Trading activity picked up on the Jamaica Stock Exchange Main Market on Tuesday but remained continues at muted levels, with a 166 percent rise in the volume of stocks traded value just 19 percent more than on Monday, from trading in 61 securities up from 57 on Monday with 34 rising, 14 declining and 13 unchanged.
A total of 15,655,244 shares were exchanged for $89,795,027 up from 5,884,158 units at $75,612,128 on Monday.
Trading averaged 256,643 units at $1,472,050 compared with 103,231 shares at $1,326,529 on Monday and month to date, an average of 183,599 units at $2,160,070 versus 179,166 units at $2,201,832 on the previous day. January closed with an average of 205,236 units at $1,805,558.
Wigton Windfarm led trading with 3.93 million shares for 25.1 percent of total volume followed by Transjamaican Highway with 3.0 million units for 19.1 percent of the day’s trade, Sagicor Select Manufacturing & Distribution Fund with 1.25 million units for 8 percent, QWI Investments with 1.22 million units for 7.8 percent, JMMB Group 7.25% preference share due 2024 with 1.16 million units for 7.4 percent and Sagicor Select Financial Fund with 1.08 million units for 6.9 percent market share.
The All Jamaican Composite Index surged 6,007.28 points to end at 378,694.45, the JSE Main Market Index rose 3,927.57 points to 334,642.23 and the JSE Financial Index rose 0.66 points to close at 78.91.
The PE Ratio, a formula to ascertain appropriate stock values, averages 14.2 for the Main Market. The JSE Main and USD Market PE ratios incorporate earnings forecasted by ICInsider.com for companies with the financial year between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows 20 stocks ending with bids higher than their last selling prices and 2 with lower offers.
At the close, Barita Investments advanced $1 to close at $82 in switching ownership of 27,419 shares, Berger Paints dipped 54 cents to $8.95 with 92,706 stock units changing hands, Caribbean Cement rose $1 to $62 with investors transferring 25,454 units. Caribbean Producers rallied $1.05 to end at $10.49 after exchanging 174,352 stocks, Eppley Caribbean Property Fund declined $5 to $41 trading 1,385 units, First Rock Real Estate gained 65 cents in closing at $12.30 as investors exchanged 2,452 shares. GraceKennedy advanced $1.30 to $78.50 in trading 75,517 stock units, Guardian Holdings dropped $9.99 to end at $510 as investors swapped 961 stocks, 
Jamaica Broilers rose $1.50 to close at $36.50 after 143,453 stock units cleared the market. Jamaica Producers popped 44 cents to $22.72 with a transfer of 42,840 stocks, Jamaica Stock Exchange gained 40 cents to close at $14.70 in an exchange of 18,632 shares, JMMB Group lost 49 cents to finish at $30.51 with the swapping of 100,248 units. Kingston Properties gained 85 cents in ending at $7.60 after an exchange of 429,151 stocks, Kingston Wharves rose $3 to settle at $35 after 86,523 stock units passed through the market, Margaritaville shed $2.90 in closing at $16.44 with 3 shares changing hands. MPC Caribbean Clean Energy advanced $14.89 to close at $83.90 in switching ownership of 379 units, NCB Financial declined $4.34 in closing at $72.61 with a transfer of 24,631 stocks, Palace Amusement rallied $1.80 ending at a record high of $7.75, after 51,341 units crossed the exchange. Portland JSX gained 55 cents to end at $11.45 after a transfer of 43,210 stock units, Sagicor Group popped $2.49 to $53.99 in clearing the market with 329,264 shares, Scotia Group rose 51 cents to $34.51 with the swapping of 78,951 units. 
Seprod advanced $1.25 to end at $63.25 after trading 33,205 stocks, Stanley Motta gained 60 cents to close at $5.64 in an exchange of 78,400 stock units, Supreme Ventures rose $1.38 in closing at $26.39 after trading 70,835 shares and Sygnus Credit Investments USD share advanced $2.09 ending at $22.99 after exchanging 85 stocks.In the preference segment, Jamaica Public Service 7% climbed $5.57 to close at a record high of $22.83 in transferring 1 stock unit and 138 Student Living preference share rallied $8.65 to end at $74.10 as investors exchanged 120 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Archives for February 2023
Month end gain for Junior Market
The Junior Market of the Jamaica Stock Exchange squeezed out a modest gain on Tuesday to close out the month after a 75 percent rise in the volume of stocks traded, with an 82 percent increase in value compared with Monday, after 46 securities changed hands, up from with 42 on Monday and ended with prices of 22 rising, 15 declining and nine trading unchanged.
