The Trinidad and Tobago Stock Exchange closed on Wednesday, with the volume of stocks traded rising marginally over Tuesday levels, resulting in an exchange of 23 securities up from 19 on Tuesday, with three stocks rising, 10 declining and 10 remaining unchanged.
A total of 629,483 shares were traded for $6,392,446 compared to 610,819 units at $6,673,839 on Tuesday. An average of 27,369 units traded at $277,932 compared to 32,148 shares at $351,255 on Tuesday, with trading month to date averaging 42,060 units at $403,375 versus 43,249 units at $413,534 on the previous trading day. The average trade for July amounts to 28,304 units at $283,023.
The Composite Index fell 3.75 points to 1,375.15, the All T&T Index fell 3.80 points to 2,034.20 and the Cross-Listed Index shed 0.52 points to end at 93.77 at $282,572.
Investor’s Choice bid-offer indicator shows two stocks ended with a bid higher than their last selling prices and none with a lower offer.
At the close, Agostini’s lost 50 cents to end at $43.50, with 5,006 shares crossing the exchange, Angostura Holdings ended at $26.98 with investors transferring 300 stocks, Ansa McAl remained at $57 with the swapping of 36,025 stock units. Calypso Macro Investment Fund dipped 21 cents in closing at $20 after trading 100 units, Clico Investment Fund ended at $31 after trading 32,517 units, First Citizens Group fell 14 cents to $49.85 after a transfer of 6,791 shares. FirstCaribbean International Bank declined 3 cents to $5.47 after an exchange of 1,425 stock units, GraceKennedy remained at $5.39 with investors trading 1,517 stocks, Guardian Holdings shed 79 cents to end at $25.51, with 881 stocks changing hands. Guardian Media remained at $3.10, with 100 shares crossing the market, 
JMMB Group ended at $2.31 in exchanging 239,686 units, Massy Holdings increased 3 cents to close at $4.73, with 14,203 stock units crossing the market. National Enterprises climbed 2 cents to $3.60 while exchanging 127,914 stock units, National Flour Mills rallied 3 cents to $1.60 in trading 1,573 units, NCB Financial Group dropped 5 cents to end at $5 with a transfer of 135,293 stocks. One Caribbean Media remained at $4 after an exchange of 455 shares, Prestige Holdings ended unchanged at $6.70 in switching owners of 1,000 shares, Republic Financial Holdings declined 49 cents to $140.01 with an exchange of 944 units. Scotiabank ended unchanged at $78 in exchanging 5,376 stocks, Trinidad & Tobago NGL dipped 46 cents to $24.50, with 11,710 stock units clearing the market, Trinidad Cement remained at $3.52 as investors exchanged 237 shares. Unilever Caribbean lost 40 cents to end at $12.20 after 400 units crossed the market and West Indian Tobacco dipped 5 cents to close at $23.40 after trading 6,030 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trinidad stock market falters on Wednesday
Junior Market trading climbs
Trading closed on the Junior Market of the Jamaica Stock Exchange Tuesday, with the volume and the value of stocks exchanged rising marginally more than on Monday even as 42 securities traded down from 44 on Monday and ended with 16 rising, 18 declining and eight unchanged, with Everything Fresh closing at a record high.
A total of 8,431,893 shares were traded for $28,060,749 compared to 8,102,411 units at $24,915,028 on Monday. Trading averaged 200,759 shares at $668,113 from 184,146 shares at $566,251 on Monday, with the month to date, averaging 383,235 units at $1,275,094 down from 395,154 units at $1,314,742 on the previous trading day. July closed with an average of 512,709 units at $2,574,304. At the close, the Junior Market Index dipped 3.86 points to 4,119.65.
Jamaican Teas led trading with 2.19 million shares for 25.9 percent of total volume followed by Dolla Financial with 1.17 million units for 13.8 percent of the day’s trade and Lasco Manufacturing with 988,487 units for 11.7 percent market share.
