JSE: Cable & Wireless dominates trade

February 11, 2014 by

Tuesday, 11th February 2014 | Cable & Wireless dominated trading on the Jamaica stock market with 25 million units as the stock closed at a new 52 weeks high of 34 cents in reaction to news out of the UK parent company that mobile revenues had climbed 43 percent in the December 2013 quarter over that of 2012.

Prices of 9 stocks rose and 10 declined with a total of 28 securities trading, resulting in 28,122,916 shares changing hands for a value of $40,180,273

The JSE All Jamaican Composite declined by 109.45 points to close at 83,682.30. The JSE Market Index gained 8.97 points to 79,193.51.

Main Market gains | Stocks with increased prices at the end of trading include Caribbean Cement with 536,064 shares as it gained 48 cents to close at $4.60; Carreras closed up by 65 cents to $35 while trading 66,036 units; Gleaner traded 5,000 units to close at $1.15 for a 5 cents improvement; Kingston Wharves had 10,805 to close up 6 cents at $6.06; Scotia Investments traded just 3,136 units as the price closed at $26.50 for a $2 increase.

Firm trades | Berger Paints having 1,000 units at $1.75; Ciboney with 557,600 units at 10 cents; Jamaica Broilers had 1,000 shares trading to close at $4.86; Grace Kennedy, 990 shares, as the price closed at $55 and Seprod closing at $11 with 500 shares trading.

Losers | Amongst the losing stocks are Desnoes & Geddes with 429,937 shares to close at $4.86, a fall of 14 cents; First Caribbean International Bank with 800 units to shed $1 to close at $80; Jamaica Money Market Brokers had 122,797 units trading with the price easing 5 cents to close at $7.40; Mayberry traded 8,000 shares to close at $1.91, down by 9 cents; National Commercial Bank traded 16,417 units to close at $18 for a 10 cents decline; Sagicor Group 18,774 shares to close at $9.10, a decline of 20 cents; Sagicor Investments with just 1,000 units to close at $18.00 for 50 cents decline. Sagicor Real Estate X Fund declined by 1 cent to close at $7, with 14,605 units changing hands; Scotia Group exchanged 1,084,114 units as the price fell by 10 cents to close at $21; Supreme Ventures exchanged 48,700 shares at $2.39, one cent less than the opening price.

The JSE Junior Market Index closed with a gain of 10.91 points to 759.95 as only six stocks traded in this market on Tuesday.

JSEIndicesFeb11Junior Market winners | Three stocks to close higher are Caribbean Producers trading 20,000 shares to close at $2.70, up 15 cents; Lasco Distributors with 73,000 at $1.45 up 10 cents and Medical Disposables 44,000 units trading up 4 cents to $2.10.

Firm trades | AMG Packaging trading only 100 shares to close at $3.60; Consolidated Bakeries with 14,300 shares to close at $1.15 and Lasco Financial with 21,253 shares at $1.35.

Declines | There were no declining stocks in the junior market.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 6 stocks with bids higher than the last selling prices and 4 stocks with offers that were lower.

Filed Under: JSE Main Market, Stock Market Tagged With: , , ,

Huge mobile growth for C&WJ

February 11, 2014 by

Buy Rated Alert! Cable & Wireless Jamaica now elevated to Buy Buy rated from Market Watch based on the strong increase to subscriber base and mobile revenue growth.

Cable & Wireless Communications Plc is reporting that Cable & Wireless Jamaica continued its momentum in growing its mobile subscriber base, increasing by 23% in the December quarter last year over the last quarter of 2012. In a release to investors the UK listed aren’t company said, “Subscriber growth momentum in our Jamaica business was sustained and quarterly mobile service revenue rose 42% on the prior year in local currency”.

cable-and-wireless-worldwide280x150Cable & Wireless Jamaica stock traded on Wednesday, February 5th as high as 32 cents to record a gain of 100 percent for the year to date. However, the price, closed at 31 cents, a gain of 94 percent for the year-to-date and a new 3 year high.