A total of 15,831,268 shares were exchanged for $44,907,966 up from 9,033,630 units at $24,644,140 on Monday.
Trading averaged 344,158 shares at $976,260 up from 215,086 units at $586,765 on Monday, with trading month to date averaging 318,024 units at $782,332 compared with 316,508 stock units at $771,083 on the previous day. Trading in January averaged 239,755 shares at $646,375.
JFP Ltd led trading with 3.02 million shares for 19.1 percent of total volume, followed by Fosrich with 2.13 million units for 13.4 percent of the day’s trade, Indies Pharma with 1.73 million units for 10.9 percent, Dolla Financial with 1.71 million units for 10.8 percent market share, Spur Tree Spices with 1.56 million units for 9.9 percent and Regency Petroleum with 1.39 million units for 8.8 percent market share.
At the close, the Junior Market Index gained 27.43 points to settle at 3,837.30.
The PE Ratio, a measure of computing appropriate stock values, averages 12.2. PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows 13 stocks ending with bids higher than their last selling prices and 3 with lower offers.
At the close, Access Financial climbed $2.95 to $25.95 after an exchange of 38,787 shares, AMG Packaging lost 10 cents ending at $2.60 after it traded at an intraday 52 weeks’ low of $2.25 and transferring 282,294 stock units, Blue Power gained 15 cents in closing at $2.43 with investors trading 680 units. Cargo Handlers advanced $1.24 to $14.51 with an exchange of 227 stocks, Caribbean Cream shed 19 cents to close at $3.31 after 77,875 stocks passed through the market, Caribbean Flavours dipped 20 cents to close at a 52 weeks’ low of $1.45 with 4,170 shares changing hands. 
Consolidated Bakeries popped 22 cents in closing at $2.42 after a transfer of265 stock units, Dolphin Cove declined 64 cents to $14.56 as investors exchanged 87,758 units, Future Energy Source rallied 15 cents to end at $4.70 with the swapping of 385,383 units. iCreate gained 8 cents in ending at $1.79 after investors exchanged 35,554 stock units, Indies Pharma rose 15 cents to $3.05 in switching ownership of 1,731,974 shares, JFP Ltd gained 23 cents to close at $1.95 in trading 3,024,280 stocks. Knutsford Express advanced $2.90 to a 52 weeks’ high of $13 in an exchange of 111,135 shares, Lasco Distributors gained 9 cents to end at $2.79 with the swapping of 131,491 units, Limners and Bards popped 15 cents in closing at $2.65 with 12,735 stocks changing hands. Lumber Depot rose 13 cents ending at $2.40 with a transfer of 251,965 stock units, Main Event dipped 64 cents to $11.20 after exchanging 111 stock units, Medical Disposables popped 29 cents to finish at $5.14 after trading 18 stocks. 
Regency Petroleum rallied 24 cents in closing at a record high of $2.43 with 1,393,928 shares crossing the exchange, Spur Tree Spices rose 18 cents to close at $2.98 in switching owners of 1,559,762 units and Tropical Battery gained 12 cents to end at $2.34 trading 339,627 stock units.
In the preference segment, CAC 2000 9.5% preference share lost 12 cents ending at $1 in exchanging 1,366 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market surges, sharp drop for USD Market
The Junior Market of the Jamaica Stock Exchange inched higher at the close of trading on Tuesday but the Main Market dropped while JSE USD Market declined a tad, to start the week on a negative note but following yesterday’s trading with the increased issued shares to 862 million units, Palace Amusement traded at a record high of $7.75, up 30 percent for the day on top of a 32 percent increase on Monday.
Trading levels dropped from that on Monday, in exchanging 32,208,706 shares in all three markets, compared to 14,950,243 units on Monday, with a value of $134.7 million, up from $100.26 million previously traded. Trading on the JSE USD market resulted in investors exchanging shares for US$14,037 compared to US$13,457 on Monday.
The JSE Combined Market Index rose 3,913.59 points to 347,390.54, the All Jamaican Composite Index surged 6,007.28 points to 378,694.45, the JSE Main Index rallied 3,927.57 points to 334,642.23, the Junior Market gained 27.43 points to close at 3,837.30 and the JSE USD Market Index shed 17.34 points to end at 230.45.