The PE Ratio, a measure of computing appropriate stock values, averages 12.6. The PE ratios of Junior Market stocks incorporate ICInsider.com projected earnings for companies with financial year end that falls between November this year and August 2023.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Access Financial lost 47 cents to end at $27 after exchanging 2,302 shares, Blue Power climbed 20 cents in closing at $3.20 with the swapping of 785 units, CAC 2000 advanced 50 cents after ending at $6.55 and trading 3,080 stocks. Derrimon Trading declined 18 cents to $2.14 in switching ownership of 441,890 stock units, EduFocal dipped 10 cents to close at $2.60 after exchanging 159,084 stocks, Everything Fresh gained 12 cents in ending at a record closing high of $1.78 after trading 155,141 shares. Express Catering dropped 29 cents after ending at $5.21 in an exchange of 10,165 stock units, Fontana shed 25 cents to end at $9 while exchanging 67,997 units, General Accident fell 19 cents to close at $5.70 after a transfer of 1,015 stocks. Honey Bun increased 10 cents to $8.10, with 1,215 shares crossing the market, Indies Pharma rose 20 cents in closing at $3.20, with 79,862 stock units changing hands, Lasco Distributors rallied 10 cents to $3.10 after 7,169 units crossed the market. Lasco Manufacturing popped 11 cents to $4.27, with 988,487 stock units changing hands, Limners and Bards dipped 13 cents to close at $2.72 in exchanging 20,827 stocks, Lumber Depot declined 22 cents to end at $2.81 with investors transferring 40,827 units. 
MFS Capital Partners rallied 46 cents to $4.16 with a transfer of 146,976 shares, Spur Tree Spices fell 20 cents in closing at $3.75 after trading 442,143 units, Stationery and Office Supplies shed $1.28 to close at $16.10 with 17,136 stock units changing hands and Tropical Battery dropped 15 cents to end at $2.60 as investors exchanged 32,803 shares.
In the preference segment, CAC 2000 9.5% preference share climbed 26 cents to $1.16, with 450 stocks crossing the exchange.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
The JSE Main Market drops
Main Market stocks suffered another blow in trading on the Jamaica Stock Exchange on Tuesday, with the All Jamaican Composite Index falling 7 percent below the start of 2022 as the volume of stocks traded fell 69 percent but with a 44 percent higher value than on Monday flowing from trading of 56 securities compared to 56 on Monday, with 20 rising, 26 declining and ten ending unchanged.
The All Jamaican Composite Index dropped 2,541.98 points to 407,422.08, the JSE Main Index rose 619.64 points to 357,814.48 and the JSE Financial Index slipped 0.24 points to close at 86.18.
Investors exchanged 10,035,795 shares for $130,106,528 versus 32,269,822 units at $90,087,830 on Friday. Trading ended with an average of units at 179,211 at $2,323,331 versus 546,946 shares at $1,526,912 on Monday, and month to date, an average of 889,671 for $5,503,694, compared to 937,035 units at $5,715,718 on the previous trading day. July closed with an average of 173,643 units at $1,683,017.
Wigton Windfarm led trading with 3.76 million units for 37.5 percent of total volume, followed by Transjamaican Highway with 966,173 units for 9.6 percent of the day’s trade and with market share and Wisynco with 574,957 shares for 5.7 percent of total trades.
The PE Ratio, a formula to ascertain appropriate stock values, averages 13.4 for the Main Market. The JSE Main and USD Market PE ratios are computed based on ICInsider.com’s forecasted earnings for companies with the financial year ending between November and August 2023.
Investor’s Choice bid-offer indicator shows ten stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Berger Paints dipped $1.19 to $10.31 while exchanging 4,637 shares, Caribbean Cement popped $1 to close at $57 in trading 255,832 stocks, Eppley rose $2.50 in closing at $40 while trading 30 units, Eppley Caribbean Property Fund dropped $4.98 to $40 after a trade of 77 shares, First Rock Real Estate dropped 79 cents to $11.51 in switching ownership of 43,083 stock units, GraceKennedy rose $1 to $96 after exchanging 319,641 units and trading at an intraday 52 weels’ low of $70.10. Guardian Holdings dropped $18 in closing at $507 after trading 138 shares, Jamaica Broilers dropped 50 cents to close at $28, with an exchange of 18,239 stocks, Jamaica Producers rose 89 cents in ending at $21 with the swapping of 93,150 stock units after the price hit an intraday one year low of $18.04, Jamaica Stock Exchange slipped 40 cents to $16, with 6,128 units crossing the market, JMMB Group had trading in 464,838 but fell 75 cents at $40.75, Kingston Wharves declined $3.28 to close at a 52 weeks’ low of $34.12, with 3,658 shares crossing the market, Massy Holdings jumped $8.84 in closing $85.84 after exchanging 1,210 stocks. Mayberry Jamaican Equities rose 56 cents to $14.06 and exchanged 11,645 units, NCB Financial gained $1.98 in ending at $92.18 after trading 79,481, 
Palace Amusement added $10 to close at $760 with just four shares trading following trading at a one year intraday low of $665, PanJam Investment climbed $1 to end at $60 with an exchange of 255,259 stock units, Salada Foods fell 38 cents to close at $4.62 with 8,474 stocks changing hands. Scotia Group rallied $1.10 to $35.10, with an exchange of 1,113 shares and Supreme Ventures rose $1.10 to $29.90, with 107,110 units crossing the exchange.
