Archives for November 2020

TTSE closed mixed on Monday

November 2, 2020 by IC Insider.com

The volume and value of stocks traded on the Trinidad and Tobago Stock Exchange on Monday fell 90 percent and 92 percent, respectively, compared to Friday, resulting in mixed movements in the market indices.
The market closed with 11 securities trading, down from fifteen on Friday, and closed with three stocks advancing, four declining and four remaining unchanged. Trading resulted in 62,793 shares for $849,435 compared to 602,518 shares valued $10,526,304 on Friday.
The average trade for the day amounted to 5,708 units at $77,221 versus an average of 40,168 units at $701,754 for each security on Friday. October closed with an average of 16,922 shares for $285,061.
The T&T Composite Index fell by 1.68 points to 1,304.83, the All T&T Index gained 0.26 points to 1,754.72, while the Cross Listed Index lost 0.50 points to close at 115.55.
The Investor’s Choice bid-offer indicator ended with bids of four stocks closing higher than their last selling prices and four with lower offers.
Stocks rising│Guardian Holdings added 10 cents to finish at $20.10, in trading 2,192 stock units, Republic Financial Holdings closed 20 cents higher at $141.50, with an exchange of 20 units and Trinidad & Tobago NGL gained 5 cents to end at $15, after a transfer of 82 units.
Stocks declining│Endeavour Holdings shed 1 cent to settle at an all-time low of $12.39, in exchanging 250 units, First Citizens Bank lost 3 cents trading 3,362 stock units to close at $44.50, JMMB Group lost 5 cents and ended at $1.75, with 800 units crossing the exchange and National Enterprises lost 2 cents transferring 10,833 shares at $3.90.
Stocks trading firm│Calypso Macro Index Fund exchanged 500 units at $14, Grace Kennedy closed at $3.60, with 3,004 stock units crossing the market, One Caribbean Media traded 10,000 shares at $4.85 and Unilever Caribbean remained at $17, with 32,000 shares changing hands.

Prices of securities trading are those for the last transaction of each stock unless otherwise stated.

Filed Under: Stock Market, TTSE Market Tagged With: Calypso Micro Index Fund, Clico Investment, Daily Trading, Emerging markets, Emerging Stock, Endeavour Holdings, First Citizens, Grace Kennedy, Guardian Holdings, JMMB Group, National Enterprises, One Caribbean Media, Republic Financial Holdings, Trading Activity, Trinidad & Tobago NGL, TTSE, Unilever Caribbean

Lasco Financial Q2 profit jumps

November 2, 2020 by IC Insider.com

Lasco Financial generated a profit of $136 million in the September quarter compared to a loss of $16 million for the 2019 second quarter. Profit after tax for the six months to September amounts to just $30 million, down from the corresponding period’s $75 million, and an improvement on the first-quarter loss of $106 million.

Lasco Financial former HQ

Earnings per share ended at 10.7 cents for the quarter and just 2.4 cents for the half-year.
For the quarter, revenues fell 5.7 percent or $38 million from the 2019 September quarter, to $617 million, due largely to a $78 million decline in revenues from loans, in the quarter following a $74 million fall in the June quarter, compared with the similar periods in 2019. Remittances grew 11 percent and added $50 million to revenues while Cambio operations contributed 10.8 percent or $34 million to increased revenues, the company’s Managing Director Jacinth Hall-Tracey, informed shareholders in a commentary accompanying the quarterly report. Revenues slipped $140 million from $1.3 billion to $1.16 billion for the six months period.
Administrative and selling and promotion expenses dropped from $1.06 billion to $961 million for the half-year and from $585 million to $400 million for the September quarter. Finance cost for the quarter slipped slightly from $48 million to $45 million and from $96 million to $95 million for the six months. Expenses include loan loss provision of $152 million for the six months compared to $262 million in 2019, and effectively there was an $18 million recovery of doubtful loans in the September quarter.

Jacinth Hall-Tracey, Managing Director of Lasco Financial.

