JSE ticker tape

Medical Disposables IPO closed | Medical Disposables IPO closed this morning just after 9:00am and shortly after the official opening, IC Insider have been informed. The company placed 63.157 million shares on offer at $1.83 to raise $115 million.

Guardian leaves us | Guardian Holdings will no longer be available to trade on the Jamaica Stock Exchange as the company has applied for the shares to be delisted effective end of December. The stock is still available for trading on the Trinidad & Tobago Stock Exchange where the company is mainly listed. The delisting means less listing fees for the JSE come 2014.

Sagicor Group list by year end | Sagicor Life is expected to be delisted from the JSE by year end. IC Insider gathers that the JSE gave approval for Sagicor Group the direct parent company for Sagicor Life and Sagicor Investments to be listed and Sagicor Life to be delisted. Existing shareholders of Sagicor Life will receive shares equal to their existing holdings in the new company.

Related posts | Medical Disposables, OK not great

T&T PEs: Better buys ahead

Friday, 6th September 2013 | The PE Ratio chart for stocks trading on the Trinidad stock market has two movements to note for the week just ended.

Trinidad Cement fell sharply during the week to below $2 but the stock has become a more attractive buy with a potential return of 567% versus 350% last week. However, based on the closing bids and offers this stock could drop some more before reversing the recent decline.

Guardian Holdings fell to $14 this week, moving the potential gain from 250% last week to 270% this week and remains an attractive buy. Elsewhere in the market, not much has changed from this past week as prices remained fairly stable.

TTSE_PE+ChartSep6Below are charts that graphically show how TTSE stocks are ranked by PE Ratio potential.

Related posts | Cement could be good for your pocket |  | Guardian ongoing profits up 29%

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TTSE: 3 major changes in PE rankings

There have been three major changes in the Trinidad stock market‘s PE Ratio chart due to price movements this week.

Trinidad Cement (TCL) gained 42 percent in the week and more than 200 percent since May. Questions may be asked as to how much further it can go but the PE ratio chart still has the TCL stock as the one with the greatest potential for growth in the market. It has more room to run before it is fully valued based on this year’s company profit performance so it’s still worth either buying or holding on to.

TTSE_PE+Aug30Neal and Massy has come down relatively sharply in price, as has Guardian Holdings. The declines have made them more attractive buys even though Guardian seem like it has further to fall before it bottoms.

Related posts | TTSE: TCL is hot | TTSE: Neal & Massy drops $2.93 | Guardian ongoing profits up 29%

Image courtesy of Jeroen Van Oostrom/FreeDigitalPhotos.net

Dividends to come

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Jamaica Public Service Company declared quarterly preference share dividends payable on October 1, 2013 to shareholders on record as at September 13, 2013 with the ex-dividend date is September 11, 2013, as follows:

  • 7% Cumulative Preference Shares “B” – $0.035 per share
  • 5% Cumulative Preference Shares “C” – $0.025 per share
  • 5% Cumulative Preference Shares “D” – $0.025 per share
  • 6% Cumulative Preference Shares “E” – $0.03 per share

Dolphin Cove declared an interim dividend of 10 cents per share payable on September 16, 2013 to shareholders on record as at August 29, 2013. The ex-dividend date is August 27, 2013. The company previously paid a dividend of 10 cents per share on June 6, 2013 to shareholders on record as at May 20, 2013 as well as one in March this year.

Guardian Holdings declared a dividend of TT$0.15 payable on September 5, 2013 to shareholders on record as at August 22, 2013. The ex-dividend date is August 20, 2013.

Proven Investments declared a preference share dividend of $0.10 per share payable on September 23, 2013 to shareholders on record as at September 9, 2013. The ex-dividend date is September 5, 2013.

Proven Investments declared a dividend of US$0.0021 per ordinary share payable on September 10, 2013 to shareholders on record as at August 27, 2013. The ex-dividend date is August 23, 2013.

Related posts | Guardian maintains strong rating |  FX gains & securities boost Proven

Guardian maintains strong rating

A release from Guardian Group:

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Insider call | Guardian Holdings is an IC Insider Buy Rated stock and is traded on the Trinidad & Tobago Stock Exchange

Related posts | Guardian ongoing profits up 29%

Guardian ongoing profits up 29%

Guardian Holdings, an insurance group primarily involved with life insurance underwriting, reported after tax profit of US$11 million compared to $15 million earned in the first quarter last year. Last year’s results were bolstered by an exceptional foreign exchange gain of $3 million and this quarter’s outcome was impaired by the loss of $5 million derived from participation in Jamaica’s National Debt exchange (NDX). Excluding these two items, the after tax profits results would have grown 29 percent to $16 million.

Premium Income | Gross premiums grew 25 percent from $214 million in first quarter 2012 to $268 million in this first quarter. Excluding $12 million generated from a new acquisitions, gross premiums written grew by 20 percent.

Net results from insurance activities improved 52 percent to reach $20 million from $13 million in the previous year’s quarter. New acquisitions contributed $1 million, in line with management’s expectations.

The new Netherlands-based broker, Thoma, contributed $2 million in fee income. Investment income, excluding the loss relating to the NDX, came in at $36 million compared to $37.7 million in 2012 (exceptional foreign exchange gains are included 2012 figures). The new acquisitions resulted in increased operating expenses and finance charges increasing by 21 percent and moving costs from $32 million in 2012 to $38 million in this year’s quarter.

Segment Results | Premiums written in the Life, Health and Pensions business increased by 16 percent over the comparable period.  The Property and Casualty segment’s top line was bolstered by the recent acquisition of Globe Insurance, the quarterly results of which were consolidated into the Group’s figures for the first time, and by low-risk fronting arrangements from which fee income was received. Net premiums written, which are premiums after deducting fronting premiums and reinsurance costs, grew $5 million or 17 percent over the comparable quarter.

GHL_logographic150x150Operating profit, while still strong at $7 million for the first quarter, declined $2 million from the 2012 figure due to increased claims activity and the one-off effect of this segment’s portion of the NDX.

Integration | The company’s management said, “they have moved diligently with the integration of Globe and West Indies Alliance and are quite pleased with the achievements obtained to date. Thoma has been fully consolidated into our reporting and contributed $0.65 million to after tax profits this quarter. Although it has occurred after the reporting period, I am pleased to reveal that we have now received all necessary regulatory approvals for our acquisition of Royal & Sun Alliance, Antilles (RSA). Details will be given in the report for the ensuing quarter.

“The Asset Management business contributed $1 million in operating profits for the quarter, down from the $2 million earned in the same quarter last year. This decline is attributable to lower fair value gains in this quarter due to the weak investment climate persisting across the territories in which we do business.”

Assets & Equity | Guardian has the size and equity base to expand and grow profits. As of March, total assets amounts to $3.6 billion with shareholder’s equity of $500 million.

Stock outlook | Earnings per share last year came in at US22 cents or TT$1.40, which is fetching a stock price of TT$17 on the Trinidad stock market giving it an historical PE ratio of 12. Investor’s Choice projects US30 cents per share for 2013 putting the PE at just 9. Compare that to West Indian Tobacco with a rich PE of 27 or Republic Bank with 15 times. It would appear that dividend yield is a major force for the PE differential. WITCO yields around 3.30 percent while Treasury bill rates are under one percent. Guardian has a yield of 3.7 percent.

A buy | Guardian is a good long term investment for a stock that is clearly undervalued in a market where price earnings ratio tend to be much higher than the level Guardian is priced at.