Access Financial Services declared an interim dividend of 18.21 cents per ordinary stock unit to be paid on March 20, 2015 to stockholders on record as at March 6. The stock will traded ex-dividend on March 4.
Access last paid an interim dividend of 36.5 cents on September 1. Prior to the 2014 payment Access also paid 31 cents per share on August 15, 2013. The high risk lender reported profit increasing by 20 percent to $239 million for the nine months to September, last year. Earnings per share amounted to 87 cents. Access is listed on the junior market of the Jamaica Stock Exchange and last traded at $9.20.
Money coming for Access owners
8th largest NCB owners sold out
One of National Commercial Bank’s (NCB) top ten shareholders sold off their shares in trading on the Jamaica Stock exchange today, and pocketed more than half a billion.
The latest NCB results list York Seaton and Harriet Maragh as joint holders with 27,111,000 shares amongst the listed shareholders. The amount was sold in trading on Monday with Mayberry Investments being the selling broker and Scotia Investments the buying broker. The shareholding represents 1 percent of the NCB group shares, and was traded at $20.50 each and amounted to $555.77 million in total. The holding was the 8th largest in the NCB group.
York Page Seaton is one of the major owners of Y.P. Seaton and Associates Company Limited, Construction, Development, Electrical and Mechanical Engineering Contractors and located in Jamaica.
Lasco Manufacturing profit climbs 19%
Revenue for the nine months to December increased by 16 percent to $3.3 billion. “This performance was mainly due to increased sales volume in the export markets as well as the introduction of the iCool line of products. The export division revenue year to date, shows a 53 percent growth over the same period in the 2013” Dr. Eileen Chin, Managing Director stated in her report accompanying the financials. Additionally, finance cost increased in the quarter, as well as year to date, with the quarterly figure rising 180 percent to $45 million and the nine months, to $102 million from just $18 million in the prior year’s nine months period, much faster than the increase in revenues. The increases above helped to pressure profit for the period, resulting in slight 5 percent reduction in net profit for the nine months, amounting to $426 million, from the prior year.
“There was also an increase in operating expenses during the period due to a significant investment in marketing to support and promote the introduction of our new iCool line,” Chin also states in her report. “Operationally, we are meeting our growth milestones. Lasco Manufacturing is well positioned in the current environment to deliver increased growth. We have completed a significant transformation that provides us with a strong asset base. Importantly, we expect strong growth in the 2015-16 financial year driven by ongoing success in our local and export markets. The integration of our business process and product extension portfolio has contributed positively to this quarter’s results. This integration is also expected to have further positive impact on profitability during the 2015-2016 financial year. We are on target to deliver on the promise to improve efficiencies and productivity, reduce operational costs, and increase product portfolio, sales and profitability”, said Chin.Lasco recorded gross profit margin of 30 percent, in the December quarter from 23 percent in the same period in 2013, the margin, year to December, is 37 percent. Administrative and marketing expenses were flat in the quarter and up 29 percent year to date, compared with the prior year.
Earnings for the full year to March should end up around 15 cents per share. With new products to be added to its portfolio when the dry products factory is activated, revenues going forward should grow strongly. Increased finance cost and depreciation charge will be a drag on earnings for a while. At a stock price of $1, the stock is a buy to benefit from strong future income and above average profit growth.
Shareholders’ equity stood at $3 billion at December, borrowed funds stands at $1.4 billion. Work in progress stood at $2.26 billion, this amount relates to the dry product factory and when completed will swell fixed assets to $3.3 billion but it will result in increased depreciation charge and the funding for it will result in finance cost hat was being capitalised being expended against revenues.
Lasco Financial profit up 50%
Profit at Lasco Financial jumped a noticeable 50 percent, in the December 2014 quarter, on rising revenues of 11 percent. The company recorded profit of $68 million in the quarter versus $46 million in 2013 and recorded a 33 percent rise in its nine profit to $181 million from $136 million.
Lasco reported improvement in gross profit margin of 152 percent, in the December quarter, from 108 percent in the same period in 2013, the margin, year to December, is 155 percent from 137 percent in the nine months of 2013. Administrative expense rose by 8 percent for the quarter and 13 percent year to December while marketing expenses fell 8 percent in the quarter but was up 9 percent year to date, compared with the prior year, but still below the rise in revenues.
Earnings per share for the quarter amounted to 6 cents and for the nine months 15 cents. Earnings for the full year to March should end up around 20 cents per share. The stock now priced at $1, remains a buy, with prospects for increased profits for 2015/16.
The company is listed on the Jamaica Stock Exchange junior market and is primarily involved in cambio and money transfer and has with equity of $795 million no debt, and cash funds of $502 million.
Kingston Properties sells property
Kingston Properties sold its office and warehouse property located at 83 Hagley Park Road effective January 6, 2015 for approximately Two Hundred and Thirty Million Dollars ($230 million). The property was sold to Medical Disposables & Supplies a junior market listed company.
“Net proceeds of the sale are expected to be invested in other properties. Over the five years holding period, Total Return which includes annual cash yield and capital appreciation, net of transactions costs was 13.2% annually,” the company said in a release to the Jamaica Stock Exchange.
Kingston Properties is primarily involved in the ownership and rental of commercial properties in the Kingston area and residential units in Miami. The company reported rental income of $77.4 million up from $66.6 million in the nine months to September 2013 and net profit of $4.5 million.
Lasco Distributors profit climbs 69%
The company is listed on the Jamaica Stock Exchange junior market, has virtually no debt, is yet to book its successful legal claim against Pfizer and boast equity of $2.7 billion and cash funds of $608 million. The company is to build out a new warehouse for housing the increased need of space for new product lines they represent, the building has already been bought and booked in the accounts.
