Stationery and Office Supplies boosted activity on the Junior Market of the Jamaica Stock Exchange on Wednesday with the price racing to another new record high of $34.98, as investors continued to respond aggressively to an announcement that directors would be considering a stock split and in the process pushed the price up 75 percent since Monday and just over 100 percent for the year to date, the move helped the Junior market advanced 25.03 points to 3,936.13.
Trading closed with a 15 percent rise in the volume of stocks traded, with 10 percent less value than on Tuesday after trading in 40 securities compared with 43 on Tuesday and ended with 12 rising, 17 declining and 11 closing unchanged.
A total of 10,079,171 shares were traded for $43,487,229 compared to 8,787,937 units at $48,253,320 on Tuesday.
Trading averaged 251,979 shares at $1,087,181 compared to 204,371 stocks at $1,122,170 on Tuesday with the month to date, averaging 193,268 units at $583,839 compared with 189,456 stock shares at $551,155 on the previous day. May closed with an average of 239,954 units at $648,811.
Dolla Financial led trading with 2.77 million shares for 27.5 percent of total volume followed by 
Image Plus Consultants with 1.84 million units for 18.3 percent of the day’s trade and ONE on ONE Educational with 668,531 units for 6.6 percent market share.
The PE Ratio, a measure of computing appropriate stock values, averages 11.1. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows eight stocks ended with bids higher than their last selling prices and six with lower offers.
At the close, Access Financial lost $1.20 in closing at $22 in an exchange of 15,750 shares, Blue Power shed 30 cents to close at $2.18 with 2,783 units changing hands, Cargo Handlers rallied $3.89 to end at $22.09 in trading 3,144 stock units, Caribbean Assurance Brokers gained 19 cents and ended at $2.69 with a transfer of 555,390 stocks, 
Caribbean Flavours popped 20 cents to $1.35 with investors trading 31,181 units, Dolla Financial dipped 14 cents in closing at $2.36 as shareholders swapped 2,774,569 stocks, Dolphin Cove rallied 28 cents to end at $15.28 and closed at 17,377 units, Express Catering rose 41 cents to $5.40 after investors exchanged 221 shares, Future Energy Source dipped 10 cents to close at $3.91, with stakeholders exchanging 174,638 stocks, iCreate rose 13 cents and ended at $1.20 after stakeholders trading 27,112 stock units, Indies Pharma fell 10 cents in closing at $3 as 352,201 shares passed through the market, Knutsford Express declined 80 cents to end at $11 12,605 units changing hands, Lasco Distributors dipped 17 cents to $3.21 crossing the market, with 72,561 stocks, Mailpac Group shed 10 cents to close at $1.85, with 256,349 units crossing the exchange, 
Medical Disposables dropped 19 cents to close at $4.06 after a transfer of 16,120 stock units, Spur Tree Spices fell 9 cents and ended at $2.33, with 50,188 shares clearing the market and Stationery and Office Supplies climbed $8.53 in closing at a record high of $34.98 in an exchange of 633,397 stocks.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated
Upped capital spend for Caribbean Producers
Capital spend is set to expand at Caribbean Producers (CPJ) following approval of the Board, the company stated in a recent release with plans for “three major projects that will positively impact the growth and further development of the Company both locally and offshore” the release from the company stated.
Caribbean Producers
The plans include a U$1 million solar expansion project, with installation to commence in the first quarter of the 2024 financial year that starts in July, US$2.3 million modernization of the Meat Processing Plant, with work to commence in the first quarter of 2024, both projects will reduce operating cost. CPJ will be expanding its Operation in St. Lucia with a new store, with Operations to begin in the second quarter of the financial year 2024.
The proposed capital spend comes on the heels of a profitable nine months for the company recovering from fallout in revenues and profit during the covid-19 pandemic. For the three months to March, revenues rose 28 percent to US$35.7 million versus US$28 million in 2022 and climbed 24 percent to US$107 million for the year to March, over US$86.4 million for the similar period in 2022.
The March quarter saw cost of sales rising slightly faster than revenues, with an increase of 30 percent to US$25.3 million from $19.5 million, with a gross profit margin of 29 percent, down from 31.2 percent in 2022. For the nine months, it also rose faster than sales with an increase of 28 percent to US$75.3 million from US$58.8 million and resulted in a gross profit margin of 29.7 percent, down from 31.5 percent in 2022, negatively impacting profits.
