The first tranche payment of J$600 million due on a $2.5 billion secured notes obtained by Pan-Jamaican Investment Trust in 2012, became payable on maturity on July 22, 2014.
Pan Jamaican indicates in a release to the Jamaica Stock Exchange, that arrangements have been made to refinance the amount with effect from July 23, 2014 for a further two years.
The proceed from the notes was obtained when the company acquired additional shares in Sagicor Life Jamaica (now Sagicor Group) in 2012 for a consideration of $3,055,100,542. The original funds were obtained from a private placement with maturities ranging from 2 years to 5 years.
Pan-Jamaican Investment Trust refinances
July 30, 2014 by
Jamaica Money Market Brokers raise US$20M
July 30, 2014 by
Jamaica Money Market Brokers raised US$20,000,000 through the issue and private placement of unsecured extendible notes denominated in United States dollars. The offer was only available to Jamaican residents.
The private placement offer closed on July 18, 2014 and will mature on July 18, 2016. Note holders have an option to either redeem their notes on the Maturity Date or extend the maturity of their notes to July 18, 2019. The interest rate on the original note is 6.75% fixed for two years and 7.75% on the Extended Notes.
JMMB made profit due to the group’s shareholders of $2.83 billion for the year ending March 2014 and had total equity of $18.3 billion.
$100m of Scotia Group trade cancelled
July 28, 2014 by
In Mondays trading on the Jamaica Stock Exchange, MVL Stockbrokers purchased 5 million Scotia Group shares at $20 each, amounting to $100 million. Towards the end of the close in the market, the trades were no longer posted.
A check with the manager of the stock exchange Marlene Street Forrest, stated that “the matter of the trade was brought to my attention and on checking it was discovered that the broker incorrectly entered the order as 5 million units when it should have been 500,000 units. Based on the investigation done and the information gathered, all the selling brokers were contacted to get there approval about the cancellation. This is the norm is such cases, where cancellation is contemplated as such the trades were reversed”. Instructions were given to place orders for $5 million each of Carreras, National Commercial Bank and Scotia shares, Ed Mckie of head of MVL Stockbrokers informed IC Insider. The orders were on behalf of an institution not a pension fund, IC Insider was advised.
In early trading in the market today, there were three significant bids to buy 5 million units of each Carreras at $34, National Commercial Bank at $18 and Scotia at $20. Scotia trades were the only one executed, the other bids were withdrawn before any trade took place. At the end of trading none of the Scotia Shares were traded and the bid was removed. In all likelihood the bids for the smaller quantities will resurface shortly.
Scotia Group pushes All Jamaica Index by 1,786.85
July 25, 2014 by
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Broker house Scotia Investments was the only buyer of the 875,724 Scotia Group shares that change hands in Friday’s trading on the Jamaica Stock Exchange. The prices of the stocks rose to close at $20, but traded as high as $20.99.
For the overall market, the prices of 11 stocks rose and 8 declined as 26 securities changed hands, resulting in 5,240,852 shares trading, valued at $35,553,505.
Main Market indices| The main indices closed sharply higher in Friday’s trading as heavily weighted Scotia Group, jumped to close at $20 by the end of trading. The JSE Market Index surged 1,598.01 points to 71,711.80 and the JSE All Jamaican Composite index exploded by 1,786.85 points to close at 78,895.01.
National Commercial Bank that released results after trading on Thursday, closed up by 6 cents to $18.06 while trading 51,599 shares and closed with a bid of $18.11 to buy 116,978 units.
Sweet River Abattoir & Supplies is not that sweet
July 24, 2014 by
Sweet River Abattoir & Supplies Company Limited is a company the majority of Jamaican are unlikely to know. Well their profile will get a lift, with the release of a prospectus offering up to 46,633,000 Ordinary Shares to the public, at the invitation price of $3.86 each.
The subscription will open on Tuesday 12th August and is scheduled to close on Tuesday 26th August 2014 .The Company is seeking to raise $180 million from the IPO, to be used in reduction of bank loans, construction completion of the new factory facility in Westmoreland, installation of a solar energy generation system, working capital; and payment of the expenses of the Invitation. The minimum amount to be raised to facilitate listing on the junior market of the Jamaica Stock Exchange, is $50 million
Up to 20,763,000 Reserved Shares in the Invitation are for priority applicants. Brokers and advisor for the deal are, MoneyMasters Limited and VM Wealth Management Limited.
The prospectus states that the majority of the shareholders of the Company are pig farmers, some with capacity to substantially increase through-put.
Sweet River in 2012, took a strategic decision to modernize the plant. The Company acquired lands in the Sweet River area of Westmoreland to establish a state of the art abattoir with expanded capacity along with administrative offices and warehousing facilities.
Sweet River planned factory facilities nearing completion in Westmoreland
The company indicates that they are the third largest supplier of pork within the market with approximately twenty-four percent (24%) market share. The Company’s main customers include Grace Food Processors Limited, Caribbean Producers Jamaica Limited, and Hamilton’s Smoke House (a subsidiary of Jamaica Broilers Group).
