Friday 13th December 2013 | There were a number of noticeable price changes to Jamaican stocks on the IC Insider Buy Rated Stock list, while the prices of the Trinidad stocks were fairly stable with the exception of Trinidad Cement (TCL) that slipping by 7 percent by the end of the week. However, TCL is still the star performer with a 118% increase since being added to the Buy Rated stock list.
JSE Junior Market | Access, which is up 21 percent since being selected as a Buy Rated stock, gained a bit during the week based on the bid price which is above the last selling price. Blue Power lost 7 percent to end at $9.38, Caribbean Producers moved up to $2.50 during the week for a gain of 23 percent but Lasco Financial lost 15 percent during the week to sit on a 28 percent loss and Lasco Manufacturing is still down 16 percent after losing 1 percent during the week.
JSE Main Market | Barita gained 13 percent during the week to break even since being added to the Buy Rated list. According to stockbroker Mayberry Investments, Barita reported 2013 profits to September of $70.3 million versus $255 million in 2012. On the surface this seems disastrous but when the one-off loss of $240 million gross arising from the swapping of government bonds for new lower yielding ones is factored in, earnings would have been around $230 million for the year. The data for the year end results suggest a small loss was picked up in the last quarter as the company had reported a profit of $78.6 million up to June and the figures indicate a loss of $79 million on disposal of investments in the last quarter. Going forward, Barita should not encounter another debt exchange charge and has been able to recover from the reduction in interest rates obtained on the government debt. IC Insider will have a full analysis of Barita’s results with a forecast for 2014 when they are available.
Caribbean Cement gained 7 percent during the week but is under water 14 percent; Grace gained 7 percent for the week and is up 9 percent; Hardware & Lumber is up 14 percent based on the bid; National Commercial Bank is down 4 percent for the week and 12 percent from selection with the market reacting negatively to the company’s year end results; Sagicor Life lost 5 percent for the week and 15 percent since selection and Scotia Group fell 9 percent in the week and 11 percent since being selected; Scotia Investment gained 4 percent for the week and is up 3 percent so far.
On the Trinidad Exchange, Republic Bank earnings was upgraded to $9.50 based on 2014 prospects and is therefore a more attractive Buy Rated stock now that the 2013 results are out.
Of great note is that many of the Jamaican stocks, particularly those on the junior market, have very limited supplies and therefore could move significantly in the medium term. The message from the market is buy now while supply can be easily had.
Related posts | Profits up at Barita | NDX hits out Barita’s profit
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