LascoMan dominant again

November 28, 2014 by

Lasco's bottling line

Lasco’s bottling line

Trading in the Junior Market closed trading for the week with 2,411,982 units valued at $2,548,462 as Lasco Manufacturing dominated trading in this market for the second day running, with 2,151,551 shares valued at $2.2 million. The JSE Junior Market Index rose 1.51 points to close at 687.00. Only 5 securities traded, with the price advancing and 2 declining.
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market continues to be weak with 7 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
The active stocks during trading are, Lasco Financial with 123,236 shares, with the price rising 1 cent to 95 cents, Lasco Manufacturing finishing trading with 2,151,551 units, and put on 3 cents, to $1.05. Cargo Handlers ended with 2,150 units, as the price slipped 80 cents, to $14.20, after rising on Thursday to $15 on small volume, and General Accident finished with 50,400 shares with a loss of 8 cents to $1.50.

Filed Under: Company News

Small fall in profits at Blue Power.

November 28, 2014 by

Image courtesy of Graur Codrin/FreeDigitalPhotos.net

Image courtesy of Graur Codrin/FreeDigitalPhotos.net

Blue Power released six months results to October, showing profits of $52 million compared to $55 million in the same in 2013. For the three months, profit declined to $22.8 million from $25.2 million as the lumber division contributed lower revenues than in 2013.
Lumber division revenue fell from $366.8 million in 2013 and that of the Soap Division grew from $154 million to hit, $360.8 million and $175.7 million respectively, resulting in total revenues falling 6 percent in the October quarter to $259 million and rising 3 percent for the six months to $536 million. Sales in the Lumber Depot division fell from $191 million last year, to $176 million this year, there were some one off sales, in 2013. Profit in the lumber division fell as well, from $29 million to $17 million for the half year. Notwithstanding, pressure on sales, margin improved during the year. The company held a tight lid on cost in the latest quarter, but administrative cost climbed 20 percent for the six months.
B PowerEarnings per share are still strong at 91 cents and should go on to approach the $2 level, by year-end. The stock last sold at $6.50, is undervalued and should enjoy some recovery in price. IC Insider is maintaining its BUY RATED status on the stock although a return to growth in profit s may have to await the 2016 fiscal year.
The stock is listed on the junior market of the Jamaica Stock Exchange. The company primarily manufactures soaps and trade in Lumber.

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

Profit jump 440% at Supreme Ventures

November 27, 2014 by

SupremeVenturesSVL_150x150Profit for the September quarter, at Supreme Ventures jumped 440 percent over the 2013 results, hitting $184 million in the process and a sharp climb from the $34 million realized in the 2013 period.
For the nine months ending September this year, profit after tax rose by a strong 41 percent, to $617 million, with earnings per share of 23 cents, putting the company on target to hit 30 cents per share for the full year to December. The gambling industry can have fettle results from time to time as has happened in the past at this company.
The strong improved profit results, flowed from a 16 percent sales rise in sales revenue in the quarter, to $9.9 billion and a stronger 22 percent for the nine months, to $30.1 billion. Gross profit grew at a slower pace of 7 percent for the three months and 11 percent for the nine months.
Segment results| Segment results show Supreme with challenges. While lottery earnings, climbed 35 percent for the year to date, to reach $1.22 billion and other areas grew from $102 million to $108 million, Sports betting losses are worsening even as revenues climbed from $177 million in 2013 to $418 million in 2014. The sharp growth in sports betting is attributable to betting on world cup football games. The segment lost $87 million in 2013 and $148 million in 2014 so far. Revenues fell for the Gaming and hospitality segment, from $394 million in 2013, to $314 million in 2014, but the losses were reduced from $440 million to $376 million. There are no noticeable improvements in the losses in the September quarter, for either loss making segments.
SVL chrt 9-14Administrative expenses dropped 18 percent, in the quarter due mainly to lower charges for professional fees, compared with the 2013, quarter and 4 percent for the nine months to September. While taxation increased, it was much slower than the growth in pretax profit. If the company could cut out the segment losses or sharply reduce them, earnings could jump as the losses amount to about 20 cents per share after tax.
The financials remain strong with equity of close to $3.9 billion and cash and investments of $1.9 billion against current liabilities of $1.6 billion.

