Trading & prices rise on TTSE – Tuesday

Trading on the Trinidad & Tobago Stock Exchange climbed well above Monday’s level with 646,866 shares valued $8,173,637 crossing the exchange compared to 31,251 shares at a value of $1,140,527 on Monday.
Trading ended with 15 securities changing hands compared to 13 on Monday and ended with 8 advancing, 3 declining and 4 remaining unchanged.
At the close of the market, the Composite Index added 0.44 points to 1,389.72. The All T&T Index declined 1.19 points to 1,751.52, while the Cross Listed Index rose 1.86 points to close at 139.26.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator ended with 2 stocks closing with the bids higher than the last selling prices and 4 with lower offers.
Gains| Angostura Holdings closed with an increase of 1 cent at $15.85, with 2,000 stock units changing hands, Clico Investment Fund rose 10 cents and to close at $24.10, with 11,070 units crossing the exchange, Grace Kennedy added 1 cent and ended at $3.30, after exchanging 349,363 shares. JMMB Group gained 5 cents and ended at $2.25, with 260 units crossing the exchange, Massy Holdings rose 45 cents and completed trading of 48,380 units at $54.50. NCB Financial closed with a gain of 24 cents, settled at $10.25, with 468 stock units changing hands One Caribbean Media finished trading with 9 cents and ended at $10.10, with 200 stock units trading and Trinidad & Tobago NGL traded 79,140 units and gained 1 cent to close at $24.51.
Losses| CinemaOne lost 35 cents and concluded trading of 740 units at 52 weeks’ low of $7.15, First Citizens Bank ended trading 29 cents lower and settled at $40.10, in swapping of 3,137 shares and Trinidad Cement closed with a loss of 5 cents at 52 weeks’ low of $2.30, with 4,284 stock units changing hands.
Firm Trades| Guardian Holdings ended at $18.01, swapping of 15,428 shares, Guardian Holdings completed trading at $18.01, with 15,428 units, Republic Financial concluded at $121.33, with 524 units, Sagicor Financial completed trading 126,967 units at $10.45, with and Scotiabank settled at $58.50, with 5,645 units crossing the exchange.

Prices of securities trading are those at which the last trade took place.

RJR heads market watch list

Radio Jamaica came into increased buying last week to hit a 52 weeks’ high of $2.58 before pulling back to close at $2.07. The stock shows strong signs of going higher and is the main stock to watch this week.
More buying interest developed for General Accident having posted net profit after tax of $135 million, up 42 percent on the $95.4 million earned in the 2018 period. Pretax profit for the second quarter grew by a stronger 58 percent to $127 from $80 million in 2018. There was no tax change in the second quarter of 2018. The stock price is range bound between $3 and $5.80 but has broken out and should pave the way for a higher price level going forward, some selling around $6.40 could hold back the move higher for a while.
More buying came in for Elite Diagnostic it is unclear if investors are ready to buy out supplies just above $7 in the short term. The stock is poised to move higher with recent signs of improving financial performance. Caribbean Cement has some new buying interest that suggests higher prices ahead, but all of that could well be due to month-end dressing up than real short-term demand. Recent big selling for Jamaican Teas could be over with the near 11 million trade in the second half of last week. Buying interest continues to build that could take the price higher soon.

True Juice orange juice bottled by and distributed Wisynco

One technical indicator is showing Jetcon Corporation’s downturn is over and there is likely to be a big upside for the stock after the company reported in their second results an upswing in sales in June and July over the similar periods in 2018 and that orders for August suggest they will enjoy a much better sales than in 2018. It is not very clear but Honey Bun is on an upswing and could move higher over the next few weeks.
Medical Disposables closed with just one offer of 49,900 shares for sale at $8.80, but buyers may wait out buying until more sellers come with lower offers.
Lasco Manufacturing is hitching to break into the $6 region as more demand has come in for the stock. Wisynco Group came under selling pressure recently with the price moving into the $30 region, technical reading shows it at support around $24 with an upward bias.

Wigton profit to help light up JSE

Wigton stock could spike on Wednesday.

