IC Insider.com — Page 1412

JSE: NCB hits $20 as market keeps gaining

May 27, 2013 by IC Insider.com

Friday, 24th May 2013 | Gains from National Commercial Bank up $1.16, Carreras up $1, Pan Jamaican Investment Trust up 99 cents and JMMB up 30 cents were strong enough to overcome the $1.54 decline in Jamaica Producers, 33 cents fall in the price of Sagicor Life and $1.13 in Scotia Group to help the main indices post positive gains on Friday.

Junior market | The junior market saw AMG Packaging climbing 50 cents to $4.50 a new 52 weeks high with 58,512 shares trading, Cargo Handlers picked up 17 cents in trading 10,000 units. Lasco Distributor gained 29 cents. The stock traded only traded 3,080 shares but the bid closed above the last selling price with 55,344 units on the bid, at the end of trading. Lasco Financial traded at an all time high of $8.25 up 14 cents on the day. New junior market listed Caribbean Creams traded 650,473 units to close at $1.09 having traded as high as $1.12 on the day. Grace was one of three stocks that traded at 52 weeks high.

Level of trade | Investors poured $20 million into 19 stocks with 1.6 million units changing hands, on a day when advancing stocks again outnumbered declining ones 9 to 6. All of the market’s indices continue to move up on Friday with the exception of the index for cross listed stocks and the US dollar index. In both cases, no stocks were traded.

Indices gain | The all Jamaica composite gained 2,023 points for the week or just over twice the gains of the prior week closing at 86,596.66 points. The junior market gained 15 points less than the 24 points picked up in the previous week, to close at 667.61 points.

Bids above last price | 9 stocks closed with bids that were higher than the last traded price and none closed with offers that were less than the last traded price, an indication that price gains are likely to continue into the coming week.

Stocks to watch | Stocks to watch this coming week include Scotia Group that reported better 6 months results than last year’s half year profit. Others to watch are Grace Kennedy, Blue Power, Lasco Financial, Desnoes & Geddes and JMMB and Sagicor Life.

TTSE: Supply low, inactive trading

May 27, 2013 by IC Insider.com

Friday, 24th May 2013 | Trading on the Trinidad & Tobago Stock Exchange on Friday was even sparser than the day before as a mere 29,245 shares crossed the floor of the Exchange valued at $342,771 and in the mutual fund section just 699 units traded for $14,714. Trading took place in 12 securities of which 3 advanced, 3 declined and 6 traded firm.

Grace Kennedy stock which closed at $3.90 rose 17 cents and 10,000 shares changed hands valued $39,000, followed by National Enterprises, volume of 7,347 shares traded for $115,495. Guardian Holdings contributed 6,050 of the total volume carrying a value of $102,851, while loosing 50 cents to close at $17.

West Indian Tobacco and National Enterprise traded at 52 weeks high.

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

Pan Jam’s profit dented too

May 26, 2013 by IC Insider.com

Pan Jamaican investment trust reported net profit of $224 million, down 55 percent on 2012 earnings of $502 million for the quarter ending March. The results were impacted significantly by Sagicor Life Jamaica Limited (SLJ) participation in the Government of Jamaica National Debt Exchange in February. SLJ recorded a realised loss on the exchange of bonds tendered in the NDX of $1.1 billion. Associated and joint venture companies contributed less profit for the quarter, declining by $136 million compared to the 2012 1st quarter amount of $373 million. The share of SLJ’s earnings, decreased by $175 million (47%) to $194 million.

The earnings per stock come out at $1.05 (2012: $2.36). The fall in earnings from the associates is temporary and will not affect the company’s operations in a major way going forward. The effect is a reduction in interest income as the bonds swapped carry lower coupon rates than the original ones.

Increased cost | The group incurred an increase in finance costs of $179 million and a decrease of $136 million in the share of results of associated and joint venture companies, this was partly offset by increased investment income of $67 million resulting from foreign exchange gains on our US$ investments. Property income was flat year on year, as a $10 million improvement in rental income was offset by reduced net lease recoveries and property appreciation. Operating expenses increased 13 percent or $28 million, driven principally by a 27% increase in general and administrative costs as a result of staff realignment and increased professional fees.

As per the company’s report: “Finance costs increased by $179 million to $195 million for the quarter, resulting from increased debt used to fund the purchase of an additional 8% of SLJ’s shares in July, 2012 and the drawdown of the remainder of the US$17.5 million IFC loan in December, 2012. We have, however, retained a net long position in US$ to ensure that our stockholders’ equity is appropriately protected against devaluation risk. Rentable properties enjoyed occupancy levels exceeding 95% for the 1st quarter, while segment operating profit of $184 million for the quarter was $26 million, 16%, better than last year. Our investment management segment posted operating profit of $28 million for the quarter, more than double last year’s 1st quarter segment operating profit of $12 million.”

