Revenues rose a strong 36.56 percent for the year to August 2014 for junior market listed, AMG Packaging, hitting $607 million but it increased by a much slower pace of 28 percent in the final quarter of the financial year, to $165 million.
Those strong gains may have cannibalized sales in the November quarter with flat sales compared with 2013 quarter, with revenues of $151 million. But the performance comes against the back ground of volumes sold, climbing a very strong 19 percent for the year. The fall in volume started from the August quarter as units sold increased by 23.4 percent, management stated in a release accompanying the May results.
While sales increased impressively in 2014 fiscal year margins came under pressure with only 23.7 percent for the year to August down from 33 percent in 2013. For the latest quarter gross profit margin comes out at 25.9 percent but could end up at 31.5 percent for the current year if sales volumes increase by 10 percent for the rest of the fiscal year. Gross profit for the quarter amounted to $34.4 million up from $33.3 million in 2013 but increase mainly administrative cost that rose 28.4 percent eroded profit slightly by 15 percent to $15.4 million from $18 million in 2013. The company got a double whammy, with the Jamaican dollar losing value, resulting in a 28 percent more Jamaican dollars having to be found to purchase a US dollar since September 2012, and the price of paper on the world market moving 22 percent from US$720 per tonnes at September 2012 to US$830 in August 2013 and now US$875, which it has been since June last year.
Receivables are down by $12.7 million from the amount at the end of August last year and so too is amounts in payables by $26 million. Cash funds grew to $33 million from $22 million while inventories is down from to $118 million at August to $113 million, which is nearly 4 months supplies based on sales in the quarter and is up from just two and a half months back in 2013 and seems to be a hedge against devaluation of the Jamaican dollar. But that is only a part of the story. A check on world prices for pulp shows a pretty sharp increase since 2012.
AMG has to continue to grow its business by continued strong volume growth to become a more cost competitive producer with lower unit cost. The company needs to put strategies in place to return volume sales to growth and needs to continue cost containment measures to ensure profit improvement going forward. With increase through put, unit cost of production will fall allowing more growth in gross to flow into overall profits. A bright spot for the company is the fall in the cost of fuel and electricity will help in keeping cost down for the rest of the fiscal year.
IC Insider’s forecast for 2015 is 90 cents per share and $1.50 for 2016 on the assumption that volume sales return reasonable growth.
AMG flat sales push profit down 15%
4 junior stocks rise
Activity on the Junior Market closed with only 5 securities traded and ended with1,058,166 units valued at $ 1,373,604. The JSE Junior Market Index rose 1.24 points to close at 701.45, with the price 4 advancing and only 1 falling.
At the close of the market, there were 6 stocks with bids higher than their last selling prices and no stock with the offer lower. The junior market continues to reflect renewed interest with 6 securities closing with no bids to buy. There were 7 securities that had no units being offered for sale.
In trading, AMG Packaging closed with 134,952 shares changing hands, gained 1 cent at $2.15. Caribbean Producers ended with 49,100 units, the price rose 4 cents to $2.15, Lasco Distributors had 190,730 shares changing hands, to close with a gain of 6 cents, at $1.50. Lasco Manufacturing ended with 85,503 units changing hands to close 1 cent up to $1.19 and Lasco Financial closed with 597,881 shares changing hands to close 5 cents lower at $1.
3 junior stocks rose
Jamaican Teas stock gained the most in the junior market on Wednesday
At the close of the market, there were 5 stocks with bids higher than their last selling prices and no stocks with offers that were lower. The junior market closed with 6 securities closing with no bids to buy. There were 8 securities that had no stocks being offered for sale.
Stocks trading are, Jamaican Teas finishing with 64,302 units changing hands, to close 34 cents up at $2.85. Lasco Manufacturing ended with 70,700 shares changing hands with a gain of 5 cents, at $1.18, Paramount Trading ended with 17,342 units changing hands, to close 1 cent higher at $2.76. Eppley 9.5% preference shares traded 91,100 units at $6, General Accident finished with 34,667 shares changing hands at $1.75, Lasco Financial closed with 1,000 units trading at $1.05, AMG Packaging closed with 5,000 units trading as the price slipped 1 cent to $2.14 and Lasco Distributors finished with 64,500 shares changing hands 5 cents lower to $1.45.
