Archives for May 2015

NCB whips Alibaba in stock gains

May 3, 2015 by
NCB stock beat Alibaba street and lane

NCB stock beat Alibaba street and lane

One aspect of successful investment is not to go after every fad that’s out there. Since the US stock market bottomed after the 2007 collapse and started moving up and the FED kept pushing interest rates lower, the rage has been the gains to be made in this market.
But investors ought to note some elements of successful investments. Markets don’t go up or down for ever. The role interest rate plays in market movement don’t seem to be fully appreciated by many. This applies to real estate, stocks and bond investing alike.
Some feel that Jamaican real estate is cheap, because of crime but that is only a fraction of truth. The undervaluation is tied to high interest rates that require a higher rate of return on investment to compensate, hence a lower valuation of properties. The US stock market has been fueled a great deal by super low interest rates, not unlike what happened in the real estate boom prior to the fall in 2007.
When rates start reversing there is going to be some shake out. Rising interest rates and uncertainty drove down stocks value in Jamaica since 2013. Last year Interest rates started to fall and the local stock market started to respond by June last year, slowly at first, but it gradually gathered momentum and by October really started to move up and accumulating in a rise of 36 percent in the main market stocks since.
Jamaica has undergone a very long bear market, possibly the longest in history, having peaked in 2005, but more so since 2009, when the market fell in response to higher local interest rates. It was the sort of market that causes some investors to want to give up. On the other hand the US market gave the impression that one cannot go wrong by investing therein. The chart below tells why one should be careful when entering markets after several years of strong gains and to focus on investing in stocks that are severely undervalued instead. The payout in one, is highly risky and there are huge payoff for investing in undervalued ones. Its will just be a matter of time for the break out to take place.
Around November last year, an investors sold out National Commercial Bank shares to invest in the newest investing fad at the time – Alibaba. At the time Alibaba was around US$100 and NCB was sold around J$17. The chart below tells how wrong the investor was. NCB shot up 79 percent in Jamaican Dollar terms. Dividends payable adds to the NCB returns less the effect of devaluation of the Jamaican dollar which still leaves a huge gain. On the other hand, Alibaba is now at US$81 and looks like it may well head lower while NCB is definitely heading higher. the details above indicates that all that glitters is not gold, but it indicates how tough a lesson some investors have to learn to make money.

Filed Under: Feature Stories, Investment Tips Tagged With: ,

Supreme’s gaming loss cut by $103m

May 2, 2015 by

SupremeVenturesSVL_600x250Supreme Ventures cut losses in the hospitality segment by a massive $103 million but the segment still lost $47 million leaving more work to be done to remove the losses and put it into a profitable position. The company was not so lucky in the sports betting with increased losses of $12 million or 37.1 percent to $45 million.
The change in these areas coupled with growth in new games helped pushed net profit after tax to $405 million for the three-month period, 20 percent increase, compared to $338 million for the comparative three-month period of 2014. Earnings per stock unit for the quarter amounted to 15.36 cents, compared to 12.82 cents for the corresponding period in 2014.
IC Insider had earlier forecasted profits for 2015 to be in the order of 45 cents per share and have now increased it to 60 cents per share, based on the latest numbers.
The strong profit growth came from a 15 percent growth in total revenues of $11.8 billion or a $1.5 billion increase, over the corresponding period in 2014 and flat expenses during the quarter.
“The Sports Betting segment results show an increase in, which was primarily attributable to higher than designed prize pay-out at 75 percent. The prize liability for the corresponding period in 2014 was 61.29 percent. SupremeVenturesSVLAcropolislogo150x150The Gaming and hospitality segment results show a reduction in losses due to the net effect of the closure of Acropolis Montego Bay, Odyssey and The Castle gaming lounges”, management stated in a release of the quarterly report.
For the December quarter last year, gaming losses amounted to $85 million compared to an average of $126 million in the previous three quarters and sports betting contributed $46 million in losses for the final 2014 quarter. Without the losses in these two areas profit would have been much larger.
At the end of March the company had cash funds of $1.8 billion and should see an annual build-up of around $400 million, even with the increased dividend payments. Equity capital stands at $3.7 billion down from $4 billion in December 2014 and borrowed funds are at only $42 million, leaving the company in a healthy financial position.
The company upped its dividend payment based on these results by 55 percent.

Filed Under: Company News, Company Results

Supreme bumps up dividend again

May 2, 2015 by

SupremeVenturesSVLlogo_150x150Supreme Ventures approved the payment of an interim dividend of 14 cents to be made on 27th May 2015 to shareholders on record as at 14th May 2015 representing an increase of 55.6 percent over the amount paid in 2014.
The approved payment translates to 16 percent rate of return per annum. In addition the company will also be paying the final portion of the special dividend they declared on 2nd March 2015.
The company announced in March, a final ordinary dividend for the year ended December 2014 of 8 cents per share, payable on March 21 and a special dividend of 23 cents per share to be paid on March 21 and 4 cents per share payable on May 27.
SVL paid dividends of 3 cents per share on January 8, last SupremeVenturesSVL_150x150year as well as 3 cents in March, 9 cents in May, another 3 in September and 5 cents per stock on December 9, last year. The final regular dividend for 2014 brings the total relating to the 2014 profit to 19 cents per share or 54 percent of profits for the year. The total dividend payment just approved by the company totals 31 cents per share and is just short of the total profit for 2014, of 35.2 cents per share.
The company just reported a 20 percent increase in after tax to $405 million for the three-month period to March. The latest announcement of the results and dividends are likely to push the stocks much higher in the coming week.

