Three months after Caribbean Cement Company announced its 2020 record cement production of 940,000 metric tons results, approximately 78,000 per month, the company recently reports the production of more than 100,000 metric tonnes of cement in a month in March. It marks the highest monthly production in recent history, the company reported.
“The trend for this quarter is of a higher average than that of the past ten years and is in response to domestic market demand”, a release from the company stated.
In 2020, the company had sales of $20 billion, up 13 percent from $17.8 billion in 2019, with a profit of $3.2 billion, up from $1.9 billion. In the first quarter of 2020, revenues grew by two percent to $4.5 billion, but profit fell to $453 million from $1.1 billion in 2019. In the 2020 first quarter, there was a loss on foreign exchange of $282 million. The company reduced most of its foreign currency exposure. As such there should be minimal exchange losses in the 2021 first quarter.
The company reported sales of $5.77 billion in the September quarter sales were approximately 270,000 tons and in December 2020, quarter sales was around 310,000 resulting in revenues of $6.6 billion.
ICInsider.com estimate revenues to be slightly ahead of the December quarter and has upgraded projections of revenues to $26 billion for 2021 with a net profit of $7.2 billion for EPS of $8.50, up from $6.70 previously.
Cement production is one of many bright spots in the Jamaican economy in 2020 and the current year. The companies shares are listed on the Jamaica Stock Exchange and last traded at $73 with a PE of 8.6 times 2021 earnings and a projected stock price of $160 by early 2022.
Cement production surges with big Q1 profit
Shake up in Junior Market ICTOP10
Trading in the past week saw the Junior Market continuing its bullish rise, to sit at a 14.5 months high, but the Main Market continues to consolidate, sitting well below last April’s peak, but technical signals suggest that this situation is going to end soon.
Increased buying came into the market for Caribbean Cream during the past week, but the price pulled back slightly at the close to $6.34 for the stock to return to the TOP 10 at the expense of Main Event that closed the week with an impressive gain of 36 percent as it closed at $4.74. There were no exits or additions to the Main market TOP 10. Additionally, the top three Junior Market stocks changed markedly, with only one from last week remaining in the top three.
Recent activity in Caribbean Cream’s stock comes against the background of a rising stock price from a low of $4.35 to $6.34 over the past month and seems to suggest that investors are anticipating positive news when the company releases full year results later this month. The board meets next week Friday to consider a dividend. The financials for the full year to February should be released in days after.
The main market continues to trade in a narrow channel and now shows signs that a break out is imminent. First quarter results start coming in the latter part of this month and will determine the short-term move. In this regard, watch Barita Investments, Caribbean Cement, Grace Kennedy, Jamaica Producers, NCB Financial, PanJam Investment and Sagior Group.
The top three stocks in the Junior Market at the end of the last week are Jetcon Corporation followed by Main Event and Elite Diagnostic, but the list has changed and is now headed by Stationery and Office Supplies, followed by Elite Diagnostic and Medical Disposables with the potential to gain between 286 to 317 percent. The top three Main Market stocks remain unchanged, but in a slightly different order, with Radio Jamaica in the number one spot, followed by VM Investments and PanJam Investment, with expected gains of 190 to 394 percent.
Knutsford Express
The Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. Added to the technical indicators is the limited supply of shares for some companies. One such is Caribbean Cream that currently has few offers on the board, the same goes for Elite Diagnostic, Stationery and Office Supplies, Lasco Financial, Main Event, ISP Financial, Cargo Handlers. In the Main Market, Berger Paints, Jamaica Producers and Radio Jamaica show limited supply in the market currently.
This week’s focus: Investors should key an eye on Consolidated Bakeries, Fosrich and Jamaica Producers, this week, all three stocks have very low supplies on offer currently. Lasco Manufacturing has a large volume on the bid at $4.50 at the close on Friday and should also be watched. Knutsford Express is not in our TOP 10, but the latest results show that a turnaround has started with the February quarter showing a moderate loss of a mere $1.7 million from sales that fell 42 percent from $318 million to $185 million. 
The results show a marked improvement over November when revenues fell from $283 million to $149 million with a loss of $34 million. The results for the latest quarter supports ICInsider.com’s forecast for the company to return to profit for the 2022 fiscal year.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. For reference, fiscal 2020-21 average PE ended at 17 for Junior Stocks and 19 times for the Main Market at the end of March 2021. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 12.4 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17. The Junior Market Top 10 stocks average a mere 5.8 at just 46 percent of the market average, indicating strong gains ahead. 