Associate & Joint Ventures | “Associated companies consist principally of our 32.8% investment in SLJ. We also hold minority positions in New Castle Co. Limited (owners of the Walkerswood and Busha Browne lines of sauces and seasonings), Mavis Bank Coffee Factory Limited (“Mavis Bank”), Hardware & Lumber Limited (“H&L”), Caribe Hospitality Limited (developers of the planned New Kingston Marriott Courtyard Hotel) and Chukka Caribbean Adventures (“Chukka”) acquired in April 2012.”

H&L reported net earnings of $9.9 million for the 1st quarter, compared to $3.9 million for the same period last year. Revenue and gross margin both increased compared to last year. The investments in Chukka and Mavis Bank produced solid results.

Total assets amount to $21.7 billion and stockholders’ equity increased to $16.5 billion, equating to a book value per stock unit of $78.

Stock outlook | A dividend of $1.10 per stock unit was paid March 2013. The company will not pay the usual quarterly dividend in June, having doubled up on the one paid in March.The stock which traded on Wednesday, 22nd May at $54 is considered to be severely undervalued and is a good long term investment.

To read IC Insider’s latest report “Sagicor undervalued despite $B NDX hit” , click here.

Filed Under: Company News, Company Results Tagged With: JSE Company, Pan Jam, Sagicor

SVL: Revenues down, big profit increase

May 26, 2013 by IC Insider.com

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Supreme Ventures Limited posted net profit after tax for the first quarter of $301 million, a 64 percent increase over $184 million for the comparative period in 2012. The improvement was directly attributable to low lottery game payments for the quarter and a huge change to taxation charge on profit. While pretax profit climbed by $38 million, the tax on profit fell from $162 million in 2012 to just $82 million in 2013. The reduction in taxation is not sustainable. The rate used in the quarter was 25 percent, going forward it will be 30 percent. In all likelihood the charge for the first quarter may also have to be adjusted upwards to 30 percent as well.

“We continue to remind our investors that volatilities in game liabilities can adversely impact profitability in any financial quarter. The overall profitability of the company was also positively impacted by a $791.3 million reduction in direct expenses, reorganization of the company’s operating structure and interest income”, a management statement said.

Challenges | The second quarter onwards is poised to be a very challenging, as new tax measures for the sector took effect in April 2013. The tax package aims to collect a further $1.5 billion from the gaming industry.

The measures increase the tax rate for each lottery game from 17 percent to 20 percent and 23 percent to 25 percent respectively. The Company has taken the decision to absorb the fees for 2013, in light of what they see as uncertainty with the implementation process for this new licensing regime. They also speak of the elimination of the unclaimed prize allocation previously retained by the company. This allocation now has to be paid over to the Betting Gaming and Lotteries Commission. The effect of these new tax measures will no doubt affect the Company’s ability to achieve the levels of profitability projected over 2012.

Revenues | Revenue for the quarter was down 9 percent to $7.4 billion compared to $8.15 billion for the corresponding quarter in 2012. The gaming company management indicated that the decline was mainly due to decreases in lottery and VLT revenues of 11 percent and 39 percent respectively when compared to the same period in 2012. The significant decline in VLT revenues was directly attributable to closure of the Coral Cliff gaming lounge in Montego Bay for refurbishing which was rebranded and reopened as Acropolis Montego Bay on 7th March. Acropolis Portmore was also temporarily closed in January for refurbishing and new layout of the gaming floor. It is yet to be reopened. The Odyssey Gaming Lounge opened on 7th February and is enjoying early market support.

The Earnings per Share was $0.11, compared to $0.07 for the corresponding period in 2012.

The company has equity of $4 billion and borrowed debt of only $324 million. Cash was $1.45 billion at the end of March, more than enough to cover short term liabilities.

A dividend of $0.10 per share amounting to $263.725 million was paid in March. The company says it continues to execute an aggressive dividend payment policy, of quarterly payments based on the company’s performance.

During the quarter, the company commenced a scheme of amalgamating the betting, gaming and lottery operations of its subsidiaries into a single operating entity called Prime Sports (Jamaica) Limited.

The Betting Gaming and Lotteries Commission renewed the lottery license which has been issued to Prime Sports (Jamaica) Limited and will expire in January 2033. The company’s Bookmaker’s Permit was also renewed and issued to Prime Sports (Jamaica) Limited with the next renewal date being 31st March 2015.

