Kingston Properties buys Cayman

January 11, 2017 by

One of Kingston Properties units at Red Hills Rd, Kingston

Kingston Properties (KPREIT) completed the acquisition of a fully tenanted, mixed use building located in the West Bay Beach South area in the capital of the Cayman Islands.
“The building comprises offices, retail outlets and residences along the famous Seven Mile Beach corridor, an area that has seen significant infrastructure improvements, as well as new luxury resort and condo developments over the last three years,” KPREIT disclosed.
“This acquisition represents KPREIT’s first foray into the Cayman Islands, which is a country with a per capita GDP of USD58,856 and one of the leading financial centres of the world, offering a tax free environment with no property, income, corporation or capital gains taxes. GDP growth for the first half of 2016 is put at 3% on an annualized basis with unemployment of 3.9%.
KPREIT in their release to the Jamaica Stock Exchange indicated that “The fundamentals in Cayman are expected to continue to improve based on the growth in the Special Economic Zone near the South Sound, planned expansion of the International Airport, construction of a new cruise ship pier in Georgetown, expansion of the highway in the general West Bay Road area, along with continued resort and condo developments along the Seven Mile Beach corridor”.
“This acquisition is part of our strategy to continue to broaden our geographic reach as well as diversify the mix of property types in our portfolio. In addition, this continues KPREIT’s philosophy of multi-tenant rental properties as a means to mitigate vacancy risk, as well as hard currency rentals as a hedge against devaluation,” the KPREIT release stated.

C&W CEO Gary Sinclair and also chairman of Kingston Properties

For the nine months ended September 2016, KPREIT posted profit after-tax and comprehensive income of $131 million and $180 million, respectively. In the previous year, losses of $51 million and a loss in comprehensive income of $28 million, were incurred respectively, for the same period. The
For the third quarter 2016, group profit amounted to $14.0 million compared with a loss of $4.5 million for the similar period in 2015. Total comprehensive income for the quarter increased from $5.8 million in 2015 to $25.4 million in 2016. Higher rentals, net finance income and foreign currency translation gains in 2016 were primary drivers of the improved performance.
The group’s Investment Properties valued increased 56 percent to $1.93 billion at September last year, but mostly from acquisitions.
Kingston Properties which trades on the Jamaica Stock Exchange closed on Tuesday at $9 with 11,779 shares trading.

Filed Under: Company News, General Business News, Real Estate, Stock Market Tagged With: ,

Cemex hikes offer for TCl shares

January 10, 2017 by

Trinidad Cement shares in play.

CEMEX today announced that its indirect subsidiary, Sierra Trading (Sierra) is amending the offer that was presented on December 5, 2016 to shareholders of Trinidad Cement (TCL), to acquire up to 132,616,942 ordinary shares in TCL.
If acquired together with Sierra’s existing share ownership in TCL of approximately 39.5 percent, would, result in Sierra holding up to 74.9 percent of the equity share capital in TCL.
Sierra will increase the offer to TT$5.07 in cash for each TCL’s share from $4.50 previously, a price that Ernst & Young said was inadequate and rejected by the directors. It is unclear if the revised offer will be found to be palatable to the directors and shareholders. The prospects for the company appear to be such that a much higher price may well be warranted.
Among other conditions, the Offer, as amended by the Amended Offer, will be conditional on Sierra acquiring at least an amount of TCL shares that would allow CEMEX, for financial reporting purposes, to consolidate TCL. Unless extended, the Offer period, as amended by the Amended Offer, is expected to close on January 24, 2017 at 3.00 p.m. Trinidad and Tobago time. Sierra does not currently expect to extend the Offer period after January 24, 2017. All other terms and conditions of the Offer not modified by the Amended Offer remain unchanged.
If the Offer, as amended by the Amended Offer, is successful, TCL will continue operating as usual. Additionally, TCL will be maintained as a publicly listed company on the Trinidad and Tobago Stock Exchange with the benefit of a strong local shareholding together with the enhanced benefit of proven management and operational expertise from CEMEX.
TCL’s main operations are in Trinidad and Tobago, Jamaica and Barbados. TCL is the majority shareholder of Caribbean Cement Company Limited (“CCCL”), a main cement producer in Jamaica.
As of September 30, 2016, TCL and its subsidiaries had EBITDA of approximately US$77 million for the last twelve months, net debt of approximately US$113 million, representing a net financial leverage of approximately 1.5x the Cemex release stated.
CEMEX is a global building materials company that provides high-quality products and reliable services to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.

Filed Under: Company News, General Business News

Five for one stock split for AMG

December 17, 2016 by

AMG Packaging to split stock by 5.

AMG Packaging to split stock by 5.

