guaranteed to pay them some money and it paused they worked out their differences and a lump sum payment was made which caused them to have um a really good a really good i think at least a really good profit. Oh yeah. So the thing is, it's funny, they were profitable. Without the lump sum, without the payments,

those periods would have been profitable. Properly profitable. It would be happily profitable. Some good money coming to them. Without the lump sum payments. At that point, without the lump sum payments, they were good.

And then, lump sum payments come in, and they were slated to have been paid for the rest of this year. On top of the regular money they'll be getting, you'll be giving some more money

onto them for the rest of this year. Hmm. But coronavirus. Coronavirus. Funny story. So I don't know if we said it on this episode or if it's something edited or not, but we can say it right now. So one of my wonders is quick

eruption. The eruption was the quick eruption. Quick point because of the eruption. The eruption was the quick eruption. Quick point because of the eruption. The eruption between them and Yui, I think, was because Yui has to guarantee them revenue. Exactly. It means if them occupancy dropped.

Yeah. We're going the exact same place. If them revenue dropped to 80%, if them residency dropped to 80%, you will have to make up the 10% to bring them to 90%. But we don't know the terms of whatever they have agreed. And I think it's going to be very material now to see what those terms are,

because it might mean that you will have to give them another payment for the time that they've been done, because 130th student living is now empty. Now, on the other hand, I'm thinking of this, right? Students pay for 130th student living monthly or they pay for the term? Yeah. So that means that they were guaranteed the money anyway, meaning they've been paid for up to the end of the term anyway all right so i think so but my issue is does the agreement speak to while school keeping is it that you can say oh cool we're not having school right now so you have to find the money with your you know

the day-to-day thing usually the thing you do on you know we're not we're not due to give you any money at this time because we don't have any right we don't have normal business going on so i don't know if ue has that going on where they have to be paying them or not but that was my point meaning that even if ue doesn't have that agreement in it um the 130 student living would have been paid the money for the term anyway i know you we had some refunds i'm not sure about what i'm not sure that one three eight we're doing the same and that's the research that people can give us i'll leave that one and call that one home where people can so my my my projection on 138 student living is is um predicated on whether or not it's very dependent on

if they get no money are they still do money then why them good if not then rough yeah i don't know if because here's what i think right forget let's say there was no coronavirus around right now um and uh actually we can actually pause right here because we do have a listener on all right so then i what i figure just in case we need to find out i figure the best way for us to find is to ask somebody who's there so i have asked a ue student to answer us and the answer is hello ue student what's the answer so when um when the whole incident started and you the university told all residing students that they had to leave there was a big issue with the 138 students because while persons who resided on traditional

halls rex taylor um chancellor sequel etc were told that you know there would be some form of refunds given the 138 halls were not having that um there was there's no there's no refund sorry just for my clarity there's no just for my clarity there's no refunds being given to people under 138 halls but the rest not that we know of right now they are still in discussion with it there was even an issue with getting persons to come and collect their things um emails were sent out saying that persons had breached their contract um even though it was the university who had sent students home yeah the whole 138 ue thing was a huge was it was yeah for about a week a week and a half it was a lot of back and forth between the

guild and the university and the 138 people so i'm still not even sure what the um what the solution is or what they had decided to do i do know that students were able to come and collect their stuff but i don't know how how the refund will work if there will be any refund i only know that there will be refunds issued to the other students who live on Hall. We're not sure about 138. Are you a 138 student? No. Oh, I thought you were on a 138 Hall.

No, no, no. Oh, no. Fake news. I guess not. But thank you for that. So if I have it right, then they're probably just not going to give them back. But you said the non-hall people actually got their refunds already

or you is promising a refund? We haven't gotten our refunds yet, but refunds have been promised to students. Well, refunds for finalizing students and the students who would be going back, they want to either roll it over to the following year or allow them to transfer those hall funds for all the time after March 31st. So for April and May, those hall funds would be able to be transferred to your tuition if you have outstanding tuition to be paid, etc. Okay. All right. All all right thank you very much

all right that nice i guess we get that update there very very quickly um ah so you all right so first things i want i want to preface this with something else and because people might think it's yeah this is the reality of business right where you it's a terrible situation sorry then i go ahead or you don't i don't sometimes the collecting the money we step on some fields yeah so that's i just want to say that don't think that we're being heartless guys we're not being heartless we understand it's a rough situation having said that we're going back to the business it sounds good to me tonight it's so like it's all like 138 student living is not

let it go any money yeah and you know what i like if so yui has to pay then for two months to 138 student living i see we're assuming here we don't know so assuming that they have to pay those two months up to 90 percent and they'll give back that money at all which would be good because then it doesn't cost them to do it but in the event that they do have to give some back um if they can also just give some back to the regular non-138 student living people, then that allows you to have some money, some cash in hand to pay over to 130th student living. Assume that they still have the agreement for the 90%. No, that stops at the end of the term anyway.

So that would be May, end of May. And at that point, 138 Student Living would have been doing short-term rentals to make up for the summer break. Yeah. Yeah. Because Airbnb, they didn't have a show too.

Yeah. Wow, wow, wow, wow. So 138 Student Living1 but then you know timing that's what good investments are about timing you decide on your timelines you don't have to be a company longer than you think you should be

you decide your timelines you decide when you're in and when you're out yeah if you check the everyman can start calendar which is in the show notes even though everybody asked me about it i'll pause here to talk about it since i know people gonna ask me and tell me about it anyway i have set up a link just because so many people ask me guys if you're listening to this and you want to know about every michael stock calendar and on every michael stock

calendar we have um the dates for agms the dates when, the dates when results are due to come out or if there are any postponements we put it in, if there's any delays. Interesting things. We put interesting things on the local financial calendar. Myself, I put on the other day Simon Stocks on the Rocks event. Even though it was a stream, I put that on it um i put the

dates and i'm going to have grow on it and even if you're not interested in any of those things you just want to know about the stock stuff that's also on the calendar it's a google calendar it's integrated your google calendar or any other calendar that you might any other calendar app that you might have and the link to get to it so you don't have to d Randy or Danai right now. The link to get to it, if you listen to this and you want it, is evermickel.com slash T-E-S-T-C-A-L. That's T-E-S-T-C-A-L. All right? Boom.

No. If you care about it, Danai, why I said all of that was we can actually work out timings because it means that let's assume that 138 student living has their money at least up to the end of may so that i had to cover june july august out of summer stuff um and an airbnb dead but that but but depending on how 138 student living does their quarters they may not have to they won't be reporting that for a long time anyway they won't be reporting that until maybe earliest maybe september and if it's a year in for them i don't have when the urine is off the top of my head but if it's a year and it's even further

which means that if people think that 138 student living is bad and they're going to face hard times and i sell it down it's at seven dollars now with a p e ratio of 11.9 times if i sell it down then you might actually be able to buy it up if you think it's a great deal buy it off for lower than this and when they actually put out a surprise this would be an earning surprise then because people might expect them to be down when they're actually going to be reporting earlier stuff which is up. So there could be a win there. Woo! That's how we feel about 138.

Anything else you care to say about it? The money that they were supposed to be collecting for the rest of this year is going straight down. I'm just fine. In there. supposed to be collecting for the rest of this year going straight down the road. Additionally, they're going da-da-da-da-da. Hold on, I'm just trying to... Are in there...

Have their... Last results? Yeah, their last results open. I'm going to start looking for the results. It's when you set it up. So this result was positively impacted by a variation claim for 2019. First, 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub.

Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub.

Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of urban hub. Addressing 42020 claim relating to the construction of for 2019 because of the first quarter 2020 claim relating to the construction of urban hub addressing for both variation claims the group recorded first profit first quarter profit accounts to 33 million the claim but the important part i read a lot of just to read the last sign the claim for the full 2019 year is a one-off term while the claim for 2020 is expected to occur each quarter of the current financial year so you one-off term while the claim for 2020 is expected to occur each quarter of the current financial year so you still have some money for them going straight back into this

2020. wow did they sorry i i missed a little piece of that did they say whether or not um did they say whether or not whether or not Did they say whether or not... Whether or not... Did they say when they're paying it? Did they say how it's being paid? They said while the claim wasn't being paid. They expected to occur each quarter for the current financial year.

So, no, really. So, it seemed like it was a quarterly payment. And they haven't quantified the exact amount. Well, you know, it means that there's some money coming to them somehow, right? More money, more life, yeah. Yeah. Wow. So, I was going to ask you how you feel about it.

Well, how you feel about it but well how you feel about it Danai? To me it sounds like they should be fine for at least this year going down outside of the fall off in short term rentals but I'm not sure that that was, I don't think it was the biggest money, the plan was that it would be growing short term rentals to cover

to reach a position where it's too it's good very good money for them welcome the money coming from the regular uber rentals so to me they're safe their strongest money should be fine yeah yeah. I'm with you there. As I see... Meeting last year. Exactly. As I see it, as long as the new agreement still has you covering income

up to a certain level, they should be fine. And the fact that this happened mid-term means they're likely fine anyway, because there's likely money already paid over for it. And unless it turns out that the 130 student living students are paying monthly, but I don't think they were. I do not know. So those are the ifs that I'd find out. And yeah, I think as long as they don't have to worry about, they should be good until it's time for them to report a summer quarter.

That's my back of the envelope thing. Boom. One down, 87 to go. Guys, we might not be good at D play on all of them. So don't expect that too much. Next up is 1834 investments. Of course, we can have one that's going deep. 1834 Investments.

What are they? Because people don't even know what they are. Most people don't even know what 1834 Investments is. It's an investment company that owns the property of the cleaner building,

I believe. Yeah, and other investments, no? Yeah. Or is it just the real estate? The real estate investment, it would be that. All right. See, I'm doing the wrong thing. I should be checking.

Right. Right. As you said, I got to make sure I try and not buck up in the same problem by just checking the one that's coming next. 1834. 1834 investments. While you're looking, I'll just fill in by making people know.

So what happened, guys, is that when Gleaner merged with the RJR group, they split off some of the things that they did not want to merge. So if you own Gleaner shares from a long time, if your parents buy it from a long time, you inherit it, whatever, you own shares in 1834 also, because you would have been given shares in 1834 investments when that merger and split off happened. And what is in 1834 at a very top level, me saying it is the assets that they did not want to put into the RJR group, which included, I think, the property as Danai was just saying.

Yeah, which included the actual property that the company sits on. I have that right, Danai? Yeah. Yeah. So if that is true, it would mean that they make money from some of the revenue comes from just as far as Glina exists, right? So company identification, you're saying, Danai? Yeah, so they have something there.

They're looking at the portfolio statement, the portfolio summary for 2019. They have most, almost everything in real estate, cash on structure and instruments at 30%, bond 16, equity 6, and they have some loans, 2% of the portfolio, which is 22,000 Jamaican dollars.