The JSE Main Market ended the week with an overall PE of 15.4, some distance from the 19 the market ended March at. The Main Market TOP 10 trades at a PE of 7.3 or 48 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 252 percent and 185 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 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 movements in and out of the lists weekly. 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.
IC TOP10 gaining from rising Junior Market
Trading in a week cut short by the Easter Monday public holiday and half a day on Friday saw the Junior Market continuing its bullish rise, to sit just a few points below the January 2020 close, but the Main Market continues to consolidate, sitting well below last April peak and even worse, the February level of over 500,000 points.
Caribbean Cream
The past week saw Caribbean Cream finally moved higher, with supplies of the stock drying up at lower levels and few stocks currently on offer, with investors anticipating positive news when the company releases full year results later this month or early in May. The stock dropped out of the Top 10 and now sits at the 11th spot and should have more juice to move much higher, but it will depend on results due in a few weeks’ time.
General Accident moved up to fill the spot left vacant by Caribbean Cream. The main market continues to trade in a narrow channel and shows no sign of a breakout. First quarter results start coming in the latter part of this month and will determine the short-term move. In this regard, watch Barita Investments, Caribbean Cement, Grace Kennedy, NCB Financial, PanJam Investment and Sagior Group.
The top three stocks in the Junior Market at the end of the week are now Jetcon Corporation, followed by Main Event and Elite Diagnostic, with the potential to gain between 275 to 305 percent. The top three Main Market stocks remain unchanged, with Radio Jamaica in the number one spot, with the price moving from $1.48 last week to $1.61, followed by PanJam and VM Investments, with expected gains of 178 to 397 percent.
The Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. Added to the technical indicators is limited supply of shares for some companies. One such is Caribbean Cream that currently has few offers on the board, the same goes for Elite Diagnostic, Stationery and Office Supplies, Lasco Financial Main Event, ISP Financial, Cargo Handlers. In the Main Market, it’s Radio Jamaica and Berger Paints.
The targeted PE ratio averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. For reference, fiscal 2020-21 average PE ended at 17 for Junior Stocks and 19 times for the Main Market at the end of March 2021. 
With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 12.3 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17. The Junior Market Top 10 stocks average a mere 5.7 at just 47 percent of the market average, indicating strong gains ahead. The JSE Main Market ended the week with an overall PE of 15, some distance from the 19 the market ended March at. The Main Market TOP 10 trades at a PE of 7.4 or 50 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 251 percent and 181 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 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 movements in and out of the lists weekly. 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.
Jamaica Broilers profit jumps 64%
Nine months through the fiscal year, profit after tax at Jamaica Broilers Group jumped 64 percent to $1.9 billion, up from $1.1 billion for the similar period to January 2020. The group had a solid third quarter performance registering a 61 percent increase of $287 million over the corresponding period to land at $758 million.
Revenue gains have been small, with a two percent rise to $41 billion for the nine months through January and a three percent rise to $14.7 billion for the third quarter. However, the second quarter enjoyed a seven percent increase in revenue that pushed profit before finance charge up a strong 42 percent at $1.3 billion for the quarter and 35 percent for the nine months at $2.97 billion.
Gross Profit climbed 11 percent to $3.84 billion from $3.45 billion and three percent to $10.28 billion from $9.94 billion in 2020. Gross Profit margin increased to 26 percent in the 2021 quarter from 24 percent in 2020 and remained at 25 percent for the nine months period.
Other Income rose from $81 million in the 2020 January quarter to $225 million and from $184 Million to $453 million for the nine months period.
Distribution Costs fell 14 percent in the third quarter to $601 million from $696 million in 2020 and by 6 percent to $1.7 billion for the nine months period from $1.8 billion in 2020.
Administrative Expenses rose 13 percent to $2.19 billion from $1.94 billion for the latest quarter and fell modestly for the nine months to $6.07 billion from 6.12 billion in 2020. Finance cost climbed 37 percent to $330 million from $240 million in the 2020 January quarter and dropped 33 percent for the nine months to $509 million, from $758 million in 2020.
Segment profits rose in the Jamaica operations by a convincing 29 percent, from a four percent fall in sales for the nine months largely driven by the first quarter performance with a 24 percent increase.
