In Monday’s trading on the Jamaica Stock Exchange, the prices of 5 stocks rose and 4 declined as 24 securities changed hands resulting in a moderate volume of 1,236,101 shares trading, valued at only $6,501,176.
During the early hours of trading, more than 5 million shares of Scotia Group traded but 5 million units were cancelled, due to what the stock exchange said was an error on the buying brokers behalf resulting more stocks being traded than was the official order.
Main Market| The JSE Market Index rose by 197.76 points to 71,909.56 and the JSE All Jamaican Composite index moved up 221.14 points to close at 79,116.15.
Gains| Stocks recording gains, the volume traded and last traded prices, at the close in the main market, are Carreras with 4,113 shares to close with a gain of 90 cents at $34.90, Gleaner with 10,670 units changing hands, gained a cent to close at $1.12, National Commercial Bank 63,229 units with a gain of 94 cents to $19, Proven Investments 52,500 US dollar ordinary shares with an increase of 0.0100 US cents at 18 cents US and Scotia Group with 1,700 shares to end up a cent higher at $20.01.
Firm| The volume and last traded prices of stock trading in the main market to close without a change in price, are Berger Paints with 2,000 shares closing at $1.62, Cable & Wireless 152,455 units at 30 cents, Caribbean Cement with 3,000 shares changing hands at $2.50, Desnoes & Geddes with 645 units at $4, Kingston Wharves 34,221 shares at $5, Mayberry Investments 3,040 units at $1.55, Radio Jamaica 33,556 shares at $1.22, Sagicor Real Estate Fund 18,000 shares at $6.36, Scotia Investments 2,255 units at $21 and Supreme Ventures 17,400 shares at $1.95.
Declines| The only stock end of trading in the main market with a price decline is Sagicor Group with 247,000 shares, down 4 cents to end at $8.96.
Preference| Jamaica Money Market Brokers 8.75% preference share, traded 341,022 units at $3 and Proven Investments 8% preference share 3,500 units at $5.05.
Junior Market| The JSE Junior Market Index increased 4.73 points to close at 632.01 as 6 stocks traded with none advancing and 3 declining.
Gains| There were stocks recording gains in the junior market at the close.
Firm Trades| The active stocks in the junior market to close at the same price as the day before, are Caribbean Cream with 48,060 units at 70 cents, Caribbean Producers 65,000 shares at $2.45 and Consolidated Bakeries with 55,000 units at 80 cents.
Declines| Stocks declining in the junior market at the end of trading, are AMG Packaging that had 7,145 units trading, with a 21 cents fall to $2.89, Caribbean Flavours 3,400 shares closed with a 6 cents loss at $2.45 and Lasco Manufacturing with 67,190 units as the price fell 10 cents to 90 cents.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 14 stocks with bids higher than their last selling prices and 5 stocks with offers that were lower.
Quiet start to trading week
Advancing stocks dominant
In Monday’s trading on the Jamaica Stock Exchange advancing stocks was most dominant as June started with price mostly up with the prices of 14 stocks recording gains and 5 declined as 30 securities traded resulting in 3,459,512 shares trading valued at $16,201,075. There was one new all-time high at the end of trading as Access Financial recorded a $1.50 increase.
Main Market| The price of 10 companies in the main market rose and only 3 declined as the indices moved up with the JSE Market Index rising by 312.54 points to 70,570.46 and the JSE All Jamaican Composite index moved up by 349.47 points to close at 77,618.79.
Gains| Stocks recording gains at the end of trading in the main market are Barita Investments 1,150,000 shares and rose 9 cents to close at $2.34, Carreras with 11,652 units trading closed with a gain of$1.05 at $35.25, Desnoes & Geddes gained 5 cents to close at $4.30 with 11,025 units changing hands, Gleaner with 20,000 shares closed up by 2 cents at $1.12, Jamaica Broilers 69,833 shares an d gained a cent to close at $4.71, Mayberry Investments 1,122 units and gained 6 cents to close at $1.76, National Commercial Bank had 17,894 shares trading up by 5 cents to close at $17.50 after trading as low as $16.55 before the close, Pan Jamaican Investment put in only 507 units to close at $48.42 for a 2 cents rise, Radio Jamaica had 3,500 shares changing hands with a cent gain to close at $1.30 and Sagicor Group traded 851,708 units to close at $9.30, up 35 cents.