AMG Packaging directors agreed a stock split, for each ordinary share of the company to be subdivided into five units. The matter is to be decided at the upcoming annual general meeting of in January.
The move by AMG continues a trend that has been seen since Lasco companies split their stocks 10 units for each one issued in 2013, continuing with Jamaican Teas early in 2016 and a string of others since, which have all helped in increasing the value of the shares. Investors are betting that the same will happen here as they responded to the announcement on Thursday, driving the price up by $3 in exchanging 7,999 shares at $21.50. The announcement confirms an earlier report by IC Insiders’ that the company was set to split the stock.
For investors to benefit fully from a rising stock price, the company will need to improve on its 2016 results of $83 million or 81 cents per share, with the start-up of the tissue operation, dragging profits down by $41 million as a result of start-up and operating cost and sales of tissue paper of only $2.3 million.
If approved at the Annual General Meeting, the issued capital of the company will move from 102,378,857 shares to 511,894,285 with the authorised capital jumping from 140,000,000 shares to 700,000,000. The split is to allow for greater liquidity in the shares as the stock has been trading infrequently.
The 2016 results saw a major improvement in cost of sales which fell from $483 million to $451 million and includes cost of inventories expensed of $320 million and $380 million in 2015. The cost of inventories recognized as an expense includes $33 million and in 2015, $54 million in respect of write -downs of inventories to net realisable value.

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

Main Event IPO within 2 weeks

December 16, 2016 by

Main Ev SignWith revenues posited to be in the range of $1 billion to $1.5 billion for 2015, Main Event Entertainment should be coming to the public within two weeks subject to Financial Securities Commission effectively signing off on the prospectus.
The company is expected to raise between $100 million to $200 million at a price between $1.50 and $3.50, stockbroker for the deal, Gary Peart of Mayberry Investments told investors at a briefing today. IC Insider gathers that the amount to be raised, is likely to be $150 million, putting the PE ratio in the 10-12 range.
According to Peart, the valuation for the company is in the range of $500 million – $700 million. Between 20 to 40 percent of the shares will be offered in the IPO. Proceeds of the issue will be used to expand services particularly to Montego Bay where Solomon Sharp, Chief Executive says has a big market for his products and services. Funds will also be put into new equipment to meet increasing demand. According to Sharp, demand is such that they have had to turn away business. The additional equipment will allow for more business to be undertaken simultaneously.
Main Event Entertainment Group, a unique company that is in the business of management of event as well as producing their own production. The company provides event management, production, audio, video, lighting, staging, roofing, power supply, digital signage and management, concept development, creative development, infrastructural build-outs.

Three of the company's directors

Three of the company’s directors

The company generates revenues from Digital boards spread across 22 countries in the Caribbean some a few Central American countries mostly for screens in Digicel stores with more than 100 screens for which they generate up US$225 for month for maintaining and updating them. They also supply and service menu boards for other entities with the latest to sign on being Wendy’s on board, the company provide outdoor signage in the form of advertising billboards.
The principals include Solomon Sharpe, CEO and formerly of Desnoes and Geddes, Richard Bair, Chief Operating Officer, formerly employed at Porter Brothers and Donna Waithe, Director HR and Administration with 23 years of experience in the aviation sector at Air Jamaica. The company was established 2004 and employs between 51 and 200 full time and part time employees.
The Board of directors include Hugh Graham, Solomon Sharpe, Donna Waithe, Richard Bair, Tania Waldron-Gooden, Harriat Maragh, chairman and Dr. Ian Blair.
The company have as its clients many blue chip Jamaican companies, including Scotia Group, National Commercial Bank, Flow, Desnoes and Geddes to name a few.

Filed Under: Company News, Initial Public Offers, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , ,

Scotia hikes dividend on profit rise

December 7, 2016 by

Jackie Sharp - CEO Scotia Group

Jackie Sharp – CEO Scotia Group

Scotia Group raises dividend with the Board of Directors approving a final dividend of 45 cents per stock unit in respect of this financial year, which is payable on January 18, 2017 to stockholders on record as at December 27, 2016.
The proposed payment brings the total payment for the year to $1.71 and represents a 6 percent increase in dividends year over year and a dividend payout ratio of 47.08 percent of profit. The final payment means that the 2017 payout should be no less than $1.80, with the proposed payment setting the stage for future quarterly payments. Scotia Group released results with earnings per share ending at $3.63 compared to $3.19 for 2015.
At the same time Scotia Investments held dividends at 45 cents per share the same amount they have been paying in recent times although the company report net profit of $1.35 billion for the year ended October compared with $1.02 billion for the prior. The 2016 profits rose by 32 percent or $325 million net income of $537 million for the quarter ended October, up from $288 million the quarter ending October 2015.
Strong gains of $527 million in fee income, foreign exchange trading gains and gains on financial assets were the main contributing areas that gave rise to the increased profit for the year, for Scotia Investments with earnings per share of $3.19.

