Company News — Page 153

C2W Music receives US$21K income

January 17, 2014 by IC Insider.com

C2W Music, which has earned virtually no income since it raised funds in an IPO in 2012 is reporting what appears to be a breakthrough in the last quarter of 2013 with royalty collections.

According to the company in a recent release to the stock exchange, “We are proud to announce that during the 4th quarter of 2013, we have started to see royalty driven earnings deriving out of Barbados. These earnings have come out of the exploitation of copyrights and more specifically have been earned through the “Performing Right” collections of radio broadcast. The amount received thus far totalled USD$20,643.”

“We would also like to add, and as mentioned in a previous press release, that we continue to work closely with all Caribbean performing rights societies in creating proper integration of our systems to show an accurate collection of our royalties from the territory. Other than our own music catalogue, we sub-publish two of the world’s largest music publishers, BMG Chrysalis and Warner Chappell. We are hopeful that our collective efforts would be recognized by the 2nd quarter of 2014 and onwards, resulting in more royalty collections,” a release from the company said.

Related posts | C2W says it’s not dead | Is C2W doomed?

First Citizens doubles in 5 months

January 13, 2014 by IC Insider.com

When Trinidad’s First Citizens Bank stock price hit $41.54 on Friday 10th January, investors who bought shares at the initial public issue price and held until this week doubled their money in just over 5 months. The stock price gained 89 percent from the initial IPO price of $22 per shares in August. The bank declared a $1.09 per share final dividend to be paid January 24, to shareholders on record as of December 31, 2013, the Ex-dividend Date is December 27.

The dividend equivalent to a 12 percent rate of return on the IPO price, when added to the return of the stock price for persons, who got shares at the IPO price and held, have seen a 100 percent gain on their investment.

The dividend policy of the First Citizens Bank enunciated in the propectus is to distribute to its ordinary shareholders funds surplus to the operating capital and strategic requirements of the Group, as determined by the Directors, with an annual target dividend pay-out percentage range of 45 to 55 percent of net profit after-tax. The 2013 dividends translates to around $273 million versus $263 million paid for 2012.

The bank reported profits of $742 million before tax and $606.5 million after tax compared to 2012 pre-tax profit of $714 million and $446 million after tax but the big increase after tax is due to tax adjustment in 2012 that depressed the after-tax profit. Based on the 2013 results IC Insider return the stock to the BUY RATED list and project the stock price to exceed $50 per share during the course of 2014.

First Citizens Bank is an ICInsider Buy Rated stock. To view the full list, click here.

Filed Under: Company News, Initial Public Offers, Stock Market, TTSE Market Tagged With: First Citizens, TTSE

Buy Rated: Active price movements

January 10, 2014 by IC Insider.com

Friday, 10th January 2014 | Price changes saw 9 of the Buy Rated stock selection gaining during the week and 13 declining.

On the Jamaica Stock Market, the largest move was by Pan Jamaica Investment falling from $54 last week to $48.13 at the end of the week. Jamaican Teas fell 10 percent on small volume, back to $3.60. Grace Kennedy fell by 45 cents to $54.05; Hardware & Lumber dropped 9 percent from $8.down to $7.28, Lasco Manufacturing ended down 6 percent as the stock shed 8 cents to end at $1.20.

The week was not without its winners. Caribbean Producers put on 5 cents or 2 percent to close the week at $2.75 and is up 35 percent so far. General Accident is up only 2 percent since selection but gained 9 cents or 5 percent during the week.

Lasco Distributors gained 10 cents for a gain of 8 percent; Carib Cement, in making it relentless climb from obscurity, hit $4 this week but only held on to $3.80 at the end for a week’s gain of 30 cents or 9 percent. The stock is up 41 percent so far. National Commercial Bank put on 80 cents or 5 percent for the week but is still under water since selection at 12 percent.

In Trinidad, First Citizens Bank climbed to the $50 forecast level and put on 91 cents in the week. Neal & Massy gained 55 cents in the week as it is gradually gaining traction with its price moving forward.

Related posts | Buy Rated: H&L up 74%

Filed Under: Company News, JSE Main Market, Stock Market, TTSE Market Tagged With: JSE Company, TTSE

PE Ratio: First Citizens have more to do

January 10, 2014 by IC Insider.com

Friday, 10th January 2014 | During the past week on the Trinidad Stock Exchange, there were a number of companies that reached 52 weeks highs, but only First Citizens and Neal and Massy make any sizeable price movements in the week.

As such the PE chart remains roughly unchanged from the week before and continues to beckon investors to take advantage of the opportunities in that market to make above average returns.

