Some big Buy Rated gains more ahead
Blue Power is now removed based on flat sales for the year to April and no immediate signs of a pickup. Dolphin Cove that was added in May last year and gained 48 percent is being moved to hold as revenues in the other half of the year to December is unlikely to grow to justify market out performance. The company had only a 6 percent increase in first quarter revenues down from 13 percent in 2014 and profit fell 10 percent to $133 million. Hardware and Lumber with buy out talks to acquire majority ownership with a maximum price of $18.50 and Scotia Investments are shifted to hold while JMM Group is moved from Buy Rated to Watch or accumulate based on the current price of $7.50.
As much as stocks with high gains may be view as already providing rich returns, there are much more gains left to be made. Carib Cement should report earnings in the $1 region this year with reduced cost, increased sales and the future should be even brighter as the local economy moves slowly into growth and lower interest rates will help boost building construction. Caribbean Cream has more than doubled this year in price but with lower input cost and increased sales should earn around 60 cents per share this year, at the present price of $1.60, there is room for growth. Jamaica Stock Exchange has had a phenomenal run this year with increased revenues and profit. Profit this year could reach $1.20 which should lift the stock some more and 2016 could be an even bigger year for it. Paramount Trading at $6 is still about 50 percent undervalued based on 2015 earnings and even more based on 2016 projected earnings. Lasco Manufacturing is yet to deliver in price movement but the 78 percent jump in the March quarter profits is a development that investors should be paying attention to.
Over in Trinidad, investors keep on ignoring Trinidad Cement but they should not, even with the 190 percent gain in the stock price. IC Insider sees higher profits flowing from increased sales, cost reduction including interest cost on loans. National Flour which we added in May is now up 21 percent still has more room to grow. The Trinidad market is likely to experience slow growth this year as such, many of the listings may not deliver much in the short term but investors should keep their eyes on Scotiabank that produced a nice lift in second quarter profits.
Technical issues hit JSE on Tuesday
The JSE Market Index declined 159.12 points to 97,271.15 the JSE All Jamaican Composite index fell 177.86 points to close at 107,661.94 but the JSE combined index fell just 13.51 points to end at 99,998.57 thanks to gains in the junior market offsetting declines in the main market.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator was showing a poor reading of 10 stocks with bids higher than their last selling prices and 6 with offers that were lower, an improvement over the ratio on Monday of 5 to 5. In trading, Cable & Wireless had 200,000 units changing hands to close at 45 cents but looking better than for weeks with bid at 46 cents to buy 201,436 while the offers at 50 cents declined leaving only 315,000 units at the price. With the company reporting profits from operations of $186 million in the March quarter from revenues of $6 billion, the highest in a March quarter since 2007, investors may be quietly going after the stock. The company confirmed that the quarter had some business to business sales in the revenue figure which helped to push improvement up by 29 percent. Caribbean Cement had 131,225 units trading at $6 after adding 50 cents, Carreras gained 70 cents in trading just 2,382 shares to close at $49. Desnoes and Geddes traded at $7.55 with 54,724 shares, Gleaner ended with 65,885 shares changing hands to gain 11 cents, for a 52 weeks’ high of $1.40. Jamaica Broilers fell 59 cents in trading 7,410 units to end at $5.41, National Commercial Bank in trading 20,960 shares, to close at $29.04, Pan Jamaican Investment had 18,780 shares changing hands 50 cents higher at $61.50. Radio Jamaica ended with 124,000 shares trading at $3.50, Proven Investments ended with 51,900 ordinary share trading at 21 US cents, Sagicor Group gained 45 cents with 22,385 units trading, to end at $13, but had 1 million units on sale at $13 at the close and Proven 8% preference share traded 155,695 units at $5.
JSE inches up on Monday
TheJSE Market Index gained 71.71 points to 96,599.90, the JSE All Jamaican Composite index rose 80.16 points to close at 106,911.66 and the JSE combined index gained 34.45 points to end at 99,265.14.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 15 stocks with bids higher than their last selling prices and 7 with offers that were lower.
