Archives for July 2013

Eppley 18th junior market listing

July 29, 2013 by IC Insider.com

Press Release 29-Jul-2013 | Eppley, the latest initial public which was closed on Monday July 22, was listed on the junior market of the Stock Exchange on Monday July 29 and brings the junior market listings to eighteen. Eppley is only the second company to be listed on the junior market for 2013 and only the third listing on the stock exchange this year. Eppley is one of Proven Wealth stockbrokers’ first introduction to the market. The stock did not trade on the opening day, had no bids or offer to buy or sell.

Marlene Street Forrest, General Manager of the Jamaica Stock Exchange speaking at the ceremonial listing, stated that “We cannot overemphasize the importance of the Junior Market in ensuring that new creative ideas, whether manufacturing or in this case, service gets the chance needed to make it from idea to development. The benefit of this market is not only in creating longevity but transparency. The benefit is also in seeing the companies that are listed produce excellent financial results for the company and by extension the shareholders. Growth in companies is almost always accompanied by growth in the economy. We understand that these companies receive a temporary shelter whether from corporate taxes, reduced listing or annual fees but this is done against the backdrop of full disclosure of their financial statements and other pertinent information to shareholders. I believe we can proudly report the following statistics which compares prelisting results to results as at the end of December 2012:

Percentage increases in revenue ranging from 7.75% to 1,626.32%
Percentage increase in profit ranging from 8.08% to 589%
Percentage increase in GCT from 4% to 3,770%
Percentage increase in Statutory Deduction from 3% to 173%

I urge you to remember the advantages of raising capital and listing on the Junior Market; which continue to be the possibility of reducing debt burden and high interest payments by substituting or adding equity capital; the daily valuation of a company’s shares; the ten year corporate tax concession for companies listed on the Junior Market; the low listing fees and the improvement of a company’s profile among other benefits”.

Nigel Clake, Chairman of Eppley, told the audience that Eppley was delighted to have access to the capital market to raise funds to finance their business and to be listed on the Stock Market was a privilege and Eppley would do all in their power to ensure that their reporting would be of the highest standard. He went on to thank the shareholders for the confidents they displayed in Eppley by purchasing the stocks.

Chorvelle Johnson, CEO of Proven Wealth took the opportunity to thank all the persons involved in the listing. She stated that the process was fairly easy with the help that Proven got from the JSE, the lawyers and the regulators. Miss Johnson went on to say that Proven will be working assiduously to bring more companies to list not only on the Junior Market, but on the Main Market, along with other products.

Sharing the historic moment | Andrea Kinach; Marlene Street Forrest; Chorvelle Johnson; Andre Tulloch; Melanie Subratie; Keith Collister; Nicholas Scott and Nigel Clarke.

JSE: Advancing stocks clobbered

July 29, 2013 by IC Insider.com

Monday, 29th July 2013 | Trades on the Jamaican stock market amounted to 4 million units with a value of $97.18 million of which Grace Kennedy accounted for more than 25 percent of the volume and $65 million of the total value of trading.

There were only 4 stocks advancing stocks while 13 declined as 25 companies participated in trading. All the indices with price movements lost value as the junior market lost the most with a 2.75 percent decline. The rest of the indices fell by less than a half of one percent.

Main market trades of note | The all Jamaica Index shed 359.38 points to close at 87,362.77 and the JSE market index fell by 204.26 to close at 86,482.76.

The Carreras sell off continues as investors sold another 362,919 units, down to $51.51 as the stock closed with the last traded price at $51.70 and the total value traded $18.73 million. Today’s trading seems to leave $51 exposed as the next price barrier. Thereafter it looks like $50 is next, but the demand at that price is not great. Other than Grace Kennedy which traded 1.16 million shares, others to post good volumes were Desnoes & Geddes, traded 284,557 units while closing at $4.77, Jamaica Broilers 121,465, trading at $5, Jamaica Money Market Brokers 129,000 between $8 and $8.10 and closing at $8.10, National Commercial Bank 59,326 as the stock closed at $19.50 down 6 cents, Scotia Group 195,392 and closed at $21.15 off by 5 cents.

The ordinary shares of Jamaica Stock Exchange is yet to trade since last week’s listing, the stock now has a bid at $3.25 and an offer at $3.45.

