Republic Bank shares price declined sharply on Wednesday, continuing a negative trend since late 2014 as interest rates have moved up in Trinidad coupled flat results for the bank. The stock seems poised to fall some more as it closed with an offer at the last traded price with no bids in the market at the close.
The Trinidad Stock Exchange ended trading with 8 securities changing hands of which 4 advanced, 3 declined and 1 traded firm with a total of 38,678 units, valued at $1,222,490. At the close of the market, the Composite Index lost 1.43 points to close at 1,151.13, the All T&T Index rose fell by 2.85 points to close at 1,965.56 and the Cross Listed Index remained at 44.14.
Gains| Stocks increasing in price at the close are, First Citizens Bank trading 5,316 shares valued at $189,781, closed with a gain of 1 cent to $35.70, Guardian Holdings trading 25,000 shares valued at $353,750 to close with a gain of 10 cents at $14.15. Scotiabank had just 80 units trading, to close with a gain of 1 cent at $62.34 and Trinidad Cement added 1,000 shares for 6 cents more to close at $2.72.
Declines| The stocks declining at the end of trading are, Clico Investment Fund with 1,587 shares trading, fell 1 cent to end at $$22.55. Republic Bank contributed 4,335 shares with a value of $498,525 while dropping 72 cents, to a new 52 weeks’ low of $115 and West Indian Tobacco suffered a loss of 86 cents, to close at $125.14, while 788 shares changed hands.
Firm Trades| ANSA McAL with 572 shares trading unchanged to ended at $67.01.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower.
Archives for April 2015
Republicbank falls big more coming
Trading off to slow start
Big gains in Buy Rated stocks
TCL posted the highest gains of 172% of all IC Insider’s Buy Rated selections
IC Insiderreports on the listing from time to time do investors can see the movements in the individual stocks. In 2014, the Trinidad companies were out performing those in Jamaica and worse most of the junior market stocks that took a hammering, as interest rates climbed up to the first quarter of 2014. Much has changed since then and now stocks in Jamaica are beating the performance of those in Trinidad.
IC insider’s selections have been doing well for JSE main market but so well for the juniors.There have been 5 winners and 9 losers in the junior market providing an average loss of just 2 percent. The JSE main market has 12 winners, so far and 4 losers, for an average gain of 22 percent and TTSE has an average gain of 11 percent with 7 winners and 6 losers. Two previous winners were removed from the Trinidad list.
A number of the Jamaican companies are reporting strong results for the first quarter of 2015 this bodes well for stock prices, the same can’t be said for the Trinidad companies that are mostly reporting flat profits. The other critical factor is that interest rates have been rising in Trinidad which is negative for stocks and they are falling in Jamaica which has already given stocks a big shot in the arm. Currently investors are focused on the bigger main market stocks but the junior will come into their own later on.
NCB has gained 65 percent since last year’s low but should head much higher, Carib Cement with very strong first quarter result should be well up from the $3 it close at on Tuesday. Trinidad is clearly not the place for much investment, unless ones eyes are on the longer term future.
Why NCB deserved a look then?
NCB closed at a new 52 weeks’ high on of $26.50 on Wednesday
The shares may not be trading in droves recently with the price tending to trade around $17 since early May but investors may be missing a great buying opportunity with a stock that is seriously undervalued.
In Trinidad the stock closed as low as TT$1.04 recently but has moved up to $1.10 on Friday and seems poised to go higher. The bid in Trinidad on Friday’s close was $1.10 (J$19.20) to buy 22,933 units with an offer of 26,000 units at $1.14. On Wednesday the stock traded 69,456 units at $1.08 and gained 2 cents in the process. On Friday 21,322 traded in Jamaica at $18.01 each and 1,396,013 on Thursday between $17 and $18.03. Wednesday saw 21,595 units being traded between $17.30 and $19. One important factor is that the stock is not in great supply.
But it’s the order book on the Jamaica Stock Exchange that is sending a strong message to buy coupled with is 2014 being a year when the results should help stimulate the stock price higher. There are only 280,000 shares on offer in the market but the buying interest is not particularly strong. With the pickup in trading in Trinidad, the price in Jamaica could get a lift and with third quarter results to June which are due in the last week in July, that could strengthen investor’s appetite for the stock and give it a badly needed push.IC Insider forecasts earnings of $5 per share for the current year (2014), so far NCB reported earnings of $2.38 for the first 6 months of the fiscal year. Well NCB went on the report $4.73 per share for the year to September but it took a long time for the stock to rise. Like good cream, goods stocks will eventually rise. Not only has the stock posted strong gains, investors in it have had a very good payment with increased dividends. Interesting while all the potential was there, there are investors who sold around the $17 price level and moved into Alibaba, it being the rage then. The returns of the former speaks volumes about investing in what is known and buying undervalued stocks as Alibaba has gone nowhere since last year while NCB has grown and is heading higher yet.