In the preference segment, Eppley 7.5% preference share fell 40 cents to close at $7 with a transfer of 208 shares and Jamaica Public Service 9.5% preference share shed $350 to end at $2,650 in an exchange of 3,880 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading picks up on TTSE
Market activity ended on the Trinidad and Tobago Stock Exchange on Tuesday, with the volume of stocks traded rising 260 percent and the value climbing 37 percent more than on Monday, resulting in 19 securities traded the same as on Monday, with five stocks rising, six declining and eight remaining unchanged.
A total of 610,819 shares were traded for $6,673,839 versus 169,596 units at $4,866,836 on Monday. An average of 32,148 units traded $351,255 compared to 8,926 shares at $256,149 on Monday, with trading month to date averaging 43,249 units at $413,534 versus 44,045 units at $417,999 on the previous trading day. The average trade for July amounts to 28,304 units at $283,023.
The Composite Index rose 2.42 points to 1,378.90, the All T&T Index advanced 3.21 points to 2,038.00 and the Cross-Listed Index increased 0.22 points to close at 94.29.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Agostini’s dropped $1.53 to $44 in switching ownership of 250 shares, Angostura Holdings advanced 48 cents to $26.98, with 14 stock units crossing the exchange, Ansa McAl ended unchanged at $57 after exchanging 975 stocks. Clico Investment Fund remained at $31 in swapping 90,283 units, First Citizens Group gained 48 cents to end at $49.99 with investors transferring 380 stocks, FirstCaribbean International Bank ended at $5.50 in an exchange of 893 shares. GraceKennedy slipped 1 cent to $5.39 with an exchange of 21,000 stock units, Guardian Holdings remained at $26.30 with a transfer of 2,845 units, JMMB Group popped 1 cent to $2.31 in trading 73,681 stocks.
Massy Holdings rallied 15 cents in closing at $4.70 after 283,420 stock units changed hands, National Enterprises shed 1 cent in closing at $3.58 with 54,194 shares clearing the market, NCB Financial Group remained at $5.05, with 31,250 units crossing the market. One Caribbean Media fell 9 cents to $4 in trading 17 stocks, Republic Financial Holdings declined 2 cents to end at $140.50 after a transfer of 1,317 shares, Scotiabank ended unchanged at $78 after trading 9,457 stock units. Trinidad & Tobago NGL increased $1.46 to a 52 weeks’ high of $24.96 in exchanging 34,404 units, Trinidad Cement ended unchanged at $3.52 while trading 6,275 stocks, Unilever Caribbean remained at $12.60 as investors exchanged 64 units and West Indian Tobacco dipped 5 cents to end at $23.45, with 100 shares crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
The JSE Main Market at lowest point for 2022
Stocks suffered another body blow in trading on the Jamaica Stock Exchange Main Market on Monday, with an 89 percent decline in the volume of stocks traded with a 96 percent lower value than on Friday as 59 securities traded compared to 56 on Friday, with 16 rising, 28 declining and 15 ending unchanged.
The All Jamaican Composite Index dipped 2,052.20 points to 409,964.06, the JSE Main Index dived 5,339.22 points to 357,194.84 and the JSE Financial Index slipped 0.06 points to close at 86.42.
