Buy Rated: Some gains, some losses

October 6, 2013 by

Since we last looked at the performance of our IC Insider Buy Rated Stocks two weeks ago on 23rd September 2013, there have been some gain and losses. It’s been a full three months since we boldly started to ‘name names’ and now is the right time to do a full recap to see how we’re doing — or not!

Of the eleven Buy Rated stocks on the Trinidad & Tobago Exchange, only two are down, namely Guardian Holdings, off 5 percent and Neal & Massy 4 percent. Trinidad Cement is up 115% and still has room to grow based on its PE Ratio. First Citizens scored a whopping 52% for the short one month timeframe it made the list. Grace Kennedy is up 9 percent, JMMB 10 percent, Sagicor Financial 7 percent and Scotia Investment 6 percent.

So far, Buy Rated selections listed on the Jamaican market are not as successful with no gains to speak about. Meanwhile, Lasco Financial is down 19 percent and Jamaica Broilers is off by 14 percent.

It’s still early days yet. The Buy Rated selections are meant to identify stocks that will do well over the next twelve months. Short term pull backs are not negatives and are in fact buying opportunities for the serious investor.

BuyRatedgwthOct4

Related post | No change to Buy & Watch list | TTSE: PE ratio changes for the top 5 | Buy rated stock tracking

The IC Insider’s Buy Rated seal of approval is given to a stock that we believe is a compelling buy with earnings that are strong relative to the price and strong prospects of generating high price gains within the next twelve months.

Our research is backed by published reports of the company’s performance and insights of future earnings that can be found at ICInsider.com. The final decision to buy, or not, is your personal choice.

To find published reports for a Buy Rated stock on IC Insider, please choose the category ‘Buy Rated’ under Company News or enter the company name, in full or part at ‘Search IC Insider’.

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

JSE: Declining stocks hits advancing

October 4, 2013 by

Friday, 4th October 2013 | The Jamaica stock market closed down on the last day of the week as 11 stocks fell with 6 advancing resulting the market indices falling sharply. The JSE main index closed at 84,399.82, a decline of 640.92; the all Jamaica Index fell to 84,194.89 off by 1,127.68 and the junior market was down by 3.40 to 769.73. Trading volume climbed to 12,147,981 units but most were low priced Cable & Wireless and Gleaner Company stocks resulting in only $13,968,037 of trading.

Cable & Wireless landed 4,020,000 units as the price closed down a cent at 18 cents; Carreras exchanged 23,390 units to close down 90 cents at $45.10; Caribbean Cement chipped in with 167,905 units as it gained  cents to close at $2.20; Gleaner Company 6,900,078 units to close at $1.17; Jamaica Stock Exchange traded 20,000 units to close at the IPO price of $2.85; Mayberry Investments 10,738 $2.60; Sagicor Investments traded 15,000 units to close firm at $16.55; Sagicor Life 20,843 units at $9; Scotia Group 70,032 at $21; Jamaica Money Market Brokers 7.50% 100,000 units at $2; Jamaica Money Market Brokers 8.75% 70,000 $3 and Proven Investments 8% 39,650 $5.09.

JSEIndicesOct4Junior market | Dolphin Cove traded 27,141 units to close down 20 cents at $8; General Accident 35,000 units to close at $1.90, down 9 cents; Lasco Distributors gained a cent as 36,866 units changed hands to close at $1.49 and Lasco Financial Services traded firm as 436,543 units traded to close at $1.25.

 

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

Capital market developments

October 3, 2013 by

Access paying 16% for $102.5m | Access Financial, a junior listed company on the Jamaica Stock Exchange, is seeking to raise up to $102.5 million and will pay 9% per annum by way of unsecured notes due November 2014 to do so. The notes are priced at 97.99649% of the face value to yield 11 percent to maturity in November 2014, but the cost to the company is closer to 16 percent when all the cost of raising the funds, interest and the discount are taken into account.