9 stocks rise 13 fall PanJam up $3.50
Main Market| The JSE Market Index gained 217.78 points to 77,277.68, the JSE All Jamaican Composite index rose 243.49 points to close at 85,118.34 and the JSE combined index gained 124.23 points to close at 79,056.86.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 10 stocks with bids higher than their last selling prices and 6 stocks with offers that were lower.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Caribbean Cement closing with 15,100 units to close with a gain of 2 cents to $2.37. Carreras closed with 37,672 units and put on 60 cents to $38.60, Desnoes & Geddes concluding trading with, 50,000 shares to end with an increase of 10 cents to $4.90, Jamaica Broilers closed with 10,482,208 units to close 1 cent higher at $4.01, Jamaica Producers ending with 52,385 shares as the price jumped at $1.30 to $17, Pan Jamaican Investment closed with 550 shares as the price climbed $3.50 to $55.50 and Sagicor Real Estate Fund concluding trading with 7,800 shares traded with a gain of 5 cents to $6.70.
Firm| The stocks in the main market to close without a change in the last traded prices are, Ciboney exchanging a mere 200 shares at 7 cents followed by Jamaica Money Market Brokers with 6,647 ordinary shares trading to end at $6.60 and Proven Investments closing with 59,440 shares trading at 21 US cents.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Cable & Wireless closing with 909,774 units trading as the price slipped 2 cents to 48 cents.
Grace Kennedy had only 290 shares changing hands to close lower by 17 cents at $62.40, Hardware & Lumber ended with 35,500 units trading to close lower by $1.01 at $6.50, Mayberry Investments ended with 1,020 units trading, the price slipped 2 cents to $1.98, National Commercial Bank in trading 167,784 shares closed 10 cents lower to $19.90. Sagicor Group closed with 212,060 units, the price slipped 8 cents to $10.12, Scotia Group had 76,218 shares changing hands at 40 cents to $20.10, Scotia Investments closed with 4,040 units trading as the price slipped 4 cents to $22.51 and Seprod ending with 31,164 units trading at 40 cents to $12.10.Preference| Jamaica Money Market Brokers 7.50% preference share traded, ending with 79,152 units changing hands at $2.
Boeing $24b sales just beat Apples’ $18b Profit
Those are impressive numbers for a huge corporation and against a rising United States dollar that is likely to affect cost and sales, but the numbers pale in contrast to Apple’s $18 billion profit in one quarter, on sales of US$74.6 billion, based on rising iPhones sales, in the December quarter.
Boeing in its release of the full year results stated that “core earnings per share guidance for 2015 is set at between $8.20 and $8.40, while GAAP earnings per share guidance is established at between $8.10 and $8.30. Revenue guidance is between $94.5 and $96.5 billion, including commercial deliveries of between 750 and 755.”
Apple provided the following guidance for its fiscal 2015 second quarter, revenue between $52 billion and $55 billion, gross margin between 38.5 percent and 39.5 percent and operating expenses between $5.4 billion and $5.5 billion.
Cargo Handlers profit up 43%
Junior market Cargo Handlers, reported their first quarter results to December, last year, continuing the strong growth trend of the 2014 fiscal year, with another impressive increase in operating revenue which jumped 40 percent over 2013, to $62 million. Profit was up by 43 percent to $40 million, ending with earnings per share of 96 cents. Other income fell from $6.8 million to $341,000.
Trading on the Junior Market was very low but for lack of buying interest but more due to sellers holding out for higher prices and in a number of cases there is no selling interest for nearly a third of the listings.
The market closed with only 4 securities traded and ended with 78,878 units valued at $142,210. The JSE Junior Market Index declined 0.35 points to close at 692.76, with the price of 1 advancing and none declining. At the close, there were 5 stocks with bids higher than their last selling prices and only 1 stocks with the offer that was lower. The junior market closed with only 3 securities closing with no bids to buy. There were 7 securities that had no stocks being offered for sale.
Stocks trading are, Caribbean Producers closing with 970 shares and gained 1 cent to $2.05, Blue Power ending with 1908 units changing hands at $6.51, Eppley 9.5% preference share traded 10,000 units at $6 and Lasco Financial ended trading with 66,000 shares at $1.05.
Sagicor Expensive Real Estate Fund
Sagicor Real Estate X Fund has been selling significantly above its IPO price of $5 and has since risen by 40 percent to $7, making it one of the better performing stocks on the local stock market since listing.
Of import is the seasonality of the hotel operations—high income and profits in the period between December and April, July and August, and lousy in the other months, which are usually loss making months. Sagicor Real Estate X Fund had assets of $9 billion at the end of September and net book value of $6.09. The stock price is $7, for a near 20 percent premium, which is well over the market.
The fund with 1,495,336,750 shares issued, boasts a very high PE ratio of 12, which is far greater than the other stocks in the market, and without the growth prospects of the vast majority of them. In a market that values stocks based on earnings generating cash flow, the valuation placed on the fund is even higher than the PE suggests and may be as high as a PE of 30. But that is the value that would be placed on a company
growing profits at 30 percent per annum. Earnings growth will not be there to drive the stock price compared to many of the quality listed stocks. The stock is now being valued on hype not reality.
The Sagicor Real Estate X Fund has a number of hotels, but many hotels have been notorious for not being highly profitable. There is also a great level of seasonality in performance in the sector. Income from other local properties will be steady as
most are rented on a long term basis.
The company has strategically invested in the Sigma Real Estate Portfolio, which holds a mix of hotels, commercial, industrial and warehousing properties. At this time, the only investment for the Fund is the units in the Sigma Real Estate Portfolio.
The Fund is 67.7 percent owned by the Sagicor Pooled Pension Investment Funds, which are administered by Sagicor Life Jamaica and is listed on the Jamaica Stock Exchange.




