JSE: Sagicor X fund lists

November 15, 2013 by

Friday, 15th November 2013 | Sagicor Real Estate X Fund, which went to the public in September to raise additional capital, started trading as the 67th listing on the Jamaica Stock Exchange for the first time on Friday. The shares rose 7 cents from the IPO price of $5 with 45,421 units changing hands at $5.07, to end the day at an all-time high.

Elsewhere, the market indices reflected the general negative tone with the JSE main index closing at 78,407.85, a decline of 465.90 and the all Jamaica Index slipped 809.94 to close at 76,832.37; the junior market index declined by 2.55 to close at 726.01.

There were 11 stocks declining in price with 4 advancing as 27 securities traded amounting to 2,066,618 shares valued at $26,406,422.

Main Market | Trading in the main market accounted for 407,782 Cable & Wireless shares, as it closed at 15 cents down a cent; Carreras 535,372 shares valued at $18.7 million with the price closing firm at $35; Gleaner with 63,007 units at a closing price of $1.11; Grace Kennedy with 13,316 units to close at $56.02 down $1.48; Jamaica Money Market Brokers 14,000 units at $7.86 down 15 cents; Jamaica Producers swapped 25,387 shares and closed unchanged at $18.25; Jamaica Stock Exchange had 5,000 shares trading as the price slipped 30 cents to close at$2.50, a new all-time low; National Commercial Bank fresh from reporting below expected profit in the September quarter, traded just 10,393 units and closed at $18, down 20 cents; Pan Jamaican Investment traded 34,720 units in closing firm at $48.05; Sagicor Life exchanged 20,850 shares with the price inched up a cent at $7.71; Scotia Group had 143,768 shares changing hands and closed at $17.52 down 48 cents; Supreme Ventures traded 30,706 units firm at $2.60 and Jamaica Money Market Brokers 7.50% swapped 50,000 units, unchanged at $2.

JSEIndicesNov15Junior market | There was trading of 7 companies’ shares with Dolphin Cove accounted for 8,630 units and closed 2 cents down at $8, in spite of the company posting increased profits of 78 percent for the September quarter and 27 percent for the nine months to September with year to date earnings coming in at 81 cents versus 63 cents in 2012. Jamaican Teas posted 7,374 shares and closed at $3.60; Lasco Distributors saw 473,400 units changing hands to close firm at $1.45; Lasco Financial Services traded 53,462 to close at $1 and Lasco Manufacturing exchanged 96,000 units as the price closed firm at $1.40.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 5 stocks higher and 5 stocks with offers lower than their last selling price.

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

NCB cuts dividend 75%

November 15, 2013 by

National Commercial Bank (NCB) reported bad news for investors on two fronts on Thursday when it released its full year results to September.

Not only was profit down, which was expected as a result of the write down of investment emanating from the NDX debt swap earlier in the year, but the final quarter results fell well below what was expected, from 92 cents in the June quarter and $1.10 in September 2012, to just 71 cents in the last quarter. The banking group chopped the final dividend payment for the year as well from 64 cents last year to just 16 cents. The latest announced dividend will be paid on December 12. The company’s pay-out ratio is just 18 percent, well below last year’s pay-out ratio of 34 percent and the company’s stated policy.

This year, NCB’s total payment will be 63 cents per share versus $1.40 last year unless they declare another one before year end, which they have done in the past.

In November last year, a dividend of 64 cents was paid compared to 34 cents paid at the same time in 2011. The dividend pay-out ratio for the 2012 financial year to September amounted to 27% and for the 2011 financial year 25.7%, compared to 42.2% for September 2010.

In August, NCB paid a dividend of just 8 cents, on May 24, a dividend of 16 cents per share was paid and 23 cents in March. The August payment represents a decrease from 17 cents paid in 2012 while the May 2013 payment represents a decrease from 21 cents paid in May last year. The March payment compares to 38 cents paid in January 2012.

The cut and carving of dividend payments from one period to the next is in keeping with an unpredictable policy the company has been executing even after repeating a previously announced policy fairly recently. The execution is in stark contrast with a very consistent and predictable policy of Scotia Group and many other companies on the stock exchange.

Related posts | NCB cuts dividend in half | NCB recovers from NDX hit

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

KLE continued losses push Matalon

November 15, 2013 by

The loss making KLE Group Limited advised that Joseph M. Matalon has resigned as Director and Chairman of the Board of Directors of the Company with effect on December 15, 2013 and Audrey Marks will assume Chairmanship of the Board of Directors effective the same day.

Joseph M. Matalon has also resigned as Chairman of the Audit Committee with effect from December 15, 2013. Matalon’s resignation from the Audit Committee was in no way related to any disagreement in respect of accounting principles, financial statement disclosure or any other material issue impacting the Audit Committee or its function, the company stated.