Junior market | Eppley shares that was the subject of an IPO last week was listed today, the fastest such listing since the junior market started. There were no trades nor buyers or sellers positioning to trade so far.

Nine stocks traded, with 6 declining and none gaining as the index fell 22.62 to 801.15. The three Lasco companies released results for the first quarter to June, with Lasco Distributors recording profit gains of 21 percent to reach $164.7 million. The stock traded a low volume of 174,127 units to close at $1.50, off just a cent. Lasco Financial recorded 50 percent gain in profit to reach $39.35 million. The stock traded 253,450 units and lost 8 cents to close at $1.52. Lasco Manufacturing reported profit decline of 10 percent in recording profit of $138.75 million. KLE Group lost a further 29 cents as the stock closed at $2 as only 1,000 units traded, a new low. General Accident traded 142,265 units at $1.93 and Caribbean Producers 56,768 units at $2.03.

Proven Investment Preference shares traded 411,400 units valued at $2.1 million, there was no trades of the ordinary shares which are quoted in US dollar.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 5 stocks were higher with 4 stocks having offers lower than their last selling price.

Filed Under: JSE Main Market, Stock Market Tagged With: Daily Trading, JSE Company, Trading Activity

TTSE: Slow trading but Republic hits $111

July 29, 2013 by IC Insider.com

Monday, 29th July 2013 | On a day when Republic Bank closed at a last selling price of $111, up 99 cents and a new 52 weeks high with 5,140 shares trading valued at $565,590, only 5 stocks were active of which 3 advanced, 1 declined and 1 traded firm. A total of 148,257 shares traded for a value of $3.4 million on the Trinidad market.

Trading activity on the main market accounted for 49,669 shares crossing the floor valued at $1,315,148.13. LJ Williams B shares traded 25,000 units for a value of $18,250 as the stock shed 11 cents to close at 73 cents, a new 52 weeks low. Neal & Massy Holdings with a volume of 11,577 shares accounted for $682,801. Sagicor Financial Corporation contributed 7,952 shares with a value of $48,507. Clico Investment Fund gained 6 cents to end the day at $21.36 while 98,588 shares valued at $2,105,454 changed hands.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 4 stocks were higher with 2 stocks having offers lower than their last selling price.

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

Ready. Set. Go!

July 29, 2013 by IC Insider.com

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Monday, 29th July 2013 | The earnings season has begun! Over the next few weeks, our IC Insider analysts will be busy scouring over company quarterly reports, crunching the numbers and calling it as we see it.

As in any race to perform, there will be winners and losers. The markets will be sure to respond and with the JSE and TTSE having a limited supply of some stocks, the bulls could be on the run.

Buy Rated Stock | Of the 5 company quarterly reports reviewed to date, 3 have been added to our Buy Rated list. National Commercial Bank, One Caribbean Media and Berger TT have interesting story lines that could improve your wealth health.

Better than a broker’s ‘buy’ recommendation, IC Insider has no vested interest in any stock transaction or conflict of interest. Our research is backed by published reports of the company’s performance and insights of future earnings that can be found at ICInsider.com. The final decision to buy, or not, is your personal choice.

To search for published reports for a Buy Rated stock on IC Insider, please use ‘Search IC Insider’ and enter the company name, in full or in part.

Filed Under: Company News, Stocks to watch Tagged With: JSE Company, Trading Activity, TTSE

Berger TT profit poised for big gain

July 29, 2013 by IC Insider.com

The economies of Trinidad & Tobago and that of Jamaica are two contrasting ones. In the case of Trinidad, after a few years of decline the economy is growing again, albeit moderately. Jamaica on the other hand, is still experiencing decline. Interest rates, while sharply down in Jamaica at more than 6 percent, are nowhere near those of the Twin Island state with Treasury rates at less than 1 percent.