22 million, sorry. 22 million, sorry, and they say and they said that they're they put it for that their principal um invest their group's principal activities are the management of real estate and other investments and they have two subsidiaries well they have one subsidiary if you want to be technical i have one subsidiary selector publications limited which doesn't is dormant it doesn't really do anything and the other one real estate investment the jamaica joint best venture investment company yeah which is a 50 venture between them and who just as you know it's money this in a brother what we're doing now is that

is money for people you know yeah i was thinking that the saliva yeah that yeah we might be a little light on this guys we're good we're happy we're kind but we're not full yeah so the thing there jamaica joint best venture is a holding company for two commercial real estate investments at 34 and 40 newt street what's that 40 your company is a 53rd person joint venture point with japan is real estate in this real estate holding company. So, that's why. Well, I mean,

we don't have to go too deep in that. That was me doing. I won't kill time. Actually, I'm reading. Yeah, it's a rabbit hole. But they do real estate.

They do investments. That's what we can tell right off the bat. And they have a hell of an investment portfolio. I think a few years ago, it was over 1.8 billion. And it had a lot of real estate in it. How do they know that F a country based a boring company not necessarily not because of the company itself but because you know there's a return coming from this but actually really want to look into it more now not not for a return for the interest yeah me too. That 50% was very

like I can tell it's a thread that I know I'm going to have to follow. I can tell you that what it actually is, it's a company called Popular Printers Limited. Yeah, that's who owns the other 50% of that venture,

which we can talk about that when we're not on the episode. We can talk about that another time. But yeah. And that company was dissolved. That's so strange because that company was dissolved in 2019. The more I look at this, the more interesting it is to me boy huh yeah yeah you know we are solved in march last year we want to indefinitely say that you know people going to want to what in depth on this because that's true guys speak to your licensed financial advisor which neither than i nor myself are we're

not giving investment advice on this show although you will hear us talk about buying things and if we would buy things or buy this don't buy that but that is just how we speak that's a natural part of our conversation don't ever confuse that phrase for actual investment advice neither was our investment advisor and this is not an investment advice which just show we're not carrying out investment advisory business boom then i just keep both of us out of jail yep yeah if you if you definitely want to go jail these days it seems all you have to do is good dancehall music which neither of us do you hear that you hear that you hear the tune by my brother um yeah brother the tune bad enough brother man you before i drop it really literally you know

i feel bad i don't say jamaica is a terrible place with crime and it warped our minds and because i listened to it all right first of all I listen to that trap Maybe 40 times Playing in the background I was doing something And I realized It's not a nine And two words And bad

It's edgy enough Where you know You're not supposed To be saying that But the truth is That's one reason why Mankind I kill

Yeah I'm joking there guys Don't I cannot Take the cancelling I mean I can I don't care But it

It's such a good song I was like yo I like one I mean I can't I don't care but it it's such a good song I was like yo a little one murder I really that way I put him in a jail for yeah yeah

with the song yes with the song he is he is because I get the tongue in cheek nature yeah why yes please don't poison nobody ladies please song yes with the song he is he is because i get the tongue in cheek nature

yeah why yes please don't poison nobody ladies please please let's not do this oh they'll say it's dexter even forward back i finished the two the two bad boy yeah yeah yeah or make him record it and then and then you know i don't think he's in i don't think he's in the same prison facility as the usual channels but yeah the two bad man um i don't remember where we're going now. 1834. 1834. Yeah. 1834 is, so it's a company that really makes a lot of its money from real estate and other investments.

And yeah, it's boring, boring in air boring in air quotes guys no company is boring to it's interesting to everybody somebody out there but to me at least i find real estate companies that all that their real estate isn't necessarily active um to be kind of boring the two most exciting real estate companies for me are pulse and first rock okay i was hoping you'd say first rock that's the same for me yeah yeah because first rock is the disruption in the industry yep and they're doing more than just real estate so when i remember when i first heard of them they had mentioned that they wanted to go into real estate and actual private and private equity. And then when a little while after, I just stopped hearing about real estate.

And somebody said to me, in Jamaica, when we talk about private equity, companies that come and sell private equity and then just finally go into the usual real estate. Find a place. And it is private equity and then just finally going to the usual real estate. Find a place. It is private equity. You're owning equity in a private company, sure, but it's not very interesting. You're not really helping the growth of the economy in the way that private equity companies usually do. Find a company, make it a gem, capitalize it, and make some money.

And the country and the company do better. Cool. is actually going into private equity yes yes so right yeah i mean they bought they bought dollar financial financial yes they bought a moderate stake in it yeah nobody said anything too much for that and off off the top of my head, I was trying to remember. NCB used to own dollar. Nice, you said. Huh. We'll look that up when we get to that. It was sold twice. Dollar was sold twice.

I mean, don't kill yourself looking it up yet. All right, look it up and leave it on our tab. We'll come to it for NCB. But 1834. I think they did something interesting the other day. They did something interesting the other day in that they had some other

investment that they took on. I can't remember off the top of my head. But what's earnings for them usually like? Actually actually i was looking at it just now yeah so earnings are usually stable to boy what's happening right now because last year nine months december 2018 this is the nine months they're making a loss so eps was negative $4.92.

Ouch. Or nine months is the same, but this year, 2019, it's $1.08. So they're back in profitability. And they have a PE at $0.90, which is what they closed at today. They have a PE ratio of 13.9 times. Yeah. Interestingly, if you look at the thing there, they audited March 2019. So comparing the nine months to the year,

you're sure the PE is right? No, because I'm using a certain broker's PE listing. I won't say the broker name, no, but I would really like to think it's right. 13.94 and not because I've seen errors on it before. Not usually, but I have seen errors before. It looks to me

that they're March 2019. Let me just check it. March 2019. 18.24. 2019? Let me just check it. March 2019, 1824. No, not that March 2019.

You're not looking at the annual numbers? And then the December numbers? December is what quarter for them? Their third quarter. Their year ends in March, so December will be their third quarter. So I'm looking... Alright, so what's happening here? What do you mean? I'm looking at results. I'm seeing audited

March 2019 in December 31 print okay makes okay yeah so so they're marching to 19 last year right now the fourth quarter last year right would have been ended March 2019 right mm-hmm yeah man I'm I'm agreeing with you yeah man I was checking the thing and then and then nine months and then nine months was December 2019 then so yeah from to december so they're a nice the profit the profit they had a probably profitable 2019 on march 2019 that last quarter last year they made some good profit ah we saved the entire company because up to their nine month mark last year they had

negative 5.92 cents at the end of the year four sorry 4.92 yeah at the end of the year sorry 4.92 yeah at the end of the year 46 cents yeah so yeah so it's like that one quarter made them profitable so i'm not sure if you look at the thing there you look at that's only there was a one off i believe because i'm wondering right as i'm checking up right now i'm running that in my head it looks like that yeah so there would have been one of us in the last quarter 50 cents 50.9 cents jamaican sense remember you can see here man that i want to you see the profit on liquidation so see there is that line so that i lost on it up until december 2018 and then in march so 24 000 24 million loss at a nine month mark last year at the year end mark it was 58 million so

year end mark it was $58 million. So yeah, that whole, so in that one quarter they had over around $88 million profit in that one quarter, profit on liquidation subsidiaries. So I'm not sure that this, I don't expect it to happen again, but I'll have to check what exactly it was and see what's going on. But to their credit, in the nine-month results up to December 2019, they were still running a profit. They were still operating profit also, so they were making actual profit. But I'm not going to go as deep into this right now as interesting as it is yeah um yeah and and i can say that to say that that's how i feel about it unless if they can keep the profit performance up from whatever it is that's feeding it um then hey it's cool i mean real estate companies are great for the long term and the long term here in my view is like a great over five or more years and five is a very short short in terms of long term

so yeah great more like in terms of 1520 yeah long long long long you see they have a whole heap of money or you have a whole heap of patience much like yeah that that last one not that often where where you get that without having the money and patience first quite so quite so well and because i can't help myself much like you okay can't help yourself i still went digging just a little bit to remind myself of what it is so the operating income is 17 million and the operating income comes from investment income rental income and interest on loans yeah and the other income is fx fx differences you know revaluation um and the disposal but like you can't throw something away twice

so and an investment revaluation so property stuff and any forex stuff might help them i mean the dollar the dollar actually spiked quite spike quite everything that happened with corona people have we haven't even been paying attention to the u.s dollar much it's over 140 you know yeah there's some pressure on it so the guy bill jane what they're doing because if two or three two or three payments easy like this would have caused um i think an upward push on the dollar and it's already over 140 yeah cap it god know what's up you know i'm doing i'm smart yeah all right uh so 18 1834 yeah boring they're fine as i say for me over a 15 year

point of view for me again everybody that's not for everybody that's just for me yeah that's all I have how do you feel about them Danai? I think the best what happened the best people

that got it way back at the split. Or whatever controlling interest was there from way back when in this company. If this is the man behind the moves at this point in the company. Or his family or whoever. They're best. One of those companies that you have you have had for years and you develop it from scratch and you're making money from it to this day yeah if you're looking to invest in this and it's not it's not the right nothing in

my mind you're buying this you're holding this for quite a while yeah yeah yeah you know you're really rich are you really popular the thing i say about dividends also apparently people get very angry i don't get why people get so angry and say things like this especially when it's the truth no i think andy that you're speaking about the response you got from whoever that person was i'm not even sure that person was had a problem you talk about events because the joke is you're having what the conversation was around you and smith you want to keep him talking and laughing about dividends this whole

conversation from I know you guys it's the same conversation for years so somehow we're running

a joke and somebody talking about things that have nothing to do with what I'm talking

about so there you go you can't please everybody you can't please everybody but some people

are upset by doing nothing that is true the truth is if somebody wants to vex with you you can't please everybody you can't please everybody but some of you will be upset by doing nothing that is true the truth is if somebody wants to vex with you they'll find a way yeah man nothing's that dead

get up oh boy yeah so I think we can call time at 18.34 I'll call them the official earnings season report on them is boring Yeah, so I think we can call time at 1834. I call them the official earnings season report and then it's boring. The next up would be access financial services, something that was very popular last year because proven increase the liquidity of them by selling half the state how much did i say

yeah man quite a few shares because proven was the proven owned majority of all that i know much yeah enough they own as much as big bastard or if not more a little bit more a little more if not more a little bit more a little more i think or more so whichever you get it um but no there are no there are no minority and the majority i think based on the last set of results we saw the top 10 list that we saw from them the the founder is now over 51 so he never has to worry about somebody else coming in and taking over unless he sells himself below 50% again, which I don't think he will. And that report is which one exactly? That would be... Say that again?

Which one? December 2019, you're talking? Mm-hmm. Yeah. December, is it? I see he owns 47. Does he? I see he owns 4 to 7. Does he? I see Springfield. Oh, yeah.

No, no, no, no, no, no, no, no. He owns some personal. It's my guy. Oh. No, I don't think you reached it yet. So, connected price, he owns $130,000,000. He owns directly $7,000,000. holdings the number one is the number one shareholder which i think is him it's 129 000 129 million sorry and that owns 47 percent

of the company okay okay okay the 130 wouldn't put him, 130, the 1 million more shares wouldn't put him at 50. So he, but he's still moderating strongly to take a good amount of money to buy above him for anybody to hear

to beat him out. Because Proven is second at 24 million. Yes. And Proven, Proven would have monetized the stake also very smartly, right? You remember what the sale price was?

