First Citizens off Buy Rated list

September 18, 2013 by

First Citizens Bank is now off the Buy Rated list as the price has shot up to $33.45 in Wednesday’s trading. However, the stock remains on the Watch List as it is poised to go higher with good bids to buy 1.2 million shares and none on offer at the close.

From here on, the stock becomes one that is more for the long term gains as the PE ratio has risen to 22.3 times this year’s earnings, just a fraction below Scotiabank and well above Republic’s 15 times PE. The price of the stock would have to retreat quite a bit in valuation for it to get back into the Buy Rated list.

TTSE PE RatioSept18thNot much has changed elsewhere in the market except that Trinidad Cement and Guardian Holdings seems to have bottomed and are slowly recovering.

Image courtesy of Jeroen Van Oostrom/ FreeDigitalPhotos.net

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TTSE: First Citizens up 52%

September 18, 2013 by

Wednesday, 18th September 2013 | First Citizens Bank traded 23,952 units valued at $801,194 as the price hit another 15 percent maximum price movement, the third consecutive day the stock activated the circuit breaker.

Importantly there are 1,272,755 units to buy at the closing price of $33.45, which was up $4.36 for the day. Although the advance decline ratio was positive as 6 advanced and 2 declined, it was the movement of First Citizens stock that was behind the gain of the All Trinidad & Tobago index by 23.24 to 1,886.79.

Upward price momentum seems to be in favour of First Citizens as demand remains intact. However, First Citizens’ PE ratio at 22.3 times this year’s earning is now close to Scotiabank, while Republic Bank is way down at 15 times. Rational investors will take these factors into consideration when investing. The PE suggests that a short term top is not too far off. IC Insider had projected $35 but that seems a bit conservative based on what has happened to date and the lack of offers in the market so far. This is one worth watching.

Trading accounted for stocks of 11 companies changing hands as 616,236 units traded for a value of $2,479,793.

TTSESept18Jamaica Money Market Brokers continue to be in demand trading 514,481 shares for a value of $257,241; Jamaica’s Scotia Investments contributed 25,000 shares for $50,000 as the stock closed down 5 cents to close at $2. Sagicor Financial Corporation added 13,629 shares valued at $94,841. Scotia Bank gained 2 cents to $70.04 a new 52 weeks high as it traded 11,743 units; Guardian Holdings moved up 2 cents to $14.52 on 2,350 shares changing hands. Trinidad Cement inched up 2 cents to $2.02 but with just 4,000 units and Angostura Holdings traded at a new 52 weeks high of $10.01 but with just 500 units trading. Clico Investment Fund traded 18,375 shares valued at $396,063 as the price inched down a cent to end at $21.55.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator showed that there were bids for 4 stocks being higher and 2 stocks with offers lower than their last selling price.

Related post | First Citizens off Buy Rated list

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Sagicor offers shares in Real Estate X Fund

September 18, 2013 by

Sagicor Real Estate X Fund is offering shares in an initial public offering (IPO) which opens on September 24, 2013 and will close on October 18, 2013. The offer is subject to the right of the Company to close the Subscription List at any time without notice if subscriptions have been received for the full amount of the shares available for subscription and also subject to the right of the Company to extend the closing beyond that date. The shares are expected to be listed on the Jamaica Stock Exchange.

A maximum 500,000,000 shares are available for subscription in this IPO with a minimum of 100 shares and in multiples of 100 shares. In the event that subscriptions or applications are received for more shares than the number of shares available for subscription and sale in this IPO, X FUND reserves the full, unqualified and absolute right to increase the number of shares in the IPO in order to satisfy all or part of the applications in excess of the 500,000,000 shares, which are comprised in the IPO but not exceeding a further 750,000,000 shares. Sagicor Jamaica and PIF have indicated that they jointly intend to exercise their options to buy shares at the IPO price with a view of holding up to 80% of the issued shares of X FUND.

The fund will invest in Sagicor real estate unit trust which holds the following properties in the fund: The R. Danny Williams Building (formerly Sagicor Centre in New Kingston), • 63-67 Knutsford Boulevard (New Kingston) • 78a Hagley Park Road (Kingston) • Sagicor Industrial Park (Marcus Garvey Drive Kingston), • Sagicor Industrial Park (Freeport, Montego Bay) • Sagicor Montego Bay Commercial Centre (Montego Bay) • Sagicor Industrial Park (Norman Road Kingston) • Spanish Town Shopping Centre (St Catherine) • 23-25 Seymour Avenue (Kingston) • Jewel Dunn’s River (St Ann)  • Jewel Runaway Bay (St Ann) • Jewel Paradise Cove (St Ann).