In September 2019, quarter provision for loan losses was $178 million. Taxation dipped slightly, from $38 million for the quarter to $36 million, while the half-year tax provision fell from $76 million to $70 million.
The company generated positive cash flows of $389 million for the half-year, down from $514 million in 2019 and ended the periods with cash and short-term deposits that rose to $1 billion from $307 million. Loans to customers fell to $1.54 billion at the end of March from $1.83 billion at the end of the prior year-end after loan loss provisions rose from $99 million in 2019 to $328 million. Loans to customers are included in the heading of Loans and receivables of $1.6 billion at the end of September. Shareholders equity stood at $1.57 billion and Long-term debt $1.9 billion, up from $1.7 billion at the end of September last year.
The company indicates that “there will now be a shift towards lending again, however, as opportunities for lending are now beginning to manifest as businesses are adjusting to the new normal, with some embracing new opportunities.” The shift to increase lending will add to revenues and profit going forward. With the December quarter being the most profitable, ICInsider.com still holds to the projection of 60 cents per share for the full year, but even if it comes out lower, the stock that closed at $2.11 of the Junior Market of the Jamaica Stocks Exchange on Friday with a PE ratio of just 3.5 is highly undervalued and will move sharply higher.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, junior market, Lasco Financial

Lasco Financial set to dominate IC TOP 10

November 2, 2020 by IC Insider.com

Kremi and NCB Financial are back in the Main and Junior Markets IC TOP 10 lists for the week as Access Financial and Salada Foods moved out, with the former earnings downgraded following the release of half-year results while the latter recovered from the price decline suffered in the previous the week.

Jacinth Hall-Tracey, Managing Director of Lasco Financial.

The past week belonged to Caribbean Cement (CC) that posted strong increased revenues and profit with the stock jumping 12.5 percent from $45.96 to close at $57. As was the case with CC last week, Lasco Financial is set to be a big winner this week, with the company reporting outstanding second-quarter profit that should encourage investors to pick up the stock.
The Main and Junior markets closed trading for October lower than September. Signals in the market point to higher prices ahead. The Junior Market is currently signaling a big surge that will start in a few weeks as short-term moving averages cross over longer-term ones to confirm a strong rally ahead. The big move in the Main market seems a few months away, but signs are that the market should continue to move gradually higher ahead of the year-end.
This week’s focus: Lasco Financial generated $136 million in the September quarter profit compared with a loss of $16 million for the second quarter in the previous year. Profit after tax for the six months to September amounts to just $30 million, down from the corresponding period’s $75 million, and an improvement on the first-quarter loss of $106 million. Earnings per share ended at 10.7 cents for the quarter and 2.4 cents for the half-year. For the quarter, revenues fell 5.7 percent or $38 million from the 2019 September quarter to $617 million, due largely to the decline of revenues from loans that fell 34.5 percent or $152 million in the six months to September, compared with the previous year financial period.
Remittances grew 11 percent and added $50 million to revenues while Cambio operations contributed 10.8 percent or $34 million to increased revenues, the company’s Managing Director Jacinth Hall-Tracey, informed shareholders in a commentary accompanying the quarterly report.
Access Financial reported $62 million in profit after tax for the six-month to September, compared to $280 million for the same period in 2019. Higher revenue in the September quarter was offset by a $45 million increased loan loss provision, resulting in a slightly lower profit of $29 million versus $33 million in the first quarter. The next few quarters will be interesting to watch for future direction.
The top three stocks in Junior Market remain as they were this past week, with the potential to gain between 287 to 723 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. With Lasco Financial posting strong second-quarter results, they will likely drop out of the top three this coming week. The focus on all three is on the 2021 fiscal year profit, projected to recover from reduced profit for the 2020 financial year. With expected gains of 161 to 238 percent, the top three Main Market stocks are now Berger Paints followed by JMMB Group, Radio Jamaica replacing Grace Kennedy in the third position last week.
The market’s targeted average PE ratio is 20, based on companies’ profits reporting full year’s results from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.8 and the Junior Market 12.2, based on ICInsider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 6 at just 49 percent to the Junior Market average. The Main Market TOP 10 stocks trade at a PE of 8.3 or 52 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 287 percent, and 149 percent for the JSE Main Market, based on 2020-21 earnings, indicates potentially greater gains in the Junior Market than the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movement in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.