38. 38? It's 38? Are you confusing it with JMB? Yes, JMB, though. Yeah, JMB was a 38.75, but I think the access share sale last year in 2019, they sold it for, and they being access financial here, oh, sorry, they being is $32. Proven sold 68.6 million shares at $32 per share. Very smart move.

And I can say that now that it was a very smart move. Yes. Because it is currently trading at $24.5. Yep. Good time to go. Great time to go. Great time to go. And I think if you think,

I don't know if we said it on the show. I think we did. But it's not. I mean, we knew that the fact that they were bringing liquidity to it and the fact that i don't think access oh yes very hot it it was almost inevitable that it would it would trend down in my view at least they would need some strong numbers are cool to maintain this. You are dreaming baby. Yes. So. Yes. So yeah, so. So what's expected? Yeah, so it's now, it has lost 23 and a half percent

of its value in that time. So 23.5% of the value gone in that time. And smart for them, in other words, they sold high. They sold high and a lot of other people bought low uh including qwi yeah way way right so so so as it is now i mean access you just said it the same situation exists they're the first company to go on the junior stock exchange uh so the 10-year tax break is up they now have to pay full taxation back to the government and the business itself is not necessarily in the strong not i shouldn't say that because people misunderstand the business is pretty strong but in terms of rapid heavy growth

you're not going to see the same growth now that you would have seen over the last 10 years unless something magical happened and even though they have they've owned other companies they have been expanding the owner a small loans business in florida um it's a good business a strong business but i don't see it necessarily as an expanding business they'll need some exposure something yeah something huge would happen i mean corona might be that thing you know yeah and the microcredit bill becoming an act might help them. We spoke about this earlier, driving some of the people that can't really match up to the regulation. They might just buy the business from them.

Buy the loan book or just buy the company itself. Put them under the umbrella. Expand their network. But that more specifically isn't a quick exposure neither so it takes some time well i mean if you acquire if you if you reply to me if i have a big enough players with some strong clients then sure but the one one thing where this small loans company westmoreland this one in saintly he applied at one time to get all the money one time you know what i'm saying that's true yeah yeah yeah yeah that's true and then those ones don't necessarily have the risk access risk appetite is lower than it's also the others in the market access reloads business to business like planning to established people like a farmer or somebody with an actual business that needs money.

No regular man on the street that say he wants to loan on him. He don't have anything for him. He just want the money. Why? He's not working. He must have an lawsuit. That is his reason, I'm not sure that access will take everybody in that market,

which will create a market for somebody else who is formal to go outside that, we shall see. But yeah, I agree with you, access not necessarily will go up right now. Yeah, I mean, the current have a PE ratio of 25 times, I think, if7 times and this is when they're at 2450 right no when it's down and it's down and when the market was before the market fall out 25 was a thing that was a was market PE pretty much but even then and when they were at

30 whatever because when they when they were selling for 32 the share price was higher yeah and they

they still imagine how the PE ratio was like then yeah so that liquidity thing was a really exactly it's one of the

things that the economists will tell you about supply and demand all the time. Things in short supply will sell for a higher price. A PE is a good indication. PE is actually a price on the value you're paying for something. The price you're paying for the profits of the company.

So if something is in less demand, then they kind of will expect to buy it higher. So you understand why lower liquidity companies are higher PEs exactly yeah PEs how much i described it once as how much you're paying for how much per dollar you're paying for previous earnings and of course expected future earnings. Yes. Yeah, I don't think the person understood though.

They're like, no, that's not what it is. But it's just if you understand the concept of it. Yeah, exactly. I just want to introduce you to if you know about that. I'm not like this. That's me. I mean, I'm a Muslim. I'm sorry.

So yes. that i'm not like this that's me that's not i mean i'm asking i'm sorry so yes um don't finish it hold on uh yeah so so access um i don't see them doing anything great unless they have some huge thing coming that i haven't been aware of um and that's a possibility because i haven't done a deep dive on them in a little bit but um yeah i'm not too excited i think they're over i think they might still have some falling to come but i realize i could be incorrect because some of the brokers do expect them to have some large profit pretty soon

oh wait what what yeah yeah but i i i maybe you got reading in my research i have a look at it i can't read it to be honest i think there's some question about that access yeah you know what it would be let me not let me how i see it is it must be an expectation of something grand from and i don't think so because i haven't done the research yet but as far as i remember i i um don't i don't see anything necessarily great happening for them that would justify it being so good that not only is it going to grow not only is it going to grow overall or it's it's going to grow so hugely that that growth involves them also paying the full tax and still growing. Yeah.

Yeah. So I can't see. I can't see. I can't see i can't see um i can't see i can't see them going to that level so as far as i'm concerned they're kind of they're kind of um they're they're kind of overvalued and i don't see any better for them just yet but i could be wrong apparently some houses seem to think they're good but pe ratio of 25.7 times currently the price of 24.5 times um i mean it okay okay uh i will be spending a long time let's see if something else you want to say about him next up is amg paper and packaging the saltest people in the world yo packaging the saltest people in the world yo you know what and i saw when i saw so amg paper packaging

just shut down them finally shut down them toilet paper factory it don't make sense it don't make sense the market just isn't there and then boom out of the blue one time everybody start by tissue and the man them the man they must man they must hurt you know start by tissue and the man they must hurt. Jamaica, mother is laughing to me and said, we used to love the scat tissue people. In Jamaica,

we used to love scat tissue. And we can't get none until we send in America tissue. And these guys just don't have it. I're not that rough you know it no man it's it it painful man i know that pain because that pain to me reminds me of like when you know you sell a stock and after you sell it boom it fly i think it must be the same thing

wow but yeah yeah yeah and smithy on top i'm game for the last couple months you know so mario yeah man he's in awe it's that it's not happening to him where your the problem is not happening immediately that's what's up good things I think I'll start applying the teachings and just start

make some money too anyway because 50 years as you said but yeah AMG paper and packaging the man didn't jump out of one business line

and Jano look how it cost them when them said I'm not going to when they were very iffy on the paper packaging on the thing there the cardboard box or whatever packaging out in the plastic and

styrofoam and then they spoke late to say well we might go in we might actually go into it they're considering considering and then this type of boom and then missing him around the world around the world not just here, not just Jamaica that rough man yeah that rough on them but outside of that

well as we said the business is doing okay the business is doing okay i mean the business was doing okay uh-huh uh still have still still i can't see where they're selling packaging so i think they should be fine yeah and the price today 1.8 1.8 cents 1.80 $1.80 and that gives them a PE ratio of 16 times 16.01 times but I mean it would have been so good

to see them doing something doing something wonderful on the market it would be wonderful to see them enjoy it'd be wonderful to see them enjoy that it'd be wonderful to have them be one of the success stories of the corona imagine you got that report jamaica it would have been it would have been especially yeah but

and i would feel bad now because i don't think i own any shares in them now i do not own any shares in them currently and um i i it would have hurt me i'd be like oh god look how these guys in all right apart just jump in but yeah but no the bad them the bad them out there no and um their latest financials their latest financials uh their year ends in they have a weird year in their first quarter ended in november yeah so they they actually uh their second quarter then ends it actually their second quarter then ends December, January, February

so their first quarter should be reported already right they should have reported it already are they late because of the corona yeah and a lot of companies are late because of it

I guess some of the auditors have i can understand that i can they might have staff in the office where i think they can meet with our accountant around to the record yeah yeah yeah and it's not just it's not just accountants yeah it's it's regular staff i'm ready to tell him about his experience big up chase his experience thing there working at the audit firm he's not because i'll go account and i'll tell him something good nope sent him out of office to check the inventory and stuff for the company at all the warehouses and you must have a count off i can't laugh i did that for years as an auditor too so i did that for years so i know but i never had to do it as well yeah same thing beside auditor them when them come

them question you know you're going to the back of the storeroom and sometimes and then the funny thing is you know the rule is that you do have to verify for yourself it don't mean obviously you have to count every single unit yourself but in my case like sometimes it means say i have to randomly pick one after i have to see after at least see all of them myself and occasionally just randomly pick one and tell them to open it so you know you you verify that what them says in the box is actually in the box, which means that sometimes the back of the old warehouse, the dust-off power, them say, oh, we have 1,000 over there.

So I forgot to see the 1,000 myself, count it myself, and then randomly pick one for open. And then you can tell when the employee vex them, say, it's all right, them just leave you in there. Yeah, so it is quite the trip as an auditor sometimes it can be fun sometimes it's terrible uh amg paper and packaging yeah you're saying something that i yeah you will learn about companies oh yeah i Long after, years later, things that I never even realized I learned, I learned as a result of that.

Very thankful for that experience. So the last financials that I'm looking at had them with growing revenue, not by much, 2018, same period last year for 2018. I'm looking at their year-end numbers by the way not the quarterly numbers so wait yes but they have all no so that was in november 2019. that the november 2019 quarterly numbers yeah all right so the November 20, we can use that. The November 2019 quarterly numbers have them ending the quarter with 191. Wait,

the results aren't delayed. Oh my. The results aren't delayed? February. February. Oh, it's February. Yes,

February. And it would have been due. Yeah. It would have been due in April. Yeah. So it's delayed. So the Q1 numbers have them at 191.59 call it.6

191.6 million Jamaican in revenue and their profit is they still have discontinued operations they're still doing that split out so the total profit was 14.5 million versus versus um

last year yeah they had 16.5 so things not that great yeah it's not terrible but it's not that great and they talk about um they got approval for like doing a construction kind of doing so they were um trying to set up a factory yeah a new space yeah and and that is around the the paper bags surrounding paper bags i have it right is that what that factory is for you know i'm not sure there i think it's increased production on the already existing lines i'm not sure they're doing paper bags again remember they said they're considering it then what is the factory for? Just general production? Yeah. Okay, you know, companies might say that and then actually do things they might be doing.

So, let's hope. Yeah, quite so. Quite so. So, they manufacture and sell printed and plain cardboard boxes. That is what they officially do. Yeah. Oh, well. um so with all of that said

mg i mean they're trucking along they're not doing that great they're not they're not doing super duper stuff you know at least they're not in the last time yeah right yeah at least toilet paper not dragging them down during this time again i also have to say there Yeah, at least Tolly Paper not dragging them down during this time. Again, I also have to say, there's no at least they're not making profit from Black Paper. Yes. You get me? There's no way you can say

at least they're not making profit from Black Paper. Yeah. They're not making profit from Black Paper either. That's an opportunity because getting out of the business

at the wrong time. Yep. Oh, well. I'm sure we can't we can't buy more than they're balling right now because i'm sure they say again somebody we don't own the shares there are people that own quite a bit and then balling more than we are so indeed yeah oh well uh so amg i'll brush it off I'm not very happy about them I don't think they're doing that great either

so next up is Barita my dark horse for the year who would have told me if I said that yeah who would have told me if I said that the dark card is down i know there's somebody who's saying

boy look at him go talk and whatever and say whatever and he's wrong you get me? everything that's going on right now to say Randy did wrong right? everything that's going on right now to say Randy did wrong right

on a more important point I don't have to go ahead for anybody who thought I was wrong for saying that but on a more important point Barita is not included in the BOJ mandate right yes because they're not a part of

they're not an FHC I ask that because they're not a part of it. They're not an FHC. They're not. I accept, but are you sure? Because they're under the cornerstone. FHC is the wider group. So the owning people, the people that own whatever inside. If they,

if the group, so where I sit, if there are group-wide efforts, we're not going to pay dividends for that to reach that. But the thing is, I look on it this way too. If the subsidiaries within the group don't pay dividends, the FAC itself won't be able to touch that cash. touch that cash um so say a thing there say ncb cap markets doesn't pay dividends to the ncb fg how would ncb fg can't really touch thing that ncb can't really get the money can't get the

money from cap markets well not necessarily because i think i don't know if i don't know if that's hard and fast you know you see how you can move around debt within a group? Can you move around assets the same way? No, sir. That's it, sir. Cool. VMIL, right? VMIL is owned by VMBS.

