Earnings Season - Tracking Greatness (Part 2 of 2)

Episode Date: May 19, 2021

Randy & Danhai continue the conversation with undisputed Legend…John Jackson.They start off by focusing on the rise of the retail investor in Jamaica and then head into, other investment topics, such as John's views on Real Estate vs. Investing in Stocks, Renting vs. Buying, USD Savings vs. Investing in Stocks, Beginner Investing, The Rule of 70, Shorting on the JSE, WallStreetBets, Gamestop, Activist Investors, Buying and Holding, the general PE movement over the years…We touch a A LOT MORE in this one and John Jackson runs the ⚔️Earnings Season Gauntlet⚔️…and then asks us to do the same 🤣.Listen, enjoy, subscribe and share.Donate to Earnings Season: https://bit.ly/3tnxWZZ📲Contact📲📧Mail - [e-mail]🐥Twitter🐥  www.twitter.com/Earnings_SeasonRandy - @RTRoweDanhai - @HDanhai🔗Links🔗Jamaica Tea's 2020 Annual Report - https://bit.ly/3dcC5KHQWI Investment's 2020 Annual Report - https://bit.ly/2ON4VYGQWI's Net Asset Value - https://bit.ly/3dZuE8GStocks Mentioned: QWI, JAMT, JETCON, SOS, AFS, KREMI & NUFF MORE.This episode was recorded on February 13th, 2021.Data Provider: MyMoneyJA - https://bit.ly/3dZuE8GJohn Jackson's IC Insider - http://icinsider.com/ ★ Support this podcast ★

Hi guys, Render here from the Running Season Podcast. So this week's episode is part two of the conversation with John Jackson. Now I know a lot of you have been waiting for part two, so I'm happy to put it out there. If you're not part of the people who've been waiting for part two, if you didn't know that we spoke to John Jackson, this is your chance to go and catch up, right? If you're listening to us, you're not watching us on YouTube, you know we're on YouTube, right? Well, if you listen to us and you didn't know that we're on youtube check us out on youtube if you don't want to check us out on youtube if you're a pure podcast listener like myself then check out episode 53 for the first part of the conversation if you are on youtube however

you can check out the link somewhere up here i believe and you can listen to and watch that one if you have however listened to and heard that then go ahead and enjoy today's episode um in this part of the conversation we go into retail investment we go into a lot of companies we actually touch on quite a few direct companies and um john jackson actually asked me a question that i don't usually answer on air but you know because it was a good question and he is who he is i decided let me go ahead and answer that one. So look out for that. I should warn, however, that as I said for the last time, my microphone in this one is a little bit off. So I must apologize for the sound issues. They're my fault. They have been fixed, but they are there, right?

I didn't want to throw away the episode. So you get in the best zone that you can. It is annoying for a little part, but you can hear it pretty clearly uh outside of that just enjoy the episode you know give us a thumbs up if you're watching on youtube um give us five stars if you listen to us on apple podcasts or whatever other podcasts i'll be using hope you enjoy and good listening I love that. So, I mean, you're giving us a lot of points. I don't want to drag it out too long. So I'm gonna jump to like maybe the easier things now.

So, we touched on the retail investor base earlier. And well, first of all, I mean, is that a good thing in your view? Or what do you think of it? I mean, 14,000 regular Jamaicans, is that a good thing in your view i what do you think of it i mean 14 000 regular jamaicans and hopefully a lot more in my view will be going on to the market is that a good thing in your view do you my my my position is i mean i i um i see the capital market I see the capital market the way I see religion. And I believe Christianity is a free gift that mankind has,

that he can avail himself of the powers of the higher authorities. And there's more virtue in it than a lot of people sometimes recognize. And so it's the investment world. In other words, as I say to people from time to time, you're a doctor, you're a lawyer my based on my experience take on the investment on get to understand and learn the investment fee because the name day that you you are fired from your job if you get fired or whatever the factors are or pandemic hits on your normal operation not can't perform whatever reasons you have this additional skill set you can stay at your computer at home or wherever it is and that can become on its own

your own business yes and therefore you can you can be operating here's a business it does you don't have to be there you know it was a day or whatever you can just spend whatever time you want to spend on it invest colloquial dividends when the price goes up you sell if you think it's time to sell or you invest more and it just takes care of takes care of you and your well-being um all the time so if my philosophy is focus we've we've focused on owning real estate in this country to our detriment yes because once you buy a piece of real estate, it sets you back cash flow-wise for three or four years.

It sucks out all most people's savings, and you end up in debt. While if you avail yourself of building wealth through capital market appreciation and performance. You can pay off your debt. If you have debt, buy a car. And if you want, you can take some debt, but you would have built up enough equity in your investment that you can still buy the car and still have investments left over that you can build on and then when you get to the stage where you can now take some off and pay down on the

house then you have the best of all worlds before you but we have the thing skewed in the wrong direction we want to back our we understand the wrong direction. We want a bad car. We understand the principle of mobility, but buying a car is more emotional. It's a cost and an asset. A house, while it being an asset, absorbs so much of your resources. And if you don't have significant resources, it becomes a strain. And truth to the matter, most people, it is better for them to rent. I mean, yes, we understand the problem with landlord-man-need-its-house or what have you, but if you can rent at a reasonable rate for a period of time, you rent and then you build up your savings. And the best way to build up the savings, if you look at the historical things about stocks, I mean, you know know a lot of stocks have actually done

incredibly well I mean to make a tease is we went on the market at two but three dollars and mash mash I will give me so it moved and move from three dollars something to maybe about forty dollars now yes if you remove the effect of the splits yeah right yeah yeah so so that and there are many others that have done reasonably well so it just indicates over time so it has done better than people have put money in just convert to us dollars map so the history of the market has demonstrated without a question at a pool of stocks well invested is going to deliver superior return for many people and you can start at a fairly early stage against that with small amounts and that small amount can grow into something significant. Definitely.

So, yes, I welcome my old philosophy is I believe the opportunities for bettering oneself in Jamaica is so substantial that the message we should not lose any opportunity not to get that message out there we just need to make sure that people and i understand the the price to be paid for education so if you're not educated in in a formal system you're going to be educated in an informal system and they both cost money so the question is some of us might not have had the fortune of being educated appropriately in the in the former system so we have to learn from with knocks out in the real world but many people have done so and have done well over time the critical issue of time is not to is information we need to look at invest properly

without adequate information so people need to get information people need to know to use the information and you know people in business tell you to I mean I saw leeching's comment that you must get get a good a good mentor. A good recipe and stick with the recipe, don't change it. I don't agree with him with that but it doesn't mean the recipe is not working. That's what management is about but you must know when to make the change um yeah but get the knowledge and utilize the knowledge and spend some time you know i i say to people i'm fascinated by planes but i don't know how to fly a plane from i'm going to take a plane off from from norman manly airport and landed in london but the guys who have trained they go to the dark and invariably they leave norman manly airport and landed in london but the guys who have trained they go to the dark and invariably they leave norman manly and they hit east road airport without any difficulty they