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

General Accident in Blue Power out

December 5, 2016 by

Blue Power leaves TOP 5.

Blue Power leaves TOP 5.

General Accident Insurance dropped in price during the week to be back in the junior market TOP 5 pushing Blue Power just out of the TOP 5, as demand pushed the latter up to $23 as the company reported strong increase in profit for the second quarter to October.
Blue Power has sales for the quarter ended October 2016 increasing of $42 million or 14 percent to $339 million over the October 2015 period, while profit for quarter profit jumped 146 percent over the 2015 quarter to $32 million. For the half-year, profit more than doubled to $70 million from $32 million with earnings per share of $1.23 as revenues climbed just over 13 percent to $678 million.Top 5 stks 2-12-16
Jetcon Corporation that fell out of the top list in the week ending November 18 continues to climb away from the top list with gains during the past week. Barita Investments exited the TOP 5 during the week ending November 25 and has gone on the record further gains during the past week, as investors continue to react positively to the prospects for an outstanding 2017 based on the strong gains in net interest income and fee income for the stockbroker’s September quarter. These two stocks are up 64 percent and 77 percent respectively since they entered the Top 5 in September. Paramount Trading exited the TOP 5 and now has gains of 164 percent.

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

Key Insurance in at top of TOP 5

November 20, 2016 by

Key Insurance listing ceremony.

Key Insurance listing ceremony.

Key Insurance climbed into the Top 5 of the IC Insider’ junior market list, at the number one spot. The rise came about as a result of a turnaround in the company’s September quarterly results, to overcome a drag the losses reported in the June had on the profit and the stock price.
IC Insider’s forecast is for earnings per share of approximately 35 cents for 2016, for Key, suggesting the potential for a big rise in the stock price. It is noted that the only offer for the stock is 34,688 at $3.50 with the highest bid at $2.15 to buy 40,700 shares.
Jetcon Corporation has fallen out of the Top five due to a combination of a rise in Jetcon’s price, following strong third quarter results and the ascension of Key Insurance to the list. Access Financial that has been in the TOP 5 for a long time also reported strong increased profit, with a hike of 95 percent for the September quarter and a 60 percent rise to $353 million for the six months to September.
Barita could be the star performer from the TOP 5 main market stocks as demand has come in for the stock, while supply has declined.IC Top 5 18-11-16 While the investment bank reported 54 cents per share for the full year to September, earnings from ongoing operations is more like 65 cents per share. Most importantly, the information that says the stock is an outstanding buy candidate, is the quality of the final quarter results, with strong growth in fee income and net interest income and less reliance on investment and foreign exchange gains. The final quarter results, suggest earnings should end up around $1.50 in 2017. JMMB Group came in with big increased earnings, one off gains may have played a big role in the big increase but even without that, the stock is undervalued with earnings from ongoing operations in the $2 range.

Filed Under: Breaking News, Buy Rated, Company News, Stocks to watch Tagged With: , , , , , , ,

Mayberry’s latest stock picks

November 19, 2016 by

MILMayberry Investments released their most recent recommendations for 6 Jamaica Stock Exchange listed stocks that they say are BUYS and their closing prices for 19th November.
The stocks selected are considered undervalued by Mayberry and are shown with earnings and PE ratios and comprise:• JMMB Group: $13.91 per share – P/E ratio 7.31 • Jetcon Corporation: $4.97 per share – P/E ratio 12.18 • Jamaican Teas: $4.10 per share – P/E ratio 10.73 • Sterling Investments: $15.50 per share – P/E ratio 8.34 • General Accident Insurance: $3.06 per share – P/E ratio 6.20 • Pulse Investments: $3.90 per share – P/E ratio 4.21
Mayberry indicates, that recent stock splits provide additional buying opportunities as stocks are more liquid and list the following as the candidates to benefit from stock splits.
Paramount Trading, Jamaica Stock Exchange, Cargo Handlers, EPPLEY Limited that will split the it’s $735 priced stock into 150 units, to take effect from the opening of trading on Thursday, December 1.
The Mayberry report also states that company developments that are positive, include the granting of commercial banking licence for the JMMB Group, Initial Public Offerings (IPO’s) to come within the next 3 months that will provide opportunities for new Investments as well as expansion plans at Honey Buns and National Commercial Bank’s record profits.

JMMB is one of 6 stocks identified by Mayberry as BUYS.

JMMB is one of 6 stocks identified by Mayberry as BUYS.