According to management, “We expect growth in revenue and margins going forward will translate to improved company performance.”
Caribbean Producers
Profit before tax declined sharply for the March quarter by 65 percent from US$$1.8 million to US$636,974 after accounting for a one-time charge of US$1.45 million in the third quarter relating to GCT assessment, dragging profit down to a mere US$226,000 after tax, attributable to the company’s shareholders of and down 49 percent to US$3.6 million for the nine months compared to US$6.8 million earned in 2022. For the nine months, profit before tax declined 34 percent to US$5.2 million in the current year, from US$7.9 million for the similar period in 2022, but it declined a smaller 16 percent, excluding the one-time charge for GCT. Selling and administrative expenses rose sharply by 24.7 percent in the March quarter from US$5.2 million in 2022 to $6.5 million in what management stated was due to increased staffing to position for further growth, the increase negated the improvement in the gross profit. For the nine months, the cost in this category increased 33.6 percent to US$19.6 million from US$14.7 million in 2022. That was the area of significant cost increase that depressed profits for 2023. But profit before tax would have increased to US$2.8 million when the charge for GCT is excluded compared with US$2.6 million in March 2022 quarter and US$9 million versus US$10 million.
At the end of March, shareholders’ equity stood at US$26.7 million, up from US$22.4 million at the end of March 2022 and US$23.2 million at the end of the June 2022 fiscal year. The company continues to be heavily leveraged with borrowings of US$40.5 million, of which US$9.8 million is short term and due to be repaid within twelve months.
Current assets stood at US$62 million at the end of March versus US$62.5 million at the end of June 2022 and just US$25.3 million as of March 2022. Cash and equivalents were US$4.9 million, up from US$3.9 million at the end of the 2022 fiscal year, with receivables at $18 million, virtually flat with the fiscal year end. Still, inventories slipped to US$39 million from US$40 million at the end of the fiscal year but are up over March 2022 at $30 million.
Current liabilities stood at US$25.4 million at the end of March versus US$46.75 million at the end of June 2022 and US$25.3 million as of March 2022.
CPJ is the dominant company within the hospitality sector. The expected continued expansion in the hotel rooms should be fertile ground for continued growth in revenues and profitability over the next few years. The company is highly leveraged, which is a huge negative, especially when business declined, as it did during the height of the COVID epidemic, curtailing sales in 2021 and 2022.
The company reported 0.02 US cents in earnings per share for the March quarter compared to 0.14 cents in 2022 and 0.33 US cents for the half year to March 2023 versus 0.62 cents in the prior year. As indicated above, ongoing earnings per share are better than the numbers suggest. The US$1.5 million written off for general consumption tax assessment is not an ongoing expense. As such, it should be excluded from earnings in valuing the company’s shares to assess ongoing earnings capabilities better. In addition, the tourism trade did not return to normal capacity compared to 2019 until the start of 2023, as such, the first two quarters of this fiscal year are based on lower business levels than is the norm and the 2024 fiscal year should reflect a better outcome as a result.
IC insider.com forecast earnings of J$1.35 per share for the June 2023 fiscal year and J$2.50 in the next fiscal year, with the stock currently at $9.46 on the Main Market of the Jamaica Stock Exchange with a value of 7 times the current years’ earnings. Investors can expect a period of continuing growth in the share price over the next 12 months as a result of continued improvement in profitability and lower interest rates in the coming months.
Big fall for JSE USD Market
Trading ended with a 22 percent jump in the volume of stocks changing hands on Tuesday with the value rising 60 percent over Monday at the close of the Jamaica Stock Exchange US dollar market, resulting in nine securities trading, compared to four on Monday with one rising, six declining and two ending unchanged, with the US Denominated Equities Index dropping 20.38 points to 220.63.
A total of 934,268 shares were traded for US$32,448 compared with 764,260 units at US$20,272 on Monday.
Trading averaged 103,808 units at US$3,605 compared with 191,065 shares at US$5,068 on Monday, with a month to date average of 77,396 shares at US$2,423 compared to 74,695 units at US$2,303 on the previous day. May ended with an average of 43,350 units for US$2,759.