even sometimes have to change course a little bit but they know their craft and they get it there and so it is if you want to be a good investor you need to spend a little time or at the time maybe talking to friends who are knowledgeable who can impact that knowledge to to to themselves to others um so they can learn from it yeah um yeah i couldn't say better myself i'm happy to hear that you love that uh with eyes thinking i know people listen to this i'm happy to hear that you love that uh we're always thinking i know people listen to this i think that you need to have a lot of money to start you hear it from the legend himself where you are and it is you can consider it saving i always say i teach a class on investment and i said to them that listen saving is just another form of investing so don't say

that i'm not going to save i'm going to invest so i'm not going to invest i'm going to save say that i'm not going to save i'm going to invest so i'm not going to invest i'm going to save saving is investing all you need to do is compare what is your return when you save versus your return when you come when you invest and that might i hope change some people's minds around when they look on what the average savings account returns versus what the market returns, even its bad years. One of the things that, you know, when I talk to some beginners and near beginners, is the rule is 77, 72, or 72. The rule of 72, yes, the rule of 72, correct, yeah. Right, and if people focus on that rule,

it sets out a target. So I don't know the average stock price movement in Jamaica, but let's say it was 25% over time. It means that every, divide 72 by 25, and it's two, three times roughly. So it would take three years at 25 percent to double one's money so it is useful for people to talk to consider that rule because if so if you if you if you if you wanna put money in the bank at 5% forget about taxes it's gonna take you 15 years it's gonna take you 15 years to double so which ones I mean the dividend you may get off Scotiabank with probably more than double in 15 years not to talk about the stock price

So those are some some lessons that people and I you know I use the same thing with with Poland if all it was paying 10% per month If you put in $10,000 in Poland in Seven and a half months it would have doubled the income $10,000 in Poland in seven and a half months, it would have doubled. It would have become $20,000. And in another year, that 20 becomes nearly 40,000. So after a very relatively short time frame,

I think within five years, that $10,000 would work some millions of dollars if that was a consistent 10% per annum. dollars if that was a consistent 10% per annum so it just shows that people at the beginning that started with relatively small amounts over the life of cash plus and all in the five years end up with quite a bit of money of a small amount and let me say yeah this is a show to the people because i know people who did that i know people who and it's terrible and i know they feel some amount of guilt about it because what they did was there was a choice in in those things where you can either get a small amount paid out every month yes or you can let it

roll and you wouldn't get it in a to roll and I know I'm two friends who did a smaller monthly amount and they ended and they lost money they lost the principal but those monthly payouts because they had it for enough time actually paid them out much more than they had in our friend actually bought a piece of land of holding yes yes so it really is a matter of understanding financial literacy where even a bad situation it will help you to find the best some people and some people will pay the price yeah always the case yeah but I love to hear that I guess the rat died a retail investor point how do you

think about activists retail investors so like when we look on what's happening in america now with wall street bets and um sharting yeah how do you how do you feel about that i'll separate the two things because i want to ask if you think we should have shortening on the jsc first so you can answer either of those first well i think that i see no reason why they should people shouldn't be allowed to short as long as you have the rules pertaining to it, proper rules and proper regulations. So I have no, I mean there are occasions where, you know, one would like to short something because the fundamentals don't support it. You would have loved to short access for the last few months.

Sorry? I'm sure you would have loved to short access for the last, maybe six months. No, I wouldn't have, I wouldn't have short access. Not at all. One of the principles you have to be careful in a short stocks that are limited supply, because if it turns against you, you can,

you see, I think one of the things you need, concomitantly short selling, are options. So I could short a stock, and at the same time buy options, so call options, so that if the stock move against me, at least I have an opportunity to protect myself. And hedge. All right, yeah. And hedge it.

Under the present circumstance, you can't. If you're just short and naked, you need to find a company that is somewhat sick and is overpriced short, in my view. But, you know,

you anticipate that something is going to go terribly against but as you see what happened to game shop although it was a weak company shorts got trouble right and sometimes you don't know what's gonna happen so I believe the options and the and the and the short selling, because what short selling does, it helps to balance out the market from extremes. Yes, it becomes a physical problem. In many instances. So, I believe, I know we talked talked about we want to go to I'm a I regard myself as a fairly simple person I want to I don't always believe that what is overseas is better than I'm a Jamaican

I believe in Jamaica I believe we have significant assets we We just need to do some things right. I'm not denying that there are not opportunities elsewhere. But we have a tremendous amount of opportunities around us. And we sometimes ignore it. I mean, I know lots of people in the past that go on investment stays. They don't understand the investment in that field. And they end up losing money. Because the tendency, we buy the things that are the popular names and we

know that there are value propositions and propositions that are not ideally suited to be acquired at a particular point in time. So knowledge is always important, whichever market we're involved in. One of the things I say to people, you know, Scotiabank, Scotiabank and Alcan and all those people have invested in Jamaica and take a long-term view of investment that it has done well for them.

So it's not everything, you know, you're buying to say the junior market that is less liquid on the main market. And when you buy, if you're buying to say the junior market that is like less liquid on the main market and when you buy if you buy a large amount you have to mentally adjust your mind to the fact that hopefully the company of mining has the opportunity to grow profits and grow over time but there may be shorter periods when all of that may not go well and the question the ability to ride out the storm if you have to ride it out uh until it can come to safer shores uh but sometimes long-term investment i'm not a necessarily a tremendous believer in long-term investment i believe if you invest

take opportunity profits when you you think the thing has stopped out and moved elsewhere and it comes back to what I call the 80-20 rule in the stock market that the 20% of the stocks never repeat in the, or more than 20% never repeat in the next year. Next year. Which is what the evidence has shown consistently. Buying and holding a stock doesn't really make a lot of sense um you know your bad it does speak for the time being you sell it move on and try and try and join the line at some other point in time in the future so well i'm happy to hear that i hope the girl guys have

seen i've been i've been saying this i've been saying this other thing for a long time that you know you buy towards your goal it's like being a wagon is it's perfectly okay to be organized in the stock market once you've gotten what you wanted it's okay to get old yeah you know the old adages by and cool that's what invest but you're buying old if you don't know enough, have enough knowledge about the market and companies. The reality is that if you, especially as small investors, you can buy, I mean, let's take the Wicton. If many of the people got into Wicton at solar for the 90 odd cents level,

they could have come back and bought it cheaper. 90 odd cents level they could have come back and bought it cheaper right um but so one of the things that we have to try and avoid and at some time i have uh difficulty i don't have difficulty in making a decision to sell but if the market is driving a stock up it's sometimes difficult to determine whether it's going to drive it higher but I find invariably that the normal valuation norm is a good guide of the market is is and I guess historically where the market has pitched a p-ratio for individual stock at the moment it doesn't necessarily convert because the market is p ratios are being revalued upwards so the

historical norm is are being blown out of the water well i'm not saying they're being blown out of the water the fact of the matter is that people i grew up in a era where people accepted 10 times multiple as a norm but then when when the p ratio regarded as 10 not 10 was regarded as a norm interest rates were in the 20s or in the teens on on government people um so if rates are no one 1% or whatever it is, if we got three or four or 5% as a norm, it therefore means the P ratios should be 25, 30. It will, as I said earlier, it will get there if the stability remains in the system,

