PROVEN grew from $20 million, which is true. I remember the original Boardroom pitch, and look where it is now. What a story. How could I not not seek to do likewise, in my own way? #freenterprise #itispossible
Very inspiring. Companies seldom listed at that time. This was probably 12 weeks after the Access listing. I was BRAND NEW in the business. New entrants would never be able to accept there was such a time. We’ve come a long way, JA 🇯🇲
The industry was tremendously unlike what we see now. Firstly, persons more or less sold fixed income solely. REPOs, T-Bills, Bonds. JDX was just taking shape, so bond prices plunged and buys were many. A lot made a TON of cash then. Including FIs. Not many stock traders.
I remember seeing my Seniors at their desks with reams of paper. Like by the bundles. Processing debt swap applications. Rates then I think fell from mid-teens to single digits near overnight, if memory serves me correctly. People buying GOJ Debt in the 70s suddenly found their
holdings above par depending on the coupon. The 2022s were and still are tax-free. The savvy person BATHED, then. So I’m there wide-eyed, trying to figure out where to fit. Those were good days. Boom. Blue Power IPO. JAMT shortly after. Dolphin Cove was in the mix. LASCO *3 came
around October 2010 and that’s where the fun started in earnest. In another 10 years I can tell a bit more 😂. Said all that to say, there was a bit of a rejuvenation. But nowhere near what we see now. USD markets, to my limited knowledge were still suffering from 2008 crisis.
And the rebound that monetary policy would have contributed to. Shoutouts to Big Ben. Locally it was only the most-savvy (and/or wealthy) who were buying USD stock. Them days people with means would just concert JMD to USD and hold the cash on a note. Then the rates fell and
one had to prove their worth in generating gains without the ‘safety net’, so to speak. That LASM IPO was special. $2.50 the October. Around $4.00 the May. Dipped, can’t remember the rest. Eventually got to $10, then 10:1 split to $1. By time it got to $5, ‘I’ (if you get me) was
out, then back in (after the factory expansion/tight cash flow years seemed to have been behind them) around $3.00 and here we are. Said all that to say, we’ve come a long way. Seen much transpire. Companies that had no business listing, went public. Some that I never thought
would list, went public. Money came back to the JSE. Trade volumes (still small), the ACCESS ‘takeover’ and AGM, Supreme Ventures, Wisynco IPO. Wigton divestment. NCBFG/Guardian. Red Stripe buyout ——> the SEMINAL moment in all of this. The crescendo. JSE Index grew 50%+ ok 8-12
weeks right after. I’ll end on that note. That was such an incredible series of events. I’ll mention what I can. I now realize that ... anyway, won’t go into that part. The deal, was at a valuation multiple of close to 27, I think. The market was closer to 9 or so. I had 7 in
mind but my memory isn’t the most reliable. That’s why we have computers, too much info to retain 😁. Anyway, overnight stocks got to moving. It was less about the deal, (to me), but more about what it signaled. Which was, multinational global companies would have an interest in
the JSE. Before that, Campari/Lascelles that I’ve learned was in the works for YEARS. I’m privy to a few things that have been in the works for a while, that we generated. What about what we don’t know? Usually it’s two brokerage houses working deals. I suspect it’s one now.
Traditional and the other less so. Lie, make that 3, that has been cut to 2. With 1 new entrant. The moral of the inadvertent story, however is that we have a flurry of activity happening in the background and I’m eager to see what comes next. Very exciting says ahead.
I find myself going on and on so probably I can end here?
Over the last 10 years, or so, I have noticed, that the US market, like other developed markets, doesn’t differ much from ours. It’s just (more than) a few years ahead. JSE is 61 or so years old. NYSE is more than 150. A few things I have observed - there are industries around
information 💡. People listen to Cramer, who is really just a finance guy. I’m watching Bloomberg NOW. So eventually (if there is critical mass, but even if not) we will have our own cost-efficient Bloomberg, Cramer etc. May not be a tv station, but a YouTube channel, podcast etc
With interest comes, the desire for more information. As more people invest they will desire greater access to information. It’s no coincidence, that #FinanceTwitterJA is a thing and continues to evolve over time. If people take forex classes overseas, why not do a class they can
actually make money from? I said it on @Earnings_Season that these guys are filling a necessary gap in the market and should continue to! Online trading is also a thing, which is wonderful. This has forced Brokers to think a bit more about their models, but I believe that there
is a key thing missing, but I won’t be specific there, except to say that one can’t be all things to all (wo)men. Sorry, if I share that part it’ll come with a cost 💰. I remember around 2009 or so SSL used to have a weekly column in the Observer. Catered to a niche and it was
fantastic. Sad that it stopped. I always wondered why many more persons never ventured into that lane, but if you add it up with what I didn’t say before, then perhaps it may be clearer. Anyhow, here’s what I think is needed to continue to forward momentum. (1) more listings.
Larger companies need to go to market. Nothing is private in this day and age. The Jamalco deal was exciting. Larger deals will attract larger investors, both home and abroad. Remember what I said a few tweets back, this ‘Renaissance’ was led by HEINEKEN, a foreign company buying
above the market multiple at the time. It’s not theory, friends. Real life. So, larger entities, more deals. (2) regulatory adjustment to allow pension funds to invest a larger percentage of their holdings in listed equities/private equity etc. These institutional funds are the
drivers of PE/VC investing globally. You will recall my saying that the USA/World gives us a look into the future. As I said (publicly) two years ago, I believe Jamaica is unique in that we have the exit mechanism for smaller companies (Junior Market) so it’s actually easier to
Exit an investment than it is to enter one. Ironic eh? (3) hasten the speed of regulatory approval. A tweet got me in heated conversation re (3) approaching a year ago, and I have no desire to repeat it. This was on the fly, hope it makes sense. Good night! ✌🏾