Filed Under: Breaking News, Company News, Dividends Tagged With: , ,

J$ rises vs pound & Canadian

May 1, 2015 by
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Money - coins_graph The slippage of the Jamaican dollar continued on Friday against the US dollar but it rose against the British and the Canadian currencies, Purchases of all currencies by dealers, amounted to US$34,733,786 equivalent, compared with US$29,464,814, on Thursday and selling of the equivalent of US$32,565,352 versus US$32,319,414, previously.
In US dollar trading, dealers bought US$32,036,309 compared to US$25,297,611 on Thursday. The buying rate for the US dollar rose 15 cents to $115.21 and US$30,771,394 was sold versus US$30,716,384 on Thursday, the selling rate increased by 9 cents to end at $115.74. FX sum 1-5-15The Canadian dollar buying rate dropped $1.59 to $92.82 with dealers buying only C$709,151 and selling C$563,451, at an average rate that fell 67 cents to $95.43. The rate for buying the British Pound fell $1.29 to $173.49 for the purchase of £895,063, while £403,562, was sold, at an average rate that declined by $1.87 to $176.23. At the end of trading it took J$129.59 to purchase the Euro, 76 cents more than on Thursday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$126.99 for a rise of 67 cents on Thursday’s rate. Other currencies bought, amounted to the equivalent of US$778,324, while the equivalent of US$714,886, was sold.
Highs & Lows| The highest buying rate for the US dollar, rose 10 cents to $116.15. The lowest buying rate rose 17 cents to $94.36. The highest selling rate remained at $120.91 with the lowest selling rate rising 6 cents to $96.22. FXHL -1-5-15The highest buying rate for the Canadian dollar fell 80 cents to $95.60. The lowest buying rate declined by 62 cents to $75.53, the highest selling rate dropped 80 cents to $97.37 and the lowest selling rate remaining unchanged $91. The highest buying rate for the British Pound, declined $1.50 to $177, the lowest buying rate dipped $1.25 to $141.10, the highest selling rate dropped $1.54 to $180.29 with the lowest selling rate rising $2.95 to $170.

Filed Under: FX Market, Stock Market Tagged With: , , , , , , ,

Juniors near all-time high

May 1, 2015 by

JM 1-5-15 indx Activity on the Junior Market closed with 6 securities trading and ending with 680,118 units changing hands valued at $867,840. The JSE Junior Market Index declined 25.07 points to close at 811.00, with the price of 3 stocks advancing and 4 declining, two stocks reached new 52 weeks high, with one hitting an all-time high.
The index is just 29 points from the all-time high of 840.18 reached in July 2013, this level is likely to be history once the Lasco companies report earnings, which should be the end of May, based on past reporting time frame. With nearly a third of the market closing with bids ahead of the last traded price, the all-time high should be easily taken out in a matter of days. The junior market is lagging the gains of the main market Jamaican stocks with gains of just 14 percent in 2015 and 33 percent from the low of July 2014, compared to 26 percent for the Main market and 39 percent respectively.
At the close of the market, there were 7 stocks with bids higher than their last selling prices and only 2 with lower offers. The junior market ended with 3 securities closing with no bids to buy and 9 securities that had no stocks being offered for sale.JM cht 1-5-15Stocks trading in the junior market are, AMG Packaging with 37,855 shares at $3, Cargo Handlers with 3,700 units at a new all time high of $20.11, after putting on 1 cent, Caribbean Producers had 501,000 shares trading at $3.10 with a gain of 10 cents, with the offer at the close, was $2.99 to buy 100,000 units. Lasco Distributors with only 1,285 shares trading, closed at $1.43, Lasco Financial Services had 134,913 units trading and ended at $1.30 with a gain of 10 cents and Lasco Manufacturing traded just 1,355 shares with a gain of 14 cents to $1.35, for a new 52 weeks’ high.

