Sterling must change rights deadline

January 4, 2019 by

Sterling Investments

Jamaicans have the view that the local capital market is regulated but developments taking place in the country, suggest that they may be dead wrong.
Fontana goes to the market with an IPO and raises funds but the prospectus sates what will happen with multiple applications from one person or company, but the release from the broker handling the issue announces an allocation that is at variance with the terms of the prospectus. Almost two weeks have passed but there is no correction of the error, even as the JSE listing committee is expected to meet on Friday to approve the listing on the market, expected to take place on the January 9.
Sterling Investments is offering shareholders rights to subscribe for more shares at $3.08 with the opening date being January 4, 2019 with the last date for renunciation of rights and closing for existing shareholders being January 11.
On the surface that seems fine but shareholders are yet to receive their offer document and many will not get tit by the deadline date. The company should take the proper action and extend the deadline date. What is unfortunate is that the company is putting shareholders at a disadvantage to non-shareholders by given the latter a much longer time to apply for shares while shareholders are given very little time. It should be the other way around.
Thankfully, the matter of Barita Investments attempting to issue rights based purely on terms determined by directors has been withdrawn and is to go before shareholders at a general meeting. There should never be any doubt that shareholders must determine changes in the capital of a public company. After all, issuing of new shares can mean dilution of ownership interest. Some lawyers state that section 65 of the Company’s Act requiring a general meeting of shareholders for changes in share capital does not apply to the increase issue of new share but to the authorised share capital is incredible when the former has no impact on shareholders’ interest but the latter does.

Filed Under: General News Tagged With: ,

JSE majors down first trading day of 2019

January 2, 2019 by

Barita Investments – 2018 best performing JSE stock ,closed at a new high on Wednesday.

Stocks closed down on the first day of the year on the Jamaica Stock Exchange, but only after rising in early trading during the day as the market adjusted for the usual end of year window dressing of prices of the last day of 2018.
At the close of trading on Wednesday, the All Jamaican Composite Index fell 620.33 points to 416,222.40 and the JSE Index declined by 565.19 points to close at 379,225.67. Trading ended with a mere 854,686 units valued at just $19,069,873, compared to 4,522,721 units valued at $121,494,950 changing hands on Monday.
Mayberry Investments led trading with 184,285 units 21.56 percent of the day’s volume, followed by Mayberry Jamaican Equities with 110,370 units 12.91 percent of the volume changing hands and Victoria Mutual Investments with 70,834 units 8.29 percent of the day’s volume.
The main and US dollar markets, had 30 securities changing hands with prices of 12 rising, 14 declining with 4 remaining unchanged, compared to 31 securities trading on Friday. Barita Investments moved to another record closing high, with the price moving to $54.20 at the close of trading.
An average of 31,165 units valued at $705,292, in contrast to 161,526 units valued at over $4,339,105 on Monday. Trading for December ended, with an average of 835,037 units with a value of $25,906,477, for each security traded.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 11 stocks ending with bids higher than their last selling prices and 3 closing with lower offers.
In main market activity, Barita Investments climbed $2.20 and ended at an all-time closing high of $54.20, with an exchange of 18,501 shares, Grace Kennedy jumped $4 to close at $65 in trading 24,340 units, Jamaica Broilers traded 54,550 shares after falling $1.50 to close at $28. Jamaica Stock Exchange fell $1.10 in closing at $9.40 after 10,638 shares were traded, JMMB Group gained $1.44 to close at $34, with 43,583 shares trading. Kingston Wharves declined by 50 cents and finished trading of 4,456 stock units at $76, PanJam Investment closed with 8,077 units trading but fell $2 to $72, Sagicor Group rose 99 cents to end at $39.99, trading 16,220 shares, Sagicor Real Estate Fund declined $1.63 after trading 63,513 shares to end at $14.07. Salada Foods traded 10,000 but fell $3.50 to close at $31.50, Scotia Group traded 1,620 shares with a loss of $1 to close at $54, Supreme Ventures lost $1.50 to close at $16.50 trading 13,430 shares and Wisynco Group lost 49 cents and ended at $10.50 with 25,118 shares changing hands.
Trading in the US dollar market amounted to 49,850 units valued at $6,170. JMMB Group 6% preference share ended at US$1.05 with 550 shares changing hands, Proven Investments traded 10,500 stock units and increased 2 cents to 20 US cents and Sygnus Credit Investments fell 2 cents cents and ended at 9 US cents with 38,800 shares changing hands. The JSE USD Equities Index declined by 0.28 points to close at 159.33.