Modernity owned by VMBS. VMBS would be the DTI slash... The VMBase itself is the political institution in the group, right? But they're also the financial holding company for the group as they own the other pieces of the group, right?

Following me? Yeah, yeah, yeah, man. I'm following you quite clearly. VMIL has shareholders other than VMBase VMBase can give you self preference and say let me take VMIL's cash and move it around

I can't pay out my cash to you only so how will VMIL get VMBase get VMIL's cash without other shareholders getting cash from VMI L's they just put a lease on

kiln 5 stocks nerd joke that is a great method actually. It is actually the most practiced method. So you can do it through the expense line, but you are correcting your line. What I'm saying is BOJ would not be. It would be a sensible move on BOJ's part.

You hear me? To put a liability. Some of our burden on VM I help be paid back by VM base if the real ones don't all the money into the group that's that's 100% correct so I see the logic there um so my thinking was just that if it if it stopped the financial holding company then it might freeze everybody within that that group um but I don't know that to be so and that is speculation i'm going to agree with you

and say it's not it so we say that to say that barita is perfectly fine in terms of paying a dividend and they're perfectly fine to pay a dividend and they're currently at 53.05 and that gives them a pe ratio of 20.77 times or 20.8 times uh continue to think that they're my dark horse i continue to be excited about them for this year even with i'm not sure i'm going to take whatever line though they're going to fight if they ever been creative with making money i'm not sure that they'll so say never mind. Exactly. Exactly. Exactly. And I personally have seen a couple of moves that they've been making since the start of the year.

Before and during Corona. Yeah. Before and during Corona. So those guys are hungry. I respect a lot of what I've seen coming out of them. I like them. Continue to like them at $53. And obviously, if I thought they were my dark horse and I'd be buying them at $70, buying them at $60, obviously I'm going to still be

buying them at $50. It's a great averaging down opportunity. So I like Barita. Next up, we have B-Po, Blue Power Group. Blue Power Group. Blue Power Group. The guys who own do they own

or are they used to they used to they do own they own some yes they own some yeah but they were the guys that were

that had them under their umbrella fully and gave gave it away and bought it back yeah bought back some

some yeah but yes and thankfully gave us regular people some yeah but yes and thankfully gave us regular people some yeah interestingly carbonic is made by blue power okay yes blue pause is strong demand for carbonic soap so now that well this is a recent article yeah oh wow keep going I'm

missing they do sell more than cabal so but I think so much art for it in whatever other businesses definitely be covered by this but people see that watch those not when to be honest they're not going to work as often so I'm sure in my household we're washing less

clothes nowadays because boy the work clothes not but yeah but they have spoken and said

that the car body sources specifically are seen on optic people buy it because it's really

quote unquote medical so doctors use it heavily people People buy it because it's really quote-unquote medical, so doctors use it heavily. People be buying it because they know, say, boy, this can clean and you need to wash your hands and scrub it for 20 seconds at a time. Carbide could be a good one. Right now, Carbide is selling heavily

from Uber Group. So this article speaks to that. Alright. Share that article for me and I will have it in the show notes. So share it with me and I'll put it right in. There you go, sir. Thank you very much. I see you share that.

I see you share another link with me to saying that East Japanese East Japanese East Japanese group is no longer by marketplace. Yeah. Yeah. I didn't think it would bother me that much. It really does bother me.

I didn't realize how much I like the food. We ran into a booty friend. Back to KFC, which I hear is supposed to be cancelled these days because they laid off people. Because companies do things for people other than the owners

of the companies. That's what people say. Right. I want somebody to think what they need to do with their company. Because some people why am I doing this myself what a line I've heard

KFC depends on the welfare of Jamaican citizens welfare and support of Jamaican citizens now you tell me brother KFC depends on the welfare of Jamaican citizens like for people to eat the food and Now, you tell me, brother. KFC depends on the welfare of Jamaican citizens? Or people like the food and buy there? You tell me. You know what?

Are we buying KFC as a charity case? Exactly. We need some money when we give them some. No, you like the food and you buy it. Stop trying to twist it into a way KFC is a heavy part of our culture at this point or whatever we can't get up and tell the people say whatever is going on with the company you don't know what's

happening in the company so the company not okay is profitable heavily because not kit you know you know what you do know is case a lot of is that has high revenue because whatever you don't know profits there and it's a work day if you work there you're talking in business but to be talking like that that's entitled to say boy jamaica deserve certain things from kc because you like kfc and buy food there nine hours right actually you know what let me let me let me play devil's advocate and say yeah i don't even want to play devil's advocate for years jamaican companies do this thing where they talk about they bring the people in they talk about being good corporate citizens and how i love jamaica blah blah blah and not that they don't obviously you do if you make a lot how much of your money here but you hit the nail on the head

when you talk about revenue and jamaica and our financial illiteracy spans more than just stocks. Financial literacy don't speak to just stocks. It's understanding the business. But one thing I know for a fact Jamaican people illiterate with is the understanding difference between revenue and profit. Brother, so you make $2 billion. All the Jamaicans here is two billion dollars but my bills were 1.99999 billion um they don't they don't they don't hear that part

yeah but two billion something musk can't live out of it yeah but we know exactly how much was left out of it i don't actually have that much but we don't see that. I think this KFC example is a great example of it. Worse, we judge things on a very visual way. So, you might have a big car, indefinitely rich. She just buy a house, she must have money. You know, when you're a big man with a big

work and you have a big company, let me see, a newspaper, which one of those things means that I made a lot of money? That's how people think. And that's what happened with KFC. So, we hear, so they make a lot of money that's how people that's how people think right and that's how much kfc so we hear so they make up a money to check their website you hear them say um biggest earner in the caribbean i think um and for years we've been there and even now in the corona time everybody's talking about how you know the lines long up the last friday i saw a video saying say the cure must in a KFC because the line, the drive-through line huge and go to the road and so they can't understand

why they would lay people off. Let's bring it to business. They have enough people in the stores to run let's say two eighthour shifts. And that includes people that go inside. I haven't seen an empty KFC other than when they said nobody's allowed to come inside because of coronavirus. Otherwise, every KFC used to be packed. But now, the drive-thru is still packed, maybe even more packed.

But we don't have that heavy walk-through buy that they're used to, which means that they very likely are looking at a revenue drop. Oh, definitely. How about them opening hours? Exactly. Them opening hours edited in some places, them lockdown. See, Catherine, nobody. Exactly.

They're one in Portmore, drive-through only, and then when curfew starts, curfew starts. That's it, right? Now, I am just surprised that KFC now sees the value of all their opening hours, and that's what I'm hoping that they'll see. I know that they've embraced delivery, so that's good. But obviously, if you're cooking in a kitchen to deliver, all you need is the delivery people and the kitchen staff. You don't need as much front line staff as you know, which is why they must be line staff, pay them money.

Yeah. And it's good if companies can do that. It's great for companies. If we can do it, do it. I'm not saying you shouldn't. But go get up and tell them that they must because you buy them food as a charity case. Exactly.

We've been lied to for years with the thinking that, that, that, that, that a company that makes a lot of money in Jamaica or any country and does great must always act like a charity. Like there's good corporate citizenship, but yeah, it's good corporate citizenship, but

they don't exist. For you. They get the money and say, well, you like chicken, and I'm going to sell chicken that you like. If you don't like them, let's see. Because the truth is, i learned something from earlier this year last year that i will never forget that rat incident has taught me fully that nothing

will get me to stop eating i'm just gonna be straight up i'm not gonna be canceling i've eaten since and i never even thought about rats right? me personally, I mean sometimes it actually makes me even feel sick but all it means is I don't eat it all the time that's all it means I'm not going to ever stop doing that

it really is a cultural thing it really is a cultural thing I can understand both sides of the argument, but I understand that only one side is making sense because, and why I'm saying that is because before people say, oh, these guys are blind. If they keep operations

going at full price and pay people, especially people at our home, but pay people any way, which we would love to have happen, right? But if they keep doing that, it could actually mean that we would enjoy them while we read it on twitter and ig and we feel good and then we wonder in a couple of months why them said that them closing down all right because a company can lose money very very quickly yeah that cash flow game is no joke yeah even if you're only paying your workers um 16 000 for a night rough but it's so it go so it go no having said all of that kfc is not a listed

company so we were actually on blue power yes yes yes so blue power we're saying the soap you Blue Power yes Blue Power we're saying the soap you mentioned the article with yeah and Carbalic is also a cultural thing for Jamaica right Carbalic born come see it so we're seeing the heavy uptick

from Carbalic we're seeing the heavy uptick in Blue Power well are we seeing a heavy uptick in in blue power uh well are we seeing a heavy uptick in blue power my interesting line is however overall soap sales remain at year over year levels hmm which you which i'm going to take to mean that they're that them kind of drop yeah yeah yeah yeah if it was a head they would have said it. And I think the way they might get me, if you look at the thing there, just think about it. Year over year, they're selling more of one soap.

Overall, let's vote them. We sell, I'm going to say a month or so, but we sell last year, sure. We're selling more of one soap. So the rest of us, something going going on you know so they must drop yeah and we know that because if them sell to the people on even i have had to reassess how much of an impact corona is having now because the soap for people using them at their office just in case they're buying from blue power office so probably not getting used out as much again of course you're using more soap at your house but you had soap at your house anyway

so maybe that's why you're buying more carbolic and less office soap i'm assuming that blue power had office soap uh i think blue power also was was not just beauty soap they going back to the company overall revenue remember that them export you, you know? They export to Ghana. Yeah, so if that is dead now, it might just mean that the carbonic seal is just filling in the space for that. And the optic is because of a certain thing. So I guess optic will be there

as long as Corona is here. Yeah, but they reported, you hope. I also remember the money they get from Lomba yes that is that is a major point that they're getting money from lomba as part of the um management agreement yeah to share share space with lomba uh i think it's 2.5 percent of what is it 2.5 percent of why does that number stick in my head yeah i was hoping you'd say it's up i don't know but whatever it is they get money from lumber every year for sharing space with them and it may or may not be 2.5 or two years you're in fellow property yeah yeah um but up and they reported their nine month

figure up on which under nine months is january 31st 2020 so thankfully they were one of the few people to get the numbers up before Corona profit was down yeah yeah that's not a surprise well the time they're reporting against

hmm but even with those numbers they'll still be down. Yeah. Yeah, they're not helping them. Nothing would help them. In fact, in the first three months, the three months report, not the first three months, but the November, December, January figures is actually a loss.