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

Lasco Manufacturing dominates juniors

November 27, 2014 by

Heating of raw material to make bottles for Lasco's new drinks

Heating of raw material to make bottles for Lasco’s new drinks

The Junior Market closed with 7 securities trading with Lasco Manufacturing accounting for 2.5 million units of the stocks to trade and resulted in activity in 3,366,459 units valued at $3,455,131. The JSE Junior Market Index rose 6.53 points to close at 685.49, with the price 5 advancing and none declining.
At the close of the market, there were 1 stock with the bid higher than the last selling price and 5 stocks with offers that were lower. The junior market continues to exhibit weakness with 7 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
Cargo Handlers concluded trading with 500 shares while gaining 90 cent $15, the high first reached in February this year. Lasco Distributors ended trading with 407,000 shares and increased of 10 cents to $1.50, Lasco Financial closed with 3,000 shares as the price climbed 1 cent to 94 cents. Lasco Manufacturing finished trading with 2,483,104 shares changing hands, to close 3 cents higher to $1.02, Paramount Trading saw trading in 15,255 shares as the price climbed 5 cents to $2.60, Caribbean Cream ended with 457,500 shares changing hands, to close at 71 cents and Access Financial ended with 100 shares changing hands to close at $10.01.
Blue Power released six months results to October showing profits of $52 million compared to $55 million in the same in 2013. For the three months profit declined to $22.8 million from $25.2 million as the lumber division contributed lower revenues than in 2013. Earnings per share are still strong at 91 cents and should go on to approach the $2 level by year end.

Filed Under: Company News, Company Results, JSE Junior Market, Stock Market Tagged With: , , ,

Negative Inflation for rest of 2014?

November 27, 2014 by

Price fallPrices increased for October rose by a mere 0.1 percent over September this year, and is in line with the increase in February and June but above a negative 0.3 percent in April. The rate for the rest of the year could be negative based on developments locally and overseas.
The inflation rate, the Statistical Institute of Jamaica (Statin) reveals was mainly due to a 0.2 percent increase in the index for the category of Food and Non-Alcoholic Beverages and 0.3 per cent increase in Housing, Water, Electricity, Gas and Other Fuels. This increase in the index for the latter division was mainly as a result of higher water and sewerage charges in October 2014 Statin stated. A 0.8 percent fall of prices in transportation, moderated the effect of the increases, in the other areas. Statin said that the ‘Transport’ division’s index fell as a result of the decline in the cost of airfares, as well as the price of fuel.

Lower airfares helped to keep October inflation low

Lower airfares helped to keep October inflation low

The October number brings the yearly inflation to 7.2 percent to date. The shortage of many locally grown food items, pushed up prices and inflation in the food category for the September by 2.1 percent, the worse monthly increase by far for the year. Supplies are coming back to normal and will moderate prices in this category, so there should be lowering of inflation here. The price of oil have fallen on the world market down to the mid US$70 range and local gas prices at the pumps, having declined sharply. The fall in world oil prices will be passed through to consumers in lower fuel rate by JPS. With all of these developments rest of the year should see negative inflation that may pull the full year rate well below 7%. The inflation rate for 2012 was 8.0 percent and in 2013, 9.5 percent.

Filed Under: Breaking News, Economy, Feature Stories, General Business News Tagged With: , , ,

