Elite Diagnostics grabs 77% of trades

Recently listed Elite Diagnostics dominated trading on Junior Market on Friday with 4 million shares or 77 percent of trading, with no trade exceeding 172,000 units.
On Thursday the company accounted for just over 84 percent of volume of stocks trading resulting in 6,672,725 units, up from 2,520,373 shares that were exchanged on Wednesday. The market closed on Friday with 21 securities changing hands, up from 18 on Thursday, resulting in an exchange of 5,241,602 units valued at $19,221,963, compared to 7,902,138 units valued at $25,165,370 on the prior trading day.
The Junior Market index advanced 12.59 points to close at 2,928.28 as the prices of 7 securities advanced, 7 declined and 7 remained unchanged.
Trading ended with an average of 249,600 units for an average of $915,332 compared to an average of 439,008 units for an average of $1,398,076 on Thursday. An average of 288,936 units at an average value of $1,632,571 traded, and previously 291,636 units at an average value of $1,681,793. In contrast, January closed with an average of 122,386 shares, valued at $489,704 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 8 stocks ending with the bid higher than the last selling price and 1 with a lower offer.
At the close of the market, AMG Packaging ended 40 cents higher at $2.45, with 20,000 stock units, Blue Power concluded trading at $34.87, with 910 units, CAC 2000 finished at $9, with 7,000 shares, Caribbean Cream ended trading $1.53 higher at $7.52, with 296,348 shares, Caribbean Producers finished trading 10 cents higher at $4.40, with 70,595 units. C2W Music ended with a loss of 6 cents at $0.45, with 58,350 shares, Dolphin Cove finished 15 cents higher at $17, with 100,200 stock units, Elite Diagnostic settled with a loss of 11 cents at $2.90, with 4,055,011 units, Eppley ended trading with a loss of 40 cents at $10.10, with 100 shares. FosRich Group finished trading 10 cents higher at $2.70, with 12,000 shares, General Accident closed with a loss of 5 cents at $2.80, with 61,920 stock units, Iron Rock finished at $3, with 111,500 shares, Jamaican Teas ended trading 28 cents higher at $4.78, with 9,700 stock units. Jetcon Corporation traded at $4.60, with 67,077 units, Lasco Distributors concluded trading with a loss of 3 cents at $4.37, with 31,891 stock units, Lasco Financial finished at $5, with 104,930 units, Lasco Manufacturing settled at $4.43, with 2,783 shares. Main Event ended trading at $6, with 5,067 shares, Medical Disposables fell 15 cents to $4.85, with 16,950 shares, Stationery and Office closed with a loss of 6 cents at $5, with 24,091 units and tTech concluded trading 40 cents higher at $5.40, with 185,179 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.

Elite Diagnostics dominates trading with 84%

Elite Diagnostics accounted for 84.4% of Thursday’s Junior Market trading.

Recently listed Elite Diagnostics accounted for just over 84 percent of volume of stocks trading resulting from 6,672,725 units, up from 2,520,373 shares that were exchanged on the Junior Market, on Wednesday.
The market closed on Thursday with 18 securities changing hands, resulting in an exchange of 7,902,138 units valued at $25,165,370 compared to 4,892,740 units valued at $17,902,241 on Wednesday.
The Junior Market index advanced 24.40 points to close at 2,915.69 as the prices of 4 securities advanced, 6 declined and 8 remained unchanged.
Trading ended with an average of 439,008 units for an average of $1,398,076 down from an average of 212,728 units for an average of $778,358 on Wednesday. An average of 291,636 units at an average value of $1,681,793 traded, and previously 282,425 units at an average of $1,699,526. In contrast, January closed with an average of 122,386 shares, valued at $489,704 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 8 stocks ending with the bid higher than the last selling price and 3 with lower offers.
At the close of the market, AMG Packaging ended with a loss of 5 cents at $2.05, with 302,021 stock units, CAC 2000 finished with a loss of 99 cents at $9, with 13,372 shares, Cargo Handlers settled at $10.90, with 2,000 shares, Caribbean Cream ended trading at $5.99, with 109,883 shares, Elite Diagnostic settled with a loss of 2 cents at $3.01, with 6,672,725 units. Eppley ended trading at $10.50, with 1,356 shares, Express Catering traded 10 cents higher at $4.70, with 22,638 shares, FosRich Group finished trading 10 cents higher at $2.60, with 208,907 shares, Honey Bun concluded trading with a loss of 12 cents at $5.13, with 92,847 shares. Iron Rock finished at $3, with 2,099 shares, KLE Group closed at $2.30, with 60,000 shares, Knutsford Express ended $1.90 higher at $15, with 300 shares, Lasco Distributors concluded trading at $4.40, with 80,604 stock units. Lasco Financial finished at $5, with 170,459 units, Lasco Manufacturing settled 3 cents higher at $4.43, with 57,395 shares, Main Event ended trading with a loss of 50 cents at $6, with 22,170 shares, Stationery and Office closed at $5.06, with 34,000 units and tTech concluded trading with a loss of 40 cents at $5, with 49,362 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.

