Quick about turn at Key Insurance

November 16, 2016 by

Natalia Gobin-Gunter Chairman and Deputy Managing director inserting name strip to indicate listing of Key Insurance on the junior market.

Natalia Gobin-Gunter Chairman and Deputy Managing director inserting name strip to indicate listing of Key Insurance on the junior market.

Key Insurance recovered from a loss of $21 million in the June quarter to a profit of $84 million in the September quarter, up from a loss of $284,000 in the 2015 third quarter and also reversed the loss in the six months to June this year of $18 million.
The second quarter was negatively affected by an Insurance claims of $747 million compared to just $82 million in 2015 for the same period. In the September quarter the insurance company benefited from a positive turn around for claims.
The claims experience in the second quarter forced the company’s management to review the insurance claims and reserves quarterly rather than annually in the past. The end result is that claims seem to be back to normal in the third quarter with a net recovery in claims of $228 million as opposed to an expense of $193 million expensed in 2015.
Nine months profit ended at $66 million compared to $68 million for the 2015 period and seems set to reach $120 million for the full year, for earnings per share of 35 cents. At this level of earnings, the stock has a PE of 6, the lowest in the junior market.
Key generated net premium income of $166 million up 25 percent over 2015 and $451 million for the nine months, an increase of 28.5 percent. Administrative expenses rose from $77 million in the 2015 third quarter to $100 million in 2016 and for the nine months to $281 million from $220 million.
The stock last traded at $2 on the junior market of the Jamaica Stock Exchange.

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Cargo Handlers updates results

November 14, 2016 by

CAR H 2015-06-26Cargo Handlers updated their results for the full year to September following IC Insider’s posting of a report that the company reported results with errors relating to the number of shares used to compute earnings per share.
Cargo Handlers posted their full year profit of $154 million after tax, up from $136 million in 2015 and $30 million for the fourth quarter versus $29 million in 2015. The company originally reported earnings per share as 40 cents for the quarter and $3.30 for the 12 months, based on what they showed as a weighted average number of shares held during the period.
The company split its stock into 10 units for each one held, subsequent to the year-end and would not result in computing the average number of shares in issue. With a stock split or stock bonus the earnings per share is to be computed on the full amount of shares issued at the time of the financial report and the historical earnings per share would be revised based on the new issued shares in issued.
The updated report now shows earnings of 79 cents per share for the last quarter and $4.11 for the full year. The company’s stock last closed at $11.80 on the junior market of the Jamaica Stock Exchange.

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Grace out JMMB in TOP 5

November 14, 2016 by

Grace Kennedy is out of the TOP 5 list having released nine months results with earnings that are lower than what was previously indicated from the six months results. The stock is replaced with JMMB Group that is on at number 5 in the main market with potential gains of 134 percent.
Access Financial has moved to the top of the junior market listing. The company has not yet posted results to September but results for Proven Investment show that its associated company, Access’ profit in the September quarter is up 80 percent and 50 percent for the six months, an indication that IC Insider’s forecast for earnings Top 5 stks 11-11-16of $3 for the year is on target. The other stocks have held their respective places but with Jetcon price rising during the past week to $5 from $4.51.
Barita Investments reported earnings of 54 cents per share but it’s more like 65 cents from ongoing earnings, more importantly, ongoing earnings in the September quarter is of the order of 37 cents or close to $1.20 annualised. The investment company made more money from fees and interest income and less on investment and foreign exchange gains than in the past.

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Seprod profit up & dividend jumps

November 14, 2016 by

Seprod announced a dividend of $2.63, driving the stock to a new 52 weeks' high of $30.

Seprod announced a dividend of $2.63, driving the stock to a new 52 weeks’ high of $30.

Seprod looks set to pay out all of their 2016 profit in dividend in November, with a payment of $1.36 billion. Chairman Paul Scott told IC Insider that the payment was due to gains made from the sale of shares previously held in Grace Kennedy, giving rise to investment gains of $874 million to September.
The board approved a big pay out of two dollars and sixty-three cents ($2.63) per share on November 28, to all shareholders on record as at November 18. The stock will trade ex-dividend on November 16. The dividend will consume $1.36 billion of the company’s cash and investments which stood at $3.9 billion at the end of September.
Seprod reported profit before losses attributed to minority shareholders in its subsidiary of $127 million for the September quarter versus a loss of $66 million in 2015 and $943 million for the nine months period compared to $375 million in 2015. Earnings per share amounts to 39 cents for the last quarter and $2.09 for the nine months as sale revenues declined to $11.1 billion for the nine months from $11.2 billion in 2015 but with the last quarter rising by 10 percent to $3.5 billion.
According to Scott the future looks bright going forward. “We are breaking even in the sugar operations with 11,000 tonnes of sugar produced last crop, Seprod Group.
Seprod banking on growth in its dairy operations making big contribution to profit.

