Why NCB deserved a look then?

April 29, 2015 by

NCB closed at a new 52 weeks' high on of $26.50 on Wednesday

NCB closed at a new 52 weeks’ high on of $26.50 on Wednesday

National Commercial Bank (NCB) closed on the 28th of April at $28, that is up a strong 65 percent form the price of $17 in May last year. With the realisation that the stock was heavily undervalued, in June last year IC Insider had this to say about the stock.
The shares may not be trading in droves recently with the price tending to trade around $17 since early May but investors may be missing a great buying opportunity with a stock that is seriously undervalued.
In Trinidad the stock closed as low as TT$1.04 recently but has moved up to $1.10 on Friday and seems poised to go higher. The bid in Trinidad on Friday’s close was $1.10 (J$19.20) to buy 22,933 units with an offer of 26,000 units at $1.14. On Wednesday the stock traded 69,456 units at $1.08 and gained 2 cents in the process. On Friday 21,322 traded in Jamaica at $18.01 each and 1,396,013 on Thursday between $17 and $18.03. Wednesday saw 21,595 units being traded between $17.30 and $19. One important factor is that the stock is not in great supply.
JamaicanMoney280x150But it’s the order book on the Jamaica Stock Exchange that is sending a strong message to buy coupled with is 2014 being a year when the results should help stimulate the stock price higher. There are only 280,000 shares on offer in the market but the buying interest is not particularly strong. With the pickup in trading in Trinidad, the price in Jamaica could get a lift and with third quarter results to June which are due in the last week in July, that could strengthen investor’s appetite for the stock and give it a badly needed push.
IC Insider forecasts earnings of $5 per share for the current year (2014), so far NCB reported earnings of $2.38 for the first 6 months of the fiscal year. Well NCB went on the report $4.73 per share for the year to September but it took a long time for the stock to rise. Like good cream, goods stocks will eventually rise. Not only has the stock posted strong gains, investors in it have had a very good payment with increased dividends. Interesting while all the potential was there, there are investors who sold around the $17 price level and moved into Alibaba, it being the rage then. The returns of the former speaks volumes about investing in what is known and buying undervalued stocks as Alibaba has gone nowhere since last year while NCB has grown and is heading higher yet.

Filed Under: Buy Rated, Company News Tagged With:

One Caribbean’s flat profit

April 29, 2015 by

OneCaribbeanMedia280x150One Caribbean Media out of Trinidad is reporting flat profit of $17 million, for the first quarter of this year, from a fall in revenues of $116.7 million compared with $121 million in 2014.
The results were helped by slightly lower administrative cost of $18.9 million versus $19.8 million in 2014 and a small decline in corporate taxes. The results translates to earnings per share of 24 cents. For 2014 the company had earnings of $1.23 per share. For 2015 earnings should remain at the 2014 level.
The company that publishes newspapers and operates TV and radio stations in Trinidad, has equity capital of $686 million with cash funds of $128 million and total liabilities of $145 million. One Caribbean is going to continue to face challenges for a while, with tightness and slow growth in Trinidad, made worse by the sharp fall off in the price of oil, one of the country’s main products.
The stock was once on the BUY RATED list but was removed after it appreciated fully in 2013. The stock last traded on the Trinidad and Tobago Exchange at $22.30, giving it a pretty rich PE of 18.

Filed Under: Company News, Company Results Tagged With: ,

TCL continues to gain strength

April 29, 2015 by

TCement_280x150Trinidad Cement posted strong first quarter results for 2015 with profit after tax rising sharply to $42.5 million versus just $13 million the year before, from revenues of $515 million.
Revenues were just slightly better than the $513 million generated in 2014. Group revenue increased, due mainly to cement price increases implemented during 2014 and 11,100 tonnes increase in clinker sales volume. Cement sales volume declined by 4 percent, Management stated in their release of the results to the stock exchanges on which it is listed in Trinidad and Jamaica. Vastly improved results in Jamaica, was one of the major contributor to the improvement.
During the quarter interest cost rose to $56.4 million, compared with $50.8 million but depreciation fell from $31.5 million to $27.7 million incurred in 2014. Taxation charge however, increased from $4 million to $10.4 million.
The company had effectively defaulted on its loans but that has been remedied with the execution of the restructured debt agreements. The loans have now been re-classified from short term to long term, thus improving the working capital from a deficit of $1.5 billion at December 31, 2014, to a surplus of $650 million at March.
The company’s rights issue was successfully concluded in March, with 124.9 million shares issued to raise $361.5 million. In addition, restructured debt agreements with lenders came into effect as at the end of March, the main elements of which include: Interest rate savings of 2 percent reduction; forgiveness of the default moratorium interest from September 30, 2014 and a discount offered by the financiers if the loan is repaid in 90 days.
Funds generated from operation based on the results and the rights issue resulting in net cash balance at the end of March of $548.3 million.
The stock which was elevated to BUY RATED in 2013 continues to hold that status as earnings for the full years heads towards 60 cents per share.

