As if its public image was not already low JPS did more damage to it today with a massive power outage at the start of the popular world cup series and amidst a near 100 degree hot a muggy temperature. Football enthusiasts who rely on television for the viewership of their sports were deprived of catching the start of the world cup match between Mexico and Cameroon which started at 11 Jamaica time. The outage could hardly have been at a worse time for them, especially at a time when they have mouthed the thought of getting the permission to supply the additional amount of new electrical power to the system.
While government is trying to get third parties to set up a new power plant to feed into the JPS grid, JPS would not have done themselves much favour if what would appear to be the logical decision of allowing them to add the needed supply to the grid. What has not been said in the saga of getting cheaper power to consumers of electricity is, with JPS already having the overheads for supplying the current and near term needs, switching to a new supplier of power generation will not provide the best cost option as two sets of overhead cost will have to be borne by consumers, plus the profit margin of a separate supplier as well as additional mark up the JPS will effect for transmitting the supply. So consumers will be hit with double cost and double profits.
But JPS should have been performing better than they have. But clearly government ministers have not been thinking properly being 20 percent owners in JPS. Have anyone thought about the effect that by passing JPS for power generation will have on the 20 percent stake owned by taxpayers through the government, if that been considered seriously no one is telling the country?
While the government is focusing on new supply to deliver cheaper power,
40 minutes world cup loss damages JPS image
Palace movies go ½ off
Movie promoters, Palace Amusement Company announced the giving of patrons ½ off on movie tickets for Monday evening movies and Tuesday matinees at all cinemas ahead of the start of the hectic summer season. Previously, the company offered patrons the benefit of the purchase of 2 tickets for the price of one, allowing two persons to attend at the price of just one ticket. The new arrangement will see each patron enjoying a 50 percent reduction in the price of their ticket on the specified days and times.
The company also indicated that” it has upgraded and improved its automated systems and user access. Patrons are now able to select and purchase specific box seats, as well as regular seats online with a Palace Card at Carib 5 and Palace Cineplex, in Kingston and collect the tickets purchased by swiping the Palace Card used for purchase, or by scanning e-receipt at the bar code reader station on location at the cinema. Fans can also top up their Palace Cards online using a Credit Card”.
The company is also celebrating Father’s Day this Sunday, June 15, with the gift of ½ off movie deals for all show times at all cinemas. Fathers who are football fans can see the Argentina v Bosnia-Herzegovina match, scheduled for 5:00 pm on Sunday, Live in HD at Carib 5 and Palace Multiplex. ½ Off Specials on Father’s Day apply to movies only.
The company’s website www.palaceamusement.com, will feature a Fresh New Look and users will also have the convenience of mobile access in addition to other User Friendly Features. Member login will remain the same.
Palace Amusement indicated in a release, that they have already begun to roll out the Summer Blockbusters and coming soon are: –
3D flicks – Edge of Tomorrow, How to Train Your Dragon 2, Transformers: Age of Extinction and Dawn of the Planet of the Apes, also Steve Harvey’s Think Like a Man Too, Hercules, Jersey Boys, Sex Tapes and many more.
7 up 5 down at JSE
In today’s trading on the Jamaica Stock Exchange the prices of 7 stocks rose and 5 declined with only 23 securities traded, resulting in 2,098,406 shares changing hands valued at a mere $19,487,112.
Main Market| JSE Market Index inched down by 56.24 points to70,039.27 and the JSE All Jamaican Composite index eased by 62.89 points to close down at 77,024.83.
Gains| Stocks recording gains at the end of trading in the main market are Carreras with only 4,000 shares as the price gained 18 cents to end at $33.19, Cable & Wireless 93,020 units with the price gaining 3 cents to land at 30 cents, Scotia Group with 127,744 shares to close at $19.31 with a cent increase and its subsidiary Scotia Investments with 7,267 shares as it closed at $24, with a gain of 90 cents.
Firm| The stocks in the main market to close without a change in price are, Berger Paints with 4,773 shares to close at $1.70, Ciboney with 11,000 units in closing at 7 cents, Jamaica Broilers with 238,932 shares as the price ended at $4.57 followed by Jamaica Money Market Brokers with 8,274 ordinary shares at $6.70, Kingston Wharves 7,520 units as the price closed at $5.10, National Commercial Bank had one of the better volume days with 633,525 shares as the price closed at $18.50 but the bulk of the trade were done at $17, Radio Jamaica had 9,292 shares to close at $1.29 and Sagicor Group 308,000 units at $9.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 125,000 units to close with a 2 cents gain at $3.05, Proven Investments 8% preference share put through 64,000 shares at $5.09 and Jamaican Teas debenture note traded 7,000 units at $100 each.
Declines| The number of stocks that declined in the main market are Caribbean Cement with 22,386 shares as it lost 35 cents to end at $2.05, Grace Kennedy 310 units, declining by 50 cents to close at $53.50 and Sagicor Real Estate Fund with 5,500 units and declined 40 cents to close at $6.10.
