Little things sometimes mean a lot. The latest reported insider trades at Scotiabank in Trinidad may not be considered large but they are important. The posting of the trades on the Trinidad and Tobago Stock Exchange website of inside trades is not a refreshing development in the capital markets within the Caribbean.
According to the stock exchange they received notice from “Scotiabank Trinidad & Tobago (SBTT) that a senior officer of purchased 1,177 shares on January 23rd, 2015 and 899 shares on January 26th, 2015,” the notice was posted on June 29th, 2015.
Someone seems to have messed up here. The major reason for disclosure of such trades is to let investors know what insiders are doing with the shares of the company. Such actions can help determine if the fortunes of the company is changing one way or the other. To publish the information 6 months after they took place is unacceptable in what should be a modern capital market system.
The trades were important signal of financial development with the banking group that reported an 18 percent jump in profit for the April quarter and ought to have been reported much, much earlier.
Scotiabank reports trades after 6 months
NCB insiders buy up shares
National Commercial Bank (NCB) advised the Jamaica Stock Exchange that a party connected to three directors purchased 552,790 of the group’s shares on May 7, another amount of 77,886 shares on May 8 and 843,924 on May 11.
NCB posted improved results in its latest quarterly report which shows a 7 percent increase in profits to $3.27 million over the similar quarter in 2014 and profits of $5.4 million for the six months to March. The stock which closed at a 4 1/2 year high of $31.10 on Wednesday, has gained 82 percent since bottoming out last year summer, at $17.
The purchases come amidst reports that NCB is slated to pick up a large block of Guardian Holdings shares. Insiders may not have stopped buying as NCB Capital Markets still a bid for an undisclosed amount at $30.
Sagicor & JMMB active insider trades
A number of insider trades in JMMB shares occurred in March
A series of listed companies released information to the Jamaica Stock Exchange about each trade that took place in 2015 recently. Connected parties at Jamaica Broilers sold a total of 10,236,510 shares on January 28 and February 12. Sagicor Group had a senior manager purchasing 246,944 shares on March 18 and two senior managers purchased a total of 2,061,715 shares under during the period March 11 and March 16. The trades were done under the Executive Long Term Incentive of the group.
Insiders are buying into Sagicor Group’s vision of the future.
Pan-Jamaican Investment saw a related party purchasing 24,401,900 shares on March 6.
There were only a few sales by insiders for the various companies reporting, with Jamaica Money Market Brokers’ connected party selling 778,362 shares on March 17 and a related party selling 20,219 shares on March 16 and 211,249 on March 11. On February 24 and 25 a related party purchased 5,533,174 of the company’s shares but between March 19 and 24 a related party to a director sold 4,000,000 shares.
Scotia Group had two senior managers disposing of 53,926 shares held under the Employee Share Ownership Plan.
Insider sold 2.77m Student Living shares
Newly listed 138 Student Living advises that a related party sold 2,775,000 of the company’s shares on January 30, 2015. T
he shares traded at $4.40 and realised $12,210,000. When the company went public in December last year, some of the initial investors offered shares they owned to the public which was packaged with the public offer. Shares offered by the company were taken up in full, but those by shareholders were only partially bought by the public.
A related party to a directors sold 250,000 Jamaica Broilers Group’s shares on February 2, 2015, the Company advised the Jamaica Stock Exchange.
More insider buying at Sagicor
Sagicor Group have been enjoying trades by insider on several occasions this year. The group recently advised that a director purchased 249,648 shares between November 27 & December 1, this year.
The last time before this that an insider traded in the company’s stock was in October, when the company advised that an executive Purchased 417,016 shares under the SGJ Executive Long Term Inventive Scheme on October 24, 2014.
The financial group saw a sharp fall in profit in the quarter, from $1.56 billion to $1.1 billion and net profit of $3.84 billion, with $3.79 billion available to stockholders, for the nine months to September, which was 2.5 percent better than in 2013. the decline in profit in the September quarter is due primarily to cost associated with the acquisition of RBC Royal Bank local operation at the end of June this year. With staff reduction, branch closures and amalgamations, the losses in the acquired banking operation should be sharply reduced from that in the September quarter.