SagicorRealEstFundLogo280x150The authorised capital of the Company is US$5,000,001,000. There is a Special Share which is held by Sagicor Jamaica, which the company sates is to ensure that the structure of the investment is not subverted by investors who may acquire substantial interest in the Company.

Sagicor Real Estate X Fund Limited (“X FUND”) is an International Business Company incorporated in Saint Lucia. Since its incorporation on May 31, 2011 it has not conducted any business on its own account other than to enter into certain agreements in anticipation of this IPO. The fund proposes to apply the proceeds of the IPO (“the IPO Proceeds”) to acquire other units in the Sigma Real Estate Portfolio. Pending investment of excess cash in units in the Sigma Real Estate Portfolio, the X FUND may invest in other assets including marketable securities. Thereafter the Company will carry on business as a passive investment holding company.

X Fund intends to distribute by way of dividends up to 85% of its annual net realised income.

The Articles of Incorporation of X FUND specifically authorises X FUND, from time to time, by a resolution of its directors, to issue additional shares in exchange for units in the Sigma Real Estate Portfolio. This will allow X FUND to purchase additional units from Sagicor Jamaica and/or PIF or direct from Sigma Real Estate Portfolio, without securing the approval of the shareholders in general meeting.

IC Insider call | Return on real estate in the form of income is low and growth in the value of the share price is unlikely to be rapid and may not show any growth in the short run. The fund provides a means of diversifying into the real estate market as well as in the tourism sector, but the latter can be great for a few years and not so great for some years.

This IPO is a real estate play that will not give investors the best return for their money. Investors will be buying shares at 100 percent book value with roughly a 4 percent yield in Year One. Meanwhile, the Pan Jamaican Investment Trust, which has real estate assets amounting to around 25 percent of total assets and generating a third of gross income from real estate, is selling at a huge discount to book value of $51 versus book of $78. Additionally, Pan Jamaican’s decision to invest in the new Marriott Kingston hotel, and no doubt with low interest rates, as well as other ventures into real estate developments, is likely to enhance the real estate portfolio over time. More importantly, the share price of Pan Jam stands a much greater chance of appreciation than a pure real estate fund.

The fact is that real estate does best when leveraged. Specifically, the Kingston Properties REIT is an excellent real estate play that could outperform the Sagicor Real Estate X Fund over time.

Related posts | Pan Jam profit stable | KPREIT a medium term investment

Filed Under: Company News, Initial Public Offers, Stock Market, TTSE Market Tagged With: , , ,

TTSE: First Citizens in high demand closes at $29.09

September 17, 2013 by

Tuesday, 17th September 2013 | There was only trading in 20 units of the newly listed First Citizens Bank (FCB) but that was all that was needed to push the price to an all time high of $29.09. The price movement triggered the circuit breaker again, as it did on Monday, the first day of trading for the stock.

The price movement helped the all Trinidad & Tobago Index to climb 1 percent or 20 points to 1,863.55. At the end of trading there were 2,224,089 FCB shares on the bid to buy at $29.09 and there were no shares on offer as happened on Monday. The stock can trade as high as $33.45 on Wednesday. IC Insider’s initial forecast that it will hit $35 in this run up seems much closer now than before the start of this week. At the current price, the PE is 19.4 times this year’s earnings. Scotia Bank is at 22.50 times earnings presently, which means that if the FCB PE gets to that level, the price would be $34, a nice 54 percent gain in a few days from the issue price of $22. Meanwhile, another stock with appreciation potential, Trinidad Cement, claimed back the $2 level as the price rose today by 5 cents to close at $2 with 10,000 shares.

TTSESept17Trading took place in 13 securities as 3 advanced, 2 declined and 5 traded firm as 732,197 units traded at a value of $2,920,110. Jamaica Money Market Brokers had 618,901 shares changing hands for a value of $310,611 with the price closing firm at 50 cents. Jamaica’s National Commercial Bank traded a volume of 40,644 shares for $46,741 firm at $1.15. Neal & Massy Holdings contributed 24,578 shares with a value of $1,376,496, the price lost 10 cent to close at $56. Republic Bank traded 4,033 units at $110.04 up 2 cents. First Caribbean International Bank fell $1.00 to close at $6.75, a new 52 weeks low with just 1,029 units trading.