That's not making any sense to me. Yes, that quarter, yescember january figures is actually a loss that's not making any sense to me yes that quarter yes those three months is actually a loss they made a loss of 7.2 million wow even though revenue increased by a little less than a million jamaican so from 110.2 to 111.02. Well, yeah. The thing is, the culture is countered, though. I mean, admin expenses. So where is the hit coming from is the question, yeah? You say that?

Admin expenses? Admin expenses admin expenses jump compared to 21 million assets yeah looking at it more than double yeah did they say why sorry we'll see well i well i'm actually looking at it right now um they did say lower levels of soap sales in the third quarter coupled with which is the quarter we're talking about coupled with substantial one-off costs of 27 millions incurred in making redundant the non-supervisory staff of the lombard depot division is the explanation for negative results in terms of profits so in other words they had to lay off on their books they had to lay off that's not necessarily striking me as being accurate you know but if they say it i'll take it here we can't talk off here otherwise but in other words

they're saying that they had to lay off people and we know laying off people does actually cost the companies more believe it or not because based on the law they have to pay at least x amount of salary and based on when you work there blah blah blah which is why we've seen that huge jump in admin cost it would appear to be reason for the new jump in admin costs i can think of other things that you can do with a jump like that on your admin costs also and mention this in there but this is what they say in it lower levels of soap sales coupled with um the admin costs the one-off admin costs sorry of 27 million well they tell us how much it is so 27 million and that's sending that's making people the non-supervisory staff redundant is the reason why they said they

had that uh hmm well i mean on the surface it seems clear enough so even though revenue increased as i said and they said low soap sales then um and even though revenue increase gross profit also kind of increase but overall profit is down and admin cost the huge jumping admin costs yeah more than it's more than just 27 because if you add the 27 to last year 21 you get 48 but obviously there are more things are more people hired or what for whatever reason so the difference between the two so the difference between 48 and 58 at 10 million i could see 10 million in increased costs wherever uh how i feel about them for the rest of the year i mean i think they're getting a double hit Plus, they know they're about to graduate to the main market,

meaning full tax time, exactly. So they're going to some full tax. Yeah. I always wonder why companies don't move to the main market. Why don't companies move to the main market? Main market fees more. Ah. So as long as they remain listed

then yeah payback so so they are they're going to list what they're going to have they're well they are sorry they are listed but they're going to have the full tax um and i guess to a little bit of credit we can say that if they finish the year at a loss, which they should not, that would be a huge loss. They should not. Because up to the nine-month mark, they had 44 million, which is low, but not terrible. I don't think they'll end the year strongly either. I think they're going to take a little bit of a hit.

So, Blue Power not looking too good. Wow, we have not gone very fast i suspect this is going to be a very long episode um in fact i don't want it to be too long episode i think it's going to be a multi-part episode so yeah we can do that and i think we should do that so we won't we won't be going for too too long i might still couple if we start speeding yes if we start speeding we'll lose things yeah i don't want to do that so we'll keep going i will try and keep it quick but going so berger how you feel about berger sir what are your faves what are my faves um what are my faves i know he's one of ryan's faves ryan long time has been on so i know he's one of ryan's f. I know he's one of Ryan's faves

from back in the day. I don't know how he feels about it now. Next time we have him on, we can ask him. But as they are now, they're at $13.55. Yep. The most exciting thing I've heard about them recently is that they have a new subsidiary doing some new business or the other, I think.

And that construction still is going on to certain degrees. And that construction is still going on to certain degrees. They still have business going on. Really? Yeah, I mean, they do have some business. You don't have people parking

development when it works. Go for some horror stories stories some corona horror stories from development sites yeah not necessarily corona happening but like

the guy so contractor has his people work going on one day him go the next day and there are no workers man them say them gone home because them here say

the man who cook the food a cough yo you can't laugh in these times boy you can't laugh for that man a cough right now everybody imagine that exactly wow um so so so 1355 today and and 1355 yes 1355 today as in today yeah the argument is that it's female oh yeah oh wow I don't expect it to be great at all yeah is it? no it is not surprise yeah

what we're looking at yeah me too I mean i exited long ago thankfully and and i look at this and i'm happy to see it lower because i feel justified in having jumped out yeah i think the lowest increase of this there's a revenue is 25 25 billion compared to last year's 22.7 billion 2.5 2.5 billion. It's 2.7 billion. 2.5. 2.5 billion.

Compared to last year, it's 2.7 billion, right? So, you say, boy, this job is not good. You're just taking the profit. And then, 29 million profit compared to 173 million profit

last year. Wow. What the hell happened? So, all their margins were not to be that enormous. What the hell happened? And manufacturing expenses are actually down. But they have that

raw material and still changes in inventory of finished goods and work in progress net. That is almost three times higher than it was last year. So it was 34.7 million last year. And it is now 99.992 million. We call it 100 million this year.

So it is way up. You remember that one of the first times we started looking at it as a buy, it was because of a change in that number again didn't it? Yeah but maybe the signals, them taking a hit now for something great coming up because it was the same shifting inventories of finished goods

Well the thing is the shifting inventories of finished goods seem to be better off for them now than last year and then Well no it's higher now isn't it that isn't it that you can't in there no it's an expense oh no the retrofins will just take off this they operated yes yes correct yeah yeah wow yeah hmm i think the bulk of it is in the employee benefits increase and the other other operating expenses they're both things so one by 28 million 20 200 28 million and the other by 13.1 that's big so me from 808 000 other income move from 808 000

to 13.9 million now i like that the move obviously is big but that's a big move to not put a note aside i am looking on their year and i'm looking on the wrong thing let me shut up sorry i'm looking at the wrong thing i Let me shut up. Sorry, I'm looking on the wrong thing. I'm looking at the year end of December 31st 2019. That is incorrect. No, that is correct. No. The operating expenses move from

450 to 550 million. So that's a 65 million dollar jump. Okay, well keep going, keep going. I think I'm'm looking at the wrong file i'll find the right file so well yeah i think the bulk of the thing that came from that expenses on a whole went up to be honest it's manufacturing expenses only one down hmm hmm yeah so am I am I looking at the right

I was looking at the right financials probably their financials are as at December 31st yeah you're looking at other income yes sorry to me that other income as good as it is i don't 13 million i'd like it to be explained nonetheless but you were saying oh i swear you're saying for

the other expenses yeah which also needs to be explained because that's yeah that's just like 50 million dollars there's something in a way i don't really sure i'll probably explain for any financials i haven't gone through in total well there's no there's there's no note beside it and you'd maybe want to list that right that's 65 roughly 65 million dollars more but they have they did they did attach a director statement companies don't often do this yeah not to the fourth quarter or if the result is not saying anything yeah yeah you don't have to unless something's off right but they did this time they did they said that um in september they implemented a new erp which system which is enterprise resource planning which provides a fully integrated manufacturing and financial platform i can tell you having been

through that sort of change myself with other companies that it don't mean i think other than that them them have a new internal system but yeah don't look for don't look for it in the numbers yeah yes yeah they do have a new automotive line. I see them talking about the future and going to the fore. Things that might not be in this is that they have a new focus on retail.

They're going into the retail market with their own paint stores. Yes. Which is metal vertical. Let's hopefully. This generally brings you to which is metal vertical hopefully if done right this generally brings you to less expenses

or metal profits yeah if done right yeah so let's hope that is done right but I'll share that thing.

And I don't know how much of their... I actually do know how much of their money, but I don't know if I'm allowed to say that. But I'm looking for the retail stores being a nice push, and I hope that that continues. Well, it will continue, but I mean, everybody know retail dead now, eh? The way I see it, you don right exactly you read the thing there will go into a spain better better than just stopping at the thing there stopping at a hardware store in general

maybe maybe if at the hardware store somebody might have put you onto a different non-Burj paint right oh and maybe you can maybe you can put a better markup maybe you can put a better markup on your retail sales it's all a matter of i think it would come down to how much of their sales are retail and what the market is how much of this is actually coming from retail so yeah and that that is a question for people to go and dig up I won't tell people that one I don't even know if it's public so

there is that what I will say is that I am not buying Berger anytime soon personally yeah even though some analysts do seem to expect them to have a boost in profits so at 13.55 yep from last year meaning is from last financial year it's supposed to good i know we're looking on

under the results meaning year before last financial year it's supposed to be good last year financial it i think it was good at some point last year. I think I jumped, yeah, we jumped out in 2019. I know they have a PE ratio of 99.11. So you know, it just went bad.

As you can see, they made less than a fifth in profits. They made less than a fifth in profits. Yeah, rough. Rough on them. Boom. All right. Next up is Carbrokers.

Newest? Probably. It's a bottle, yeah. Yeah, newest company under JSC. Under JSC, yes. Carbrokers. Carbine and JSC. They closed today at $2.11.

Yes. Yeah, they have that, right? $2.11. We're in these corona times. Right? In these corona times, people aren't necessarily... Well, that's funny. The insurance is our first touch on an insurance industry here with cab brokers i don't know how much it affect them yeah i don't know

yeah well to get so much effect they would have to look at the what's their real business life insurance or i think they or What do you mean? What else? Oh, you mean like if they make money off the float? If they're a float company? Yeah, but them float really, the thing there, them float really short. It was more speaking thing there. Life insurance versus motor insurance. I don't know. I keep hearing all the type of broker that people know. But they do the brokerage right so they might be a fast they might sub do they sub sell the life insurance or do they mostly sub sell cash um insurance i'm gonna want to people i know not doing them they said they might pay them

more than insurance yeah well they do i don't know if i should take that and say that might be a broader a broader mind for people it's quite a bit of a well that's a good question I know that they do how they define their business

is that they have four classes international insurance, employee benefits, general insurance and individual life insurance yeah they think that employee benefits very often is a big book that type of thing that the past you business really work they get a big payment from those in. Employee benefits. Because you hire 60 men and I do the insurance for 60 people one time. And I have one client and 60 people all at once. But then you're sitting there where the layoffs might not really work in their favor.

Less employees, less benefits. Ah, but you know what's funny enough? I think it might. Meaning, remember, it's still a pass-through business. These guys aren't doing the insurance themselves. So yes, it might be less business, but it's less cost also because they do have a cost. And funny enough, for their operational side of business, because they're have a cost um and funny enough for their operational side of business

because i there's a small company so you know every dollar counts for them and every bit of spend counts i remember when they're ipoing they were saying that part of the money is going to be used to install solar panels because they want to cut on their light well i do yeah but if everybody they will don't work from home, the light bill cut anyway. Anyway you put it, the light bill cut it. And if the light bill cut anyway, you put it. But business is still going on.