The Invitation opens on Tuesday, 8th October 2013 and closes on Tuesday, 15th October 2013 subject to the right of the Company to shorten or extend the time for closing of the subscription list in the circumstances specified in this Prospectus.

AccessFinancialProductsAccess has been very profitable and will use to funds for working capital. Earnings for the six months to June, rose 34 percent to $119.59 million from $89. 38 million in the same period last year. Revenues, which was up by 13 percent in the first quarter, is up 18 percent in the second quarter over 2012 and up 16 percent year to date.

The results are coming off of a successful 2012 when it clocked up earnings of $238 million from an increase of 47 percent from revenues of $661 million.

Access Financial is an IC Insider Buy Rated stock.

Related posts | Access growth continues | No change to Buy & Watch list | Access Financial defying IPO critics

Image from Behance.net

Image from Behance.net

Jamaican Teas looking $200m | Junior market listed Jamaican Teas (JTL) is offering fixed and floating rate senior secured corporate notes due 2017 to raise up to $200 million at an initial rate of 8.5% for two years and variable thereafter until maturity. The note will be secured by way of a debenture creating a fixed and floating charge over the assets of JTL, subject only to existing registered security interests. JTL has applied to the Jamaica Stock Exchange for the notes to be listed for trading.

The offer officially opens on October 17 and is scheduled to close on November 7. The floating rate for each interest period shall be determined on each interest setting date, commencing on the first interest setting date and shall be equivalent to the 180 day WATBY plus a margin of 2.50%. Interest will accrue from the issue date and will be payable on the 30th day of each month until maturity on November 06, 2017.

JTL has the right to redeem the note after the expiration of two (2) years for the full principal value together with any accrued and unpaid interest thereon without penalty subject to 90 days written notice to note holders.

The company generated revenues, which climbed from $582 million in 2012 to $783 million in 2013 and should exceed a billion for the first time based on the year to June performance.

The company generated profit of $75 million for the nine months to June 2013 versus $65 million the similar period of the prior year, an increase of 16.2% and $24 million in the June quarter versus $22 million in the comparative period in 2012, an increase of 9.5%.

Related posts | Exports push Jamaican Teas’ profit | Jamaican Teas expands property arm | Jamaican Teas buys property | Profits up 19% at Jamaican Teas

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

JSE: Carreras rescued but can it last?

October 3, 2013 by

Thursday, 3rd October 2013 | Investors came to the rescue of Carreras stock in today’s trading as the price closed up by $3 to $46 from Wednesday’s $43 closing prices. Investors bought 44,019 units between $42.99 and $48 before allowing it to fall to $46, the last traded price for the day. The big question is the sustainability of the rise with few very active bids amounting to approximately 50,000 on bid between $42 and $46 with quite some supply below $49 or lower. The eagerness, or lack thereof, of investors to get out will probably determine where the price goes in the several weeks ahead of the next quarterly results.

The all Jamaica Index closed down by 506.35 to 85,322.57, the JSE index closed at 85,040.74, decline of 287.78 and the junior market was up 3.31 to 772.63, on a day when 12 stocks advanced, 5 declined and the prices of 10 remained unchanged. There was trading in 8,723,711 units with a value of $181,118,390.

Big Trades | There was big trades in Grace Kennedy 503,800 units closing at $56.50 for a total value of $28.22 million as the price held firm at 56.50; Pan Jamaican Investment 1.87 million units valued at $91.5 million as the price closed at $49 down by a dollar; National Commercial Bank trading 2,844,771 units with a value of $52.4 million to close at $19.33, up by 33 cents after falling as low as $18.11 shortly before the close. The bulk of the trades in Grace was a cross by one broker amounting to 500,000 units but those for Pan Jam and NCB were trades with third parties. This suggest that there is wider interest in owing stocks by large investors.

