Access & NCB in TOP 10

NCB Financial Group enters TOP 10

The main market of the Jamaica Stock Exchange closed at new record high on Friday, the seond week in a row that it doing so and in the process the all Jamaica Composite Index broke the 300,000 mark for the first time.
While the main market is making new highs, with gains of 43 percent for 2017, the junior market with gains of 30 percent at its peak this year, is now up just 12 percent for the year to date. Access Financial returned to the Junior Market list and NCB Financial to the main market list even as the latter price moved back to $91 at the end of the week and with just 33,603 units being offered for sale.
Suspension of the trading in Berger Paints shares is expected lifted on Tuesday, October 17. At the time of this report, no information was available on the level of take up of the buyout offer for the minority of the company’s shares by Ansa Coatings. The stock that traded at $11.25 when trading was suspended, should climb with the March 2018 full year’s earnings should hit $2.30 per share.
Investors continue to switch attention from Junior Market, to main market stocks, with the latter having pierced resistance around 300,000 points on the all Jamaica Composite Index could now be heading much higher as it moves on to the next major resistance at 360,000 point range on or before the end of the year.
At the close of Friday, the average PE ratio for the Junior Market Top stocks is at 7.9 and a PE at 7.1 for the main market TOP 10. The average PE for the overall main market trades at 13.5 and 13.1 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 percent to the average of the market for Junior Market Top stocks and it remains at 47 percent for the main market.

JSE closes 1,000 points shy of 300,000

The market made another run at the 300,000 mark on the All Jamaican Composite Index on Monday, but fell just under 1,000 points shy, with the index ending at 299,091.16 points as the investors continued their bullish attack on a limited set of stocks.
The Main Market of the Jamaica Stock Exchange ended with 23 securities changing hands, 9 advanced, 12 declined and 2 traded firm with 310,999,356 units valued at $2,974,897,171 as Supreme Ventures accounted for 307 million units. One stock traded in the US market resulting in the price rising on small volume.
In market activity, volumes are those trades for the day and the closing prices are those at which the last trade took place. In the main activity, Barita Investments concluded trading 24 cents higher at $8, with 10,673 units changing hands, Cable & Wireless rose 2 cents to $1.02, with 126,398 shares, Caribbean Cement ended at $28, with just 144 units, Carreras ended trading with a loss of 2 cents at $13.48, with 252,898 stock units changing hands, Grace Kennedy finished with a loss of 40 cents at $43, in trading 38,318 units. Jamaica Broilers settled with a loss of 50 cents at $18, while exchanging 8,266 stock units, Jamaica Producers concluded trading with a loss of 80 cents at $15.20, with 6,459 shares, Jamaica Stock Exchange finished 10 cents higher at $7.70, with 27,315 units, JMMB Group traded 89 cents higher at $26, with 36,897 stock units, Kingston Properties settled with a loss of 5 cents at $7.15, with 2,000 units, Kingston Wharves finished 75 cents higher at $30.75, with 20,539 shares. Mayberry Investments exchanged 9,218 stock units at $4.50, property company, 138 Student Living finished 1 cent higher at $5.41, with 2,700 shares, PanJam Investment shed $1 to end at $43, with 11,244 stock units, Pulse Investments traded with a loss of 2 cents at $1.80, trading 69,750 shares, Radio Jamaica settled with a loss of 9 cents at $1.11, with 87,688 units. Sagicor Group jumped $4.99 to a record $39.99, with 52,394 shares, Sagicor Real Estate Fund closed with a loss of 8 cents at $13, after trading 3,100,000 units, Scotia Group fell 96 cents to $50, with 91,270 stock units, Seprod settled with a loss of $1.50 at $28.50, with 8,160 shares and Supreme Ventures finished with a loss of 60 cents at $9.50, with 306,999,685 stock units changing hands. In the main market preference segment, JMMB Group closed at $1.15, with 600 units and in the US dollar market Productive Business Solution rose 0.25 US cents in trading 2,300 units to close at 60 US cents.