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Barita up 593% top 2018 JSE stock

January 2, 2019 by

Barita climbs to a new closing high of $50 on Friday to gain 593% in 2018..

Stocks on the Jamaica Stock Exchange main market ending 2018 with a credible gain of 31.7 percent but brokerage house Barita Investments surged a by a huge 593 percent to be the markets best performing stock in 2018.  
Barita Investments gain mostly came after Cornerstone Investment Holdings officially sealed the deal to take over the company and laterally, after announcing a rights issue to shareholders at an exercise price of $15.50. The stock closed the year at $52. But there is a lot more going on with this company as the new majority owners take a more aggressive approach to capture more business locally and within the wider Caribbean.
Four stocks end 2018 with gains of more than 100 percent contributed to the year’s performance but the year’s movement fell below that of 2017, when the index rose 50.7 percent. The next best performer could only deliver a 211 percent rise in contrast to the stunning gains by Barita. Salada Foods ended the year with a jump in price to $35 on strong gains in profit, to capture the number 2 best performing spot rising by 211 percent for the year, followed by Palace Amusement with gains of 159 percent, the third year in a row that it is occupying the top 10 list. Kingston Wharves grew 135 percent to be one of 4 stocks to reappear in the top 10 for two consecutive years. Jamaica Broilers gained 67 percent. Pulse Investments reappeared in the Top 10 with a rise of 66 percent and heavy weight, PanJam Investment put in a strong showing of 65 percent, while Supreme Ventures chipped in with 57 percent, Mayberry Investments rose 52 percent and NCB Financial with 50 percent to retain one of the Top 10 spots for the second year in a row.
The worst performing stocks included Ciboney down 71 percent due mainly to the sale of property it previously owned with most of the proceeds distributed as a dividend thus reducing the value of its assets to a few million dollars. 138 Student Living was next with a fall of 42 percent with Portland JSX ending with a loss for the year of 25 percent following on from Kingston Properties with 22 percent and Sygnus Credit Investments with 20 percent from it 2018 IPO price. Both Ciboney and Carreras that are in the top 10 worst performing stocks in 2018 are coming from the top 10 in 2017.

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JSE majors end 2018 up 31.7%

December 31, 2018 by

Stocks surged on the last day of the year on the Jamaica Stock Exchange with the main market ending 2018 with a gain of 31.7 percent after rising over 10,000 points on Monday. Four stocks with gains of more than 100 percent contributed to the year’s performance.
The main market’s 2018 performance, fueled primarily by a 50 percent climb in the price of heavily weighted NCB Financial, fell below that of 2017, when the index rose 50.7 percent.
At the close of trading on Monday, the market rose sharply. The All Jamaican Composite Index surged 11,006.58 points to close at 416,842.73 and the JSE Index jumped 10,028.24 points to 379,790.86. Trading ended with 4,522,721 units valued at $121,494,950, compared to 38,390,816 units valued at $962,896,660 changing hands on Friday.
Sagicor Real Estate Fund led trading with 2,286,480 units and accounted for 50.6 percent of the day’s volume, followed by Jamaica Stock Exchange with 427,320 units or 9.5 percent of the volume changing hands and PanJam Investment with 413,486 units and 9 percent of the day’s volume.
The main and US dollar markets, had 31 securities changing hands with prices of 15 rising, 6 declining with 10 remaining unchanged, compared to 32 securities trading on Friday. Trading in the main market included Eppley ordinary share that has migrated from the Junior Market. Barita Investments moved to another record high, with the price moving to $56 but pulling back by the close to a record closing high of $52.
An average of 161,526 units valued at $4,339,105, in contrast to 1,279,694 shares valued at $32,096,555 on Friday. The average volume and value for the month to date, amounts to 835,037 units with a value of $25,906,477, compared to 871,027 units with a value of $27,121,540, previously. November closed, with an average of 405,528 valued at $7,755,942, for each security traded.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 12 stocks ending with bids higher than their last selling prices and 5 closing with lower offers.
In main market activity, Barita Investments rose $2 and ended at an all-time closing high of $52, with an exchange of 14,240 shares, Jamaica Stock Exchange rose $1 to close at $10.50 in trading 427,320 units, JMMB Group jumped $4.30 and ended at $32.56, with 71,004 shares trading. Kingston Wharves declined by $1 and finished trading of 1,147 stock units at $76.50, NCB Financial Group gained $2 as 42,537 shares changed hands, to close at $150. PanJam Investment closed with 413,486 units trading with a gain of $2 to finish at $74, Sagicor Group lost $1 to end at $39, trading 48,381 shares, Sagicor Real Estate Fund rose $4.23 after trading 2,286,480 shares to end at $15.70. Seprod traded 41,618 shares and rose $1.49 to close at $31, Supreme Ventures rose $2 and closed at $18 trading 103,314 shares and Sygnus Credit Investments rose 60 cents and ended at $11 with 77,195 shares changing hands.
Trading in the US dollar market amounted to 111,418 units valued at $ $71,730. Eppley 5% preference share closed at $1 trading 1,374 shares, JMMB Group rose 6 cents and ended at US$2.06 with 5,244 shares changing hands and Productivity Business traded 104,800 stock units and increased 1 cent to 59 US cents. The JSE USD Equities Index rose 0.12 points to close at 159.61.