First Citizens continues a relentless run toward what IC Insider sees as a target price of $50-60 this year. Others that we have recommended as good buys continue to increase in price but slowly. These include Republic Bank, Trinidad Cement, to name a few.

Filed Under: Company News, Stock Market, TTSE Market Tagged With: PE Ratios, Trading Activity, TTSE

Carreras pays out liquidation money

January 9, 2014 by IC Insider.com

Carreras declared a special interim capital cash distribution of $1.18 per stock unit to be paid out of proceeds received from the liquidation of a subsidiary, pending the granting of a transfer tax exemption pursuant to the Transfer Tax Act.

The special capital cash distribution will be paid on January 30, 2014 to shareholders on record as at January 17, 2014. The ex-dividend date is January 15, 2014.

Carreras liquidated its subsidiary Cigarettes Company of Jamaica but was slapped with an unwarranted tax assessment in the mid 2000’s. The case was appealed up to the Privy Council and the company won, thus permitting it to be entitled to recover nearly $3 billion in taxes wrongfully paid along with interest and legal fees.

The company started to recover the amount in 2013 and should in all likelihood recover all of it before the end of 2014.

Filed Under: Company News, Dividends Tagged With: Carreras, Dividends, JSE Company

Salada Foods switch distributors

January 8, 2014 by IC Insider.com

Salada Foods has changed its distributors to Lasco Distributors effective from the beginning of January this year. The company has not been happy with the happy in recent times with the manner in which the former distributors were executing task of distributing the company’s products.

Salada advised the Jamaica Stock Exchange that the distribution agreement between SAL and T. Geddes Grant (Distributors) Limited representing the Musson Group ended on December 31, 2013 and that on January 2nd, Lasco Distributors Limited was appointed Exclusive Distributors to distribute all the Salada branded products island-wide.

Salada manufactures and sell Mountain Peak Coffee, Jello and other hot beverage mixes and recently started the production and sales of the Roberts line of products.

Filed Under: Company News, General Business News Tagged With: JSE Company, Lasco, Salada

First Citizens staff lose huge payday

January 5, 2014 by IC Insider.com

Several staff members of Trinidad’s First Citizens Bank lost out on the huge return investors got when the bank offered shares to the public and allocated shares to the staff in August 2013.

The shares, which were very attractively priced at $22 and at an attractive PE, exhibited all the signs of a big pay day. So attractive was the issue, that IC Insider immediately placed the stock on our Buy Rated list from the IPO opened. Surprisingly, information obtained from the Trinidad & Tobago Stock Exchange was that a large percentage of the bank’s staff never bought shares that were allocated to them. As such, the excess was made available to the public who clamoured for more shares. Employees of the bank bought only 3.78 million units accounting for 7.8 percent of the amount offered and just more than half of their entitlement.

The stock price has since hit $40.63, a gain of on 84.6 percent. In addition the bank declared a $1.09 per share final dividend that will be paid January 24, 2014 to shareholders on record as of December 31, 2013. The dividend is equivalent to a 12 percent rate of return on the IPO price. When the dividend is added to the return of the stock price, the result is a 96 percent gain on investment in just five months.

Based on the 2013 results, IC Insider returned the stock to the Buy Rated list and projects the stock price to exceed $50 per share during the course of 2014. Those are huge returns in a country where interest rates on money market instruments are below 5 percent.

The IPO was heavily subscribed as $3.3 billion chased $1 billion of shares that were on offer leading to a massive oversubscription for the 48 million First Citizens Bank shares. While the staff only picked up a portion, there were 12,435 applicants who got less shares than they wanted.

Filed Under: Company News, Feature Stories, Initial Public Offers, Stock Market, TTSE Market Tagged With: First Citizens, TTSE

JSE could face law suit over Knutsford

January 5, 2014 by IC Insider.com

IC Insider understands that Proven Wealth received a letter from the Jamaica Stock Exchange (JSE) indicating that Knutsford Express failed to be approved for listing under the junior market rule 501 governing listings.

Christopher Williams, CEO of Proven Wealth, stated that the brokerage firm received the letter from the JSE to which their lawyers have responded. According to Williams, “the lawyers pointed out in their response that the company qualified under section 502 of the listing” amongst other issues. This is in keeping with IC Insider’s report of Tuesday December 31, the day the listing was turned down. The stock exchange is being given the opportunity to respond before more drastic action, if needed, is taken, Williams stated.