The market’s PE ratio ended at 19.8 based on 2021-22 earnings and 13.1 times those for 2022-23 at the close of trading.
Investors need pertinent information to successfully navigate investment options in stock markets. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Trading picks up on the Trinidad Exchange
Market activity picked up on Tuesday on the Trinidad and Tobago Stock Exchange, with 156 percent more stocks trading valued 63 percent more than on Monday, resulting from trading in 18 securities compared with 19 on Monday, with prices of five rising, six declining and seven remaining unchanged.
Investors exchanged 1,400,887 shares for $8,927,824, up from 546,993 stock units at $5,480,710 on Monday. An average of 77,827 units were traded at $495,990 compared with 28,789 shares at $288,458 on Monday, with trading month to date averaging 51,996 shares at $458,520 up from 50,570 units at $456,468 on the previous day. The average trade for January amounts to 28,440 at $235,404.
The Composite Index fell 2.33 points to 1,325.48, the All T&T Index advanced 2.35 points to 1,999.50, the SME Index remained at 61.52 and the Cross-Listed Index dropped 1.03 points to 84.58.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and one stock with a lower offer.
At the close, Agostini’s climbed $1.98, ending at a 52 weeks’ high of $59.99, trading 3,504 shares, Ansa Merchant Bank ended at $45 while trading 30 stock units, Endeavour Holdings remained at $11 in an exchange of 581 units. First Citizens Group 13,628 stocks at $50.10, FirstCaribbean International Bank shed 28 cents in closing at $6.22 with the swapping of 20 units. GraceKennedy dropped 2 cents to end at $4.40 after 1,629 shares crossed the market. JMMB Group remained at $1.80, with 596 stock units passing through the exchange, L.J. Williams B share lost 17 cents in ending at $2.55 after an exchange of 785 stocks, Massy Holdings rose 25 cents in closing at $4.95 after a transfer of 1,226,081 stock units. National Enterprises remained at $3.90 with 33,446 shares changing hands, NCB Financial fell 5 cents in closing at $4.05 while trading 92,769 stocks, Point Lisas dipped 2 cents to end at $3.58 with investors transferring 318 units.
Prestige Holdings ended at $6.90 as investors exchanged 825 stocks, Republic Financial declined $1.50 to $137 with a transfer of 7,193 units, Scotiabank increased 7 cents in ending at $78.20 and closed with an exchange of 8,217 stock units. Trinidad & Tobago NGL remained at $21 in an exchange of 567 shares, Unilever Caribbean popped 10 cents in closing at $14.10 in trading 10,195 units and West Indian Tobacco advanced 25 cents to close at $19.90 in switching ownership of 503 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading drops on JSE USD Market
Only two securities were traded in the ordinary shares section of the Jamaica Stock Exchange US dollar market on Monday, leading to a 90 percent fall in the volume of stocks changing hands even as the value traded jumped 210 percent over that on Friday, resulting in the trading of seven securities, similar to Friday, with three rising, one declining and three unchanged.
A total of 32,455 shares were traded for US$13,457 compared with 318,483 units at US$4,336 on Friday.
Trading averaged 4,636 units at US$1,922 compared with 45,498 shares at US$619 on Friday, with a month to date average of 40,468 shares at US$2,015 compared with 42,593 units at US$2,021 on the previous trading day. January trading averaged 48,604 units for US$4,865.
The JSE USD Equities Index lost 0.92 points to end at 247.79.
The PE Ratio, a measure used in computing appropriate stock values, averages 9.7. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than the last selling prices and two with lower offers.
At the close, Sygnus Credit Investments USD share popped 0.4 cents to 10 US cents with an exchange of 170 shares and Transjamaican Highway dipped 0.04 of a cent in closing at 0.9 of one US cent in trading 26,571 stock units.
In the preference segment, Productive Business 9.25% preference share increased 10 cents to close at US$12.10, with 223 units crossing the market, Eppley 6% ended at US$1.15 with one stock unit changing hands, Equityline Mortgage Investment preference share remained at US$1.64 in switching ownership of one stock unit, JMMB Group 5.75% remained at US$2 after finishing with 5,000 shares trading and JMMB Group 6% rallied 0.03 of a cent in closing at US$1.07 as investors exchanged 489 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market falters to start the week
Stocks suffered losses in trading closed on the Jamaica Stock Exchange Main Market on Monday following a 39 percent decline in the volume passing through the exchange and the value 67 percent less than in trading on Friday and ended with trading in 57 securities up from 55 on Friday, resulting in prices of 20 rising, 22 declining and 15 unchanged.