Mayberry profit up & down but buy

November 24, 2014 by

Brokerage house, Mayberry Investments has a long history of profit up one year and down the next, which provides alert investors with good buying opportunities.
Mayberry_banner600X250Admittedly, this is not peculiar to Mayberry alone, but that is no solace to many of the investors who bought the stock years ago, when performance and the stock price were much better than now. A buying opportunity may now be presenting itself once more, as the stock is undervalued around the $1.50 level.
While profit is up for the nine months to September this year, profit dropped 59 percent before tax, for the September quarter, compared to that of 2013, but improved sharply from a loss of $25 million for the nine months ending September last year, to a profit of $239 million this year. Last year, Mayberry suffered a loss of $338 million relating to the government of Jamaica debt exchange program. During the September quarter this year, the company enjoyed a tax credit of $14 million moving profit after tax to $54 million compared to $80 million in 2013. For the nine months, to September this year, profit after tax, amounted to $278 million versus $61 million last year.
Net interest income, declined for 2014, compared with both periods last year, but major improved trading and investment gains over the similar period last year and recovery of bad loans, helped to improve total net income. There was slower exchange rate trading gains, in the September quarter, but for the nine months, it was slightly lower than for 2013. Administrative expenses climbed 29 percent, in the quarter and 26 percent for the nine months, to September, slower than growth in income.
At the end of 2013, Mayberry had $3 billion invested in equity but for 2014 to date there is a decline in the value that negatively affected reserves, by approximately $260 million. Funds tied up in this area of investment, is one factor for the underperformance of the company, as the local stock market has not been performing well. MIL tab 9-14All of that could change going forward as the local economy continues to improve and interest rates fall, leading to increased profits for listed companies and more demand for stocks, thus pushing prices upwards. Mayberry remains a good way to profit from any upsurge that the Jamaican stock market will enjoy going forward, with the high level of stocks held plus increased brokerage fees from executing trades for investors. At $1.50 for the stock currently and likely earnings of around 30 cents for 2014, the stock present an opportunity for good return going forward.
Stockholders’ equity stands at $3.6 billion, which translates to a book value of $3.04 per share with total assets of $23 billion up from $21.3 million at the end of September last year.

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

JMMB makes strong recovery in Q2

November 21, 2014 by

JMMBProfit for September quarter at Jamaica Money Market Brokers (JMMB) made a spirited recovery from the fall of 27 percent, in the June quarter to a more moderate 7 percent decline to reach $651 million from $697 million in September 2013. For the year to date, the decline is down to 17 percent to $1.2 billion.
Two main issues led to this performance, the main income generator, Interest income grew 20 percent in the quarter and 18 percent year to date but net interest income grew much more slowly at 14 percent and 12 percent respectively. Other revenues rose 37 percent in the September quarter and 33 percent for the six months but expenses jumped 45 percent in the quarter and 49 percent for the six months ending September this year, to $3.5 million. JMMB made some progress in cutting cost in the quarter but much more will be needed in the months ahead if the pace of increased cost is to be kept in line with or below the growth rate of income. “Expenses associated with the expansion of the Group through the acquisition of IBL accounted for $715 million (63 percent) of this increase and the remaining $421 (37 percent) is explained by costs associated with integration, growth in subsidiaries in the regional markets, increase in asset tax and normal inflationary increases,” Management states.
JMMB sum 9-14The banking segment had improved the results from $125 million in 2013 to $269 million in 2014, partially due to the acquisition of the Intercommercial Bank in October 2013, while financial and related services moved from $1.69 billion down to $1.25 billion.
Total assets grew from $172 billion in September last year to $224 billion in September, this year. The growth in asset is 10 percent or annualised at 20 percent since the fiscal year end in March. Equity stood at $20 billion at the end of September. The growth in assets is pretty strong and should result in strong increase in profits going forward.
JMMB stock last traded on the Jamaica Stock Exchange at $7 and on the Trinidad Stock Exchange at TT 45 cents.