because people are gonna find that even at 30 times earnings um if a company is going at 15 20 30 per annum you're going to be better off buying that investment than buying putting your money and earning three or four percent interest yeah every single time and it's so funny that is probably going to grow 10 15 percent per annum and and make you better off down the road yeah it's so funny yeah and then you you say this and you're part of a company jamty that i seen last night i know a friend that jamty is one of the few companies that actually makes money from real estate and it's not really praised for it but I'm like no guys they do it one that I think you guys got burnt when you did the St Thomas

scheme and I remember that I remember my food saying never again in that way and then they did the one at Manor Park and it worked yeah I will see that consistently work since then well we originally original concept was to do smaller schemes within the corporate area. The first one worked out pretty well. We made money from it. St. Thomas was, on paper, the numbers looked very exciting. It looked like we were going to make a killing out of it. But that scheme suffered from a multitude of of issues um and it's it's it's

that's those things are going to happen from time to time we we when i was called to the board after I said that I'll go then the company had bought the supermarket up in Manor Park of Rogers Road and I said boy if I were there I wouldn't have recommended that purchase as my knowledge of supermarkets is that they are just very low low margin things so happened that that supermarket paid for itself within a year less than two years it paid for itself within a year, less than two years. It paid for itself from the profits to the extent that when we looked at what it was doing, we said the building was for sale. We said we need to preserve the profits of that entity.

We eventually bought the building. And it has kept on being a profitable operation ever since. That encouraged us to venture into Montego Bay and its local growth in Savilemire. Then we recognised that Savilemire operations started to break even. but we came to a conclusion it was too small, and so we sold it and paid attention to what we did best, and sold Montague Bay. But those are learning experiences, unfortunately. The Montague Bay one was costly.

Savile Mire wasn't all that bad. So we come back to base i don't know that we'll never get into that type of thing again or or or not but um the one we have provides it's useful to have it it provides intelligence um and it it still maintains profitability and as you might have seen with spending money to do some upgrading of it and some expansion I think when things come back to normal it should deliver superior returns than what it has been using in recent past so So you live and learn and other reason of inadequate capital, your mistakes are going to be, glad if you don't make them, but you know,

you don't know what the, everything that the future holds. You move forward and hoping that the decisions you have made are the best. And sometimes they turn out that way. Sometimes they turn out even better. Sometimes they turn out the worst. And therefore, what is important is if you have made a wrong move, is to recognize it as soon as possible so you can take. And it doesn't always happen instantaneously because you still think

that you can correct some of this some of the problems but once you're satisfied that that's the end of the road then it's time to call call it george and move on yeah i really like the the clear the clear-cut thinking there the practical thinking there we should ask that the regular questions that I'm sure people have you know let me ask one last time with the top ten people I saw the PE ratio that you have on it just yes clarify for us it's a PE projection that you do all right what what what what is done is that one um there was some indication that a period of 20 is seems to be where the target of the market was and the number of companies have somehow have some of or shot it or people again it's a it's a guide to as to where what the stock may do if it gets to the p-ration and the earnest for shares are

earning per share of the individual stock is close to being accurate what we're doing is with making a projection on each individual company and some of them quite detailed like a mini budget some others it's not as easy to do that some is quite easy so like a bank is more difficult to do a bank because there are so many moving parts that are different things affect them there's foreign exchange movement is there's no charges and also things there's um bank charges and all sorts of things you just can't predict exactly what's going on to the foreign exchange rate you can't

predict accurately whether they're going to buy the same amount of foreign exchange that they did last year or not so there are there are things that make it but one of the things that happens with banks is that loans are very important and if loans are growing you can easily fairly accurately predict what they what they are the loan interest income is like the net interest income is likely to be um and therefore if if the loans are going at a certain percentage the business will go at a certain percentage and you can use this other percentage growth and try and extrapolate from that as to what that may mean for profitability and growth in profits so we we do that projections on on the individual and

on my system i have a four-year forecast and each quarter the things are updated based on latest set of results or we go through that process on an ongoing basis and we use these projected P ratios and well if you look at the top ten you'll see the peer ratio of 20 and we have tied the one in the one in the on the stock market report is is essentially projected earnings per share and the stock price works over the peer ratio should be so it's what if the peer issues work or based on the projected earnings and the stock price yeah it has the target the ratio has nothing to do with like report that comes in I see I see insider on a on a trading day basis where that

is purely a exercise as to what our earnings projections are and what the stock price is. And that will change, the P ratio will change on a daily basis as the stock price changes. The top 10 or top 15 is a projected price is based on an assumed P ratio. And I think the assumed one is something like 20. One can vary it according to what one, you know, one can discount the P ratio

or increase the case might be, because I say the P ratio going through or the P ratios for the main and junior market are going through changes looks at it mean market p ratios at a higher level and the junior market currently but then the junior market we look at the individual stocks um and this beer now so far this year that the junior market is up 7.5 percent may not one or two percent point so that the while Jamaican teas even see a number of junior market companies of Caribbean cream you have see if if you have mailed back you have um lombard depot um and a few others that have actually gone up

in price since the end of the year and in the main market you probably have grace and q q q q w i simony and maybe one or two others that have done one or two percentage points so the the to a few percentage points so the the indication from our standpoint is that they have better opportunities in the junior market um to make money and i think part of it is that junior market was neglected um over the last not last year well last year yes but the year before and maybe the year before with the pressure of of ipOs that were coming to market a lot of individual investors cleared the IPO market considerably and there were so many of them coming and then things like Transjamaica that hasn't gone up there's things like with them people have left their money in many people left money investments in them and I've already

fully deployed those funds to junior market stocks as the case might be so you've got you get things on it you know get an elongated list of companies on the market so there are many more companies for people to invest in than they were two years ago so unless the under step by has increased significantly and then you have companies coming in market IP are sucking out additional capital. So there are those factors that are at play in the market. But I would say I'm now fairly satisfied that the P-Ratio of 20 is probably a benchmark, but I think you'll see some stocks,

as I said, like in the QWI case, if the net asset value and the profit of QWI is gonna continue to grow, then if you can't get the stock, the stock is gonna grow 100% and you have to pay a slight premium of the net asset value now to get it. If that's the case, it's not a bad price to pay. I mean, you buy other stocks at a premium

to the net asset value. There's no reason why, if the managers of QWI can deliver solid returns. And we've gone two years with it. We outperformed the stock market in two years in a row the local market um doesn't necessarily say we do the same thing for a third year but we'll see um how that goes but i believe the um i mean you guys do analysis if you can, the market is slow to analyze new data in my view and therefore you see opportunities. I mean the last output results that suggest the stock should be in the in the in the five six dollar region uh on the market

two days before the price has moved i mean it's an ideal market to better the marketing yes you can grab things that are going to deliver for you i mean jamaica t's yes people push the price up I mean, Jamaica teas, yes, people have pushed the price up, whatever it is. But in my omelette, you use a P ratio. And it reported 5.5 cents for the first quarter. If you multiply by 4, it comes to 22 cents. 22 cents times 20 is $4.40. And the stock is at $3.27. So it's $3. really in terms of close price so pe a year 22 would put it at like uh what is that 14 times pe which would be low yeah right so

there are those opportunities and who knows i mean that is based on one quarter's performance of QWI. I think for the quarter to date, if my memory serves me right, if my mental calculation is right, we probably have made more money and that asset value has translated to more gains than for the entire quarter to December. So if that trend are close, if it is not there is not far from it so that trend were to continue really we can we got well we're not we haven't finished two months of the quarter and continues then you're looking