Cable & Wireless traded 499,886 units and close up a cent at 19 cents; Caribbean Cement gained 12 cents and closed at $2.20 with 39,159 units; Jamaica Broilers 125,847 units resulted in a close at $4.60, down 19 cents; Jamaica Money Market Brokers 190,000 closing at $8 up 20 cents; Mayberry Investments 5,000 at $2.70 up 10 cents; RJR gained 8 cents to close at $1.40 but with only 100 shares trading; Scotia Group traded only 24,563 and closed at 22.84 up $1.54; Supreme Ventures chipped in with 27,100 units and closed firm at $2.55; Proven Investments 8% had 909,000 units valued at $4,624,810 trading, as the price closed unchanged at $5.09.

JSEIndicesOct3Junior market | Blue Power 11,000 shares were exchanged at $9.30 down 20 cents; Caribbean Cream 48,174 units traded to close firm at $1; Cargo Handlers gained 70 cents to close at $13.70 with 6,005 units changing hands. Consolidated Bakeries 67,110 units changed hands 18 cents cheaper, to close at $1.21; General Accident Insurance had 81,100 units changing hands, the price closed at $1.99, up 14 cents; Jamaican Teas 553,636 units traded firm at $4; Lasco Distributors traded 17,000 units and closed at $1.48 up 2 cents; Lasco Financial Services traded up to $1.25 with a 4 cent gain as trading took place in 394,595 shares and Lasco Manufacturing chipped in with 382,839 units with the price falling to $1.52, down 3 cents.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed the market consolidating with bids for 3 stocks being higher and 4 stocks with offers lower than their last selling price.

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

JSE: Carreras sheds $3.61

October 2, 2013 by

Wednesday, 2nd October, 2013 | The main market indices climbed on Wednesday, the third such increase in as many days. Will these gains hold? The all Jamaica Index closed up 489.46 to 85,828.92, the JSE index closed at 85,328.52 for an increase of 278.18 and the junior market was down 4.72 to 769.32.

Scotia Group accounted for the bulk of the increase as the stock traded as high as $22.99 during the day but closed at $21.30 at the end of trading with 718,222 units. On a day when 4 stocks advanced and 8 declined there was trading in 4,123,904 with a value of $51,473,251.

Main Market | Cable & Wireless traded 525,000 to close at 18 cents. Carreras got hit again as news broke that sales are down 25 percent after the smoking ban was introduced, but investors failed to note that the figures represented an improvement over the 30 percent drop in the period prior to the ban due to overstocking by traders who made purchases to beat a price increase earlier in the year. The stock traded 8,031 units, helping to pull the closing price down to $43, a $3.61 fall. Gleaner Company had a small trade of 40,320 shares and closed firm at $1.21; Grace Kennedy closed up 50 cents to $56.50 with 81,795 units; Jamaica Broilers 31,404 units help the price to close at $4.79, costing it a cent from Tuesday’s close; Kingston Wharves  exchanged 23,144 to close a cent up at $6.02; Mayberry Investments 59,519 units traded firm at $2.60; National Commercial Bank traded 329,585 and closed unchanged at $19; Pan Jamaican Investment 23,798 units traded firm at $50; Sagicor Life 115,633 units helped in adding 4 cents to the price to close at $9.05; Seprod traded 1,399,582 shares to close at $14, down 50 cents.

JSEIndicesOct2Juniors | Trading in the junior market was sparse as Caribbean Producers had a volume of 152,977 units trading to close at $2.08; Lasco Distributors had just 12,582 units and closed firm at $1.46; Lasco Financial Services had 201,720 units in closing unchanged at $1.21 and Lasco Manufacturing traded 336,000 to close firm at $1.55.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed the market consolidating with bids for 3 stocks being higher and 5 stocks with offers lower than their last selling price.

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

Insider Trades Aug to Sept 2013

October 2, 2013 by

Updated 2nd October, 2013

Scotia Group Jamaica advised that under the Employee Share Ownership Plan, a senior officer acquired 10,171 SGJ shares and two senior officers withdrew a total of 79,563 SGJ shares in September. The company also advised that a senior officer of Scotia Investments Jamaica Limited purchased 51,000 SGJ shares on September 26, 2013.

The Gleaner Company Limited advised that a senior manager sold 100,000 shares of the company on September 26, 2013.