A total of 5,884,158 shares were exchanged for $75,612,128, down from 9,589,463 units at $231,326,583 on Friday.
Trading averaged 103,231 shares at $1,326,529 compared with 174,354 shares at $4,205,938 on Friday and month to date, an average of 179,166 units at $2,201,830 compared to 183,732 units at $2,254,459 on the previous day. January closed with an average of 205,236 stock units at $1,805,558.
Wigton Windfarm led trading with 1.79 million shares for 30.4 percent of the volume traded, Transjamaican Highway followed with 985,284 units for 16.7 percent of the day’s trade and Sagicor Select Financial Fund with 448,665 units for 7.6 percent market share. The All Jamaican Composite Index suffered a significant loss of 4,790.29 points to finish at 372,687.17, the JSE Main Index declined by a more moderate 2,606.82 points to 330,714.66 and the JSE Financial Index slipped 0.38 points to settle at 78.25.
The PE Ratio, a formula to ascertain appropriate stock values, averages 14 for the Main Market. The JSE Main and USD Market PE ratios incorporate earnings forecasted by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows 12 stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Eppley advanced $2.51 to $40 after trading 447 shares, First Rock Real Estate rose $1.55 to $11.65 with a transfer of 220,567 stock units, GraceKennedy fell $1.55 to $77.20 after exchanging 148,988 units. Guardian Holdings climbed $19.99 in closing at $519.99 as investors swapped just 18 stocks, Jamaica Broilers rallied $2 to $35 in trading 12,001 stocks, Jamaica Producers popped $1.03 to close at $22.28 with 22,572 stock units changing hands. 
Massy Holdings gained 90 cents to settle at $79.90 in switching ownership of 23,305 units, NCB Financial shed $1.05 to end at $76.95 in trading 4,205 shares, 138 Student Living popped 69 cents to $5.70 after exchanging 2,000 stock units. Palace Amusement rose $1.45 to $5.95 after 211 stocks passed through the market, following the 600 to 1 stock split taking effect on the market, Proven Investments declined $2 to $27 after a transfer of 26,749 units, Seprod dipped $3.98 to close at $62 after swapping of 371,770 shares and Sygnus Real Estate Finance fell 80 cents to $9.20 after trading 553 stock units.
In the preference segment, Productive Business 10.50% preference share climbed $50 to end at $1,200 with the swapping of 59 units, JMMB Group 7% preference share lost 42 cents 
in closing at $2.39 in switching ownership of 93 shares and 138 Student Living preference share declined $11.55 to $65.45with 20 stocks clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading drops on Junior Market
Stocks traded on Monday with rising stocks edging out declining ones on the Junior Market of the Jamaica Stock Exchange, with the volume falling 72 percent and the value dropping 73 percent compared with Friday that included the block of 26 million Fosrich shares that were traded as the market closed with trading in 42 securities, down from 48 on Friday and ended with 17 rising, 16 declining and 9 closing unchanged.
A total of 9,033,630 shares were traded for $24,644,140, down from 32,804,091 units at $91,381,630 on Friday.
Trading averaged 215,086 shares at $586,765 compared to 683,419 units at $1,903,784 on Friday, with the month to date averaging 316,508 units at $771,164 versus 322,180 stock units at $781,477 on the previous trading day. January closed with an average of 239,755 units at $646,375.
Fosrich led trading with 3.40 million shares for 37.6 percent of total volume followed by Regency Petroleum with 1.12 million units for 12.4 percent of the day’s trade and MFS Capital Partners with 767,223 units for 8.5 percent market share.
At the close, the Junior Market Index popped 8.41 points to settle at 3,809.87.
The PE Ratio, a measure used to compute appropriate stock values, averages 11.6. The PE ratios of Junior Market stocks are computed using the last traded stock price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2022 and August 2023.
