Purity’s best year but poor Q4

Consolidated Bakery, better known as Purity, recorded a major improvement in profits from their ill-fated 2012 results. Buoyed by a 41 percent sales increase, the company ended the year with profits of $33 million or just 15 cents per share. Unfortunately for the initial IPO investors, the results although sharply improved, is yet to reach a level that would see the stock reaching its public issue price in the short term.

Results showed impressive quarterly growth, with the first quarter rising 172 percent, followed by 212 percent in the second quarter, 328 percent in the third quarter and 231 percent in the final quarter. Although sales climbed the fastest in last quarter by 52 percent, it resulted in only $2.7 million in profit. Revenues in the first two quarters averaged 32 percent and the third quarter climbed by 51 percent. Growth in revenues is helped by a number of new products the company launched in the past two years.

Gross profit | Gross profit margin improved in the year to reached 54 percent from 52.7 percent in 2012, still lagging gross profit of 62 percent in 2011.

Consolidated_Purity150x150Cost rose sharply in the year with administrative expenses climbing 23.5 percent to reach $123 million, an increase of $23 million and selling and distribution moving up by $23 million or 43 percent, a bit faster than the increase in revenues.

The company has work to do to improve what is a paltry return on equity of 7 percent even as the results exclude the payment of corporate taxes. The stock price to net asset value is only 50 percent and with the PE ratio is at 7 times last year’s earnings, which is at the upper end of valuation for junior market companies. Investors should not see much improvement here until new and improved results starts coming.

Borrowed funds that were at $40 million at the end of 2012 is up to $71 million but is at a very comfortable level with equity at $504 million. Cash funds available amount to $110 million at the end of 2013.

Watch this one | The company has room to grow faster than the economy for a while and this could make it a good growth prospects for investors looking long term. IC Insider’s forecast is 27 cents per share for 2014, suggesting that the price should be moving up from the current $1.10 level during the course of the year.

Tightness in the local economy, to which the company’s fortunes are predominantly tied, can negatively affect sales and cash flow. They seem to have navigated a tough 2013 unscathed and should be able to do well in 2014, which ought not be as challenging as last year. However, the pressures of last year could well weaken many of the company’s customers with the evidence showing up later. So far, that don’t seem to be the case and the next set of results due by mid-May will point to where the wind is blowing.

Related posts | Big profit jump at Purity | Consolidated Bakeries hiked profit

Moderate demand on TTSE but 5 stocks up

Activity on the Trinidad Stock Exchange resulted in the trading of 10 securities on Friday of which 5 advanced, 3 declined and 2 traded firm.
A moderate volume of securities traded amounting to only 220,535 shares valued at $957,901. The Composite Index eased back by 0.89 points to close at 1,178.27, the All T&T Index declined by 2.73 points to 2,000.85 and the Cross Listed Index edged up by 0.13 points to close at 46.66.
TTSE21-3-14Gains| In trading, First Citizens Bank moved 54 cents higher to close at $36.69 with 4,489 shares, First Caribbean International Bank traded 5,000 units at $5.76 for a one cent gain, Jamaica Money Market Brokers gained 2 cents to close at 47 cents, with 102,137 shares changing hands, for a value of $48,004. National Flour Mills traded 60,400 shares for $75,500 with the price closing 8 cents up, to end the day at $1.25, for a new 52 weeks’ high, Republic Bank had 1,335 shares changing hands to close 2 cents higher at $120.02, for a new 52 weeks’ high.
Firm trades| Clico Investment Fund traded 7,325 shares valued at $159,040, the price held at $21.71 and Scotiabank traded 2,622 units to close at $72.
Declines| Guardian Holdings lost a cent, to close at $14.14 in trading 2,000 shares, Trinidad Cement contributed 29,657 shares with a value of $65,245 while losing 10 cents, to close at $2.20 and Sagicor Financial Corporation added 5,570 shares valued at $40,605 and closed down a cent, at $7.29.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.

