Trading picked up over Mondays levels in Tuesday’s trading on the Jamaica Stock Exchange with the prices of 7 stocks rising and 8 declined as 30 securities changed hands resulting in 6,769,006 shares trading valued at $93,106,961.
Main Market| The JSE Market Index inching up by 68.50 points to 69,499.13 and the JSE All Jamaican Composite index moved up 76.59 points to close at 76,420.86
Gains| Stocks recording gains at the end of trading in the main market are Caribbean Cement trading of 10,000 shares to close with a gain of 20 cents at $2.95, Carreras gained 50 cents to close at $34 with 1,100 units changing hands, Kingston Wharves with 216,216 shares as the price gained 10 cents to close at $5, National Commercial Bank with 173,550 shares to close with a gain of $1.20 at $18.50 and
Scotia Group with 428,791 units to close with a gain of 50 cents to end at $19.
Firm| The stocks in the main market to close without a change in price at the end of trading are Berger Paints with 6,161 units to close at $1.66, Cable & Wireless 856,277 shares to close at 30 cents, Desnoes & Geddes with 2,500 units to close at $4.50, Gleaner 11,000 shares in closing at $1.10, Jamaica Producers with only 2,462 units to close at $15.60, Mayberry Investments 22,846 units to close at $1.45, prior to the close the stock hit a new 52 weeks intraday low of $1.35, Radio Jamaica 9,549 units to close at $1.29, Scotia Investments with 15,950 units to close at $21.50 and Supreme Ventures 2,500 units traded to close at $1.90.
Preference| Jamaica Money Market Brokers 7.50% preference share traded 48,750 units to close at$2 and the Jamaica Money Market Brokers 8.75% preference share 558,109 units to close at $3.03.
Declines| The number of stocks that declined in the main market are Grace Kennedy with 480,829 shares valued at $25,940,725 traded to close down 5 cents at $53.95, Jamaica Money Market Brokers 62,200 units lost a cent to end at $6.65, Proven Investments traded 2,470,874 shares lost 2 US cents to close at 16 us cents, Sagicor Group with 776,336 shares lost 8 cents to end at $8.80 and Salada Foods with 1,000 shares lost 20 cents to end at $7.80.
Junior Market| The JSE Junior Market Index declined by 7.03 points to close at 707.51 as 9 stocks traded with 2 advancing and 3 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Dolphin Cove with 700 units to close a gain of a cent to end at $8.51 and Jamaican Teas with just 1,383 units as the price inched up by 5 cents to end at $3.30.
Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the day before are Access Financial with 6,500 units to close at $13.50, Blue Power 1,900 units to close at $9.01
Caribbean Producers with 231,000 units to close at $2.65 and Consolidated Bakeries 9,910 units to close at 80 cents.
Declines| Stocks declining in the junior market at the end of trading are with Lasco Distributors trading 7,800 shares to close 2 cents down to $1.18, Lasco Financial 153,913 shares with the price falling 7 cents to close at $1 and Lasco Manufacturing with 198,900 shares close with a 3 cents fall to $1.07.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.
Pick up in market activity
Jamaica stocks fall again
In Friday’s trading on the Jamaica Stock Exchange there were more prices declining than rising as 24 securities traded, 6 stocks rose and 10 declined resulting from 3,903,650 shares trading valued at $25,770,886.
Main Market| 5 companies in the main market advanced and 8 declined as the indices lost altitude with the JSE Market Index erasing 599.73 points to close at 70,257.92 and the JSE All Jamaican Composite index falling 670.61 points to close at 77,269.32.
Gains| Stocks recording gains at the end of trading in the main market are Carreras in exchanging 326,379 shares to close with a gain of 20 cents at $$34.20, Mayberry Investments with 4,280 shares changing hands, gained 5 cents to close at $1.70, Sagicor Group with 78,268 units changing hands, rose by 5 cents to end at $8.95, Sagicor Real Estate Fund had just 710 units changing hands at $6.70 for a 20 cents gain and Scotia Group with 102,134 shares closed at $19.60 with a 60 cents gain, minutes before trading ended.
Firm| There were only 5 stocks in the main market to close without a price change as Cable & Wireless with 122,189 shares changing hands closed at 28 cents, Gleaner traded 50,000 units and closed at $1.10, Jamaica Money Market Brokers traded only 2,700 shares in closing at $7, followed by Jamaica Money Market Brokers 7.50% preference share with 154,000 units to end at $2 and the Jamaica Money Market Brokers 8.75% preference share traded 141,925 shares to close at $3.03.