But a look at the results for Berger Paints in the two territories would make one wonder if the state of the economies aren’t the same. Both companies are struggling to maintain profitability as the construction sector suffered decline in both countries and are yet to be restored to health. In both countries, there are signs that things may be picking up. For example, Trinidad Cement reported improved sales in the first quarter this year over 2012. In the case of Berger Trinidad, there was a big improvement in the bottom line in the quarter to June with slight pickup in sales to $13.395 million versus $12.891 in 2012. Not much, but enough. This along with a cut in expenses to $13.52 million compared to $14 million, reduced the loss from $1.25 million before tax in 2012 to $185,000 this year and the after tax loss to $179,000 to June this year versus $973,000 in 2012. For the 12 months to March this year, on revenues of $64,146 million and expenses of $62,504 million, the paint company made a profit of $791,000 after tax.

According to figures released for the quarter to June, the company has eliminated some cost. This should made quite a difference to the full year results which IC Insider is forecasting to be 50 cents per share for the year to March 2014.

The price earnings ratio (PE) of the stock is low at just 7 times this year’s earnings, making it a good candidate for investors to profit from.

The financial position of the company is healthy, with working capital being more than two and a half times current assets to current liabilities. Equity capital stands at nearly $25 million with no major debt capital being used in funding its operations. There is virtually no cash on the balance sheet suggesting that they are using cheap bank financing to ensure shareholders max out on profits.

Insider call | Berger TT is an IC Insider Buy Rated stock.

Filed Under: Company News, Company Results Tagged With: Berger Paints, TTSE

Mayberry’s tough year so far

July 28, 2013 by IC Insider.com

So far 2013 is not proving to be a good one profit wise for Mayberry Investments. First government debt swapped earlier in the year hit $337 million from profits in the March quarter and vestiges of the debt swap measures still reverberate in the numbers to June. For the latest quarter, net profit was $48 million after the company benefited from a tax credit of $16 million which raised the bottom-line from $32 million. This compares to profits of $36 million for the similar period in 2012.

For the 6 months, profit after tax amounts to a loss of $20 million and $149 million in 2012. Pre-tax profit of $214.6 million compares favourably to $165 million in 2012.

Revenues | Gross revenue for the quarter of $386 million is down on the same quarter last year of $432 million. During the quarter, there was growth in gain on sale of investments of 119 percent to end at $54.4 million, net foreign exchange gains moved from a loss of $10.6 million to a surplus of $30 million. There was a reduction in fees and commissions from $40 million to $17 and net unrealized market loss of $62 million on trading portfolio. All of these, along with interest expenses contribute to a net income of $186 million versus $217 million in the 2012 quarter before expenses.

First quarter recap | Containment in expenses and a slight boost in income helped Mayberry to record an operating profit of $158 million over the $104 million generated in the first quarter of the prior year. A one-off hit to the profit of $337.3 million arising from the NDX debt exchange plunged the operations into a loss of $178 million, before a tax credit of $87 million and share of associated profits of $24 million resulted in an overall loss of $67.7 million compared to a profit of $113 million last year. Revenues net of revaluation gains or losses came in at $473 million in the quarter up from $452 million in 2012.

The company made increased profits from trading gains in the first quarter which rose to $117.9 million up from $36.4 million in the similar quarter of 2012. Mayberry sold 12 million shares in Access Financial Services for $69 million, reducing their shareholdings to 38 percent. The sale of Access would have contributed a large portion of the trading gains. Net foreign exchange gains helped too in boosting the top line with an increase from $9 million to $40 million. So did dividend income which moved from $15 million to $34 million, while fees and commission fell from $70.6 million to $19.4 million this year. Gains on investments fell to a loss of $11 million from nearly $3 million gain, the year before. For a full recap of the first quarter, read our post Mayberry profit bleeds from NDX

Second Quarter Expenses | Expenses for the quarter were $176 million compared to $194 million for the comparative period as loan loss provision fell from $40 million in 2012 to $9 million in 2013. Other operating expenses rose from $69 million to $86 million, due mainly to a new asset tax imposed by the Government earlier this year. Year to June expenses are down from $354 million to $341 million due mainly to reduced loan losses which was partially offset by the asset tax.

Mayberry stock which was trading at $2.05 per share after the release of the first quarter results has since moved to $2.60 which it traded at for several weeks and closed at on Friday.

