Junior market stocks gained 5 percent overall, for November, with Lasco Distributor moving up 30 percent to close at $1.50 as institutional buying, helped to push the price as the company enters new contracts that expand the product lines to be distributed as well as increased products form its sister company, Lasco Manufacturing. The manufacturing company stock rose 15 percent in the month as the second highest gain in the junior market. Buy Rated Knutsford Express grew 6 percent to end at $5.85 and Dolphin Cove another Buy Rated stock moved up 5 percent to end at $8.50.
Lasco Financial closed at 95 cent, for a 3 percent decline the same decline as General Accident in closing at $1.50. Jamaican Teas ended at $2.85, down 14 percent, the company reported lower profits for the fiscal year to September. Blue Power dropped to $6.05 or 22 percent but the bid climbed to $7 after the company reported profit that was just slightly lower than in the six months to October last year, by 7 percent, as it reported earnings of 91 cents per share, for the period.
Archives for November 2014
Lasco Distributor up 30% in November
Interest cost jump burdens C&W
Cable & Wireless HQ Kingston
At the same time, profit before finance cost moved from a loss of $179 million in the six months to September, to a profit of $645 million. Higher finance cost, jumped from $730 million to $1.98 billion for the six months, from the year before, resulting in a similar loss as in 2103 of $600 million for the quarter and $250 million lower than in 2013 for the six months, to end at $1.32 billion.
Mobile subscribers grew by 125,000 during the April to September period and Mobile traffic increased by 34 percent and mobile service revenue is up 38 percent, the company reported.At the end of March Cable & Wireless stated that they had 705,000 mobile customers. The increase since March, puts active mobile customers at roughly 830,000, by the end of September. At the end of June this year, Mobile subscriber base increased by 37 percent with revenue increasing by 34 percent, broadband base increased by 12 percent with revenue up 39 percent. The continued strong growth in mobile customers is resulting in increased revenues for the local company, moving them closer to a break-even point.
The company cut employment cost sharply for both the quarter and six months but increased marketing spend to push various mobile and internet plans and boost the customer base, which should redound to benefit increased revenues, going forward.The second half of the year is more profitable for the company, with the revenue to be booked for the telephone directories and lower marketing cost in the final quarter of the year. Lower Treasury bill rates should see the interest rate that is used to book interest, being lowered by almost 25 percent compared with the first half of the year. IC Insider is projecting a profit in 2015/16 as revenues should continue the strong growth with the push to capture a larger portion of the cellular market and the double benefit of lower out payment cost per customer as the base grows and increase revenue from voice and data.
C&W up 57% in Nov – 17 stocks rose
CW&J gained the most in November on JSE, up 57%.
Gains| 17 Stocks gained in the main and US dollar markets, at the end of November. Cable & Wireless 57 percent to 44 cents as the price responded to news of the parent company acquiring Columbus Communication, operator of the Flow brand. The company also reported much improved cellular customer acquisition for the six months to September and a 15 percent jump in revenues compared with 11 percent in the first quarter. At the same time, profit before finance cost moved from a loss of $179 million in the six months to September to a profit of $645 million. Higher finance cost than the year before resulted in a similar loss as in 2103.
Increased buying of Kingston Wharves, resulted in a pick up in price by 18 percent, Proven Investments preference share rose 10 percent, Seprod 9 percent, improved six months results and increased dividend payment helped to create greater buying of the Carreras stock, in the process pushing the price up by 7 percent, to end at $37. Supreme Ventures enjoyed a 6 percent gain, the company reported strong growth in profit for the nine months to September. National Commercial Bank increased results and dividend, resulted in a 6 percent increase in the price to $18, but the stock traded up to $19.25 on increased buying interest, after the results were announced. Grace Kennedy gained 5 percent, Pan Jamaican 5 percent and Scotia Investments 5 percent, price arbitrage between Jamaica and the Trinidad Stock Exchange may have resulted in the price Scotia Investments inching up in Jamaica, as the price closed at $22.50 locally but at TT$1.45 that puts it at near J$25.70 on the T&T market.
