1834 Investments, (formerly The Gleaner Company Limited) advised the Jamaica Stock Exchange that the Audited Annual Financial Accounts for March, 2016 will be late and unavailable for publication by May 30, 2016. 1834 anticipates that it should be available for publication on or before June 30, 2016.
This is bad news for investors and bad news for the capital market. Both the Stock Exchange and the Financial Services Commission who overseas such matters should hang their heads in shame for such failure that have deprived investors of getting important financial information on the company’s operations for more than 8 months.
In the past several companies have changed their year end, as recently as late last year Desnoes & Geddes and Access Financial changed their but provided investor with results for all relevant quarters, but the Gleaner Company who changed theirs to March from December did not do so. Regulators of the Stock Exchange gave some clumsy excuse why they could not ask for the December quarter results.
The rules of the Stock Exchange are quite clear, listed companies are required to submit a quarterly interim financial report within 45 days of each quarter. In the case where a company opts to release an audited account within 60 days of the year-end, they can opt in lieu of a quarterly report within 45 days.
The focus is on reporting quarterly, that comes before the audited. What seems to escape the regulators at the Exchange is that investors are kings and queens and they are to one to be foremost in the minds of the regulators to ensure that their investment is protected. One of the main means is timely financial information. If the exchange understood this they would have ensured that the Gleaner Company would be demanded to release the December results within 45 days.
Based on the exchange’s inadequate surveillance we now have a situation where the Gleaner Company (now 1834 Investments) have not reported financial for what looks like 6 months and who knows when it will release the information.
Markets thrive on information and that is the reason why the JSE opted long ago to the publication of quarterlies rather than a six months interim and it has served investors well.
Shameful, does the JSE care?
D&G saying good-bye on Wednesday
Desnoes & Geddes was saying goodbye to the Jamaica Stock Exchange on Wednesday, with a block trade representing the purchase of the minority shares amounting to 630,339,249 units carrying a value of $19,439,662,439 (US$163 million) at $30.84 each. At the close there were still over 10,714 shares on offer at $30 or more.
The market closed with 43 securities changing hands in all market segments, 18 of which gained and 8 declined. Five stocks closed at 52 weeks’ highs and Sagicor Real Estate Fund trading at an intraday high of $11.65 as 6,392,546 units valued at only $71,121,018 changed hands in all markets. The junior market accounted for 1,700,082 units changed hands, valued at $8,831,236.
The JSE Market Index climbed 952.94 points to 164,177.95 the all Jamaica Composite Index closed with a rise of 1,064.96 points to end at 182,434.42 and the JSE combined index gained 984.41 points to close at 174,922.90.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading was 13 stocks with bids higher than their last selling prices and 1 with a lower offer.
At the end of the market activities, Barita Investments ended with 64,500 units trading to close at $4.48, in continued response to 2015 full year results, showing 55 cents per share earnings. Investors continued to respond positively to increased nine months results for Berger Paints, by bidding the stock up by 20 cents to end at $4.20, with 117,500 units traded. 
Cable and Wireless with 146,673 units trading closed with a fall of 1 cent at $1.55. Caribbean Cement lost 39 cents to close at $28.60, with 3,500 shares changing hands, Carreras exchanged 35,941 shares at $63 and gained $1.45 in the process, Ciboney traded 100,000 and gained to end at 24 cents, Gleaner Company traded 23,817 shares and rose 6 cents to $2.70, Grace Kennedy closed at $82.50 with 6,094 units changing hands. Jamaica Broilers climbed $1 to $15 with 1,951,667 shares changing hands, Jamaica Producers ended at $30 with 21,500 units trading, Jamaica Stock Exchange closed with a loss of 25 cents at $19.75 with 42,577 units trading, JMMB Group traded 1,098,727 units but rose 4 cents to end at $10.95. Mayberry Investments had 50,655 shares changing hands at $4.60, National Commercial Bank traded 44,444 shares and gained 15 cents to close at $43, 
Pan Jamaican Investment traded 6,30 units to gain $3.50 and close at $97.50, Pulse Investments traded 50,000 shares with a rise of 25 cents to close at $3.50. Sagicor Group closed at $23.05 with 28,350 units changing hands, Scotia Group had 226,400 shares changing hands to close with a rise of 1 cent at $35 but the stock was offered at $34.50 at the close, Seprod added 91,557 units and gained 49 cents in ending at $19 but traded at a 52 weeks’ intraday high of $21.05, Supreme Ventures closed at $6.35 with 305,480 units changing hands. Proven Investments ordinary share traded 20,380 units to close at 22 US cents, down from Monday’s 22.89 US cents, JMMB 7.5% preference share traded 25,000 units at $2.10 and Proven preference share traded 19,400 units at $5.
