Archives for January 2016

Juniors start 2016 at new high

January 4, 2016 by IC Insider.com

Lasco Financial traded at a new 52 weeks’ high high of $3.90

The junior market started 2016 with the index gaining 23.73 points to end at 1,814.78 for a new record high. The market closed with 13 securities trading 6 of which advanced, 2 declined with 4 closing at a new 52 weeks high and one at an intraday high. A volume of 1,707,388 units changed hands, valued at $6,741,784.
At the close, 1 security ended with no bids to buy and 8 securities had no stocks being offered for sale. A total of 2 stocks closed with bids higher than their last traded prices while 1 closed with a lower offer.
In trading, Access Financial Services closed at $16 with 8,510 units changing hands, C2W Music closed with a gain of 1 cent as 256,277 units changed hands to a new 52 weeks’ high of 40 cents, Caribbean Cream ended with 500,000 shares changing hands at $4.08, Caribbean Flavours traded 45,000 units to close with a loss of 44 cents at $9. Caribbean Producers traded 3,340 units to close with a gain of 5 cents, at $5.50, Consolidated Bakeries gained 4 cents to end at $1.49 with 111,500 units changing hands,

General Accident traded 5,600 shares to close at $2.05, Honey Bun rose 3 cents, to end at a 52 weeks’ high of $6.18 with 120,000 units changing hands. Jamaica Teas ended at $5.05 with a loss of 5 cents while 28,634 units traded, KLE Group ended at $1.87 with 17,920 shares changing hands, Lasco Distributors closed with 389,944 shares changing hands at $5.50, but traded at an intraday 52 weeks’ high of $5.55. Lasco Financial closed at a 52 weeks’ high of $3.90, with a rise of 20 cents with 50,001 shares changing hands and Lasco Manufacturing closed at $3.58 with 170,662 shares trading, for an 8 cents rise.

Filed Under: JSE Junior Market, Stock Market Tagged With: C2W Music, Caribbean Flavours, Caribbean Producers, Daily Trading, Honey Bun, Jamaican Stock, Jamaican Teas, Lasco, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Trading Activity

BUY RATED top Carib markets with 830%

January 4, 2016 by IC Insider.com

The JSE stock racked up huge gains in 2015

IC BUY RATED stocks were top of the Caribbean markets in Jamaica and Trinidad and Tobago for 2015, with Jamaica Stock Exchange share, chalking up a massive gain of 830 percent since IC Insider elevated it to BUY RATED status.Caribbean Cement followed with gains of 640 percent, Caribbean Cream with 444 percent and Trinidad Cement with a 299 percent increase on the Trinidad market.
While it was easy to make money in Jamaica, with profits rising and interest rates falling, developments in Trinidad went in the opposite direction, with interest rates rising and profits under pressure with the economy ended in recession.
At the beginning of 2015 of the 14 junior market selections, few recorded gains and only Knutsford Express with a 17 percent increase reflecting any meaningful positive movement. Losses were large, with AMG Packaging down 39 percent, Blue Power 31 percent, Caribbean Cream 23 percent, Jamaica Teas 28 percent, Lasco Financial 37 percent and Lasco Manufacturing 32 percent. What a difference a year can make? By the end of 2015, gains were all over the place with the list having 17 companies with two being dropped. There were no losing stocks in the list that had a new addition, tTech which could be listed this week. Honey Bun was added to the listing in November and gained 9 percent since. Eight stocks have more than doubled, four gained 40 percent to 91 percent. Caribbean Cream jumped 292 percent to be the top selection in this market, followed by Lasco Distributors up 274 percent. Blue Power was removed from the list in July with a small gain.
In the JSE main market, at the start of 2015, Hardware and Lumber was the best performing stock with gains of 62 percent followed by Cable & Wireless with 47 percent and Jamaica Broilers had the worst performance with a loss of 24 percent. In all, 7 of the 15 selections were lower than at the time they were BUY RATED.
By year-end, all selections in the JSE main market were up, with Scotia Investments having a mere 15 percent increase, being the poorest performer. This stock is being moved to Market Watch as the 2015 profit performance was far too disappointing to warrant buying now, while Hardware and Lumber remains a hold. The rest, present opportunities for continuing profit making. JMMB Group ended with just 28 percent gain, but seems undervalued at the current price. While the list had a few lousy performers, the same can’t be said about a 640 percent gain in Caribbean Cement and 830 percent increase for Jamaica Stock Exchange share. In all, 9 stocks posted gains in excess of 100 percent and 4 below 100 percent but with a 50 percent increase and more.
There were 13 selections in the Trinidad market with Trinidad Cement being the best performer with gains of 150 percent, the next was Point Lisas with 11 percent at the start of 2015. Five stocks suffered losses with the highest being 22 percent and the next 18 percent. For 2015 the price of Trinidad Cement is up 299 percent followed by National Flour with a 59 percent gain.
Looking ahead, the junior stocks should continue to grow, with several of the companies actively expanding resulting in profits climbing at a fast pace. There are a few stocks to be cautious of just now. Lasco Distributors selling at almost 16 times 2016 March earnings. Growth should be strong but unless investors have a long term objective they should be careful buying at current price level, the same applies to Lasco Financial that is selling at 15 times earnings. Dolphin Cove remains a hold at this time.
The Trinidad market needs to be watched at this stage, with the country needing to adjust to the lower price of oil and the recession now being endured.