Investor’s Choice bid-offer indicator shows six stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Access Financial advanced $1 to $23 as investors exchanged 2,637 shares, Blue Power dipped 15 cents to $2.28 with a transfer of 442 units, Caribbean Cream popped 20 cents to close at $3.50 with an exchange of 5,800 stocks. Dolphin Cove dipped 10 cents to $15.20 with 740 stock units changing hands, 
Elite Diagnostic gained 26 cents to settle at $2.71 after 27,851 units passed through the market, Fosrich rose 10 cents to $3.09 as investors traded 3,395,464 stocks. General Accident shed 38 cents to end at $4.61 with a transfer of 6,100 shares, Honey Bun gained 27 cents to finish at $7.37 in exchanging 878 stock units, iCreate lost 8 cents to close at $1.71 in switching ownership of 66,005 stocks. Indies Pharma rallied 11 cents in closing at $2.90 with the swapping of 20,635 units, JFP Ltd gained 12 cents to close at $1.72 in an exchange of 554,074 stock units, Knutsford Express declined $1 to $10.10 in trading just 505 shares. Lasco Distributors popped 10 cents in ending at $2.70 with an exchange of 216,724 stock units, Lasco Financial lost 29 cents in closing at $2.46 with investors transferring 95,902 stocks, Main Event advanced $1.04 to $11.84 with 1,558 shares changing hands. 
Regency Petroleum gained 24 cents in ending at a record $2.19 after 1,116,676 units passed through the market, Stationery and Office Supplies dipped 30 cents to end at $13.70 in switching ownership of 1,093 stocks and Tropical Battery lost 8 cents in closing at $2.22 while trading 132,449 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Main Market plunges as trading drops on Monday
The Junior Market of the Jamaica Stock Exchange inched higher at the close of trading on Monday but the Main Market dropped while JSE USD Market declined a tad, to start the week on a negative note as Palace Amusement traded with the issued number of shares now increased to 862 million units as it traded x-split at $5.94, to record a gain after the price maxed out for the day with a gain of 32 percent.
Trading levels dropped from that on Friday, with an exchange of just 14,950,243 shares in all three markets, down from 42,712,037 units on Friday, with a value of $100.26 million, well off from $322.7 million previously traded. Trading on the JSE USD market resulted in investors exchanging shares for US$13,457 compared to US$4,336 on Friday.
The JSE Combined Market Index fell 2,350.27 points to 343,477.95, the All Jamaican Composite Index dropped 4,790.29 points to 372,687.17, the JSE Main Index dropped 2,606.82 points to settle at 330,714.66, the Junior Market popped 8.41 points to 3,809.87 and the JSE USD Market Index slipped 0.92 points to end at 247.79.
The market’s PE ratio ended at 19.6 based on 2021-22 earnings and 12.9 times those for 2022-23 at the close of trading.
Investors need pertinent information to successfully navigate many investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Gains for Trinidad stocks
Stocks mostly gained on Monday after a mild increase in the volume of stocks traded on the Trinidad and Tobago Stock Exchange, with the value being 35 percent more than on Friday and resulting in 19 securities changing hands compared with 20 on Friday, with seven stocks rising, one declining and 11 remaining unchanged.
Investors traded 546,993 shares at $5,480,710 compared with 523,071 units at $4,056,217 on Friday.
An average of 28,789 shares were exchanged at $288,458 up from 26,154 units at $202,811 on Friday Trading month to date averages 50,570 shares at $456,473 down from 51,918 units at $466,871 on the previous day. The average trade for January was 28,440 at $235,404.
The Composite Index popped 7.28 points to 1,327.81, the All T&T Index rallied 5.35 points to 1,997.15, the SME Index remained at 61.52 and the Cross-Listed Index popped 1.31 points to 85.61.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, Agostini’s remained at $58.01 trading 2,016 shares, Ansa McAl popped 25 cents in ending at $50.75 after an exchange of 350 stock units, Calypso Macro Investment Fund ended at $21.50, with 496 units changing hands. First Citizens Group remained at $50.10, with 6,036 stocks clearing the market, FirstCaribbean International Bank ended at $6.50 as 1,530 units passed through the market, GraceKennedy remained at $4.42 after ten stocks were traded. 