JSE up in early trading
The Jamaica Stock Market has recorded decent gains in early trading on Wednesday but with limited volumes and only 13 securities had traded up to 10:30 with 3 coming from the junior market but the indices gained quite a bit. By 10:45 the main indices were all 
up by more than 1,000 points with only 14 securities changing hands with a volume of just 638,154 units as 2 stocks rose and 5 declined.
At 11 am, the all Jamaica Composite Index is climbed 1,355.87 points to 158,001.45, the JSE Market Index rose 1,213.25points to 142,315.11 the JSE combined index gained 1,286.95 points to be at 149,002.19 and the junior market index was up 15.84 points to 1,639.99.
Interesting trades, with 75 minutes having elapsed, are Gleaner Company with 318,300 shares at $1.4o and National Commercial Bank with only 3,600 units changing hands at $39.99 having gained $1.99.
JSE drops then jumps Tuesday morning
The Jamaica Stock market suffered large losses in the morning seconds before 11 am, in the process the All Jamaica Index trades at 110,787.47 to fall by 738.14 points, JSE Market Index declined 660.40 points to 100,067.42. The 
combined index fell 667.04 points to be at 103,642.18 and the junior market index 1,025.87, down 4.90 points.
A trade in Scotia Group that pushed the price back to $26 swung things around, with the all Jamaica Index jumping 934.41 points to 112,460.02, JSE Market Index gained 836 points to 101,563.82. The combined index was up 735.14 points to be at 105,044.36. The junior market index was at 1,024.90
Dolphin Cove fell 85 cents to $12.15, Gleaner Company traded at 63,082 shares and fell 56 cents to $2.17, Jamaica Broilers fell 89 cents to $6.10, Jamaica Stock Exchange traded at a new high of $8.50 with only 2,000 shares and Palace Amusement gained $5 to $65.
A total of 26 securities with a volume of only 766,233 units have traded with 8 stocks declining versus 7 that rose.
More gains for JSE Friday morning
The Jamaica Stock market made moderate gains in the morning session, after 90 minutes of trading, in the process the All Jamaica Index trades at 113,267.30 to rise 
111.29 points, JSE Market Index rose 99.57 points to 102,371.63. The combined index gained 96.81 points to be at 105,839.17 and the junior market index was at 1,037.47 rising 0.33 points.
Gleaner Company traded at 99,000 shares at $2.73 in the morning session while the Jamaica Stock Exchange traded 14,875 units at a new all-time high of $8.30, for an increase of $1.29.
A total of 15 securities with a volume of only 365,925 units have traded with 5 stocks declining versus 6 that rose. There is trading of 2 securities in the junior market.
RJR Gleaner a formidable political force
The Gleaner Company has been feared by the political forces of Jamaica for decades, as they know the pressure that the entity can wheel. The most telling evidence is the battle of socialism versus capitalism in the 1970’s when the paper relentlessly stood up against the then government of the day and won. If the political forces were fearful of the power of the Gleaner, combine the Gleaner with the other news media powerhouse in the country, RJR and the fear levels must have gone up several degrees since Wednesday’s announcement of the merger of the media business of the Gleaner Company, with that of RJR.
Oliver Clarke Gleaner chairman
The transaction, is to be pursued through a court approved scheme of amalgamation and will be a stock for stock deal. Radio Jamaica will issue 1.2 billion shares on a one for one basis to shareholders of The Gleaner Company in exchange for 100 percent of a newly formed subsidiary Gleaner Company (Media) Limited (GCML) which will hold the assets of the media entities of the Gleaner Company.
Simultaneous with the transaction, the remaining publicly traded Gleaner Company, with non-media assets comprising mainly real estate and other investments will be renamed. This will result in the shareholders of the Gleaner Company Limited owning 50 percent of Radio Jamaica’s stock and existing RJR shareholders owning the remaining 50-percent of the combined business.
The coming together will create the country’s leading Media Company, providing, print, online, radio, television, cable television and new media products and services.
The combined entity will have revenues of J$5.2 billion and assets of just under $4 billion. RJR had profit of $113 million for the year to March this year and Gleaner had a loss of $57 million for the year to December 2014. RJR had total assets of J$1.66 billion and the media segment of the Gleaner had assets of $2.17 billion.
“This combination creates a stronger company that delivers maximum value for our shareholders, greater career opportunities for our employees and superior experience for our customers,” said Christopher Barnes, Managing Director of Gleaner Company Limited. ”Both management teams have built industry-leading suites of products and services, and we’re excited to be part of delivering all of the possibilities to Jamaican consumers,” He added.