The PE Ratio, a measure used in computing appropriate stock values, averages 8.7. The PE ratio is computed based on the last traded price divided by projected earnings done by ICInsider.com for companies with their financial year ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than their last selling prices and one with a lower offer.
At the close, First Rock Real Estate USD share remained at 5 US cents with 5,000 shares clearing the market, Productive Business Solutions dipped 27.54 cents in closing at US$1.5606 as investors exchanged 450 stocks Proven Investments rose 0.02 of a cent to 15.72 US cents after a transfer of 102,198 stock units.
Sterling Investments ended at 1.6 US cents with an exchange of 684,000 units, Sygnus Credit Investments dropped 1.59 cents to end at 9.4 US cents after investors traded 824 shares and Transjamaican Highway lost 0.07 of a cent in closing at 1.37 US cents and ended with 140,156 stock units changing hands.
In the preference segment, Equityline Mortgage Investment preference share declined 24.6 cents to end at a 52 weeks’ low of US$1.394, with 30 units changing hands, JMMB Group 5.75% shed 24 cents in ending at US$1.90 in an exchange of 560 stocks and JMMB Group 6% fell 13 cents to close at US$1.05 after exchanging 1,050 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading jumps on Main Market but prices fall
Trading picked up on the Jamaica Stock Exchange Main Market on Tuesday, with a 31 percent jump in the volume of stocks traded but with a 664 percent jump in the value compared to Monday with 55 securities trading compared with 56 on Monday and ended with prices of 15 rising, 26 declining and 14 ending unchanged.
A total of 31,469,005 shares were traded for $596,839,341 compared with 24,000,889 units at $78,140,528 on Monday.
Trading averaged 572,164 shares at $10,851,624 up from 428,587 shares at $1,395,367 on Monday and month to date, an average of 362,797 units at $5,316,522 compared with 347,215 units at $4,904,572 on the previous day. May closed with an average of 226,361 units at $1,362,447.
NCB Financial led trading with 6.45 million shares for 20.5 percent of total volume, Transjamaican Highway followed with 5.93 million units for 18.9 percent of the day’s trade, Mayberry Jamaican Equities finished with 5.0 million units for 15.9 percent market share, Mayberry Investments ended with 5.0 million units for 15.9 percent market share, Wigton Windfarm traded 4.66 million units for 14.8 percent market share and JMMB Group 7.35% due – 2028 ended with 1.59 million units for 5 percent of total volume.
The All Jamaican Composite Index fshed 3,269.39 points to end at 361,051.84, the JSE Main Index declined 2,465.86 points to 324,952.55 and the JSE Financial Index dipped 0.39 points to 73.08.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.2 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows nine stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Eppley Caribbean Property Fund advanced $1 to $41, with 601 shares changing hands, First Rock Real Estate shed 36 cents to end at $10.10 while exchanging 7,468 units, Guardian Holdings fell $1.60 in closing at $450.40 in an exchange of 4,332 stocks. Jamaica Broilers gained 38 cents to close at $34.98, with 115,169 stock units crossing the market, 
Jamaica Producers dropped 70 cents and ended at $19 with investors trading 246 stock units, Jamaica Stock Exchange dipped 35 cents and ended at $11.50 after a transfer of 34,785 stocks. Margaritaville rallied 49 cents to $18.31 as investors exchanged 885 shares, Mayberry Investments rose 95 cents in closing at $9 after 5,001,032 units were traded, NCB Financial climbed 51 cents to end at $67.21 with stakeholders exchanging 6,445,289 units. Pan Jamaica Group increased 98 cents to close at $49.98 after 5,873 stock units passed through the market, Sagicor Group lost $1.40 to end at $48.50 as 7,678 stocks passed through the market, Salada Foods declined 40 cents to $2.79, with 26,725 shares crossing the exchange. Scotia Group shed 40 cents to close at $34.50 with a transfer of 44,411 shares, 
Supreme Ventures dropped 80 cents to end at $25.20 in an exchange of 202,573 units and Sygnus Real Estate Finance popped $1.50 in closing at $12.20 in switching ownership of just one stock unit.