Financial Position | Assets on the balance sheet, declined from $23.7 billion at March 2012 and $20.77 billion in December, to $19.5 billion at the end of March but it is back up to $20.8 billion in the latest report. A decline in the investment portfolio of $5 billion countered by a decline of $4.5 billion on the liability side for securities sold under repurchase agreements accounted for the bulk of the change since March 2012. On the other hand promissory notes and loans increased over June last year by approximately $2 billion. The equity capital is holding steady at $3.7 billion.

Related posts | Mayberry profit bleeds from NDX

Filed Under: Company News, Company Results Tagged With: JSE Company, Mayberry

T&T PE chart show bargains

July 28, 2013 by IC Insider.com

The stock market in Trinidad is not very active partly due to prices of many of the stocks that are too high for that market creating lack of liquidity. The PE chart shows that there are a number of undervalued stocks that investors can made good money from. Top amongst them is Trinidad Cement with a PE of just two even after the price is up nearly 40 percent since July. For the rest of the manufacturing sector, Unilever is at 22, West Indian Tobacco is at 27 but national Flour is at 6 and Berger at 7.

In the financial sector, BNS is selling at a price earnings ratio of 23 while Guardian Holdings is at 8, Republic Bank is at 15 and National Enterprises at 16. Conglomerates Neal and Massy is at 11 compared to Ansa Mcal at 17. In media, Guardian Media is at 22 but One Caribbean is only at 13.

The graphs below highlights the potential gains for those that appear to be undervalued.

Filed Under: Stock Market, TTSE Market Tagged With: PE Ratios, Trading Activity, TTSE

FX: More FX purchased than sold

July 26, 2013 by IC Insider.com

Friday, 26th July 2013 | In today’s forex trading, the equivalent of US$31.25 million amount of currency was purchased and $27.34 million was sold.

The Jamaican dollar closed at a selling rate of $101.85 to the US dollar, 2 cents more than on Thursday and authorised dealers purchased the US dollar for 100.30, up 10 cents on Thursday’s close. The Canadian dollar closed at a selling rate of $99.84, up $1.10 and authorised dealers purchased the Canadian dollar for $98.22, $1.58 more than the previous close. The Pound sterling closed at a selling rate of J$156.58, which was 59 cents greater than the closing rate on Thursday while buying took place at 49 cents less at J$154.40.

Highest rates traded in buying the currencies were for the US dollar $102.15, down 20 cents, Canadian $100, down 46 cents, the Pound sterling $ 156.77 up 37 cents, while the lowest buying rates were the US dollar $83.50 the same rate as the day before, Canadian $79.60, up 33 cents and the Pound sterling declined by 41 cents to $125.83.

Highest selling rates were for the US dollar $107 no change, Canadian $102.67 no change, Pound sterling $ 160.07, an increase of $1.35 and the lowest selling rates were the US dollar $98.50 up $15, Canadian $94.50 down $1 and the Pound sterling $ 151.50 up $4.75.

Filed Under: FX Market, Stock Market Tagged With: Daily Trading, FX Market, Trading Activity

TTSE: Unilever up, Clico down

July 26, 2013 by IC Insider.com

Friday, 26th July 2013 | Overall market activity resulted from trading in 10 securities of which 2 advanced, 5 declined and 3 traded firm.

Trading activity on the First Tier Market registered a volume of 109,697 shares crossing the floor valued at $1,314,622.32. Sagicor Financial Corporation was the volume leader with 63,270 shares changing hands for a value of $385,947, followed by National Flour Mills with a volume of 30,000 shares being traded for $22,495. Unilever Caribbean contributed 9,789 shares with a value of $538,776, while Scotiabank Trinidad added 3,920 shares valued at $274,439.20.

Unilever Caribbean enjoyed the day’s largest gain, increasing $0.71 to end the day at $55.04.

Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 47,705 shares valued at $1,016,167.50 suffered the day’s greatest loss declining by $0.20 to end at $21.30.

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

JSE: Market cooled but will it last?

July 26, 2013 by IC Insider.com

Friday, 26th 2013 | The market cooled off today as only the stocks of 21 companies traded, resulting in a volume of 5,305,431 valued at $35.1 million. There were 8 stocks advancing and 6 declining. The prices of two stocks reached all-time highs and two others made a 52 weeks high by the end of the day.

