In Thursday’s trading on the Jamaica Stock Exchange, the prices of 9 stocks rose and 4 declined as 27 securities traded resulting in 2,717,621 shares changing hands valued at a mere $4,692,842.
Main Market| Six companies in the main market advanced and only two declined as the indices inched forward with the JSE Market Index closing up by 84.04 points to 73,062.97 and the JSE All Jamaican Composite index gaining 93.97 points to close at 80,405.85.
Gains| Stocks recording gains at the end of trading in the main market are Caribbean Cement that traded 100 shares to close with a gain of a cent, at $3.51, Desnoes & Geddes gained 10 cents to close at $4.50 with 373,319 units changing hands, Jamaica Money Market Brokers with only 322 units to close at $7.41 for a 6 cents rise, Pan Jamaican Investment with 1,819 shares to close at $48.60, up by 40 cents, Sagicor Group with 20,627 shares in closing at $9.50 for a gain of 15 cents and Scotia Group 32,000 shares in closing with a 30 cents gain at $20.
Firm| Stocks in the main market to close without a change at the close of the market are Berger Paints which traded with 7,799 units and closed at $1.67, Cable & Wireless 1,584,764 shares to close at 30 cents, Carreras 100 units to close at $34.75, Jamaica Broilers 6,669 shares to close at $4.71, Jamaica Producers 4,100 stock units, to close at $18.26, Kingston Wharves 2,000 shares to close at $5, Mayberry Investments, 12,239 shares to close at $1.80, National Commercial Bank 2,200 stock units to close at $18, Proven Investments 2,000 ordinary shares to close at 18 US cents, Proven Investments 8% preference share, 76,800 units to close at $5.09, Sagicor Real Estate Fund 4,417 units to close at $6.60 and Supreme Ventures 9,835 shares to close at $2.10.
Declines| The number of stocks that declined in the main market are Ciboney with 9,880 shares while losing 2 cents to end at 10 cents and Hardware & Lumber with 20,015 shares to close at $10.20 with a fall of $1.60.
Junior Market| The JSE Junior Market Index edged up by 0.46 points to close at 733.31 as 7 stocks traded with 3 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Caribbean Cream trading 70,000 units to close up a cent at 73 cents followed by Lasco Financial Services with 20,350 shares to close at $1.11 with a rise of 3 cents and Lasco Manufacturing 109,110 units to close at $1.16, with 16 cents gain.
Firm Trades| 2 junior market stocks traded with the price unchanged at the end of trading with KLE Group having 36,933 units changing hands at 93 cents and Lasco Distributors 249,100 shares to close at $1.35.
Declines| Stocks declining in the junior market at the end of trading are Cargo Handlers with 223 units at $14.01 as the price slipped by 30 cents and Caribbean Producers 60,900 shares to close at $2.75 with the price ending lower by 25 cents.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 8 stocks with offers that were lower.
Advancing stocks ahead at JSE
JSE hits 2014 low
In Friday’s trading on the Jamaica Stock Exchange the prices of 3 stocks rose and 7 declined as 22 securities traded resulting in 10,829,685 shares changing hands valued at $38,848,598.
Main Market| The prices of only 2 companies in the main market rose and 6 declined as the indices dropped to the lowest level for the year, with the JSE Market Index erasing 1,032.29 points to 72,026.03 and the JSE All Jamaican Composite index dropping by 1,154.27 points to close at 79,246.38. The previous low for the JSE All Jamaica Index was at 79,357.40 on December 27, last year.
Gains| Stocks recording gains at the end of trading in the main market are Desnoes & Geddes with 500,000 shares to close with a gain of 20 cents at $4.50 and Jamaica Money Market Brokers with 24,100 ordinary shares changing hands, gained a cent to close at $7.31.
Firm| There were 7 stocks in the main market closing without a change in price as Berger Paints with 19,500 shares closed at $1.67, Caribbean Cement traded 5,062 units and closed at $3.50, Carreras traded 10,000 units to close at $33.65, Gleaner 100,000 units in closing at $1.10, Grace Kennedy 394 units at $56, National Commercial Bank 467,250 shares at $18 and Salada with 6,065 units to close at $8.
