Proven Investments traded 65 million shares on Tuesday, dominated trading with 99.96 percent of the day’s volume on the JSE USD market closed and leading to the volume of shares changing hands 104 percent valued 3,756 percent more than on Monday.
Seven securities traded, on a day when no stock gained compared to six on Monday and ended, with prices of four declining and three ending unchanged. The US Denominated Equities Index fell 1.10 points to end at 186.79.
The PE Ratio, a measure that computes appropriate stock values, averages 11.7 based on ICInsider.com’s forecast of 2021-22 earnings.
Overall, 64,942,767 shares traded for US$15,026,017, up from 31,764,409 units at US$389,704 on Monday. Trading averaged 9,277,538 units at US$2,146,574, compared to 5,294,068 shares at US$64,951 on Monday and the month to date averages 967,76 shares at US$150,051 versus to 397,483 units at US$13,035 on Monday. August ended with an average of 210,413 units for US$12,959.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling price and one with a lower offer.
At the close, First Rock Capital remained at 7 US cents with an exchange of 5,479 shares, MPC Caribbean Clean Energy settled at US$1 with a transfer of 498 stocks, Proven Investments declined by 0.34 of a cent to end at 23.15 US cents with 64,918,595 units changing hands. Sterling Investments finished at 2.09 US cents with investors switching ownership of 200 stock units, Sygnus Credit Investments USD dropped 1.24 cents to 11.76 US cents with a transfer of 6,530 shares and Transjamaican Highway lost 0.03 of a cent to close at 0.97 US cents with 553 units crossing the exchange.
In the preference segment, JMMB Group 6% fell 3 cents to close at US$1.01 after exchanging 10,912 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Archives for September 2021
Proven dominance shows on JSE USD market
Stock trading picks up in Trinidad
In trading activity on Tuesday on the Trinidad and Tobago Stock Exchange, the market closed with an equal number of stocks rising and falling. The market rose after trading 2,005 percent more shares, having a value that jumped 270 percent higher than Monday.
At the close, 18 securities traded up from 12 on Monday, with stocks traded split equally at six each between those rising, declining and those ending unchanged. The Composite Index popped 1.76 points to 1,434.69, the All T&T Index increased 0.90 points to settle at 1,933.95 and the Cross-Listed Index rose 0.38 points to finish at 126.21.
A total of 5,054,897 shares traded for $12,069,400 versus 240,192 units at $3,264,363 on Monday. An average of 280,828 units traded at $670,522 up from 20,016 shares at $272,030 on Monday, with trading month to date averaging 37,573 units at $445,070 versus 23,539 units at $432,063. The average trade for August amounts to 16,186 units at $226,311.
Investor’s Choice bid-offer indicator shows two stocks ended with a bid higher than their last selling prices and one with a lower offer.
At the close, Agostini’s fell 5 cents to $24.50 after trading 1,739 shares, Angostura Holdings remained at $17.10 in switching ownership of 64 stock units, Calypso Macro Investment Fund rallied 30 cents to $16.50 in an exchange of 1,400 units. Clico Investment Fund declined 7 cents to $26.50 with an exchange of 5,239 stocks, Endeavour Holdings advanced 1 cent to $7.02 trading 100 stocks, First Citizens Bank lost 18 cents in ending at $50.56 after 8,610 units changed hands. Guardian Holdings ended at $32.75, with 455 stock units crossing the market, Guardian Media popped 1 cent to close at $3.01 in trading 3,397 shares, JMMB Group held at $2.22 trading 5,010,040 stocks. Massy Holdings increased 99 cents in closing at $83 while exchanging two stock units, National Enterprises climbed 4 cents to $3.29, with 55 units clearing the market, National Flour Mills remained at $1.90 after 671 shares crossed the exchange. NCB Financial Group gained 5 cents in ending at $8.30, with 35 stock units changing hands, Scotiabank remained at $60.55, with 1,139 stocks crossing the market, Trinidad & Tobago NGL dropped 10 cents to end at $17.40 after exchanging 5,071 units. Trinidad Cement fell 4 cents to $3.96 with the swapping of 12,670 shares, Unilever Caribbean was unchanged at $16.22 with an exchange of 4,000 stocks and West Indian Tobacco dropped 5 cents in closing at $30.94 trading 210 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading spike on JSE USD market on Monday
Eight times more money passed through the JSE USD market on Monday with the volume of shares trading surging 5,076 percent over Friday’s and resulted in more stocks rising than falling after trading cooled down.
