 Do you want to learn how to trade stocks and cryptocurrency? Join our community of traders. Go to richpicksdaily.com and find the next 10Bagger. What's everybody doing today? I am your host Rich here on behalf of Rich TV Live and I'm here with my very special guest, Ronnie Jagerman, a director of Waterways Technologies. How are you doing today, Ronnie? Great. Good morning, Vancouver. It's late afternoon here in Israel. Rich, thank you very much for interviewing. I really appreciate the opportunity and the ball is yours. Fantastic. Well, I'm excited to learn more about your company and when I started doing a little bit of research, I right away felt like your company was undervalued, under-appreciated, under-exposed and we're going to get right into why. Waterways had revenues last year at around $12 million, which right there tells me because you're at $0.15 that you're already undervalued and received over $10 million in orders in Q1, giving it a run rate of $40 million in 2021. Is Waterways likely to maintain the momentum going forward? Yes. We're having a very good year. You can see our results for the first quarter, which were sales of 5.5 million Canadian dollars in revenue and $550,000 in EBITDA, that's almost 10% or it is 10%. Our order backlog is at a record high. This was the best quarter for the company ever and we're seeing our business really around the world very strong. We've had a very strong Canadian business, a very strong Chinese business and our business side of Israel is also extremely strong and I think we can keep that momentum going on during all the part of the year. That's incredible. You've recently opened up subsidiaries in Canada and China. Do you see Waterways opening up more subsidiaries in other regions and if so, where would those be? Yes, I do. It is our strategy and one of the reasons that we went public and we're very successful. The first strategy we took was entering Canada by buying the assets of a Canadian Irrigation Distributor Heartland Grove based south of London and Ontario and that proved to be a winner. This was a distributor of irrigation equipment. Its owner, John Paul, was very successful but it had the normal problems of small companies. We came in and acquired the assets of the company, put John Paul as CEO of the company and we saw the business growing from a $2 million Canadian business to $4 million last year and we're still growing in that business this year which brings us to a good hold foothold in the Canadian Irrigation Market which is we're still small players. It's a $100 million market. We're still only four or five percent of the market and we intend to grow to be dominant in the market. We did the same thing in China. We had a distributor for years in China. Waterways is not a young company. It started in 2006. We were doing for four or five years business in China but selling component to our Chinese distributor which was actually a project company. We did the same thing. We acquired the assets. We opened a Chinese subsidiary. It picked up very slow because unfortunately beginning of 2020 was COVID and Chinese business was seized 100% but last quarter of last year we saw the business starting and again we have a very good quarter in China in the first quarter and we see the business really picking up and we focus in China on high yielding crops. We did one project with Driscoll which is the largest grower in the world of berries. It's an American company which grows berries in over 21 countries around the world and I'm confident that this business would grow. Once we've established the strategy we seek to grow in other territories i.e. in western Canada, in the United States, in Peru where we have a good stronghold, foothold and in other places around the world. What are your main drivers of demand for waterways in the future? It's very easy. Our earth is warming. Nobody seems to do anything about it. Trump was of course against it but even now earth is warming. Warming means there's less water. Water is becoming scarce which means if you want to grow crops, I just read yesterday that food is a new oil. That was yesterday in an article and water is getting scarce so in order to irrigate and crops that crop doesn't grow without good irrigation, you need to use smart irrigation or drip irrigation or you need to put brains into the irrigation and that's where Israel comes into the field. We've had an arid country since the day Israel was founded in 1948 and farmers in Israel and farming companies and irrigation companies has to develop systems to use irrigation or water in a smart way because water is very scarce in Israel. And Rich, I told you to come to Israel. If you come today to Israel, Israel is extremely green. It's not any more desert and that because water was used in a very efficient way. And that is why waterways is in a great position to boom because the demand of smart irrigation is growing extensively around the world. Our biggest project we did ever was a four million dollar project in Uzbekistan. You wouldn't think and to smart irrigate cotton. Now this is not