Mayberry Investments Limited advised that a related party purchased 50,435 of the company’s shares during the period October 1 – 2, 2013.

Ansa McAL Limited informed the Trinidad Stock Exchange that on September 20, 2013 a major shareholder connected to a Senior Officers purchased 32,167 of the company’s shares.

Jamaica Money Market Brokers advised that a related party sold 1,359,300 JMMB shares on September 30, 2013.

Mayberry Investments advised that a related party purchased 4,732 of the company’s shares on September 30, 2013.

Mayberry Investments advised that a related party purchased 67,230 MIL shares during the period September 20 – 24, 2013.

Scotia Group Jamaica advised that a senior manager purchased 4,500 SGJ shares on September 19, 2013.

Jamaica Money Market Brokers Limited (JMMB) has advised that a related party sold 1,000,000 JMMB shares on September 20, 2013. A related party also sold 507,100 of the company’s shares on September 17, 2013 and another sold 122,639 shares on September 18, 2013. It also looks as if 8 million units of the company’s stock that was sold on Monday could be from insiders.

Mayberry Investments Limited advised that a related party purchased 13,000 of its shares on September 20, 2013

Blue Power Group Limited advised that a senior manager sold 40,000 shares on September 12, 2013

Scotia Group Jamaica Limited advises that a senior manager purchased 88,000 of the company’s shares under the Employee Share Ownership Plan on September 13, 2013 and that a senior manager sold 13,025 of the group’s shares under the Employee Share Ownership Plan on September 3, 2013.

Dolphin Cove advised that a Director bought 11,642 of the company’s share on August 27, 2013 and during the period August 27, 2013 to September 10, 2013, a director sold total of 31,500 of the company’s shares.

Mayberry Investments Limited advises that a related party purchased 17,152 shares on September 12-13, 2013 and a related party purchased 346,095 shares on September 10, 2013

Jamaica Money Market Brokers Limited advised that a related party sold 160,000 JMMB shares on September 9, 2013

Mayberry Investments advised that a connected party has bought a total of 42,550 of the company’s shares during the period September 4-5, 2013.

Jamaica Money Market Brokers advised that a connected party sold 1,000,000 of the company’s shares on September 5, 2013

Sagicor Investments Jamaica advised that a senior manager purchased 74,082 S shares under the S Stock Option Scheme on September 2, 2013

Jamaica Money Market Brokers (JMMB) advised that a senior manager purchased 2,597 JMMB shares on August 27, 2013 and that a connected party sold 300,000 JMMB shares on August 28, 2013.

Mayberry Investments advised that a connected parties has traded 90,739 MIL shares on August 29, 2013; purchased 106,728 MIL shares on August 28, 2013 and a bought a total of 3,040 during the period August 30, 2013 to September 2, 2013. They also advised that a related party purchased 33,386 MIL shares on September 3, 2013.

Jamaican Teas advised that a director sold 2,000,000 of the company’s shares on September 2nd and 3rd.

Mayberry Investments advised that a connected party purchased 106,728 of the company’s shares on August 28, 2013

Sagicor Investments advised that a senior manager sold 82,904 of the company’s shares on August 28, 2013

Jamaica Money Market Brokers advised that a senior manager purchased 2,597 of the company’s shares on August 27, 2013 and a related party sold 220,000 shares on August 20, 2013.

Jamaica Producers Group | Two related parties purchased a total of 653,240 shares on August 19, 2013. Also, a Director purchased a total of 500,000 of the company’s shares on August 14 and 15, 2013. Previously two Directors purchased a total of 290,287 of the shares between May 17 and 24, 2013. An interesting pattern is developing that worth watching.

Related Posts | JMMB big bump in profits | Profits up at Jamaica Producers | Q2 profit up strongly at Sagicor | Exports push Jamaican Teas’ profit

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

JSE: Trading up, will it last?