Junior Market| The JSE Junior Market Index declined by 0.59 points to close at 711.45 as 5 stocks traded with 2 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Caribbean Cream with only 2,000 shares to trade 13 cents higher at the close to reach 83 cents and Lasco Manufacturing with 35,863 units to close with a 2 cents gain at $1.02.
Firm Trades| One stock in the junior market stocks traded to close at the same price as the day before, as Consolidated Bakeries with 250,000 units closed at 90 cents. Jamaican Teas junior listed bond closed at $100.
Declines| Stocks declining in the junior market at the end of trading are General Accident Insurance with 90,000 units, declined 14 cents to close at $1.36 and Lasco Distributors 43,000 units and declined 1 cent to close at $1.18.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 6 stocks with the bid higher than the last selling price and 6 stocks with offers that were lower.
Outflows dominate
The Jamaican dollar was mixed against the main currencies, in Wednesday’s trading as the purchase of foreign currency by dealers, saw more demand than supply, breaking a three day spell of more inflows than outflows. A total of the equivalent of only US$24,428,168 entered the market with the equivalent of US$31,678,079 leaving. On Tuesday dealers bought the equivalent of US$33,917,829 and they sold the equivalent of US$28,025,802.
In US dollar trading, dealers bought only US$19,806,494 compared to US$26,384,979 on Tuesday as the buying rate for the US dollar fell 7 cents to $110.77 and sold US$27,301,779 versus US$22,336,540 on Tuesday with the rate closing up 5 cents to $111.45.
The Canadian dollar buying rate rose by 47 cents to end at $101.64 with dealers buying C$3,126,844 and selling C$3,327,533 with the rate rising 16 cents to end at $102.36.
The Pound closed at $184.65, for the purchase of £980,484 as the rate gained 18 cents, while £755,239 was sold, with the rate dropping 46 cents to $186.72. Other currencies bought amounted to the equivalent of only US$118,036 while selling accounted for the equivalent of just $54,991.
Highs & Lows| The highest rate gained 5 cents to $111.65 but the lowest buying rate along with the highest selling for the US dollar remained unchanged at $90.60 and $116.09 respectively. The lowest buying rate was up $17.90 to $108.50.
The highest buying rate for the Canadian dollar rose 45 cents to $102.60, the lowest buying rate remained unchanged at $80.68, the highest selling rate was up 38 cents to $104.48 and lowest selling rate was up by a mere 10 cents to $97.30.
The highest buying rate for the Pound gained 10 cents to $187.10 while the lowest buying rate remained unchanged at $149.40. The highest selling rate rose by $1.06 to $192.60 and the lowest selling rate was up 55 cents to $180.
Buy Rated update
Dolphin Cove was added to the Buy Rated list in May having produced a healthy 26 percent jump in earnings for the March quarter with indications that earnings could hit $1.20 for this year. At just $8.50, the price could jump in the months ahead.
Trinidad’s National Flour was also added to the watch list in May and AMG Packaging was moved earlier from Buy Rated to the Watch list. Access Financial which had been put back 
into the Buy Rated list when the price fell back to $8, has risen in price but remains on the Watch list until the director’s dispute is resolved.
Caribbean Cement remains in the buy list with the price having pulled back sharply, resulting from the unimpressive March quarter results. The price could still pull back some more so investors may want to watch before buying. One Caribbean Media has gained in price since placed on the Buy Rated list but is now losing some of its attractiveness with 25 percent potential gains to be expected from it now. Ivestors should be careful with this one unless their objective is for a longer term investment.
Junior Market| Some of the Junior market listings have not had a great first quarter in reporting profits, but prices have pulled back and that have helped to make them attractive buys with the hope that profit will improve going forward. The reality is that in the March quarter, government operated at a surplus and this would have pulled funds out of the system and squeezed consumers’ purchasing power, thus affecting the smaller companies more than the larger ones. Blue Power has stock buying interest but new investors may want to wait until the company reports in a few weeks’ time.
JSE Main Market| A number of the main market companies in Jamaica, reported strong first quarter growth in profits that points to the possibility of growth in 2014 profits for them. Outstanding results were reported by, Hardware and Lumber with IC Insider 2014 forecasted earnings, put at $5.40 which means a strong increase can be expected in the stock price. Grace reported 21 percent increase in March quarter results but some of this comes from one off losses incurred in 2013 and none in 2014 rather than from totally ongoing improvement in its operations. Pan Jam also reported strong increases in profit from continuing improvement in operations as well as recovery form one off losses in 2013. National Commercial Bank continues to post good numbers but the market is not yet impressed, Cable & Wireless revenues were up a strong 14 percent in the March quarter and seems headed to making a profit sooner than later as cost is also being cut. Cable & Wireless could benefit from increased customers from the heightened exposure that will flow from their sponsorship of telecast of the World Cup football on CVMTV station.