The big losers in the main market for November are Palace that dropped from $90 down to $66 down 27 percent with only 200 shares pulling the price down. The Jamaica Stock Exchange share fell 16 percent to $1.55, Ciboney fell 13 percent, Margaritaville 9 percent and Desnoes & Geddes 8 percent to $4.57 but it closed the month with the bid at $4.76.
JSE market indices up 4% in November
Friday’s activity on the Jamaica Stock Exchange, resulted in the prices of 7 stocks rising and 6 declining as 24 securities changed hands, ending in 12,560,380 units trading, valued at $56,058,056, in all market segments, the market ended the months with gains in the major indices.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had 5 stocks with bids higher than their last selling prices and 7 stocks with offers that were lower.
Main Market| The JSE Market Index climbed 313.18 points to 74,338.49, the JSE All Jamaican Composite index rose 350.19 points, to close at 81,832.07 and the JSE combined index gained 308.54 points, to 76,319.95. The three main market indices ended up well ahead of the October close, by more than 2,600 points each, gaining 4 percent in the process.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Grace Kennedy ending with 110,550 shares while gaining 60 cents to $61, followed by Jamaica Broilers that concluded trading with 10,950 units, to close with a gain of 5 cents at $4.05. Pan Jamaican Investment trading 1,200 shares, to end with an increase of $1.20 to $51.70, Sagicor Group ended trading with 710 shares, the price climbed 9 cents to $9.99 and Scotia Group closed with 3,385 shares changing hands to close at 50 cents to $20.
Firm| The stocks in the main market to close without a change in the last traded prices are, Cable & Wireless ending with 235,500 shares, changing hands, to close at 44 cents, Caribbean Cement ended with 67,932 shares trading at $2.40, Carreras had 6,880 shares changing hands to close at $37. Ciboney concluded trading with 10,000 shares trading at 7 cents. Jamaica Money Market Brokers with 31,680 ordinary shares changing hands, closed at $7.05, Kingston Wharves ended trading with 1,416 shares trading at $6, Proven Investments had 600 shares changing hands 17.99 US cents and Radio Jamaica ended with 50,000 units trading to close $1.18.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Desnoes & Geddes closed with 9,330,980 shares trading 19 cents to $4.57, National Commercial Bank finished trading with 8,165 units and fell 1 cent lower at $18 and Scotia Investments ended trading with 40,650 shares, 5 cents lower to $22.50.
Preference| Jamaica Money Market Brokers 8.75% preference share tradedended trading with 168,000 units at $3, Jamaica Money Market Brokers preference share traded 7.50% contributed 2,500 units at $2 and Proven Investments 8% preference share traded 67,300 units to close 20 cents down at $5.50.
Volumes climb but J$ falters Vs US$ on Friday
The Jamaican dollar lost ground against the US dollar but gained against the British pound and the Canadian dollar, on Friday. The level of trading increased strongly over Thursday’s levels, as authorized dealers purchased the equivalent of US$39,425,266 versus US$23,655,831, on Thursday, and sold the equivalent of US$31,274,156 compared with US$20,111,379 on Thursday.
In US dollar trading, dealers bought US$35,565,489 compared to US$20,915,015 on Thursday. The buying rate for the US dollar gained 19 cents to $113.13 and US$29,379,322 was sold versus US$18,955,032 on Thursday. The selling rate climbed 5 cents to $113.59. The Canadian dollar buying rate fell 31 cents to $97.83 with dealers buying C$1,316,08 and selling C$704,733, at an average selling rate that declined 57 cents, to $99.66. The rate for buying the British Pound rose 17 cents to $175.97, for the purchase of £1,665,720, while £718,932 was sold, the rate climbed 35 cents to $178.19. Other currencies bought, amounted to the equivalent of US$130,742 while the equivalent of US$148,673, was sold.