October 1, 2013 by

Tuesday, 1st October, 2013 | The Jamaica Stock Market started October in a spirited manner when the level of trading rose on Tuesday with 10,321,856 units trading valued at $95,698,771. Activity resulted in 32 companies stocks trading, with 9 stocks increasing in price to 5 that fell. The main market index climbed 550.14 to 85,050.34, the all Jamaica grew 967.97 to 85,339.46 and the junior market index was up 5.21 to 774.04.

The movement in the market on Tuesday is in line with the IC Insider comments that “eight of the stocks with higher bids are in the main market and could well result in a better start of the new month . . .”

Main market | A numbers of selected stocks in the main market had good volumes resulting in some price movements but that could well be related to portfolio realignment than an indication of greater market interest. Cable & Wireless had a volume of 20,644 units as the price remained unchanged at 18 cents; Caribbean Cement exchanged 17,741 units at $2.10, gaining 23 cents in the process; Desnoes & Geddes chipped in with 15,000 units and closed frim at $4.57; Jamaica Producers had a good volume with 2,000,000 closing firm at $18.25; National Commercial Bank Jamaica 1,101,900 traded firm at $19; Sagicor Life’s 2,547,861 units helped to push the price up by 41 cents to $9.01; Salada Foods put in 100,560 shares to close firm at $8.50; Seprod’s 509,552 units help push the price up a dollar to $14.50; Jamaica Money Market Brokers 7.50% traded for the first time since listing last week as 499,000 units traded at $2; Proven Investments 8% exchanged 78,440 units as the price remained unchanged at $5.09 and Proven Investments ordinary stock traded 51,560 units firm at US11.9 cents.

JSEIndicesOct1Junior market | C2W Music traded at a new all-time low with 44,000 units changing hands as the price was down 4 cents to 93 cents. Caribbean Cream traded 22,776 units firm at $1; Caribbean Producers Jamaica 61,100 units closed unchanged at $2.08; Consolidated Bakeries saw an 18 cents climb in the price $1.39 with 35,200 shares trading; General Accident Insurance had 32,000 units going through the market as the price increased 3 cents to $1.85; Lasco Distributors 294,845 units helped to move the price down by 4 cents to $1.46; Lasco Financial Services 1,488,652 traded at $1.21, off by 2 cents; while Lasco Manufacturing 1,115,311 units gained it 4 cents to close at $1.55; Paramount Trading had 16,324 units with the price closing firm at $3.20.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed the market consolidating with bids for 5 stocks being higher and 6 stocks with offers lower than their last selling price.

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

Caribbean Flavours a new IPO

September 30, 2013 by

Update Monday, 30th September | Mayberry Investments advised that the company has reconciled all applications in respect of Caribbean Flavours & Fragrances Initial Public Officering (IPO). There was full allotment for all reserved applications which included board of directors, staff, Mayberry Investments and Key Partner. The first 10,000 shares applied for by the public were allocated in full and balance over 10,000 units were allocated with approximately 19.355 percent of what was applied for.

Update Thursday, 26th September | Lead broker Mayberry Investments Limited announced that the initial public offering (IPO) of shares in Caribbean Flavours & Fragrances Limited (CFF) is oversubscribed and was closed at 9:01 am on Wednesday. Applications were received in excess of the $50.6 million on offer. The public will be advised of the basis of allotment by Friday, 27th September 2013.

The junior market of the Jamaica Stock Exchange should be welcoming its 19th listing in the form of Caribbean Flavours & Fragrances Limited (CFFL) as the company goes to market to sell up to 22,480,008 ordinary shares at j$2.25 per share. After the issue, the total number of shares will be 89,920,033 making it one of the smaller listed companies.

The company is one of the largest businesses of its kind in the English speaking Caribbean. It is engaged in the manufacturing and distribution of flavourings and water soluble colourings for the food, beverage, baking, confectionery and pharmaceutical industries and is a key supplier of these products. It also manufactures and supplies fragrances used in household cleaning, body care, aroma therapy and air freshener products.