Jamaica Broilers announced a new acquisition last week
Sales in the USA market was up nine percent in Jamaican dollars with profit rising by 10 percent. Haiti continues to operate at a loss, but the group has managed to reduce the loss by 75 percent to just $23 million, with sales improving by 26 percent for the nine month period to $1.7 billion.
The group has been enjoying geometric growth as well as by using cheap debt in financing acquisitions of new businesses, helping to grow profits.
The business brought in gross cash inflows of $3.7 billion, up from $2.3 billion in 2020, $2.15 billion was spent on investing activities versus $2.46 billion in 2020, mainly due to acquisition of property, plant and equipment and ended with cash and equivalent of $3.4 billion up marginally from $3.37 billion in 2020. Borrowings of $20.7 billion as of the end of January 2021, while Shareholders equity stood at $17.9 billion, up from just under $16 billion at the corresponding point in 2020.
Listed among IC.Insider.com’s Top 15 for 2021 and remains on the TOP 10 list. Earnings per share closed out the quarter at 74 cents and $1.77 for the nine months. IC.Insider.com projects earnings per share of $3 for the year ending April and $4 for fiscal 2022. Jamaica Broilers last traded at $31 on Monday with a PE of 10 based on 2021 earnings and 7.4 times 2022 EPS.
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Rising Junior Market shifts IC TOP10
Stationery and Office Supplies (SOS) jumped to the top spot in the Junior Market IC TOP10 this week, with the price falling to $4.78 while PanJam Investment slid into the number two spot for the Main Market, but Radio Jamaica still remains in the number one position.
The top three stocks in the Junior Market are now SOS, followed by Elite Diagnostic Main Event and Jetcon Corporation. The top three Main Market stocks are Radio Jamaica, followed by PanJam and VM Investments. The top three junior Market stocks have the potential to gain between 295 to 318 percent and those in the main market with expected gains of 173 to 452 percent.
TOP 10 stocks had a few changes during the past week, with Berger Paints back in the Main Market TOP10, replacing Sterling Investments that entered the list last week, while for the Junior Market, Caribbean Assurance Brokers returns to the TOP 10 as General Accident moved out.
The Junior Market TOP10 contains several companies that suffered a sharp reversal of fortunes in 2020, with recovery projected in 2021. Green shoots are visible for some, with sales picking up in recent quarters and improving profit. 
Some of these companies may require another quarter or two of improvement before meaningful buying starts. Main Event, Caribbean Producers, Knutsford Express, Express Catering and Stationery and Office Supplies are some of the companies that are in this category.
The Main Market has JMMB Group, Jamaica Broilers, Sygnus Credit Investments and Grace Kennedy that are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
The Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. To benefit from the growth to come, many investors will need to be on board at an early stage.
This week’s focus: Future Energy Source Company Initial Public Offer of 500 million shares, that ICInsider.com indicated last week should be snapped up quickly by investors, with the company having long-term prospects for strong growth, did just that. NCB Capital Markets, the brokers for the issue, reported on Thursday that the issue, priced at 80 cents per share and opened on Wednesday, closed on Thursday after another Junior Market IPO issue was oversubscribed. The successful closure of the issue will see the number of listed companies rising to 42 from the current 41.
The targeted PE ratio averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended at 17.2 for Junior Stocks and 19 times for the Main Market at the end of March 2021. With interest rates on government paper below 5 percent and likely to remain there for a few years, there is the likelihood for the average PE ratios to climb higher during the next twelve months.
The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 14.7 and the Junior Market 9.8, based on ICInsider.com’s projected 2021-22 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 5.4 at just 55 percent of the market average. The Main Market TOP 10 trades at a PE of 7.4 or 50 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 274 percent and 186 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 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 movements in and out of the lists weekly. 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.
Rising Junior Market shifts up IC TOP10
During the past week, the Junior Market moved decisively up, with the market index closing well above the 2,900 mark that became a barrier for weeks, surpassing the 3,000 level, but closed trading since Tuesday just a few points below and is poised to move higher in the weeks ahead. Main Market stocks remain in the consolidation zone awaiting profit results to move prices higher.
TOP 10 stocks had a few changes during the past week, with Berger Paints back in the Main Market TOP10, replacing Sterling Investments that entered the list last week, while in the Junior Market, Caribbean Assurance Brokers returns to the TOP 10 as General Accident moved out.