IC Insider’s view the top six selection a good choice, with some listed in IC Insider’s TOP 5 selection. the Mayberry’s selection seems to focus on historical or trailing earnings and could result in missed opportunities for investors. Jetcon’s PE is put at 12.18 which may be consider relatively high, suggesting that full year earnings would be 40 cents per share. Nine months earnings before tax is at that level, hence the PE seems overstated. Jamaican Teas earnings from continuing operations is 44 cents, with the stock priced at $4.10 the PE is around 9 and Pulse appears lowly valued but may require a lot of convincing of the market that that is the case, with a lot of its profit coming from real estate valuation gains and bartering arrangements.
Stock splits, create more liquidity in the stocks of companies that undertake them. Investors in the Jamaican market have driven most of the stocks that have split to full valuation and pushed the vast majority to be amongst the highest valued on the market.

Filed Under: Breaking News, Company News, Stocks to watch

Paramount in Top 5 stocks to avoid

November 19, 2016 by

Paramount Trading is selling at a PE of 17 & is now in the TOP stocks to avoid for now.

Paramount Trading is selling at a PE of 17 & is now in the TOP stocks to avoid for now.

In a market that has stocks selling well below those with the highest valuation currently, based on 2016 earnings, investors should be focusing on stocks with lower valuations and avoid for now, the more pricy ones.
In certain cases it is not that some of the highest valued stocks will not perform well going forward. This may not be the time to buy them, as they are likely to underperform the overall market. A look at the performance of the TOP 5, reflects the situation very well.
Paramount Trading that has now entered the list to avoid, is the sole change, with Key Insurance moving out with recovery in profits in the September quarter. Paramount is the IC Insider’s TOP 5 best performer, rising with a gain of 181 percent since it entered the TOP list in September. Others to score big are, Access Financial Services with gains of 63 percent, Derrimon Trading up 58 percent, General Accident 50 percent followed by Jetcon with gains of 49 percent. Top 5 to avd 18-11-16In the main market Barita Investments is up 45 percent JMMB Group is up 38 percent and National Commercial Bank rose 27 percent. The stocks in the list to avoid have hardly moved in contrast to the TOP 5 selections with the best gain being 38 percent with the next best being Kingston Wharves with 7 percent.
With expansion plans, Honey Bun and Paramount could enjoy a good 2017, the stocks of the companies may take some time to really pay off, if bought now. With Honey Bun into its new fiscal year, first quarter results due by February 2017, could be strong and therefore be a fuel for higher price. Investors should keep their eyes on 2017 as the current year winds to a close and next year having much opportunities for profitable investment, and what may appear pricey now could be attractive in 2017 as companies enjoy more growth.

Filed Under: Company News, Feature Stories, Stocks to watch Tagged With: , , , , , , ,

Juniors market trading picks up – Friday

November 18, 2016 by

ICI Jm indx 7-11-16 The junior market index fell 7.64 points to end at 2,464.10 on Friday as the prices of 10 stocks rose and 5 declined with 17 securities trading. The gain for the junior market index for the year to date remained at 38 percent.
The volume of stocks traded dropped sharply on Friday with the volume jumped sharply by 165 percent from Thursday’s level and ending with just 1,589,420 units changing hands, valued at $7,836,091, up 239 percent from $2,314,012 on Thursday.
Market activities ended with 9 securities closing with bids higher than their last selling prices and 4 ending with lower offers.
An average of 93,495 units with an average value of $460,947 traded, compared to 50,000 units with an average value of $192,834 on the preceding trading day. ICI Jm sum 18-11-16The average for the month to date is 129,584 units for an average of $756,133 compared to 132,360 units valued at $778,840 on Thursday and 129,138 units with an average value of $709,705 for October.
In trading activity, AMG Packaging rose $1.10 and closed with 25,000 units changing hands at $20.10, CAC2000 traded 1,600 shares at $4.11 after gaining 11 cents, Cargo Handlers gained 20 cents and closed with 7,320 shares changing hands at $7.80, Caribbean Cream with 225,000 shares changing hands, lost 10 cents to close at $7.20. Caribbean Producers traded 476,500 shares to end with a gain of 18 cents at $3.48, Consolidated Bakeries rose 20 cents in trading 3,055 shares to close at $2.40, General Accident rose 5 cents and closed trading with 32,073 units at $3.15, ICI Jm trds 18-11-16Honey Bun with 38,833 shares changing hands, added by 20 cents to end at $6. Jamaican Teas traded 4,000 shares and rose 20 cents to close at $4.10, Jetcon Corporation traded 46,554 shares to close at $5.20, Key Insurance traded 1,300 shares and closed at $2.15, Lasco Distributors declined 50 cents and ended with 30,761 shares trading at $6.50. Lasco Financial fell 20 cents and ended with 77,603 shares changing hands at $3, Lasco Manufacturing closed at $4.80 with 512,207 shares changing hands after falling 10 cents. Medical Disposables traded 50,000 shares to close with a loss of 53 cents at $4.25, Paramount Trading rose 10 cents to end at $3.95 with 27,614 shares changing hands and tTech climbed 65 cents and ended with 30,000 shares changing hands at $5.75.

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