You suddenly now have insurance employees who are working from home. So your electricity bill is definitely low. And they have, outside of that, they always had revenue growth and they continue to have revenue growth. They were profitable. Did they not have a set of financials

that came out? Recent, recent, recent. Yeah, since they have IPO, they've dropped financials, no? Hold on. I really think so that's not seen I could be wrong I believe one of them yeah yeah and I remember them having some stupid PE ratio, something dumb like let me see their PE ratio their current PE ratio is

14.3 times and that's with tax on the books and yes, and that is with tax on the books and they now are able to avoid tax, they now have a better management they no longer have a tax burden exactly, and

they are able to avoid too heavy a jps bill with the assuming that the system is in even if it's not everybody working from home now so i'm pretty sure these guys are cutting down the bill um and i mean i i like them i like them at ip IPO and I continue to like them. They're $2.11, P of 14.3 times. And I'd still buy. I'd buy them tomorrow if I felt like it. I'd still buy. I bought since IPO and I'll continue to buy.

I bought since IPO actually. I do that in the company. Yeah. And just on a fundamentals basis, I mean, they are, they are, if you go on a fundamentals basis i mean they are they are if you go on a fundamentals basis that they should be one of the most attractive companies on the jsc yeah right yeah especially if you look on pe current as of today jsc's pe ratio average pe ratio don't hold me to this um is 22.2 times across the entire market main and junior these guys are 30 are 14.34 times that's way below and and are still growing um shares actually available

there's a tiny ipo everybody complained but I don't think those people were being honest because if you really care that much, it's right here and it's still just as wonderfully undervalued. It's weird. Oh yeah, I agree. Yeah.

So they're audited. You have the audited numbers up? Yeah. What's that profit and river look like revenue 401 million this last year compared to 385 years before profit to 38 million compared to 32 million oh 38.6 mil Oh, 38.6 mil. Yeah, compared to 32.

Okay. Sorry. Which to some of us might mean that they are growing. Yeah, but I think these guys will really benefit from expense management. I mean, there's a limit to how much you can cut, but they're not near that limit yet, I think. Yeah, and the lack of tax soon, the removal of tax on it, because even that number has 7.6 million worth of tax coming out of it.

Yeah. Yeah, 7.6 million worth of tax on top of their books again. That's great news. That's like 45 46 almost imagine so that's an easy 46 million to them uh yeah i like them and i continue to like them i think they've been having a good year it'll be interesting to see a corona affects them but i suspect that they'll come out of it pretty pretty well CAC 2000

the company that has always managed to have something happen just in times rough on them the roads are now fixed by Hagley Park there's somewhat but they're

not Hagley Park, 3 miles or 6 miles, one of them good but they're they're not not three miles good question I think CSC's biggest things that they had coming was some work overseas

not so they said they're supposed to be part of a program that they were in like some

hotels and they're supplying the hotels for yes yeah some big things so if that keeps happening then great they were in like some hotels and they're supplying the hotels for yes yeah yeah some big things so if that keeps happening and great yeah so they might actually surprise people but

yeah because the hotel empty noise well they're they're doing this before corona you know so that's true that's true that's true that's true that's true that's true so yes if it was to if you continue then get joke well csc 2000 i i still wouldn't i personally still wouldn't touch them yeah i'm fine I personally still wouldn't touch them. Yeah, I'm fine. I'll stay there for that one. Yeah. And they're looking at their P.E. ratio is 92.9 times.

Uh-huh. Yeah. Wow. And that's at $9. Yeah. Yeah. That's rough. I wouldn't touch that.

Next up is Carreras. All right. The old stable. So the if thing they're in, you know, the Corona. Carreras is Carreras, the old stable. Carreras? It's a restaurant. It's basically a restaurant. That's unfulfilling.

These guys are not going to stop smoking. Will people stop smoking because of Corona? That will be the first corona that will be the first it'll be the first as far as i know yeah yeah yeah

yeah and and people smoke people always say well you know people people smoke more when they're stretched i do think that careers would have had a drop yeah it's called retail you know that right now yes People smoke more when they're stretched. I do think that Carreras would have had a drop in sales. Yeah, because retail, you know, that we're in now. Yes, yes, yes.

And, you know, you're finding people in the office just popping over to the gas station to buy a cigarette. With cigarettes done, and you can't get it right now, then what are you going to do? Well, I mean, there must be certain feelings, but the truth is, I think there might have just been a supply issue and this is a fast moving fast moving consumer goods so i always remind people if you smoke three cigarettes a day if you if you smoke five cigarettes a day 10 cigarettes a day

and something happened the place locked down today so you couldn't go out right and the shop now have no craving left boom tomorrow if you manage to leave and get some craving you're not going to smoke 20 to make up for the 10 year loss yesterday right it's just 10 a day so i smoke say 10 a day is 10 a day so i do think they have a drop in um sales coming having said that however they are technically if you go off just straight PE ratio, they are undervalued at 9.2 times. I think they'll be more resilient than a lot of other companies. Oh, yeah. Well, they've been around before, so they'll be around after us.

6.2. So would I buy? Not unless I had a lot of money and I was still counting on those dividends to last a long, long time. Yeah. Yeah. dividends to last a long long time yeah yeah i have held the secret dream the hope that um they would be delisted not delisted well yeah they would delist themselves so they would um their owners would take them off the market which might you know represent an opportunity for people

to make money off them being bought out but um who knows who knows i have no evidence no information to say that would be so that's just me looking at the company and the things i am obviously familiar with the company but um very familiar with the company but i have no evidence to that but i have always hoped that and i continue to hope that but i don't own any shares in careers and i wouldn't necessarily buy shares in careers now either i think corona hit necessarily buy shares in Carreras now either. I think Corona hit them hard and will continue to hit them for a little bit. At least until the sales get

sorted out. I think they don't get me wrong though, these guys are very good at distribution too, you know, and they distribute themselves. So, so you go. What's the next one? Sib dream the last dream don't remind me sibony is a dead company and it continues to be a dead company i won't even waste too much time there exactly finn sacks still don't manage to sell it guys if you have if you have anywhere from 30 to 50 million you can buy it easy and probably if you have a little less the government will probably still sell it for less yeah uh carob cement kiln five

uh carob cement just dropped some results yes literally dropped i think last week or yesterday yesterday yesterday so you're getting fresh fresh fresh anybody who hasn't checked yet literally dropped I think last week or yesterday? Yesterday. So it's getting fresh, fresh, fresh. Anybody who hasn't checked yet? I looked at it yesterday. I looked at it. I glanced at it and I remember thinking I don't want it.

Say that again? It's on trend. Is that drop? Yeah. You know how people it again? It's untrained. For them? Is that a drop? Yeah. Yeah. But you know what I feel about this? Revenue, more, profit, less. Yeah. I mean, if they made too much profit, they might have been forced to, they might have found themselves in an embarrassing situation where they might be expected to pay a dividend i said dividends so much these days people i'm sure going to expect me to um to love to love dividends that i still don't care about dividends um but yeah eps earnings EPS earnings per share dropped from $1.33

between January to March 2019. So now it's at $0.57 between the same period. January to March 2020. The foreign exchange gain this time. Yeah, why is it now? You've got a gross profit.

Gross profit is down. thing there gross profit is down yeah well done yeah 1.8 versus 2.1 bill so operating ex-earnings is 1.13 versus 1.5 yeah yeah they just they just things that they seem to have some heavier expenses a hundred roughly a hundred million more in operating expenses hit them which um last quarter quarter before this wasn't so great wasn't great either but was it also a drop in profit then um

so you go they said they said that they managed to get operating expenses before other income and expenses for the period was low by 23%. But the reason it was low is because the year-on-year, the timing between the annual maintenance shutdown. So the shutdown occurred in Q2 of 2019 rather than Q1 in 2020. So I guess that helped. But, you know, there you go. They don't really tell us why, you know. They do like what I'd call an industry analysis

of their own numbers, meaning all of these just read back the same numbers to us in a different voice. They literally just say, they say what it is, and the only explanation I am seeing here is them saying that it's because of the time indifference in maintenance.

And then they spend the rest of the time talking about Corona. Corona is such a good excuse for people yo never waste a good a good crisis but i love something you know yo when you open people are complaining about it i hate to be that guy i hate i hate that guy complaining about the difference in the u.s market i'm here yo those reports bro oh yeah those reports please yeah yeah you do need to pressure the company but the truth is you have to understand what it is and what to expect before you can pressure the company and again we're at a different stage in our market so compared to this yeah yeah yeah i'd say that but I mean the market has been around

since before 1969 true true but look at the reports from the 90s and 80s you understand what I'm saying yeah back when nobody never really business either bro

you know it's so funny couple lines on it for sale this this this you know it's so funny couple lines on it for sale this is this cool left it yeah you know funny enough i believe the moment is i believe i mean we used to be a more advanced market in the past you know i think we used to have sharting here way back in the day yeah way way back in the day and the legislation still exists for it i've heard people say what infrastructure would there be need be though um not not legally yeah and the brokers in the brokers in meaning that commercial short not sure that that's the brokers have put something in there for it to happen i'm not sure that's illegal for people to say this because nobody

has shown me anything to say this again well it's mentioned in law and there's things spoken about it in the law in the act so um i don't know if it's been illegal but i am not a lawyer so let me leave that one alone uh next up is which one is cff caribbean flavors and fragrances under the derryman traders group a part of the Derryman Trading Group, Caribbean Flavors and Fragrances. Actually, it was a proud shareholder sometime ago and I jumped out.

And they are just continuing to truck along. They ended today at $10 per share. Didn't trade. Hasn't traded in a little bit. It doesn't trade very often. I also pay the health. Maybe in the magic or something. Yeah. hasn't traded in a little bit you know it doesn't trade very often yeah small company that does very small things but you know

helps it helps prop up the the dermont trader group i can tell you that that's good for them um derek cutrell has managed to really build himself a nice little group there with that imagine a few more yeah I know with what? reaching the stage women yeah yeah well you can't not the man

and you know him acting like a true conglomerate meaning like his move to buy the the pallet company yes woodcats because um because he knew so many pallets yeah just straight up efficiency was cff the company that david big up david rose jc912 cff this was was this was the one that he fixed right audited report so see so that is that the biggest thing that has happened funny too yeah that's what should never happen is shameful shameful and I hold art as a load is to slip past him them is also shameful it's not even slip it's

mistake after mistake i make a you not even five years out of high school find it embarrassing anyway right big up david for doing a job you take him job serious boy yeah uh revenue for them 462 mil versus i can't even say versus anything because i'm looking at you can put the 18 month time give me a 12 months too but you know what they're not they're not they're not required to do it so what what what cff has done is they're putting the 18 months figure to compare to a 12. um and they say it's for com why yeah what is the point of it did something happen did something happen why they went to 18. did they have a thing they didn't have a different reporting period from the rest of the group at some point ah they may have changed reporting day but i think that happened when they got bought

and the buying was some time ago so what's the point honestly the reason we put two different things there two different lines for the two different periods to have proper comparison so what's the point of telling me 12 months versus 18 months? You know I can't compare those. So what am I doing? Well, I think they do it the way I think. I have this saying that I say very carefully.