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

Profit up at General Accident but just

November 18, 2014 by

GeneralAccident_logo150x150Profit for General Accident rose only 8 percent, for the nine months ending September this year, to $241 million or 23 cents per share.
For the similar period last year, the company reported a net profit of $223 million, putting them on target to exceed 30 cents per share for the full year to December. Profit for the September quarter amounted to $54 million and is up 20 percent over the 2013 results. Premium income grew 91 percent in the quarter and 19 percent for the year to date period, but commission income was up 15 percent in the quarter, and 38 percent for the nine months to September. Underwriting profit climbed 57 percent in the quarter and 39 percent for the year to date. Investment income declined sharply due to slower exchange rate movement in 2014, versus 2013. Administrative expenses climbed 13 percent in the quarter and 20 percent for the nine months to September. The sharp increase in premium income in the September quarter should lead to higher income in the December quarter and raise earnings beyond the level enjoyed in the period to date.
Genac 9-14“The company ended the quarter with a book value of $1.62 billion and generated a return on average equity for shareholders for the nine months period of 21 percent,” management stated in a release with the results. Equity at end of September last year was $1.35 billion.
Insurance reserves at the end of the period, stood at $2.1 billion, and is covered by cash and investments, of just over $2 billion.
With the stock trading at $1.53, on the junior market of the Jamaica Stock Exchange it is severely undervalued and has lots room to run accordingly, remains IC Insider BUY RATED.

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

Sagicor Group bounced head in Q3

November 18, 2014 by

SagicorBuilding280x150Banking profit fell to a loss of $16 million this year so far, from a profit of $271.8 million for the nine-month period to September last year, helping to pressure Sagicor Group’s profit for the third quarter and year to date.
The financial group saw a sharp fall in profit in the quarter, from $1.56 billion to $1.1 billion. “Post-acquisition losses relating to the RBC Jamaica acquisition that was completed effective June 2014 amounted to $231 million, including rebranding and restructuring costs” the Sagicor management said in a release with the result.
The Group produced net profits of $3.84 billion, with $3.79 billion available to stockholders, for the nine months to September. This outcome was better than last year by a mere 2.5 percent. Earnings per stock unit came out at $0.99. Profit for third quarter amounted to $1.08 billion compared with $1.52 billion for 2013 after minority interest. The current period results and the nine months profits were impacted by costs for rebranding and rationalizing operations, following the RBC Jamaica acquisition, higher taxes and lower unrealised FX gains in 2014 compared to 2013. The 2013 results included the negative impact of the Government of Jamaica NDX debt swap.
Segments| The group’s performance for the nine months disguises what has taken place in the segments. Individual insurance generated 20.5 percent more profit than it did in 2013, to reach $1.3 billion, employees’ benefit jumped 26.3 percent to $2.3 billion and investment banking climbed 83 percent to $569 million, this segment would have had the negative impact of the NDX in 2013. The category, All Other fell sharply, from $272 million to $79 million.
Revenues and Expenses| Revenue grew 9.6 percent above prior year, to hit $34.2 billion. The 2013 revenue included the realised capital losses as a result of the debt exchange. “2014 Net Premium Income, in aggregate, was slightly below that for 2013. Net Investment income was higher than in the prior year, reflecting business growth and units’ appreciation in the Segregated Funds. The 2013 Net investment Income number also includes capital losses from the NDX and PDX,” the manager’s statement said.
“Group administration expenses of $7.52 billion were 35 percent more than in 2013. The significant increase includes post acquisition expenses for the RBC portfolio and one-time costs for re-branding the RBC portfolio and rationalization of operations. The Banking Group also had operating costs associated with the new flagship Hope Road branch which was opened in December 2013,” management explained in their report to shareholders.
The increased administration cost which was $3.4 billion in the third quarter was $1.6 billion more than the amount incurred in 2013 due to the added ongoing cost associated with running the RBC banking operation. The results for the December quarter should see a sharp reduction in this category of expense and therefore help improve the profit to what would normally be expected.
Assets| With the acquisition of RBC Jamaica operations the total group assets now sits at $262 billion up from $189 billion at September 2013 and equity stands at $42 billion.

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

50% dividend hike at Pan-Jamaican

November 18, 2014 by

PanJam bldgPan-Jamaican Investment declared a dividend of 75 cent per stock unit payable in December and is 50 percent higher than the 50 cents per share, paid at the same time in 2013.
The fourth interim dividend for 2014 is payable on December 22, to stockholders on record at November 28. The ex-dividend date is November 26. Previously, the company hiked the interim dividend paid on September 26 to 70 cents per stock unit. Interim dividends of 60 cents per share were paid on June 20 and on March 31, this year. The payments for the year translate to a yield of just over 5 percent.

Filed Under: Company News, Dividends Tagged With: ,