In the preference segment, Jamaica Public Service 7% climbed $7.35 to $56.35 with 1,103 stocks clearing the market and Productive Business Solutions 9.75% preference share declined 50 cents and ended at $91 after exchanging 1,862 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
SOS highlights Junior Market trading
Stationery and Office Supplies was the highlight of the Junior Market of the Jamaica Stock Exchange on Tuesday with the price closing at a record high of $26.45 with more than 500,000 share trading and closed with bids at $26.45 to buy 220,709 shares and at $26 to buy 114,415 shares, in contrast, stocks offered at the close were light starting at $30.50. The sharp rally follows an announcement of a directors’ meeting on Wednesday to discuss a possible stock split.
Trading closed with the volume of stocks traded rising 53 percent, with an increase of 182 percent in value compared to Monday, following trading in 43 securities compared with 44 on Monday and ended with 14 rising, 18 declining and 11 closing unchanged.
Investors traded 8,787,937 shares for $48,253,320 up from 5,733,266 units at $17,140,162 on Monday.
Trading averaged 204,371 shares at $1,122,170, with 130,302 shares at $389,549 on Monday, with a month to date, average of 189,456 units at $551,155 compared to 188,336 stock units at $508,304 on the previous day. May closed with an average of 239,954 units at $648,811.
Image Plus Consultants led trading with 1.28 million shares for 14.6 percent of total volume followed by Dolphin Cove with 1.17 million units for 13.3 percent of the day’s trade and Fosrich with 935,005 units for 10.6 percent market share.
At the close, the Junior Market Index advanced 31.19 points to settle at 3,911.10 and reclaimed the 3,900 mark, the highest since Mid-February.
The PE Ratio, a measure of computing appropriate stock values, averages 11 The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Cargo Handlers declined $3.80 to close at $18.20 in trading 275 shares, Caribbean Assurance Brokers fell 10 cents to end at $2.50 in an exchange of 97,168 stock units, Caribbean Cream dropped 17 cents to $4 with stakeholders exchanging 95,150 units.
Caribbean Flavours dipped 21 cents in closing at $1.15, with 111,166 stocks crossing the exchange, Dolla Financial shed 9 cents and ended at $2.50 as investors exchanged 481,548 stocks, Elite Diagnostic rose 27 cents to close at $2.30 with a transfer of 692 units. Express Catering lost 21 cents to close at $4.99, with 105,200 stock units crossing the market, Fosrich fell 23 cents to $2.30 after 935,005 shares were traded, Honey Bun rallied 46 cents and ended at $6.96 with 8,515 stocks clearing the market. iCreate lost 18 cents to end at $1.07 in switching ownership of 118,688 units, Iron Rock Insurance climbed 15 cents to $2.15 as 237 shares passed through the market, ISP Finance dipped $6.49 to $19.91 after an exchange of 5,211 stock units. JFP Ltd shed 11 cents and ended at $1.57 in an exchange of 930,469 units, Lasco Manufacturing advanced 10 cents to close at $4.50 with investors transferring 344 shares, 
Main Event increased 86 cents in closing at $14.75, with 55,905 stocks crossing the market, Regency Petroleum declined 20 cents to close at $2.60 while exchanging 705,529 stock units and Stationery and Office Supplies gained $6.45 in closing at a record high of $26.45 with shareholders swapping 523,811 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trinidad Exchange ends trading lower
Stock prices mostly fell on the Trinidad and Tobago Stock Exchange on Tuesday, following closure on Monday for the Labour Day holiday with the volume of stocks traded declining 13 percent and resulting in the value falling 66 percent lower than on Friday with trading in 16 securities compared with 18 on Friday, with the prices of three stocks rising, eight declining and five remaining unchanged.
Investors traded 175,780 shares for $681,147 versus 201,743 stock units at $2,006,520 on Friday.
An average of 10,986 shares were traded at $42,572 compared to 11,208 at $111,473 on Friday, with trading month to date averaging 15,328 shares at $159,048 compared with 15,659 units at $167,923 on the previous day. The average trade for May amounts to 23,500 shares for $216,502.
The Composite Index dipped 0.51 points to 1,226.54, the All T&T Index declined 0.18 points to 1,893.38, the SME Index remained unchanged at 70.01 and the Cross-Listed Index slipped 0.12 points to 71.78.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and three with lower offers.