Clico Investment Fund share price remained unchanged to close at $21.56, with a volume of 31,084 shares valued at $670,094.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator continues to show signs of a fluid market with bids for 3 stocks being higher and 3 stocks having offers lower than their last selling price.

Filed Under: Stock Market, TTSE Market Tagged With: , ,

JSE: Proven preference dominant in slow trading

September 16, 2013 by

Monday, 17th September 2013 | In another slow day of trading on the Jamaica Stock Exchange, 10,033,867 shares changed hands valued at $41,529,935. Proven Preference 8 percent shares accounted for 4,555,000 valued at $23,184,950 as the price closed firm at $5.09. There were 8 stocks that closed with increased in prices versus 6 that fell. The junior market index climbed 5.62 to close at 787.49 but the two main market indices fell quite a bit with the all Jamaica index going down 819.45 points to 85,064.08 and the main market index falling 465.72 to 84,893.83.

Carreras 22,532 units resulted in the stock closing at $47.60 down by 10 cents; Gleaner Company 178,398 units traded at $1.17 and was off by 3 cents at the close; Jamaica Broilers Group 23,082 units traded at $5 but slipped 10 cents; Jamaica Money Market Brokers traded 171,892 units firm at $8; Jamaica Producers Group 12,890 units traded firm at $18.25; National Commercial Bank 107,550 units closed trading at $18.65 up 4 cents; Pan Jam traded 44,294 units firm at $51; Sagicor Life Jamaica 21,500 units closed firm at $9 and Scotia Group Jamaica contributed 216,865 units as it traded at $21.30 up 10 cents.

JSEIndicesSept16Junior market | Caribbean Cream traded 48,093 firm at $1.03; Caribbean Producers exchanged 150,000 shares to close at $2.15 up 5 cents; while Lasco Distributors put in a good volume of 191,670 at $1.45, down 5 cents for a value of $1,726,670; Lasco Financial Services contributed 2,618,867 firm at $1.25 and valued at $3,273,584 and Lasco Manufacturing just exchanged 126,264 units as it closed firm at $1.60.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator showed that there were bids for 8 stocks being higher and 2 stocks having offers lower than their last selling price.

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TTSE: First Citizens triggers breaker

September 16, 2013 by

Monday, 16th September 2013 | First Citizens Bank stock hits $25.30, up 15 percent in early trading on the Trinidad & Tobago Stock Exchange as just 1,000 units traded. At the end of trading there were bids for 3,187,700 units at $25.30 and there were no stocks on offer, a clear sign of higher price in the days ahead.

The company that had a successful initial public offer of shares (IPO) between July and August when it was twice oversubscribed saw the stock price hitting the maximum it could trade a for the day based on the circuit breaker rule. At the current price, the PE of the stock is 17 times earnings based on the level of oversubscription and the value of other bank stocks IC Insider sees the prospects for the stock to reach $35 in this run up.

Other significant trading saw Jamaica Money Market Brokers exchanging 410,000 units firm at 50 cents for a value of $205,000 after the company announced that it has been cleared to acquire the remaining 50 percent of Intercommercial Bank to bring their shareholding to full 100% ownership.

Trinidad Cement traded 69,000 shares for $134,550 as the stock traded firm at $1.95; National Commercial Bank of Jamaica contributed 10,000 shares with a value of $11,500, while Republic Bank added 5,000 shares valued at $550,100.

Guardian Holdings closed up 48 cents at $14.50 but on only 100 units; National Flour traded 2,352 units and put on a cent to close at 76 cents, while Neal & Massy put in 3,103 units gaining 4 cents to close at $56.04. Clico Investment Fund, swapped 125,081 shares valued at $2,696,856 as the price remained at $21.56.

TTSESept16Trading activity on the First Tier Market registered a volume of 628,942 shares crossing the floor valued at $3,937,088 as there was trading in 14 securities of which 6 advanced, none declined and 8 traded firm.

At the end of trading, the Investor’s Choice bid-offer indicator was showing signs of a fluid market continuing with bids for 2 stocks being higher and 4 stocks having offers lower than their last selling price.

Related posts | First Citizens shares set to explode | T&T Citizens Bank IPO oversubscribed | Buy Rated stock list grows | JMMB grows assets $24B to $200B

 

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TTSE: PE ratio not much change

September 14, 2013 by

Friday, 13th September | There’s not much change to the PE Ratios for stocks on the Trinidad Stock Market as prices changes have remained muted for much of the past week. There are signs that with the allocation of the First Citizens Bank shares, funds may have been freed up for trading in other stocks.