at the possibility but the necessary value at the end of the quarter could be, and we talk about things like race, so we can talk about Jamaica Tees, we can talk about, I don't know what will happen to me at that, but Lumber Depot and a couple others that could, if you take my assessment that the Golden Cross is going to push the junior market up more, it means that there's quite, and then later on there's gains to be had from some of the main market stocks. And you're looking at higher earnings in the March the in the in the march quarter for qw and what impact it will have on on

positive impact on jamaica tees jamaica tees um can continue to perform on the export front and the local front then um you know you could be looking at better second quarter results on what the first quarter numbers are saying. That's left to be seen, but I'm just suggesting to you that $4 something may not be, deliver part of the potential gains that might exist there. So the potential is significant for going forward for a number of things so it's but there are there are several opportunities there i think in the market

for in the junior market in particular for for gates we made um and they are one or two sleepers i i believe that a merger i'm a merger buyer owner um you know my my i use two things they had a phenomenal third quarter some of it is recovery of all right back of bad debts when you have that strong third quarter which is usually not the strongest quarter and you have the December court to come on board and you have you have construction sector growing at seven or whatever percent it just tells me and they look like they have had improvement in efficiency tells me that is a sleeping sleeping, sleeping, sleeping giant. Yeah. That when people, because people are, I mean, I mentioned the RGR situation. People are always making losses or he hasn't performed.

So let's look elsewhere. We look at NCB. We look at, we think we look at Anjama or whatever it is. So we're looking at things that are not necessarily likely to perform very well in the short term. But all the things that are there that seem to have the potential to deliver outstanding performance, we're not looking in that direction. We probably look at it belatedly. Yeah.

So usually what we do is we ask, we call it it we ask our guests to run what we call the earning season gauntlet where we ask them to pick two or three stocks that day whatever time period they prefer and what stocks they think but you you kind of went ahead because you've told us great things about jim t that's not expanding um i heard you mentioned lumber in there i know you mentioned burglar which did have a strong so i'll ask you to just throw one more in there maynard junior your choice um i i i'm gonna give you two i'm giving you a caribbean caribbean cream actually i'm giving you a caribbean caribbean cream and general accident right um and caribbean cream from the standpoint that you know they had lower cost in some in a number of administratively as well as in direct operations administratively because they shared a cost with scoops,

which is, which is, which is seven hours high school operation and they have set up depots and their top line is growing. So the, I think the other things that are taking place. The December quarter is there. The quarter ending in February is usually their best quarter. So, although the October numbers look relatively small relative to the full year numbers when you if you if you extrapolate or project what the growth in revenues are likely to be for the final quarter and assume that costs are cost

are gonna remain fairly static it's gonna have an outlandish load in profitability I'm bearing in mind at last what you see is that last year in the final quarter they are yeah they took on a significant amount of depreciation charge in that quarter it wasn't spread out throughout the year um so it not the final quarter significantly but that's that's a comparative exercise. The more critical thing is what will the earnings for the full year come up to be and My expectation is that it should be in the 50 cents region if plus or minus something or likely be higher than that

Than negative. So so again if you use 20 times earnings and then for the next year which we are not yet in which starts in march um revenues should continue to grow and especially if the economy because that's one of the things that we haven't spoken about is the impact of the pandemic we mentioned it a little bit but you know you look at last year a number of companies that the business number of them shut down after March and generated little or no income and therefore losses. So once you get back into intoide somewhat, just by not locking down businesses in the quarter, a number of companies are going to recover significant losses that they made last year in this year.

And therefore that alone will boost profitability for maybe two quarters. So people like SOS, the Jetcons of this world, that suffered express catering, name them. Main events, they will see improvements in the profitability for that six month period because the bar was so low last year with the poor operations that they enjoy.

And that is something that people investors need to bear in mind they could see shockingly positive results um that would change the full year numbers for a number of those companies um so i think um caribbean cream is back on some sort of a roll that is going to change the Earnings per share and certainly stock price. I think people are Making the the main mistake of selling stock down to $2.50 or less than that sometime late last year And I think people are people have to sell but if you look at this order a queue you find that there they're not what's selling in the stock and that's one of the critical things that one as well that's one of the glorious things

about the trading platform that exists both on the day trader platform as well as the nasdaq platform people can look at because people don't hold it if you fully understand the implication of the order queue all right it is it's loaded with some information that can tell you I mean if you see all of you we are a pile of people of stocks and offer and of the beads are not strong it tells you you should hold off unless you know that results are gonna come what I'm gonna change a picture or what I know it tells you to wait or if you're putting a bit put your bidding low closer to where they heard it but so the supply of Caribbean cream is limited.

The supply, the bids are a little bit distanced from where the offers are, but we need as soon as they get closer and closer to the, when results are likely to come out, those bids are going to move up if the port if the offers don't disappear and you'll see a different scenario um general accident um there are particular year in 2019 and expectations were that 2020 would have been substantially up expectations were that 2020 would have been substantially up. The figures are released to September. They took on additional and made additional provisions for the Trinidad

operations. But so it's anybody's guess as to what I shouldn't say anybody's guess, the people inside know the numbers. I don't know what the numbers are going to turn out to be. I had them initially at about 80 cents. I was told that internally they had them at 70 cents for the last year. The year before they earned 40-od odd cents from normal operations. I expect them to come up to about 40, 45 cents for last year, which would still make them undervalued if that's what I had. I adjusted the 35 cents, but I've adjusted further in looking closely at the figures.

I figured 40 cents is where I have them but I wouldn't be surprised if we came up with 45 cents but my focus is not so much in that year my focus is on what may happen this year and there was talk about premiums being increased and if premiums are increasing means that they are going to generate more income and premiums have to increase across the region and they are going to generate more income. Yeah and the premiums have to increase across the region and they're going to increase. Right so they are getting commission out of a lot of the property insurance that they write. So they'll end up with more retained income and they are expanding through the Caribbean.

So it's for me and they pay a decent dividend so it's a it's pretty much a no-brainer it might be off instantaneously but i have no doubt that it will be a big win along the road i think they have gotten the nucleus of the operations right they can build on to play the charts at your show where those charts from you credit them and that's from a website I'll give you access to it after the website my money j.com it's one of those things that together for again for the retail investor because retail investors really have I think about the shard another stick create something to help retail investors portfolio and so on I just see I use it heavily as I pay attention another stone portfolio in it also also every time I report release I update our report is released i update what your holdings are in terms of where they are

it allows you to have a leap of look instead of just here at the nav it also pays attention to the nav um and a bunch of other things i'm going to give you some access and i'm sure everybody watching at least will also want to have access by the time they hear this income mymoneyja.com you can sign up um it's always free some is free there's there's there's three tiers but it's something that's supposed to help retail investors really it's not that i care about so that's what it is okay um so what so what are your thoughts on the on on things that are going on you know economically Things that are going on economically. I mean, there's a pandemic. There's people, some people complaining that the lockdowns are affecting business.