IC Insider understands that between May and November, 250,000 new cellular customers were added to the network and new customers continue to be added at the same pace. In addition, the Christmas promotion went well with some phones sold out ahead of December and most of the phones sold involved data plans. Going forward, it will translate to billions of dollars in increased revenue per annum for the company.

At the close of trading on Monday, there were 5,147,967 shares on offer by Mayberry Investments at 32 cents to sell. The broker switched from selling and instead bought 5,000,000 units at 32 cents at the start of trading on Tuesday.

Related posts | Cable & Wireless up 56% in January

Filed Under: Company News, General Business News Tagged With: , , ,

JSE: Starts week down

February 10, 2014 by

Monday, 10th February 2014 | JSE Market and the All Jamaican Indices were down on the Jamaica Stock Exchange as the prices of 10 stocks rose and 9 declined with a total of 31 securities trading, resulting in 2,016,956 shares changing hands for a value of $38,412,196.

The JSE All Jamaican Composite declined by 380.26 points to close at 83,572.85. The JSE Market Index fell by 250.68 points to 79,184.54.

Main Market gains | Caribbean Cement with 29,870 shares as it gained 10 cents to close at $4.12; Carreras closed up by 25 cents to $34.35 while trading 65,939 units; Jamaica Broilers had 51,214 shares trading and was up 6 cents to close at $4.86; Mayberry traded 2,000 shares to close at $2, up by 15 cents; National Commercial Bank with 302,200 units to close at $18.10 for a 10 cents gain; Sagicor Real Estate X Fund increased by 1 cent to close at $7.01, a new 52 weeks high with 8,700 units changing hands; Scotia Group with 59,150 units as the price rose by 9 cents to close at $21.10; Seprod rose 10 cents to close at $11 with 15,000 shares trading.

Firm trades | Six ordinary shares traded firm in the main market and two in the preference section. Berger Paints having 166,803 units at $1.75; Cable & Wireless with 403,970 shares to close at 30 cents; Grace Kennedy with 303,243 shares as the price slipped by 10 cents to $55; Jamaica Producers with 128,000 shares at $18.75; Kingston Wharves 22,753 shares to close at $6 and Radio Jamaica 6,245 shares at $1.60.

Jamaica Money Market Brokers 8.75% preference share traded 10,000 units to close at $3 with and the 7.25% closed at $2.50 while trading 1,000 shares.

Losers | Counted amongst the losing stocks are Barita Investments with 3,000 units at $2.50, a 10 cents drop; Jamaica Money Market Brokers had just 1,150 units trading with the price easing 3 cents to close at $7.40; Sagicor Group 25,491 shares to close at $9.30, a decline of 20 cents; Scotia Investments traded just 1,693 units as the price closed at $24.50 for a fall of $2; Supreme Ventures exchanged 13,800 shares at 3 cents less than the opening price.

JSEIndicesFeb10The JSE Junior Market Index closed down by 6.62 points to 749.04 as the price of only 2 stocks gained and 4 declined.

Junior Market winners | Access Financial with a gain of 10 cents in trading 9,028 units to close at $10.56 and Lasco Financial with 64,100 shares at $1.35, up 15 cents.

Firm trades | AMG Packaging trading only 1,054 shares to close at $3.60; General Accident 90,649 shares to close at $1.60 and Honey bun with 5,000 shares and closed at $3. Eppley 9.5% preference shares traded 21,600 units at $6.

Declines | Four stocks that suffered declines include Caribbean Producers while trading only 4,000 shares to close at $2.55 and down 15 cents; Dolphin Cove with 4,900 units, closing down 30 cents to end at $8.60; Lasco Manufacturing 55,962 units to close down a cent to $1.25 and Medical Disposables 10,000 units trading down 4 cents to $2.06.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with bids higher than the last selling prices and 4 stocks with offers that were lower. The reading, which had climbed to 10 to 2 on Friday, is back to the levels seen last week Thursday with a 4 to 4.