Sagicor out C&W in TOP 10

JMMB Group Traded at a new high of $27.99 on Friday.

In a week when Jamaica Stock Exchange main market closed at record high each day, JMMB Group that IC Insider.com said was itching to rise, surged to an intraday high of $27.99 and ended at a record close of $25.11 but still remains in the TOP 10 Main market stocks.
Cable and Wireless is the only new entrant to the listings, just edging out Sagicor Group in the main market, there were no new change to the Junior Market list. With the company now clearly in the profit lane things should be getting even better in 2018 making it a long term investment proposition. Barita Investments came in for increased selling in late September and still remains under pressure with limited buying interest, as investors await details of the offer from Cornerstone, to acquire majority shares in the company. This could be a case of investors missing the bus by waiting, with the net asset value at $7 as of June this year and the price just 10 percent above.
Trading in shares of Berger Paints was suspended on Thursday with resumption scheduled for October 17, the stock has been trading ahead of the price of $10.88 offered by Ansa Coatings and should be trading in the $20 region, and is clearly one for the future with growth taking place in the construction sector. All indications suggest that very few shareholders will take up the offer when it closes at the end of Monday.
Investors appear to have switched attention from Junior Market to main market stocks, with the latter seemingly set to break through short term resistance around 300,000 points on the all Jamaica Index on the way to the next major resistance at 365,000 point range.
The average PE ratio for the Junior Market Top stocks is at 7.7 and a PE at 7.1f or the main market TOP 10. The average PE for the overall main market trades at 13.6 and 13.2 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 42 percent to the average of the market for Junior Market Top stocks and it remains at 48 percent for the main market.

13 stocks rose on Monday

Sagicor Group traded 7 million shares on Monday.

At the close of trading on the Jamaica Stock Exchange, on 13 rising, 11 declining based on the last price trades were executed at. The JSE All Jamaican Composite Index surged forward by 3,300.40 points to 291,661.03.
The JSE Index climbed 3,007.04 points to 265,736.18 as trading volume nearly tripled to 13 million shares over Friday’s level. Sagicor Group was the dominant trade with over 7 million units followed by Grace Kennedy with 1.3 million shares.
In the main activity, Barita Investments rose by 25 cents to $8, with 4,800 units, Berger Paints ended with a loss of $3 at $12, with 12,500 shares, Cable & Wireless ended trading 1 cent higher at $1.11, with 479,762 stock units, Caribbean Cement rose $1.2 to $28.50, with 17,475 shares, Carreras surged $1.35 to a new 52 weeks high of $13.50, with 544,289 stocks units, Grace Kennedy ended at $43, trading 1,307,292 shares, Jamaica Broilers closed with a loss of 10 cents at $18.50, with 961,908 stocks units traded. Jamaica Producers concluded trading at $15.50, with 313,406 units, Jamaica Stock Exchange settled 50 cents higher at $8, with 104,300 shares, JMMB Group traded with a gain of 75 cents at $23, with 55,994 units, Kingston Wharves ended with a loss of $1 at $31, with 177,500 stocks units, NCB Financial had 166,223 shares changing hands after falling $1.40 to end at $86.60. The remanent of former Gleaner Company, 1834 Investments ended with a loss of 2 cents at $1.38, with 1,000 units changing hands, PanJam ended $1.50 higher at $42.50, with 350,918 units, Portland JSX concluded trading with a loss of 2 cents at $9.28, with 16,570 units. Proven Investments traded 541,000 units and rose 4 cents at $25.05, Pulse Investments concluded trading with a loss of 30 cents at $1.40, with 52,264 units, Radio Jamaica finished 4 cents higher at $1.15, with 294,243 stocks units, Sagicor Group ended trading at $34.53, with 7,095,313 units, Sagicor Real Estate X Fund rose 30 cents to $13.80, with 1,200 units, Scotia Group finished with a loss of $1.90 at $46.10, with 772,000 units, Seprod settled at $30, with 2,785 shares, Sterling Investments concluded trading 5 cents higher at $12.05, with 201,700 stocks units and Supreme Ventures concluded trading 30 cents higher at $10.81, with 123,652 stocks units.
In the main market preference segment, Cable Bahamas traded 10 shares at 1 million each, Jamaica Money Market Brokers ended with a loss of 8 cents at $2, trading 20,325 shares, JMMB Group ended at $1.19, with 200 shares.
In the US dollar market, Margaritaville Turks lost 2 US cents to end at 30 US cents with 1,000 shares, Productive Business Solution US ordinary share closed with a rise of 0.50 cent at 58 US cents while trading 2,541 units, Proven Investments US ordinary share lost 1.99 US cents to close at 22 US cents, while, exchanging 1,579 units.
Living,