Incorporated on 23rd February 2001, its business and assets were purchased from prior owner Bush Boake Allen Jamaica Limited and is a supplier to predominantly commercial customers in Jamaica, Trinidad and Tobago, Grenada, Barbados, St. Kitts, Guyana, USA and Canada. Its customers are well known names in the food and beverage business.

CaribbeanFlavours&Fragrances+tubes115pxCFFL sources essential oils and natural extracts worldwide and receives key ingredients and technical support from International Flavors & Fragrances Incorporated (IFF), responsible for more than 70 percent of the company’s supplies. IFF is a US$5 billion company listed on the NYSE and is a member of the S&P 500 Index. Lascelles deMercado is a key local supplier, providing alcohol for use in fragrance distillates and other items. Some of the supplies used are commodities with variable prices linked to world markets. The company aims not to carry more than 6 months’ stock of supplies.

CFFL has one competitor in the local market, Virginia Dare (Jamaica) Limited. In the view of the Directors, their particular business focus is on the supply of custom blended products for large local businesses and this distinguishes it from their competitor that supplies retail and smaller business clients with generic products such as bulk syrups.

Income | Revenues amounted to $193.9 million in the 2012 financial year, an 8 percent increase over the $179.4 million recorded in the prior financial year. During 2012 financial year, the company generated increased gross profit of $79.4 million versus $60.9 million in 2011 fiscal year due to increased sales of its products and higher margins of 40.95 percent, compared with 33.95 percent in the 2011 financial year.

CaribFlovoursOperating Expenses totaled $72.94 million for the 2012 financial year, a year on year increase of 24.5 percent due mainly to increased promotional activity and compensation to directors. CFFL recorded improved Profit before Taxation in for the year, which grew to $6.46 million compared to the $2.36 million for the prior year.

Revenues for the 12 month period ended June 2013 was $229.89 million, increasing 19 percent over the $193.87 million recorded for the 2012. The growth in revenue was driven by increased sales of the products in the fragrance line of the business. Gross Profit totalled $92.73 million compared to $79.39 million. Total operating expenses amounted to $60.49 million for the year, 17 percent less than the $72.94 million recorded for the year prior. This decline was due to a reduction in directors’ fees. Other Income totalling $16.80 million is due mainly to sale of property. Finance Income was $2.53 million for the year. Profit before taxation totalled $51.57 million for the latest fiscal year and net profit amounted to $40.32 million.

Assets totalled $97.52 million as at June 2013, $22.90 million less than the $120.42 million at June 2012. The decline is due to the sale of property. During the period the company reduced the amount outstanding to directors resulting in liabilities totalling $31.45 million as at June, 2013 versus $94.7 million as at the end of 2012 financial year. Shareholders’ Equity stood at $66.06 million at the end of June 2013.

Earnings per share before taxation is 46 cents putting the PE around 5 times earnings to June this year, providing room for some appreciation in the short term. The negative is that the company and its management is not well known and the number of stock in issue is small creating and illiquid situation.

The Directors anticipate a payment of an annual dividend of not less than 25 percent of the annual net profits after payment of any applicable taxes where “such profits are available for distribution, subject to the Company’s need for reinvestment of some or all of its profits from time to time in order to finance the growth of the business of the Company.”

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

JSE: September ends positively

September 30, 2013 by

Monday, 30th September 2013 | Trading accounted for 12,298,941 units valued at $76,393,065 as the stocks of 24 companies traded on the last day of the month. The main market index was up 215.13 to 84,500.20, the all Jamaica index gained 378.51 to 84,371.49 and the junior index was up 7.02 to 768.83 as 9 stocks advanced to 7 declining.

The market measured by the all Jamaica and junior market indices was little changed during the month of September with the all Jamaica being up by a few points and the junior market down a few.

Trading patterns | During the last two trading days in August, the main market indices made noticeable advances as the prices of a few stocks moved up. However, on first day of trading in September, the indices dropped back wiping out the two-day gains. The all Jamaica index fell by more than 1,000 points and added more losses on the second day. By day three, the all Jamaica Index recovered all its losses but lost some more the following day. The last day of September is showing some of the same patterns as the last day of August.