Elite list on Junior Market but no trade – Tuesday

Elite Diagnostics fresh from a recent initial Public Issue that was heavily oversubscribed failed to record a trade at the close of the market on Tuesday but investors put through trades in the market up to $3.30 with 391,447 shares which were canceled at the close.
Elite can trade up to $3.38 on Wednesday. At the end of trading, the stock close with bids to buy 2.95 million shares at $2.60, 30 percent higher than the IPO price of $2. Elsewhere, Caribbean Producers traded 20 million shares at $4.30 and Iron Rock Insurance traded 3.9 million units at $3 on a day of heightened volume.
The Junior Market index advanced 11.92 points to close at 2,883.68 on Tuesday, as the prices of 5 securities advanced, 8 declined and 5 remained unchanged.
The market closed with 18 securities changing hands, resulting in 24,250,087 shares valued at $100,904,262 trading, compared to 20 securities trading on Monday with 6,699,330 shares valued at $22,327,925 securities changing hands.
Trading ended with an average of 1,347,227 units for an average of $5,605,792 in contrast to an average of 334,967 units averaging $1,116,396 on Monday. An average of 806,402 units at an average value of $1,779,476 traded, and previously 211,318 units at an average value of $1,500,635. In contrast, January closed with an average of 122,386 shares, valued at $489,704 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 7 stocks ending with the bid higher than the last selling price and 3 with lower offers.
At the close of the market, Blue Power concluded trading 84 cents higher at $33.85, with 140 units, Caribbean Cream ended trading with a loss of 10 cents at $4.90, with 711,797 shares, Caribbean Flavours traded with a loss of 1 cent at $10.89, with 2,700 stock units, Caribbean Producers finished trading with a loss of 10 cents at $4.30, with 20,002,400 units, Dolphin Cove finished 85 cents higher at $16.85, with 3,868 stock units. FosRich Group traded 1 cent higher at $2.51, with 19,710 shares, General Accident finished trading at $2.80, with 10,450 shares, GWest Corporation closed at $2.74, with 1,540 stock units, Honey Bun ended at $5.25, with 9,227 units. Iron Rock concluded trading at $3, with 3,192,000 shares, Jetcon Corporation ended trading at $4.60, with 300 stock units, Knutsford Express closed with a loss of 1.90 cents at $13.10, with 3,330 shares, Lasco Distributors ended 15 cents higher at $4.50, with 39,144 shares. Lasco Financial concluded trading with a loss of 5 cents at $5.20, with 39,231 stock units, Lasco Manufacturing finished 75 cents higher at $4.45, with 76,794 units, Main Event settled with a loss of 4 cents at $5.76, with 42,810 shares, Stationery and Office finished trading with a loss of 11 cents at $5.40, with 56,198 stock units and tTech ended with a loss of 60 cents at a 52 weeks’ low at $5, with 38,448 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.

Elite shares start trading on Tuesday

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The latest initial public offer to hit the capital market, Elite Diagnostic,will be listed on Tuesday on the Junior Market of the Jamaica Stock Exchange and will bring the number of listed companies to 35.

The issue that was heavily oversubscribed could see trading taking place at the maximum allowable on the first day which is 30 percent above the IPO price of $2 up to $2.60.
On Wednesday, the price could surged above 30 percent if the bid were to close above $2.60 on Tuesday but not exceeding $3.38 which could result in the price hitting $4.39.
The company offered 70,680,000 Ordinary Shares to the public which were aggressively taken up by investors with applications for 614,190,600 units were received from 3,346 investors with a value of J$1,228,381,200. The public offer was oversubscribed by more than 10.5 times.
A total of 3,257 Application for Shares were received from the general public who will receive the first 15,000 units with the balance in excess, allocated 3.383 percent.
IC Insider.com forecasts profit of 22 cents per share for the current year to June and 35 cents for 2019. With the heavy demand for the stock and the sharp fall in Treasury bill rates the prospects of the price reaching $4 should not be ruled out.
Sagicor Investments and NCB Capital Markets were the brokers to the issue.