Firm| There were only 4 ordinary stocks in the main market to close without a change in price as Berger Paints with 3,592 units and closed at $1.66, Cable & Wireless with 293,293 shares changing hands to close at 28 cents but traded as high as 32 cents during trading. Grace Kennedy traded 2,561 units and closed at $54, Scotia Investments had 700 shares trading and closed at $23 after profits results to April quarter showed a 12 percent increase to $415 million and Seprod with only 124 units and closed at $10.50.
Preference shares| There were a series of preference shares trading on the market with Jamaica Money Market Brokers 7.50% preference share having 50,000 units changing hands and closed at $2, Jamaica Money Market Brokers 8.75% preference share 651,500 units and closed at $3.03, followed by Jamaica Public Service 5% C preference share, 500 units to close at 36 cents and Jamaica Public Service 5% D preference share, 8,945 units to close at 35 cents.
Declines| The number of stocks that declined in the main market are Caribbean Cement with 1,500 to close at $2.70 with a decline of 15 cents, Jamaica Producers traded just 270 shares as the price eased by a cent to close at $18.24 and Scotia Group with 109,330 units to close at $19.07 after shedding 53 cents following the release of six months showing a 16 percent decline in profits to $2.28 billion for the in the April quarter from a one percent fall in revenues and a decline of profit after tax for the six months of $4.7 billion versus $5.3 billion in 2013.
Junior Market| The JSE Junior Market Index gained 11.60 points to close at 733.31 as 8 stocks traded with 4 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Access Financial traded 7,765 shares and gained $1.50 to close at $13.50 for a new all-time high, Caribbean Cream with 100,000 to close a cents higher at 75 cents, Caribbean Flavours put on a cent to close at $2.51 while trading 38,500 units and General Accident Insurance with 10,191 units gained 2 cents to close at $1.52.
Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the day before with AMG Packaging having 1,500 units trading to close at $3.30 and Lasco Financial 5,000 shares and closed at $1.15.
Declines| Stocks declining in the junior market at the end of trading are Honey Bun 2,000 units to close with a 3 cents fall to $3.02 and Lasco Manufacturing with 35,000 shares to close at $1.10 down 2 cents after full year results to March this year was down to $584.45 million or 14 cents per share compared with $640 million for 2013.
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 4 stocks with offers that were lower
Declining stocks dominate trade
The Jamaica Stock Exchange continues to lose ground with more stocks falling than rising as the prices of only 5 stocks rose and 12 declined with 25 securities traded resulting in 2,034,342 shares trading valued at $8,897,265 but the junior market index rose although the two main market indices fell.
Main Market| Only 2 companies in the main market advanced at the end of trading and one from the US dollar market and 6 declined as the indices moved down with the JSE Market Index erasing 432.21 points to close at 72,697.29 and the JSE All Jamaican Composite index lost 483.28 points to close at 79,996.96.
Gains| Stocks recording gains at the end of trading in the main market are Cable & Wireless in trading 51,164 shares to close with a gain of 2 cents at 34 cents, Margaritaville gained 2 US cents to close at 12 US cents with 340 units changing hands for the first time since listing to close at a new high and Sagicor Group swapped 177,506 units 5 cents higher to end at $9.30.
Firm| There were 6 stocks in the main market to close without a change in price with Grace Kennedy trading 1,000 units and closed at $55, Jamaica Broilers 156,467 shares closing at $4.70, National Commercial Bank 25,550 shares to close at $18, Radio Jamaica 30,895 shares closing at $1.29, Sagicor Real Estate Fund 4,940 units in closing at $6.60, Scotia Group 109,624 shares to close at $19.70.
Declines| The number of stocks that declined in the main market are Caribbean Cement with 30,316 shares while losing 20 cents to end at $3.30, Carreras 11,000 shares to close at $34.75 with a $1.20 decline, Gleaner 74,821 stock units to close with a cent down at $1.10, Pan Jamaican Investment as it traded 15,486 shares to close at $48.10 with the price falling by 40 cents, Salada Foods down by 10 cents while trading 2,830 units at $7.90, Scotia Investments 10,635 shares to close at $23.50, a decline of $2 and Supreme Ventures 316,847 stock units to close with a loss of 10 cents to $2 for a new 52 weeks low.
Junior Market| The JSE Junior Market Index rose 3.56 points to close at 729.12 as only 9 stocks traded with 2 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Jamaican Teas with 49,530 units to close at $3.45 as the price rose by 24 cents and Lasco Financial Services traded 31,500 shares to close 5 cents higher at $1.15.