Six securities traded down from seven on Friday with four rising, one declining and one ending unchanged. The JSE US Denominated Equities Index rallied 4.68 points to 187.89. The PE Ratio, a measure that computes appropriate stock values, averages 11.8 based on ICInsider.com’s forecast of 2021-22 earnings.
Overall, 31,764,409 shares traded for US$389,704 up from 613,698 units at US$47,818 on Friday. Trading averaged 5,294,068 units at US$64,951 compared to 87,671 shares at US$6,831 on Friday and month to date averages, 397,483 at US$13,035 versus 91,447 units at US$9,791 on Friday. August ended with an average of 210,413 units for US$12,959.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than its last selling price and two with lower offers.
At the close, First Rock Capital remained at 7 US cents after 884,883 shares traded, Proven Investments gained 0.29 of a cent to end at 23.49 US cents with an exchange of 5,665 stocks, Sterling Investments lost 0.05 of a cent to end at 2.09 US cents with 150,632 units changing hands. Sygnus Credit Investments USD gained 0.1 of a cent to finish at 13 US cents with a transfer of 86,783 stock units and Transjamaican Highway advanced 0.18 cents to settle at 1 US cent with 30,628,178 shares crossing the exchange.
In the preference segment, JMMB Group 6% popped 1 cent to close at US$1.04 with 8,268 units changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Bullish signals flashing for T&TSE
Market activity jumped sharply on Monday over Thursday after the market reopened from the Independence holiday on Friday, resulting in just one stock falling at the close of trading. After trading 637 percent more shares, having 305 percent greater value than the previous trading day, the Trinidad and Tobago Stock Exchange closed higher.
Investor’s Choice bid-offer indicator flashed a short-term bullish signal, with seven stocks ending with bids higher than their last selling prices and only two with lower offers.
Twelve securities traded compared to 14 on Friday, with six stocks rising, one declining and five ended unchanged. The Composite Index popped 7.48 points to 1,432.93, the All T&T Index gained 4.17 points to settle at 1,933.05 and the Cross-Listed Index gained 1.54 points to settle at 125.83.
A total of, 240,192 shares traded, for $3,264,363, up from 32,569 units at $805,417 on Friday. An average of 20,016 units traded at $272,030 compared to 2,326 at $57,530 on Friday, with trading month to date averaging 23,539 units at $432,063 versus 23,680 units at $438,465. The average trade for August amounts to 16,186 units at $226,311.
At the close, Agostini’s traded 80 shares at $24.55, Clico Investment Fund ended at $26.57 while exchanging 4,153 stocks, First Citizens Bank rose 23 cents to $50.74 after trading ten stock units. GraceKennedy remained at $6.30 with 37,000 units clearing the market, Guardian Holdings closed at $32.75 after exchanging 250 shares, JMMB Group popped 2 cents to $2.22, with an exchange of 20,060 stocks. Massy Holdings inched 1 cent higher to $82.01 in an exchange of 13,849 stock units, NCB Financial Group rose 19 cents to $8.25 after finishing trading of 157,000 units, Republic Financial Holdings dropped $2.08 to $136.42 in trading 2,310 stock units. Scotiabank gained 75 cents to close at $60.55, with 242 stocks crossing the exchange, Trinidad & Tobago NGL popped 75 cents to $17.50 after exchanging 4,129 shares and West Indian Tobacco remained at $30.99 in switching ownership of 1,109 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Lumber out AMG now in ICTOP10
The Jamaican stock markets continued to bounce around in the past week, with both markets closing lower than the previous week, with Barita Investments APO draining funds and attention from secondary market trading, the absence of any other significant price moving news and Bank of Jamaica’s tightening of the financial market.
Against this background, there was little movement in and out of the ICTOP10 listings this past week, but AMG Packaging joined the Junior Market ICTOP 10 even as the price rose 21 percent from $1.66 last week to $2.01 this week.