TOP 10 – SOS & Barita back in

The recently listed Stationery and Office Supplies is back in the Junior Market Top 10 stocks along with CAC 2000 with the price falling to $6.50 while Barita Investments with a fall in price to $8 is back in the Main market list.
Barita Investments has come in for increased selling and limited buying as investors await details of offer from Cornerstone for the majority of the company’ shares.
Investors should keep an eye on Berger Paints this week, as investors could push this one higher as they sense the continuation of listing for the stock and a bounce when offer by Ansa Coatings closes early in October. JMMB Group is itching to rise with limited supply and guarded buying.
The average PE ratio for the Junior Market Top stocks is at 7.7 and the PE for the main market TOP 10, ends the week at 6.8. The average PE for the overall main market trades at 13.1 and 13.4 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 43 percent to the average of the market for Junior Market Top stocks and it remains at 48 percent for the main market.

JSE main market slips – Monday

Scotia Group dropped $3 to $46.

Trading on the Main and US dollar market of the Jamaica Stock Exchange ended with an almost even advance decline ratio resulting in the market indices slipping in a shortened trading session that commenced in the afternoon after the regular closing time had passed.
The volume of securities trading and the days last traded price are, Barita Investments that ended with a loss of 25 cents at $7.75, with 6,700 shares. Berger Paints concluded trading with a loss of 75 cents at $11.25, with 7,256 units, Cable & Wireless ended with a loss of 4 cents at $1, with 170,543 stocks changing hands, Carreras finished 50 cents higher at $11.50, with 464,114 units, Grace Kennedy finished $1.45 higher at $43.50, with 5,737 shares, Jamaica Broilers ended 50 cents higher at $17.50, with 39,878 stock units, Jamaica Producers concluded trading at $15, with 13,350 shares, JMMB Group finished 70 cents higher at $22.70, with 41,657 units, Kingston Properties finished at $7, with 2,000 shares, Kingston Wharves dropped $2.22 trading 18,341 shares to end at $28.51. Mayberry Investments traded with a loss of 50 cents at $4.10, with 2,138 units, NCB Financial fell 92 cents to $86.88 with 73,643 units changing hands. 1834 Investments ending at $1.40, with 93,917 stocks, PanJam Investment traded with a loss of 50 cents at $35, with 146,100 units, Portland JSX traded at $9.30, with 2,450 shares, Pulse Investments closed 9 cents higher at $1.80, with 7,701 stock units, Radio Jamaica closed at $1.12, with 49,263 units, Sagicor Group settled with a loss of 40 cents at $34, with 55,255 shares, Sagicor Real Estate Fund concluded trading 50 cents higher at $11.50, with 7,480 shares. Scotia Group dropped $3 to $46, with 44,994 stock units changing hands, Scotia Investments concluded trading 1 cents higher at $35.51, with 2,900 units, Supreme Ventures ended 9 cents higher at $11.09, with 699 shares.
In the main market preference segment, Jamaica Money Market Brokers 7.5% preference share traded at $2, with 232,000 units and JMMB Group 7.5% preference share closed at $1.19, with 503,100 shares.
In the US dollar market, Margaritaville traded just 100 units at 30 US cents, Productive Business Solution US ordinary shares lost 3 cents and closed at 62 US cents trading 750 units, Proven Investments US ordinary share closed at 23.99 US cents, after rising 1.99 US cents in exchanging 99,223 units.