The resignation comes against the back drop of the company reporting another quarter of losses, which is worse than the same quarter last year despite the rise in revenues from $82 million in the 2012 quarter to $102 million in 2013. For the September quarter, losses climbed to $12.4 million up from a loss of $1 million in 2012 and for the nine months period the loss is $48 million versus $10.5 million in 2012. For the nine months, revenues climbed from $215 million to $249 million. Compounding the matter is that interest cost climbed to $9.75 million in the latest quarter from $6.58 million last year and $23 million year to date versus nearly $20 million last year.

Matalon, being a board member of Scotia Group, would have most likely paid a major role in the decision to exit the loss making company that in all probability will be struggling to turn things around.

Related posts | Bolt won but he could still lose | KLE Group — to buy or not?

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

JSE: Heavy trading in Carreras JBG & Scotia

November 14, 2013 by

Thursday, 14th November 2013 | There was heavy trading on the Jamaica Stock Exchange in Carreras, Jamaica Broilers and Scotia with Carreras accounting for another day of large trades following Wednesday’s 9.8 million units.

Carreras saw trading in 2,831,971 units of the stock valued at $99,144,875 but closed firm at $35 as the company reported earnings of $1 per share for the September quarter in line with the June results, but revenues was down less than in the June quarter. The company’s sales are still to recover from the impact of a price increase earlier in the year and the resulting stock piling of inventory by the trade. Jamaica Broilers had 1,500,000 units being crossed early in trading valued at $6,765,000 as the price inched up 1 cent at $4.51 and Scotia Group put in 3,786,432 units valued at $68,217,133 as the price ended at $18, down 37 cents.

The total shares traded numbered 8,853,281 units at a value of $176,300,455 as 3 stocks advanced and 6 declined in price on a day when only 17 companies stocks traded. The indices were down once more with the Main Market index down 274.58 to 78,133.27, the all Jamaica index shed 483.12 to close at 77,642.31and the Junior was down marginally to close at 728.56.

Mayberry Investments put in 289,772 to close unchanged at $1.91; Pan Jamaican Investment had 10,464to close at $48.05; Scotia Investments exchanged 27,123 to close at $26.01 down $1.99; Seprod 2,236 units helped in pulling the price down to $12, down $1 following poor third quarter numbers showing profit off from $196 million in 2012 to $80 million in the 2013 quarter. Supreme Ventures also reported lower results in the third quarter of $32.6 million versus $125.6 million in 2012.

JSEIndicesNov14Jamaica Money Market Brokers 8.75% preference traded 32,200 units and closed firm at $3.

Junior Market | Trading in the junior market has seen little interest as only 4 stocks traded with Dolphin Cove changing 5,600 units at $8.02; Lasco Distributors 11,000 closing at $1.45 and Lasco Financial Services exchanged 108,171 units, unchanged at $1.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 4 stocks higher and 6 stocks with offers lower than their last selling price, reflecting a market that more weak than strong currently.

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

Jamaican Teas raises over $100m

November 14, 2013 by

Jamaican Teas went to the bond market in October to raise $200 million in an 8.5 percent bond issue. The offer, which closed on November 7, received over 80 applicants for just over J$100 million. The company plans to be employ the proceeds for capital projects. The note is a four year instrument fixed at 8.5 percent per annum for the first two years and variable thereafter.

“I want to congratulate the Stocks & Securities team on another successful offer. This one is significant because we were able to raise the funds needed by the client at a rate of 0.10% below the last GOJ Treasury auction. Jamaican Teas Limited is a strong company and we are happy for the opportunity to work with the organization and bring value to all who participated,” said Lamar Harris, Manager Investment Banking & Attorney-at-law.

JamaicanTeasGInger150x150

Image courtesy of Praiseaeng/FreeDigitalPhotos.net

“I am happy that we were successful in raising over $100 Million in our corporate bond offer. This was achieved in an environment of extreme economic uncertainty when most investors tend to prefer investing for the short term. I feel that an important reason for our success was the decision to list the security on the Junior Stock Exchange so the investors had the confidence of being able to trade the securities if they needed to. I congratulate SSL for their hard work in making this a success.” John Mahfood, CEO.

Jamaican Teas Ltd distributes the renowned Tetley black tea as well as a Premium Blend of black tea, together with Earl Grey black tea, Green Tea, and Peppermint and Chamomile herbal teas. They are also proprietors of the Caribbean Dreams line of products which consists of herbal teas sourced by the company from Jamaica and other sources, as well as drinking cocoa, powdered natural coconut milk and a range of spring water.

Related posts | Capital market developments | Exports push Jamaican Teas’ profit

Image courtesy of Praiseaeng/FreeDigitalPhotos.net

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

JSE: Carreras crash party

November 13, 2013 by

Wednesday, 13th November 2013 | Wednesday was another light day on the Jamaica Stock Market as Carreras, suffering ever since the announced ban on cigarettes smoking in public spaces, dropped $4 to a new 52 weeks low of $35. Carreras had a good volume passed through the market amounting to 9,284,752 carrying a value of $325 million.