Profits drive stock prices like nothing else. The Jamaica Stock exchange should see a big hike at the close of trading as a number of companies release some excellent results days before the main earnings season for the half-year ends.
Some main market companies are reporting big gains in earnings after the market closed on Tuesday and these could push prices up on Wednesday. Wigton Windfarm posted positive results for the June quarter, with profit jumping from $175 million to $366 million with modest foreign exchange gains, resulting in earnings per share of 3.3 cents that should translate to over 10 cents for the year. Revenues grew 12 percent at Kingston Wharves to $3.8 billion, over the corresponding period in 2018 and net profit attributable to shareholders increased by 40 percent to $1.2 billion. For the June quarter, net profit rose 54 percent to $729 million on revenues that rose 12 percent to $19.7 billion. Importantly, Kingston Wharves reported earnings of 51 cents per share for the second quarter (annualized $2 per share) and 82 cents for the half-year.
Jamaica Producers increased second-quarter revenues by 12 percent to $5.4 billion over the 2018 period and net profit attributable to shareholders increasing 52 percent to $399 million.

Jamaica Producers snacks

For the half-year, JP posted profit due to the group’s shareholders of $629 million compared to $415 million with revenues that rose from $9.3 billion to $10.16 billion. PanJam Investment reports net profit attributable to shareholders of $3.055 billion for the June quarter, up from $982 million in 2018 and $3.95 billion for the six months from $1.8 billion in the 2018 period.
PanJam results benefited from investments gains and gains from the sale of shares in an associated company. Productivity Business Solutions posted a rise in profits toUS$724,000 in the June quarter compared to a profit of $372,000 in 2018 and a profit of US$184,000 for the six months to June.

SOS & tTech head IC MarketWatch

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SOS anticipates maximising profits from every business line in 2019.

Second-quarter results are coming out but still, a number of them are due out over the next few days. Results released today throws up a few strong numbers and the stocks of these companies are worth watching.
First, out the block today was tTech an IC TOP 10 BUY RATED selection with possible gains of 167 percent. The company reported a 20 percent increase in revenues in the second quarter of $91 million and a 62 percent rise in profit to $16 million and 15 cents per share with flat profit of $17 million or 16 cents per share for the half-year. The stock climbed to $6.50 at the close on Thursday and seems headed higher.
Stationery and Office Supplies reported a strong 195 percent rise in profit fro the second quarter to reach $34 million compared to just $12 million in 2018 from a 23 percent rise in sales to $295 million. for the half-year profit rose 63 percent to $92 million from $56 million from a 23 percent revenue increase to $639 million. The company is on target to meet IC Insider.com’s forecast of 75 cents for the full year. Radio Jamaica is yet to release its first-quarter results but investors have sent to stock to a high of $1.90 on Thursday. Demand has built and supplies shrank sharply and that should help move the price higher.
Caribbean cement traded 3,770,741shares up to $85 and is worth watching with supply falling. Sagicor Select ETF Fund was listed on Thursday but demand resulted in the price exceeding the 30 percent limit permitted by the JSE with investors attempting to trade the stock as high as $1.90 but the stock closed with no trading and closed with bids amounting 12 million shares at $1.30 and 324,520 were the lowest offers at $1.85. Lasco Manufacturing could be moving higher in coming trading days as supply declines and demand rises.

Market watch remains on Junior Market

Focus on the entire Junior Market was the advised investors got last week, as the market remained severely undervalued with technical indicators pointing to a breakout.
The advice remains for the second week as investors switch their focus decidedly on the market that lagged the main market for most of 2019 to date. The market reversed the near 10 percent loss in the first half of the year and moved solidly into the black with a rise of 9 percent to the end of last week. Technical indicators suggest a huge rise in the market as it moves to close the valuation gap with the main market.
In the process, the market rose 152.80 points during the week and ended at a record close of 3,537.21 after breaking the old mark of 3,436.54 points set in September last year.

Jamaica Broilers has just two offers for sale at the close on Friday.