Firm Trades| The 2 stocks in the junior market stocks that traded to close at the same price as the day before are Caribbean Producers with 50,000 shares closing at $2.73 and Lasco Distributors with 222,054 units to close at $1.40.
Declines| Five stocks declined in the junior market at the end of trading are AMG Packaging in trading 5,000 units to close at $3.30, down 19 cents, for a 52 weeks low, Caribbean Flavours with 53,065 units to close with a 20 fall to $2.50, followed by Consolidated Bakeries 157,299 as the price declined by 18 cents in light of the reduced profits reported for the March quarter to end at 92 cents. The company saw profits fall 48 percent to $7.4 million in the March quarter from reduced gross profit margin in spite of a 14 percent rise in sales revenues to $197 million. General Accident 200,198 shares to close at $1.48 with a one cent fall and Lasco Manufacturing that is expected to report final results for the year to March by the end of May traded 246,275 units to close with a one cent loss at $1.14.
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 5 stocks with offers that were lower.
JSE Market gives up much ground
In Wednesday’s trading on the Jamaica Stock Exchange the market slipped more than it gained on Tuesday as big capitalisation stocks, Desnoes & Geddes, Sagicor Group and Cable & Wireless slipped in value with the prices of 5 stocks rising and 9 declining as 24 securities traded resulting in 8,461,785 shares changing hands valued at $29,734,524. At the close market sentiment was reflecting continued negative movements for a while.
Main Market| Only 4 companies in the main market advanced and 8 declined as the indices plummeted with the JSE Market Index dropping by 2,428.50 points to 73,614.29 and the JSE All Jamaican Composite index shedding 2,715.48 points to close at 81,022.33.
Gains| Stocks recording gains at the end of trading in the main market are Hardware & Lumber trading 64,500 shares to close with a gain of $1.30 cents at $11.80, National Commercial Bank with 7,976 units changing hands to close at $18.50and gained 40 cents, Caribbean Cement with 84,939 shares to close at $4, with an increase of 10 cents and Scotia Group only 500 shares to close at $20.55 for a 5 cents gain.
Firm| There were only 6 stocks in the main market to close without a price change as Jamaica Broilers with 22,080 shares closed at $4.85, Jamaica Money Market Brokers 8.50% preference share traded 10,000 units and closed at $3.50, Jamaica Money Market Brokers 8.75% preference share closed at $3.03 while exchanging 221,600 shares, Proven Investments 8% preference share traded 612,900 units at $5.09 followed by Seprod with 171,083 units at $10.80 and Supreme Ventures with 17,000 units to close at $2.10.
Declines| On a day when declining stocks overwhelmed advancing ones, the number of stocks that declined in the main market are Cable & Wireless with 1,903,766 shares as investors tried to get out of the stock as it the closed at 40 cents having slipped by 4 cents, Desnoes & Geddes with 697,860 shares while losing 40 cents to end at $4.10, Gleaner with 8,000 shares to close 5 cents lower at $1.10, Grace Kennedy 40,258 units in closing at $56.50 as the price slipped a cent, Pan Jamaican Investment with 97,716 shares in closing at $48.51 down by 54 cents, Radio Jamaica 24,000 units traded to close 4 cents lower at $1.28 and Sagicor Group with 576,077 shares closed at $8.90 with the fall of 13 cents.
Junior Market| The JSE Junior Market Index declined by 2.99 points to close at 750.39 as 7 stocks traded with only one advancing and 2 declining.
Gains| Lasco Financial traded 41,000 units to close at $1.30, up 10 cents, was the only stock with a gain at the end of trading in the junior market.
Firm Trades| 4 stocks in the junior market traded to close at the same price as the day before with Caribbean Flavours trading 11,121 units at $2.70, Caribbean Producers 121,513 shares to end at $3, Consolidated Bakeries 40,000 units in ending at $1.10 and Lasco Manufacturing with 1,066,000 shares to end at $1.20.
Declines| Stocks declining in the junior market at the end of trading are Dolphin Cove trading 222,681 units at $8.20 for a 3 cents fall and Lasco Distributors 2,399,215 shares at $1.30 down 5 cents.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator flashed negative sentiment showing 5 stocks with the bid higher than the last selling price and 9 stocks with offers that were lower.