Declines| The number of stocks declining in the main market are Cable & Wireless with 3,189,689 units while losing 5 cents to end at 30 cents, Jamaica Broilers with 1,933,332 units changing hands to close at $4.80 as the price fell 5 cents, Pan Jamaican Investment 14,874 shares to close at $48.06 for a fall of 44 cents, Sagicor Group 156,333 units to close at $9 with a loss of 10 cents, Scotia Group 470,716 shares to close at $19.50 as the price lost 56 cents and Seprod with 4,300 units as the price declined by 45 cents to close at $10.55.
Junior Market| The JSE Junior Market Index declined by 0.59 points to close at 746.24 as 5 stocks and one bond traded with none advancing and 2 declining.
Gains| There were no stocks recording gains at the end of trading in the junior market at the close of the week.
Firm Trades| The stocks in the junior market that traded to close at the same price as the previous trading day are 5,603 Cargo Handlers shares traded at $14.35, Consolidated Bakeries with 70,230 units to close at $1.10, 66,600 units of Eppley 9.5% preference share changing hands at $6.02, Lasco Distributors had 39,000 units traded to close at $1.35, Lasco Manufacturing traded 2,309,867 shares in closing at $1.20 and 9,000 Access 9% Unsecured Short Term Notes traded to end at $99.50.
Declines| Only one stock declined in the junior market at the end of trading with Lasco Financial with 1,436,770 units changing hands with a loss of 5 cents to close at $1.20.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 8 stocks with the bid higher than the last selling price and 10 stocks with offers that were lower.
Cargo Handlers’ solid quarter
For the December quarter 2013, revenues excluding interest income, grew by 23 percent for the Montego Bay based and junior listed Cargo Handlers and profit reached $27.99 million, up from $22 million in 2012. Total revenues amounted to $51 million, up from $41.6 million in the previous year’s quarter and operating revenues grew by 9 percent to $44.3 million. Operating expenses grew from $20 million to $23.4 million, an increase of 15 percent.
Earnings per share rose from 53 cents to 67 cents in the quarter, an increase of 26 percent. Earnings for 2014, which ends in September, should be close to $3 per share. For the year to September 2013, the company earned $2.27 per share.
The results do not yet reflect the proposed acquisition of the tanker operating company for transporting fuel. The company indicates that the acquisition should be concluded during February. A deposit of $69 million against the purchase was made and is included in receivables on the balance sheet in December at $95 million, an increase over $19 million as of September 2013. Cash is down from $131 million in September to $69 million at the end of December. The company is debt free.
The purchase will be fully in cash so there should be further depletion of cash when the deal is concluded. There should be some administrative cost savings as some of the functions now done by the transport company can be transferred to Cargo Handlers thus saving on cost.
A dividend of 50 cents per share was just declared by the company and is payable in March 6, 2014.
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Cargo Handlers announces acquisition
Cargo Handlers Limited advised that a resolution was passed by the Board of Directors at a meeting held on November 28, 2013 to invest in the Bulk Liquid Carrier Petroleum Limited. The company transports petroleum products across the island. CHL advised that this investment is expected to add $150 million in revenue.
Cargo Handlers just reported earnings of $85 million for the year ended September this year and ended up with cash of $131 million.
Related posts | Sexiness no, performance yes | Profits up at Cargo Handlers
Sexiness no, performance yes
Cargo Handlers is by no means a sexy company but what it lacks in sexiness is made up from performance.
For the year just ended to September, the company out of Montego Bay reported revenue increase of 31 percent over 2012 and a 32 percent increase in profit to reach $95 million, an increase on the $64.6 million in 2012 which was up 24 percent on 2011. In the year just concluded, profit was negatively affected by a million dollar charge for damaged cargo compared to $356,000 in the prior year, administrative cost rose just over 20 percent to $13.8 million and other operating cost was up at a much faster pace at 28 percent to reach $74.75 million.