After returning to the Junior Market ICTOP10 last week, Lumber Depot gave way this past week to AMG, with earnings projected at 25 cents for the year ending August 2022. If all goes well, the warehouse expansion could improve the company’s fortunes and that of shareholders.
Elsewhere, in the Junior Market, Stationery and Office Supplies pulled back to $5.76 from $6.60 at the end of the prior week. Access Financial fell to $18.75 from $21.49 last week, General Accident fell from $5.54 last week to $5.15, Medical Disposables slipped from $4.94 to $4.46, Caribbean Assurance fell from $1.80 to $1.66 and Caribbean Cream moved up to $6.60, from $6.05 last week.
In the Main Market, Carib Producers rose from $4.40 to $4.65, JMMB Group popped from $35.74 to $38.95, Guardian Holdings dropped $590 to $581 and Grace Kennedy slipped from $100 to $99.19, Radio Jamaica rose from $3.58 to $3.80 and Sygnus Credit Investments declined from $16 to $15.75.
The top three Main Market stocks are Berger Paints, followed by Guardian Holdings and JMMB Group, with expected gains of 208 to 263 percent for the three, versus last weeks’ 212 to 257 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by Medical Disposables and General Accident. All three have the potential to gain between 250 percent and 307 percent, up from 224 percent and 291 percent last week.
This past week, the average gains projected for the TOP 10 Junior Market stocks moved from 197 percent to 214 percent and Main Market stocks moved from 173 percent to 166 percent.
The Junior Market closed the week with an average PE 12.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the historical average of 17 for March this year based on 2020 earnings. The TOP 10 stocks trade at a PE of 6.5, with a 54 percent discount to that market’s PE. The overall Junior Market can gain 65 percent to March next year, based on an average PE of 20 and 40 percent based on an average PE of 17.
The JSE Main Market ended the week at an average PE of 15.5, some distance from 19 in March, this suggests a possible 23 percent rise for the market at a PE of 19 and 29 percent at a PE of 20, to March 2022.The Main Market TOP 10 trades at a PE of 7.6, with a 50 percent discount to the PE of that market, well off the potential of 20.
ICTOP10 is a selection of stocks that are more likely to be the great winners within fifteen months and not necessarily the best in the market. ICInsider.com ranks stocks to separate the big winners from the rest, allowing investors to focus on potentially huge gains, helping to keep out an emotional attachment to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on the possible increase for each company, based on the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
JSE USD Market slips quietly into weekend
The number of securities trading on Friday rose above that on Thursday, with investors exchanging 134 percent more shares than they did on Thursday in swapping three percent more funds, as well and resulted in rising stocks just outnumbering falling ones at the end of market activity on the JSE USD market for the week.
Seven securities traded, compared to six on Thursday with prices of three rising, two declining and two ending unchanged.
The US Denominated Equities Index lost 1.33 points to end at 183.21, falling nearly two percent for the year to date. The PE Ratio, a measure that computes appropriate stock values, averages 11.5 based on ICInsider.com’s 2021-22 earnings forecast.
Overall, 613,698 shares traded for US$47,818 compared to 262,786 units at US$46,376 on Thursday. Trading averaged 87,671 units at US$6,831 versus 43,798 shares for US$7,731 on Thursday and month to date an average of 91,447 at US$9,791 versus 91,744 units for US$10,023 on Thursday. August ended with an average of 210,413 units for US$12,959.
Investor’s Choice bid-offer indicator shows no stock ended with a bid higher than its last selling price and two closed with lower offers.
At the close, First Rock Capital fell 0.01 of a cent to t 7 US cents with an exchange of 275,265 shares, Margaritaville remained at 9 US cents with the transfer of 21,432 stocks, Proven Investments advanced 0.2 of a cent to 23.2 US cents with 95,980 units traded. Sterling Investments popped 0.14 of a cent to 2.14 US cents with 2,295 stock units passing through the market, Sygnus Credit Investments USD share ended at 12.9 US cents with investors switching ownership of 15,000 stocks and Transjamaican Highway dropped 0.07 of a cent to close at 0.82 US cents with 203,700 units crossing the exchange.
