Recent insider trades

February 25, 2014 by

Trading by insiders in their company stock on the Jamaica Stock Market can give insights to investors.

National Commercial Bank Jamaica advised that a related party purchased 1,590,083 of its shares on February 21, 2014.

National Commercial Bank Jamaica Limited advised that a connected party purchased 498,100 of its shares on February 14, 2014 and also advised that a related party purchased 46,986 of the shares on February 11, 2014.

National Commercial Bank Jamaica advised that a related party purchased a total of 20,089,111 of the bank’s shares on February 4, 2014. Shares totalling 18.25 million were traded on the Trinidad Stock Exchange and the rest on the Jamaica Stock Exchange.

Scotia Group advised that a senior manager sold 50,000 of the group’s shares on January 31, 2014.

Mayberry Investments (MIL) advised that a related party purchased 1,222,206 of the company’s shares on January 23, 2014.

KLE Group Limited has advised that a director sold 56,860 of the company’s shares on January 21, 2014.

The Gleaner Company advised that a senior manager sold 210,000 of the company’s shares on January 21, 2014.

Grace Kennedy has advised that as at January 2, 2014 a total of 1,440,062 of the company’s shares were purchased under the Share Buy Back Programme

Mayberry Investments (MIL) advised that a related party purchased 249,771 of the company’s shares during the period January 6 -10, 2014 and a related party sold 12,862 of the shares on January 9, 2014.

Mayberry Investments (MIL) reported a big inside trade on December 24, 2013 when a related party purchased 10,000,000 MIL shares from a related party who sold 10,168,266 of the company’s shares. The shares were traded between $2 and $2.02.

Desnoes & Geddes Limited (DG) reported that a director purchased 390,000 shares of  on December 24, 2013, the price the stock traded at was $5.

Scotia Group Jamaica Limited (SGJL) reported that a Senior Manager purchased 5,050 shares on December 20, 2013, the stock traded between $19-20.

Pan-Jamaican Investment Trust Limited reported that senior managers were issued a total of 45,740  shares under the Pan-Jam Long Term Incentive Plan on December 24, 2013.

National Commercial Bank (NCBJ) advised that a related party sold a total of 27,111,000 NCBJ shares on December 30, 2013. The stock traded at $17.50 and Scotia Investment was the selling broker with Mayberry Investments to buying broker. Additionally, two directors purchased a total of 15,553 of the company’s shares on December 19, 2013.

Consolidated Bakeries advised that a senior manager purchased a total of 170,300 of the company’s shares on December 20, 2013.

Grace Kennedy Limited advised that Non-Executive Directors acquired a total of 84,880 GK shares on December 13, 2013.

Scotia Group Jamaica Limited (SGJL) advised that a senior manager purchased 2,400 of the group’s shares on December 10, 2013.

Gleaner Company advised that a director purchased a total of 398,946 of the company’s shares during the period December 2 – 19, 2013.

Desnoes & Geddes Limited (DG) advised that a director purchased director purchased 500,000 of the company’s shares on November 19, 2013 and 32,224 during the period November 29, 2013 to December 2, 2013.

Consolidated Bakeries (PURITY) advised that a director purchased 223,000 shares during the period November 13 – 20, 2013.

Filed Under: Company News, General Business News, JSE Main Market, Stock Market Tagged With: ,

Huge mobile growth for C&WJ

February 11, 2014 by

Buy Rated Alert! Cable & Wireless Jamaica now elevated to Buy Buy rated from Market Watch based on the strong increase to subscriber base and mobile revenue growth.

Cable & Wireless Communications Plc is reporting that Cable & Wireless Jamaica continued its momentum in growing its mobile subscriber base, increasing by 23% in the December quarter last year over the last quarter of 2012. In a release to investors the UK listed aren’t company said, “Subscriber growth momentum in our Jamaica business was sustained and quarterly mobile service revenue rose 42% on the prior year in local currency”.

cable-and-wireless-worldwide280x150Cable & Wireless Jamaica stock traded on Wednesday, February 5th as high as 32 cents to record a gain of 100 percent for the year to date. However, the price, closed at 31 cents, a gain of 94 percent for the year-to-date and a new 3 year high.

