Pulse Investments disclosed earnings in the March quarter of $45.4 million a slight improvement over the $44.3 million generated in the 2012 period. For the nine months to date, earnings are up to $148 million against $136 million in 2012. The company generated revenues of $210 million and $171 million for the nine months to March 2012. While the net earnings are close to 2012 figures, the quality this year is better with $99 million being earned to date before a $51.5 million appreciation in investment property (2012 $82.5 million) was booked as income thus boosting the net profits.
Administrative expenses declined in both the quarter and for the nine months this year versus 2012. Earnings per share is put at 16 cents in the quarter and 53 cents year to date suggesting that around 70 cents earnings per share for the full year to June is possible.
The company’s statement of financial position is undergoing a slow metamorphic change as loan liability is down to $24.4 million from $26 million in 2012. Cash funds are up to $13.3 million from $9.9 million in March last year. Trade receivables are down from $50 million at the end of March last year to $22 million this year. Payables are up from $38.3 million to $45.5 million.
Pulse shares last traded at $1.60 but there haven’t been any serious takers for them with an offer in place for several months at $1.60. The stock is undervalued but there is not likely to be any strong demand for a while. All that could change, if the stock market continues to push the prices of the better quality stocks upwards forcing investors to look elsewhere for stocks to invest in. Pulse could come into its own.
Pulse Investments’ business is focused on grooming models and contracting them out to the trade, staging Caribbean Fashion Week, ownership of shops and other property for rent.
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