In the preference segment, JMMB Group 6% gained 2 cents to settle at US$1.03 with 26 shares changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Shocking 4 years of Cargo Handlers errors
The number of shares issued by publicly listed companies is very important information for investors to know, but investors would not think so when examining interim financial statements in Jamaica and Trinidad and Tobago of some of the companies.
There have been so many occasions one has to search high and low to find it if at all it is reported in the interim numbers. This is such a simple matter and the stock exchanges in the region could cure it easily, by making it one of the items that must be included in quarterly reports. It should be included as a part of the statement of movement in Shareholders’ equity.
The latest shocking reporting is that of Cargo Handlers that shows the number of shares issued as a part of the statement of shareholders’ equity. The oddity is the company reporting only 37.466 million issued shares since 2018 when it increased to more than 374 million units. The Jamaica Stock Exchange website shows them as having 416.25 million shares issued and the audited accounts show that the change took place in 2018 the numbers moving from 37.485 to 374.653 million shares. One wonders why no one discovered this glaring error when the list of top 10 shareholders show four of them having more shares than what they list as issued. The error goes back to 2018 for all of the quarterly reports.
This is such a glaring error and neither the Stock Exchange, the Financial Services Commission the directors of the company or its accounting staff have found out.
Our reporting standards are not up to scratch and some persons in the financial system love to talk about best practices globally.
Take the matter of segment reporting. Some companies report it quarterly and some only annually. Most correctly report the current period and the comparative previous year’s period. Why can’t the JSE insist on some minimum standards for the benefit of investors so they get information consistently? Limners and Bards is the latest company to provide a quarterly report with no segment results yet they report it in the audited report albeit just one year forcing investors to have to go back to the previous year’s report for the comparison. Seems if that is the approach they should just report the current year’s figures and let investors go back to the previous year’s reports for profit and balance sheet information.
The vast majority of listed companies report profit results with direct and indirect costs and gross profit. But others do not. The group shockingly includes GraceKennedy, 138 Student Living, Knutsford Express. It is full time that companies lift the standard of reporting so that investors can get pertinent information to use in their investment decision making. In response to a question put to Don Wehby about the bulking of all cost on the profit statement suggest that they are in compliance with accounting standards, but that is such a lame and shocking excuse from a company of such standing in the country. Seprod produces it, Jamaica Broilers does it and several other listed companies so why not Grace. Are grace directors suggesting that their shareholders are lesser persons than those of other companies? The case of 138 Student Living is shocking when one considers that the Chairman, Ian Parsard is also Group Senior Vice President – Finance & Corporate Planning at Jamaica Broilers.
Communication with investors is a subjective matter but there are some simple matters that it just takes some thinking or consulting to get right.
AMG Packaging is in a class by itself when it comes to poor communication. The company has embarked on a major capital project, but the directors appear to be of the view that minority shareholders are best kept in as much darkness as possible about it. The audited accounts for 2020 are silent on any commitment to the project.
The latest quarterly the only capital spend, is shown as work in progress on the balance sheet in the amount of $57 million, with no comments on the progress, the total commitment and when it is expected to be complete and be in use. Worse there are no comments on its use. It is noted that the purpose has moved from a warehouse to a factory between 2018 and now.
In the 2018 annual report, the Chairman stated that “the Company recently took an option to purchase an adjoining property. If the transaction is completed, the additional space will be used to alleviate some of the space constraints in the existing facility, making operations more efficient.”
In the 2019 annual report “The Company completed the acquisition on the property at 12 Retirement Crescent which will allow us to expand our operations and to better serve our customers.” The company also stated that they “obtained funding from Proven Wealth Limited to assist with the development of 12 Retirement Crescent. The KSAC is in the process of reviewing the architectural drawings for 12 Retirement.”
The 2020 annual report states, “the company plans on utilizing the strong cash and cash equivalents position into developing 12 Retirement Crescent. The pandemic had caused the development of 12 Retirement Crescent to delay from 2020 to 2021. A contractor has been chosen and the building of an additional 11,370 square feet is set to begin in February 2021.”
In the results to February this year, the only comment made about the development is “that the new steel frame warehouse purchased from China arrived and construction commenced. The financial statement shows WIP at $49 million, with a zero balance in the November quarter.”