Investors traded 32,269,822 shares for $90,087,830 compared to 289,860,735 units at $2,467,647,684 on Friday. Trading ended with an average of 546,946 units at $1,526,912, versus 5,176,085 shares at $44,065,137 on Friday, and month to date, an average of 937,035 units at $5,715,718, compared to 966,504 units at $6,032,158 on the previous trading day. July closed with an average of 173,643 units at $1,683,017.
Transjamaican Highway 8% led trading with 26.50 million shares after trading at a 52 weeks’ low of $1.47 to control 82.1 percent of total volume followed by Transjamaican Highway with 1.69 million units for 5.2 percent of the day’s trade and Wigton Windfarm with 1.22 million units for 3.8 percent market share.
The PE Ratio, a formula to ascertain appropriate stock values, averages 13.7 for the Main Market. The JSE Main and USD Market PE ratios are computed based on ICInsider.com’s forecasted earnings for companies with the financial year ending between November and August 2023.
Investor’s Choice bid-offer indicator shows ten stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Berger Paints rose $1.27 to $11.50 while exchanging 11,543 shares, Caribbean Cement dipped $3.75 to close at $56 in trading 74,233 stocks, Carreras shed 39 cents to end at $9 with 245,669 stock units clearing the market. Eppley declined 50 cents in closing at $38.50 while trading 4,523 units, First Rock Real Estate climbed 79 cents to $12.30 in switching ownership of 872 stock units, GraceKennedy fell $1.50 to end at $95 after exchanging 123,366 units. Guardian Holdings gained $5 in closing at $525 after trading 1,064 shares, Jamaica Broilers dropped 58 cents to close at $28.50 as investors exchanged 40,218 stocks, Jamaica Producers lost 89 cents in ending at $20.11 with the swapping of 27,940 stock units. Jamaica Stock Exchange popped 90 cents to $16.40, with 4,956 units crossing the market, Margaritaville declined $1.40 to close at $28, with three shares crossing the market, Massy Holdings shed $10 in closing at a 52 weeks’ low of $77 after exchanging 6,120 stocks. Mayberry Investments dipped 65 cents after ending at $9.25 and exchanging 11,645 units, PanJam Investment dropped $1 to end at $59 with an exchange of 39,863 stock units, Proven Investments fell 96 cents to $32.04 with 29,368 stocks changing hands. Sagicor Group lost $4 in closing at $50, with 74,306 shares changing hands, Stanley Motta dropped 38 cents to end at $4.60 after a transfer of 114,461 stocks, 
Supreme Ventures declined 46 cents to $28.80, with 107,110 units crossing the exchange and Sygnus Real Estate Finance dipped 55 cents to $9.75 with investors transferring 2,801 stock units.
In the preference segment, 138 Student Living preference share rallied $2.41 to close at $45 with a transfer of 37 shares and Productive Business Solutions 9.75% preference share shed $8 to end at $150 in an exchange of 430 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Gains for the JSE USD market
Trading on the Jamaica Stock Exchange US dollar market ended on Monday, with the volume of stocks traded declining 51 percent, with a 56 percent lesser value than on Friday, resulting in the exchange of six securities, compared to nine on Friday, with three rising, two declining and one ending unchanged.
Overall, 388,269 shares were traded, for US$14,534 down from 796,890 units at US$32,729 on Friday. Trading averaged 64,712 units at US$2,422, compared to 88,543 shares at US$3,637 on Friday, with month to date average of 49,416 shares at US$7,149 versus 48,732 units at US$7,360 on the previous trading day. July ended with an average of 49,665 units for US$3,449.
The JSE US Denominated Equities Index rose 4.49 points to end at 204.80.
The PE Ratio, a measure used in computing appropriate stock values, averages 8.1. The PE ratio incorporates ICInsider.com earnings forecasts for companies with financial years ending between November and August 2023.
Investor’s Choice bid-offer indicator shows two stocks ended with higher bids than the last selling prices and one stock with a lower offer.
At the close, First Rock Real Estate USD share ended at 4 US cents after trading 164,161 shares, Margaritaville rose 1.5 cents to 12 US cents, with 1,315 stocks crossing the market, Proven Investments popped 0.2 of a cent to close at 21.5 US cents with 11,426 stock units changing hands. Sygnus Credit Investments USD share declined 0.88 of a cent in ending at 11.12 US cents after exchanging 32,000 units and Transjamaican Highway climbed 0.12 of one cent to 0.95 of a US cent in trading 179,363 stock units.