Highs & Lows| The highest buying rate for the US dollar, closed 3 cents higher at $113.75, the lowest buying was unchanged at $93.10. The highest selling rate put on 33 cents to $119.63, but the lowest selling rate climbed 37 cents to $95.31. The highest buying rate for the Canadian dollar gained 30 cents to $100.80, the lowest buying rate closed up 8 cents to $80.59. The highest selling rate put on 11 cents to $103.90 and the lowest selling rate remained at $97. The highest buying rate for the British Pound, was off 10 cents to $178.70. The lowest buying rate rose 33 to $144.42, the highest selling rate fell $3.72 to $182.03 and the lowest selling rate climbed $1 to $174.
LascoMan dominant again
Lasco’s bottling line
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market continues to be weak with 7 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
The active stocks during trading are, Lasco Financial with 123,236 shares, with the price rising 1 cent to 95 cents, Lasco Manufacturing finishing trading with 2,151,551 units, and put on 3 cents, to $1.05. Cargo Handlers ended with 2,150 units, as the price slipped 80 cents, to $14.20, after rising on Thursday to $15 on small volume, and General Accident finished with 50,400 shares with a loss of 8 cents to $1.50.
Scotia rises more to come on TTSE
Trading on the Trinidad Stock Exchange closed the last week in November with 11 securities changing hands, 4 advanced, 4 declined and 3 traded firm. A total of 313,960 units, valued at $2,266,333 traded. Scotiabank continues with its recovery with a further gain at the close but more importantly, the bid closed above $59 for the first time in weeks having hit a low of $58 recently.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had one of its strongest reading since we have been monitoring this market with 8 stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower. This continues to signal rising prices in the market in the weeks ahead.
At the close of the market, the Composite Index lost 0.14 points to close at 1,143.06, the All T&T Index rose 1.28 points to close at 1,969.34 and the Cross Listed Index fell 0.21 points to end at 41.48.
Gains| Stocks increasing in price at the close are, Clico Investment Fund with 45,152 shares, valued at $1,023,843, advanced by 10 cents to $22.70, National Enterprises contributed 24,500 shares with a value of $428,260, while gaining a cent, to $16.48. Scotiabank traded 3,046 shares valued at $179,166 and advanced by 12 cent to end at $58.82 and Trinidad Cement a volume of 71,250 shares being traded for $162,663 gained 15 cents to end the day at $2.30.
Declines| The stocks declining at the end of trading are, First Citizens Bank traded 4,507 shares as the price slipped by 1 cent to $36.76, National Commercial Bank (NCB), with 122,940 shares changing hands, for a value of $131,546. NCB’s price fell 3 cents to $1.07, followed by Praetorian Property Mutual Fund in trading 31,000 units but fell 10 cents, to close at $3.40 and Republic Bank traded a mere 16 shares, and ended with a 1 cent loss, to $119.96.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Massy Holdings traded just 49 shares to close at $68.48, Sagicor Financial Corporation added 10,500 shares at $6, and Scotia Investments traded 1,000 units at $1.45.
Small fall in profits at Blue Power.
Image courtesy of Graur Codrin/FreeDigitalPhotos.net
Lumber division revenue fell from $366.8 million in 2013 and that of the Soap Division grew from $154 million to hit, $360.8 million and $175.7 million respectively, resulting in total revenues falling 6 percent in the October quarter to $259 million and rising 3 percent for the six months to $536 million. Sales in the Lumber Depot division fell from $191 million last year, to $176 million this year, there were some one off sales, in 2013. Profit in the lumber division fell as well, from $29 million to $17 million for the half year. Notwithstanding, pressure on sales, margin improved during the year. The company held a tight lid on cost in the latest quarter, but administrative cost climbed 20 percent for the six months.