Stock outlook | The stock traded on Monday, 2oth May at $3, up from $2.80 before the release of the results and is up from $2.60 at the start of May. Investing in the stock with the hope of short-term gains seem to be a bit of a gamble at this time.

Filed Under: Company News, Company Results Tagged With: JSE Company, Supreme Ventures

Inflation rate down in April

May 25, 2013 by IC Insider.com

Jamaicans were facing slightly lower rate of inflation in April than in the earlier months of the year as the consumer price index fell to 0.4 percent for the month, the lowest since the start of the year. This comes against increased taxation on a number of items beginning of April.

As the All Jamaica ‘All Divisions’ Consumer Price Index for April 2013 registered a 0.4 per cent rate of inflation., ‘Food and Non-Alcoholic Beverages’, the heaviest weighted division in the computation of the index, recorded an increase of 1.0 per cent. This was due mainly to the upward movement in the prices for, ‘Fruit’,’ Meat’ and ‘Bread and Cereals’. This division’s rate was however moderated by a 1.6 per cent decline in the rate for the division ‘Housing, Water, Electricity, Gas and Other Fuels’, the third heaviest weighted division in the Consumer Price Index Basket. This was the result of a reduction in the billing rate for electricity in April relative to March. All other divisions recorded increases lower than 1.0 per cent, with the exception of ‘Clothing and Footwear’, which increased by 1.1 per cent.

The other divisions that recorded increases were ‘Alcoholic Beverages and Tobacco’ 0.7 per cent, ‘Furnishings Household Equipment and Routine Household Maintenance’ 0.7 per cent, ‘Health’ 0.2 per cent, ‘Transport’ 0.3 per cent, ‘Recreation and Culture’ 0.7 per cent, ‘Restaurants and Accommodation Services’ 0.4 per cent, ‘Miscellaneous Goods and Services’ 0.8 per cent, No movement was recorded for ‘Education and ‘Communication’ .

The Statistical Institute of Jamaica collects and collates the data and compiles them into three regions. All three recorded increases; Greater Kingston Metropolitan Area (GKMA) 0.7 per cent, Other Urban Centres (OUC) and Rural Areas each increased by 0.3 per cent.

The movement of prices reflected a calendar year-to-date increase of 3.2 percent.

Filed Under: Economy Tagged With: Economy, GOJ

TTSE: Thursday, 23rd May 2013

May 25, 2013 by IC Insider.com

Trading was very light on the Trinidad & Tobago Stock Exchange today, with just 5 securities trading of which 2 advanced, 1 declined and 2 traded firm.

Activity on a very lackluster market resulted in 150,034 shares trading on the main market valued at $330,999. Trinidad Cement was the volume leader with 126,800 shares changing hands for a value of $122,524, followed by Angostura Holdings with 15,900 shares worth $143,100. Prestige Holdings accounted for 6,765 shares with a value of $63,253.

Clico Investment Fund traded 46,300 shares valued at $974,779. All shares price changes were modest ranging from minus 1 cent to a gain of 3 cents.

5 stocks were being offered at prices below their last selling price and 3 stocks had bids above their last selling price.

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

FX: Wednesday, 22 May 2013

May 25, 2013 by IC Insider.com

USD | The foreign exchange market was in balance today as a total of US$24.2 million were purchased and US$23.3 million sold. The rate paid on average for buying the dollar was J$98.472, slightly lower than Tuesday’s buying rate and they sold it to the public for an average of J$99.11, slightly up on yesterday’s rate. The highest buying rate was J$99.35, up 18 cents on Tuesday’s rate and the lowest was J$81.16 17 cents lower than on Tuesday. Sales took place at J$104.11, some 11 cents more than Tuesday on the high end and J$96.20 on the low end, 15 cents more than Tuesday’s lowest rate.

CAD | Purchasing of Canadian dollars amounted to CAN$522,435 at an average rate of J$94.1682 which was just 2 cents less than the rate on Tuesday. CAN$990,719.46 were sold at an average of J$97.3652 but buyers had to pay 7.5 cents more than the Tuesday average price to get the currency. The highest buy rate for the Canadian dollar was J$96.50 which was 30 cent less than Tuesday and the lowest buy rate was 17 cents less at J$77.27. On the sell side, the highest selling rate was J$99.62, which was lower than Tuesday by 21 cents and the lowest sell rate was J$1.40 more than Tuesday at J$93.80.

GBP | GBP 1,478,798.92 were purchased at a rate of J$148.0187, down 49 cents on Tuesday and GBP 1,112,854.53 were sold at J$149.662, down $1.08. The highest buy rate for the Pound was J$150.50 which was 50 cent less than Tuesday and the lowest buy rate was 62 cents less at J$121.1. On the sell side, the highest selling rate for the Pound was J$153.02 which was lower than Tuesday by J$3.90 cents and the lowest sell rate was $0.55 cents less than Tuesday, at J$145.90.