At the close, Agostini’s advanced 40 cents in closing at $69 in trading 444 shares, Ansa McAl remained at $50.95 after a transfer of 100 stock units, First Citizens Group shed 99 cents to close at $48 after 1,422 units were exchanged. GraceKennedy gained 3 cents to end trading at $3.28 with investors transferring 80,300 stocks, JMMB Group ended at $1.35, with 52,300 stocks crossing the market, L.J. Williams B share fell 1 cent to $2.79 as investors exchanged 50 units. Massy Holdings declined 5 cents to close at $4.90 with shareholders swapping 20,957 stock units, National Enterprises remained at $3.40, with 16,753 shares clearing the market, National Flour Mills lost 1 cent to end at $1.64, with 65 stock units changing hands. 
One Caribbean Media ended at $3.70 in switching ownership of 50 stocks, Prestige Holdings dipped 4 cents and ended at $7.96 with an exchange of 468 units, Republic Financial dropped 66 cents to close at $128.40 while exchanging 273 shares. Scotiabank fell 25 cents to $76.25 after an exchange of 193 shares, Trinidad & Tobago NGL rose 12 cents to end at $18 with a transfer of 110 stock units, Unilever Caribbean ended at $11.40 after 1,766 stocks were traded and West Indian Tobacco declined 2 cents to $12.50 in an exchange of 529 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Stock split news lift SOS to a record $26
Investors in office supply Junior Market listed company Stationery and Office Supplies are having a grand time, with the company reporting two highly profitable years with 2023 starting off on a promising note for another year of record profits.
Stationery & Office Supplies hit a new high after the proposed stock split announcement.
Over the past year, shareholders will receive dividends amounting to 38 cents per share with the second payment in July. To add icing to the cake, the announcement on Monday that the board of directors will meet on Wednesday to consider a stock split has pushed the share price to a record high of $26 in early trading on Tuesday, with an increase of 52 percent for the year to date on top of 179 percent gain in 2022. Up to late May, the stock was trading in the $15 region, a level that it was at for weeks.
In premarket trading there were several bids amounting to over 306,000 units at $26, the maximum the stock will trade at initially, against 23,811 on offer up to $26. Trading in the stock is halted until 10:30 but currently, there are 21 bids at $26 to buy 282,981 shares. On the other hand, the lowest offer is at $30.50 with 23,000 units, followed by 575 shares at $34.96 and 28,774 units at $35.01 and then 42,277 stock units at $44.97.
Main Market stocks jump
Stocks regained some of the grounds lost over the past three days in trading on the Jamaica Stock Exchange Main Market on Monday, after a 67 percent rise in the volume of stocks traded with a 39 percent higher value than on Friday, with trading in 56 securities compared with 58 on Friday, with 24 rising, 16 declining and 16 ending unchanged.
A total of 24,000,889 shares were traded for $78,140,528 up on the 14,340,680 units at $56,260,192 that were exchanged on Friday.
Trading averaged 428,587 shares at $1,395,367 compared with 247,253 shares at $970,003 on Friday and month to date, an average of 347,215 units at $4,904,572, compared with 340,544 units at $5,192,296 on the previous trading day. May averaged 226,361 units at $1,362,447.
Wigton Windfarm led trading with 14.03 million shares for 58.5 percent of total volume after the price closed at a 52 weeks’ high of 94 cents, Transjamaican Highway followed with 5.48 million units for 22.8 percent of the day’s trade and Sagicor Select Financial Fund with 1.52 million units for 6.3 percent of the day’s trade.
The All Jamaican Composite Index jumped 3,886.72 points to 364,321.23, the JSE Main Index surged 4,887.95 points to close at 327,418.41 and the JSE Financial Index inched 0.58 points higher to end at 73.47.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.3 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Investor’s Choice bid-offer indicator shows seven stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Berger Paints advanced 97 cents in closing at $8.05 after investors exchanged a mere 753 shares, Caribbean Cement gained 81 cents to close at $50 with an exchange of 852 units, Eppley Caribbean Property Fund increased 50 cents to $40 after an exchange of 164 stocks. First Rock Real Estate rallied 46 cents to end at $10.46 with a transfer of 412 stock units, 
GraceKennedy declined $2 and ended at $77 after 59,587 shares were transferred, Guardian Holdings popped $1.95 to close at $452 with investors trading 2,821 stocks. Jamaica Stock Exchange climbed 82 cents to end at $11.85 with investors transferring 8,200 stock units, Kingston Properties rose 39 cents to $7.49 while traders exchanged 610 units, Kingston Wharves popped $1.95 and ended at $29.95 after trading 42,089 stock units. Margaritaville rose $2.57 in closing at $17.82 with stakeholders trading 558 shares, Massy Holdings climbed $5 to $95, with 344 stocks crossing the market, Mayberry Jamaican Equities advanced 99 cents to end at $11.29 with shareholders swapping 360 units. MPC Caribbean Clean Energy dropped $10.99 to close at $60.01 and closed after 12 shares changed hands, NCB Financial rallied $1 in closing at $66.70 in an exchange of 81,431 stock units.