Inside buys into Scotia Group
A party connected with Scotia Group purchased 1,250,000 of the group’s shares, on October 15 and a connected party, purchased 1,220,100 of the shares, on September 30, 2014, Scotia Group reported to the Jamaica Stock Exchange.
These are the only two major insider buying, in the group’s stock for this year so far.
The banking group is expected to report full year results towards the end of this month, and announce a dividend at the same time.
More inside buying at Sagicor Group
Insider trade is often an important insight into the fortunes of companies. It is not always the case, but large buying or selling is usually a tell tail sign of where company profits are heading.
Executives have been buying into Sagicor Group in recent months. In October another purchase of shares took place. The company advised the Jamaica Stock Exchange that an executive purchased 417,016 of its shares on October 24, 2014 under the Executive Long Term Inventive Scheme.
Sagicor Group reported profit of $1.62 billion for it June quarter this year, versus $1.56 billion last year, and $2.7 billion in the six months to June, this year. Third quarter profit results which are scheduled for release shortly, should be hit with redundancy and other costs, related to the acquisition and rebranding of RBC Jamaica operation at the end of June.
More JMMB insider selling
Insiders have been selling Jamaica Money Market Brokers (JMMB) shares in fairly large quantities this year, even as the company’s fortunes seem to be bright.
JMMB advised the Jamaica Stock Exchange that a related party sold 5,000,000 of the group’s shares on October 10, 2014. On September 18, this year a connected party also sold 1,000,000 of the Group’s shares.
In March this year CEO Keith Duncan was reported to be telling investors in Trinidad: “If ever there was a time to get excited about JMMB Group’s performance prospects, that time is now!” but while he was telling the Trinidad investors this, persons close to Jamaica Money Market Brokers were continuing to sell shares in the company.
Earlier in the year, five related parties sold a total of 9,663,800 JMMB shares during the period March 17-18, 2014 but that is not the only sale of large amounts around that time. A connected party sold 1,500,000 of the shares on March 4, 2014. A Director sold a relatively small amount of 31,146 JMMB shares on March 11, 2014 but there was a big sell out of 19,464,448 shares on February 17, 2014.
More directors’ buying of D&G shares
Desnoes and Geddes (DG) is undertaking lots of changes in it’s operation, that should help reduce cost and push up the bottom-line. Reduction in energy, partial switch from imported malt to the use of locally grown cassava, upgrading of the brewery to reduce operational cost and the eyeing of new markets, are all some of the things the brewing company is doing, that should transform its financial fortunes.
IC Insider’s forecast for the current year, is for profits to hit 90 cents per share and $1.20, the following year.
The directors have bought into the prospects of increased fortunes down the road for the company. Accordingly, D&G advised the Jamaica Stock Exchange that a Director purchased 2,270,000 of the company’s shares on October 9, 2014, on October 10, a director purchased 41,000 shares and on October 8 and 9, a director purchased a total of 251,147 shares.
Prior to these purchases directors also purchased 857,650 shares in September. On June 13, there was a sizeable purchase of 1,971,000 shares by a Director, with smaller amounts being bought between then and the September purchases.
Insiders pick up 5m Sagicor shares
Two Executives of Sagicor Group purchased a total of 4,979,956 shares, under the company’s Executive Long Term Incentive Scheme, on September 29, 2014, the company advised the Jamaica Stock Exchange. The purchase brings to 8,414,404 units acquired mostly by executives since June. Executives sold a total of 3,075,556 units during the same period.
The Group offers stock grants and stock options to senior executives as part of its long-term incentive plan. The Group has set aside 150,000,000 of its authorised but un-issued shares of $0.10 each for the stock grants and stock options. The lowest price option is dated March 2009 and would expire in March 2016 with an exercise price of $7.66 for 5,069,770 shares. All the rest that are vested, have an exercise price that are above the current stock price of $9.65. The exercise prices for the rest range between $10.45 for the 2010 vested amount of 4,039,454 with an expiry date of March 2017 and $14.10 for the 2012 vested amount of 1,813,036 shares, with an expiry date of 2019.
The Group also has in place a share purchase plan which enables its administrative and sales staff to purchase a pool of Sagicor Group shares at a predetermined discount rate of the closing bid price on December 31 each year. During 2013, the Staff Share Purchase Plan Trust purchased 3,417,136 shares over the Stock Exchange for a total value of $28,380,000.