Sagicor Group have been enjoying trades by insider on several occasions this year. The group recently advised that a director purchased 249,648 shares between November 27 & December 1, this year.
The last time before this that an insider traded in the company’s stock was in October, when the company advised that an executive Purchased 417,016 shares under the SGJ Executive Long Term Inventive Scheme on October 24, 2014.
The financial group saw a sharp fall in profit in the quarter, from $1.56 billion to $1.1 billion and net profit of $3.84 billion, with $3.79 billion available to stockholders, for the nine months to September, which was 2.5 percent better than in 2013. the decline in profit in the September quarter is due primarily to cost associated with the acquisition of RBC Royal Bank local operation at the end of June this year. With staff reduction, branch closures and amalgamations, the losses in the acquired banking operation should be sharply reduced from that in the September quarter.
More insider buying at Sagicor
More directors’ buying of D&G shares
Desnoes and Geddes (DG) is undertaking lots of changes in it’s operation, that should help reduce cost and push up the bottom-line. Reduction in energy, partial switch from imported malt to the use of locally grown cassava, upgrading of the brewery to reduce operational cost and the eyeing of new markets, are all some of the things the brewing company is doing, that should transform its financial fortunes.
IC Insider’s forecast for the current year, is for profits to hit 90 cents per share and $1.20, the following year.
The directors have bought into the prospects of increased fortunes down the road for the company. Accordingly, D&G advised the Jamaica Stock Exchange that a Director purchased 2,270,000 of the company’s shares on October 9, 2014, on October 10, a director purchased 41,000 shares and on October 8 and 9, a director purchased a total of 251,147 shares.
Prior to these purchases directors also purchased 857,650 shares in September. On June 13, there was a sizeable purchase of 1,971,000 shares by a Director, with smaller amounts being bought between then and the September purchases.
Insiders pick up 5m Sagicor shares
Two Executives of Sagicor Group purchased a total of 4,979,956 shares, under the company’s Executive Long Term Incentive Scheme, on September 29, 2014, the company advised the Jamaica Stock Exchange. The purchase brings to 8,414,404 units acquired mostly by executives since June. Executives sold a total of 3,075,556 units during the same period.
The Group offers stock grants and stock options to senior executives as part of its long-term incentive plan. The Group has set aside 150,000,000 of its authorised but un-issued shares of $0.10 each for the stock grants and stock options. The lowest price option is dated March 2009 and would expire in March 2016 with an exercise price of $7.66 for 5,069,770 shares. All the rest that are vested, have an exercise price that are above the current stock price of $9.65. The exercise prices for the rest range between $10.45 for the 2010 vested amount of 4,039,454 with an expiry date of March 2017 and $14.10 for the 2012 vested amount of 1,813,036 shares, with an expiry date of 2019.
The Group also has in place a share purchase plan which enables its administrative and sales staff to purchase a pool of Sagicor Group shares at a predetermined discount rate of the closing bid price on December 31 each year. During 2013, the Staff Share Purchase Plan Trust purchased 3,417,136 shares over the Stock Exchange for a total value of $28,380,000.
More insider buying of D&G shares
Within less than a month of the release of Desnoes and Geddes full year results, to June, the company is reporting another purchase of shares by a director. The latest, is 3rd such inside purchase to have taken place, since the June results were released.
The latest acquisition is 507,650 shares on September 23. This comes on the heels of Desnoes and Geddes reporting strong full year results, with the promise of higher earnings, in the new fiscal year. The company previously reported the purchase 250,000 shares by a Director, on August 29, 2014 and 100,000 units, on September 1.
Watch this one – Big inside trades at Jamaica Broilers
Investors should be keenly watching development at Jamaica Broilers. The company recently, advised the Jamaica Stock Exchange that senior management and directors purchased a total of 7,854,620 shares on August 15 and a Director purchased 237,500 shares on August 14, 2014.
The total cost of these trades would be in the order of $36.5 million. More significantly, there has not been any trade of this magnitude for years by insiders.
The trades may be carrying coded messages to the wider investing public as to what may be happening to profit. On July 30, this year, a director sold 500,000 shares, and a director purchased 574,651 of the company’s shares on March 28 and back in 2013 a related party sold 1,500,000 of the company’s shares to another related party on November 14.
A check with the Jamaica Stock Exchange shows the only other year recently that there was major trading in the stock by insiders was back in 2012, when seven Senior Managers purchased a total of 8,774,697 of the group’s shares on September 14.
The other times of major buying of the stock by managers and directors, was between April 2006 and April 2008. The trades in late 2007 triggered some outcry by investors which led to the company making a public statement in connection with the trades.
At the time of major trading of the shares by insiders in 2007, the company released a report to the Jamaica Stock Exchange around October 4, which stated that “Shares in Jamaica Broilers Group were traded by some directors and senior management in September 2007 during the time window which is allowed by the Jamaica Stock Exchange providing there is no material event requiring disclosure. We wish to State unequivocally that, when these shares were traded, there were no inside knowledge of any circumstances that were no available to the general public.
When these trades took place the company was of the view that – based on a sale contract with affixed selling price – good results would have been realised for the second quarter, irrespective of the reduction in world market prices for fuel graded ethanol.”
IC Insider projects that profits for the current year should hit a record $1.25 per share or $1.5 billion up from 79 cents per share or $950 million for the year to April 2013. The next set of results are due around the 8 of September and will be for the first quarter to July.