You know, there are varying views about it. It's inconvenient. You know, you have wealth, you know fortunately, you have up north where politically things have changed and focus clearly is going to be different than it was over the last four or so years. Then in Jamaica, we have a situation where, yes, we just had an election a years, a year, about a year, some months ago, no general election is scheduled for some time. So, you know, ostensibly policy, policies will, under the circumstances can be maintained, all things being equal, if they don don't if they fall off from the pandemic

um it doesn't create major dislocation yeah you're gonna be saying well crime is crime seems to be a a bit of a problem and this is awesome so and more of a problem sorry more and more of a problem yeah well yeah well it's a problem I've been with us for some time and and then so at least it's still more than it was at the peak of our recent past true true true true what what I'd say is in terms of my view of the whole thing is that yes I think we were at a point where we were really blowing up economically we were starting to see some of the benefits of actually addressing some of our financial deficiencies inefficient than i did and um corona kind of came and and and stumbled

that a little but i i i think that what happened is that the people who are serious people who are on top of the game and what they're doing are still on top of the game and not doing corona really was for many people i think just gave them more time um and so i think that as we see more vaccines rolling out if it works and if we don't have an escalation in terms of any major countries or anything i think we will see the majors and carry back the jsc the major companies on the jsc rise in terms of their business i think this ncb really spread its arms properly how it has spread across the region to start seeing the effect of that some of the smaller financial companies the maritas the jmps will see a lot more coming out of them in terms of

their growth and their continued growth and their growth means that other companies will continue to grow um i think that the financial space is going to has been blowing up i think you'll see a new industry created in that sense uh people who aren't necessarily coming from the industry doing what for years you alone did so i think that i still don't know stay alone for many years but now we will see that actual industry growing i think um for other companies that are directly affected by Corona, Tourism, BCL, Margaritaville, I think has not started to ease

and start to travel again. We'll see some things coming up. And I think we'll see some good pivoting also. I think we'll go and see. Yeah, I think pivoting would, you mentioned the lockdown that a big part of why other businesses can't really operate like a palace amusement because of their usual timing for the showings is in the evening so because the lockdown we have some issues around that because

quarantine and curfew starts at a certain time so with the vaccination and i think jame we largely So with the vaccination and I think we largely led, we will learn more how to deal with the pandemic more. So you can see other people, other businesses, they're not where they are when the pandemic just came. So around March, they're in a very different place now. Yeah. Recovery for some people. So that problem is a part of the entertainment industry. So many events feel that that um tourism you see

esl and margarita that randy mentioned so until we reach a certain place with where the public is so in terms of flights happening you know it's like an easel comeback um unless the people are outside of the airport and i'm i'm doubting that one happening right now. So CPJs, they're direct input into the hotel business. That's a problem for them because hotels where they're operating now, they still have much less traffic than they had before. So I think we need some recovery for certain companies to come back into the fray at a certain level. to the free at a certain level but they they they they um when you have miss ups one one of the beautiful things about investment especially if you're not heavily invested in in some of those companies it gives one an opportunity to buy in by low end for example cpj one of the things i looked at is cpj main event i wanted to see main event because i started to buy into main event um and cpj um early last year because of

i i initially felt that they we would have been returning to normality much earlier than and we would have been returning to normality much earlier than it turned out to be. But one of the critical things for me is, as Kerry Pierce says, the cash burn. So CPJ made a loss of $800 or whatever million in the U.S. dollars in the December quarter. But the depreciation charge is a million dollars. So the cash burn theoretically is not negative. It should be building up on that basis, even with the losses. And if the numbers, when you look at the numbers of the same I just looked at the December JT GTA numbers December 95,000 visitors came into the country

compared to November which was 50-something so June July was 40,000 so if December is not usually the best month of his arrivals I'm sure what is what the post December period look like but if you can if each month in grow it may be on jet of remain around just also why it would mean that the the demand for car car Caribbean products would be greater when you compare this the September quarter revenues um for CPGA I think was nine billion dollars and December one was 15 million. So you have a significant growth in sales, in revenues, and the profit in the period actually declined. So those are some of the features that one wants to see in these operations. When you finish this quarter all of to make a

tease profits and milk back and carry on flavors and lumber people the question is where you move your money to next therefore you need a new vehicle and therefore the ones you're gonna look at the next set that may actually come up with outstanding outstanding profits so so um so it's a matter of looking i mean i medically supposed to came up with results yesterday um for the december quarter um the final quarter was a decent quarter 10 cents per share better than the previous quarter but from an ongoing earning standpoint because the the previous quarter day there whatever they did with the finances they wrote off a significant portion of the upfront cost which I'm not sure

that that is the appropriate accounting but if you you normalize it, the finance costs, for what it would be in, what it came out to be in the December quarter, it changes, it means that $36 million, $38 million to the bottom line should be excluded. And one of the philosophies that I use, we have used, is that I'm not interested in one-off type items like saying separate that that 800 million dollars um i cut it out it don't mean anything to me in terms of my evaluation of the

company um and so hold on there hold on how can you say you don't mean until for the violation of the company because they got that money for me yeah but then the question is you know you know how to get in this year they're not going to get to next year but they have 800 million that they need to be able to use and they paid out as dividend they did that was a heavy dividend yeah yeah yeah but but in valuing the company going forward i can't take i don't take one one off type expense or income into consideration when I'm doing a valuation of the company. But you can't. You can't.

Right. But some people just look at the overall figure and just multiply by where to rate it and buy the stock. But if those earnings are going to drop out in another 12 months you're back to base one so one has to make adjustments for those things i project based on always looking at the future instead of that happened behind you if you're always looking at what's coming i'm looking at ongoing earnings exactly yeah what are the ongoing earnings of the company and so if you're looking down the road down going on earnings for CPGA or Express catering could be quite positive depending on what time frame you're looking at but in the case of CPGA we know that this fiscal year is going to be a not going to be a particularly good year.

But the next one, starting in July, would be very positive because by that time, most of the vaccinations in America would have taken place. And in our case, we would have been on our way in vaccinating others so you know unless something else crops up then we should have a clearer runway to take off or the plane to take off than was the case in the last 18 months i i agree with you i agree with you and it's a it's a simple point but it's a sailing point that we can't load a one-off you should put them in their place look at what they are value them and then put them in their place for some reason I don't know why people think that I like that you put it very clearly I will waste time on that I like they put very clearly because that's exactly what's it also you put the one off in its place separate

is exciting to me because of their earning opportunities actually yeah and the business the future of the business not that I want this stock is the stock is profit 20 times yeah times normal earnings yeah for me currently I can do yeah I think for me well I think they have a lot of I think they're looking at a consolidation of the consolidating and enlarging their wheat business and their milk business especially with regards to exports and so on that's what I've heard them say as to whether or not the impact of that will be enough to drive them up is another question yeah because

separate is so big that they need a lot to push it up in a big game to give you big gains yeah yeah well man my understanding is that the distribution business is likely to expand whatever impact i will have is left to be seen but um that's my understanding i mean a distribution business in my view a distribution business is a lot like a supermarket business lots of revenue very very thin margins well yeah but it doesn't necessarily it doesn't necessarily mean it means additional profit you know sorry additional a significant the question really is in terms of the capital that you're gonna only what retain on that capital you're going to make

and and the distribution may or may not be all that small theoretically i mean the concept we have is that let's say supermarkets um have low low margins what i found in a supermarket margins about 20 25 on average which is not which is not as shabby as if you get the volume, then you'll clean up and the issue is to get the volume. That's true. And, you know, like the way you have a supermarket in Kingston probably gets more volume than a supermarket in Inland Town. probably gets more volume than a supermarket in in in in town so it may there's no cost involved and maybe more capital in terms of actual dollars the dollars are working much more efficiently than in any income so so

there it's if it's a property profitable venture that doesn't require dilution in EPS, means that the scale of the distribution is already big. So, they find easier efficiency than a smaller distribution company. Right. right so maybe to add something else doesn't necessarily mean a significant additional cost because in many cases distribution may well the guy might provide the terms of the the credit credit arrangements and sometimes it might be beneficial the guy gets longer credit and he he has he provides shorter credit to the people buying it. So it can work in a number of different ways.