The development is black eye on the Jamaica Stock Exchange, the sponsoring broker and an embarrassment to all concerned with the capital market. The stock exchange and the Financial Services Commission would have reviewed the prospectus and ought to have been aware of any deficiencies that could have derailed the listing before giving the approval. Nevertheless the JSE gave their approval subject to the listing committee meeting. The process is backhanded, which is a view that Williams is in agreement with. The approval of the powerful listing committee should have been done ahead of the IPO and not after, with the JSE executive to ensure that administratively all the post-IPO conditions were met.

The Rules | The preamble to the rules states: For the purposes of initial admission, an eligible company shall issue its participating voting shares by way of an initial public offering in accordance with the requirements set out in Rule 502.

Section 502 states: An eligible company shall, for the purposes of its initial admission, issue participating voting shares by way of an initial public offering subject to a prospectus seeking a minimum subscription of new shares (or allotment of existing shares) of not less than J$50 million and not more than J$500 million only.

Rule 501 Minimum Requirements differs from 502 with the former saying: No request for the initial admission of any eligible company will be considered by the JSE unless the eligible company has demonstrated to the satisfaction of the JSE that, following its initial public offer:

It has not less than 25 participating voting shareholders who hold, in aggregate, not less than 20% of the fully paid, subscribed participating voting share capital; and
The fully paid, subscribed participating voting share capital is not less than J$50 million and not more than J$500 million, and such capital is fully paid.

Discretion of the JSE | (a) Initial admission of any eligible company to the Junior Market shall be in the absolute discretion of the JSE. (b) For the purposes of (a) above, the JSE may waive or supplement the provisions of certain of these Junior Market Rules as it sees fit.

In summary, the JSE had the power to use the discretionary clause with conditions for the company to increase the issued capital.

Image courtesy of StuartMiles/FreeDigitalPhotos.net

Filed Under: Company News, General Business News, Initial Public Offers, JSE Main Market, Stock Market Tagged With: JSE Company, Knutsford Express

Buy Rated: H&L up 74%

January 3, 2014 by IC Insider.com

Friday, 3rd January 2013 | The Buy Rated list counts another major winner! This time Jamaica’s Hardware & Lumber closing at $8 up from $5.10 last week for a 74 percent gain since selection.

The stock is a recovery opportunity with the price falling sharply to a low of $3 in 2012, flowing from losses incurred after hitting hard times post-2008 and 2009 and poor profits in 2011 and 2012. With the potential for them to earn $2 per share for 2013, Hardware & Lumber stands a good chance of reaching $20 this year.

Junior Market stock, Access Financial Services, which was moved to a Market Watch, gained this week and ended up at $12.20 up from $12 last week. Caribbean Producers continues to produce gains climbing to $2.70 this week, up from $2.65 to register gains of 33 percent since elevated to the list.

Pan jam moved up to $54 at the end of the week and now shows positive gains, Jamaica’s Scotia Group moved to $20 this week from $19.06. Caribbean Cement also gained this week to end at $3.50 and so did Jamaica Broilers that closed at $4.61 up from $4.51.

On the Trinidad Market, First Citizens was put back on the Buy Rated list, the price closed this week at $40.63 and should be heading into the $50 region before too long.

Related posts | H&L – big profits boost | Access moved to Market Watch

Image courtesy of Tungphoto/FreeDigitalPhotos.net

Filed Under: Company News, JSE Main Market, Stock Market, TTSE Market Tagged With: TTSE

Trinidad PE moving slowly

January 3, 2014 by IC Insider.com

Friday, 3rd January 2013 | The only significant movement to take place during the week on the Trinidad Stock Exchange is the continued rise in the stock price of First Citizens but that had little effect on the potential gains for the company as shown on our PR Chart. The stock closed the week at a record $72.61 price.

For others that had gains during the past week, the movements were even less impactful on potential gains. Trinidad Cement’s gain during the week helped to reduce the gains going forward while Republic Bank keeps inching up but still has much room to cover before it becomes fully valued.

By the looks of the IC Insider PC Chart to start off the New Year, the Trinidad market is poised to enjoy another year of healthy gains for some stocks.

The Top Stocks with potential gains by PE Ratios are Trinidad Cement leading with 291%, Berger 206%, Guardian Holdings 202%, National Flour 178%, Neal & Massy 133%, Point Lisa 116%.

Stocks with less than 100% potential gains are Republic Bank, OC Media, Prestige, Agostini and Citizens Bank, who has given investors over 96% gains (including dividends) in the 5 months since listing as an IPO in August, 2013.

Filed Under: Company News, Stock Market, Stocks to watch, TTSE Market Tagged With: PE Ratios, TTSE