In the preference segment, JMMB Group 6% shed 1 cent to close at US$1.09, with four shares crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market rises on reduced trading
Trading closed on the Junior Market of the Jamaica Stock Exchange Monday, with the volume of stocks traded declining 16 percent from trading on Friday, with a 16 percent lower value with 44 securities changing hands similar to Friday and ended with 19 rising, 17 declining and eight closing unchanged.
A total of 8,102,411 shares were exchanged for $24,915,028 from 9,619,389 units at $29,679,783 on Friday. Trading averaged 184,146 shares at $566,251, compared to 218,622 stock units at $674,541 on Friday with month to date, averaging 395,154 units at $1,314,742 compared to 410,654 units at $1,369,723 on the previous trading day. July closed with an average of 512,709 units at $2,574,304. Dolla Financial led trading with 2.39 million shares for 29.5 percent of total volume followed by JFP Limited with 1.03 million units for 12.7 percent of the day’s trade and Fosrich with 973,391 units for 12 percent market share.
At the close, the Junior Market Index increased 22.70 points to 4,123.51.
The PE Ratio, a measure of computing appropriate stock values, averages 12.7. The PE ratios of Junior Market stocks incorporate ICInsider.com projected earnings for companies with financial year end that falls between November this year and August 2023.
Investor’s Choice bid-offer indicator shows six stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Blue Power fell 20 cents to $3, with 8,734 shares changing hands, Cargo Handlers climbed 50 cents to end at $14.50 in an exchange of 10,301 units, Dolphin Cove rallied 35 cents in closing at $14 with investors transferring 2,312 stock units. EduFocal dropped 13 cents to $2.70 after 222,615 stocks crossed the market, Elite Diagnostic gained 11 cents to close at $3.43 with an exchange of 40,021 shares, Fosrich increased 11 cents in closing at $3.69 after exchanging 973,391 stocks. Honey Bun dipped 10 cents to close at $8 in trading 903 units, iCreate declined 16 cents to end at $4.01 with a transfer of 319,853 stock units, Iron Rock Insurance advanced 29 cents in ending at $3 while exchanging 1,659 stock units. Jamaican Teas rose 30 cents to $2.80 in trading 209,005 units, Limners and Bards popped 13 cents to end at $2.85, with 151,856 stocks crossing the market, Main Event rallied 70 cents in closing at $7.71 after swapping of 384 shares. Medical Disposables climbed $1.19 after ending at $6.90 and exchanging 11,500 stock units, MFS Capital Partners shed 34 cents to $3.70 and closed with 63,982 stocks changing hands, Spur Tree Spices rose 15 cents to $3.95 after trading 107,149 units.
Stationery and Office Supplies lost 62 cents to end at $17.38 after finishing the trading of 20,601 shares and tTech declined 28 cents to $3.02 in switching ownership of 8,000 shares.
In the preference segment, CAC 2000 9.5% preference share lost 15 cents in closing at 90 cents, with 95,176 stock units clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading dips on TTSE but prices rise
Market activity ended on the Trinidad and Tobago Stock Exchange on Monday, with the volume of stocks traded declining 65 percent and the value 26 percent less than on Friday and resulting in the trading of 19 securities compared to 15 on Friday, with prices of seven rising, two falling and ten remaining unchanged.
A total of 169,596 shares were traded for $4,866,836 down from 490,877 units at $6,605,612 on Friday. An average of 8,926 units traded at $256,149 compared to 32,725 shares at $440,374 on Friday, with trading month to date averaging 44,045 units at $417,999 versus 46,758 units at $420,194 on the previous trading day. The average trade for July amounts to 28,304 units at $283,023.
The Composite Index popped 8.65 points to 1,376.48, the All T&T Index climbed 6.49 points to 2,034.79 and the Cross-Listed Index gained 1.53 points to close at 94.07.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and one stock with a lower offer.