a smart, a cotton is a medium yield crop not like cannabis or berries or anything but you wouldn't think that in a place like Uzbekistan they would invest four million dollars in an irrigation system which is probably much more expensive than flood irrigation and invest that amount for a cotton field and this is all around the world. So it's in Canada. If you drive from London south and you see the vineyards on the way to Niagara Falls, they're all drip irrigated all by Israeli technology period. So that's the world and the demand is growing and that's our huge chance to grow in the market because the world market for smart irrigation is anywhere between two billion to three billion dollars a year. Fully dominated, 80% dominated by companies from Israel. Well guess where you said whatever companies I can't name numbers because of you know because I can't give you forward-looking statement we're a public company but we're a fraction of that market, a fraction. We still have so much room to grow and become a hundred million dollar company. The opportunity is just there. That's great. Now you mentioned this a little bit. Israel has become an industry hub for agricultural technology with around 400 plus agri-tech startups. Can you tell our viewers on why that is and how waterways fits into the mix? Okay, why that is very easy. I mean there's no, we need always to develop because that is the only way agriculture could grow in Israel. Okay so development is part of the system. I don't know if you know, do you like cherry tomatoes? Yes, absolutely. Cherry tomatoes were developed in Israel. Oh wow. Developed in the White House Institute. Actually the professor who won the prize for it is father of one of my best friends. Oh wow, that's great. So that's sort of what we do in Israel and of course with tech companies money just pouring now into Israel in the last two or three years. Agtech is very important. It's a very important part of Israel, of the Israeli culture and the Israeli R&D. And that's why you see, you know, there's money, there's startups, there's brains. We have two universities who excel in development of agriculture, of growing and anything around that and drone technology, whatever you could think of, irrigation technology, sensors, anything like that. And that's why you can see 800 startups in the field in Israel. And we'll do what we're doing now. We will integrate into the waterways, both manufacturing and marketing capabilities, leading technologies that are developed in Israel. So we're part of it. We're seeing startups, we're seeing different technologies, and we'll encompass those technologies into our sales and marketing system. Sounds great. What type of margins do you receive on your projects and what can investors expect long term? Okay, so normally on a project, our margins are anywhere between 20 to 30%. Okay, which is okay, it's not high. We're seeking to improve that dramatically. We have improved, if you look at the gross numbers, they've improved also dramatically in Q1 versus last year. And we seek to improve that by bringing in technology, by developing, for instance, we're now putting our own control system into the irrigation system. So we'll have more products which are developed by us. As we grow, we'll have much more efficiency in acquiring components, acquiring raw materials, economics of growth, and I'm sure you can see our margins improve in the coming years. Is DataWay going to create software SaaS revenues in the future? We're not 100% sure about that. We've tried to bring that technology in a SaaS model and we found out that it's not so easy to imply and to implement in the business of farming. So we have incorporated and are incorporating that system as a control unit, as a very smart control unit to the farmer in any irrigation projects that we install, especially in the cannabis sector. And there's still SaaS business to be developed. I don't think it's going to happen this year, but probably in the coming years. Super excited to learn more about this company. We're going to be putting it on our radar. We're going to be putting it on our watchlist. Thank you for joining us today, Ronnie Jagermann, Director of Waterways Technologies. Rich, so much. Thanks so much for having me. I really enjoyed our interview. And thanks for everybody who's listening to me. Always a pleasure. Now, if you're new to Waterways Technologies, put it on your radar, put on your watchlist. If you like the video, smash the like button, comment down below, share the video everywhere and subscribe. Remember, Rich TV Live is strictly for information and education purposes. Please do your due diligence, do your research before you invest in anything that we talk about here in Rich TV Live. If you like the video, if you like the company, all you need to do is comment, smash the like, and let us know. Thank you for watching. If you're not winning, you're not watching. Here at Rich TV Live, we bring you the winners and we bring them to you first. Thank you, Ronnie. Thanks for watching, everybody. Have a nice day. Bye from Israel.