Junior market up 1st trading day of 2015
Caribbean Cream traded at 77 cents to gain 2c but closed with the bid at 80c.
At the close of the market continues to reflect renewed interest in junior stocks with 6 securities closing with no bids to buy and 8 securities that had no stocks being offered for sale, in addition there were 6 stocks with bids higher than their last selling prices and none with offers that were lower.
The stocks trading are, AMG Packaging trading 22,220 shares with the price rising 25 cents to $2.15, Caribbean Cream ended with 68,000 shares changing hands to close 2 cents higher at 77 cents, Caribbean Producers closed with 9,935 shares with the price rising 8 cents to $2.11, Paramount Trading finished with 42,000 shares changing hands to close 9 cents up to $2.71.
Lasco Distributors finished with only 1,850 shares changing hands at $1.45, Lasco Manufacturing ended with 116,962 shares changing hands to close at $1.12, Derrimon Trading closed with 3,000 units changing hands, the price slipped 5 cents to $2.10 and Dolphin Cove ended with only 100 shares trading 20 cents lower to $8.80.
Junior stocks up last day down 9% in 2014
Honey Bun lost the most in value in 2014, down 46.4%.
The JSE Junior Market Index rose 3.33 points to close at 687.96, with the price of 3 stock advancing and 2 declining. Junior market stocks collectively lost 9 percent for the year in which only 5 junior stocks rose and 15 declined. Honey Bun lost the most in shedding 46.40 percent followed by AMG Packaging 45.40 percent.
At the close of the market, there were 6 stocks with bids higher than their last selling prices and 1 stock with the offer lower. The junior market continues to reflect renewed interest with 5 securities closing with no bids to buy. There were 10 securities that had no stocks being offered for sale.
C2W Music ended trading with 12,500 shares changing hands to close at 1 cent to 39 cents, Caribbean Cream closed with 319,000 shares with the price rising 5 cents to 75 cents, Lasco Distributors ended trading with 14,670 shares changing hands to close with a gain of 4 cents to $1.45.
Blue Power ended with 3,270 shares trading at $6.30, General Accident finished with 360 units changing hands to close at $1.75, Honey Bun ended with 4,000 shares at $1.71, Lasco Financial completed trading with 21,340 shares with the price at 98 cents, Lasco Manufacturing closed with 28,000 shares changing hands at $1.12.
Access Financial closed with 3,902 units trading as the price slipped 4 cents to $8.96 and AMG Packaging finished with 4,500 shares changing hands and lost 25 cents to new 52 weeks’ low of $1.90.
Access 14m shares trade cancelled
Mayberry traded 14,065,475 units of Access Financial shares at $9 on Monday but the transactions were cancelled after the market closed. Apparently, the trade was in breach of the court order for the two major shareholders to freeze their respective holdings. The official trading report of the Jamaica Stock Exchange showed the trades as they were still valid, but data on the stock exchange trading system show the trades as cancelled.
In actual trading on the Junior Market, only 6 securities traded ending with 336,824 units valued at $597,178 changing hands. The JSE Junior Market Index dropped 1.01 points to close at 689.28, with the price of 2 advancing and 2 declining.
At the close of the market, there were 4 stocks with bids higher than their last selling prices and 1 stock with the offer lower. The junior market continues to reflect renewed interest with 4 securities closing with no bids to buy up from 11 some weeks ago. There were 10 securities that had no stocks being offered for sale, including 2 junior market preference shares.