This publication has stated that Junior Market TOP10 contains several companies that suffered a sharp reversal of fortunes in 2020, with recovery projected in 2021. Green shoots are showing for some with sales picking up in recent quarters, with improving profit. Some of these companies may require another quarter or two of improvement before meaningful buying starts. Main Event is one such company, reporting a profit on reduced income for the January quarter. Revenues climbed solidly in the latest quarter over the October and July quarters, but still far below the prior year’s level. 
Caribbean Producers is another that will definitely benefit from pick up in the tourist trade later in the year. Expect also companies such as Knutsford Express, Express Catering and Stationery and Office Supplies to be on that list.
The Main Market has a number in the list that have put out record profits or show signs of strong earnings in 2021, with the stocks clearly undervalued; these include JMMB Group, Jamaica Broilers, Sygnus Credit Investments and Grace Kennedy that are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
Both the Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. To benefit from the growth in the market to come, many investors will need to be on board at an early stage.
This week’s focus: Future Energy Source Company Initial Public Offer of 500 million shares at 80 cents per share opens on Wednesday, with pretax earnings for the fiscal year to March this year around 7 cents per shares. The shares should be snapped up quickly by investors, with the company having long-term prospects for strong growth.
The top three stocks in the Junior Market mostly changed, with the potential to gain between 285 to 288 percent are Elite Diagnostic, followed by Main Event and Jetcon Corporation. The top three Main Market stocks with expected gains of 173 to 433 percent are Radio Jamaica, followed by VM Investments and Jamaica Broilers.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, up to the second quarter of 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 15 and the Junior Market 10, based on ICInsider.com’s projected 2021-22 earnings.
The PE ratio for the Junior Market Top 10 stocks average a mere 5.5 at just 55 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 7.4 or 50 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 267 percent and 184 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 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 movements in and out of the lists weekly. 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.
Fesco IPO opens next week
Future Energy Source Company (Fesco) initial public offer of shares will open at 9 am on Wednesday, March 31 and close on April 9, at 4 PM, unless it closes earlier.
The issue comprises 300 million new shares with 200 million to be sold by existing shareholders at 80 cents each. If successful, the total issued shares will be 2.5 billion, with the shares slated to list on the Jamaica Stock Exchange Junior Market.
The projection shows a profit of $151 before taxes for the year ended March 2021 from revenues of $7 billion and earnings per share of 7 cents. The company forecast revenues of $106 billion and a profit of $264 million or 10.5 cents per share for 2022.
ICInsider.com had earlier done a detailed review of the offer and rated it a buy with long term growth prospects as there is much room for expansion as it currently has only 14 service stations under its banner. NCB Capital Markets is the lead broker.
Steady market steadies IC TOP10
The JSE Main Market and Junior Market slipped to end the week marginally lower than the close of the previous week. Against the background, Berger Paints was the only stock moving out of the TOP10 as it made way for Sterling Investments.
Junior Market stocks kept above the 2,900 mark of the market index only slipping below that level just one day during the week, as the market continues to consolidate in the move higher. Main Market stocks made attempts to break clear of the consolidation zone but the market is awaiting some strong profit results to move prices and that will not come until late April.
The publication has stated that Junior Market TOP10 contains several companies that suffered a sharp reversal of revenues and profit in 2020, with recovery projected for them in 2021. Green shoots are showing for some with sales picking up in recent quarters with improving bottom-line. Some of these companies may require another quarter or two of improving fortunes before there is meaningful buying into them. Main Event is one such company and it reported a profit on reduced income for the January quarter with revenues climbing solidly in the latest quarter over the October and July quarters.
The Main Market has a number in the list that have put out record profits or show signs of strong earnings in 2021, with the stocks clearly undervalued, these include, JMMB Group, Jamaica Broilers, Sygnus Credit Investments and Grace Kennedy that are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
Both the Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. To benefit from the growth in the market to come many investors will need to be on board at an early stage.
This week’s focus: Limners and Bards reported strong first quarter results with rising revenues and profit. Revenues grew a strong 36 percent over the 2020 period to $356 million with profit rising 36 percent to $67 million as cost of operations rising 38 percent over the 2020 period. The company nevertheless seems set to nearly doubling profit for the full year, with profit of $192 million and earnings per share of 20 cents.