The expanded media group which will be renamed once the transaction is complete, is to be led by Chief Executive Officer, Gary Allen with Christopher Barnes as Chief Operating Officer. Lester Spaulding is to be Chairman with Hon. Oliver Clarke as Deputy Chairman.
“The current market, with the amount of existing players, is saturated; especially where there is low economic growth. When added to the recent moves by local telecoms to enter the media space, heightened competition is sure to put increased pressure on the industry. It is therefore very important that Jamaican media look also to shore up their resources in order to engage in the fast changing landscape, as well as to preserve the independence required for our media to do its work on behalf of the Jamaican people” Lester Spaulding stated.
The transaction close, subject to shareholder and court approval along with regulatory review and other customary procedures, is expected by the end of 2015.Radio Jamaica was listed on the Jamaica Stock Exchange (JSE) in 1994. The company is the parent entity in the RJR Communications Group. The members of the Group are RJR 94FM, FAME 95FM, HITZ 92FM, Television Jamaica (TVJ) and TVJ-Sports Network, Reggae Entertainment Television, RETV, and Jamaica News Network, JNN.
The Gleaner Company Limited, established in 1897, is the parent company of a group comprising media operations and investments in Jamaica, Canada, the United States and the United Kingdom. Publications include the 180 year old Gleaner Newspaper in continuous publication since 1834, The Sunday Gleaner, The Star and Weekend Star, the UK Weekly Gleaner, the Weekly Gleaner and Star in USA and Canada, Gleaner Online, Independent Radio Company (Power 106FM, Music 99FM), other print publications, websites and the Gleaner Archives.
This is a big merger and one that will require lots of skills to ensure that the mix of people who are involved can be brought together with little fall out and fall out there will be, if the full benefit is to be achieved from the merger. The greatest benefit will come from a large staff cut as areas of duplication in the newsroom and administration are eliminated.
Initially, the big winners will be the Gleaner shareholders who will be getting over $3 in value for sale of the Gleaner assets to RJR, in addition they will still have shares in the remnant of the Gleaner.
JSE off to slow start Monday
After 60 minutes of trading on the Jamaica Stock Exchange, 14 securities traded with 
4 rising and 6 declining comprising a total volume of 519,320 shares changing hands, only 2 stocks have so far traded in the junior market with both declining.
The all Jamaican Composite index inched up 179.45 to 108,283.79 points, JSE Combined Index put on 84.53 to 100,321.40 points, JSE Index is now at 97,827.49 points after adding 160.54 points and Junior Market Index fell to 892.53, down by 7.37 points.
The most noticeable trades so far are KLE with a small volume but ended down to 65 cents the lowest price it has traded at to date, Gleaner Company with 5,600 units at $1.29 with a 10 cents gain, for a 52 weeks’ high and Sagicor Group traded at $13. Paramount Trading has a bid at $6 versus the last traded price of $5.11 as investors try to find where supply may be.
JSE at 20 months high heading higher
Activity on the Jamaica Stock Exchange, took the market to a new 20 month high resulting from the prices of 7 stocks rising and 8 declining as 20 securities changed hands, ending in 10,902,372 units trading, valued at $48,753,888, in all market segments. Gleaner Company accounted for the bulk of the shares trading with 8 million units while Sagicor Group and Scotia Group each accounted for more than 1 million units.
The chart shows the all Jamaica composite index just crossing over short term resistance. Resistance from July 2007 at 91,700 points is the more important resistance level for it to break through to move to the next critical point of 100,000.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 9 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Gleaner in having 8,267,155 shares changing hands, closed higher by 19 cents at $1.10, Grace Kennedy closed trading with 15,600 shares trading to gain 50 cents to end at $62, Hardware & Lumber ended trading with 5,000 shares changing hands for 83 cents greater at $7.40, Mayberry Investments saw trading in 17,130 units to close with a gain of 16 cents to a 52 weeks’ high of $2.36 and Sagicor Real Estate Fund ended with 6,300 shares the price rose by 10 cents to $6.80.
Firm| The stocks in the main market to close without a change in the last traded prices are, Cable & Wireless dealing in only 17,500 shares at 55 cents, Jamaica Broilers contributing 3,000 shares at $4.06. National Commercial Bank concluding trading with 37,691 shares at $23, Radio Jamaica exchanging 5,000 shares at $1.37 and Scotia Group with 1,114,723 shares changing hands to close at $21.Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Carreras closed with 6,800 units as the price slipped 18 cents to $44, Desnoes & Geddes finished with 155,000 shares trading lower for 15 cents to $5.35. Jamaica Money Market Brokers with 149,000 ordinary shares closed with a loss of 2 cents at $6.90, Sagicor Group in trading 1,025,226 and lost 9 cents to $10.21 and Supreme Ventures finished trading with 28,487 shares with a loss of 20 cents to $2.20.