Filed Under: JSE Main Market, Stock Market Tagged With: , , ,

Cargo Handlers’ solid quarter

February 7, 2014 by

For the December quarter 2013, revenues excluding interest income, grew by 23 percent for the Montego Bay based and junior listed Cargo Handlers and profit reached $27.99 million, up from $22 million in 2012. Total revenues amounted to $51 million, up from $41.6 million in the previous year’s quarter and operating revenues grew by 9 percent to $44.3 million. Operating expenses grew from $20 million to $23.4 million, an increase of 15 percent.

Earnings per share rose from 53 cents to 67 cents in the quarter, an increase of 26 percent. Earnings for 2014, which ends in September, should be close to $3 per share. For the year to September 2013, the company earned $2.27 per share.

CargoHandlersLiquidBulkCarriersThe results do not yet reflect the proposed acquisition of the tanker operating company for transporting fuel. The company indicates that the acquisition should be concluded during February. A deposit of $69 million against the purchase was made and is included in receivables on the balance sheet in December at $95 million, an increase over $19 million as of September 2013. Cash is down from $131 million in September to $69 million at the end of December. The company is debt free.

The purchase will be fully in cash so there should be further depletion of cash when the deal is concluded. There should be some administrative cost savings as some of the functions now done by the transport company can be transferred to Cargo Handlers thus saving on cost.

A dividend of 50 cents per share was just declared by the company and is payable in March 6, 2014.

Related posts | Cargo Handlers announces acquisition | Profits up at Cargo Handlers

Filed Under: Company News, Company Results Tagged With: , ,

New products for Medical Disposables

February 7, 2014 by

Medical Disposables & Supplies has advised the  Jamaica Stock Exchange that they have entered into a distribution agreement with Denk Pharma.

The company indicates that Denk Pharma is a premium Pharmaceutical manufacturer since 1948 with headquarters in Munchen, Germany. Denk has maintained a presence in Jamaica for 16 years and has appointed the company as a co-distributor for its entire product range islandwide.

DenkPharmaMedical Disposables & Supplies was listed on the Junior Market in December last year after a successful IPO.

Related posts | Medical Disposables, OK not great

Image courtesy of DreamDesigns/FreeDigitalPhotos.net

Filed Under: Company News, General Business News Tagged With: , ,

Derrimon Trading goes for $200m

February 6, 2014 by

Recently listed Derrimon Trading Company goes the capital market to raise up to J$200,000,000 from an 18 months Secured Commercial Paper with a minimum denominations of J$1,000,000.00 and increments of $100,000 at a fixed rate of 12.25 percent per annum. Interest is payable monthly, which raises the effective rate beyond that stated. The net proceeds from the issue will be used for working capital and general corporate purposes the term sheet states.

The issue date is February 6, 2014 and Maturity is August 6, 2015. Withholding tax shall apply to Note holders in accordance with applicable laws. Mayberry Investments are the brokers for the issue.

Derrimon Trading went public last year December and raised $102.5 million in fresh capital in an IPO offering for working capital, expansion and cost of the IPO estimated not to exceed $9.5 million, the prospectus stated.

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

The problem here is that if they succeed with the current issue which involves expensive money, borrowings will exceed equity capital. Borrowed debt should not be more than 50 percent of equity capital, the accepted norm.

The last balance sheet. disclosed at the time of the IPO, showed a company with adequate working capital, requiring more equity injection than the IPO brought in to align the current asset ratio in line with the accepted norm of $2 of current assets versus $1 of current liabilities. Instead, what existed then was $1.15 to $1 and even with the infusion of funds from the IPO, it would have gone to a still inadequate $1.33 to $1.

Related posts |  Derrimon Trading, high risk low returns | Derrimon not over by much

Filed Under: Company News, General Business News, Initial Public Offers, Stock Market Tagged With: , ,

CPJ’s new St Lucia venture

February 6, 2014 by

The Board of Directors of Caribbean Producers Jamaica advises that the company signed a Shareholders’ Agreement on February 4th, 2014 to form a joint venture with the Du Boulay Bottling Company, the Coca Cola manufacturer operating in Castries, St. Lucia.