At the close, Agostini’s rallied 3 cents to $45.53 with an exchange of two shares, Angostura Holdings remained at $26.50, with 199 stocks crossing the market, Ansa McAl ended unchanged at $57 after exchanging 1,422 stock units. Clico Investment Fund ended at $31 with the swapping of 84,478 units, First Citizens Group traded 1,082 units at $49.51, FirstCaribbean International Bank popped 48 cents after finishing at $5.50 while exchanging 547 stocks. 
Guardian Holdings ended at $26.30, with 348 stock units changing hands, Guardian Media rose 6 cents in closing at $3.10 with an exchange of 103 shares, L.J. Williams B share remained at $2.01 after exchanging 17 stock units. Massy Holdings shed 18 cents to $4.55 after a transfer of 20,775 units, National Enterprises climbed 24 cents to end at $3.59 and trading 4,959 stocks, One Caribbean Media ended at $4.09 with a transfer of 100 shares. Prestige Holdings ended at $6.70 with investors transferring 140 stock units, Republic Financial Holdings advanced 2 cents to $140.52 as investors exchanged 400 stocks, Scotiabank remained at $78 in switching ownership of 13,081 shares. Trinidad & Tobago NGL gained 50 cents to close at a 52 weeks’ high of $23.50 in trading 40,062 units, Trinidad Cement dipped 13 cents in closing at $3.52 after trading 1,776 shares, Unilever Caribbean added 1 cent in ending at $12.60, with 100 units changing hands and West Indian Tobacco ended at $23.50 with five stocks clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Consolidated visits ICTOP10
Consolidated Bakeries moves into ICTOP10 this week at a time when the local stock market was starved of funds tied up in the One on One IPO that came to the market on August 12 and helped the JSE markets to pull back in the past week, with several stocks suffering declines, but increased interest rates erroneously pushed by Bank of Jamaica seems to be a contributory factor as well.
The disclosure that Dolla Financial corresponded with Access Financial to explore merger talks, put new life into the former TOP10 stock, with increased buying in the stock this past week. Trading picked up with 115,359 units being exchanged during the week, up from 38,162 units the previous week, with the stock moving from $25 at the end of last week to $27.50 this past week.
ICTOP10 movers this past week are General Accident jumping 16 percent to $5.80. In comparison, CAC 2000 dropped 21 percent to $6.05, Medical Disposables slipped 18 percent lower at $5.71, Dolphin Cove with a decline of 8 percent to $13.65 and Caribbean Cream down 5 percent to $3.88.
The Main Market ended the week with Productive Business Solutions jumping 15 percent to US$1.15 while VM Investments popped 6 percent to $5.50, but Berger Paints lost 14 percent to $10.23 after posting six months results without second quarter numbers that would show reduced second quarter profits compared to the first quarter.
The Junior Market ICTOP10 welcomed Consolidated Bakeries, with projected earnings per share of 22 cents, with the company appearing to be breaking the old practice of limited revenue growth and small profits. See the latest profile of the company with full reporting and its prospects for the current year. General Accident says goodbye to the ICTOP10 following the recovery in the price. There were no changes in the Main market.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.8, while the Junior Market Top 10 PE sits at 5.8 versus the market at 12.7. The Junior Market is projected to rise by 260 percent and the Main Market TOP10 is projected to gain an average of 246 percent each to May 2023.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. 
ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Has Purity broken negative spell?
For many investors, Consolidated Bakeries wasted the ten years of tax holidays garnered in listing on the Junior Market back in December 2012 as profits pretty much stagnated at very low levels and moved into losses occasionally. But those dark days may well be behind, if recent quarterly results to June are to be believed.
Consolidated Bakeries Purity brand
The improved results show up in a strongly transformed financial position resulting in an enhanced working capital position even as sales surged, a buildup of cash and a reduction in borrowed funds.
Revenues climbed 30 percent in the March quarter, from $291 million last year to $378 million and rose a more robust 42 percent in the June quarter to $342 million from $241 million in 2021. For the six months, revenues are up 35 percent to $720 million from $532 million in 2021, while gross profit rose 41 percent to $292 from $207 million. At the same time, in the recent past, gross profit margin tended to hover around 39 percent, rose to 42 percent in the second quarter this year, from 38 percent in 2021.