Seprod increased $4.50 and ended at $75, with 103,732 stocks clearing the market, Supreme Ventures fell 49 cents to close at $26 in an exchange of 21,724 units and Wisynco Group shed 50 cents to $18, with 318,008 stock units changing hands.
In the preference segment, Jamaica Public Service 7% lost $7 to end at $49 in switching ownership of 46 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Volume drops on the JSE USD Market
Trading on the Jamaica Stock Exchange US dollar market ended on Monday with a 23 percent decline in the volume of stocks changing hands valued 35 percent more than on Friday and resulting in the trading of four securities, down from 11 on Friday with one rising, two declining and one ending unchanged.
Overall, 764,260 shares were exchanged for US$20,272 compared to 992,059 stock units at US$15,037 on Friday.
Trading on Monday averaged 191,065 shares at US$5,068 compared to 90,187 shares at US$1,367 on Friday, with a month to date average of 74,695 shares for US$2,303 compared with 69,154 units at US$2,171 on the previous trading day. May ended with an average of 43,350 units for US$2,759.
The US Denominated Equities Index dipped 1.17 points to settle at 241.01.
The PE Ratio, a measure used in computing appropriate stock values, averages nine. The PE ratio is computed based on the last traded price divided by projected earnings done by ICInsider.com for companies with their financial year ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows two stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, First Rock Real Estate USD share shed 0.5 of a cent to close at 5 US cents with stakeholders trading 7,000 shares, Proven Investments dipped 0.3 of one cent to 15.7 US cents as investors traded 55,445 stock units, Sterling Investments rallied 0.01 of a cent to 1.6 US cents in trading 688,125 units and Transjamaican Highway remained at 1.44 US cents, with 13,690 stocks crossing the exchange.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
SOS directors to consider splitting the stock
The board of directors of Stationary & Office Supplies informed the Jamaica Stock Exchange that they will meet on Wednesday, June 21st to discuss and consider whether or not to recommend a stock split to the company’s shareholders.
SOS is likely to split stock in 2023.
According to the release, “the market value of the company’s stock has been on a consistent growth trajectory and the liquidity of the stock is also a significant consideration.”
At the last annual general meeting the CEO, Allan McDaniel stated that they were reviewing the matter of a stock split on an ongoing basis but that trading in the stock was fairly liquid as such there was no need to make the adjustment then.
ICInsider.com gathers that the $20 was likely to be the trigger point for a split. Last week the stock traded at $24 but pulled back to $20 where it is now trading, but if history is anything to go by, the price is likely to climb in Tuesday’s trading. With profits for the current year likely to hit nearly $2 per share and around $3 in 2024, that could push the price between $30 and $40 this year and $50 to $60 next year, a split in the order of 10 could place the price closer to where Junior Market investors could find the stock reasonably priced and encourage greater trading in it. 
A 10 to 1 split would lift the issued shares to just over 2.5 billion units which would be within a level that would facilitate a great deal of liquidity for a number of years, but the price could be back in the teens again in 2024. Even a 5 for 1 would result in an enhanced level of liquidity with just over 1.25 billion units in issue and push it to 16th Junior Market company in terms of the number of issued shares and 6th if a 10 to 1 split was to be approved. The prospects of profit jumping sharply in 2024, if achievable and seen by management as likely then a 10 to 1 split would seem to be the better option.
The split if approved by the directors, would require ratification by shareholders at a general meeting and that is likely to be at the company’s upcoming general meeting.
The next stock split could well come for Cargo Handlers, with thin trading currently with the price now in excess of $20. Dolphin Cove seems to be shaping for a possible spilt as well but that would be more likely down the road.