$1.22 billion chased 71M Elite shares

Elite Diagnostics could be in the Junior Market TOP 10 by the end of 2018.

Elite Diagnostic initial public offer of 70,680,000 ordinary shares were aggressively taken up by the General Public and place the issue as the one to have attracted the largest number of subscribers.
Applications for 614,190,600 units were received from 3,346 investors value of J$1,228,381,200.
The public offer was oversubscribed by more than 10.5 times and only one category of reserved shares was fully subscribed to, with 6,160,000 shares reserved for Medical Practitioners, receiving 54 applications. Applications from this group covered 19.046 million shares valued at $38,092,600, the first 70,000 units were allotted in full with balance getting 10.062 percent.
A total of 3,257 applications for shares were received from the general public who will receive the first 15,000 units with the balance in excess, receiving 3.383 percent.
A total of 12 applications for shares valued at approximately 1.555 million shares were received from Directors and Employees of the Company for the 4,060,000 shares reserved.
Five Affiliated Doctors applied for 142,000 out of the 700,000 shares reserved for them, two Affiliated Entities applied for just 56,000 of 420,000 shares reserved for them. Eight Referring Doctors Tier 1 applied for 2,240,000 of the 6,160,000 shares reserved. Applications from Referring Doctors Tier 2 applied for 1.011 million shares from the 1,900,000 shares reserved for them.
Sagicor Investments and NCB Capital Markets were the brokers to the issue.

Elite IPO is now closed

Elite Diagnostics initial Public offering of 70.68 million shares to raise just over $141 million, is said to have been closed at midday on Monday, the new opening date.
The level of subscription is unknown presently as the brokers have to be collecting applications from various locations throughout the country. The issue was delayed due to errors in the prospectus that had to be amended before it could reopen. The shares which were priced at $2 each are expected to list on the Junior Market of the Jamaica Stock Exchange and will enjoy 10 years of tax concession that will result in no corporate taxes in the first 5 years and then for the next 5 years at 50 percent of the normal tax rate. the listing will bring to 35 the number of ordinary share listings on the Junior Market.
IC insider.com projects earnings to just over 25 cents for the current year to June and 35 cents for the next fiscal year.

Elite IPO fully subscribed

Elite Diagnostics could be in the Junior Market TOP 10 by the end of 2018.

Word reaching IC Insider.com from usually reliable sources, is that the much delayed Initial Public Offer for Elite Diagnostics was oversubscribed before the revised prospectus was posted on the Jamaica Stock Exchange on Monday. 

The company is issuing just over 70 million shares at a price of $2 each and a PE ratio around 9 times estimated 2018 earnings and just under 6 times 2019 estimated earnings. The shares were to have officially opened on Monday January 22, but was put off until Wednesday 24, following amendment to include depreciation that was omitted from interim results to September, and then was pulled to correct errors in the interim results balance sheet and cash flow statement. The issue will now officially open on Monday February 5 and is expected to list on the Junior Market of the stock exchange that will see profit being tax free for 5 years and at half the regular rate for the second 5 years. Brokers for the issue are NCB Capital Markets and Sagicor Investments.

Investors not properly protected in Jamaica

C&W should release to shareholders December 2017 results and 5 years forecast that was given to the valuators.

All concerned should be pleased that good sense has prevailed and the Elite IPO has been put off for now the IPO while they correct the errors in the prospectus, in keeping with this publication’s recommendation.
The matter brings to the fore once again, the inadequacy of capital market monitoring leaving investors’ with a false sense of security that they are being lead to believe.
What are some of the facts? The rules for takeover on paper is meant to protect minority shareholders, in fact they hardly do. Minority shareholders in many cases are not in a strong position to assess if they should or should not surrender their shares in a takeover bid. Worse the directors’ recommendations are fraught with problems. Most directors are not serious stock market investors and are not equipped to make a proper assessment of the company’s value, in order to make a proper recommendation to shareholders.
A good example of this, is the takeover attempts for all the shares of Berger Paints last year which was accompanied by directors’ report recommending acceptance of the offer and contained false information which was used to try and convince shareholders that they should surrender their shares. No one in authority seems to have called for proof of the information included in the circular to support their view or asked for correction of the error. Nor were the company required to provide shareholders with up to date financial information, which is not now a requirement but ought to be.