Oh yeah, there's lots of opportunities there to come. I think, well, for me, I'm also biased towards where I can get heavy impact, so I'm heavy junior. You mentioned Lombardypo, which is heavily undervalued in my view, going to surprise in the next quarter, I think. The one after. Yeah, and the one after, and they're currently undervalued in my view, going to surprise in the next quarter, I think. The one after. Yeah, and the one after. And they're currently undervalued. I see them easily as a, off the top of my head, I'd say a $4 or $5 stock.

And they're currently, even though with a little bit of push that they've gotten there, I think they're maybe $2, $2.15 is what I'm looking at them at. So I actually like Lumber Depot heavily, and I've been buying, on their mat so I actually like Lombardy for heavily and I've been buying and I continue to buy actually because I can see this as a five dollar stock and it is currently undervalued and hidden meaning it's in the noise sometimes we lose track of everything when all the big noise I'm not sure I'm not sure it's hidden because the truth be told when you look at the market

that is one of the few stocks is actually one of the i think the issue issue with lumber depot has to do with probably the second largest shareholder um and so it it and so it if it goes up to a certain degree people are going to to am people are fearful that you will get a flood off of of selling second second second second second largest I'm not second largest actually largest no okay okay I see I'm wondering if it are you in the way that some people are on everyman when I'm not I'm not fretting about it I believe that if you buy the stock at the present price have a one year time horizon in mind it happened before and fine but I'm in a market that that is total number total number she's or 500 or something. It's not. It's a small number. Top 10 owns 456 million,

which is a little over half. I think it's less than a billion. I mean, I guess, because you hear us, it's 706 million to 37. Okay. So the situation is that but it's not a stop that is is gonna be deeply held by big owners and therefore in that scenario you could be faced with a situation in which selling pressure comes on and and that selling pressure would cause you to have to wait some

time for the payoff I get you I get you I get you on my side I'm not the part of your mid is I mean if you're in an environment where interest rates are where they are, the reality is if you can double your money in a 12-month or like over 12 months, in a few years' time, when you do that, you'll be looked at as a genius. So it would be a bad rate of return if you can do that in a year. Well, they've returned to me not 100% yet, but they've returned quite a bit at 215. And I expect them, like I said, I expect them in, within 2021, I expect them to hit at least I have no problem with the with your projections I just when it comes to certain investments I am a little the time the time factor I provide some amount of elasticity for it because it probably should and probably will. It's left to be seen whether it materializes, whether I expect it to go up in value.

Because if you look at what was listed beginning of last year, end of the previous year year let's call it beginning of last year and it has now gone to four dollars but you know we had a forecast from early last year or something like 20 cents or close to 20 cents per share or 20 i don't 20 or a little over 20 cents per share but we have about 20 cents or some time um and it has taken quite a bit of time to get there fine last year was a terrible year in terms of the whole market but you know that's that's that's my expectation and I'm and it's gonna happen it it it might look a little bit outlandish at the time but um the reality is that you're gonna sorry the reality is you're going to eat at the nine months and we know right last part was heavy for them so they're gonna break 20 and easily

well i don't think they're gonna break 20 cents easily but maybe you know something that I don't think they're going to break 20 cents easily, but maybe you know something that I don't know. The allies had a discussion with someone before last, and they said they expect 25 cents or whatever. For them to get 25 cents,

they'll have to double the revenues in the december quarter right year over year um and i said my forecast is about 50 50 or 60 percent i'm not saying they can they can double it but i want to bank on a dublin yeah i i I don't know if I'd bank on a Dublin. Yeah, that seems heavy. I would maybe put them at most 8% per quarter, which would bring us up to 22 cents per year. Well, I'm suggesting for you to get 22 cents.

You probably need to grow the revenues in the quarter by maybe 70%. I suspect that they have done something along those lines 70 75 percent i suspect so i suspect that this christmas was very good to them but again speculation until we get the results in our in our dual are you saying that they run run-up in the stock price and the inclination to go with four dollars is is is um street street wise information i don't know what you mean when you say streetwise information i suspect that this run-up is heavily speculative people getting ahead of what they expected to be the case all right retail this is the retail investors that pushed it here however i believe that the business performance

based on if you look on the overall customs jamaica import numbers and they're saying importing and how the christmas season has gone i suspect that Neil Park has on it's her and seven cents in the last quarter much in the same way I'm pinning my lumber my lumber expectations on the fact that business itself might only have increased maybe to the tune of seven to ten percent for them however the things that they are selling commodity prices have flown huge the cement has gone up lumber itself has gone up 80 to 100 percent in some places it has gone up week on week and we own the government started buying in early in the years so in numbers is I am a lumber surprise I would not if lumber came in with a revenue figure that was much higher and a profit figure that was easily doubled I might be being a little less

there but I would not be surprised by that because of the price increases of what they've been selling price increases especially of actual lumber numbers in the quarter that they're still in lumber has cement has gone up heavily um steel has gone up heavily and those things are their their mainstays paint has gone up heavily but we see the rise in cap cement business the rise in burger cement business the rise in burger paints business the rise in art art manufacturing business the rising tank wells imports and and they're selling that tells me that the front line which is something like lumber that front line company very likely has seen a grand increase in its prices also and it's perfect its margins also even if overall units sold may not have risen that much

but i'm under the impression that units sold have also risen highly so i suspect lomba is going to surprise and bring us bring me because i'm heavily invested and i continue to buy so bring me quite a bit of a a piece of surprise maybe you're into the early age in I was not at the age I'm very I'm very afraid that is Corona to us I saw young people had no problem with it I don't ever want to find out the hard way and i i appreciate that yeah are you so you have so you're so you're you're you're top five stocks or what it's a big question i'll never answer the rest of the year if the legend asks i'll answer um okay thank you uh qwi qwi i'm gonna put under that um lumbar is going to surprise me heavily

and outside of that i don't i'm keeping my best videos for for now even though late in the year i expect some good things i suspect caribbean is going to pay a dividend for the first time in in what 12 13 years yeah and if they do pay that dividend i i expect that um the crowd reaction to it is going to be very very strong my reaction is going to be very very strong and i will always bring back in ncb at the end there because ncb people aren't paying attention to them no one even this 32 percent drop in profit that people are talking about no don't let that be you ncb no it's not the ncb with a major financial group that we're not acting like it's a major aid by the end of the year the athlete either first dividend free up and they paid at first and then again they're

going to go back over $200 when I would I think when they report their order without the discipline quarter yes that they're going to have a dividend announcement with it and that is going to send the pensions back in, send the retail investors back in. And that will see being pushed close up to the 200 region. But I'm willing to wait until that point. And until then I'm banking on lumber, I'm banking on, I'll tell you what,