Stocks trading include, Cable & Wireless traded 830,959 units at 44 cents, Caribbean Cement ended with 42,304 shares changing hands at $4.99 after gaining 14 cents. Carreras closed with 47,127 stocks units trading and lost 93 cents at $48.07, Desnoes & Geddes gained 45 cents with just 1,404 units trading, to end at $8, Grace Kennedy had 3,560 shares changing hands after losing 5 cents to end at $63.90. Hardware & Lumber traded 20,000 stocks units with a loss of $1 to close at $18. Jamaica Broilers traded 250,000 shares at $5.50 after shedding 25 cents, Jamaica Stock Exchange traded 9,331 shares to close unchanged at $6.35, JMMB Group closed with 23,587 shares changing hands at $7.45 for a 15 rise, Mayberry Investments had 11,195 units changing hands at $2.88, National Commercial Bank traded 48,527 units to close at $30, after gaining 50 cents. Pulse Investments had 306,000 shares trading at a 52 weeks’ high of 55 cents, to record a gain of 10 cents. Radio Jamaica traded 25,185 stocks units with a loss of 1 cent, to close at $3, Sagicor Group traded 776,521 shares to close at a 52 weeks’ high of $12.60, after putting on 54 cents, Scotia Group ended with 14,717 shares trading unchanged at $23.10. Seprod ended with 19,041 shares changing hands at $15.45 for a gain of 7 cents, Jamaica Money Market Brokers 7.50% preference share traded 435,206 units at $2 and Jamaica Money Market Brokers 8.75% preference share traded 324,497 units at $3.
7 stocks up 5 down
With 75 minutes of trading the main market indices rose moderately but the junior market index climbed 3.44 to a new high of 938.13 points.
Trading has been moderate with just 17 securities being active and accounting for 834,000 units, there are three new highs and one low so far.
The Jamaica Stock Exchange stock traded at a new all-time high of $6.50 and now has a bid at $6.55, Caribbean Cream traded at a new all-time high of $1.75 and Sagicor Group traded at $12.35 for a new 52 weeks’ high and KLE Group traded at 70 cents for a new low.
Four new highs for JSE
The Jamaica Stock Exchange is enjoying moderate gains in the indices helped by 4 stocks reaching new highs in both the main and junior markets after 45 minutes of trading.
The Jamaica Stock Exchange share reached a new high of $6.10 but drifted down to $6, twenty five cents above Tuesday’s close with demand still in for the stock with a bid of $6, Lasco Financial hit $2 for the first time, but with a small volume. Caribbean Cream traded at a new high of $1.65 with 10,000 units changing hands and Honey Bun is trading at a new 52 weeks’ high of $2.96. The largest trade has been Jamaica Money Market Brokers 7.50% preference share with 1,000,000 units at $2.04.
Big pay day for JSE shareholders
The Jamaica Stock Exchange (JSE) will pay out $74.33 million in the form of a dividend in July. The company listed 140.250 million ordinary shares on the exchange in 2013 is making its first dividend payment since listing.
JSE board of directors met on Monday and declared the payment of a dividend of fifty-three cents (53 cents) per share unit, payable on July 10 to shareholders on record as at June 26, 2015. The stock will trade ex dividend on June 24, 2015.
The share closed 2014 at $1.57 and gained 237.58 since the start of 2015, helped considerably by a jump in profit in the first quarter from a loss of $2 million to $87 million. A pick up in stock market activities also helped in driving demand for the stock as investors saw higher income and profit flowing in future quarters. The JSE reported a very small profit of $3 million for the year ended December last year. The dividend enjoys a yield of 33.75 percent based on the price at the end of last year and 10.5 percent based on the price last Friday and 9.2 percent based on Tuesday’s closing price of $5.75.