Filed Under: Feature Stories, JSE Junior Market, Stock Market Tagged With: , , , , , , ,

Moderate price changes on TTSE

May 1, 2015 by

Scotia continues to move higher

Scotia continues to move higher

Trading on the Trinidad Stock Exchange closed the week with 16 securities changing hands of which 5 advanced, 2 declined and 9 traded firm with a total of 657,192units, valued at $4,334,568.
At the close of the market, the Composite Index rose 1.06 points to close at 1,152.40, the All T&T Index rose 0.76 points to close at 1,966.81 and the Cross Listed Index increased by a 19 points to close at 44.32.
Gains| Stocks increasing in price at the close are, Firstcaribbean International Bank which gained just 1 cent in trading 2,000 units at $5.01. First Citizens Bank traded 3,876 shares closed with a gain of 5 cents, JMMB Group with 483,729 shares changing hands for a value of $241,835 and closed at 50 cents, after gaining 5 cents. Scotiabank gained 16 cents to end at $62.50 while trading 720 shares and West Indian Tobacco traded 432 shares to close with a gain of 2 cents to end at $125.16.
Declines| The stocks declining at the end of trading are, Agostini’s traded 796 units, lost 3 cents to end at $17.25 and ANSA Merchant Bank fell 5 cents to close at $38.90 while trading 200 shares.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Clico Investment Fund traded 43,160 shares valued at $973,258 and remained at $22.55. Grace Kennedy contributed 5,050 shares at $3.49, Guardian Media added 11,414 shares valued at $225,541 and closed at $19.76TTSE cht 1-5-15while National Flour Mills closed at $1.60 with 300 units traded. National Enterprises traded 119 shares to close at $17.30 followed by One Caribbean Media with 47,320 shares traded at $22.30 for a value of $1,055,236, Republic Bank traded 11,113 shares valued at $1,279,950 to end at $115. Sagicor Financial Corporation contributed 45,142 shares with a value of $266,337.80, while trading at $5.90 and Trinidad Cement with 1,821 shares traded at $2.75.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator shows 6 stocks with the bid higher than their last selling prices and just 1 with the offer that was lower.

Filed Under: Stock Market, TTSE Market Tagged With: , , , , , , , , , ,

JSE on a gallop to 31/2 year high

May 1, 2015 by

Bull2_150X150As if to make up for lost time the Jamaica Stock Exchange is now on a gallop, putting in another day of outsized gains. The market unlike most of the past 5 days, shot out of the box with a number of trades within 5 minutes of opening. By the close the prices of 16 securities rose with 8 of them closing at 52 weeks’ high and pushing the market to its highest level since mid-November 2011.
The prices of only 2 stocks declined as 23 securities changed hands, ending in 3,992,674 units trading, valued at $35,124,269, in all market segments. Even the junior market that has been a laggard this year, moved up sharply on Friday and is now just 29 points away from its all-time high reached in 2013. JSE sum - 1-5-15
The JSE Market Index gained 2,824.66 points to 96,089.09, the JSE All Jamaican Composite Index jumped 3,158.10 points to close at 106,150.35, just below the level reached on November 11, 2011 and the JSE Combined Index leaped 2,890.21 points to close at 97,932.95.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows stocks with bids higher than their last selling prices and with offers that were lower.
In trading, Cable & Wireless ended with 1,037,588 units to close lower by 4 cents at 48 cents, Caribbean Cement with 902,807 shares changing hands, closed higher by 15 cents to $4,in continued response to excellent Q1 results. Carreras finished with 8,774 shares trading with a gain of 42 cents to a new 52 weeks’ high of $47.50, Desnoes & Geddes finished trading with only 28,000 shares, gaining 47 cents to a new 52 weeks’ high of $6.49, Grace Kennedy concluded trading with 172,590 shares but the price dropped 39 cents to $63.60, Jamaica Broilers ended up trading 66,500 units to close with a gain of 35 cents to $5.10. Jamaica Producers finished trading with just 2,812 shares, with the price rising $1.25 to $18.50.JSE fn qts 1-5-15 There was dealing in 168,500 units of Mayberry Investments as the stock put on 5 cents to close at a new 52 weeks’ high of $2.65, National Commercial Bank contributed 433,054 shares to end with an increase of 42 cents to close at a new 52 weeks’ high of $30.50, the stock traded as high as $31. Sagicor Group ended with 212,335 units changing hands and put on 52 cents, to a new 52 weeks’ high of $11.53 after trading as high as $12.20. Scotia Group closed with 8,627 units and put on $2.26 to a new 52 weeks’ high of $25.49, Jamaica Money Market Brokers 7.50% preference share traded 140,900 units to end at $2.30 and Jamaica Money Market Brokers 8.75% preference share had 80,000 units changing hands at $3.20.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , ,

Market off to brisk start on Friday

May 1, 2015 by

The Jamaica Stock Exchange was off to a spirited start on Friday. By 9.35am, 8 JSE intra 1-5-14securities traded, pushing the all Jamaica composite Index up 550.88 points to 103,543.13 and the JSE market Index up by 492.72 points to 93,757.15.
By 10 am the indices were up strongly as a number of stocks hit new 52 weeks high. The all Jamaica composite Index is up 935.61 points to 103,927.86 and the JSE market Index up by 836.32 points to 94,101.25, after an hours trading and the number of securities trading is up to 11.
Only one junior market stock has traded so far. Stocks pushing the indices are Carreras up to $47.40 from $47.08, Desnoes & Geddes up to $6.49 from $6.02, Sagicor group trading at $12 up from Thursday’s $11.01.

Filed Under: JSE Main Market, Stock Market Tagged With: , ,