Filed Under: Company News, Company Results Tagged With:

Carib Cement impressive profit

April 29, 2015 by

caribcementlogo280x150Caribbean Cement posted impressive first quarter results for 2015, with profit after tax rising sharply to $248 million versus just $35 million the year before, from revenues of $3.58 billion. Revenues were just slightly less than the $3.6 billion generated in 2014.
Domestic sales volumes fell 3 percent, while exports declined sharply from 61,000 tonnes to 40,000, however, an increase in clinker sales from 44,261 tonnes to 55,371 mitigated the decline in cement sales somewhat. Lower energy costs, improvements in operational efficiencies, effective control of fixed costs and lower financing costs, were the major factors helping in the improved profit out turn. These results suggest that full year earnings could rise to $1 per share for 2015 and may well exceed it, if energy cost remained contained at current levels.
During the quarter interest cost remained fairly static with $65.5 million incurred, compared with $66 million in 2014 but depreciation charge climbed from $84 million to $93 million.
At the end of the period, cash increased from $178 million to $543 million. As impressive as the results are, the company has an operating deficit of $7 billion that will take years to wipe out, even at the level of profits now being generated. There are capital gains on the books of $1.4 billion, that can be used to offset the operating deficit, thus reducing the overall amount, nevertheless, the resumption of paying dividends is years away.
The stock which was elevated to BUY RATED in 2013 continues to hold that status and traded at $3 on the Jamaica Stock exchanged on Tuesday in response to the results.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , ,

Market up so far & heading higher

April 28, 2015 by

Jamaica Stock Exchange activity was off to a slow start on Tuesday but trading picked and is continuing on its bullish stance of recent days, with the all Jamaica composite IndexJSE intr 28-4-15 being up 1,181.01 points to 98,813.42and the JSE market Index gained 1,056.32 points to 89,526.81.Only 3 securities have traded in the junior market so far with Lasco Distributors being the lead trade in this market with 75,720 shares at $1.30 down by 7 cents.
In the main market Caribbean Cement traded 9,060 units at $3, up by 30 cents, Jamaica Producers gained 50 cents with 10,000 units changing hands at $17.50, National Commercial Bank traded 1,440 shares at $27.99, Pan Jamaican Investment climbed $3.97 to $60 with 6,550 shares, Sagicor Real Estate X Fund had a large trade of 873,309 units at $6.55, Supreme Ventures posted 43,900 shares at 3.10 and Jamaica Money Market Brokers Ltd 8.75% preference share traded 196,146 units at $3.20 after gaining 13 cents.

Filed Under: Company News Tagged With: ,

Celebrities for Blood Drive

April 24, 2015 by

Kaci Fennell

Kaci Fennell

The blood you give today may save your life or that of your family. Giving blood to the blood bank, establishes a bank account for blood should the donor or their family need some later, allowing them to withdraw their contribution as it would be with a bank account.
The Lucozade Blood Drive now celebrating its eleventh annual renewal, is an opportune event for Jamaicans to start to save their blood and give lives to others. The 2015 edition of the Lucozade blood drive takes place on Tuesday, April 28, and Wednesday April 29, 2015, between 8 am and 4 pm daily, on the grounds of the Girl Guides’ Headquarters, Waterloo Road.
Through its on-going corporate partnership with the National Blood Transfusion Service, Lucozade has played a pivotal role in encouraging Jamaicans nationwide to become voluntary donors to this vital cause.
Since inception, the drive has been supported by a growing number of persons including high school students, professionals, business persons, celebrities and entertainers as well as the media.
Laurie Ann Chin, Miss Universe Jamaica 2013

Laurie Ann Chin, Miss Universe Jamaica 2013

Over the two-day drive, special guest appearances will be made by a number of local celebrities including Miss Universe Jamaica, Kaci Fennell, Miss Jamaica World 2014, Laure-Ann Chin, Miss Universe Jamaica 2013, Kerry Baylis and members of the reggae band Rootz Underground. Renowned Fashion Designer and Host/Executive Producer of the Mission Catwalk television series, Keneea Linton-George, will do a presentation on Dressing for Success.