Filed Under: Buy Rated, Company News, Stocks to watch Tagged With: AMG Packaging, Blue Power, C&WJ, Cable & Wireless, Caribbean Cement, D&G, Dolphin Cove, Hardware & Lumber, Honey Bun, Jamaica Broilers, Jamaica Stock Exchange, Jamaican Stock, JMMB, JSE Company, Knutsford Express, Lasco, Lasco Distributors, Lasco Financial, Lasco Manufacturing, National Flour Mills, Point Lisas, Trinidad Cement, tTech

JSE off to positive start to 2016

January 4, 2016 by IC Insider.com

The JSE main market starts 2016 off on a positive note with all major indices increasing in mid-morning trading and with a few stocks recording new highs. A total of 26 securities traded amounting to 2,148,475 units changing hands with 13 rising, while 2 declined.
The all Jamaica Composite Index rose 730.79 points to 168,094.04 the JSE Market Index gained 653.92 points to 151346.05, the JSE combined index added 638.18 points to 158,907.32 and the junior market index is up 2.32 points to 1,793.37.

Filed Under: JSE Main Market, Stock Market

Dividend triples for H&L owners

January 3, 2016 by IC Insider.com

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Shareholders of Hardware Lumber (HL) will be paid an interim dividend for the year 2015 of One Dollar and Nine cents per stock unit on January 29, this year, to shareholders on record as at the close of business on January 15.
The ex-dividend date for the payment is the January 13. The company paid 32 cents per share in dividends in 2014 and 30 cents in 2013.
The payment comes against the background of lower profits in the year to September and acquisition of the majority shares by a group of investors.
Total revenue for the nine months to September 2015 was $5.37 billion or 2.3 percent more than the comparative period in 2014. Profit after tax for the nine-month to September 2015 was $64 million, 43 percent less than the $113 million for the same period in 2014 and earnings per share of 79 cents, compared to $1.40 for the similar period in 2014.
On Thursday December 30, Grace Kennedy’s 58.15 percent interest amounting to 47,013,417 shares in Hardware & Lumber, were traded over the Jamaica Stock Exchange at $18.50 each.
The shares were bought by Argyle Industries Inc. (“Argyle”) a St. Lucian Company special purpose vehicle incorporated for the purpose of acquiring and holding the Investor’s equity interests in Hardware & Lumber.

Filed Under: Company News, Dividends Tagged With: Grace Kennedy, H&L, Jamaica Stock Exchange

26 stocks rose over 100%

January 2, 2016 by IC Insider.com

The Jamaica stock market ended a momentous 2015 with the overall market doubling, aided by a 160 percent in the junior market to land the Jamaican market as the leader in the world in 2015. At the close, all three main market indices made huge gains to reach new record highs.
The JSE combined market index recorded gains of 102 percent for the year, the all Jamaica composite up 99 percent with the JSE Market Index climbing 97 percent.
In a year when just about anyone could use a dart to pick winning stocks out of the 51 securities that rose with gains ranging from a low of 1 percent to a high of 1,086 percent. Five stocks fell up to 17 percent and one ended with the price unchanged. A total of 25 securities rose by 103% or more and 16 between 50% and 95 percent.
After nearly 11 years passed, with the market not rising above the record set in 2005, the record was finally broken in the second half of 2015 as an announced takeover offer for the shares of Desnoes and Geddes helped push the market to new highs, but it was more than that. Treasury bill rates peaked at 9 percent in March 2014, falling to 6 percent by the end of 2015 was a major catalyst in igniting prices higher, aided by some strong increases in profit of a wide range of companies. The top 15 performing stocks for 2015 are those in the table. The Jamaica Stock Exchange delivered a stunning 1,085 percent gain for investors that were invested in the stock from the start of the year, followed by Pulse Investments with 757 percent and Caribbean Cement with 726 percent.