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Barita shareholders to vote on rights

December 30, 2018 by

Barita climbs to a new closing high of $50 on Friday.

Barita Investments (BIL) has advised that the Board of Directorshas taken the decision to withdraw its Notice of a Rights Issue to BIL’s shareholders, dated December 14, 2018 and instead hold a meeting of shareholders to consider the matter.
As a result an Extraordinary General Meeting of shareholders will be on Thursday, January 17, 2019, at the Terra Nova Hotel, at 10 am to consider the issue of increasing the issued shares by way of a rights issue.
“The purpose of the meeting is to ensure that BIL’s minority shareholders will have an opportunity to contribute to the decision for a Rights Issue,” the directors stated in their release to the Jamaica Stock Exchange.
The resolutions to be put to the extraordinary general meeting, include one for the issue of 262.28 million shares, as a rights issue. Each shareholder will be entitled to 10 shares for each 17 held, at the record date. The price for each share of the rights, is expected to remain at $15.50, as originally approved by the directors, unless varied at the upcoming meeting. The resolution is also asking that the terms of the issue are to be determined by the directors.
The rights in the original directors release were to be non-renounceable, if this condition remains after the vote at the meeting, it will mean that shareholders will not be able to sell their rights to a third party, as such if they decide not to take them up they will not be able to benefit directly from the issue.
The directors had previously voted to offer the rights to shareholders without calling a general meeting but after consultations, decided to put the matter to a general meeting of shareholders where it properly belongs.
Since announcing the rights in early December, the stock price has risen more than 56 percent to $50 and is up 567 percent for 2018 to be the stock exchange’s best performing stock.

Filed Under: Company News, General Business News Tagged With: , , ,

IC Top 10 delivered rich 2018 gains

December 30, 2018 by

Barita Investments set to be 2018 best performing JSE stock.

With just one trading day left to go, before the 2018 ends, IC Insider.com TOP 10 selections enjoyed some healthy gains during the year, with former top tenner Barita Investments set to top the year with stunning gains of 567 percent. Palace Amusement moved up 159 percent to $1,450 and Salada Foods with 218 percent gain.
In the Junior Market, CAC2000 climbed 160 percent, Caribbean Flavours rose 73 percent and Stationery and Office Supplies gained 64 percent. The TOP 10 also saw others with lesser gains than the above ones. The list includes Caribbean Cement, NCB Financial, Pan Jam Investments, Grace Kennedy, Sterling Investments, with all of them trading at record highs during the year, Iron Rock, Key Insurance and General Accident. The outstanding performer in the Junior Market for 2018, Derrimon Trading was on the TOP 10 list on November 17, last year, but moved to $8 from $6.50 at the end of the following week and then exited the list and climbed in 2018 after a stock split and acquisition of new business.
Lasco Financial is back in the Junior Market list, having fallen to $4.50, so too is Consolidated Bakeries with the price down to $1.75 and Stationery and Office Supplies with a price mow at $8.10. Out goes Medical Disposables, with the price at $7.50 along with Iron Rock and Jamaican Teas. In the main market TOP 10, Sagicor Group returns to the list replacing Sterling Investments that closed the week at $4.09.
The main market and the Junior Market closed the week with the overall PE at 15.9. The PE ratio for Junior Market Top 10 stocks average 9.2 and the main market PE is now 10. The top Junior Market stocks continue to sell at a discount to main market stocks even as the overall average PE for both markets are equal. This is an indication that there may be more gains to be had from these Junior market stocks than those in the main market.
The TOP 10 stocks now trade at an average discount of 42 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.