Seprod banking on growth in its dairy operations making big contribution to profit.

before interest charges and expectation of 16,000 tonnes of sugar being produced in 2017, which should be profitable,” Scott told IC Insider. There is also the expectation of higher price for sugar in 2017 than in 2016. The added tonnage if achieved could result in around $300 million more in revenues with most of it flowing to the bottom line of a The next three years should see a slate of new products being produced with the dairy operations being a major contributor to this thrust with the local and Caribbean markets being targeted. Seprod in it unassuming style quietly produced some of the better returns to shareholders of listed companies, in the last 5 or so years has seen profit stagnated with the tightness in the economy and gig losses in the sugar operation. Recent results and pick up in economic activity locally and with the rate of exchange of the Jamaican dollar having adjusted against the back ground of relatively inflation has given the company a competitive edge in a number of areas which it seems poised to take advantage of in growing the business.
The stock last trade at $27.50 on the main market of Jamaica Stock Exchange and looks like a buy for the further.

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Record profit for National Commercial Bank

November 11, 2016 by

NCB con springNational Commercial Bank ended its financial year to September with record profits helped by strong loan growth and big loan recovery of loans that were previously quarantined as doubtful.
The big Jamaican bank posted profit after tax and minority interest of $5 billion for an increase of 34 percent over the similar period in 2015 and a rise of 27 percent for the full year to $15.6 billion.
Earnings per share ended at $2.03 for the fourth quarter and $6.35 for the year. NCB recovered bad loan resulting in a positive flow of $291 million in the last quarter reducing the full year charge to $612 million compared to $1.8 billion in 2015.
Revenues net of interest expense rose 12 percent to $13.6 billion for the quarter and 9.6 percent to $52 billion for the full year. Net interest income grew 8.3 percent for the year to $28.1 billion. NCB results of a boost from Associated company profit, that rose from $122 million to $443 million in the September quarter and to $832 million from $434 million in 2015.
Loans, the critical contributor to revenue growth grew a strong 14.3 percent for the year to reach $189 million while investment securities declined modestly.
The group declared a dividend of 90 cents per share bring the full year payment to $2.25. The stock which remains IC Insider Buy Rated, last traded on the Jamaica Stock Exchange at $45.50 and is in strong demand with limited supply.

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JSE feeds public with erroneous info

November 9, 2016 by

CAR H 2015-06-26 001Jamaica Stock Exchange is one of Jamaica important financial institutions. It is responsible for billion of dollars of investments. Investors rely on it to be transparent and to provide accurate and timely information on which investment decisions can be made. Why does the feed the public with erroneous information, and leave it out in the public without moving speedily to correct same?
Cargo Handlers posted their full year results to September, with profit of $154 million after tax, up from $136 million in 2015 and $30 million for the fourth quarter versus $29 million in 2015.
All of the above is fine but the company is reporting earnings per share as 40 cents for the quarter and $3.30 for the 12 months, based on what they have erroneously claimed are based on the weighted average number of shares held during the period. That of course is nonsense. The company split its stock into 10 units for each one held, subsequent to the year-end, hence there were no additional shares issued up to September. Even if the stock split occurred during the financial year, the split would not give rise to computing the average number of shares in issue. With a stock split or stock bonus the earnings per share is to be computed on the full amount of shares issued at the time of the financial report. Only when fresh capital is introduced from outside the company, would the weighted average number of shares be computed.
JSE signThe earning per share is in fact 80 cents, for the 2016 last quarter and $4.16 for the 12 months. Unfortunately, the Stock Exchange posted the results with the error from Monday and they are still on the website with no change to date and no note to inform investors of the error. If the Jamaica Stock Exchange wants to be taken seriously it needs to do better than this.
Cargo Handlers last quarter’s net position flowed from a 17 percent rise in revenues to $78 million and 29 percent increase for the full year to $324 million. Other operating expenses rose 19 percent for the quarter to $39.8 million and for the full year 28 percent to $132 million.
The numbers may not show it fully, but growth may have slowed considerably, as such growth in profit in the medium term could be quite moderate as can be gleaned from the movement in the quarterly results. At a price of $12 per share, with 375 million units issued the stock price is a tad rich currently with one of the highest junior market PE ratios at 30 times the 2016 earnings. Expectations of investors in the stock have to be that the December quarter’s earnings will rise close to 50 percent, to justify the current price. That level of profit increase looks steep.