Overall the market traded the equivalent of US$26,983,184.49 and sold the equivalent of US$26,358,984.87.

Filed Under: FX Market, Stock Market Tagged With: Daily Trading, FX Market, Trading Activity

Pulse looking better

May 23, 2013 by IC Insider.com

Pulse Investments disclosed earnings in the March quarter of $45.4 million a slight improvement over the $44.3 million generated in the 2012 period. For the nine months to date, earnings are up to $148 million against $136 million in 2012. The company generated revenues of $210 million and $171 million for the nine months to March 2012. While the net earnings are close to 2012 figures, the quality this year is better with $99 million being earned to date before a $51.5 million appreciation in investment property (2012 $82.5 million) was booked as income thus boosting the net profits.

Administrative expenses declined in both the quarter and for the nine months this year versus 2012. Earnings per share is put at 16 cents in the quarter and 53 cents year to date suggesting that around 70 cents earnings per share for the full year to June is possible.

The company’s statement of financial position is undergoing a slow metamorphic change as loan liability is down to $24.4 million from $26 million in 2012. Cash funds are up to $13.3 million from $9.9 million in March last year. Trade receivables are down from $50 million at the end of March last year to $22 million this year. Payables are up from $38.3 million to $45.5 million.

Pulse shares last traded at $1.60 but there haven’t been any serious takers for them with an offer in place for several months at $1.60. The stock is undervalued but there is not likely to be any strong demand for a while. All that could change, if the stock market continues to push the prices of the better quality stocks upwards forcing investors to look elsewhere for stocks to invest in. Pulse could come into its own.

Pulse Investments’ business is focused on grooming models and contracting them out to the trade, staging Caribbean Fashion Week, ownership of shops and other property for rent.

Filed Under: Company News, Company Results Tagged With: JSE Company, Pulse

JSE: Wednesday, 22nd May 2013

May 23, 2013 by IC Insider.com

JSE flashes a strong bull signal | When the Jamaica stock market closed there were 12 stocks which had bids higher than the last selling price with no offers below the last selling price, a strong bull signal. Additionally 3 stocks traded at 52 weeks high and the advance/decline ratio was 3 to 1 with 13 stocks gaining and 4 down.

The all Jamaica index closed up 1,025 points ending the day at 86,150 and the main market index was up 582 points closing at 86,275.28. The all Jamaica index is just below the February 6th level of 87,430 points. The most telling bullish sign is that the market index has decisively broken through the upper resistance level of the major downward slopping channel that goes back to 2004. There is one short-term resistance level to break through and this should happen in a day or two as the all Jamaica index is just touching that line. With the positive number of stocks that can’t get orders filled at current levels, the break will happen soon.

Newly listed Caribbean Cream traded as high as $1.20 but closed at $1.1 as over 861,000 shares traded. The offer closed at $1.10 with a bid of $1.07. Carreras closed up $2.48 trading over 86,000 units to close at $60. D&G was up 30 cents closing at $4.90 on very small volume. Grace gained 50 cents closing at $60.50 with only 2,000 shares trading. Junior Market Honey Bun lost 50 cents closing at $3.50 but only 1,000 shares changed hands. Lasco Manufacturing posted a $1.19 gain trading at $12.50 with just 6,000 of the stock traded. Pan Jam lost $3.59 to close down at $54.01 and 11,619 shares traded. Scotia group gained $1.39 closing at $$21.60 and Scotia Investments is up $3 to close at $26.50 with 246,800 units by one buy order on the bid at the last selling price.

Trading took place in 2,700,407 shares with a value of $20,978,749.

Filed Under: JSE Main Market, Stock Market Tagged With: Daily Trading, JSE Company, Trading Activity

Carreras gives 15.3% return

May 23, 2013 by IC Insider.com

Carreras Limited has declared an interim dividend of $1.30 per share and a special dividend of $0.94 per share payable on June 20, 2013 to shareholders on record as at June 6, 2013. The ex-dividend date is June 4, 2013.

This latest dividend brings the total paid since June last year to $7.64. Shareholders who bought shares around the $50 level when Lascelles sold a block of the Carreras shares last year, have enjoyed a 15.3 percent dividend income return. The stock closed today at $60, making a total gain of 35 percent within a year.

Carreras paid an interim dividend of $1.40 per share and a special dividend of $1.20 per share on March 13, 2013, an interim dividend of $1.30 per share was paid on December 11, 2012 and another of $1.50 per share was paid on August 23, last year.