Profit before tax rose 61 percent in the first quarter to $14.5 in 2022, from $9 million last year and is up 200 percent in the second quarter to $13.5 from a loss of $13.4 last year. For the half year, pretax profit surged 735 percent to $28 million from a $4.4 million loss in 2021.
Purity, as the company is more popularly known, generated a loss in other comprehensive income from investments of $2.65 million for the quarter and $3.57 for the half year, reducing the overall profits to $10.8 million for the quarter and $26 million for the half year.
Anthony Chang, Managing Director of Consolidated Bakeries
Administrative and other expenses rose 11 percent to $66 million in the quarter and increased 18 percent in the half year to $139 million. Marketing and sales expenses increased by 33 percent to $50.5 million in the June quarter over 2021 and are up 30 percent to $97 million for the six months of 2022. Depreciation rose 10 percent in the June quarter to $8.6 million and 8 percent for the half year to $17 million. Finance cost jumped sharply in the quarter to $7 million from $2.5 million in 2021 and from $6.3 million to $9.4 million for the six months.
The company’s finances are looking much better at the end of June than in 2021, which is undoubtedly helped by management’s renewed focus on these areas. Operations for the half year generated gross cash flow of $47 million and to $77 million with changes in working capital but slipped to $56 million after receiving an $11 million loan and spending $29 million on the purchase of fixed assets. Shareholders’ equity stood at $708 million, while Long term borrowings ended the period at $167 million and short term loans at $42 million, representing a reduction from December 2021 of $25 million and cash and bank balances rose to $82 million, up from $62 million at the end of December last year. Current assets ended the period at $295 million, with trade and other receivables at $105 million, a reduction from $115 million at the end of June 2021 and $110 million at the end of December 2021, even as sales surged. Inventories doubled over June 2021 from $41 million to $81 million and are up from $67 million at the end of December. Current liabilities ended the period at $181 million, up from $175 million at the end of December but down from $190 million in June 2021. Net current assets ended the period at $115 million and are well up on the $69 million at the end of June 2021 and $93 million in December last year.
The big concern in the past was the ability of the company to hold on to the profit made in the first six months in the year’s second half. This time seems set to deliver to the upside as revenues benefit from increased volume sales as the company makes headways into new areas and some new products. Anthony Chang stated that while new products helped sales, in some cases, traditional products found new takers in regions of the country where demand was not as strong in the past.
Consolidated Bakeries Miss Birdie Easter bun.
According to Chang, they are now benefiting from some personnel changes that are delivering improved results. He also indicated expansion of the distribution channel into smaller stores while consolidating the business in the bigger stores. They also placed focus on the cost by employing a cost accountant. The company still faces challenges, Chang informed ICInsider.com; most flows from the economic environment businesses face locally with the supply chain for raw materials for production.
Retooling played a vital role in the gains, but Chang says this is a work in progress. According to him, bread at one stage in the past accounted for 90 percent of sales, was in direct competition with the market leader and had a low profit margin, but it took time to make the shift as new machinery was needed to effect the change to new products, that needed machinery for packaging these products. The company has been adding to fixed assets as a part of the drive to have suitable machines and in quantity required to churn out new products. In the 2022 half year, $29 million was spent on fixed assets, up from $21 million in the six months to June last year and $33 million for the financial year 2021.
As Chang indicated, July is showing growth in sales over last year, but while he is unsure where they will end the year, he is cautiously expecting some growth in the rest of the year.
Analysis done by ICInsider.com shows that over the past two years, the first quarter has had the highest revenues, with the second quarter 82 to 90 percent of what the first quarter generates. This year was somewhat different at 90 percent, no doubt due to Easter falling in the middle of April, that would have resulted in more Easter bun sales coming in April than in 2021 and moved the percentage from 83 to 90. The September quarter revenues year were 111 percent of the second quarter and was up from 93 percent in 2021, with December at 105 percent of 2021 September and 99 percent in 2020. Based on the above, ICInsider.com projects this year’s revenues at $1.4 billion, with a profit of $49 million for earnings per share of 22 cents. If achieved, the PE ratio currently would be 6.8, based on the price of $1.49, the stock traded on the Jamaica Stock Exchange Junior Market on Friday. The numbers pushed Consolidated Bakery in the lower end of ICInsdier.com TOP10.