No winners to be found on TTSE

Market activity on Thursday resulted in the trading of 8 securities of with none advancing, 4 declining and 4 traded firm, only 41,934 shares traded valued at $2,251,206.
The Composite Index eased by 1.08 points to close at 1,179.16, the All T&T Index declined by 2.10 points to 2,003.58 and the Cross Listed Index edged down by 0.01 points to close at 46.53.
TTSE20-3-14Firm trades| First Caribbean International Bank traded 540 units at $5.75, National Commercial Bank contributed 2,400 shares and closed at $1.17, Republic Bank had 12,718 shares changing hands for a value of $1,526,160 to close at $120, West Indian Tobacco added 1,378 shares valued at $162,604 and closed at $118.
Declines| Clico Investment Fund traded 19,700 shares valued at $427,699, the price fell 18 cents to end at $21.72, First Citizens Bank traded 1,148 units, 83 cents lower at $36.15, Grace Kennedy with 3,000 shares traded for $10,920 closed at $3.64 being down a cent and Scotiabank traded 1,050 units in falling 47 cents to close at $72.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.

FX: BOJ action pushes rate down

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Thursday, 20 March 2014 | Bank of Jamaica pushed down foreign exchange rate for the Jamaican dollar when it intervened by making funds available to Authorized Dealers and Cambios at a rate of US$1 to J$109.346 for resale at US$1 to J$109.396. This comes against the rate continuing to race after the Central Bank issued a release on Sunday stating that they were willing to lend support to the market. In other words, a veiled attempt at saying the market was being manipulated.

On Sunday the BOJ stated “Against the background of recent movements in the exchange rate, Bank of Jamaica wishes to assure the public that it stands ready to provide support to prevent disorderly conditions from emerging in the foreign exchange market. Since the beginning of March 2014 the exchange rate has depreciated by J$0.93 (0.85%) against the US dollar. This movement over the two-week period compares to a J$0.49 (0.45%) depreciation over the previous two weeks. The faster pace of depreciation has occurred despite increased supply in the foreign exchange market, where volumes from earners for the month to date are higher than for January and February 2014.”

ThumbsupIstockFreePurchases & Sales | Authorized Dealers bought US$44,344,150 at $109.15 which gained a cent but dumped US$66,475,637 or US$22 million more than the amount bought at $109.42, 24 cents less than on Wednesday, as dealers who were hording the currency released a large portion of their holdings. In contrast US$41 million was bought on Wednesday and $39 million sold. Between Friday last and Wednesday, dealers bought US$17.5 million more than they sold resulting in a total of $22.7 million surplus of buying over selling of all currencies traded.

There was buying of C$478,746 at $95.34 that was off by $1.50 and selling of C$358,349 at $1.57 down to $97.53.  The buying of the pound amounted to £636,781 at $1.94 down to $177.75 and sold £317,117 at $181.16 at 76 cents less than on Wednesday.

Other currencies sold came to the equivalent of US$667,774 with US$635,271 sold.

The total amount of foreign exchange traded came to the equivalent US$46,467,181 being bought and US$67,955,336 sold.

Highs & Lows | The highest buying rate for the US dollar fell 70 cents to $110.30, the lowest was up 25 cents to $88.76 while the highest selling rate came out unchanged at $113.74 and the lowest was up $1.40 to $89.91.

The highest buying rate for the Canadian dollar is down $1.25 to $98.50, the lowest moved down by 62 cents to $77.44.  The highest selling rate was lower by 52 cents at $100.63 and $2.40 came off the the lowest rate to end at $93.30.

The highest buying rate for the British Pound is 10 cents down at $183.10, the lowest buying rate gained 21 cents and ended at $144.84, while the highest selling rate climbed $1.59 to $186.71 and the lowest fell $1.90 to $175.10.

Related post | BOJ suggests FX stability close

Low market activity on TTSE

Trading activity on the Trinidad Stock Exchange saw 304,133 shares changing hands valued at $774,343 as 11 securities traded of which 2 advanced, 3 declined and 6 traded firm.
The Composite Index fell 1.92 points to close at 1,180.24, the All T&T Index declined by 3.82 points to 2,005.68 and the Cross Listed Index remained at 46.54.
TTSE 19-3-14Gains| Clico Investment Fund traded 10,444 shares valued at $226,889 and advanced by 5 cents to end at $21.72 and National Flour traded 10,000 shares valued at $11,700 as the price rose 2 cents to $1.17 a new 52 weeks high.
Firm trades| Stocks trading unchanged are Jamaica Money Market Brokers with 261,044 shares changing hands for a value of $117,470 as the price closed at 45 cents, Scotia Investments contributed 5,005 shares with a value of $7,958 as the price closed at $1.59, Prestige Holdings added 5,000 shares valued at $46,500 and closed at $9.30, Point Lisas Industrial Port Development 2,281 shares at $3.65, Neal & Massy 1,898 shares at $66.30 and First Caribbean International Bank 1,343 units at $5.75
Declines| First Citizens Bank traded 200 shares and lost 37 cents to close at $36.98, Guardian Holdings 4,918 units to end at $14.15, down 32 cents and Scotiabank 2,000 shares at $72.47, down 3 cents.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.