The new company will be called CPJ St Lucia Limited and commences operations as a foodservice distributor in Castries, St. Lucia in the near future. Caribbean Producers will retain controlling interest of this company.

Caribbean Producers Jamaica is an IC Insider’s Buy Rated Stock. Click here for the full list of recommended stocks to purchase.

Related posts | CPJ’s big jump in profits | New additions to Buy Rated list

Filed Under: Company News, General Business News Tagged With: , ,

First Caribbean may be delisted

February 6, 2014 by

First Caribbean Bank has left it to the Jamaica Stock Exchange to determine if they will delist the shares, according to an advert put out by the Bank, which is listed on various exchanges within the region.

The JSE advised them that the number of shares in the public hands is less than 20 percent as is the requirement. In addition, the level of trading is below the threshold desirable, being less than 2 percent average over 36 months, prior to the making notice to the Bank. As a result, the advert also indicated that the company was in breach of section 402b (1)(b) of the JSE rules.

After careful review of the matter, the bank has determined that it will not be feasible for either the proportion of the non-majority held shares or the average total traded volume to be raised to the minimum required in the foreseeable future.

FirstCaribbeanLogo150x150The bank has decided that it will accept that it will be delisted by the JSE and has invited the JSE Board to exercise its discretion under rule 411a to delist the bank at its February meeting.

The bank is the largest holding by market share on the exchange and this will be the second large corporation taken off the exchange this year, if in fact, the JSE moves to delist to shares.

Trinidad Guardian Holdings opted not to remain listed on the JSE at the start of 2014 based on the low level of trading in its stock. The JSE went public last year against the background of lower income and profits than the year before and these moves will mean reduced income for the JSE and most likely worsen the loss position they suffered in the last three quarters of 2013.

Related posts | FCIB gets punched | JSE IPO oversubscribed by 41%

Filed Under: Company News, General Business News, JSE Main Market, Stock Market Tagged With: , ,

JSE: Advances more than declines

February 3, 2014 by

Monday, 3rd February 2014 | The first trading day on the Jamaica Stock Exchange for the new month saw more stocks gaining value than those that lost but the main market indices fell as 27 securities changed hands with 8 advancing and 6 declining.

The JSE Market Index lost 951.58 points to end at 81,436.23 and the JSE All Jamaican Composite declined by 1,443.46 points to close at 83,938.97. For the Junior Market, the index slipped by 3.93 to close at 780.55. Trading resulted in only 2,182,178 units changing hands with a value of $18,449,519.

Main Market | As the market gave back some of the gains garnered towards the end of January, investors have to learn to stomach the month-end moves and not get caught up in the hype that often accompany seasoned investors behaviour towards each month end. The pull back in prices of some of last week’s winners, namely Scotia Group, National Commercial Bank and to a lesser degree Grace Kennedy and Scotia Investments, had a telling impact on the main market indices.

Stocks gaining | Cable & Wireless with 215,000 units to close at a 52 weeks high of 27 cents with the price gaining 2 cents at the end of trading; Caribbean Cement exchanged 22,056 shares with the price increasing by 13 cents to end the day at $4.80; Carreras 30,780 shares to close at $33.99 for a 49 cent gain; Ciboney with 491,000 units closed up 2 cents at 8 cents; Gleaner with 4,878 shares gained 2 cents to close at $1.12; Jamaica Money Market Brokers gained 9 cents to close at $7.49 with 60,700 shares.

Stocks falling | Desnoes & Geddes with 41,286 units to close at $4.98 as the price slipped by 52 cents; National Commercial Bank with only 3,636 units at $17.40 for a fall of 60 cents; Scotia Group 673,560 units closing at $20.71 for a $1.23 drop; and Scotia Investments with just 8,740 units as the price fell $3.40 to end at $23.10.