Declines| The number of stocks that declined in the main market are Barita Investments with 5,000 shares to close at $2.25 while losing 5 cents, Desnoes & Geddes 28,300 units to close at $4.25 with the price slipping by 20 cents, Grace Kennedy traded 69,030 to close a cent lower at $54, Jamaica Broilers 24,927 shares to close at $4.70 while losing 5 cents, Jamaica Producers traded only 2,700 units in closing at $18.25 with a fall of a cent, National Commercial Bank 159,772 shares to close at $17.45, down 5 cents, Scotia Investments had 44,161 shares changing hands to close at $23 falling back by the same amount it gained the previous day of $2.49 and Supreme Ventures 60,000 units in closing at $2 but fell by a cent.
Junior Market| The JSE Junior Market Index declined by 1.33 points to close at 721.71 as only 6 stocks traded with one advancing and 2 declining.
Gains| Lasco Manufacturing traded 2,429,994 shares to close at $1.12 and gained 2 cents as the only stock to record a gain in the junior market.
Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the previous trading day are Consolidated Bakeries which traded just 1,000 units to close at 80 cents, Jamaican Teas 15,839 shares as the price closed at $3.21 and Lasco Financial put through 14,400 units at $1.15.
Declines| Stocks declining in the junior market at the end of trading are Blue Power with 50,942 shares to close at $9.01 with 9 cents decline and Caribbean Producers 15,000 units to close down 10 cents at $2.65.
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.
Portfolio adjustment pressure prices
A realignment of pension portfolio following the merger of Sagicor Investments with Sagicor Group In placed pressure on the prices of some stocks as the pension fund disposed of shares to bring the portfolio in line with the pension requirement. The realignment was not completed at the end of trading IC Insider sources advised.
In trading on the Jamaica Stock Exchange the prices of a mere 3 stocks rose and 10 declined as 23 securities traded resulting in 8,747,969 shares trading valued at $91,511,864.
Main Market| Only 2 companies in the main market rose and 8 declined as the indices lost altitude for yet another day with the JSE Market Index inching fell by 925.16 points to 71,355.85 and the JSE All Jamaican Composite index erased 1,034.48 points to close at 78,497, this is the lower the index has reached since December 20 last year went it closed at 78,575.66.
Gains| Stocks recording gains at the end of trading in the main market are Barita Investments with 3,780 shares to close with a gain of a cent to end at $2.30 followed by Seprod with 98,565 units changing hands as the price closed with a 20 cents gain at $11.
Firm| There were only 5 stocks in the main market to close without a change in price with Berger Paints trading 65,394 shares as the price closed at $1.67, Grace Kennedy with 56,859 units and closed at $55, Jamaica Money Market Brokers 8.75% preference share 128,400 units to close at $3.03, Kingston Wharves 5,000 shares to close at $5 and Mayberry Investments with 66,992 units in closing at $1.71.
Declines| The number of stocks that declined in the main market are Cable & Wireless 62,277 shares while losing 4 cents to close at 35 cents, Carreras traded 1,329 units at $35.26 while losing 54 cents, Hardware & Lumber 20,000 shares to close down 20 cents at $10, Jamaica Broilers 1,486,786 units in closing at $4.70 for a 5 cents fall, National Commercial Bank 2,614,665 units to close down 56 cents at $17, Sagicor Group 3,508,391 as the price lost 30 cents to end at $9, Scotia Group with 95,460 shares with the price closing down by 30 cents at $19.30 and Scotia Investments 28,235 units to close at $23.10 with a 40 cents fall.
Junior Market| The JSE Junior Market Index declined by 0.74 points to close at 730.97 as 8 stocks traded with 1 advancing and 2 declining.
Gains| The only stock recording gain at the end of trading in the junior market is General Accident with 10,000 units to close at $1.50 with a 2 cents rise.
Firm Trades| 5 stocks in the junior market stocks that traded to close at the same price as the day before with Caribbean Producers exchanging 540 shares to close at $2.75, Consolidated Bakeries 301,953 shares to end at 80 cents, Knutsford Express Services 37,868 shares at $5.16, Lasco Financial Services 2,500 units to close at $1.15 and Paramount Trading 2,575 units to close at $2.68.
Declines| Stocks declining in the junior market at the end of trading are Caribbean Cream traded 100,000 units to close at 70 cents with a 3 cents fall and Lasco Manufacturing with 50,400 units lost 2 cents to close at $1.12.
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 6 stocks with offers that were lower.