One Caribbean’s flat profit
One Caribbean Media out of Trinidad is reporting flat profit of $17 million, for the first quarter of this year, from a fall in revenues of $116.7 million compared with $121 million in 2014.
The results were helped by slightly lower administrative cost of $18.9 million versus $19.8 million in 2014 and a small decline in corporate taxes. The results translates to earnings per share of 24 cents. For 2014 the company had earnings of $1.23 per share. For 2015 earnings should remain at the 2014 level.
The company that publishes newspapers and operates TV and radio stations in Trinidad, has equity capital of $686 million with cash funds of $128 million and total liabilities of $145 million. One Caribbean is going to continue to face challenges for a while, with tightness and slow growth in Trinidad, made worse by the sharp fall off in the price of oil, one of the country’s main products.
The stock was once on the BUY RATED list but was removed after it appreciated fully in 2013. The stock last traded on the Trinidad and Tobago Exchange at $22.30, giving it a pretty rich PE of 18.
TCL continues to gain strength
Trinidad Cement posted strong first quarter results for 2015 with profit after tax rising sharply to $42.5 million versus just $13 million the year before, from revenues of $515 million.
Revenues were just slightly better than the $513 million generated in 2014. Group revenue increased, due mainly to cement price increases implemented during 2014 and 11,100 tonnes increase in clinker sales volume. Cement sales volume declined by 4 percent, Management stated in their release of the results to the stock exchanges on which it is listed in Trinidad and Jamaica. Vastly improved results in Jamaica, was one of the major contributor to the improvement.
During the quarter interest cost rose to $56.4 million, compared with $50.8 million but depreciation fell from $31.5 million to $27.7 million incurred in 2014. Taxation charge however, increased from $4 million to $10.4 million.
The company had effectively defaulted on its loans but that has been remedied with the execution of the restructured debt agreements. The loans have now been re-classified from short term to long term, thus improving the working capital from a deficit of $1.5 billion at December 31, 2014, to a surplus of $650 million at March.
The company’s rights issue was successfully concluded in March, with 124.9 million shares issued to raise $361.5 million. In addition, restructured debt agreements with lenders came into effect as at the end of March, the main elements of which include: Interest rate savings of 2 percent reduction; forgiveness of the default moratorium interest from September 30, 2014 and a discount offered by the financiers if the loan is repaid in 90 days.
Funds generated from operation based on the results and the rights issue resulting in net cash balance at the end of March of $548.3 million.
The stock which was elevated to BUY RATED in 2013 continues to hold that status as earnings for the full years heads towards 60 cents per share.
Carib Cement impressive profit
Caribbean Cement posted impressive first quarter results for 2015, with profit after tax rising sharply to $248 million versus just $35 million the year before, from revenues of $3.58 billion. Revenues were just slightly less than the $3.6 billion generated in 2014.
Domestic sales volumes fell 3 percent, while exports declined sharply from 61,000 tonnes to 40,000, however, an increase in clinker sales from 44,261 tonnes to 55,371 mitigated the decline in cement sales somewhat. Lower energy costs, improvements in operational efficiencies, effective control of fixed costs and lower financing costs, were the major factors helping in the improved profit out turn. These results suggest that full year earnings could rise to $1 per share for 2015 and may well exceed it, if energy cost remained contained at current levels.
During the quarter interest cost remained fairly static with $65.5 million incurred, compared with $66 million in 2014 but depreciation charge climbed from $84 million to $93 million.
At the end of the period, cash increased from $178 million to $543 million. As impressive as the results are, the company has an operating deficit of $7 billion that will take years to wipe out, even at the level of profits now being generated. There are capital gains on the books of $1.4 billion, that can be used to offset the operating deficit, thus reducing the overall amount, nevertheless, the resumption of paying dividends is years away.
The stock which was elevated to BUY RATED in 2013 continues to hold that status and traded at $3 on the Jamaica Stock exchanged on Tuesday in response to the results.
J$ falls most against the Pound
The slippage of the Jamaican dollar continued on Tuesday against all its main trading currencies as purchases of all currencies by dealers amounted to US$42,569,572 equivalent, compared with US$47,599,698, on Monday and selling of the equivalent of US$42,408,749 versus sale of US$45,306,652, previously.
