Investors responded well to the National Commercial Bank’s year end results, showing earnings of $4.73 per share and with a surprise announcement, of a final dividend, of 96 cents per share.
The stock immediately traded at $17.75 at the opening of the market, and at $17.99 with the purchase of 448,385 shares. Later it traded just 12,412 units at $18.75 and 1,700 at $19 and then fell back to $18.15. Bids to buy start at $18.20 at the high end then $18.15, then $18.10 with a small amount at $18.05 then at $18, an amount of 147,000 units. The lowest offer is now at $20 with 29,918 units then the next serious offer is at $24. The total amount to trade so far is 475,780 units. The stock has room to move much further over the next twelve months with IC Insider’s forecast of $5.50 earnings per share for 2015 and the PE of the stock at 3.8 based on this year’s results. that is one reason why IC Insider gave the stock a Buy Rated status.
The price gain helped to move the All Jamaica Composite index up 521.71 to 81,121.66.
NCB shoots to $19 falls back to $18.15
Witco sales down, profits up
West Indian Tobacco reported profit before taxation of TT$436.4 million for the nine months ended September, 2014, an increase of 13 percent over the corresponding period in 2013.
Profit after taxation for the period amounted to TT$329.3 million, 16 percent increase. For the quarter, profit of $106 million was achieved, versus $97 million, in 2013, but revenues fell to $282 million from $287 million, in the 2013 quarter. Revenues increased from $843 million to $872 million for the nine months.
Cost of sales improved in the 204 quarter, and raised gross profit to $714 million versus $171 million and for the nine month, to $542 million from $496 million. Cost was mostly down with distribution cost falling from $14 million to $11.4 million and administrative expenses reaching $70.45 million in 2014 compared with $74.93 million in 2013. Other Operating Expenses rose to $23.55 million from $21.15 million.
The company seems on target to hit $6 per share for the year to December. For the coming year the recent price adjustment, is set to help push dollar sales and move profits up for 2015.
The Board approved the payment of a third interim dividend of $1.39 per ordinary share payable on 13 November. For the year to date Witco would have paid $3.57 inclusive of the November payment, compared with $2.93 last year.
The company is a subsidiary of BATCO and is listed on the Trinidad Stock Exchange.
NCB hikes dividend, profit up 36%
National Commercial Bank has hiked the final for this year to 96 cents per share to stockholders on Thursday December 11, from only 16 cents last year December.
The dividend will be due to Stockholders on record at November 28. The banking group paid 16 cents per share in December, last year. NCB reported net profit of $11.6 billion, an increase of 36 percent or $3.1 billion to generate earnings per stock unit of $4.73 for the year to September.
The final payment for 2014, brings the total dividends, for the year to $1.98. National Commercial Bank made dividend payment of 35 cents per share in August 25, on May 22, the payment was 35 cents per share and 32 cents per share on February 20 this year.
JMMB maintains dividend
Jamaica Money Market Brokers (JMMB) is holding the December 2014 dividend payment steady, with the amount paid last year, at the same time.
JMMB declared of a dividend of 16 cents per ordinary share payable to shareholders on record as at November 21. to be paid on December 16, 2014. The stock will trade ex-dividend on November 19, 2014.
The company paid a dividend of 17 cents per ordinary share on June 26, this year. A payment of 16 cents per share was made on December 18, last year.
Grace profit up but much work needed
Grace Kennedy’s profit is growing nicely at 21 percent but the nice bump up is due to lower taxation than from normal trading gains. Revenues in the September quarter, rose by the highest level for the year, with an 18 percent increase, against a lower 15 percent year to date, hitting $20.76 billion from $17.56 billion in 2013, for the quarter and $59.28 billion in the nine months to September, from $51.46 billion in 2013.
Pretax profit only grew by 9.5 percent well below the revenue growth, to $1.12 billion from $1.02 billion in 2013 and for year to date, $3.7 billion versus $3.36 billion, a 10 percent gain. Lower taxes helped push net profit up by 21 percent for both the quarter and the nine months’ period, to $704 million from $584 million in 2013, for the quarter, and $2.38 billion from $1.98 billion year to date.
As impressive as the profit gains appear, the sprawling group has much work to do, with annualized return on equity below 10 percent, based on the net profit to date. Management in commenting on the results states “the domestic segment has been focusing on several projects to enhance efficiency, capacity and profitability. These projects include product improvement, more efficient energy utilization and providing assistance to our local raw material suppliers.”
Elsewhere, the acquisition of Le Foods is expected to start the full marketing of the Grace products in 2015, which is expected to deliver higher margins for the group, a spokesperson for the group indicated shortly after they acquired the company, earlier this year.
Margin got squeezed, as operating cost rose faster than the growth in revenues, helping to keep profits down, but Grace’s traditional stream of business lines in foods, have not delivered increased profits so far, in 2014.
Segment results tell an eloquent tale of what happening within the group and the stagnation that exist. The food business that so much hope is pegged on, delivered little increase profit year over year, with the 2014 period delivering $879 million versus $874 million in 2013, in spite of revenues rising 21 percent to $40 billion from $33 billion, in 2013. Banking and finance showed lower results, with a fall to $275 million from $505 million in 2013. The insurance segment recovered from insurance liability adjustment in 2013, to post a profit of $448 million from a loss of $25 million in 2013. The money transfer business has been the star performer for the group with segment profits of $1.64 billion versus $1.35 billion in 2013.