Declines more than gains
In Thursday’s trading on the Jamaica Stock Exchange the prices of 4 stocks rose, 6 declined and 14 traded remained unchanged as 24 securities traded resulting in 13,949,574 shares trading valued at $90,497,198.
Main Market| 4 companies in the main market advanced and 3 declined as the indices lost ground with the JSE Market Index inching fell by 571.31 points to 72,281.01 and the JSE All Jamaican Composite index lost 638.83 points to close at 79,531.48.
Gains| Stocks recording gains at the end of trading in the main market are Cable & Wireless trading 300,000 shares to close with a gain of 5 cents at 39, Jamaica Broilers 4,019,136 shares valued at $18,899,952 and closed 5 cents higher at $4.75, Scotia Group gained 2 cents to close at $19.60 with 139,656 shares changing hands and Seprod with only 1,000 units to close up 5 cents at $10.80.
Firm| There were 8 stocks in the main market to close without a change in price Berger Paints with 3,480 shares units in closing at $1.67, Caribbean Cement 1,133 shares with the price closing at $3, Carreras with 6,295 shares to close at $35.80, Jamaica Money Market Brokers 7.50% preference share, 347,829 units in closing at $2, Proven Investments 300 shares while closing at 18US cents, Radio Jamaica 7,025 units in closing at $1.29, Scotia Investments 665 shares to close at $23.50 and Supreme Ventures 45,900 units in closing at $2.
Declines| The number of stocks that declined in the main market are Jamaica Money Market Brokers with 167,634 shares to close at $7.10 while falling 11 cents, National Commercial Bank traded 38,099 units to end at $17.56 with 24 cents fall and Sagicor Group 5,351,670 units valued at $49,768,031 to close with a 20 cents fall to $9.30.
Junior Market| The JSE Junior Market Index declined by 4.79 points to close at 731.71 as 9 stocks traded with none advancing and 3 declining.
Firm Trades| The stocks in the junior market stocks that traded to close at the same price as the day before are Access Financial with 3,005 shares to close at $12, Caribbean Cream 50,000 units in closing at 73 cents, Caribbean Flavours 1,936 shares with the price ending at $2.50, Caribbean Producers only 1,072 units in closing at $2.75, Knutsford Express with 3,019,025 shares valued at $15,577,980 to close at $5.16 and Lasco Distributors with 7,504 units in closing at $1.40.
Declines| Stocks declining in the junior market at the end of trading are Consolidated Bakeries 289,710 units to close at 80 cents for a new 52 weeks low as the price slipped by 10 cents, Lasco Financial with 43,000 units to end at $1.15 with a 10 cents decline and Lasco Manufacturing with 104,500 units to close a cent down at $1.14.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 3 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.
Market on rebounds
In Monday’s trading on the Jamaica Stock Exchange the market rebounded when measured by the main market indices but the junior market index slipped. At the close, the IC bid-offer Indicator was flashing a strong signal of further rebound in prices. The main market indices recorded gains as the prices of 8 stocks rose and 11 declined with 28 securities traded in both markets resulting in 53,344,226 units changing hands valued at $30,050,258. C2W Music had one trade of 50,895,843 units valued at $21.37 million.
Main Market| AT the end of trading the JSE Market Index rose by 466.57 points to 72,492.60 and the JSE All Jamaican Composite index gained 521.70 points to close at 79,768.08 as all 8 stocks to rise came from this market while 5 declined.
Gains| Stocks recording gains at the end of trading in the main market are Caribbean Cement, trading 54,218 shares to close with a gain of 10 cents at $3.60, Carreras gained 35 cents to close at $34 with 1,000 units changing hands, Grace Kennedy traded 2,306 units to close at $56.50 with 50 cents gain, National Commercial Bank closed with 26,424 shares changing hands as the price close at $18.10 with a 10 cents gain but it traded as low as $17.16 before recovering towards the end of trading. Sagicor Group exchanged 62,900 units in closing 15 cents higher at $9.15, Sagicor Real Estate Fund traded 42,500 units at 30 cents higher in closing at $6.30, Scotia Group put in only 14,288 shares to end a cent higher at $19.51 and Seprod gained 70 cents with 5,000 units to close at $11.25 after the company reported increased profit in the quarter to March with a 50 percent increase to $473 million or 77 cents per share from operating revenue increase, of only 4 percent.
Firm| The stocks in the main market to close without change in price are Jamaica Money Market Brokers 8.75% preference share with 160,000 units to close at $3.03, Mayberry Investments with 18,858 shares while closing at $1.71, Pan Jamaican Investment with 10,800 shares while closing at $48.06, Proven Investments 67,200 units to close at 18US cents and Proven Investments 8% preference share 1,850 units to close at $5.09.