Earnings per share are still strong at 91 cents and should go on to approach the $2 level, by year-end. The stock last sold at $6.50, is undervalued and should enjoy some recovery in price. IC Insider is maintaining its BUY RATED status on the stock although a return to growth in profit s may have to await the 2016 fiscal year.The stock is listed on the junior market of the Jamaica Stock Exchange. The company primarily manufactures soaps and trade in Lumber.
J$ lost ground on Thursday as volumes fall
The Jamaican dollar lost ground against the British pound, the US dollar, but picked up against the Canadian dollar, on Thursday. Authorized dealers purchased the equivalent of only US$23,655,831 versus US$31,732,868, on Wednesday, and sold the equivalent of US$20,111,379 compared with US$31,966,559 on Wednesday.
In US dollar trading, dealers bought US$20,915,015 compared to US$28,285,332 on Wednesday. The buying rate for the US dollar gained 2 cents to $112.94 and US$18,955,032 was sold versus US$30,430,998 on Wednesday. The selling rate climbed 5 cents to $113.54. The Canadian dollar buying rate rose 6 cents to $98.14 with dealers buying C$1,103,035 and selling C$435,771, at an average selling rate that declined 21 cents, to $100.23. The rate for buying the British Pound fell 9 cents to $175.80, for the purchase of £1,057,396, while £416,104 was sold, the rate climbed 33 cents to $178.54. Other currencies bought, amounted to the equivalent of US$136,316, while the equivalent of US$117,294, was sold.
Highs & Lows| The highest buying rate for the US dollar, closed 2 cents higher at $113.72, the lowest buying and highest selling rates are unchanged at $93.10 and $119.30 respectively, but the lowest selling rate dropped back $15.56 to $94.94. The highest buying rate for the Canadian dollar fell 30 cents to $100.50, the lowest buying rate and highest selling rates are unchanged at $80.51 and $103.79 respectively. The lowest selling rate fell 55 cents to $97. The highest buying rate for the British Pound, was off 20 cents to $178.80. The lowest buying rate rose 83 to $144.09, the highest selling rate jumped $1.07 to $185.75 and the lowest selling rate slipped $1.25 to $173.
Profit jump 440% at Supreme Ventures
Profit for the September quarter, at Supreme Ventures jumped 440 percent over the 2013 results, hitting $184 million in the process and a sharp climb from the $34 million realized in the 2013 period.
For the nine months ending September this year, profit after tax rose by a strong 41 percent, to $617 million, with earnings per share of 23 cents, putting the company on target to hit 30 cents per share for the full year to December. The gambling industry can have fettle results from time to time as has happened in the past at this company.
The strong improved profit results, flowed from a 16 percent sales rise in sales revenue in the quarter, to $9.9 billion and a stronger 22 percent for the nine months, to $30.1 billion. Gross profit grew at a slower pace of 7 percent for the three months and 11 percent for the nine months.
Segment results| Segment results show Supreme with challenges. While lottery earnings, climbed 35 percent for the year to date, to reach $1.22 billion and other areas grew from $102 million to $108 million, Sports betting losses are worsening even as revenues climbed from $177 million in 2013 to $418 million in 2014. The sharp growth in sports betting is attributable to betting on world cup football games. The segment lost $87 million in 2013 and $148 million in 2014 so far. Revenues fell for the Gaming and hospitality segment, from $394 million in 2013, to $314 million in 2014, but the losses were reduced from $440 million to $376 million. There are no noticeable improvements in the losses in the September quarter, for either loss making segments.
Administrative expenses dropped 18 percent, in the quarter due mainly to lower charges for professional fees, compared with the 2013, quarter and 4 percent for the nine months to September. While taxation increased, it was much slower than the growth in pretax profit. If the company could cut out the segment losses or sharply reduce them, earnings could jump as the losses amount to about 20 cents per share after tax.
The financials remain strong with equity of close to $3.9 billion and cash and investments of $1.9 billion against current liabilities of $1.6 billion.