Caribbean Cement had only 3,400 units trading to close at $2.70 down 8 cents; Gleaner 19,486 units took place at $1.10; Jamaica Broilers had only 3,500 changing hands to close at $4.50 up 20 cents; Jamaica Money Market Brokers had a decent 211,872 units but dipped cents to close at $8.01; Sagicor Life Jamaica had 16,600 as the price closed at $7.60; Scotia Group put in 69,244 units to close at $18.37, down 73.

In the preference sector, Jamaica Money Market Brokers 7.50% exchanged 155,000 firm at $2 while their 8.75% traded 210,664 units at $3.

JSEIndicesNov13Junior Market | The Junior market had only 3 securities trading as Consolidated Bakeries accounted for 239,400 units at a closing price of $1.30 for a gain of 5 cents and Lasco Financial Services had 472,550 units to close at $1.

There were 6 stocks declining as 4 advanced in price as 16 securities traded amounting to 10,689,368 shares valued at $329,979,469. The JSE main index closed at 78,407.85, a decline of 581.24 and the all Jamaica Index slipped 1,022.68 to close at  78,125.43. The Junior market index bucked the trend by gaining 0.38 to close at 728.66.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 7 stocks higher and 5 stocks with offers lower than their last selling price.

Image courtesy of Photokanok/FreeDigitalPhotos.net

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

Lasco Financial profit rise

November 13, 2013 by

Profit at Lasco Financial climbed faster in the September quarter than in the June quarter reaching $50 million, well ahead of the $31 million earned in 2012 by 64 percent and the $39 million earned in the first quarter of this fiscal year. For the year to date, profit is up to $90 million from $57 million in 2012 by 57 percent. The strong improvement in the bottom line flows from revenues that increased by 46 percent to $303 million for the six months to September over 2012, and 43 percent in the September quarter to $159 million.

The company keeps on totting up the quarterly profits as volume of business keeps on growing with some help from the slippage in value of the Jamaican dollar. Robust growth in profit was recorded in the last fiscal year to March of $164 million compared to $102 million, a 60 percent increase. The strong gain in profit achieved in 2012, up by 244 percent, was helped partially by a revaluation surplus on investment property that was booked in 2011.

LascoCambioServices_logo150x150Growth in 2013 is helped by the acquisition of cambio and money transfer business from Supreme Ventures. As the company grows in size, the growth rate has slowed but the results to date indicate are that the level seen last fiscal year should continue for the current fiscal year.

Expenses up | Expenses have grown steeply with selling and marketing ahead of revenues with a 55 percent increase for the quarter and 57 percent for the six months. Administrative costs are up, well below revenue growth with the September quarter up 19 percent and year to date 26 percent.

The company is now in the major period for earnings when remittances rise ahead of the Christmas season, which is expected to push profit well above what has been earned in any of the two quarters so far.

“The increase in income is a result of the growth in the remittance business due to additions of key partners and ongoing promotions,” management stated in their release to shareholders.

IC Insiders forecast is for earnings to be around $250 million or 20 cents per share for the full year.

Marketing | Management indicated when they released the June quarter figures “that Lasco Financial has commenced significant investments in marketing activities, which are expected to capture even more substantial market share for our remittance division; the outcome of which will also yield growth opportunities in the Currency Trading division. This is noticeable in our selling and promotion expenses which saw a 58 percent increase, up from $36.3 Million in the previous period to $57.6M. Administrative and other expenses rose in the quarter to $47.6 million up 33.7 percent over the same period of 2012.”

The company’s subsidiary Lasco Financial Services (Barbados) Limited and its agent Unicomer Barbados Limited (Courts) began trading in May 2013.  Lasco indicates that this business is now at a breakeven level.

Growth | Total assets amounted to just $47 million in 2010 but has enjoyed rapid growth and is at $661 million at the end of September this year, still a small financial company in the local market with room to grow. Loans advanced was nil at the end of 2011 and is now close to $100 million at the end of March this year and is expected to grow at about 30 percent for the year. Loans and receivables rose to $335 million at the end of June up from $237 million at the end of June last year, is down to $261 million at September. Cash also increased and is now at $282 million compared to $136 million at the same period in 2012. Equity stood at $564 million and is expected to increase as profits roll in.

Lasco Financial is an IC Insider Buy Rated stock.

Related posts | LASCO Financial small but tallawah | Buy Rated bargains

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

JSE: Trading picks up

November 12, 2013 by

Tuesday, 12th November 2013 | There was trading in 30 securities on the Jamaica Stock Exchange resulting in 2,829,064 shares trading with a value of $14,337,405 and 9 stocks advanced to 7 declining.