IC Insider understands that between May and November, 250,000 new cellular customers were added to the network and new customers continue to be added at the same pace. In addition, the Christmas promotion went well with some phones sold out ahead of December and most of the phones sold involved data plans. Going forward, it will translate to billions of dollars in increased revenue per annum for the company.

At the close of trading on Monday, there were 5,147,967 shares on offer by Mayberry Investments at 32 cents to sell. The broker switched from selling and instead bought 5,000,000 units at 32 cents at the start of trading on Tuesday.

Related posts | Cable & Wireless up 56% in January

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New products for Medical Disposables

February 7, 2014 by

Medical Disposables & Supplies has advised the  Jamaica Stock Exchange that they have entered into a distribution agreement with Denk Pharma.

The company indicates that Denk Pharma is a premium Pharmaceutical manufacturer since 1948 with headquarters in Munchen, Germany. Denk has maintained a presence in Jamaica for 16 years and has appointed the company as a co-distributor for its entire product range islandwide.

DenkPharmaMedical Disposables & Supplies was listed on the Junior Market in December last year after a successful IPO.

Related posts | Medical Disposables, OK not great

Image courtesy of DreamDesigns/FreeDigitalPhotos.net

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Derrimon Trading goes for $200m

February 6, 2014 by

Recently listed Derrimon Trading Company goes the capital market to raise up to J$200,000,000 from an 18 months Secured Commercial Paper with a minimum denominations of J$1,000,000.00 and increments of $100,000 at a fixed rate of 12.25 percent per annum. Interest is payable monthly, which raises the effective rate beyond that stated. The net proceeds from the issue will be used for working capital and general corporate purposes the term sheet states.

The issue date is February 6, 2014 and Maturity is August 6, 2015. Withholding tax shall apply to Note holders in accordance with applicable laws. Mayberry Investments are the brokers for the issue.

Derrimon Trading went public last year December and raised $102.5 million in fresh capital in an IPO offering for working capital, expansion and cost of the IPO estimated not to exceed $9.5 million, the prospectus stated.

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

The problem here is that if they succeed with the current issue which involves expensive money, borrowings will exceed equity capital. Borrowed debt should not be more than 50 percent of equity capital, the accepted norm.

The last balance sheet. disclosed at the time of the IPO, showed a company with adequate working capital, requiring more equity injection than the IPO brought in to align the current asset ratio in line with the accepted norm of $2 of current assets versus $1 of current liabilities. Instead, what existed then was $1.15 to $1 and even with the infusion of funds from the IPO, it would have gone to a still inadequate $1.33 to $1.

Related posts |  Derrimon Trading, high risk low returns | Derrimon not over by much

Filed Under: Company News, General Business News, Initial Public Offers, Stock Market Tagged With: , ,

CPJ’s new St Lucia venture

February 6, 2014 by

The Board of Directors of Caribbean Producers Jamaica advises that the company signed a Shareholders’ Agreement on February 4th, 2014 to form a joint venture with the Du Boulay Bottling Company, the Coca Cola manufacturer operating in Castries, St. Lucia.

The new company will be called CPJ St Lucia Limited and commences operations as a foodservice distributor in Castries, St. Lucia in the near future. Caribbean Producers will retain controlling interest of this company.

Caribbean Producers Jamaica is an IC Insider’s Buy Rated Stock. Click here for the full list of recommended stocks to purchase.

Related posts | CPJ’s big jump in profits | New additions to Buy Rated list

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First Caribbean may be delisted

February 6, 2014 by

First Caribbean Bank has left it to the Jamaica Stock Exchange to determine if they will delist the shares, according to an advert put out by the Bank, which is listed on various exchanges within the region.