570,000 Berger shares snapped up

Berger Paints traded 570,000 shares on Friday and closed at $12.

Investors snapped up more than 570,000 units of Berger Paints’ shares pushing the price to $12 at the close, as more news came to the public that Ansa Coatings is highly unlikely to get enough shares to force a delisting of the company from the Jamaica Stock Exchange based on the offer, of $10.88 per share.
The JSE market indices rose on Friday as Scotia Group recovered some ground with 9 other stocks posting gains even as 11 fell in value.
At the close of market activity, Barita Investments closed with a loss of 15 cents at $8 with 323 units trading, Berger Paints added 75 cents to close at $12 with 572,833 shares changing hands, Cable and Wireless closed at $1.04, gaining 3 cents with 13,270 units, Caribbean Cement closed with a loss of 30 cents at $25.50 with 67,941 shares, Carreras gained 20 cents, and closed at $11 with 417,758 units, Grace Kennedy traded $1.45 lower, to $42.05 with 35,700 units. Jamaica Broilers advanced $1.25 to $17 exchanging 28,943 shares, Jamaica Producers declined by $1, closing at $15 with 6,650 units, Jamaica Stock Exchange closed at $6.50 with 4,960 stock units, JMMB Group closed at $22, after falling $1 in trading 148,514 shares. Kingston Wharves with 100 units traded rose $1.23 to $30.73, Mayberry Investments lost 9 cents, closing at $4.60 with 31,800 shares, NCB Financial Group traded 70 cents lower to $87.80 with 90,395 shares, 1834 Investments lost 4 cents to close at $1.40 with 30,000 shares. PanJam Investment dropped $3.50 to $35.50 with 22,813 stock units, Pulse Investments closed at $1.71, gaining 6 cents with 126,500 shares, Radio Jamaica closed at $1.12 trading 72,310 shares, Sagicor Group gained 40 cents, and ended at $34.40 with 15,770 shares, Sagicor Real Estate Fund gained 39 cents, closing at $11 with 1,850 units, Scotia Group closed $2.90 higher at $49 while exchanging 58,409 shares, Scotia Investments fell $1.50, closing at $35.50 with 1,412 units, Seprod with gains of $1, ended at $34 with 1,000 units, Supreme Ventures closed at $11, having gained 15 cents with 50,150 shares changing hands. Productive Business Solution US ordinary shares closed at 65 US cents trading 1,920 units, Proven Investments US ordinary shares closed at 22 US cents, after losing 1.99 US cents in exchanging 241,067 units and JMMB Group 7.5% preference share closed traded at $1.19 with 171,913 units.

 

Do you really know your adviser?

Berger Paints is worth more than $20 per share.