JSE stock gained 1,085% in 2015

The top performing junior market stock is Caribbean Cream with 444 percent, followed by Caribbean Flavours with 302 percent.
With the level of gains in 2015, the PE ratio of the market rose sharply to an average around 10 times 2015 earnings. Some stocks are selling above the average. Interest rates on Treasury bills are around 6 percent but that should fall in 2016 and will result in higher PE ratios as stocks become more attractive as an investment means than before. The local economy grew 1.5 percent in the September quarter, much higher than the previous two quarters, suggesting potential for higher growth levels in 2016, if so corporate profits should continue to grow, hence 2016 should be seeing continuation of the market growing.
With data going back to the start of the Jamaica stock market, indicating that on average only 2 out of the top 10 stocks in a year repeat that performance in the subsequent year, investors should be looking outside the top 10 performing stocks for big winners in 2016. Of the top ten ones that could do very well are Pulse, Caribbean Flavour, Honey Bun. Jamaica Stock Exchange should continue to see attractive gains, with increased stock market activities in 2016. That should mean more revenues and profits, but it will be difficult to see them in the top 10. With the company paying a high level of dividends, investors could see the stock as very attractive for income and thus drive the price higher than profits may suggest is possible.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: Canadian dollar, Caribbean Cement, Caribbean Flavours, D&G, Honey Bun, Jamaica Stock Exchange, Jamaican Stock, JSE Company, PE Ratios, Pulse Investments, treasury bill

1% growth in 2015 for Jamaica

January 1, 2016 by IC Insider.com

Manufacturing grew sharply

The Jamaican economy should record growth of about 1 percent for 2015 based on an increase of 1.5 percent in the September quarter last year over the similar quarter in 2014. The performance albeit small, would be an improvement over 2014 when the Jamaican economy eked out growth of 0.4 percent compared to the previous year.
In the first half of 2014, the Jamaican economy enjoyed growth 1.75 percent with negative growth in the latter half. Growth in 2015 will be the third year of increased output for the economy with very moderate growth for 2013 around 0.2 percent. Importantly, the latest data may be indicating that growth may be picking up pace and could be above 1.5 percent from now onwards, from very low levels, for the past three years.
Preliminary data from the Statistical Institute of Jamaica (STATIN) shows the 2015 performance in the latest quarter contrasting with an increase of just 0.6 percent in the second quarter, over the similar quarter of 2014 in real terms. Statin had earlier in the year reported that the Jamaican economy grew by 0.4 percent in the first quarter compared to the similar quarter of 2014.
The 2015 September’s quarter performance “was due to 3.9 percent increase in the
Goods Producing industries and 0.7 percent in the Services industries. All industries within the Goods Producing industries recorded increased output except Mining & Quarrying which declined by 0.9 percent,” Statin stated.

Agriculture, Forestry & Fishing grew by 4.2 percent, Manufacturing grew by 7.9 percent resulting from higher output levels in the Food, Beverages & Tobacco by 3.3 percent and Other Manufacturing 14.8 percent, due to an 82 percent increase in petroleum refining. This reflected a return to normal productive activity at the petroleum refinery during this quarter, as the plant was closed for operational maintenance in August and September 2014.
Construction increased by 0.7 percent, due mainly Statin said “to increased output from non-residential projects, which includes the continued expansion in hotels as activities in civil engineering works declined for the period”. Output from the Mining & quarrying industry was constrained by mechanical problems at one of the plants as well as the quality of bauxite mined, the report stated.
Improved performance in the Services industries resulted from increased output in all industries except the producers of Government services which declined by 0.1 percent. Increased value added was recorded for: Electricity & Water Supply up by 3.1 percent, Hotels & Restaurants 1.3 percent, Transport, Storage & Communication 1.5 percent, Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment 0.5 percent, Finance & Insurance Services 0.6 percent, Real Estate, Renting & Business Activities and Other Services 0.5 percent.
The Hotels & Restaurants industry continues to benefit from higher tourist arrivals from two of the main markets; the United States of America (USA) and Europe.