The JSE advised them that the number of shares in the public hands is less than 20 percent as is the requirement. In addition, the level of trading is below the threshold desirable, being less than 2 percent average over 36 months, prior to the making notice to the Bank. As a result, the advert also indicated that the company was in breach of section 402b (1)(b) of the JSE rules.

After careful review of the matter, the bank has determined that it will not be feasible for either the proportion of the non-majority held shares or the average total traded volume to be raised to the minimum required in the foreseeable future.

FirstCaribbeanLogo150x150The bank has decided that it will accept that it will be delisted by the JSE and has invited the JSE Board to exercise its discretion under rule 411a to delist the bank at its February meeting.

The bank is the largest holding by market share on the exchange and this will be the second large corporation taken off the exchange this year, if in fact, the JSE moves to delist to shares.

Trinidad Guardian Holdings opted not to remain listed on the JSE at the start of 2014 based on the low level of trading in its stock. The JSE went public last year against the background of lower income and profits than the year before and these moves will mean reduced income for the JSE and most likely worsen the loss position they suffered in the last three quarters of 2013.

Related posts | FCIB gets punched | JSE IPO oversubscribed by 41%

Filed Under: Company News, General Business News, JSE Main Market, Stock Market Tagged With: , ,

RBC acquisition confirmed

January 30, 2014 by

Sagicor Group confirmed the acquisition of RBC Royal Bank Jamaica’s operations for a price of $9.5 billion. Most of RBC operations would be absorbed into Sagicor Bank but the banking entity will be a direct subsidiary of the group.

The book value was of the order of $10.5 billion but as the operation has been bleeding at around $500 million per quarter the book value would be just under $10 billion at the time the agreement was signed. Loans on the book of around $32 billion reflect good loans as the bad ones were already provided for.

Pooling Sagicor Investments with that of RBC on the surface would create a combined banking group with assets of nearly $150 billion with loans of $40 billion and revenues around $12 billion. However, that is unlikely as the bank will be a totally separate entity going forward. Sagicor Group confirmed that there will be cuts and branch closures where branches overlap. This will results in significant cost savings.

Sagicor150x150This will not be the first time that Sagicor Bank would have entered in merger arrangements having absorbed Manufacturers Merchant bank and Trafalgar Development Bank some years ago.

For the twelve months to September last year, the RBC lost $1.7 billion and $456 million between July and September according to central bank’s data. For the year ending October 2012, RBC reported a loss of $2 billion before tax which was down from $3 billion in 2011. In 2012, loan losses contributed $650 million to the loss and income was inadequate to cover housekeeping expenses. Most likely the NDX in 2013 that cut interest rates would have negatively affected them, thus reducing the net interest margin.

The bank’s problem apart from heavy loan losses is the fixed operating cost that the income generated cannot match. It would require major loan growth to deliver the required income and that has not been growing fast enough having reached $32 billion in 2013 from $30.5 billion in October 2012.

Trading picks up | In Wednesday’s trading on the Jamaica Stock Exchange, Sagicor Group and Sagicor Investments climbed ahead of the news of the RBC takeover. The order book for Sagicor Group shows only six offers; two are at $10.50 to sell 25,400 units, one for 3,000 units at $10.95 and three at $11 for 255,000.

On the buy side there are bids as high as $10.50 for 25,000 units then $9.80 with only 1,185 units and 128,265 units on the bid between $9.75 and $9.79 and of course, there are bids below these levels.

Sagicor Investments had 7 bids and 7 offers with the highest bids being $18 for 1,000 units; 14,926 units for $16.50 and 100,000 at $15. On the sell side, there are only 1,565 units at $19; 7,235 shares at $21.50; 30,000 units at $22; 20,000 at $26.71 and 1.34 million units at $30.

Related post | A bigger Sagicor Bank?

Filed Under: Company News, General Business News Tagged With: , ,

A bigger Sagicor Bank?

January 29, 2014 by

Reports are circulating that Sagicor Group is in talks to acquire the RBC Royal Bank Jamaica’s operations. IC Insider understands that an official announcement could be made to the Jamaica Stock Exchange by the end of Wednesday.