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Sagicor Group profit climbs 49%

November 6, 2016 by

Sag bnk logoSagicor Group net profit attributable to Stockholders jumped 49 percent to $3.1 billion for the September quarter and 27 percent to $7.39 billion for the nine-month to September, over the similar period in 2015.
Improvement in realized gains from securities trading played a big role in the increased profit with investment income rising 43 percent or $1.6 Billion in the quarter to $5.5 billion and a rise of 20 percent or $2.6 billion to $15.56 billion for the nine months to September.
Earnings per stock ended at 79 cents for the quarter and $1.89 for the nine months compared to $1.49 in 2015 and could end around the $3 region by the end of the financial year. Return on average Stockholders’ Equity was 19 percent compared to 17 percent.
“Our core Insurance and Banking businesses produced good results. The overall performance was principally driven by good business growth across all lines, greater than expected capital gains on sale of securities and favourable benefits experience“, management stated in their report to shareholders.

Rose Hall hotel owned by Sagicor Real Estate fund

Rose Hall hotel owned by Sagicor Real Estate fund

Revenues for the quarter rose 25 percent to $16.3 billion versus $13.1 billion in 2015, for the nine months, revenues came in at $45.33 billion, better than prior year by 14 percent. Revenues include net premium income of $25 billion rising from $22.35 billion in 2015. Realized capital gains from securities trading of $3.29 billion, were substantially up on prior year.
Administrative expenses of $10.8 billion, were 13 percent more than in 2015, well below the rate of growth in revenues. “The cost increase was driven by higher staff costs, expenses relating to our expanded credit cards program and other non-recurring items,” management said in their report to shareholders. For the September quarter, administrative expenses rose 11 percent to $3.7 billion
Sagicor Group comprises a number of companies offering financial products and services, including life and health insurance; annuities; pensions administration; investment services; commercial banking; investments banking; captives management; property management and real estate sales and rentals.
The company shares are listed on the Jamaica Stock Exchange and last traded at $23.18 and is undervalued.

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JSE stock split effective today

November 4, 2016 by

Exchange placeJamaica Stock Exchange stock price will adjust at the commencement of trading this morning to take into effect the 5 for 1 stock split that was approved at an Extraordinary General Meeting held on October 25.
Record date for the stock split is November 8 but the ex-stock split date takes effect on November 4. At the close of trading on Thursday, the price the stock traded at was $27.90 and will result in an opening price of $5.58.
The stock split will result in an additional 561,000,000 ordinary shares will be listed, increasing the issued shares from 140,250,000 to 701,250,000.
JSE reported of profit of $32 million for the June quarter versus $15 million in 2015 and $158 million compared to $102 million for the six months to June 2015. The improvement in net profit flowed from a 52 percent rise in revenues to $188 million for the June 2016 quarter compared with $124 million in 2015 and $525 million for the half year to June for a rise of 37 percent versus $382 million in 2015. Earnings per share for the half year ended at $1.12 versus 73 cents in 2015. The JSE had a big month of trading in August with some special trades that took place thus swelling the volumes and value to $6.6 billion for July to August compared to $6.5 million for the June quarter.

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Stock split consideration for Eppley

October 31, 2016 by

eppleyThe directors of Eppley Limited will meet on Thursday, November 10, 2016 to consider the payment of an interim dividend to stockholders and a stock split.
Eppley last traded at $735 on the junior market of the Jamaica Stock Exchange. Since listing in July 2013, the stock has traded infrequently, even after the number of issued ordinary shares, were increased this year, with the issue of additional shares by way of a rights issue. In May the company issued 487,703 new ordinary shares priced at $650 each, bringing the total ordinary shares outstanding to only 1,283,122 units.
Profit for the June 2016 quarter amounted to $29 million $40.5 million for the half year, up from $22.5 million for the six months to June 2015.
The company is primarily in the business of insurance premium and lease financing.

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10 for 1 stock split for Paramount

October 31, 2016 by

Paramount Trading - 10 for 1 stock split.

Paramount Trading – 10 for 1 stock split.

Shareholders of Paramount Trading (PTL) will see the number of shares they currently own, jumping ten times come mid November. Shareholders approved a resolution put forth by directors to split the stock into ten units for each one currently issued at the Annual General Meeting held on October 29.
The stock split will take effect from the opening of trading on Monday, 14 November 2016. The stock closed trading on the junior market of the Jamaica Stock Exchange on Monday at $24, if the price remains at the current level, the price after the split would end at $2.40.
Paramount reported lower profit of $15 million, down from $43 million in 2015 in its latest quarterly report, ending August, from increased sales revenues of $253 million versus $238 million in 2015. The company indicates that cost increased in the quarter in connection with rebranding and celebration for the company’s 25th anniversary celebration.
Paramount is expanding into the processing of lubricants in a joint venture with Allegheny Petroleum with the plant expected to be operational early in 2017.

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