In light of the news regarding Usain Bolt and other investors at Stocks and Securities, this publication reproduces an article posted in 2018 on ICInsider.com about the financial sector’s danger signs. The article warned of the tsunami that exists in the financial system that no one wants to deal with. The following article is reproduced for all to see the latest development is a clear indication that the Minister in charge must take on board directly to correct some bad practices in the sector so as to build a resilient and thriving sector.
All concerned should be pleased that good sense has prevailed and the Elite IPO has been put off for now, the IPO while they correct the errors in the prospectus, in keeping with this publication’s recommendation.
The matter brings to the fore once again, the inadequacy of capital market monitoring leaving investors with a false sense of security that they are led to believe.
Usain Bolt’s high rise on Halfway Tree Road
What are some of the facts? The rules for takeover on paper are meant to protect minority shareholders, in fact, they hardly do. Minority shareholders in many cases are not in a strong position to assess if they should or should not surrender their shares in a takeover bid. Worse the directors’ recommendations are fraught with problems. Most directors are not serious stock market investors and are not equipped to make a proper assessment of the company’s value in order to make a proper recommendation to shareholders.
A good example of this is the takeover attempts for all the shares of Berger Paints last year which was accompanied by directors’ report recommending acceptance of the offer and contained false information which was used to try and convince shareholders that they should surrender their shares. No one in authority seems to have called for proof of the information in the circular to support their view or asked to correct the error. Nor was the company required to provide shareholders with up to date financial information, which is not now a requirement but ought to be.
Cable & Wireless directors are recommending the sale of the shares to the majority owner but have not provided shareholders with results to December, last year or forecast earnings. There is no rationale for this critical information to be provided to valuators but not to the persons who count – shareholders. So Why have the shareholders not been given such pertinent information?
The C&W offer is being made at a time when the company’s fortunes have improved considerably and could end with a profit or small loss in 2017. From IC Insider.com assessment, the company is in a very good position to report a good level of profit in 2018 with interest cost set to fall by around $1 billion per year and revenues set to rise. Investors should get more information as to the 2017 results and forecast for two or so years to enable them to make an informed decision.
The marketplace has dealers who blatantly breach agreements with clients but no regulator in the sector does anything about it. So while the Minister of Finance is proud of the success of the Junior Market, he is unaware of the tsunami that lies just below in the system that he is minster over and one day could explode.
The volume of stocks traded jumped from 22,074,785 shares to 57,486,327 units on Wednesday at a value of $181,774,492 up from $73,296,318 on Tuesday.
Regency Petroleum with 2.73 million units for 4.8 percent of the market trades and Future Energy Source with 1.08 million units for 1.9 percent market share.
Derrimon Trading gained 28 cents in closing at $2.40 after 4,052,243 stocks crossed the market. EduFocal dropped 7 cents to $2.30 after a transfer of 25,568 stock units, Fontana shed 10 cents to end at $8.90 and traded 52,822 stock units, Fosrich rallied 5 cents in ending at $3.85 with a transfer of 33,707,094 shares, Future Energy Source rose 13 cents to close at $4.84 after an exchange of 1,079,496 stock units, Honey Bun rallied 22 cents to $7.22 after a transfer of 16,793 stocks. iCreate dropped 24 cents in closing at $1.87 and exchanging 42,550 units, Lasco Distributors lost 5 cents to close at $2.80 with 365,272 units changing hands, Lasco Financial declined 9 cents in closing at $2.80 as investors exchanged 34,650 stocks. Lasco Manufacturing advanced 25 cents to end at $4.20, with 10,295 shares crossing the market, Limners and Bards gained 11 cents in ending at $2.51 with an exchange of 40,773 stock units. 
MFS Capital Partners popped 64 cents to close at $3 in trading 110,688 units, Spur Tree Spices fell 14 cents to $2.96 after 282,184 shares crossed the exchange and Stationery and Office Supplies rallied $1 to end at $14 with the swapping of 22,328 stocks.
A total of 22,074,785 shares were exchanged for $73,296,318 compared to 27,627,621 units at $54,220,421 on Monday.
At the close, the Junior Market Index dropped 37.30 points to 3,818.73.
Caribbean Assurance Brokers advanced 30 cents to $2.15 with investors transferring 700 stock units, Fontana rose 21 cents to close at $9 with the swapping of 47,010 shares, Future Energy Source dipped 11 cents to $4.71 while 10,673,967 stock units passed through the market. Honey Bun climbed 35 cents in closing at $7 in an exchange of 34 stocks, iCreate increased 24 cents to $2.11 in switching ownership of 37,255 units, Indies Pharma gained 19 cents to close at $2.79 with an exchange of 61,150 stocks. Iron Rock Insurance popped 39 cents ending at $2.39 in exchanging 20,020 stock units, Knutsford Express dropped $1 to close at $8 after trading 8,063 shares, Lasco Manufacturing shed 30 cents to $3.95 while exchanging 4,009 units. Main Event advanced 10 cents to end at $9.60 as investors exchanged 10,095 units, MFS Capital Partners declined 79 cents in ending at $2.36, with 1,226,152 stock units crossing the market, Paramount Trading shed 17 cents in closing at $1.53 in trading 6,358 shares. 
Stationery and Office Supplies declined 30 cents, ending at $13 with an exchange of 21,568 stocks and tTech rallied 34 cents to $2.59 after exchanging 151 stocks.
Overall, 834,596 shares were traded for US$15,756 from 1,042,094 units at US$58,208 on Tuesday.
Proven Investments rallied 1.8 cents to 19.9 US cents after 24,457 stocks were traded, Sterling Investments gained 0.08 cents to end at 2.08 US cents in switching ownership of 5,000 stocks, Sygnus Real Estate Finance USD share rose 0.5 of a cent to 11 US cents with four shares crossing the exchange and Transjamaican Highway popped 0.08 of a cent in closing at 0.98 of one US cents with a transfer of 801,169 shares.
The All Jamaican Composite Index dropped 500.21 points to 406 374.06, the JSE Main Index fell 358.44 points to 355,737.49, the Junior Market Index shed 21.06 points to 4,099.20 and the JSE USD market Index popped 0.39 points to close at 212.41.
Investors should use the chart to help make rational investment decisions by investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The All Jamaican Composite Index dropped points to 408,537.02, the JSE Main Index fell 1,835.87 points to 357,666.75, the Junior Market Index shed 25.60 points to 4,116.34 and the JSE USD market Index slipped 1.87 points to close at 215.17.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The ICInsider.com PE Ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The All Jamaican Composite Index dropped 2,541,98 points to 407,422.08, the JSE Main Index rose 619.64 points to 357,814.48, the Junior Market Index dipped 3.86 points to 4,119.65 and the JSE USD market Index slipped 2.48 points to 202.32.
The ICInsider.com PE Ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
At the close of trading, the Main and USD Indices, Junior Market and the USD market all slipped moderately, with the JSE Combined Index falling 394.65 points to 395,090.66.
The ICInsider.com PE Ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.