The stock traded at $60 on Friday on the Jamaica Stock Exchange and is priced at a PE around 5 times 2014 earnings which should come in around $12 per share. The net book value is $106 per share, well ahead of the price. There is room for growth for the stock and a buy for medium to long term gains can pay off well. Grace just declared a dividend of 85 cents per share bringing the total for the year to $2.33.
Dividends at Carreras, Grace & Proven
Carreras will be paying another interim dividend of $1.20 per stock unit out of accumulated profits on December 11, 2014, to stock holders on record at November 20.
The stock will trade Ex-Dividend on November 18, 2014.
Grace Kennedy will pay an interim dividend of $0.85 on December 16, 2014 to stock holders on record at November 28, 2014. The stock will trade Ex-Dividend on November 26, 2014.
Proven Investments has advised that a dividend of US$0.0012 will be paid on December 2, 2014. The record date is November 18, 2014 and the X-dividend date is November 14, 2014 and J$0.10 was declared to Preference Shareholders with record date December 9, 2014 and payable on December 23, 2014. The ex-dividend date for the stock is December 5, 2014.
Republic trades big but Is Scotia bottoming?
Scotiabank traded nearly 30,000 shares on the Trinidad Stock Exchange on Tuesday, making it the fourth largest trade since 236,520 units were traded on May 22 at $70, just before the bank released its six months result, showing a sharp fall in profit for its second quarter. Prior to today’s trade, Scotia traded 200,069 units at $68.94, on July 9 and 40,719 shares on July 31, at $66.74 each.
The next closest volume, was a trade of 25,042 units at $60.80, on September 25. The amount traded today has been on offer from October 24 at $58. The big question, is the end of the decline from $70 which started in May, coming to an end? At the close there was a bid to buy only 100 units at $57.50 and a small offer to sell 317 units at $58. The PE ratio of the stock is just over 16 times this year’s earnings, and is close to Republic Banks PE, suggesting that the decline may not have long to run, but buying ahead of the October year end results, may be tempered while the release is pending. Regardless, Investors should be putting this one on their Watch List, now that the price has declined a fair amount.
The Market closed with 14 securities changing hands of which 2 advanced, 3 declined and 9 traded firm, with a total of only 261,908 units, valued at $15,296,503, with Republic accounted for $12 million of the trade, down from Mondays $15.7 million.
At the close of the market, the Composite Index lost 0.62 points to close at 1,146.56, the All T&T Index fell by 1.25 points to close at 1,962.15 and the Cross Listed Index remained unchanged at 43.38.
Gains| Trinidad Cement had 3,949 shares trading, gained 1 cent to end at $2.01 and West Indian Tobacco climbed 4 cents to end the day at $118.56 while trading only 50 shares. The company announced an increased final dividend for 2014 of $1.39, up from $1.07 last year.
Declines| The stocks declining at the end of trading are, Angostura Holdings that added 9,627 shares valued at $120,338 to end with a fall of 3 cents at $12.50, First Citizens Bank traded 6,519 shares to close with a loss of 5 cents at $36.75, Republic Bank with 100,076 shares changing hands for a value of $12,084,190, suffered a loss, of 35 cents to close at $120.75.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Ansa McAL with 3,525 shares to close at $66.15, Clico Investment Fund with 29,360 shares valued at $648,856 to end at $22.10, Guardian Holdings contributed 5,812 shares at $13.50, Jamaica Money Market Brokers with 50,000 shares being closed at 45 cents, Massy Holdings traded 386 shares at $68.55, One Caribbean Media with 1,150 units, closed at $25.25, Praetorian Property Mutual Fund traded 20,000 units to remain at $3.40, Prestige Holdings closed at $9.55 after trading 1,906 shares and Scotiabank contributed 29,548 shares with a value of $1,713,784 to end at $58.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower.
Proven to consider a dividend
The Board of Directors of Proven Investments will to consider dividend payments to both its ordinary and preference shareholders at a meeting on November 4.
A dividend of US$0.0022 per ordinary share was paid on December 3, last year. For 2014, the investment company, paid dividends of US$0.0020 per share to ordinary shareholders on June 24 and US$0.0015 per ordinary share, on March 13, this year.
The net profit for the quarter to June 2014, excluding a loss on extra ordinary activities and gain on purchase of subsidiary amounted to US$1.18 million, an increase of 14.3 percent, compared to the same period last year.
JMMB to consider a dividend
The Board of Directors of Jamaica Money Market Brokers will meet on November 7, to consider an interim dividend payment on the company`s ordinary shares.
The company paid a dividend of 17 cents per ordinary share on June 26, this year. A payment of 16 cents per share was made on December 18, last year.
JMMB Group posted net profit of $558 million and earnings per share of 34 cents for the quarter to June this year, 26 percent lower than the $754 million earned in 2013. The decline in the June quarter, contrast with a 5 percent increase in profit for the March 2014 quarter over the 2013 period.
D&G to up December’s dividend?
The payment of a dividend based on the financial year ended June, 2014, will be considered by Desnoes and Geddes at a meeting scheduled for Wednesday, October 29.
The company paid an interim dividend of 20 cents per share and a special dividend of 5 cents per share on December 20, last year.
They also paid interim dividend of 10 cents per share and a special dividend of 15 cents per share on May 16, this year. Profit after tax, for the 2014 fiscal year was $3.15 billion, but excluding the gain from the shares the company had in two breweries in the eastern Caribbean, it would have been $2.2 billion or an increase of 80 percent, instead of the 160 percent increase the net result shows. This means that shareholders can look forward to a healthy increase in the dividend to be declared.