The main market also contributed its fair share of excitement with a new record close and a number of stocks hitting new highs. A number of main market stocks could be coming to a short-term peak as is evident in the pullback of NCB Financial and Caribbean Cement during the past week with the latest quarterly results not lending much fuel to the stock prices.
It will be interesting to see how investors react to announced terms of the rights issue for Barita Investments with the offer of 11 for every 100 units at $45 each.
Jamaica Broilers has just 2 offers to sell, suggesting that the price has a far way to go. Some buying came for Radio Jamaica in the past week but with the price closing at $1.35 on Friday. It is worth noting that supply is drying up with only four offers totaling 115,000 shares posted at the close on Friday.
Sygnus Credit Investments is coming into its own with a limited supply of the stock for sale, the price closed at a record high at the close of the past week and may move higher this week. Jamaica Stock Exchange stock could fall some more with the stock facing increased selling and reduced buying.
Some selling came into the market for Blue Power but buying interest remains at the close on Friday with buying interest around the $12 but with some selling just above. Caribbean Flavours has a limited supply of stocks for sale and is worth watching. Elite Diagnostic with rising demand and virtually no supplies could bounce again this week following last weeks’ rise. General Accident moved away from the $4.50 level to close at $4.95 on Friday against declining supplies for sale with just two offers posted on Friday. Jamaican Teas hit new records during the week with investors trying to buy at $8.40, a level over the 30 percent limitation set by the market. The stock last traded at $7.26. Lasco Financial price bounced above $5 last week. The stock remains undervalued and should see increased buying interest, with the release of June quarter results, due out shortly. Lasco Manufacturing released first-quarter numbers at the close of the week with net profit rising 19 percent to $282 million, enough to move the price higher. Lasco Distributors should release quarterly results this week and could move prices of the stocks higher. Limners and Bards climbed to a record high of $3.99 but closed at $3.75 on Friday. Buying interest remains strong but some investors are taking profits, it will be interesting to see which has the upper hand, this week. Medical Disposables looks poised to move higher with the first-quarter numbers, set to play an important role in further gains. Investors await the second-quarter results for Stationery and Office Supplies to determine if higher prices are on the cards anytime soon, but the supply of the stock remains low with only 43,000 units offered for sale at the close on Friday.

Market watch spotlight on Junior Market

The focus this week is the entire Junior Market that remains severely undervalued, notwithstanding that it made up much-lost grounds in the past week. The Lab is the first stock to watch from this sector.
NCB Financial third-quarter results were far from inspiring with operating profit being lower in the quarter than for the prior year’s results, at the close on Friday there was good selling on offer that seems likely to keep a lid on the price for a while.  NCB reported Operating profit of $6.46 billion in the June 2019 quarter, down from $8.14 billion in 2018. A $700 million net gain in associated company results eased the difference somewhat.
Barita Investments is back at the record high of $83 it closed at the close on Friday, up from $72 at the end of the previous week. Importantly, supply has mostly dried up except for a block of 1 million units offered by Barita at $98 per share. Shareholders passed the resolution at last week’s extraordinary general meeting for a rights issue that will see 106 million shares or around one for every 15 shares of shares owned offered to shareholders, at an expected price in the $40 region.

Barita eyeing acquisition.

Results for Caribbean Cement are out by but reports indicate that the company reported increased sales for the June quarter but lower profit than in 2018, due mainly to $485 million incurred as foreign currency losses. The company reported 43 cents per share versus 79 cents in the similar quarter in 2018. For the half-year, Carib Cement reported earnings of $1,79 compared to $1.18 in 2018. The company looks like earning $5 per share for the full year with increased second-half sales. Do not look for the price of the stock to move up any time soon, with these results
Jamaica Broilers and Jamaica Producers may not break out just now but there is very limited selling and good news could push them higher at any time. Investors who thought that the sky was the limit for Wigton Windfarm may be having second thoughts with the company posting their full-year results, with earnings excluding foreign exchange gains or losses working out at 5 cents per share going forward. The stock seems poised to remain under $1 for a long time. More selling came for Radio Jamaica in the past week but with first-quarter results due mid-August, the stage could be set for a break beyond the $1.40 price level.
Sygnus Credit Investments is coming into its own with a limited supply of the stock for sale, the price closed at a record high at the close of the past week and may and could move higher this week. investors should continue to watch it. Wisynco Group traded close to $30 in the past week pushing the PE up considerably. It could settle just below the $30 range for a while.

Drax Hall branch of Elite.

The Junior Market finally found its footing in moving solidly higher during the past week to within less than 100 points from the previous record high in 2018. With the entire market severely undervalued, just about all stocks are to be watched. Some are more attractive than others and should enjoy a greater focus.
Blue Power closed on Friday with strong buying interest that suggests higher price ahead arising from a proposed split-up of the company into two separate ones. Caribbean Flavours has a limited supply of stocks for sale and is worth watching. Fontana pulled out of the fall to $7.41, in the previous week as demand pushed the price over $8. The branch in Kingston could influence investors to add the stock to their portfolio. Elite Diagnostic with rising demand and slowing supplies could bounce, having traded at $5. The company’s new Drax Hall branch in St Ann is set to open in August and will add to revenues and profit at a later stage. Elite has more than 387,000 units on offer at $5 and that could constrain upward price movement for some time. Jamaican Teas reported nine months results of 32 cents per share compared with 20 cents last year. Investors reacted positively to the results pushing the stock up to $5, but supply on sale is limited and could encourage more price movement this week. Lasco Financial price bounces around $4.50. The stock is undervalued and should see increased buying interest, with release of June quarter results, due out shortly. In 2018, first-quarter results were released on the 17 of July. Lasco Manufacturing released first-quarter numbers on the 31 of July last year and Lasco Distributors released theirs on the 19. The results could move the price of the stocks higher. Limners and Bards climbed 30 cents to settle at a record high of $1.30 with just 100 shares changing hands on the first day of trading, the stock closed with the bid at $1.65 and looks poised to hit $2, the stock was on offer at $2.95 at the close on Friday. Medical Disposables looks poised to move higher and first-quarter numbers will play an important role in further gains and Stationery and Office Supplies hit a record of $12 during the past week and should move higher with little supply offered for sale.