I say very carefully. Companies lie in air quotes. CEOs lie in air quotes. So they can't lie to us. So they do things like this where they try to hide things because you know they can't lie to us. So they do things like this where they try to hide things because you know you can't compare the two. So just give them something.

So what I can say is that they are currently at 31, at least as of December 31st, 2019, they had 31.5 million in net profit. 31st 2019 they had 31.5 million in net profit um and that gives them that gives them uh pe ratio of that gives them a pe ratio of 28.5 times and i don't necessarily feel very happy about them or too great with them like i said i was a shareholder some time ago and i got out and feel very happy about them or too great with them. Like I said, I was a shareholder some time ago, and I got out, and I'm happy I did. Happy I did. That's how I feel about them.

CFF is down and dusted. Next up, CHL, Cargo Handlers Limited, a company from Mubei. Yeah, it's one of those companies that we don't really mention at all. And, you know, they do okay business. They do. Yeah all. And they do okay business. They do. They actually do very okay business. But it's not as exciting. People don't really seem to notice them.

Yeah. I'm looking for, I was trying to find, I was trying to find, there's this document I want to find, but I can't see it. Tell me how you feel about them, really. Are they really a union or a company of workers who work on the port in my bay not in kingston is it is in my bay yeah on the port in my bay uh tend to be always interesting to me when they do well you know like doing better than previous periods because again nobody talks about it yeah they're very they're very often meet their previous numbers very quietly too and they're meeting

lower revenue better profit lower revenue and they pay dividends for the people who care they are a dividend payer there's but I should say conversely that sometimes

I can't even say that they're illiquid because they're not really that illiquid you know they don't trade every day but when they do trade it's big enough volumes I think the last trade I'm looking at is them trading 500,000 shares but then it'd be

zero days, zero days, zero days they did 500,000 shares, but then it'd be zero days, zero days, zero days, then 500,000 shares, then zero days, zero days, then 327,000 shares. That sort of thing. Yeah, but it's very tightly held. Yes, yes, yes, yes. Very tightly held. And then in December. In Fab 3, over 75% of the company is held.

And then the very next person is the Cargill Handlers Trust which owns 9% of the company so you see how quickly there are no shares left on the market yeah but wait, that's not necessarily that bad because that still leaves about 75% or 71% over 75% of the company

is in the top 3 like a good over like hmm yeah it's over 80 percent of the company yeah but i mean you have companies worse than that though they're at that job nine percent they just own nine percent nine point nine that's ten percent so nine so ten percent oh wow so yeah yeah that is rough 90 odd you are correct um yeah yeah it's just not a a very popular company and And I think a lot of people don't think about it and then other people don't know what they're doing.

But they seem to make money. Markhart is associated with money. Is that CPJ? Markhart? Only one person named Markhart, my lord, in Jamaica. That's true. Yeah, yeah, yeah. And in Moby, yeah. And it's been the same hikes that have been there for a long time.

Very, very, very long time very very very long time um thankfully i haven't been around as long as um the heart so if i did we had a different name then but they they had a drop in revenue yet thanks, thanks to tight management, I'm going to assume. Yeah, it looks like it. Right? And exchange gain, because they made an exchange gain versus an exchange loss in that quarter. It was a big save, right? It was only 23 million loss.

Versus a million. Yeah, versus just one. So, yeah. Yeah. Gain. A million gain versus 23 million loss. Yeah. So that that's really the game changer to be honest yep because that's what brought them to operating profit of 41 million and they kept it through the line so they ended up with net profit of 35.9 million versus 24 million you can't knock something that works right and these guys

understand they're on the port they're not even a port themselves but they're on the port with equipment and people i like it if i was a long holder i would probably buy it that was a money the heart and they were definitely sure yeah of course all right if we to um to do this week's buffet which i haven't done a long time this week's buffet says he likes to buy it buffet say he likes to buy um what's him like to buy him like to buy he likes to buy entire companies if i could buy an entire company i would buy this company it's a needed service it needed service. It has a large enough moat. You know, I mean, you have to have the approvals and all the equipment and the experience, blah, blah, blah. And then it has a little bit, it's a bit of a niche, right?

Steve Doering. So working on the actual port. And they pay proper money and they pay a nice cut dividend. I like it. I work there, I would own shares. And if I had the money and it was for sale i would buy it completely yep they they listed early though so this is also their first sorry this year 2020 is the end yeah at the end of well not, not really this year. It's going to start next year. So 2021, they'll start.

Because they're listed December 28th, 2010. So I like that. If you can have a long-term view, I could see somebody going in there after speaking with their... That's right. Boom. We're going quite a little while now so let me speed up i

think we do maybe two hours two hours some more and anyway we can't say that again oh wow me you know me neither i need to do the same thing I need to do the same thing. Hell. I do need to do better. So I go. I'm here and I know there's good food because I can smell it coming from the kitchen. Next up is

Caribbean property Carri... Carribean property fun. I don't know why they have V though. What is the V? I thought it was Caribbean. Where's the value? v i think value of fun i think value of fun but the ticket exactly i remember being value of fun i'm not sure whether it's cool i i do have those last results. When you said,

you can describe it, who they are, what they do. They closed today at 33.44. Did I have that right? No, I do not have that right. 33.44, yeah. Oh, yes, they closed today at 33.44. I haven't traded last week there is it and they close up

not their 33 44 their company they have commercial real estate and they rent commercial space oh very straightforward right so they rent commercials yes commercial spaces and in more than just jamaica yes yeah originally in barbados and our good guys at equi went over there but we're talking what's the most important about muslims we have barbados we have i don't think it was on the podcast though but we we have yeah yeah yeah yeah this is another muslim move taking by the whole yes yeah yeah i grew up i grew up hearing more you know sitting by everybody by jamaica train that up this from jamaica this from this from jamaica in my time i'm seeing these guys buy by the whole academy we own originally it out and put in some more stuff to us. I keep talking about this on the podcast because I love it.

Yeah, Caribbean Property Valley Fund, their last results were very nice to me because I was looking at it. So when it just, a little after it listed, they have put out a notice that they were buying back shares. And so one of the current commentary I saw online was, why the that they were buying back shares and so the current commentary i saw online was why the hell them buying back shares imagine them using shareholder money with them just get from ipo and my buyback shares already this was in a time where if you look at the company the results hadn't come out as it so in my mind you know it doesn't carry the stock okay i get up and say we're using shareholder money i don't know how i said i don't know how should i say this go ahead that's it that i don't work nowhere go ahead

there's no more libel laws. You'll be defamatory. Go ahead. To me, defamatory is like the board members can't contact you if you get up and touch.

They're using shareholders' money to buy back, to buy, to do a share buyback where you just bought shares from a company and you're going to take it

and buy back shares. To me, you don't know what's happening in a company in that period. If they had made money already. So the person was coming and said they should be buying property and expanding the business when they're using the money they just got from Jericho

as the buyback shares. Low on power. The period in which that person was speaking, and I don't remember who it was, I was sighting on Twitter. Period in which that person was speaking of. He checked it, we got results from during that period and they were so nice. Company properly in profit, nice.

He looked at the thing there, said I'm opening results now revenue rent net rental income gone up from 392 million in previous in the corresponding period to 843 million the share property investment of about the same interest income was 269 million but not sorry i'm talking this is expressing barbados law so it's not middle eight hundred forty three thousand from the 392 thousand on rental income so your property investment was about the same it was 11 000 more and the interest income 269 725 versus 55 000. so five times more five times more and they doubled on their rental income. The profit was 1.2 million versus 683, probably for tax, sorry. The profit for the year, 1.2, it was actually,

there was no tax there. So 1.2 million versus 680,000 profit. This is in Barbados dollars dollars so they double their profit barbados dollars is of course it is is the u.s dollar basically it's much more than jamaican dollars yeah yeah i think it's two to one i think it's two to one i think it's 2-1 I think it's 2-1 to the US dollars yeah

2-1? yeah man when I was in Barbados that's what they said I don't know if that will last though because they're under the IMF oh yeah yeah

but on the flip side they seem to be on top of their coronavirus response so yeah they're under the IMF. Oh, yeah. Yeah. But on the flip side, they seem to be on top of their coronavirus response. So, yeah. So, they made 1.2 million convert to Jamaican. It's

around $8 million. Is that the right number? One point. Say that again? $80 million. Yeah, $80 million. $80 million. Yeah. $80 million $80 million $83 million .4

and that's a double so carelessness to say that they were using shareholders money frivolously

and I don't know like they made they made money profit and they use some of that money because this is a heavy cash coming cash income company this company pulls cash every real estate you know that though and their share price was less than their determined valuation because the net asset value so they're they're valuing the company on net asset value and the share price was below the net asset value and So they're valuing the company on net asset value and the share price was below the net asset value and they're saying, okay, we'll buy back some of the shares

and in an effort. So if I own shares today and shares are bought back, then I own more of the company than I did yesterday. Right? So my percentage for the company that i own is now higher let me take the check better than that what's the issue they made money ah exactly they made money and not only that it means that the shares that you bought back because those

shares don't disappear so the shares that the shares that you bought back So the shares that you bought back at, we'll just use the example, at a dollar are now worth $2 or $3. Yeah. All right. So you have not only made a good investment for the fund, because at the end of the day, it's still a fund. So they can't cancel it. They can't cancel it. Yeah. They're on the water. Yeah. the fund because at the end of the day it's still a fund yeah yeah or i get so they do that for the fund and they have um as you say reduce the amount of shares out there so it's it's there there's they've increased you have reduced the supply so there must you have increased the demand

right and then to top it all off you went ahead at the end of um december and paid out at the largest dividend in the fund's history for the people who care about funds for the dividends um so and and they continue to the share buybacks i think they did a share buyback up to up to right i want to say up to yesterday or up to this week, something like that. They are still doing share buybacks, and I cannot them for that because they stated clearly why they're doing the buybacks, and as long as the reason still exists, they're still doing it. So good to me.

Yeah, it says to me that um sorry go ahead uh when they just came out sorry at when ipo the valuation on a pe basis wasn't what i would like so i passed like wow um and i think part of the i know there was some concerns about the price at ipo because technically this fund also trades in barbados on the bayesian market and and the ipo figure was higher in jamaica than buying it on the bayesian market so if you have the kind of money and access to buy it off the bayesian market go ahead and buy it now but this is your thing your convenience cost was buying it right here yeah on a market where as much as it doesn't trade that much on the jsc it's still um um it's still it it it still trades more than probably the entire barbadian market the bayesian market is not that active yeah the interesting thing is that I have a comparison often

it doesn't hold up by looking at in the look at it as I said we create is very much different than bright vision might say I'm a fan where I lower price might just not a trade of sometimes um you also look at the company so if you're if you're doing now if your evaluation say it's a good company at $40 and you have to do some extra magic to get that 30 ad somewhere else but you you're fully okay with buying at $40 they just buy that $40 that's that worry about boy you know said barbara can't get cheaper if you're not going to buy a cheap one in Barbados, then that's not your concern, right?

