
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.
The market made another run at
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.

All indications suggest that very few shareholders will take up the offer when it closes at the end of Monday.
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.
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.


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.
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.
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.
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.
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.
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.”
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.”
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.
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?”
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.