The stocks trading are, Honey Bun ended trading with only 222 shares changing hands to close 1 cent up at $1.71, Lasco Distributors ended with 27,802 shares trading and gained of 1 cent to $1.45, AMG Packaging ending with 2,500 shares trading at $2.15. General Accident finished with 1,000 shares trading at $1.75, Caribbean Producers finished with 226,000 shares trading lower by 2 cents to $2.05, Lasco Financial ended trading, with 79,300 shares changing hands, to close 2 cents down at 96 cents
Activity picks up on junior market
Dolphin Cove was one of the stocks gaining on the junior market on Monday
Trading on the Junior Market closed with only 7 securities traded and ended with 187,106 units valued at $207,965. The JSE Junior Market Index rose 3.44 points to close at 682.98, with the price 4 advancing. At the close of the market, there was 1 stock with the bid higher than the last selling price and 2 stocks with offers that were lower. The junior market continues to show improvement in sentiment with only 4 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
The stocks trading in the junior market on Monday are, Cargo Handlers that ended with 754 shares changing hands, to close with a gain of 40 cents at $14.60. Dolphin Cove ended with 2,475 trading to close 40 cents higher at $8.50, Lasco Manufacturing finished trading 32,500 units for 2 cents more at $1.12, Medical Disposables concluded trading with 7,000 shares changing hands, to close 5 cents up at $1.75. AMG Packaging closed with 23,300 units trading as the price remained at $2.15, Lasco Distributors closed with 15,000 shares changing hands at $1.45 and Lasco Financial finished with 106,077 shares at 98 cents.
Honey Bun new low of $1.70
Activity Trading on the Junior Market closed with only securities traded and ended with 566,814 units valued at $860,032. The JSE Junior Market Index fell 7.75 points to close at 679.54, with the price of one stock advancing and five declining.
Honey Bun closed at a new high of $6.60 on Monday.
At the close of the market, there was one stock with a bid higher than the last selling prices and none with a lower offer. The junior market is lowly regaining strength but not there yet, with five securities closing with no bids to buy. Eight securities had no shares offered for sale, a positive indicator that prices could be rising shortly.
Paramount Trading ended with 19,429 shares trading with a gain of 6 cents to $2.62, AMG Packaging closed with 580 shares trading at $2.15, Lasco Manufacturing closed with 128,435 shares changing hands to close at $1.10, Access Financial closed with 11,000 units trading, the price slipped 4 cents, to $8.96. Dolphin Cove lost 40 cents to close at $8.10 and finished trading with 3,200 shares. Honey Bun ended trading with 7,000 shares changing hands to close 30 cents lower at $1.70, for a new 52 weeks’ low, Lasco Distributors traded 291,300 units with the price slipping 5 cents $1.45 and Lasco Financial traded 105,870 shares lower by 7 cents at 98 cents.
Low activity on junior market
The junior market has been slowly rebuilding since a 2014 low reached in June
Blue Power closed with 910 units with a 14 cents gain to $6.30, followed by Lasco Distributors finishing trading with just 1,600 units to close trading with an increase of 9 cents at $1.50. AMG Packaging closed trading with 51,578 shares changing hands at $2.15, General Accident had 220,595 shares trading at $1.75 followed by Honey Bun with a mere 300 shares at $2, Lasco Financial ended trading with 3,300 units at $1.05 and Lasco Manufacturing traded 105,000 shares and lost cents 2 to end at $1.10.
7 securities traded in junior market
Caribbean Producers traded 107,00 shares at $2.
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 1 with the offer that was lower. The junior market continues to exhibit weakness with 10 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
There was dealing in 11,949 General Accident shares, as the price closed with a gain of 2 cents, to end at $1.55, Knutsford Express concluded trading with 2,500 units, with a decline of 1 cent to $5.49, AMG Packaging ended trading with 9,478 shares changing hands at $2.15, Caribbean Flavours closed with 23,872 shares trading at $2.35, Caribbean Producers finished trading with 107,000 shares at $2, Lasco Manufacturing exchanged 31,106 units, to close at 95 cents and Medical Disposables traded 2,000 shares at $1.90.