Market Watch spotlight on NCB

NCB Financial third results are due on Thursday that could determine the direction for the stock on Friday and into the week following, as such this is the prime candidate to watch.
Barita Investments pulled back from the record high of $83 at the close of the previous week to $72 with good volume changing hands. Barita released details of the resolution for the extraordinary meeting for the proposed rights issue that will amount to 106 million shares that works out at one share for each 15 held.
Results for Caribbean Cement should be out by the weekend but reports indicates that the company announced local sales of 950,000 tonnes for 2019 that would represent an eight percent increase over 2018. That increase plus price increases implemented last year along with cost reduction will result in a big boost to profit.
Neither NCB or Carib Cement, have much volume of stocks selling currently, accordingly positive results could move them higher. Jamaica Broilers and Jamaica Producers may not break out just now but there is very limited selling and good news could push them higher at any time. Jamaica Stock Exchange closed at a 52 weeks’ high of $38 on Friday but there is little volume on sale and that could encourage more gains for the stock, especially as some investors equate increased trading volume since Wigton  Windfarm was listed, with increasing revenues and profit for the exchange. Radio Jamaica hit a 52 weeks’ high of $1.40, on Friday on increased buying interest but some selling came in to move the price down to $1.24. At the close just over 1 million units were on sale at $1.24.

Caribbean Cement Q2 results expected before end of July

Sygnus Credit Investments is coming into its own with limited supply of the stock for sale, the price retreated during the past week and may not move much in the week, investors should continue to watch it. Wisynco Group came back into the spotlight with demand pushing the price to a record high at $21. At the close on Friday, there was limited volume on offer that could result in more gains for the stock.
Blue Power has just one offer on sale at the close on Friday but buying has increased with the proposed split up of the company into two separate ones. Caribbean Flavours has limited supply of stocks for sale and is worth watching. Fontana hit at a new high of $9 on Friday, but selling pushed the price down, to close at $7.41, but the price may fall further before resuming its upward climb with the pending opening of the new Kingston branch, in September. Stationery and Office Supplies still has little supply offered for sale and could break over the $10 barrier at any time, especially with the June quarter results due out in weeks. Elite Diagnostic with rising demand and slowing supplies could bounce, having traded at $5. The company’s new Drax Hall branch in St Ann is set to open in August and will add to revenues and profit at a later stage. Elite has more than 387,000 units on offer at $5 and that could constrain upward price movement for some time. Lasco Financial price bounces around $4.50. The stock is undervalued and could see increased buying interest, ahead of the June quarter results that could be released at any time, In 2018, first quarter results were releases on the 17 of July. Lasco Manufacturing released first quarter numbers on the 31 of July last year and Lasco Distributors released theirs on the 19. The results could move prices of the stocks higher.

Watch Barita Investments again

Barita Investments headquarters

Barita Investments rose sharply last week to close at a record high of $83 after posting blockbuster quarterly results, the price could climb higher and is still one to watch.
NCB Financial continues to create waves and seems poised to move higher over the coming months with the next quarter’s earnings due out next week. Investors are eagerly awaiting them.
Caribbean Cement failed to break higher during the past week, with results for the June quarter due out at the end of July, investors could get an incentive to buy the stock more aggressively.  Sygnus Credit Investments is coming into its own with limited supply of the stock for sale. Wisynco Group came back into the spotlight with demand pushing the price just under $20.
Fontana that continues to trade around $6, seems poised to slowly move higher as the new Kingston branch, moves closer to opening in September.

Wisynco came into inctreased buying in the past week.

Stationery and Office Supplies still has little supply offered for sale and could break over the $10 barrier at any time, especially with the June quarter ended. Elite Diagnostic with rising demand and slowing supplies seems set to bounce, having traded at $5. The company’s new branch in St Ann is slowing being built just outside of St Anns Bay at Drax Hall and may not be far from completion. Elite has more than 418,000 units on offer at $5 and that could constrain upward price movement for some time, if the selling remains during the week. Lasco Financial price bounces around $4.50. The stock is undervalued and could see increased buying interest, ahead of the June quarter results.
A number of other companies will be releasing 2019 second quarter results, between this week and mid- August that could move prices.