I'm banking on jam tea. Jam tea. Jam tea is going after manufacturing. banking on i'll tell you what i'm banking on jamt and providing a reserve or a benefit to be able to get in on that new ip. And as a result, that's a step that will heavily influence Jamtii's rise. And in turn, QWI. And I know that certain directors have been buying up

Jamtii very heavily. And I know that QWI has also been buying up Jamtii heavily. And QWI benefits from the rise in the FTA. So if so if he has a good rise and people that i can benefit from that and again benefits from it and i am hoping to just be in the middle of all of that benefiting from the the you know plus it's not that manufacturing growing manufacturing business with a strong export arm. That's not the cash. That's a strong business on its own. So I'm very interested in owning that manufacturing arm separately,

in the same way that I was interested in owning the Lumba arm of the new boy. So that's right. What does Danai? Jamty as you know is a favorite of mine. I've spoken heavily on Jamty's. I think I have the same thoughts as Randy. But not just the manufacturing arm spin off is an additional for me. There is the big loss for QDBi $411 million loss I think last year coming off the trade in 12 months when the current number sits I expect a good

I expect good results from QDBi coming into that on top of that so right now for the loss coming off the 12 months plus the good numbers going into the quarter, I expect some good from Jamtii. So Jamtii is a big favorite of mine. I've been buying, I plan to buy more. Signal, Signal is a favorite of mine. With the new money they're taking on, I expect that with new investments made

and the income should be coming up, they're reducing the debt burden so because the interest expenses should be falling coming up right so signals this is a good pick up man I will be buying it no no hmm I haven't I think the 1470 was a good price wait the fall was expected so I think I don't know be a good time to get again the only issue i can't see coming right now is the when it took in the extra money from the race then they might have some issue with the fx but they did allude to some something with that with they have a situation with their phone with their bank so they might have hedged against it so i expect some goods to come from that uh next lumber but i don't like i don't want to stay around this point um fontana actually

fontana did a good turnaround for the business for the last he could see where the business people might not expect to hear this from me and Randy, but Fontana, there was a time when Fontana was overvalued in my eyes. It was at value. It was around $8 plus. And that to me seemed like a fair value, a fair future value. At the time, it was expected to be overvalued, around $6, $4. But now that the pandemic hit and the business was actually impacted but now they're moving into a bit moving

with better operations they could see the quarter before they did well so december quarter should look good to me should be great actually so fontana are betting i've been betting on fantana there are other things but active buys right now, not so much. I have carry cement because I expect good results from them and looking at a dividend probably. Oh, key. Sorry. Oh yeah. Actually, I was trying to ignore keys in my screen. You know my situation with key. So yeah, Key is good. I think we already spoke about what we expect

for this quarter. The difference comparatively, from the last quarter, this quarter. Last, same period as this quarter coming in. So let me throw a span in the works. All right. Alliance, alliance, whatever. What is it?

Alliance investments? Yes. Alliance financial group or whatever that was. What is exactly the status of it? Oh. Indefinitely postponed. Yes, it's postponed until further notice. It seems to be up in the air. What could be the factors that interfered with it?

Boy, John Jackson won't get us in trouble, you know. I think Alliance is an example of the importance of the broker and the broker's due diligence in the listing process. And it's a live example of how perception influences a listing because I've heard it said that the perception now is such that they can't come back to the market. No, I don't buy that they can't come back to the market, but I think it would be very hard for them to come back to the market with how this has happened. And I think that if they come back to the market they almost have to do a full explanation of what

is that and why you left and why should we have this own good can be it can't be that there was any fault on the company because then people gets other people's right stop on that point they can't be so when they do come back and they if they do give an explanation i said it has to sound good because other people will be looking at it as if it if it sounds like there's a fault on the company and on why they couldn't list this and then people people are going to take that badly yeah i remember sorry what was said you know it was said by them that there is something to do with a sister company that the directors are also going to own. If you come back to market, you're going to have to give clarity on

what that is. I feel safe as an investor. That's my opinion. But what that company is regulated by FSC? FSC. No, no no.

BOJ right? Not FSC. BOJ, one hasn't heard BOJ, but BOJ doesn't have to say anything. If they have gotten to where they have gotten, where the prospectus was issued so the stock exchange went through it the register companies went through it fsc seemed to have gone through it and i presume give them well unless the fsc didn't give their blessing um but wanting to hear instantaneously about the fsc blocked it from the from the issue was posted. It happened sometime afterwards. In fact, it happened a few days before it should have opened, if my memory serves me right. It's strange because they announced they're listing at the start of 2020. So there was more than enough time in my personal view of this I do

not have inside information I think an entire year and then it was yeah I know it's themselves at the Jesse conference at the start of 2020 before the pandemic it yes you were saying the big deal was we're about to list so that was a big deal and you'll hear about it in a few days. The pandemic hit and they chose to pull back. I know at the end of the year you come forward with it. You can't go forward

to it. So what is the street saying as to the real reason? Because I'm not, I can't buy the argument about a sister, a problem with a sister company. Right?

Because I can't see the connection between. Honestly, I can't see where a sister company would affect the listing of this one. I can't see, I can't show the sister company what, I mean, what could, could have could exist with the sister company that I mean it's not the the shareholders are the one selling shares not even a company raising capital so I So, I don't know that the stock exchange listings are so regulated that all the directors and whatever need to be virgins, right?

Not only virgins, but they must not have looked at any woman or man as the case might be in their lives. Well, you know what's not to happen is not worth it, man. Well, since we're talking about individual success, that one just came to me. Yeah, I don't know what this is. The streets are saying many things, and because this is something that we broadcast on the internet, I don't ever want to repeat everything the streets are saying. Well, you can cut it out. I'll cut it out, because the people need to get this. Because you're raising a good question. that we broadcast on the internet i don't ever want to repeat everything the streets are saying

cut it out but the people need to get this for you because you're raising a good question it's a question that everybody wants to know um i don't know what it is i can think of certain rules that i know that in a sister entity that might affect you and the fact that what rules what rules you know i take that back you know I think of any rules I can't think okay you're certain you have to it's on properties apart anything no there's no rule regarding listen there Banco to make a regulated so they fit now the bank is maker fit and proper regulations the reporter does come out hasn't didn't speak to anything regarding the company itself he spoke to fit and proper regulations. The report that has come out hasn't, didn't speak to anything regarding the company itself. It spoke to a sister company.

And the company is still doing business. And the company is still doing business. So, it just seems strange to me that that it's okay so it was put off a month then the month was extended and a good point is why was it held so long because what was really really the issue for it to be held that long and then we're still not getting a go ahead so um it's it's it's and you are suggesting broker issue but why would it

if if if we understand if if what my understanding is theSC, they said the FSC had no objection for them to issue the prospectus. The FSC doesn't necessarily talk to the public, so to speak. So if something has gone on, they might call their broker they call the solicitor attorney and speak to them but I don't know

I've tried to put my brain power on it which is not often times great and I can't I haven't focused significantly on it but you know I thought I can't see the connection between a sister company and it so so what did you know you know what I frankly have not come up with anything because I can't see. I mean, the company, what I see, and I don't know that's an FSC scenario,

is that they took on debt towards the end of the period it would appear. They take on significant debt, $6 billion or whatever the figure is. They are selling shares to the public and none of those funds are going to the company to either alleviate the debt or what have you. So the question is what, you know, well, I can't say, I mean, a company is free to take on debt. I don't know about the FSC or the Stock Exchange can tell a man they mustn't take on $10 billion in the balance sheet and sell investors selling shares to the public of their own shares.