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Another block of JMMB shares go

December 28, 2018 by

JMMB Group accounted for 71% of volume traded.


Following on from Thursday when NCB Financial sold 327 million JMMB Group’s shares, on the Jamaica Stock Exchange, Friday’s market activity was dominated by trading in JMMB Group’s shares, but with a reduced 27 million units, changing hands.
At the close of trading, the market rose sharply, as the All Jamaican Composite Index surged 8,520.67 points to 405,836.15 and the JSE Index jumped 7,763.29 points to close at 369,762.62. Trading ended with 38,390,816 units valued at $962,896,660 compared to 329,919,002 units valued at $9,327,532,031 changing hands on Monday.
JMMB Group led trading for the second consecutive day with 27,208,371 units and accounted for 71 percent of the day’s volume, followed by Sagicor Real Estate Fund with 5,278,788 units or 13.75 percent of the volume changing hands and Wisynco Group with 2,625,261 units and 6.84 percent of the day’s volume.
The main and US dollar markets, had 32 securities changing hands with prices of 14 rising, 8 declining with 10 remaining unchanged, compared to 30 securities trading on Monday. Barita Investments ended at record high with the price moving to $50 at the close while Salada Foods closed at a record high of $35.
An average of 1,279,694 units valued at over $32,096,555, in contrast to 11,782,822 shares valued at $333,126,144 on Thursday. The average volume and value for the month to date, amounts to 871,027 units with a value of $27,121,540, compared to 846,209 units with a value of $26,801,946, previously. November closed, with an average of 405,528 valued at $7,755,942, for each security traded.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 8 stocks ending with bids higher than their last selling prices and 4 closing with lower offers.
In main market activity, Barita Investments rose $1.40 and ended at an all-time closing high of $50, with an exchange of 31,044 shares, Jamaica Broilers rose $3.49 in exchanging 26,686 o close shares at $29.49, JMMB Group dropped $4.54 and ended at $28.26, with 27,208,371 shares trading. Kingston Wharves gained 50 cents and finished trading 1,147 stock units at $77.50, NCB Financial Group gained $1.20 as 174,838 shares changed hands, to close at $148, Sagicor Group rose $2 to $40, trading 274,101 shares, Sagicor Real Estate Fund rose 47 cents after trading 5,278,788 stock units to end at $11.47. Salada Foods  jumped $5 and ended trading of 25,000 stock units at $35,  Scotia Group  rose $2.99 to close at $55, with 7,727 units changing hands, Seprod finished trading 19,742 shares, with a loss of $1.29 to close at $29.51. Supreme Ventures  rose 40 cents and closed at $16 trading 1,841,957 shares and Wisynco Group rose 39 cents to finish at $10.99, with 2,625,261 units changing hands.
Trading in the US dollar market amounted to 38,308 units valued at $9,537 with JMMB Group 6% preference share ending trading at $1.05 with 2,400 stock units and Proven Investments declining 1 cent ended trading 35,908 shares at 18 US cents. The JSE USD Equities Index rose 2.14 points to close at 159.49.

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JSE in big rise Friday morning

December 28, 2018 by

The main market of the Jamaica Stock Exchange surged 11,371 points on the All Jamaica Composite index (AJI) with nearly 2 hours of trading on Friday with the index at 408,686.63 points but pulled back to be at 406,567 points at 11:30 up 9,251.52 points.
The JSE Index climbed 10,360.40 points to 370,428.51 but the Junior Market Index slipped 5.01 points to 3,184.75. The rise so far still leaves the AJI short of the 11,126.51 points lost over the past two trading days.
NCB Financial traded at $146.83, Barita Investments traded at a new high of $50, Sagiccor Real Estate Fund jumped to $13.95 while Salada Foods traded at a new high of $35 but pulled back to $30 after. JMMB Group that traded 327 million shares traded 20.7 million shares today.