On Monday, First Citizens is expected to commence trading and that is likely to make an immediate difference to the PE for that stock. There are others that appear ready to move in the days ahead. Trinidad Cement with the big pull back should attract some buying interest again.

TTSE PE RatioSep13We have removed National Enterprises from Finance and Banks to Conglomerates as the company is a holding company for a number of industrial enterprises in Trinidad.

Related posts | First Citizens shares set to explode | TCL up 209% in two months

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

TTSE: Angostura ends on a high

September 13, 2013 by

Friday, 13th September 2013 | There was trading in 13 securities on Friday, 5 advanced, 1 declined and 7 traded firm as 577,825 units traded at a value of $3,265,401.

Jamaica Money Market Brokers had 200,000 shares changing hands for a value of $100,000; Sagicor Financial Corporation exchanged a volume of 183,334 shares for $1,265,005; Angostura Holdings did the same with 77,088 shares with a value of $770,640 as the price put on 39 cents to end the day at a 52 weeks high of $10, while Trinidad Cement added 60,000 shares valued at $117,000.

Scotiabank Trinidad & Tobago declined by a cent end the day at $70.02 but with only 200 units trading.

Clico Investment Fund share price gained a cent to close at $21.56 with a volume of 19,565 shares valued at $421,821. Praetorian Property Mutual Fund traded 4,000 units and closed firm at $3.41.

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

TTSESept13First Citizens| Next week should be rather interesting as on Monday, First Citizens Bank is scheduled to start trading. The stock cannot trade above $25.30 as the market is restricted by a circuit breaker, which limits the daily price movement to 15 percent. This means that based on the issue price of $22, the maximum allowed for Monday is $3.30.

Related posts | First Citizens shares set to explode

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TTSE: Trading picks up

September 12, 2013 by

Thursday, 12th September 2013 | Activity on the Trinidad & Tobago Stock Exchange picked up resulting in trading in 15 securities of which 5 advanced, none declined and 10 traded firm as 796,303 units traded valued at $8.24 million. There were two new 52 weeks high during the day as National Enterprises traded as high as 16.05 but closed lower at the end of trading and Scotia Bank closed at a new 52 weeks high at $70.03.

Jamaica’s Grace Kennedy fresh from a road show in Trinidad, which an IC Insider source indicates was well received, had volume of 200,000 shares changing hands for a value of $660,000, followed by Jamaica Money Market Brokers with a volume of 163,000 shares for $81,500. ANSA McAL traded 20,000 units at $66.28 with no change in price at the end of trading; National Enterprises contributed 117,336 shares valued at $1,878,749; Neal & Massy exchanged 32,616 units at $56; Sagicor Financial Corporation added 96,953 shares valued at $668,898. Trinidad Cement had 92,000 units changing hands firm at $1.95 and Clico Investment Fund share price gained a cent to close at $21.55, with a volume of 58,598 shares valued at $1,262,510.

TTSESept12Ansa Merchant Bank exchanged just 1,000 shares at $39 up 40 cents.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator was showing signs of a fluid market with bids for 4 stocks being higher and 2 stocks having offers lower than their last selling price.

Image courtesy of watcharakun/FreeDigitalPhotos.net

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TTSE: Low activity day

September 11, 2013 by

Wednesday, 11th September 2013 | In a low trading day, market activity on the Trinidad & Tobago Stock Exchange resulted in trading in 8 securities of which 2 advanced, none declined and 6 traded firm.

Market activity resulted in a volume of 372,425 shares valued at$2,043,195. Trinidad Cement had 310,000 shares changing hands for a value of $604,500 as the stock closed firm at $1.95, Sagicor Financial Corporation had 16,397 shares traded valued at $112,319. Agostini’s contributed 9,246 shares with a value of $159,494, while Scotiabank Trinidad & Tobago added 8,350 shares valued at $584,629, increasing by a cent to end the day at $70.02.

TTSESept11Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 24,000 shares valued at $516,940. CLICO INVESTMENT FUND remained at $21.54.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator was showing signs of a fluid situation for the market with bids for 2 stocks being higher and 2 stocks having offers lower than their last selling price

Filed Under: Stock Market, TTSE Market Tagged With: , ,