Inflation plummets

Inflation rate for February plummeted to just 0.1 percent or annualised at only 1.2 percent. The movement in the index for February 2014 resulted in a calendar year-to-date inflation of 0.6 percent.

The latest monthly out-turn is the lowest for since January and February 2011 and except for July 2012 with a negative inflation rate, no other month has come close to it.

The main contributors to the movement were the 0.2 percent advance in the index for the division Food and Non-Alcoholic Beverages, the heaviest weighted division, and increases of 0.7 percent each for the divisions Clothing and Footwear and Miscellaneous Goods and Services.

The impact of these increases however was moderated by a 1.2 percent decline in the index for the division Housing, Water, Electricity, Gas and Other Fuels as a result of the decline in the cost of electricity, water, and sewage rates. ‘Alcoholic Beverages and Tobacco’ rose by 0.2 percent, ‘Furnishings, Household Equipment and Routine Household Maintenance 0.6 percent, ‘Health 0.2 percent, ‘Transport’ 0.1 percent.

Negligible movement was recorded for ‘Recreation and Culture’ 0.4 percent, ‘Restaurants and Accommodation Services’ 0.1 percent, ‘Miscellaneous Goods and Services’ 0.7 percent, ‘Education’ and ‘Communication’ for the period under review. There was zero inflation in the rural areas during the month.

Related posts | Inflation moderates slightly | 2013 inflation 9.7%, worse than 2012

TTSE: Market still remains sleepy

Tuesday, 18th March 2014 | Market activity on the Trinidad & Tobago Stock Exchange resulted in trading in 13 securities of which 3 advanced, 2 declined and 8 traded firm as 233,878 shares changed hands valued at $1,766,131.

The price movements had little impact on the indices as the Composite Index inched down 0.01 points to 1,182.16, the All T&T Index declined by 0.02 points to close at 2,009.50 and the Cross Listed Index remained at 46.54.

Gains | Clico Investment Fund traded 15,440 shares valued at $334,508, the price advanced by 2 cents to end at $21.67; First Citizens Bank contributed 13,135 shares with a value of $491,286 as the price climbed 35 cents to close at $37.35 and Unilever Caribbean had 3,026 units to close at $58.07, up 2 cents for a new 52 weeks’ high.

TTSEMar18Firm trades | Angostura Holdings added 5,038 shares valued at $55,418 to close at $11; First Caribbean International Bank traded a volume of 85,245 shares for $490,156 while closing at $5.75; Guardian Holdings had 4,364 units closing at $14.47; Guardian Media 2,140 units closing at $19.75; Jamaica Money Market Brokers had 100,000 shares changing hands for a value of $45,000 to close at 45 cents; National Enterprises traded 900 shares and closed at $18.25; Neal & Massy 320 units closing $66.30 and Prestige Holdings with only 10 shares closed at $9.30.

Declines | ANSA McAL with 260 shares closed at $66.49, down a cent and Praetorian Property Mutual Fund declined by a cent to end at $3.40.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had only 2 stocks with bids higher than the last selling price and 2 stocks with offers that were lower.

FX: Buying down selling up

Monday, 17th March 2014 | Dealers bought US$7 million less than they sold but both the selling and the buying rates fell in today’s ForEx trading. Overall, dealers bought US$26,134,543 versus US$32,158,590 on the previous trading day as the rate fell by 43 cents to an average of $108.25 and sold US$33,188,609 for 4 cents higher at $109.31, $11.5 million more than the amount of US$21,791,303 sold on the previous trading day.

The average buying rate for the Canadian dollar fell 51 cents to $96.32, as C$1,186,679 was purchased by dealers and C$650,246 was sold at $98.81 for a 5 cents rise. There was purchasing of £1,987,834 as the rate fell 36 cents to end at $179.41 and £1,556,902 was sold, with the rate rising $1.36 to $183.65.