Guardian Holdings shed 48 cents to end at $25.52 with a transfer of 157 shares, JMMB Group ended at $1.80, with 12,500 stock units crossing the market, L.J. Williams B share remained at $2.72 while exchanging ten stocks. Massy Holdings rallied 5 cents to $4.70 after an exchange of 476,878 shares, NCB Financial increased by 10 cents in closing at $4.10, with 14,926 units crossing the market, One Caribbean Media rose 2 cents to $3.28 after an exchange of 1,500 stock units. Point Lisas ended at $3.60 with ten stock units changing hands, Republic Financial ended at $138.50 as investors exchanged 16,273 units, Scotiabank gained 3 cents after ending at $78.13 with the swapping of 3,360 shares. Trinidad & Tobago NGL advanced 14 cents to close at $21 with an exchange of 3,990 stocks, Trinidad Cement remained at $3.52 after a transfer of 1,150 shares, Unilever Caribbean remained at $14 in an exchange of 1,325 stock units and West Indian Tobacco climbed 4 cents to $19.65 in switching ownership of 4,476 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Q3 profit jumps 40% at Medical Disposables
Profit after tax for the nine months to December last year fell 10.7 percent to $68 million at Medical Disposables, compared with $76 million in 2021. For the quarter, it rose from $37 million to $38. Profit after tax attributable to the company’s shareholders ended 2022 with $58 million, down 10.7 percent from $65 million in the previous year. For the quarter, it climbed 40 percent to $28 million after minority interest compared with $20 million in 2021.
Improved profit margins played a pivotal role in the company’s fortunes in the December quarter, with gross profit margin increasing from 26.8 percent in 2021 to 29 percent in 2022, helping to propel it to the most profitable quarter for the nine months of operations in 2022. Gross Profit margin for the nine months in 2022 increased to 27.26 percent from 25.85 percent in 2021.
Gross profit hit $273 million from sales of $941 million, up from $250 million from sales of $930 million in the second quarter to June. Gross profit for the December quarter improved by 16.6 percent or $39 million compared to the 2021 third quarter.
Sales for the third quarter grew by $66 million or 7.5 percent over the third quarter in 2021, moving from $875 million in the 2021 December quarter, driven by increased demand for pharmaceutical and consumer items, the report stated.
Sales increased by 10.8 percent or $270 million for the nine months to December 2022, to $2.76 billion from $2.49 billion in 2021 and delivered a 16.9 percent improvement in gross profit of $108 million to $753 million from $645 million in 2021.
Selling and administrative cost dipped in the December quarter, compared with the September quarter, to $78 million versus $83 million, while selling and distribution cost rose just $2 million to $114 million. Finance cost spoiled the party, jumping to $31 million from $28.5 million and “was due mainly to an overall upward adjustment in financing, particularly working capital. The increased usage of the working capital lines of credit was deemed necessary to hold greater levels of inventory in an effort to mitigate against any additional supply chain risks that could lead to further out-of-stock instances,” management stated in their report accompanying the Financials.
Medical Disposables traded at a new all-time high of $10.
“Out of stock issues continue to affect the Group’s profitability as suppliers are faced with global supply chain challenges within their operations. The availability of key speciality products such as vaccines and oncology medicines has become infrequent and inconsistent. Our internal estimates have tracked over $100 million in lost sales due to the shortages,” the company stated. That would translate to close to $30 million more in pretax profit.
The operations generated cash inflows of $109 million for the nine months, but working capital needs consumed it all as inventory rose sharply.
At the end of December, inventories increased by $360 million to $1.53 billion, up from $1.17 billion in December 2021. Receivables declined to $603 million at the end of December 2022 from $708 million at the end of 2021. Cash and bank balances rose to $128 from $72 million at the end of 2021. Loans due to lenders amount to $1.14 billion, up from $965 million at the end of 2021 and is just a bit less than shareholders’ equity, that stood at $1.17 billion compared with $1.07 billion at the end of 2021.
The profit for the nine months resulted in earnings per share of 11 cents for the quarter and 22 cents for the nine months.
The company’s focus is on organic growth and expansion from acquisitions where possible, in furtherance of this goal, management is placing a great deal of emphasis on staff retention and recruiting talented personnel to enhance its pool of above average talents. The initial impact will be increased staff costs that will be above the increased revenues, but that will pay good dividends in future years.
ICInsider.com projects earnings of 45 cents for the year and $1 for the fiscal year ending March 2024. At the last traded price of $4.85, the stock trades at 11 times this year’s earnings and five times that of 2024, suggesting much upside potential for the stock price, with the market average PE ratio now around 13 and with several priced above 15 times earnings.