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

NCB post increased Q2 profit

April 23, 2015 by

NCB HQNational Commercial Bank is reporting net profit for the three months ended March 2015 of $3.27 billion versus $3.05 billion in the 2014 period.
Changes in the manner the tax of the groups assets are now being treated with all amounts due being booked as expenses up front has distorted the results in the early months of the fiscal year which are front loaded with these cost. Normalising the expenses would result, according to NCB in net profit for the three months ended March 2015 of $3.34 billion, 20 percent or $563 million over normalised net profit for the December 2014 quarter of $2,778 million, and 12 percent or $349 million over the previously reported net profit for the three months ended March 2014 of $2.99 billion. For the six months to March the banking group reported profit of $5.4 billion or $2.19 per shares compared with $5.55 billion in 2014. The up-fronting of the asset tax, resulted in the lower 2015 profit compared to 2014. NCB should go on to earn around $7 billion in the second half of the year or around $5 per share for the full year.
For the six months to March 2015, operating income increased by 14 percent, or $2.9 billion, compared with the six months ended March 2014, mainly as a result of gain on foreign currency and investment activities, up by $1.5 billion. This was due to higher levels of foreign exchange income and gains from the sale of debt securities compared to the prior year, NCB said.
Also contributing to the increased profit is net fee and commission income, increasing by $652 million or 16 percent, mainly due to Payment Services fees related to card usage and transaction volumes, credit related fees from the growth in loans and greater corporate finance and unit trust fees booked in the current period, the banking group stated in its release to the Stock Exchange. Net interest income, increasing by 4 percent, or $542 million, primarily due to growth in the net loan portfolio.
Loans and advances, totalled $157.9 billion (net of provision for credit losses) at March 2015, grew by 5 percent, or $7.4 billion, compared to the loan portfolio as at March 2014.
NCB declared an interim dividend of 45 cents per ordinary stock unit which is payable on May 21 for stockholders on record as at May 8, 2015.

Filed Under: Breaking News, Company News, Company Results Tagged With:

Sagicor messes up interest charge?

April 22, 2015 by

Sag bnk logoSagicor Bank suffered a computer glitch in February, leading to statements for a number of some customers having no interest reflected on them, on balances on which interest was due.
There are no indications that the bank advised their clients about the error, and when it would have been corrected. in March the bank adjusted for the error but made customers no wiser. not only did they correct for the omission for February they compounded it by included the charge with that of March, without any indication for the larger than usual interest charge on the statement.
Interest on US dollar credit cards are 18 percent per annum, or 1.5 percent per month, the March statements show that they in fact charged around 3 percent. Based on the amount outstanding on a specific card the interest rate of 1.5 percent should have resulted in a charge of roughly $52, instead the bank charged $97.46 or what appears on the surface of overcharging of $45.
IC Insider spoke with a Mr. Erwin Lyons a supervisor at the bank who indicated that there was a computer glitch which was not resolved before the February statements, flowing from that the March statements now show the charges for February and March as one sum. Lyons indicates, that the problem affected both local and US dollar based cards. Lyons could not say why no notification was sent to customers about the matter nor why the amounts were not shown separately on the statement, but he did indicate that customers should have been advised about it.

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

Moderate trading on Wednesday so far

April 22, 2015 by

Trading on the Jamaica Stock Exchange on Wednesday morning resulted in a few noticeable trades, JSE intra 22-5-15as the market with 3.55 million units trading, coming form 9 securities but with none from the junior market.
The all Jamaica composite index rose just over 100 points and the Jamaica Stock Exchange index gained just under 100 points. Some of the stocks to trade are Ciboney Group with 2 million shares at 6 cents, JMMB Group with 795,353 at 7.10, Radio Jamaica with 13,372 at $2 with a 25 cents gain, Sagicor Group with 19,850 units at $10.75 as the price rose by 25 cents and Sagicor Real Estate X Fund 465,229 units at $6.55.

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

JSE indices makes big gains

April 20, 2015 by

JSE int 10am -20-4-15The Jamaica Stock Exchange all Jamaica composite index rose 1,798.64 points to 95,651.65 and the Jamaica Stock Exchange index is up 1,608.73 points to 86,698.86 as Scotia Investment bought all Scotia Group’s shares to trade up to $24.50 for a 52 weeks high and Carreras traded up to $44 at 10 am. No junior market stock has traded so far. Grace Kennedy traded 931,318 shares at $62.06, with a total value of $57.8 million, on Friday the last price the stock traded at was $64.
There are now only two offers for Scotia Group’s shares in the market totaling 85,000 units between $24.49 and $24.50, Scotia Investments is on the bid at $22.50.

Filed Under: Company News