Declines| The stocks that declined in the main market are Desnoes & Geddes with 35,559 units while losing a cent to end at $4.49, Jamaica Broilers 62,900 units in closing at $4.71, down 9 cents, Jamaica Money Market Brokers 13,113 shares to close at $7.30 with a cent off, Jamaica Stock Exchange 925 units in closing at $1.95 as the price eased 5 cents and Kingston Wharves 8,300 shares to close 24 cents lower at $5.75.
Junior Market| The JSE Junior Market Index declined by 10.60 points to close at 735.64 as 10 stocks traded with none recording a price gain and 6 declining.
Firm Trades| The stocks trading in the junior market to close at the same price as the day before are Access Financial with 121,400 units to close at $11.50, Caribbean Cream with 1,250 units to close at 79 cents, Consolidated Bakeries with 3,000 shares in closing at $1.10 and Lasco Distributors with 1,357,149 shares to close at $1.35.
Declines| Stocks declining in the junior market at the end of trading are AMG Packaging trading 1,000 units at $3.49 as the price slipped a cent, C2W Music with 50,895,843 shares as the price lost 3 cents to end at 42 cents, KLE Group with 138,703 as the price eased by a cent for a new 52 weeks low of 93 cents, Lasco Financial 69,751 shares at 12 cents lower to end at $1.08, Lasco Manufacturing 102,884 shares as it closed at $1.14 for a 6 cents decline and Medical Disposables with 65,105 units to close with a cent off at $2.04.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 12 stocks with the bid higher than the last selling price and 7 stocks with offers that were lower.
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.
JSE Market gains 2,000 points
Scotia Group traded as high as $22.89 before closing at $20.50 and was the main factor in the big jump in the Jamaica Stock Exchange two main indices while the prices of 9 stocks rose and 8 declined as 27 securities traded resulting in 5,724,168 shares trading valued at $32,909,845.
Main Market| The prices of 5 companies in the main market advanced and 6 declined as the indices jumped as the JSE Market Index gained 2,054.10 points to 76,042.79 and the JSE All Jamaican Composite index jumped by 2,296.84 points to close at 83,737.81.
Gains| Stocks recording gains at the end of trading in the main market are Cable & Wireless with 1,290,256 units to close with a 2 cents gain at 44 cents, Carreras traded 3,594 shares to close with a gain of a cent at $33.57, Gleaner gained 5 cents to close at $1.15 with 20,000 units changing hands, Jamaica Money Market Brokers 1,494 units to close at $7.27 up by 5 cents and Supreme Ventures with 79,975 shares to close with a gain of 5 cents at $2.10.
Firm| There were 6 stocks in the main market to close without a change in price with Desnoes & Geddes trading 1,064 shares and closed at $4.50, Jamaica Broilers 715,645 units and closed at $4.85, Jamaica Money Market Brokers 8.75% preference share, 654,081 units to close at $3.03, Jamaica Producers 96,627 units at $18.26, Mayberry Investments 2,040 shares in closing at $1.70 and Scotia Group 868,539 shares to close at $20.50 but traded as high as $22.98.
Declines| The number of stocks that declined in the main market are Berger Paints with 10,000 units in losing a cent to end at $1.67, Caribbean Cement with 25,899 shares to close at $3.90 by falling by a cent, Hardware & Lumber 36,100 shares to close at $10.50 for a $1.20 fall, National Commercial Bank 57,933 shares to close at $18.10 for a 20 drop, Pan Jamaican Investment 2,400 units to end 23 cents lower at $49.05 and Sagicor Group with 23,157 shares in closing at $9.03 for a 47 cents fall.
Junior Market| The JSE Junior Market Index declined by 6.86 points to close at 747.40 as 10 stocks traded with 4 advancing and 2 declining.
Gains| Stocks recording gains at the end of trading in the junior market are Dolphin Cove that traded 1,000 units to close at $8.23 with a gain of 3 cents, Medical Disposables 391,382 shares to close with a one cent gain at $2.05, Jamaican Teas up 29 cents to end at $3.50 for 49,470 shares and Lasco Manufacturing traded 1,035,268 units to close up a cent at $1.20.
Firm Trades| 4 stocks in the junior market that traded to close at the same price as the day before with Access Financial Services trading 4,044 units at $11.50, Caribbean Producers with 200,000 units to close at $3, Consolidated Bakeries 108,000 to close at $1.10 and Lasco Financial Services 31,200 shares at $1.20.