Main Market trades of note| The all Jamaica Index shed 650.92 points to close at 87,772.15 and the JSE market index fell by 369.94 to close at 86,687.02.

Carreras traded 152,000 shares as the price closed at $52, off 25 cents from the last traded price on Thursday. Jamaica Money Market Brokers (JMMB) traded 1 million shares and lost 49 cents to close at $8 after trading as high as $8.50. National Commercial Bank after posting 92 cents earnings for the June quarter and $2.76 for the fiscal year to date, traded only 31,600 units to close at $19.56 after trading up to $20. Currently, the supply of this stock is limited. Pan Jamaican Investment Trust traded 19,600 units at $52, up 49 cents for the day. Scotia Group (SGJ) with a volume of 135,000 shares, traded between $21.11 and $21.50, the stock closed at $21.20 with no change in the last selling price. Supreme Ventures climbed 9 cents to $3.10, a 52 weeks high, with 176,000 shares trading.

The Jamaica Stock Exchange ordinary shares, the subject of an initial Public offering (IPO) in early July, was listed on Tuesday, is yet to find a compromise price for a willing buyer or seller. The stock closed the week with a bid of $3 for 97,000 shares and an offer at $3.45 by the same broker, Stocks & Securities the sponsoring broker for the IPO, which was priced at $2.85.

Junior market | 8 stocks in the junior market traded with the index moving up by 7.52 points to 823.77. The coming week could be telling for this market with the three Lasco companies releasing results on Monday. Access Financial Services gained 40 cents as 2,100 units changed hands to close at an all-time high of $9. AMG Packaging lost 25 cents while trading 3,900 units to close at $4. Dolphin Cove traded 20,500 units to close at a 52 weeks high of $9.10, gaining 40 cents for the day. Lasco Financial moved up to an all-time high of $1.60, gaining 15 cents for the day while trading 380,206 shares. At the close, there was 1 million shares on offer at $1.60. Lasco Manufacturing traded 788,400 shares lost 10 cents to close at $1.60.

Proven Investment Preference shares traded 2.2 million units valued at $11.38 million, while there was no trading in the ordinary shares which are quoted in US dollars.

Market intelligence | Earnings season has begun for the second quarter results and are likely to impact trading over the next few weeks and could well impact stocks for the rest of the year.

Results dates | On Thursday, National Commercial Bank (NCB) released results that could encourage buying of the stock. On Friday Mayberry released their’s, after trading closed. Monday is the day all three Lasco companies are expected to release figures for the first quarter. These are important as they will send a message about likely 2014 earnings since there have been no new profit figures to positively guide investors for the new fiscal year about valuation of the stocks. Sagicor Investments and Grace Kennedy are also expected to release their results by the end of the coming week.

Cable & Wireless remains under pressure with offers in excess of 28.7 million shares at 15 cents overwhelming what little demand there is for the stock. The demand has not changed much for the last three weeks as the supply is barely being eaten away. Desnoes & Geddes is stuck for the time between $4.65, where there are a few good bids, and $5.18 where a 1 million shares are on offer. Offers below $5.50 seems to have dried up for Jamaica Broilers; bidders who exposed their hands are not yet very aggressive, with bids mostly below $4.50. There are however, a few offers between $7.67 and $5.40, the next is at $13.50 for 800,000 units.

JMMB supply and demand seem fluid presently with some selling at $9 and under. At the end of trade on Friday, there were only 428,000 units of NCB on offer between $20.99 and $35 against 1.3 million units of bids from a low of $10 to $19.55. A bid for 4,549,573 Radio Jamaica shares at $1.23 remains in the system with very moderate supply. Supply of Sagicor Life is just over 300,000 units up to $15, demand is over 2 million above $7, SGJ has 876,000 shares on offer between $21.20 to $21.25 and $33, and demand for 1.17 million units from $14 to $21.12. Scotia Investment has limited demand and a few more offers close to the trading price but there are 6 million units on offer at $30. Supreme Ventures has only two offers amounting 22,400 units and good demand from $2.75 to $3. Carreras still has selling but there are still investors prepared to buy above $50 but those could be taken out in the coming week depending on exactly how much selling there still is.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 5 stocks were higher with 2 stocks having offers lower than their last selling price, thus keeping the bullish bias in place.