C2W Music announced today, that it will shift its business model, from music publishing to artiste management under the 360 model. The change is aimed at increasing revenue streams, at the cash strapped company, said CEO Ivan Berry, Saturday at the annual general meeting, held at the Knutsford Court Hotel, in Kingston.
“The 360 model is an all rights model. We are not in the music publishing business, we are now in the all rights business,” Berry told roughly 20 shareholders at the early morning meeting. “We are going to sign fantastic songwriters and create copyright, we are going to sign fantastic artistes and help them get global recognition and going to sign producers and make earnings from producer fees.”
C2W made a net loss of US$620,000 for 2013 which mirrored a US$602,700 loss, a year earlier and virtually wiped out the capital it raised in early 2012, leaving only US$42,000 at the end of 2013.
C2W will follow the model of global company BMG which sold its record label to Sony then immediately set-up BMG Rights Management. “It is tough operating without revenue and it will continue to be tough. As CEO we value the trust that shareholders have put in us and we will continue to grow this company,” stated Berry. “Where we need to go is to be a fluid flexible operation that can move in on the drop of a dime.”
Berry lamented that under the music publishing model the publisher is the first to spend cash and last to get paid.“As we give these artistes songs. The artiste immediately goes on tour and [earns] from our songs but we have to wait another 14 months for our royalties to be collected globally…we are the last to be paid,” explained Berry in his trademark muscle shirt and chain.
The shift actually reflects the more ‘Jamaicanised’ directorship which includes local music experts Sly Dunbar and Clyde McKenzie.
“So we are fast going into the 360 model…so that we get a piece of live shows, we get a piece of the endorsement deals, sponsorship deals and all that comes along with an artiste,” he concluded.
Why Dividend matters
Investing in stocks is not only for those big capital gains that create excitement for many investors. Dividends are an important part of the investment returns, but are often underestimated. They carry additional message, than the pure pay out of profits to shareholders. Dividends provide cash flow while one waits on a stock to increase in value. Stock prices move up and down over time.
Because of such movements and that sometimes, good companies have bad patches, when profits fail to grow much and can hold the stock price down for long periods, investor can just collect dividends while waiting on the return to stock price growth. Look at the example quoted below, while the stock price gained nearly 700 percent, since the end of 1993, the dividends have grown by over 2,000 percent in the same period. The exciting thing is that investors got paid every year since 1993. The amount accumulated over that time is large, amounting to $23.58 cents per share or more than the increase in the stock price.
Best Signal| The level of payment or future payments, may well be the best signal that investors will get from within a company that the stock price is set for upward movement. Dividend yields on stocks usually fall well below the interest paid on government paper. History dictates that yields usually return to their norm over time. We can use the level of present or future dividends as a predictor of stock prices. At the heights of the stock market in Jamaica, dividends yields fell to round two percent on average. Yields currently are 7% for many stocks, in the case of
Carreras one of Jamaica’s best dividend payers
Carreras well over 10 percent, suggesting huge gains ahead for stocks, not taking the sharp fall in interest rates, locally into consideration from high teens.
High priced stocks| New investors should not be afraid of what some persons will regard as expensive or high priced stocks, if they have the qualities to rise in value above lower priced stocks. The absolute price of a stock is not determinant, if an investment in it is warranted or not.
History confirms that a good dividend policy will provide an attractive rate of return on original investment over time. A very good example is Scotia Group. In 1993 they paid out $220 million or fifteen cents per share but paid out $4.98 billion or $1.60 as dividends, this fiscal year. The stock price at the end of 1993 was just over $3 and is at $20 now and yet the stock is undervalued presently. Those returns happened during one of the most turbulent periods, in the local capital market.
Useful indicators| Some useful indicators to follow are, financial results, one wants to see a nicely rising trajectory of earnings. Take the chart of Access earnings and revenues this is a excellent example of the picture an investor ought to be looking for. It is not surprising that the stock price of Access has done so well since it was listed.