The directors of Berger Paints should have their resignation letters ready for signing after in early October, as their continuing service will be in conflict with the recommendation they gave minority shareholders who seem set to rebuff it.
Investors need to be adequately informed as there are wolves out there to help snatch valuables from them. Salada Foods is a very profitable entity after the broker to a takeover offer and audit firm recommended shareholders to sell their shares for an undervalued amount back in the 1980s. According to the auditor, the plant was obsolete and coffee powder was no longer accepted by consumers. The broker suggested that minority shareholders will have to eat their shares for their stupidity in not accepting the offer. Three decades on and the company remains profitable and debt free and those shareholders who held their shares have done extremely well by doing so. I wrote at the time of the offer that it was unfair. I gathered that the chairman Mr. Charles Ransom at the time, on a flight back to Jamaica, dammed John Jackson for killing the offer, when he saw the story that was highly critical of the offer. That was a few days before the vote that rejected the offer.
In 2010 the first Junior Market listing IPO was condemned outright by a featured article in the Friday Business Observer, followed by a series of comments by doomsayers. The arguments against the offer were so uninformed that I wrote an article defending it fully.
One of the critics wrote, “I looked over their prospectus the very day it was released and came to the very same conclusion that this price is pie in the sky!! I have a degree in Finance and I invest in companies on the JSE, including Mayberry and I think this is a sad day in IPO valuation. They had the opportunity to set the standard for the Jr. JSE and they are muggin it up. The conclusion I draw from their pricing is that they take the Jamaican investor for idiots, like so many companies in Jamaica. And they are playing on peoples’ greed. I would love to invest in this company and if it hits the market I will wait for the price to realign to it’s proper valuation before buying.”
And yet another investors comments, “Mr. Jackson everyone has a right to his or her opinion, you Sir should have done your homework. I am not a stock broker, but I was interested in the offer and did my research, after reading the Prospectus I decided not to take up the offer.”
“Look at likely future earnings, the future of Access Financial looks BAD. WHAT IS THEIR BUSINESS??? SUB-PRIME LOANS. In the USA a company such as this would be called a predatory Lender. The business model looked okay 3 to 4 years ago, but now it just looks dismal. Most of the clients the forward looking statement alludes to are people who live paycheck to paycheck. With all the talk of layoffs and cutback in the Jamaican economy, how does the principal of Access expect their business to grow?”
“One point made in the prospectus is that Government does not regulate this particular company, and therefore they can keep their interest rate on their products higher. Look at the percentage of bad loans recorded for 2008, and then compare that to the 9.09% projected non-performing loans in the prospectus. Come now Mr. Jackson, does this sound right to you?”
In response to my article saying the market is huge the reader had this to say,“How is the market huge when this company’s business model caters to small and micro business sector? Take an informal survey on how many micro business have pulled down their shutter since the year started. If I did not have access to information I might have called you for guidance as a stockbroker, what a disappointment that would have been.”
My current response, they made a big mistake in reading the prospectus first, as they would have done far better had they done the right thing. One investors who was advised to buy, did just that and enjoyed wonderful returns.
Earlier this year, a brokerage house was recommending Cargo Handlers as a buy in the $20 range when the PE ratio was in the 50 region. Another last year recommended investors sell Barita Investments, saying the stock was not worth much more than just over $2. Where are these two stocks at presently? One is much lower than the recommendation and one much higher? And for naysayers in Access Financial who cause a number of persons to stay out of Access, they may have learnt from the experience, hopefully as the stock now trades at the equivalent of $460 per share and never fell below the issued price once. In addition investors have reaped a large amount in dividends and the growth goes on. The Berger Paints recommendation to sell is just another of those poor valuations done by persons who don’t really know how to value listed companies. The market will speak in a few weeks on this.

Berger investors rebuffing Ansa offer

Berger Paints traded at a high as $11.55 on Tuesday.