JSEIndicesSept30Main Market | In Monday’s trading there were some big volumes, which included National Commercial Bank with 1,559,057 units valued at $29,309,186 with the price closing at $19 down 50 cents from Fridays close of $19.50. On Thursday, the stock closed at $18.60. Sagicor Life exchanged 1,029,279 units at $8.60 for a value of $8,851,610, the price gained 10 cents for the day. Jamaica Money Market Brokers was the other big volume mover with 1,491,600 units worth $11,929,695 as the price closed at $8, up 5 cents. Carreras traded 128,675 units valued at $6,045,561 as the price closed at $46.70 dipping by 50 cents; Caribbean Cement exchanged 42,236 shares but the price dropped 33 cents to close at $1.87; Gleaner Company traded 193,910 units at $1.21 up 3 cents; Scotia Group contributed just 12,265 units at $21.20, up 20 cents and Proven Investments 8% had 704,700 units trading firm at $5.09 for a value of $3,586,923.

Junior market | There was some pick up in trading in the junior market after prices for a number of the stocks declined to what could well be support levels. Access Financial Services put in a volume of 11,780 units as the price $8.40, down 10 cents; Caribbean Producers, which is again in the limelight with negative publicity about directors being charged for improper importation of meats into the island, traded only 16,188 units at $2.08, losing 2 cents on the day; Consolidated Bakeries chipped in with 73,386 units at $1.21, down 14 cents while Dolphin Cove gained 44 cents as it exchanged a good volume of 1,442,316 and closed at $8.45 as $12,185,925 was involved in the trade. Lasco Distributors contributed to the level of trading with 1,006,800 units at a closing price of $1.50 up 6 cents with a value of $1,509,838 and Lasco Financial Services had one of its best days’ volume wise with 4,373,000 units as it gained 3 cents to close at $1.23 worth $5,259,807.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed the market consolidating with bids for 9 stocks being higher and 5 stocks with offers lower than their last selling price. Eight of the stocks with higher bids are in the main market and could well result in a better start for October when compared to September.

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

No change to Buy & Watch list

September 30, 2013 by

After a number of changes last week, IC Insider retains the same selection on the Buy Rated and Market Watch list.

Importantly, Grace Kennedy, which was added last week, announced that they will be pursuing a share buy back of 2.5 percent of the company’s shares over the period of up to a year. This takes effect 21 days after the notice was made to the stock exchanges of Jamaica and Trinidad on the 27 of September. The shares will be purchased on the open market of the exchanges and will be executed when the company believes the price is below its true value. The company has nearly 335 million shares in issue and so far this year has bought back slightly more that 1 million units. The 2.5 percent buy back would translate to just over 8 million shares. This compares with 24.6 million shares traded during the last twelve months of which 8.6 million traded on one day.

The stock last sold at $54 in Jamaica and had a bid of TT$3.36 in Trinidad or just under J$54. There is no stock on offer on the Trinidad market where demand has picked up following what the company’s CEO Don Wehby says was a successful visit.

Grace’s PE is around 5.5 times this year’s earnings with net asset value per share of just under $100 per share. At current interest rates the stock is a great buy, both for the company and the investing public, as the price could climb sharply into next year.

Related posts | Changes, changes, changes | Grace’s profit up 41% in June quarter

The IC Insider’s Buy Rated seal of approval is given to a stock that we believe is a compelling buy with earnings that are strong relative to the price and strong prospects of generating high price gains within the next twelve months.

Better than a broker’s ‘buy’ recommendation, IC Insider has no vested interest in any stock transaction or conflict of interest. Our research is backed by published reports of the company’s performance and insights of future earnings that can be found at ICInsider.com. The final decision to buy, or not, is your personal choice.

To find published reports for a Buy Rated stock on IC Insider, please use category ‘Buy Rated’ under Company News or enter the company name, in full or part at ‘Search IC Insider’.

BuyRated&StockWatch

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