Filed Under: Breaking News, JSE Combined, Stock Market Tagged With: , , , , , , ,

JMMB big sale dominates JSE trading  

December 27, 2018 by

NCB Financial sale of 327 million shares in JMMB Group dominated trading on the main market of the Jamaica Stock Exchange on Thursday swelling the total amount of stocks trading to $9.3 billion.
At the close of trading, the market suffered a big fall, as the All Jamaican Composite Index dropped 7,385.56 points to close at 397,315.48 and the JSE Index dived 6,729.08 points to 361,999.33. Trading ended with 329,919,002 units valued at $9,327,532,031 compared to 21,522,449 units valued at $497,625,550 changing hands on Monday.
JMMB Group led trading for the second consecutive day with 327,137,347 units and accounted for 99 percent of the day’s volume, followed by Carreras with 561,455 units.
The main and US dollar markets, had 30 securities changing hands with prices of 12 rising, 10 declining with 8 remaining unchanged, compared to 30 securities trading on Monday. Barita Investments ended at record high with the price moving to $48.60 at the close after it hit an intraday high of $49.50.
An average of 11,782,822 units valued at over $333,126,144, in contrast to 768,659 units valued at $17,772,341 on Monday. The average volume and value for the month to date, amounts to 846,209 units with a value of $26,801,946, compared to 189,073 units valued at $7,264,184, previously. November closed, with an average of 405,528 valued at $7,755,942, for each security traded.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator reading shows 3 stocks ending with bids higher than their last selling prices and 4 closing with lower offers.
In main market activity, Barita Investments jumped $2.10 and ended at an all-time closing high of $48.60, with an exchange of 82,575 shares, Caribbean Cement lost 20 cents to close at $41.80, trading 25,150 shares, Grace Kennedy climbed $1 in trading 5,523 shares to close at $61. Jamaica Broilers fell $1.75 in exchanging 149,033 shares at $26, Jamaica Producers gained 53 cents trading 57,369 shares to close at $23, Kingston Wharves shed 50 cents and finished trading 452 stock units at $77, Mayberry Investments lost 75 cents to close at $9.25, with 11,020 stocks units trading. Mayberry Equities gained 35 cents to close at $9.55, with 9,576 stocks units changing hands, NCB Financial Group jumped $2.80 as 284,630 shares changed hands to close at $146.80, Sagicor Real Estate Fund rose $1 and traded 300,883 stock units to end at $11. Scotia Group fell 50 cents to close at $52.01, with 275,519 units changing hands and Supreme Ventures lost 40 cents and closed at $15.60 trading 81,392 shares.
Trading in the US dollar market amounted to 63,148 units valued at $11,894 with Proven Investments ended trading 61,848 shares at 19 US cents and Sygnus Credit Investments rising 2 cent and ended at 11 US cents with 1,300 shares changing hands. The JSE USD Equities Index rose 2.31 points to close at 157.35.

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Rita’s 14% of Barita value exceeds 62%

December 26, 2018 by

Rita Humphries-Lewin and husband Carl.

Rita Humphries-Lewin sold 81.56 percent of her shares in Barita Investments and collected $2.64 billion for it, but the amount she retained is now valued more than the amount sold in August this year, to Conerstone Investments Holdings.
Up to early part of August, Humphries-Lewin owned 339,975,664 in Barita Investments or 76.25 percent of the total issued shares. At the takeover price of $9.20 that was valued at $3.13 billion. She retained 62.7 million shares representing 14.06 percent of the issued shares, now valued by the market at $2.92 billion.
With the price of the stock reaching $46.50 on Monday, the vastly reduced ownership is worth almost what the full 76 percent holding in the company was priced at, based on the acquisition price, when Conerstone acquired 75 percent of the company.
Humphries-Lewin would have collected from the shares she sold but the amount she retained
On the other hand,Cornerstone paid $3.07 billion for 75 percent of Barita but based on the latest price for the stock the block is now valued at $15.5 billion representing a huge gain of $12.4 billion in a matter of 4 months.
The new majority owners have big plans for the company that could well push the valued much higher in the not too distant future.

Filed Under: Company News, General Business News Tagged With: , ,