Information such as major expansion, could mean increased sales and with that profits ahead. Developments within the economy, lower interest rates are major factors that influence the movement of stock prices. An increased dividend payment is another good indicator that things will be better going forward, as companies are unlikely to increase dividends, if profits are not growing.
Inside trades at D&G & NCB
National Commercial Bank Jamaica (NCB) advised that two directors purchased a total of 34,607 of the bank’s shares, on August 27, 2014 and Desnoes and Geddes reported the purchase of 100,000 of the company’s shares by a Director, on September 1. The company had previously reported a purchase of shares by a directors on August 29.
NCBJ reported good gains in profit for the nine moths to June this year with IC Insider forecast of $4.80 per share for the year to September and Desnoes & Geddes earned 77 cents per share from ongoing operations for the year to June.
Peart & James for Access Board
Access Financial Services has advised of the appointment of Messer’s Neville James and Gary Peart as shareholder Directors to the board of the company. The appointments will take effect at the end of the Annual General Meeting scheduled for September 10.
James represents the his family side, while Peart will represent Mayberry Investments, one of the major shareholders in Access.
The appointments will increase the number of board members, but still leave the board short of adequate number of independent directors to help guide the company and try to bridge the differences that have developed over the past few years, between the two major shareholders. The company needs some directors who will see to the monitoring and maintenance of corporate governance and good corporate practices, the absence of which resulted in some of the issue that is the subject of the dispute that is now the subject of a court battle.
Following the announcement by Access, Lasco Financial Services advised of the resignation of Gary Peart from the Board of Directors of the company, with effect from September 2, 2014. This removes a conflict that existed, with Peart being a director of Mayberry as well as a director of Lasco Financial Services.
Kingston Properties sells & buys apartments
Kingston Properties has successfully concluded the sale of 4 of its 19 residential condominium units, for approximately US$980,000, realizing cumulative gains of 69.5 percent over the four year holding period.
The Company, re-invested the net proceeds in a 19 unit residential apartment building in the Miami area. The property was purchased for US$1.88 million, a release from the company said. Kingston Properties is listed on the Jamaica Stock exchange and reported rental income $50.4 million, an increase of 15 percent for the six months ended June this year. Total comprehensive income for the period was $28.3 million, an increase of 7.4 percent, over the $26.3 million reported for the six months to June 2013. Comprehensive income includes, results of operating activities and foreign currency translation differences for foreign operations. The latter was positive $27.8 million for the six months in 2014 versus $33 million for the similar period in 2013.
The company owns and rents properties in Jamaica and Miami, in the United States.
Inside buying at D&G and Mayberry
Hot on the heels of Desnoes and Geddes reporting strong full year results, with the promise of higher earnings in the new fiscal year, the company reports the purchase of it’s shares by a Director, who acquired 250,000 shares on August 29. 2014.
Mayberry Investments reported a small transaction, by a related party, who purchased a total of 16,690 of the company’s shares, between August 22 – 26, this year.
Jamaican Teas reported that a related party sold 1,592,907 of the company’s shares, on Friday August 27.
Board resignations at Carib Cement
News just out from the Jamaica Stock Exchange, now confirm that Caribbean Cement Company has advised that Brian Young – the company’s Chairman, Judith Robinson – Chairman – Board Audit Committee and Bevon Francis – Member of the Audit Committee have resigned from the Board of Directors of Caribbean Cement Company effective August 19, 2014.
No mention is made of Rollin Bertrand, the former CEO of Trinidad Cement in the release. IC Insider expects that at some time, his tenure will come to an end on the Jamaican board, as well. The release did not state who the replacements are but as indicated in an earlier story IC Insider expects Christopher Dehring to head that board. IC Insider expects that there will be changes at the executive level in keeping with the removal of Bertrand as CEO of the group. Persons seen to be loyal to him will most likely be shifted from key position.
Major management changes likely at Carib Cement
The shareholders revolt that effectively ousted directors and Chief Executive officer at Trinidad Cement, earlier this week, is likely to have far reaching impact at the company’s subsidiary, Caribbean Cement.