Caribbean Cement 102,500 at $2.78 was down 17 cents; Desnoes & Geddes had 535,437 units and closed firm at $4.80; Gleaner 1,095,213 units unchanged at $1.11; Grace Kennedy 19,742 units to close firm at $58.50; Jamaica Broilers saw trading in 78,891 shares and closed at $4.30 a fall of 20 cents; Jamaica Money Market Brokers had 4,631 shares, closing unchanged at $8.05; Mayberry Investments had 27,575 units to close up a cent at $1.91; National Commercial Bank 58,455 units resulted in a closing price of $18.40 up 90 cents; Proven Investments exchanged 73,389 units as the price at close to 11.95 US cents; Sagicor Investments Jamaica had 28,253 units to close at $15.66, down 34 cents and investors pushed through 51,479 Sagicor Life shares to close at $7.58, down 2 cents.  Scotia Group 251,504 units ended upping the price to $19.10 at the close up 60 cents and Supreme Ventures exchanged 19,294 shares to close unchanged at $2.60.

JSEIndicesNov12Junior market | Access Financial Services 20,760 traded at $8.28; Caribbean Flavours & Fragrances 23,917 $2.60, off 5 cents; Caribbean Producers had 17,239 units to close firm at $1.92; Honey Bun traded 7,233 to close firm at $3.05; Jamaican Teas traded 12,626 to close firm at $3.60; Lasco Distributors 79,847 shares unchanged at $1.45; Lasco Financial Services 20,149 units at $1 down a cent; Lasco Manufacturing traded 117,397 units at $1.40 up 2 cents.

IC bid-offer Indicator | At the end of trading, the bid-offer indicator showed that there were bids for 6 stocks higher and 2 stocks with offers lower than their last selling price.

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

Big profit jump at Purity

November 12, 2013 by

Profit more than tripled before taxes at Consolidated Bakeries (Purity) and was up more than 400 percent after factoring taxation in the 2012 period to September, as profit after tax rose to $30.4 million up from $5.7 million, a 429 percent increase. For the September quarter, profit rose to $6 million compared to the 2012 quarter when the company reported a loss of $2.8 million.

The improved numbers did not show up in the quarter over quarter results as profit was lower than the $10 million earned in the June quarter. Some of the improvement is a recovery from a bad period in 2012. The second half of 2012, the year Consolidated went public, was not a good one as the company recorded a loss in the period compared to a profit in the 2011 period.

Consolidated_Purity150x150Revenue for the nine month period increased by 37.6 percent to reach $500 million compared to revenue of $363 million for the same period in 2012.  For the quarter, revenue is up by 53.2 percent over the same period in 2012 to reach $172 million up from $112 million. “These increases represent growth in both unit sales and average sales per customer. During the quarter under review, input cost increased due to exchange rate movements and other factors,” management stated in their report to shareholders. Gross profit margin came in at 49 percent for the quarter down from 53 percent in 2012 and is 54 percent year to date, an improvement over the 52 percent enjoyed in 2012.

It looks as if the company will enjoy profits in the order of $35-40 million for the year or earnings per share around 20 cents. The company is focusing on improved efficiency, increased sales from existing products and new ones for both the local and export markets.

Cash funds and investments are up to $99 million from $24 million last year September and $98 million at the end of December. Current assets are up to $205 million from $184 million at the end of 2012 helped by increased receivables and inventories which grew $40 million year over year. At the same time, current liabilities are down as a result of the clearing of overdraft balance of $13 million and taxation of $9 million leaving $61 million as owing to third parties. Borrowing is up from $19 million to $49 million at the end of September this year versus last year September.

Related posts | Consolidated Bakeries hiked profit | Consolidated Bakeries’ Q1 Profits Up

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

Buy Rated bargains

November 11, 2013 by

Monday, 11th November 2013 | The stock market in Trinidad continues to maintain most of the gains registered for our Buy Rated selection with only 3 negative movements so far and 8 registering some gains ranging from 3 percent to 120 percent with one that has not mowed.

Our Jamaica Stock Market selections have not fared as well with most registering declines to date but they still remain attractive buys. In fact, a number have become even better buys now than when we selected them. Remember that the greater the fall in price, the better the chance of success if investors buy in at the low prices.

Related posts | Carib Cement & AMP now Buy Rated

BuyRatedPerformanceThe IC Insider’s Buy Rated seal of approval is given to a stock that we believe is a compelling buy with earnings that are strong relative to the price and strong prospects of generating high price gains within the next twelve months.

Our research is backed by published reports of the company’s performance and insights of future earnings that can be found at ICInsider.com. The final decision to buy, or not, is your personal choice.

To find published reports for a Buy Rated stock on IC Insider, please choose the category ‘Buy Rated’ under Company News or enter the company name, in full or part at ‘Search IC Insider’.

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