Caribbean Flavours a new IPO
Update Monday, 30th September | Mayberry Investments advised that the company has reconciled all applications in respect of Caribbean Flavours & Fragrances Initial Public Officering (IPO). There was full allotment for all reserved applications which included board of directors, staff, Mayberry Investments and Key Partner. The first 10,000 shares applied for by the public were allocated in full and balance over 10,000 units were allocated with approximately 19.355 percent of what was applied for.
Update Thursday, 26th September | Lead broker Mayberry Investments Limited announced that the initial public offering (IPO) of shares in Caribbean Flavours & Fragrances Limited (CFF) is oversubscribed and was closed at 9:01 am on Wednesday. Applications were received in excess of the $50.6 million on offer. The public will be advised of the basis of allotment by Friday, 27th September 2013.
The junior market of the Jamaica Stock Exchange should be welcoming its 19th listing in the form of Caribbean Flavours & Fragrances Limited (CFFL) as the company goes to market to sell up to 22,480,008 ordinary shares at j$2.25 per share. After the issue, the total number of shares will be 89,920,033 making it one of the smaller listed companies.
The company is one of the largest businesses of its kind in the English speaking Caribbean. It is engaged in the manufacturing and distribution of flavourings and water soluble colourings for the food, beverage, baking, confectionery and pharmaceutical industries and is a key supplier of these products. It also manufactures and supplies fragrances used in household cleaning, body care, aroma therapy and air freshener products.
Incorporated on 23rd February 2001, its business and assets were purchased from prior owner Bush Boake Allen Jamaica Limited and is a supplier to predominantly commercial customers in Jamaica, Trinidad and Tobago, Grenada, Barbados, St. Kitts, Guyana, USA and Canada. Its customers are well known names in the food and beverage business.
CFFL sources essential oils and natural extracts worldwide and receives key ingredients and technical support from International Flavors & Fragrances Incorporated (IFF), responsible for more than 70 percent of the company’s supplies. IFF is a US$5 billion company listed on the NYSE and is a member of the S&P 500 Index. Lascelles deMercado is a key local supplier, providing alcohol for use in fragrance distillates and other items. Some of the supplies used are commodities with variable prices linked to world markets. The company aims not to carry more than 6 months’ stock of supplies.
CFFL has one competitor in the local market, Virginia Dare (Jamaica) Limited. In the view of the Directors, their particular business focus is on the supply of custom blended products for large local businesses and this distinguishes it from their competitor that supplies retail and smaller business clients with generic products such as bulk syrups.
Income | Revenues amounted to $193.9 million in the 2012 financial year, an 8 percent increase over the $179.4 million recorded in the prior financial year. During 2012 financial year, the company generated increased gross profit of $79.4 million versus $60.9 million in 2011 fiscal year due to increased sales of its products and higher margins of 40.95 percent, compared with 33.95 percent in the 2011 financial year.
Operating Expenses totaled $72.94 million for the 2012 financial year, a year on year increase of 24.5 percent due mainly to increased promotional activity and compensation to directors. CFFL recorded improved Profit before Taxation in for the year, which grew to $6.46 million compared to the $2.36 million for the prior year.
Revenues for the 12 month period ended June 2013 was $229.89 million, increasing 19 percent over the $193.87 million recorded for the 2012. The growth in revenue was driven by increased sales of the products in the fragrance line of the business. Gross Profit totalled $92.73 million compared to $79.39 million. Total operating expenses amounted to $60.49 million for the year, 17 percent less than the $72.94 million recorded for the year prior. This decline was due to a reduction in directors’ fees. Other Income totalling $16.80 million is due mainly to sale of property. Finance Income was $2.53 million for the year. Profit before taxation totalled $51.57 million for the latest fiscal year and net profit amounted to $40.32 million.
Assets totalled $97.52 million as at June 2013, $22.90 million less than the $120.42 million at June 2012. The decline is due to the sale of property. During the period the company reduced the amount outstanding to directors resulting in liabilities totalling $31.45 million as at June, 2013 versus $94.7 million as at the end of 2012 financial year. Shareholders’ Equity stood at $66.06 million at the end of June 2013.
Earnings per share before taxation is 46 cents putting the PE around 5 times earnings to June this year, providing room for some appreciation in the short term. The negative is that the company and its management is not well known and the number of stock in issue is small creating and illiquid situation.
The Directors anticipate a payment of an annual dividend of not less than 25 percent of the annual net profits after payment of any applicable taxes where “such profits are available for distribution, subject to the Company’s need for reinvestment of some or all of its profits from time to time in order to finance the growth of the business of the Company.”