Other currencies bought amounted to the equivalent of US$807,867 while US$693,308 was sold.

FX_TRADE+Currency+Mar17Buying of foreign currency on Monday resulted in the equivalent of US$31,292,863 purchased compared with US$35,308,641 purchased on Friday, while dealers sold US$37,085,469 compared to US$24,480,952 on the previous trading day. In contrast on Monday, March 10, dealers bought a total of US$48,574,825 in all currencies and sold the equivalent of US$43,973,841.

Highs & Lows | The highest and lowest rates were mixed on Monday.

FX_TRADE+HighLow+Mar17The highest buying rate for the US dollar was up 25 cents to $110.50, while the other rates were unchanged and closed at $88.51 for the lowest buying rate, $113.42 for the highest selling and $88.09 for the lowest selling rate.

The highest buying rate for the Canadian dollar fell 5 cents to $99.35, the lowest buying rate was up 49 cents at $77.56. The highest selling rate ended up by 9 cents at $100.89 and the lowest selling fell by 25 cents at $93.45.

The highest buying rate for the British Pound rose $2.29 to $184.99, the lowest buying rate was down 83 cents to $144.25. The highest selling rate ended 21 cents lower at $185.97 and the lowest buying rate fell $1 to $173.80.

TTSE: Moderate trading continues

Monday, 17th March 2014 | A total of 10 securities traded on the Trinidad & Tobago Stock Exchange of which 3 advanced, 3 declined and 4 traded firm. The Composite Index declined by 0.75 points to close at 1,182.17, the All T&T Index was edged down by 1.31 points to 2,009.50 and the Cross Listed Index eased by 0.02 points to close at 46.54.

Trading resulted in 184,581 shares crossing hands valued at $3,823,527.

Gains | Clico Investment Fund posting a volume of 146,580 shares valued at $3,173,881, gained 2 cents to close at $21.67; Point Lisas Industrial Port traded 247 units at $3.65 for a 5 cents rise and Scotia Investments had 15,067 shares changing hands for a value of $23,957 to close at $1.59, up 6 cents.

TTSEMar17Declines | First Citizens Bank, with a volume of 9,794 shares, traded for $366,293 as the price fell 65 cents to close at $37; Sagicor Financial Corporation contributed 5,957 shares with a value of $43,486 as the price closed lower by 9 cents at $7.30 and Neal & Massy traded 2,300 units at 2 cents lower at $66.30.

Firm Trades | Angostura Holdings traded just 52 units to close at $11; Guardian Holdings added 3,000 shares valued at $43,410 as the price closed at $14.47; First Caribbean International Bank exchanged 1,500 units at $5.75 and West Indian Tobacco 84 units at $118.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with bids higher than the last selling price and 3 stocks with offers lower.

BOJ suggests FX stability close

Bank of Jamaica, in an unusual weekend press release, indicated that positive trends in the economy and increased flows of foreign exchange in March over the first two months of the year will provide an increasingly solid base for improved stability in the foreign exchange market.

“Since the beginning of March 2014, the exchange rate has depreciated by J$0.93 (0.85%) against the US dollar. This movement over the two-week period compares to a J$0.49 (0.45%) depreciation over the previous two weeks. The faster pace of depreciation has occurred despite increased supply in the foreign exchange market, where volumes from earners for the month to date, are higher than for January and February 2014.” the central bank stated in a release this evening.

Us$_Bankroll280X150“Jamaica’s main economic indicators continue to improve with economic growth resumed in the September quarter and is expected to strengthen over the subsequent six months in the range of 1.0 per cent to 2.0 per cent. Preliminary estimates of the balance of payments indicate that the current account deficit was reduced sharply over the period April 2013 to September 2013, by approximately US$350.0 million. The current level of net international reserves (NIR) is US$1,121.4 million, increasing by US$52.0 million since the end of February 2014. Bank of Jamaica now expects to comfortably meet the NIR target under the International Monetary Fund agreement for the March 2014 quarter. Finally, headline inflation was lower than projected at 0.5 per cent for the month of January and the fiscal year to March 2014 is now likely to fall close to or below the bottom of the 8.5 per cent to 10.5 per cent target range. The BOJ stated that against the background of recent movements in the exchange rate, they wish to assure the public that it stands ready to provide support to prevent disorderly conditions from emerging in the foreign exchange market.” the release concluded.