The top three stocks in the Junior Market with the potential to gain between 292 to 312 percent are Main Event followed by Stationery and Office Supplies and Caribbean Producers. With expected gains of 181 to 433 percent, the top three Main Market stocks are, Radio Jamaica, followed by VM Investments and PanJam Investment.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, up to the second quarter of 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 15 and the Junior Market 10, based on ICInsider.com’s projected 2021-22 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 5.5 at just 55 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 7.4 or 49 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 268 percent and 184 percent for the JSE Main Market, based on 2021-22 earnings.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 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 movements in and out of the lists weekly. 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.
Berger Paints holds some promise
Berger Paints held the number one spot in ICInsider.com’s TOP15 list for 2021 based on its performance for the nine months ended September 2020, which has changed with the failure for sales growth to continue into the final quarter.
Revenues climbed eight percent in the September quarter to $574 million, with a gross profit of $304 million. Profit suffered a sharp fall in the June quarter, with sales negatively impacted by the partial closure of some businesses resulting from the spread of the covid-19 pandemic in the country. Revenues for the nine months were down, with profit after tax coming in with a loss of $60 million. Revenues for the fourth quarter to December failed to enjoy the level of growth in the September quarter and dipped against the similar quarter in 2019.
Audited financials for the full year show revenue for 2020 of $2.37 billion, six percent below 2019 figures, with the fourth quarter dipping just two percent at $877 million versus $892 million in 2019. Losses suffered in the earlier part of the year were simply too much for the company to overcome and recoup. Profit before tax for the year was down a noticeable 72 percent to $12 million, but profit before tax for the December quarter of $38 million was vastly better than the loss of $9 realised in the 2019 period. The December quarter profit after tax of $32 million was vastly better than the $11 million in 2019.
Direct operating cost declined by 4 percent or just $38 million to $1.22 billion for 2021. Staff cost also declined from $558 million to $512 million.
At $211 million, cash and bank balances fell 64 percent in 2020, down from the $585 billion recorded at the end of 2019 as the company paid down the $655 million owed to fellow subsidiaries by $552 million. Current assets of $1.3 billion include trade and other receivables of $575 million and inventories of $446 million, down from $639 million in 2019.
Berger Paints is one of IC Insider’s TOP 10 stocks.
Current liabilities ended at $484 million for the financial year, down from $1 billion in 2019, with amounts owing at the end of 2020 include $148 million due to the parent company and $102 million due to fellow subsidiaries. Shareholders’ equity closed out the year at $1.15 billion. The only interest bearing debt was for leasing, amounting to $65 million.
Earnings per share for 2020 was just 5 cents compared to 14 cents in 2019. IC.com projects 2021 earnings of $1.50 as the company benefits from recovery of sales that fell out in 2020 due to the effects of Covid and increased sales from a buoyant construction sector, relatively new automotive paints and better data usage from the new IT system.
The stock last traded at $13 on the Main Market of the Jamaica Stock Exchange and is now at the lower end of the ICTOP10 stocks for 2021 at a PE of 9 times 2021 earnings, but it could surprise with better than expected results.
More growth for Grace
Fresh from a record-breaking profit performance in 2020, Grace Kennedy announced the signing of an agreement to acquire all the shares of Scotia Insurance Eastern Caribbean Limited subject to regulatory approval.
Grace Kennedy HQ in Kingston
Scotia Insurance operates in seven countries in the Eastern Caribbean: Anguilla, Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines. Scotia Insurance offers credit protection regionally to customers of Scotiabank on personal loans, residential mortgages, personal lines of credit, personal and small business credit cards.
According to Don Wehby, CEO of Grace Kennedy, “the operation is profitable but not highly profitable”. Grace’s ownership is likely to result in lower operating cost and a vehicle to do business in other countries and for other financial institutions.
In an investors briefing on Monday, Wehby stated that the proposed acquisition is one of ten that the group is looking at currently, at various stages of assessment or negotiation, including some being stress tested and others at the legal stages.
Wehby in answer to a question on the growth rate of 2020 continuing into 2021 confirmed, that it will as the 2020 growth was achieved after years of work to lay the foundation for it to happen.
tTech limited is a Junior Market that seems set to benefit when the acquisition is concluded, the extent of its involvement will depend on the technology in use and whether the acquisition will continue to utilize the current infrastructure or not. tTech is a major Information Technology supplier to Grace.
Grace is listed on the Jamaica Stock Exchange and currently trades at $90.99, the shares are trading on the Trinidad and Tobago Stock Exchange at TT$4.50, in line with the JSE price.