A pig has the capacity to provide between twelve and eighteen cuts. Currently Sweet River produces twelve cuts from each pig. The Company sources approximately 60 percent of its pigs from ten contract farmers with the remaining coming from some 395 small farmers across ten parishes in Jamaica.
Profit & revenues|In the first year of operations as at March 2010, Sweet River generated revenues of $239 million. For the financial year ending March 2011, revenues fell to $181 million, which is attributed to a shortage of pigs which affected the company’s ability to supply the market. By March 2012, the company enjoyed revenues of $207 million. Revenues rose to $311 million for the financial year to March, 2014.
Profit before taxes increased from $564,000 for the year ending March 2010 to $21 million at March 2014 and was flat with the $22.6 million generated in 2013.
With 51 million shares in issue currently earnings per share works out at 40 cents, placing a valuation of 9.4 times historical earnings. This is well above the junior market valuation. Value based on a book value works out at 3 times book, again a very high valuation. There are other weaknesses. The unknown company and the vast majority of the directors, a one man auditor that is unknown to the investing public and the absence of audited accounts for the March 2014. Serious investors are unlikely to be drawn to this issue for sometime.
Jamaican dollar gains versus US & Canadian
July 22, 2014 by
In Tuesday’s forex trading, buying and selling volumes were more closely matched with funds bought by dealers being slightly above the amounts sold. Dealers bought just over US$13 million in all currencies than they sold.
On Tuesday, dealers bought the equivalent of $25,710,419 versus US$47,763,088 on Monday and sold the equivalent of US$24,985,551 compared to US$34,622,132 on Monday.
In US dollar trading, dealers bought US$23,198,261compared to US$42,021,074 on Monday as the buying rate for the US dollar, slipped 6 cents to $112.08 and sold US$22,007,235 versus US$31,275,581 on Monday, as the rate eased 7 cents to $112.63.
The Canadian dollar buying rate rose 13 cents, to $102.93 with dealers buying C$852,194 and selling C$750,104 as the rate fell 9 cents, to $105.21.
The Pound closed at $189.29, for the purchase of £962,129 down 93 cents, while only £896,565 was sold, with the rate climbing by 40 cents, to $192.68. Other currencies bought, amounted to the equivalent of US$104,562 while selling was the equivalent of US$992,469.
Highs & Lows| All the highs and lows at the end of trading that moved declined. The highest rate for buying the US dollar, closed with a loss of 10 cents at $113.10, the lowest buying rate and the highest selling rate remained unchanged at $91.85 and $117.70 respectively, while the lowest selling rate dropped back by 16 cents cents to $91.85.
The highest buying rate for the Canadian dollar declined by 30 cents, to $105.05 and the lowest buying rate and the highest selling rate and the lowest selling rate were unchanged at $83.21, $107.21 and $100.25 respectively.The highest buying rate for the British Pound, fell 30 cents to $193.30, while the lowest buying and selling rates were unchanged at $153.88 and $185.40 respectively, the highest selling rate fell $3.36 to $195.66.
Lousy Monday trading on JSE
July 21, 2014 by
Monday’s trading on the Jamaica Stock Exchange was very moderate, as the prices of 3 stocks rose, 6 declined and 18 securities changed hands, resulting in 1,001,293 shares trading valued at a mere $4,627,847.
Main Market| By the close of trading the JSE Market Index inched up by 71.70 points to 70,259.21 and the JSE All Jamaican Composite index moved up 80.17 points to close at 77,270.76.
Gains| Stocks recording gains at the end of trading in the main market, are Grace Kennedy with 7,725 units as the price gained 99 cents to $55, Pan Jamaican Investment traded only 1,558 shares but gained 25 cents, to land at $48.26 and Scotia Group with 94,278 units changing hands, gained a cent to close at $18.51.
Firm| The stocks in the main market to close without a change in price, are Carreras with 10,224 shares closing at $33.60. Mayberry Investments traded 3,943 units and closed at $1.55, Seprod traded 5,000 units and ended at $10.50 and Supreme Ventures traded 11,500 units to close at $1.95.
Preference| Jamaica Money Market Brokers 7.50% preference share traded 2,000 units at $2.
Declines| The number of stocks declining in the main market, are Cable & Wireless with 502,916 shares, while losing 2 cents to end at 25 cents, Jamaica Broilers with 76,626 shares, lost 3 cents to close at $4.57, National Commercial Bank with 8,475 units, closed with a 2 cents loss at $18, Sagicor Group in trading 115,510 shares lost 5 cents to close at $9.05 and Sagicor Real Estate Fund, exchanged 4,500 units for 10 cents lower at $6.30.
Junior Market| The JSE Junior Market Index declined by 8.99 points to close at 679.40 as 5 securities traded, with none advancing and one declining.
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before, are Caribbean Cream with 38,240 shares to close at 70 cents, Jamaican Teas with only 698 units at $3.25, Lasco Financial Services with 29,100 shares to close at $1 and Medical Disposables & Supplies with 86,000 shares at $2.