Watch this one – RJR Group

Investors should be watching keenly developments at Radio Jamaica as the company seems poised for a turnaround in its fortunes.
The company today reported to the Jamaica Stock Exchange that a connected party purchased 26.5 million of the company’s shares on July 5, 2019. The trade took place at $1.03 and is very significant, sending a strong message of the group fortunes ahead, but few are watching this one. The RJR purchase may not mean much to most, but IC Insider.com assessment of recent results suggests otherwise.
In November last year, IC insider.com posted an article, captioned “NCB Insiders sending a powerful message.” The article highlighted the fact that some directors and executives at NCB Financial Group see big things ahead, to have put down $650 million in buying a block of 4,793,610 shares close to the highest price it traded at in recent times. Since then the stock rose from $136 to more than $200 for a gain of 47 percent, with more to come.
RJR Group, reported profits that more than doubled in the December quarter from $79 million to $168 million on revenues that climbed from $1.39 billion to $1.5 billion but for the year to March this year, the group reported a small loss of $22 million thus reversing the profit of $34 million at the end of December 2018. Operating revenues rose an attractive 9.7 percent in the March quarter to reach $1.29 billion, segment results show that revenues grew 5.3 percent for television, 7.4 percent for radio and 8.2 percent for print in the March quarter over the prior year’s March quarter. Some cost incurred in the 2019 fiscal year will not repeat in 2020, while income as a result of the World Cup football, will not recur. The group lost around $40 million in doing world cup coverage and that loss will disappear in 2020. RJR ended the year with shareholders’ equity of $2.35 billion, borrowings of $387 million. Current assets amounted to $1.5 million with cash funds at $448 million and current liabilities at $662 million. In spite of the loss for the fiscal year, gross cash inflows amounted to $485 million.
The gains in revenues are an important message about future income and a very good indication that the 2020 fiscal year should be a profitable one. The purchase of the block of shares when coupled with growth in revenues seems a positive indicator of what to expect for 2020.
There are a few other indicators as well. Some entities placing advertisements in the Gleaner faced cancellation as a section of the paper attracted increased business that they had to turn away advertising and that seemed to have gone on for weeks in the June quarter. Faced with a growing economy with sales rising as well as increased competition companies will spend more on advertising to move more products and services, a trend that should continue going forward. Of significance, is that GDP growth in the first quarter of 2019 is 21 percent faster than in the same period in 2018 if this trend continues for the rest of the year growth would be in the 2.5 percent level or more. That would mean more advertising dollar spend and the RJR Group is in a good position to benefit from that going forward.
IC Insider.com projects 15 cents per share in earnings for 2020 with the stock that traded at $1.10 on the Jamaica Stock exchange on Friday, is now at a PE of just 7, well under the market average of 15.6.

Watch Barita Investments

Barita Investments headquarters

NCB Financial dropped to $173 on Friday with a large volume trading but bounced to last trade at $188.  The stock may not break out of the $190 range for now but it is worth watching for future developments.
Others worth watching this week include Barita Investments with results that could be released by the end of this week or early next week. The results should be showing a big improvement over that of the similar period in 2018. The third quarter results, is rumored to be far better than the second quarter, that will be known in a few days. Importantly, the second quarter earnings posted as 65 cents should be 90 cents per share instead, with earnings equivalent to $3.60 per annum. Caribbean Cement appeared as if it was going to break higher than $80 during the past week, but did not and is worth watching this week as results for the June quarter is due out at the end of July and there is not an abundance of stock offered for sale.  Sygnus Credit Investments is coming into its own with limited supply of the stock for sale.
Caribbean Producers fell to $4.50 with buying interest around these levels and limited selling pressure. Fontana jumped to a record $6.50 this past week and that encouraged some selling to take place.
the stock remains the main attraction in trading.

Fontana upcoming Waterloo Road branch

Selling supplies remain relatively low at the close on Friday. Stationery and Office Supplies still has little supply offered for sale and could break over the $10 barrier at any time, especially with the June quarter ended. Elite Diagnostic with rising demand and slowing supplies seems set to bounce, having hit a new high on Friday. Lasco Financial price was cut down to $4.10 on Friday, but bounced back to the close at $4.50. The stock is undervalued and could see buying interest building, in the days ahead.
A number of other companies will be releasing 2019 second quarter results between this week and mid August that could move prices.Most of these stocks are in the Junior Market.