The main market of the Jamaica Stock Exchange closed trading with 25 securities changed hands, with declining stocks just edging out advancing ones, while 3 stocks traded in the US dollar market.
The market closed with 9 stocks advancing and 11 declining based on the price the trade took place.
Some noted trades include Berger Paints that continues to trade above the price on $10.88 offered by Ansa Coatings to acquire the minority holdings. Investors continue to rebuff the offer by buying the stock at the close at $11 with 153,142 shares changing hands, up to $11.55 and a low of $10.85. The stock closed with a bid to buy 103,462 units at $11 and just 2,935 units offered at $11.70 and few shares offered close to this range.
Some other trades of note are Jamaica Producers 4 million unit trade with the price dropping nearly $1 and a $3.75 jump in the price of Seprod.
At the close of market activity, Barita Investments traded at $8.15, having lost 85 cents with 4,900 units, Cable and Wireless lost 3 cents to close at $1.05 with 18,708 shares, Caribbean Cement traded $2 lower to $28 with only 240 units, Carreras closed at record high of $11.50, gaining 25 cents with 223,703 shares trading, Grace Kennedy fell 99 cents and settled at $42.01 with 11,117 shares. Jamaica Broilers closed at $16.04, losing 86 cents with just 200 units, Jamaica Producers dropped 99 cents to $15.01 exchanging 4,075,641 shares, Jamaica Stock Exchange ended with a loss of 65 cents at $6.35 with 5,000 units, JMMB Group closed at $21 trading 14,000 shares. Kingston Properties closed at $7 with 598,296 shares changing hands, Kingston Wharves exchanged 1,500 units at $32, Mayberry Investments gained 20 cents, closing at $4.70 with 11,020 shares, NCB Financial Group traded 98 cents higher to $89.98 with 42,825 shares, 1834 Investments rose 10 cents and closed at $1.40 with 3,480 units. PanJam Investment gained $1.43, closing at $35.50 with 103,000 shares, Pulse Investments closed at $1.40, losing 30 cents with 58,680 shares trading, after the company released audited accounts showing lower profit in 2017 than in 2016, due mainly to the treatment of taxation. Sagicor Group closed with gains of 50 cents at $34.50 trading 8,700 shares, Sagicor Real Estate Fund closed at $11, after gaining 38 cents with 2,747 units, Salada Foods fell 50 cents, trading at $8 with 9,000 shares, Scotia Group closed $1 higher to $51 exchanging 147,026 shares, Seprod advanced $3.75 to $33 with 16,309 shares, Supreme Ventures closed 10 cents lower to $11 exchanging 145,884 shares. Productive Business Solution US ordinary share closed at 65 US cents trading 48,360 units, Proven Investments US ordinary share traded 27,635 units at 24 US cents, JMMB Group US 6% preference share exchanged 8,617 units at US$1.12, Jamaica Money Market Brokers 7.25% preference share closed at $2.50 with 650 units and JMMB Group 7.5% preference share lost 4 cents, closing at $1.15 with 100,000 units.

JSE trading dropped on Wednesday

Trading levels dropped sharply on the main market of the Jamaica Stock Exchange with 2 to 1 ratio to declining stocks on Wednesday but advancing stocks beat out declining ones more than 2 to 1.
Recent headliner Scotia Group traded up to $54 ahead of the results that were released after trading closed showing a reduction in profits for the third quarter.
At the close of the market, the volume of stocks changing hands and prices they last traded at are, Barita Investments closing at $9 with 100 units trading, Berger Paints ending with a loss of 50 cents, exchanging 25,657 shares to at $11, Cable and Wireless with a gain of 5 cents to $1.10 with 17,242 stock units. Carreras closed at $108 with 21,840 shares, Grace Kennedy ended at $42.05, gaining 5 cents with 21,302 shares. Jamaica Broilers shed 70 cents to $16.80, with 564,868 stock units, Jamaica Producers traded 25 cents higher to $15 with 124,041 shares, Jamaica Stock Exchange exchanged 126,810 shares at $6.49, while JMMB Group closed at $21.50, with gains of 50 cents trading 87,322 stock units. Kingston Properties closed at $7 with 1,325 shares, Kingston Wharves ended with a loss of 2 cents, at $30.48 with 700 units, Mayberry Investments closed at $4.80, gaining 30 cents with 168,080 shares, NCB Financial Group surged $2.45 to $90 with 9,494 units, 1834 Investments traded 230,583 units at $4.75. PanJam Investment with gains of 40 cents, closed at $34.25 with 103,619 shares, Portland JSX closed at $9.30 with 950 units, Pulse Investments fell 7 cents, to $1.75 with 31,081 shares, Radio Jamaica closed at $1.20 with 243,587 units, Sagicor Group added 20 cents to close at $33.25 with 28,717 shares, Sagicor Real Estate Fund closed at $11 with 5,150 units, Salada Foods ended with a loss of 50 cents, to close at $8 trading 1,500 shares, Scotia Group gained $1 to $54, in exchanging 58,264 stock units, Seprod advanced $1.25 to $29.25 with 750 units, Sterling Investments ended at $12 with 61,000 shares, Supreme Ventures added 10 cents to $11 with 358,560 shares. Proven Investments US ordinary shares exchanged 1,606 units at 23 US cents, JMMB Group 7.25% preference share closed at $1.50 with 361 units and JMMB Group 7.5% preference share traded 1,435 units at $1.19 after losing 1 cent.