In US dollar trading, dealers bought US$39,083,575 compared to US$40,204,355 on Monday. The buying rate for the US dollar was up 22 cents to $115.03 and US$39,865,854 was sold versus US$38,650,336 on Monday, the selling rate rose 9 cents to end at $115.52. The Canadian dollar buying rate fell $1.45 to $93.24 with dealers buying C$1,080,630 and selling C$627,164, at an average rate that declined by 75 cents to $95.18. The rate for buying the British 
Pound climbed $1.93 to $173.01 for the purchase of £1,150,674, while £570,089 was sold, at an average rate that climbed $1.31 to $176.21. At the end of trading it took J$125.63 to purchase the Euro, 26 cents more than on Monday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$123.08 for a rise of 25 cents from Monday’s rate. Other currencies bought, amounted to the equivalent of US$879,276, while the equivalent of US$1,156,585, was sold.
Highs & Lows| The highest buying rate for the US dollar, rose 13 cents to $115.85. The lowest buying rate remained unchanged at $93.94. The highest selling rate rose 33 cents to $120.70 and the lowest selling rate jumped $19.03 to $112.80. 
The highest buying rate for the Canadian dollar climbed 50 cents to $96.20. The lowest buying rate was up 42 cents to $74.87, the highest selling rate gained $1.16 to $98.31 and the lowest selling rate rose 30 cents to $90.30. The highest buying rate for the British Pound, rose 95 cents to $177.20, the lowest buying rate fell 12 cents to $139.32, the highest selling rate climbed 51 cents to $180.27 with the lowest selling rate falling 15 cents to $167.85.
JSE breaks resistance & heading higher
Pan jam gained $3.95 in closing at $60 on Tuesday
Main Market| The JSE Market Index gained 1,387.58 points to 89,858.07, the JSE All Jamaican Composite index rose 1,551.38 points to close at 99,183.79 and the JSE combined index climbed by 1,275.93 points to close at 91,376.07. At the close the market had pierced the resistance just under 99,000 points on the all Jamaica composite Index and seems poised to test the next major level of 109,000 points.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 17 stocks with bids higher than their last selling prices and just 2 with offers that were lower.Cable & Wireless traded 1,365,296 shares at 52 cents, Caribbean Cement traded 9,060 units at $3, up by 30 cents, there was an attempt to trade at $3.30 but that trade was cancelled as it exceeded the level permitted at that time of the trade. The stock was responding to a big jump in the company’s first quarter results for 2015 with profit after tax of $248 million versus just $35 million the year before, these results suggest that full year earnings could rise to $1 per share, as such the stock has much more room to run. Jamaica Broilers ended with 39,344shares at $4.80,
Jamaica Producers gained 50 cents with 12,000 units changing hands at $17.50, the Jamaica Stock Exchange had 150,000 units changing hands at $2.90. National Commercial Bank traded 13,860 shares to close at $28, for a gain of 99 cents. At the close there was a bid for 10,000 units at $28.10 and 600,000 units at $28. Pan Jamaican Investment climbed $3.97 to $60 with 6,550 shares, Sagicor Real Estate X Fund had a large trade of 873,309 units at $6.55,Jamaica Money Market Brokers 8.75% preference share traded 246,146 units at $3.20 after gaining 13 cents. Scotia Group traded only 27,306 shares to close at $22.72 with a gain of 5 cents, Seprod traded only 353 units as the price jumped $2 to $18 and Supreme Ventures closed at a new 52 weeks’ high of $3.20 by gaining 10 cents with 49,476 shares trading.
Juniors down but pregnant to go
Bids are building for Caribbean Cream. the company recently reported strong 9 months’ results.
At the close of the market, there were 8 stocks with bids higher than their last selling prices and just 1 with a lower offer. The junior market ended with 4 securities closing with no bids to buy and 9 securities that had no stocks being offered for sale.
Bids are building for some of the junior market stocks, included in this list are Caribbean Cream with 194,000 units at 75 cents and below 6,535,715 units between 70 and 71 cents, Blue Power with 100,000 units at $8.50, Dolphin Cove 96,171 shares at $9.20, General Accident 76,207 units at $1.73.
and Lasco Manufacturing 187,544 shares at $1.10Stocks trading in the junior market are, Caribbean Producers had 70,000 shares trading at $2.75, with a gain of 5 cents. Dolphin Cove closed at $9.20, with 2,693 shares changing hands, Knutsford express traded 11,534 shares and closed unchanged at $6, Lasco Distributors had 75,720 shares trading at $1.30 for a loss of 7 cents and Lasco Financial Services with 5,500 units traded at the close at $1.15 after gaining 5 cents.