The changes in Trinidad, saw the non-appointment of Caribbean Cement chairman Brian Young, who seems unlikely to win the favours of the new board and is hardly likely to see the new board in Trinidad accommodating him in the critical chairmanship position in Jamaica. Bevan Francis and former CEO of the group Rollin Bertrand also serve of the Jamaican board and are not included in the new board composition at the group level. Christopher Dehring who is now on the TCL board, may well be the man tipped to head the local board, when the time comes for the changes locally. Such changes cannot be far off as the new management in Trinidad, try to unearth whatever facts they their mission to determine the true state of health of the group, may uncover. Judith Robinson who is a former partner of Brian Young at Price Waterhouse could well be getting the axe as well.
Shareholders’ revolt oust directors at Trinidad Cement
Shareholders revolt ousted directors and Chief Executive officer at Trinidad Cement, at a special meeting on August 19th called to make changes to the directorship.
The former directors of the company decided to fight a battle that they could not win in an attempt to stave off the appointment of some new directors and removal of others. In December last year, IC Insider in an article on the debacle between some disgruntled minority shareholders and Trinidad Cement Limited (TCL) indicated, that it’s a fight that the directors were not likely to win. The effect of their intransience is a costly legal battle in which has cost the company unnecessarily.
IC Insider went on to say “in a battle with some local shareholders who want representation on the company’s board of directors and requested that the annual general meeting that should have been held on Friday July 12, 2013 to be put off pending court hearing as to whether a resolution to nominate them should be put on the agenda for consideration. The request by the minority shareholders to seek to nominate directors and have their names included as such on the notice calling the annual general meeting is reasonable, but that would have to be done ahead of the notice period which is usually 21 days ahead of the meeting. Information from the Guardian newspaper suggest that the company was formally informed of the request well ahead of the deadline date and the shareholders seem well within their right to have sought to prevent the AGM from going ahead without their names being put on. In all probability, the minority shareholders will win their initial battle with the company but it’s left to be seen if they will succeed at the general meeting of 2013 which now seems likely to be held in 2014 instead.”
At the special meeting called to change directors following a failed attempt to get the courts to block such a meeting the disgruntled shareholders who managed to garner more than 50 percent of the votes ousted to dissident directors including the CEO. The changes are likely to have repercussion of the board of Caribbean Cement as subsidiary of TCL. Bryan Young Chairs that board and it would be hard to see the new board accommodating him in the critical chairmanship position in Jamaica, Francis and Bertrand also serves of the Jamaican board.
Prior to the meeting Andy Bhajan, Rollin Bertrand, Brian Yopung, Leonard, Carlos Hee Houngand Bevon Francis resinged. At the meeting Wilfred Espinet, Alsion Lewis, Christopher Drehring, Michael Glenn Hamlel-Smith, Francisco Aguilera Calos Alberto and Nigel Edwards wefre appointe ddirectors.
The move should no pave the way for the legal battle now in the courts to be withdrawn and put the company in a psoitioon to hold the general meetings for 2013 and 2014 which were postpone pending the outcome of the court action.
Massy Holdings rebranding cost TT$59M
Trinidad based, Massy Holdings rebranding and change of name, from Neal & Massy Holdings, to Massy Holdings has cost the group TT$59 million according to information included in the group’s nine months results to June.
The amount helped pulled the net profit for the quarter below that of the similar period in 2013, from $128 million to $99 million. Most of the companies within the sprawling group now carry the Massy name except in Guyana and St Lucia, the company stated in their report to shareholders.
The company’s former name came out of the merging of two companies operated by their founders, Harry Neal and Charles Massy that carried the individual names which were combined to form Neal & Massy. According the group’s 2013 annual report “In 1933, rising to the challenges of survival and growth, two entities concluded an historic merger, and became one – Neal & Massy Engineering Company Limited. They were responding both to world economic conditions of the Great Depression, and to the promptings of shrewd local bankers.”
According to information accompanying the nine months results, half of the rebranding cost relates to signage and painting for all Massy buildings, many of which were due for a face lift. The rest of the cost relate professional services training materials, advertising and events.