JSEIndices3rdFebFirm Trades | Kingston Properties with 55,680 shares at $4.45; Sagicor Investments 7,235 units at $20 and Sagicor Group with 81,885 shares changing hands at $10. In the preference section, Jamaica Money Market Brokers 7.50% traded 54,119 units at $2.

Junior Market | Of the ten stocks trading in the junior market, only 4 had much volume changing hands.

Gainers | Caribbean Flavours traded only 2,750 shares at a new all-time high of $2.85, the price was up by 35 cents. The company announced that the board of directors will be meeting on February 5, 2014 to consider the payment of a dividend. Lasco Manufacturing traded 101,086 units to close up a cent at $1.32.

Firm Trades | Lasco Distributors traded 149,915 units and closed at $1.45; Consolidated Bakeries traded with 52,765 units at $1.15 and AMG Packaging 7,050 shares at $3.45.

Stocks falling | Lasco Financial Services traded 99,000 units, lost 4 cents to close at $1.35 and Medical Disposables 5,000 units at $2.05, down 5 cents.

IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 7 stocks with bids higher than the last selling prices and 1 stock with the offer that was lower.

Filed Under: JSE Main Market, Stock Market Tagged With: , , ,

Buy rated: Coming in from the cold

February 1, 2014 by

A number of the Buy Rated stocks are coming in from the cold as prices rose during the last week of January.

The Jamaica Stock market made big strides, separate and apart from the flurry of trading action emanating from the landmark announcement of Sagicor Group’s acquisition of RBC’s Jamaica operations. Wednesday’s trading activity was the best day for months as 21 stocks advanced in price and the main market indices climbed sharply on three consecutive days.

The Jamaican main market trading had 8 stocks climbing and only 1 declining. Sagicor Group gained 18 percent in the aftermath of the RBC takeover, Scotia Group put on 7 percent, Barita gained 4 percent and Caribbean Cement 3 percent.

Percent on falling cubes280x150pxThe Junior market had mixed fortunes with three of the Buy Rated selections rising; Caribbean Producers gained 2 percent and Lasco Manufacturing 4 percent, while Caribbean Cream fell 9 percent and General Accident fell by 4 percent.

Only one stock lost value on the Trinidad Stock Market as First Citizens dipped 6 percent by week end and Sagicor Financial gained 4 percent.

Jamaica Stock Exchange | From inception of the Buy Rated list in July 2013, Barita is up 13 percent, Caribbean Cement 77 percent, Hardware & Lumber 76 percent, Sagicor Group 5 percent. Those with losses in the main market are all less than 10 percent with JMMB at 8 percent being the largest loser. Junior market stocks are not fearing as well with only Access Financial which was up to 44 percent when we pulled it and placed it as Market Watch. Caribbean Producers is up 35 percent so far and Blue Power way behind at 7 percent increase. The big losers so far are Lasco Manufacturing down 21 percent, Caribbean Cream 18 percent, Jamaican Teas off by 14 percent and Lasco Financial 10 percent.

BuyRated31Jan2014Trinidad Stock Market | First Citizens, which gained 52 percent in the first round, is up 2 percent since being reinstated to the Buy Rated list even as the price declined from its peak. Neal & Massy is now up 11 percent, Grace Kennedy 12 percent, One Caribbean Media 8 percent, Republic 6 percent, Trinidad Cement 130 percent and 12 percent for Sagicor Financial. The losers number only 4 with Guardian Holdings down 14 percent, JMMB 2 percent, Point Lisas 8 percent and Scotia Investments 24 percent.

The coming week could be interesting in the Jamaican market as the past week showed signs of increased interest in the market. Will the interest continue into February or  just a month-end dressing? Whatever the case, what is quite clear is that the supply of stocks for many of the Buy Rated stocks have been waning with some having virtually none on the sell side. February could see the return to a decisive bull market.

Related posts | RBC acquisition confirmed | First Citizens off Buy Rated list

Image courtesy of tungphoto/FreeDigitalPhotos.net

Filed Under: Company News, JSE Main Market, Stock Market, TTSE Market Tagged With: , ,