Carreras profit from ongoing operations is back on track after suffering a sharp contraction in the 2013 June quarter. With the high dividend payout the stock should gain from increased investor’s attention some time down the road. Jamaica Money Market with ongoing earnings up 81 percent for the year to March should see earnings in excess of $2 per share for the 2015 year and is clearly severely undervalued at $7. Sagicor Group’s profit was up a bit in the April quarter but remains undervalued. Scotia Group profit was down a bit in the April quarter but remains severely undervalued and Scotia Investments saw growth in profits in the April quarter but not a big increase over the NDX debt exchange affected 2013 quarter. The stock remains severely undervalued, nevertheless.
In Trinidad there are several stocks that remain undervalued compared to the average of the market, this is reflected in the Buy Rated list. See TTSE PE ratio chart for stocks selling below the market a sector levels.
Investors should note that the Jamaican market is in a period when investors’ attention on the market is low ahead of the period just ahead of the next set of company results due towards the end of July. This year with World Cup football taking centre stage the market may have to await August before the real depth of the market will be seen.
Jamaica Producers top inside trades
Jamaica Producers Group advises that a director purchased 433,941 shares in the company on June 6, 2014 while the Gleaner Jamaica advises that a senior manager sold 100,000 shares on June 3, 2014 and National Commercial Bank advises of the purchase of shares by Directors on May 30, 2014 and June 3, 2014 amounting to 37,208 units.
JIIC Profit almost drowns
Grace Kennedy’s subsidiary Jamaica International Insurance (JIIC) was almost fully drowned by sharply increased claims losses in 2013 of $1.89 billion, up from $1.34 billion in 2012 resulting in a small profit of only $17 million as gross premium income rose from $4.18 billion to $4.3 billion and investment income rose by $130 million to $542 million, mainly due to foreign exchange gains of $114 million that increased by $65 million. In 2012 the company made profit after tax of $180 million.
During the year the company reviewed its claims provisioning and increased the provision for claims in the third quarter of the year resulting in losses up to the quarter.
Profit in 2013 fell even as administrative cost was held steady at $813 million in both years.
At year end JIC boast total assets of $7.5 billion a slight increase over the $7.24 billion at the end of 2012, at the end of 2011 assets stood at $6.5. Shareholders’ equity stands at $2 billion at December 2013. The asset base put JIIC just below Guardian General with assets of $8.65 billion at the end of 2013 but almost twice the size of General Accident with assets of $4.26 billion.
Small profit for JN Life
A relatively new kid on the block in the life insurance industry – JN Life Insurance recorded increased policy holder liabilities of $35.6 million last year that helped push assets of this fledgling entity to $253 million according to the 2013 audited financial statements of the company, up from $198 million in 2012. Shareholders’ equity of $203 million is backed up mostly by cash and investments.
Income for 2013, came mostly from premium of $51 million which was inadequate to make an underwriting profit leaving an underwriting loss of nearly $5 million. Investment income and foreign exchange gains of $15 million helped to land a profit after tax of $3.8 million compared with a profit of $4 million in 2012.
JN Life is fully owned by Jamaica National Building Society, it started underwriting insurance in July last year, the audited financial statements stated, having obtained license from the Financial Securities commission in December 2012 to conduct ordinary life business and group mortgage blanket protection policy.
More inflows than outflows but Ja$ slips
The Jamaican dollar lost further ground against the US dollar with the selling rate rising as well as against the Canadian dollar but gained against the Pound sterling in Monday’s trading.
Trading levels on the market on Monday were above Friday’s as dealers bought the equivalent of US$50,757,616 compared to US$44,386,802 on Friday and sold the equivalent of US$43,628,758 versus US$41,450,934.
In US dollar trading, dealers bought US$46,175,243 compared to US$41,028,885 on Friday as the buying rate for the US dollar fell 15 cents to $110.85 and they sold US$40,725,949 versus US$38,828,427 on Friday with the rate closing up by 3 cents at $111.40.
The Canadian dollar buying rate rose by 22 cents to end at $100.72 with dealers buying C$2,113,617 and selling C$1,742,238 with the rate rising 27 cents to end at $102.01.
The Pound closed at $184.39 for the purchase of £1,519,322 as the rate fell 17 cents while £679,265 was sold with the rate falling by 61 cents to $186.59
Other currencies bought amounted to the equivalent of US$134,869 while selling accounted for the equivalent of $169,598.
Highs & Lows| The highest buying rate for the US dollar declined 40 cents to $111.60 but the lowest buying rate gained 42 cents to close at $90.60, the highest selling remained unchanged at $116.09 and the lowest fell by $18.32 to be back at $90.18.
The highest buying rate for the Canadian dollar rose 23 cents to $102.13, the lowest buying rate increased by 4 cents to $80.51 but the highest selling rate inched up 21 cent to $104 and lowest selling rate was up by a mere 5 cents to $97.
The highest buying rate for the Pound fell 35 cents to $187.15 while the lowest buying rate climbed $1.08 to $149.36. The highest selling rate declined by $1.90 to $192.55 while the lowest rate remained unchanged at $179.95.