These are moves you think you can make or whatever you wish you could have made first, but you can't actually make or can make. Yeah, what I will say around Caribbean property value fund

or fund value or whatever is that is that or is it that it was fund five no it's value fund Caribbean property

Caribbean property fund unlimited SEC dash value fund that's where the V comes from it's dash value but value fund is two words yeah I ain't

anyway what I would say is that the gentlemen, the team, because it's not just gentlemen the team at Ethplay have proven themselves time and time again in my view in terms of their business know-how. And I think to speak against them strongly requires also stronger know-how.

These guys obviously know what they're doing. They're consolidating, I think. I mean, I found it interesting. I remember seeing years ago that the Epley guys had bought the real estate in a couple of bits of real estate in jamaica when they're coming to market and so on um one of the buildings stood out to me because it had some historical meaning for me and then later on when this epley caribbean property fund ipo was happening one of the reasons was that that real estate was being so at least that

specifically is a real estate i saw being sold to them. So I thought, okay, these are guys, which is something that people do all the time. It's good business. If you can cause one arm of your business or one business within your group to fund the efforts of another business, go ahead. That's exactly it.

And the truth is you could do it all along. And you do it all along, but no, for the first time since you're listed, I get to eat a piece. So I like it. On a PE basis, somebody might say, should you validate this based on a PE basis versus a price to book? I mean, come to that.

You, sir. You're the one validating. You're the one validating. Exactly. And I pay attention to reality and and the market the market pays attention in this case at least well to nothing who knows what to pay attention to for this but the share price which is undeniable is um 33.44 and up to this month yeah because april 6th they're still doing reported share buybacks

done in March, and their PE ratio is 13.86 times, and they'll probably make more money this year because of the kind of business they are. This was just third quarter. First quarter.

So yeah, the rest of the year might just be good. Might still be good for them I don't know if they have I don't know if they'll have any hits I don't think they'll have any hits they might but then again

it depends on what the business is yeah rental income the rents still have to pay investments they do have investments I say nice and say well well, you have to pay for this thing.

Interest income. Those things, I mean, it's just like the JPS bill. Corona might be here, but best believe that JPS will still cut your life off. Yeah. So, I mean, but on the other side, it is a fun.

It's the king of the dark. But what I will say is that I continue to respect this company. I don't own any shares in it. And I do think of it as a long-term kind of company. Meaning, you know, just like cargo handlers, I see it as a long-term. term funny enough one of the top owners of um of the company is the 10th largest owner of the company as of the nls here was the kingston port workers pension fund pension fund which just made me think of the cargo handlers um company because it's the same thing right it's a port workers but they're well although it's not a pension anyway um another low and slow i like them but i don't own them and if i saw maybe a little bit more liquidity i might be tempted to jump in but i do not so it's not for me but it

might be for somebody else depending on what them investment advisor tell them but these numbers are impressive and they've made almost half of last year's number in in one quarter so do with that what you will indeed yeah uh we now are at cpj the box company the box deal company uh yeah well the cpj oh if you bought a box did you buy one of the box you did really where was it good where ribs is ribs alone you get our ribs and other things um yeah all in one go or enough for more than one meal? Enough for more than one meal. They have me.

Oh, nice. They use the rice. Really? Yeah. That nice, eh? I mean, big them up for that sort of innovation. I respect that sort of innovation, especially that sort of quick innovation. Yep.

Yeah. And the clothes today are $2.62. Boy, rough. Hey a rough one them wicked you know somebody gonna say but you like you i listened to you on the podcast and you said you like them ah boy let me be clear i like that sort of innovation i do actually like the company i really do but i do not own any shares in the company. And let me put it this way. They started the year on December 31st last year.

They were worth $5.20 per share. As of yesterday, they were worth $2.52 per share. That's almost... That's more. That's less. That's more than half of the value. They've dropped more than 50%. I can't even say nothing. You're not worth it. I can't. It seems to me very much warranted. It's boxed news.

Don't mean a thing. It means enough. It means, boy, we need to get critically these things that the hotel's not buying anymore exactly that's exactly what it means you know it means it means that the hotel to me because we're all speculating here we're not on the board we don't know but to me what it means is that cpj sells mostly to hotels. CPJ knows... A lot of parents are doing the inventory. Yeah.

And the hotels knew, obviously, when they would have seen a fall off and when they stopped. As much as Jamaica is going through its greatest tourism time

right up until Corona. Yeah, you're right. The fall off is warranted. And here... Oh, my God. I'm going to say it. To me, at at 2.62 cents them still over yeah yeah exactly because because everything will spoil it is a p e ratio of

39.69 times and that's at 2.62 and i said market average is 22.22 times so at 39.69 times way over the entire market the average market value for the entire market and and realistically a company like cpj maybe they were going to have i mean the man named them them salt them get liquid just as they were getting finding that their feet from coronavirus what can i say yeah and you look at the thing there when they were talking about we can buy in we can buy from the outlet and they listed the discounts you can get those things at discounts his margins going it margins, go on, you know. It means I sell this at whatever and it's healthy margin on it and I can no longer do that.

It's rough, man. If I'm getting at the same price, if it's even the same hotel price, I'm getting at it rough because whatever, I can't cover the hotel, I can't fully cover. The retail space wasn't there for them,

that heavy, but to cover the thing. So there not increase in retail in retail sales right not very should live in hotels are buying so why rough I mean some should some issue with a bond covenants and get the leeway from the shareholders from the area again we said we said issue we said issues with um with with the bond covenants but um it's so funny your people are recommending it up to i mean official houses recommended it up to relatively recently wait wait calling it a buy calling it a buy up to relatively recently well it was before the box deal because the box deal is um is since corona although it was early

corona the boxing happened but yeah um yeah to put it in context yeah i'll put in context something i said i said this at the last grow. Jamaica had 4.2 million tourists that passed through the country last year, last year being 2019. 2.8 million Jamaicans live in Jamaica. 4.2 million tourists coming through the

country. Even if we said all the people coming through the country, a lot of them are people on um ships so maybe they're not staying here you know it's just them coming and enjoy the day and then i'm gone but let's have for those people come in hotels let's say even let's say extra million let's bring it all the way down so out of the 4.2 extra million come through hotels those million through the hotels not coming out so cpj was helping to feed not just jamaicans but also a good chunk of the 4.2 million tourists mostly Jamaicans and the Bucks are only in two parishes where there are more populated areas

but still yeah and the two parishes where CPJ has offices which Kingston and Mobile yeah

right hold on yeah hold on alright yeah while we're going 3-0 I think you want to chop this one as you did not call we will wrap it at

CPJ so we can finish off the CPJ point and then we can call that part 1 CPJ is a good point because we're talking about it right now the box piece alright let me one slide pause and then we go back in

you're at Mobe and Kingston yeah so it's the two places where they have their locations Mobe and Kingston their offices I think their actual official office might be Mobe actually mobay and kingston their offices i think their actual official office might be mobay actually um yeah rough one yeah it is it's rough on them um they they just can't do it i think i'm just trying to get rid of that inventory which i can understand which i what else i like is that uh

they're allowing jamaicans to once a lot of the nice food that they need to just get a choice um that we might not have gotten access to those good ribs tend not to be um available all the time there are a lot of times they just can't get ribs i should know yeah as a man who like sometime anyway um so it's a huge it's a million people at cpj would have provided food for over the year those people haven't been there since late february late february i will put march in there now in april that's two months i take two months out of the 12th that's almost a quarter that's almost a quarter's worth of sales that bleeding cpj has not been able to put their their fingers on and yes i'm selling a box deal and i hope there's profit on the box deal you know i

suspect there is i think i think at best we're getting that hotel at least right in the same price hotel we get it for no you might be surprised if you're saying this i don't know i honestly don't know i would have to bring in an expert i would bring an expert no but it it might be taking too long but here we are we'll send this out i'm sure people hear it and if we're wrong we will be told and information we can't exactly New information always ready to do. But information I can end this point on is that with CPJ at a share price at $2.62 with a PE ratio of 39.7 times is still too rich for my blood, no matter how good the box deal is. And if you cut that in half and brought the share price down to $1.30,

I would probably say it's still a little too rich for my blood with coronavirus still here. I think CPJ, the best, if they can survive past corona, then they're in good because hotels open back. And then, as you said, the domestic market has now gotten a taste yeah I don't think they have heavy sales with the outlets in thing there the Kingston and things there so you know say not before you can just throw in a box feed everyone not at the same price obviously but still put some markup on it

if it's cheaper than boy that's regular buying some ribs, some corn and some fries I've seen it work out and the domestic market can eat that sort of food quite so in fact I don't think they'd stop

if I was them what happens I don't think they will I think they will i don't think they will i think they will keep feeding the domestic market and um as they feed the domestic market and it and it continues to move you will see uh uh uh an an uptick so as tourism starts back you're not gonna start back immediately so as it starts to ramp up slowly you'll see them taking back on the tourism market. But if they're smart, they could keep the box deals going

and then it's not too much either. I'm aware about people queuing outside because if you just get smart and pair with a delivery service and people can order them things online. So this is the box deal. This is how you get in a box deal. And it's just boom.

You can buy, you can get delivered. Get a box. Exactly. This is a bullpen. Exactly. this way you're getting a box deal and it's just boom my body get delivered exactly yeah exactly yeah so do i like cpj in the long term hell yeah great company do i like cpj for the rest of 2020 me personally hell no yeah if it drops below one dollar then i might consider buying it yeah watch out watch out going here sir randy said on his podcast that you're supposed to buy the cpj or that or that cpj yeah it's always funny to me Oh, God. Oh, Lord. Oh, Lord. All right.

Put that clip on the site. Put that clip on the site. Right? So, in this time, we have managed to cover, what's this, about 16 companies. So, we have quite a bit to go. I think we're going to call time on it here. I got a load tonight. I got to eat dinner. I got to eat some dinner too.

And we will come back either the next episode or who knows we'll put together something we'll come back and we'll continue because we do have to do this and i i do want us to do this to the state of the market and it's a good thing i think people like it but that's right it is good for us and good for them right because my little notes are making right now i know i need to go back to check for 1834 partner yeah so so guys I don't have time for this one we'll come back with part 2 later on and I hope you guys

have enjoyed it in the meantime I've been Randy on Twitter I'm at RTRO and I've been Denayen on Twitter I'm H Denayen yo you changed your picture on Twitter big up no more dog oh lord I can hear the pain in your voice yo you change your picture on twitter big up no more dog oh lord oh i can hear it i can hear the pain in your voice

i can no longer hide then i don't know oh god yes so no no then no you know people gonna say it's me let me make it clear so nobody inside the room guys i never forced the man to do it it's not me tell the man today oh yes well let them go i guess in that one but but i can't say i never tell him to change it and i was actually surprised when i saw it but oh why not put on him suit and i put out him make people see it look good. I'm going to put on my suit and look good. Why not? One suit, I might put it on right

now and go to the living room. He's a big man. Right? Anyway, guys, this has been Earnings Season. Look out for us next week again. Guys, big up. We'll be back.