Declines| The only stocks declining in the junior market at the end of trading is Lasco Distributors with 3,000 units to close down 10 cents at $1.20.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 10 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower.
Is the real estate price right?
July 21, 2014 by
In the heady days when Olint, the forex trading company was around, and many clients of that entity were reaping 10 percent per month, persons were paying almost as much for used residential units as new ones.
Apartment complex at East Oakridge in Kingston 8
How can an investor get a good idea if the price is about right? Be like a valuator, do comparison pricing. A good place to start getting information on selling price per square foot are ads selling properties, especially new ones. Houses are of different sizes and make up, but by and large they have one thing in common, that is square footage. If the square footage is known, the value per square foot should be computed for all units, then prices can compared, because there is a common measuring rod. Without reducing values to a common measure, it becomes difficult to determine if one property is appropriately priced or not.
Interior of Model unit at East Oakridge apartment complex
Some advertisements and a news item in the newspapers, provide some useful information as to where values are in the local market currently. Location of course is an important element of pricing, this is not factored in here. The information gleaned have values per square foot, ranging form a low of $10,000 for lower income units to a high of $25,000 per square foot for a Montego Bay waterfront property. The typical upper income units seem to be price around $22,000 per square foot for units of 600-700 square feet to $16,000 to $20,000 on the upper end for larger units. Older units would normally be valued based on be discount from the current selling prices of new units for their age, at around 2 percent per annum.
According to a Sunday Gleaner publication on July 20, 2014 Real-estate developer Matalon Homes is investing in a residential project called Welwyn. Construction of the luxury townhouses and apartments at Millsborough in St Andrew is to last a year. The units are priced at US$210,000 for the apartments of 1,100 square feet and US$420,000 for the townhouses comprising 2,100 square feet or approximately $23.6 million and $47.3 million respectively. The selling price works at $21,570 and $22,250 per square foot respectively.
Apartment unit at Montego Freeport, priced at $25,000 per sq. Ft.
In East Oakridge, Kingston 8 area, there are 1 and 2 bedroom apartments of 986 and 1,486 square foot, priced at $19 to 24 million or $19,250 and $16,150 per square foot respectively.Over in Montego Bay, The Landings at the Spring Gardens, have studios of 872 square foot going for US$131,000 to US$137,000 or J$17,000 per square foot and 2 bedrooms of 1,575 square foot, going at US$219,000 t0 $229,000 or $15,700 per square foot. There is the requirement for 35 percent deposit in two tranches. Over at Montego Freeport, there are also units selling at $25,000 per square foot. While, properties in the main cities are going at the above prices for new units, out in rural Jamaica, smaller units of 800 square feet are priced around $10,000 per square foot. Many of these tend to be built on cheaper lands than say in Kingston, they are also benefit from the fact that the developers are building hundreds of them in one community thus enjoying economies of scale.
Phillips & Wynter kill inflation in Jamaica
July 15, 2014 by
Many Jamaicans may be feeling the negative effect of the economic pressures the country is undergoing. One area in which it is seen, is the official data on inflation as the overall measure of consumer price movements, went virtually nowhere, in June.
Inflation in Jamaica is set to hit the lowest level, in years if the trend for the first six months of the year continues. According to data put out by the Statistical Institute of Jamaica, the inflation rate for June is 0.1 percent, when compared to the index for May 2014. This is 0.9 percentage points lower, than the 1.0 percent recorded for May this year. The lower movement was mainly due, to a decline in the cost of electricity which resulted in the index for the group ‘Electricity, Gas and Other Fuels’ moving down by 4.2 percent. This fall was tempered by an increase of 3.6 percent, due to an increase in the cost of water. Food and Non-Alcoholic Beverages rose by 0.6 percent. Upward movement in the prices of ‘Meat, ‘Milk, Cheese and Eggs’ and ‘Bread and Cereals’ were the chief contributors.
The movement in the index for June 2014 resulted in a calendar year- to-date inflation rate of 2.5 percent.
Mean quarterly inflation rate for the second quarter of 2014 was 1.1 percent, 0.3 percentage points lower than the first quarter which had an inflation rate of 1.4 percent.
Jamaican Teas Orchid unit to open soon
July 13, 2014 by
Residents of Yallahs, St Thomas and surrounding areas, will shortly be able to view a model of a new real estate development that has gone on sale in the area. Orchid Estate, Jamaican Teas second real estate development, located in Yallahs, St Thomas, will shortly be opening its model unit for public viewing. The accompanying pictures show units being readied for sale.
According to information gleaned by IC Insider, the model unit will be on display this week end. The units which are priced at $7.9 million comprise 2 bedrooms each. When completed the scheme will encompass 71 units.
Jamaican Teas is a company listed on the junior market of the Jamaican Stock Exchange, that is primarily involved in the processing of teas and other beverages for the Jamaican and export markets, operates of supermarkets and real estate development. It successfully completed its first residential real estate development in 2013, when it built and handed over 19 super studio units to purchasers of its Carmen Court Apartment complex in Kingston.
