I am of the view that a Jamaican investor looking to get in to SGJ would be best served by purchasing either Pan Jam or Sagicor Financial Corporation (SFC) or both.
Pan Jam because it is trading at a discount to equity as well as being very heavily invested in Jamaican real estate with excellent levels of occupation and with large minority positions in mostly export oriented companies. The vast bulk of its revenue is derived from SGJ as a result of the 31+% shareholding. Sagicor Group (SJ) has also recently gone in to Central America in addition to their Cayman subsidiary which acts as a hedge against further devaluation of the JA$.
SFC because it trades at a significant discount to equity as well as having most of its asset base (about 66%) outside of Jamaica and most of that in currencies which are fixed against the US$ also therefore acting as a hedge against JA$ devaluation. Further, in my view, the T&T and Barbados markets are discounting almost entirely the value of SJ which allows for better value for a Jamaican investor in SFC.
SJ itself is also trading below equity. In my view, the first attached article supports my argument for purchase of either company to get the benefit of SGJ. The second analysis done by myself in May 2011 using the approach identified in the first article attempts to identify the “true” value of SFC.
At close of trading today (Friday 10/10/2014) the market capitalisation of SJ exceeds that of SFC on a constant currency basis by TT$210,939,023 (J$3,743,302,723). I suspect that it was the recognition of this problem which caused SFC to delist from the JSE.
I am a shareholder in SFC and I live in T&T.
Roland Bynoe
Pan Jam & Sagicor Financial better buys
Trackbacks
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[…] with 2,608 shares changing hands at $63.10, National Flour Mills contributed 6,653 shares at $2.10, Sagicor Financial with 93,526 units trading, closed at $6 for a value of $561,156. Republic Bank ended with 5,896 […]
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[…] Gains| National Enterprises had 2,500 shares changing hands, climbed 10 cents to end at $17.20, Sagicor Financial closing with 210,250 shares valued at $1,318,268, the price edged up 1 cent to $6.27. Point Lisas […]
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[…] and Junior Market Index fell to 895.31, up by 0.97 points. The most noticeable trade so far is Pan Jamaican with just 760 units trading as the price rose by $2.93 to $63.70, National Commercial Bank with […]
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[…] declined 9 cents to end the day at a 52 weeks’ low of $17.10 while trading only 2,664 units and Sagicor Financial Corporation traded 15,237 shares, to close at $6.25 while losing 5 cents. Firm Trades| Stocks closing with […]
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[…] Group added 3,663 shares at 45 cents each. Massy Holdings traded 359 shares to close at $64.35, Sagicor Financial Corporation traded 300 shares, to close at $6.30, Scotiabank trading only 50 shares to close 1 cent higher at […]
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[…] had 27,676 units changing hands at $4.80, Massy Holdings trading 346 shares to close at $64.35 and Sagicor Financial Corporation trading 4,192 shares to close at $6.25. IC bid-offer Indicator| At the end of trading the […]
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[…] trading at $22.55, One Caribbean Media traded 550 shares and closed 1 cent higher at $22,42 and Sagicor Financial Corporation ended trading 6,842 units at $6.06 after rising 2 cents. Firm Trades| Stocks closing with prices […]
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[…] shares valued at $354,504 to close at $64.35, National Flour traded 1,000 units and closed at $2, Sagicor Financial Corporation traded 13,470 units at $6.04 and Scotia Investments ended with 8,500 shares changing hands at $1.47. […]
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[…] Firstcaribbean International Bank contributed 11,000 shares as the price closed unchanged at $11, Sagicor Financial Corporation 6.5% preference shares traded 1,000 units at $1.10, and West Indian Tobacco traded 500 shares and […]
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[…] lower. tocks trading in the main market at new closed at 52 weeks’ high are Barita Investments, Pan Jamaican Investments Trust and Radio Jamaica. Jamaica Broilers traded during the day at $5.74 for a new 52 weeks intra-day high […]
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[…] had 76,650 shares changing hands for a value of $4,871,107 to end 7 cents higher, at $63.55 and Sagicor Financial Corporation ended with 24,892 shares carrying a value of $147,693 to end with a 10 cents gain, at $6. Firm […]
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[…] shares changing hands, for a value of $3,876,466, lost 5 cents to end at $14.25, followed by Sagicor Financial Corporation contributing 26,090 shares, with a value of $153,943.81, while closing a cent down, at $5.90 and […]
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[…] Clico Investment Fund trading 13,000 shares valued at $292,63, put on a cent to end at $22.51 and Sagicor Financial Corporation are, with price rising by 4 cents to $6.02 with 1,400 shares changed hands are the only stocks […]
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[…] Citizens Bank trading 5,607 shares valued at $199,038 to close with a gain of 4 cents, at $35.50. Sagicor Financial Corporation trading 33,255 shares valued for $198,831, closing with a gain of 20 cents at $6 and Unilever […]
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[…] at the close are, First Citizens Bank trading 312 shares to close with a gain of 1 cent, at $35.38, Sagicor Financial gaining 5 cents to end at $5.80, while trading 10,200 shares. Scotiabank gaining 2 cents to close at […]
[…] Sagicor Financial, a member of the, successfully issued a new seven-year bond in August 2015 in order to refinance debt, including the US$150 million 10 year bond due in 2016. This new US$320 million bond matures in 2022, and comes with an 8.875 percent fixed rate of interest for the period with interest payable semi-annually. JP Morgan and Scotiabank, the joint book runners for the Bond, successfully completed the transaction on behalf of Sagicor. In a recent press release, Scotiabank VP, Dylan Coke, stated, “It is important to note that not only was the Bond very successful overall, there was a robust demand for it within the Region.” He added that approximately a third of the Bond’s takers were Caribbean investors. Rating agencies Standard & Poor’s and Fitch, have both given the Bond issue a ‘B’ rating. This rating has been capped in line with the sovereign rating for Barbados. Sagicor a Barbados based Life Insurance company is a provider of financial services in the Caribbean and 0perating in 22 countries, including the USA and Latin America, Sagicor has total assets of US $6.2 billion and $774 million in capital. The Sagicor Group offers a wide range of products and services including life insurance, annuities and group and individual health, and has an insured base in the region of two (2) million. Sagicor is a publicly traded company with over 37,000 Shareholders, and is listed on the stock exchanges of Barbados, Trinidad and Tobago and London. The company is the largest shareholder in Jamaica’s Sagicor Group which includes banking, life and health insurance and fund management. Sagicor Financial recorded net income from continuing operations of US$37.5 million for the first six months ended June, 2015, compared to the prior year result of US$33.2 million, an increase of 13 percent. Net income from continuing operations attributable to shareholders was US$21.8 million, compared to the prior year of US$19.3 million, an increase of 13 percent. Earnings per common share from continuing operations, was US 7.0 cents compared to the prior year result of US 6.2 cents. […]