Berger Paints

Cable & Wireless directors are recommending the sale of the shares to the majority owner but have not provided shareholders with results to December, last year or forecast earnings. There is no rationale for this critical information to be provided to valuators but not to the persons who count – shareholders. So Why have the shareholders not be given such information?
The C&W offer is being made at a time when the company’s fortunes have improved considerably and could end with a profit or small loss in 2017. From IC Insider.com assessment, the company is in a very good position to report a good level of profit in 2018 with interest cost set to fall by around $1 billion per year and revenues set to rise. Investor should get more information as to the 2017 results and forecast for two or so years to enable them to make an informed decision.
The market place has dealers who blatantly breach agreements with clients but no regulator in the sector does anything about. So while the Minister of Finance is proud of the success of the Junior Market, he is unaware of the tsunami that lies just below in the system that he is minster over and one day could explode.

Elite IPO put off for now

The initial public offer of 71 million shares in Elite Diagnostic that was to have opened to the public on Monday January 22 but put back to Wednesday January 24 has been put off once again.
The prospectus that was originally planned for release in early December included results for the first quarter of the current fiscal year to September with errors that lead to an understating of expenses and over stating of profit as well as errors in the amounts relating to fixed assets in the cash flow and balance sheet.
According to a recent release from the company, “Elite, after consulting with its Financial Advisors, has decided to update certain statements made in its prospectus dated December 11, 2017 and Addendum dated January 17, 2018. The revised statements and the new Opening and Closing Dates will be published on the JSE’s website as soon as possible.”
IC Insider.com who first brought the errors in the report to the public had written after the addendum was released that the company needed to withdraw the prospectus and have the figures properly checked and audited before releasing it again to the public.

Junior stocks set for strong 2018

IC Insider.com Junior Market TOP 10 stocks for 2018

Junior market stocks performed better than main market stocks in 2017 but that performance does not show in the gains in the market indices of both markets.
The Junior Market rose just 5.3 percent at the end of the year, down from a high of 31 percent in May.
The pull back of the index from its peak pushed the market into very negative technical readings. The first negative is a head and shoulder pattern, then the deadly cross where the short and medium term moving averages have fallen below the long term moving average and to that is an examination of the potential gains for individual stocks show that more two third of them are valued around or above the market average for 2017 earnings. That means that there is not much ammunition left to seriously push this market much higher based on 2017 profit out turn. Weighting down on the juniors is a series of company results that are not reflected positive price driven data.

General Accident could be a leader in the Junior Market in 2018 as they benefit from higher premium rates.

The reports include, Paramount Trading with strong rise in revenues for the November quarter but lower profits as administrative cost rise Caribbean Cream enjoyed a strong 18 percent increase in revenues but that could not overcome a rise in administrative and direct cost in the November quarter, resulting in profit falling from $19 million in 2016 to less than $1 million in 2017 and helped to push six months profit to $71 million versus $137 million in 2016. AMG Packaging revenues jumped 24 percent in the quarter to November but increased cost wipe the sales gains away and more to leave a profit of $10 million versus $18 in the prior year period.
Express Catering is continuing to deliver strong increased earnings but the stock is already well priced and so too is Knutsford Express at which revenues rose by 18 percent in the November quarter but at a slower pace than in the prior year. For the August quarter and profit grew by just 15 percent, with half year earnings per share coming in at 19 cents, full year earnings should come close to 50 cents but the stock is already a high price relative to the overall market.
The positives in the market is that the 45 days moving average is now over stretched and should enjoy some rebound sooner than later. Looking fully at 2018 thinks appear brighter with IC Insider.com pointing to 14 stocks including the IPO, Elite Diagnostics that could double in price and around 8 that could gain over 50 percent.

Elite Diagnostics could be in the Junior Market TOP 10 by the end of 2018.

Based on projected earnings for 2018, the average PE ratio suggests that Junior Market stock prices should grow by 36 percent. Technical readings have the junior market moving to 3,900 points, 43 percent higher than the end of 2017, before major resistance sets in.
The Top 10 Junior market stocks are taken from those listed at the start of 2018. The list therefore excludes Elite Diagnostics which should end in the top of 2018 best Junior Market stocks at the end of the year.
The list comprise some 2017 under performers, insurance companies that should benefit from increased premium income and in the case of Key Insurance reduced administrative cost. Paramount Trading is adding new product lines that should not only boost top line but with bottom-line growth, while Caribbean Producers and Dolphin Cove will benefit from the strong growth in tourism.