And they would have given somerset i mean maybe maybe after the the death with the debt the debt was taken on and i'm not suggesting that that is but that's the only thing i can see in looking at the the numbers that the debt seem to be have been taken on relatively but certainly since the last previous year's financial statements um and it's talking to investments of some sort um now it was those funds taken on to shore up another entity? Well, that's speculation that I don't think the numbers showed us, right? I can't assume it. When I saw it, my personal assumption was that the listing was step one of a multi-step process. I wouldn't have been surprised if a little little after listing it did an APO or

or our rights well would not necessarily issue I wouldn't have been surprised if after listening they did an APO because they don't they don't they don't they don't need the money every general rating billion dollars a year or some sort or whatever the figure was substantial cash flow relieve the debt so if you take on the heavy data a little before you leave because they had to cash there yeah but why spend my money when i can spend yours well yeah but i i i first of all if you're gonna if you're going to go to the market to raise funds issue shares you might as well do one clean thing and yourself the company

gets some money and if that's what you want and if you will get some money what they want to do because the shareholders are selling so they personally would have gotten money yeah and then I suspect that the company with the things that it had planned again there's this is enough fact this is my assumption that it had planned I expect that they would have had to raise on top of that in order to in order to get more done and that raise would have come after listing I was seeing that before it's our first rock coming to market and they said it in their prospectus that they plan to raise money on.

But that's a different, I would say that's a different animal, that's almost a startup, right? So. True, but I'm giving the idea, I'm putting forward the idea of a listing, a company listing and then raising a little after listing, which isn't necessarily strange in the world I don't frankly I don't think that would go very well with the investing public

that they would take out nearly two billion dollars not from the company but from the market without company for company needed capital to raise capital for the company that was something concerns raised about that that was something that a lot of people had that personally you know i don't have an issue with that but again i don't view the market in the same way and i think maybe you're you're coming from an accounting point of view which is strange by the way i'm not used to accountants investing you are a rare beast for that most accountants don't invest as i'm sure you know yeah yeah so it's rare for me to hear that but I personally you know if I if somebody invests their funds into

operation and want to take out some cash I want to sell the shares I look at the company is this is worthwhile investing in you know if you want to take some money and let me participate in the company i wouldn't otherwise been able to participate in and i think it's viable then thank you very much for doing that um so i don't have that problem other people have the problem but you know if you if you sell 20 or 25 percent of your company or 30 and you still hold the 70 percent i would presume you want to preserve protect the 70 it's a lot everything now is a different matter right um so i do all those problems um if the company is viable and can continue to be viable and I get an opportunity

to invest in there and I believe it can deliver for me what I want, then fine. Take whatever shares, sell more shares to the public. I can see that, but I don't know what the back end of it was um i mean what was happening behind the scenes and then this hiccup that happened does not inspire confidence at all that's the simple truth and you're right it could have been done together because we think we did that we think we had a situation where yeah some shares were issued but they also took on a selling shareholder but they also should be shared yeah yeah so something clearly has happened that has as as it is requires some some time to to have resolved all right because if it's just the prospectus that needed some rewarding i'm sure they would have been able to do that already

that already but you know what we've been going for a while so let me say thank you to sir john jackson we can still talk after we finish but i want to wrap up there okay thank you very very very much john jackson my behalf of me the list has the watchers and i as well thank you sir I have no doubt that they won't long that we might actually anybody seen that it's what's along you have us you have support from the same thing so we might very well chop this point of pieces what pieces are not thank you very very very much for doing this and um if there's anything you just

want to tell the people sir jackson you can you can you can put it out there right now well first of all um they're welcome to visit ic insider every time we needed off to pay for it um we try to provide people with information that they often don't see in the public domain. Insights, forecasts, we don't always get it 100% right but we believe we always have got most things right. As you can see the performance of QAA that is outperforming most things out there of our nature. And it's part of the educating of the investing public so that ordinary Jamaican can participate in the productive sector of the society and benefit from when we democratize the investment of businesses,

we'll have a better Jamaica because people want to make sure that the environment, et cetera, is conducive to profitability of businesses. And I think that is – I'm just excited. I mean, I'm just excited. I mean, I'm now older than you guys are, but I think the future is looking quite interesting and people who educate themselves

and take advantage and learn the skillset. I think the future is just gonna be exceptionally great. I think I see Jamaica, despite the crime situation, skill set i think the future is just going to be exceptionally great i think um i see jamaica despite the crime situation i think which will will get under control at some point in time in the future i think we will the future is just great and i just want that the germans keep whoever the political leaders are who are in power, keep them on the straight and narrow so that they don't derail their progress. You know one of the things I said is that if Jamaica was growing at two percent per annum from the 1970s until now, it would be twice the size

that we are. Just two percent. So the derailing of the economy in the 70s and some period afterwards have set this nation in an incredible way that somebody needs to really take on board and chronicle and chronicle the history and the dislocation that has been caused by just some missteps that has destroyed a significant portion of the country, driven away many Jamaicans out of this country and still continue to do that because people, as much as many of them would like to stay here, because people as much as many of them would like to stay here and great opportunities overseas and that while that may have been the case many years in the past decades of luck we have lost some of our bright skilled knowledgeable people who could actually be here to help build the country and make it a stronger better better country. And it is now.

We're hoping to do our part to fix that. No, when we can. Sorry? I said we're hoping to do our part to fix that. No, while we can. Well, I'm glad to hear that. And I'm glad that other people are coming to the fore. And it's important that the younger people can find and see a place that they can thrive in the country

and don't necessarily have to go overseas to apply their skillsets. And that to me is hallmark of what is necessary to continue to grow the country and the society and make sure that we have a population of leaders in the future who have a strong interest in the country but also have a broad-based knowledge that they can actually ensure the growth and development of all that they can actually ensure the growth and development of all. All right.

So thank you so very much, Sir John Jacks. I keep calling him Sir. He's not knighted yet. But I said Sir John Jacks because I guess in my mind, I think I'm going that way. So thank you. Nice. I hope you guys have enjoyed this episode. From me, Randy, I'd like you on Twitter.

And me, Danai, and Ethan on Twitter. This has been another earning season. Thank you, guys. All right, guys. Peace out. All the best. So when I called the first time and beat my best friend We were stopping for a party And then we had fun, mum, mum, mum

When we looked, police like crazy Three car pull up, and I was a diver in my bed I had to run left by his door And several men running in various directions Mum, mum, mum, I thought I didn't come to the business today I was rolling, police first deal I was rolling, he was rolling Police stop chase, police like crazy Three car pull up, and I was a for this first year. I was rolling. He can't see that. He was rolling.

All these stopchats. Bullets like crazy. She can't pull up. Not to dive on the plate. I had to roll it up my ego. I'm never friend of my shit. Bullet like wall. I'm the man that I roll.

I just keep on sleeping. I'm with the hot water. I need some room.