Declines| Stocks declining in the junior market at the end of trading are General Accident that traded 7,000 units at $1.50 as the price lost 10 cents and Lasco Distributors with 8,000 units, closed 5 cents lower at $1.35.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had only 3 stocks with the bid higher than the last selling price and 8 stocks with offers that were lower.
Purity’s best year but poor Q4
Consolidated Bakery, better known as Purity, recorded a major improvement in profits from their ill-fated 2012 results. Buoyed by a 41 percent sales increase, the company ended the year with profits of $33 million or just 15 cents per share. Unfortunately for the initial IPO investors, the results although sharply improved, is yet to reach a level that would see the stock reaching its public issue price in the short term.
Results showed impressive quarterly growth, with the first quarter rising 172 percent, followed by 212 percent in the second quarter, 328 percent in the third quarter and 231 percent in the final quarter. Although sales climbed the fastest in last quarter by 52 percent, it resulted in only $2.7 million in profit. Revenues in the first two quarters averaged 32 percent and the third quarter climbed by 51 percent. Growth in revenues is helped by a number of new products the company launched in the past two years.
Gross profit | Gross profit margin improved in the year to reached 54 percent from 52.7 percent in 2012, still lagging gross profit of 62 percent in 2011.
Cost rose sharply in the year with administrative expenses climbing 23.5 percent to reach $123 million, an increase of $23 million and selling and distribution moving up by $23 million or 43 percent, a bit faster than the increase in revenues.
The company has work to do to improve what is a paltry return on equity of 7 percent even as the results exclude the payment of corporate taxes. The stock price to net asset value is only 50 percent and with the PE ratio is at 7 times last year’s earnings, which is at the upper end of valuation for junior market companies. Investors should not see much improvement here until new and improved results starts coming.
Borrowed funds that were at $40 million at the end of 2012 is up to $71 million but is at a very comfortable level with equity at $504 million. Cash funds available amount to $110 million at the end of 2013.
Watch this one | The company has room to grow faster than the economy for a while and this could make it a good growth prospects for investors looking long term. IC Insider’s forecast is 27 cents per share for 2014, suggesting that the price should be moving up from the current $1.10 level during the course of the year.
Tightness in the local economy, to which the company’s fortunes are predominantly tied, can negatively affect sales and cash flow. They seem to have navigated a tough 2013 unscathed and should be able to do well in 2014, which ought not be as challenging as last year. However, the pressures of last year could well weaken many of the company’s customers with the evidence showing up later. So far, that don’t seem to be the case and the next set of results due by mid-May will point to where the wind is blowing.
Related posts | Big profit jump at Purity | Consolidated Bakeries hiked profit
Big profit jump at Purity
Profit more than tripled before taxes at Consolidated Bakeries (Purity) and was up more than 400 percent after factoring taxation in the 2012 period to September, as profit after tax rose to $30.4 million up from $5.7 million, a 429 percent increase. For the September quarter, profit rose to $6 million compared to the 2012 quarter when the company reported a loss of $2.8 million.
The improved numbers did not show up in the quarter over quarter results as profit was lower than the $10 million earned in the June quarter. Some of the improvement is a recovery from a bad period in 2012. The second half of 2012, the year Consolidated went public, was not a good one as the company recorded a loss in the period compared to a profit in the 2011 period.
Revenue for the nine month period increased by 37.6 percent to reach $500 million compared to revenue of $363 million for the same period in 2012. For the quarter, revenue is up by 53.2 percent over the same period in 2012 to reach $172 million up from $112 million. “These increases represent growth in both unit sales and average sales per customer. During the quarter under review, input cost increased due to exchange rate movements and other factors,” management stated in their report to shareholders. Gross profit margin came in at 49 percent for the quarter down from 53 percent in 2012 and is 54 percent year to date, an improvement over the 52 percent enjoyed in 2012.
It looks as if the company will enjoy profits in the order of $35-40 million for the year or earnings per share around 20 cents. The company is focusing on improved efficiency, increased sales from existing products and new ones for both the local and export markets.
Cash funds and investments are up to $99 million from $24 million last year September and $98 million at the end of December. Current assets are up to $205 million from $184 million at the end of 2012 helped by increased receivables and inventories which grew $40 million year over year. At the same time, current liabilities are down as a result of the clearing of overdraft balance of $13 million and taxation of $9 million leaving $61 million as owing to third parties. Borrowing is up from $19 million to $49 million at the end of September this year versus last year September.
Related posts | Consolidated Bakeries hiked profit | Consolidated Bakeries’ Q1 Profits Up