From all indications, RBC operations would be absorbed into Sagicor Bank. IC Insider gathers that the deal has not yet been inked, but talks are in fact taking place that will most likely to lead to a deal.

As is the case with the acquisition of this nature, the deal would be subject regulatory approval and due diligence. No purchase price has been revealed but Sagicor will most likely acquire it for a figure that will be lower than book value that is currently around $10.5 billion as the bank’s Jamaica operations has been bleeding for some time at close to $2 billion per year based on 2013 numbers.

Sagicor150x150How much will Sagicor spend? | For the twelve months to September last year, the RBC lost $1.7 billion and $456 million between July and September according to BOJ’s data. The continued losses suggest a price around $5 billion. For the year ending October 2012, RBC reported a loss of $2 billion before tax, which was down from $3 billion in 2011. In 2012, loan losses contributed $650 million to the loss and income was inadequate to cover housekeeping expenses. Most likely the NDX in 2013, that cut interest rates, would have negatively affected the bank thus reducing the net interest margin. The bank’s biggest problem, apart from heavy loan losses, is the fixed operating cost that the income generated cannot match. It would require major loan growth to deliver the required income and that has not been growing fast enough having reached $32 billion in 2013 from $30.5 billion in October 2012.

If the deal goes through, it would create a combined banking group with assets of nearly $150 billion, loans of $40 billion and revenues around $12 billion.

Sagicor would enjoy significant cost savings from a merger of both entities as some of the branches overlap and should lead to closure of some and expansion of others. Head office operations would result in major cost savings as well, once the two are fully integrated. This would not be the first time that Sagicor Bank have entered in merger arrangements having absorbed Manufacturers Merchant Bank and Trafalgar Development Bank some years ago.

Sagicor Jamaica is a IC Insider Buy Rated Stock. To view the full list, click here.

Related posts | Buy Rated stocks coming in | Marked changes for Buy Rated stocks | Sagicor cuts dividends

Filed Under: Company News, General Business News, JSE Main Market, Stock Market Tagged With: , ,

C2W Music receives US$21K income

January 17, 2014 by

C2W Music, which has earned virtually no income since it raised funds in an IPO in 2012 is reporting what appears to be a breakthrough in the last quarter of 2013 with royalty collections.

According to the company in a recent release to the stock exchange, “We are proud to announce that during the 4th quarter of 2013, we have started to see royalty driven earnings deriving out of Barbados. These earnings have come out of the exploitation of copyrights and more specifically have been earned through the “Performing Right” collections of radio broadcast. The amount received thus far totalled USD$20,643.”

C2WMusiclogo2“We would also like to add, and as mentioned in a previous press release, that we continue to work closely with all Caribbean performing rights societies in creating proper integration of our systems to show an accurate collection of our royalties from the territory. Other than our own music catalogue, we sub-publish two of the world’s largest music publishers, BMG Chrysalis and Warner Chappell. We are hopeful that our collective efforts would be recognized by the 2nd quarter of 2014 and onwards, resulting in more royalty collections,” a release from the company said.

Related posts | C2W says it’s not dead | Is C2W doomed?

 

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Salada Foods switch distributors

January 8, 2014 by

Salada Foods has changed its distributors to Lasco Distributors effective from the beginning of January this year. The company has not been happy with the happy in recent times with the manner in which the former distributors were executing task of distributing the company’s products.

Salada advised the Jamaica Stock Exchange that the distribution agreement between SAL and T. Geddes Grant (Distributors) Limited representing the Musson Group ended on December 31, 2013 and that on January 2nd, Lasco Distributors Limited was appointed Exclusive Distributors to distribute all the Salada branded products island-wide.

Salada manufactures and sell Mountain Peak Coffee, Jello and other hot beverage mixes and recently started the production and sales of the Roberts line of products.

Related posts | Profit drops on falling sales at Salada | Profit blast at LASCO Distributors

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