Return on equity rose from 64 percent in 2012 to 75 percent in 2013 with equity being $137 million at year end and $72 million at the end of 2012. Dividend paid during the year amounted to $63.3 million almost twice the $36 million paid in 2012. The 2013 payment is 74.5 percent of profits or a return on the stock price of $12 at the start of the fiscal year of 14 percent. The high level of payout may have been tied to the higher tax that was applied to dividends starting in April this year rather than a decision to effect a permanent increase. In 2012, the payout ratio was just under 56 percent or 96 cents per share.
The audited financial statements indicated by way of a note that by resolutions dated 19 December 2012 and 17 February 2013, the Board of Directors approved the payment of interim dividends in the amounts of $0.68 and $1.00 per share respectively. In the prior year, resolutions dated 15 December 2011 and 2 July 2012 approved interim dividend payments of $0.64 and $0.32 per share respectively. Based on the simplicity of the operation, there is hardly any need to stock pile cash. As such investors can expect a healthy payout each year, thus providing a good source for income.
The company ended up with cash of $131 million at the end of the year and total current assets of $150.7 million and current liabilities stood at only $20 million. The company owes related parties $30 million and related parties owe them $25 million at the end of September.
Stock outlook | Profits may have grown well in the year just ended with some of the increase flowing from the change in value of the local currency. How much gains can be expected going forward is unsure. Suffice to say, the stock looks like a reasonable income provider.
Related posts | Profits up at Cargo Handlers | Cargo Handlers profits up 38%
Image courtesy of Sailom/FreeDigitalPhotos.net
Profits up at Cargo Handlers
The latest quarterly results for Cargo Handlers may not look impressive when compared with the 2012 figures, but the numbers actually beat last year’s by nearly 16 percent when it hit $22.6 million for the quarter to June. For the nine months to June, profits which are at $63.6 million, are up 29.6 percent over the $49 million generated in 2012. Revenues from the main operations is up to $115 million for the nine months from $95 million in 2012, a gain of 21.6 percent and for the quarter to June, revenues are $40 million from $34.6 million in 2012, a gain of 15.6 percent, slower than the nine months growth.
Earnings per share is 54 cents for the quarter and $1.53 year to date and looks as if earnings for the full year will top $2. For 2012, earnings came in at $1.73 per share. While profits are up, this company seems more like a dividend stock than one for great capital gains. Nevertheless, with the price around $13 for the stock and earnings in the $2 range there is room for price appreciation.
Administrative expenses didn’t move by much, from $6.16 million to $6.4 million year to date but other operating expenses are up 19 percent in the latest quarter and for the nine months, the increase was 29.4 percent.
At end of June, cash stood at $89 million, current assets at $123 million and current liabilities at just $20 million and is well covered. Shareholders’ equity stands at $108 million.
Dividend | Last year the company paid $1 per share in two dividends. So far they have made a dividend payment of $1 earlier in the year. No more should be expected, but you will never know.
Cargo Handlers operates out of Montego Bay and carries out stevedoring services.
Related Posts | Cargo Handlers profits up 38%
Cargo Handlers profits up 38%
Cargo Handlers enjoyed a boost in revenues and a 38 percent increase in profit for the six months to March this year. The business is an uncomplicated business, it deals in one main area providing stevedoring services on the wharf in Montego Bay. The company has plant and equipment of with a book value of $11.5 million, an indication of its size. Current assets on books at March this year was $134.6 million and current liabilities $36.2 million. Included in current assets is cash of $102 million. There is no interest bearing debt, another indicator of simplicity.
What the company may lack in sophistication is more than made up in its ability to earn positive and quite robust profits. For the March quarter, the company bettered the earnings of 2012 by netting $18.9 million this year compared to $15.98 million in the 2012 first quarter from revenues of $40.6 million and in the 2012 March quarter $27.7 million. For the six months to March, revenues are up 35 percent to $82.3 million. Earnings per share for the quarter came out at 45 cents and 98 cents for the six months.
The results were achieved despite a $10 million increase in operating expenses compared to what was incurred in 2012 when $9.7 million was incurred in this area. On a year to date basis, $37.7 million was incurred for this cost item versus $28 million in 2012.
The stock is an income play with a high pay out rate. In the last twelve months it paid dividends of $70 million.
