Carreras price hit by cigarette tax

Peter Phillips raised SCT  on cigarette by 11.4% to rake in $500m. Carreras announced a 15-20% price increase.

Peter Phillips raised SCT on cigarette by 11.4% to rake in $500m. Carreras announced a 15-20% price increase.

New tax measures announced on Thursday, hit the stock market on Friday, particularly, Carreras that had direct hit, with increased taxes on cigarettes. The company’s stock lost 7 percent at the end of trading and should set up a good buying opportunity for investors.
The day’s activity on the Jamaica Stock Exchange, resulted in the prices of 9 stocks rising, 11 declining as 27 securities changed hands, ending in 4,388,191 units trading, valued at $41,075,686, in all market segments.
Main Market| The JSE Market Index lost 637.18 points to 81,881.33, the JSE All Jamaican Composite index fell 712.40 points to 90,265.43 and the JSE combined index dropped 558.65 points to close at 83,731.11.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 7 stocks with bids higher than their last selling prices and 5 stocks with offers that were lower, an indication of fluidity in price movements for a while.
Gains| Stocks gaining at the last traded prices in the main market are, Grace Kennedy closing with 5,694 shares rising 20 cents to $61, Jamaica Broilers finishing trading with 38,636 shares, while gaining 2 cents to $4.02. Mayberry Investments in trading 85,000 shares, closed with a gain of 1 cent at $2.37, Sagicor Group had dealing in 2,062,222 shares and rose 8 cents to $10.50 and Scotia Group contributed 271,347 shares while gaining 2 cents to $20.82.
Firm| The stocks in the main market to close without a change in the last traded prices are, Desnoes & Geddes contributing 2,500 shares to trading to close at $5.50. Jamaica Money Market Brokers closed with 2,597 ordinary shares changing hands, at $7.10, Kingston Wharves saw trading in 8,301 shares, to close at $6.40 and Supreme Ventures closed with 1,550 shares at $2.30.
JSE sum 13-3-15 Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Barita Investments finishing with 1,500 units, closed lower by 5 cents at $2.20. Cable & Wireless closing with 25,000 units as the price slipped 2 cents to 51 cents, Caribbean Cement finishing trading with 19,723 units, closing lower by 5 cents to $2.25. Carreras stock price was hit by the added tax announced by the government of Jamaica and in trading with 207,543 units slipped $3 to $40, but it traded as low as $38.01 before the close. Gleaner in trading 10,000 shares ended lower by 20 cents to 90 cents, Hardware & Lumber finishing trading in 900 shares, closed 35 cents lower to $7.05. Jamaica Producers had dealing in 1,381 units with a decline of 5 cents to $16.95, National Commercial Bank while exchanging 8,674 share, traded 50 cents down to $23.50 and Scotia Investments dealt in 10,000 shares with at $2 fall to $22.
Preference| Jamaica Money Market Brokers 7.50% preference share, traded 250,000 units at $2 and Proven Investments 8% preference had 274,200 shares changing hands at 5 cents to 5.05.

Winners hard to find on TTSE

NCB closed at a new 52 weeks' high on the TTSE on Friday

NCB closed at a new 52 weeks’ high on the TTSE on Friday

With interest rates on the rise and profits under pressure in the twin island state of Trinidad and Tobago, is proving difficult to find winners these days on the Trinidad Stock Exchange. In trading on Friday the market closed with 11 securities changing hands of which 1 advanced, 2 declined and 8 traded firm with a total of 537,112 units, valued at $7,799,050.
At the close of the market, the Composite Index rose 3.05 points to close at 1,149.41, the All T&T Index fell by 0.12 points to close at 1,974.63 and the Cross Listed Index increased by 0.83 points to end at 42.47.
Gains| Stocks increasing in price at the close are, National Commercial Bank increased 12 cents to end at a 52 weeks’ high of $1.35 the equivalent of J$24.37 while it closed at $23.50 on the Jamaica Stock Exchange. The stock closed with a bid of $1.35 to buy 171,500 shares with no stock on offer. In Jamaica there are only 4 offers totalling 109,000 units between $25.50 and $33.
Declines| The stocks declining at the end of trading are, Clico Investment Fund traded with 28,280 shares valued at $636,542 and declined by 4 cents to end at $22.50 and First Citizens Bank contributed 40,141 shares with a value of $1,423,400, and closed 3 cents down at $35.46.
TTSE 6-3-15
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Grace Kennedy traded 28,548 shares to close at $3.60, Jamaica Money Market Brokers with a volume of 82,734 shares at 43 cents, National Enterprises 173 shares to close at $17.40, National Flour Mills 1,500 shares traded at $1.55. One Caribbean Media had 12,224 shares changing hands at $23.95, Point Lisas Industrial Port Development traded 4,557 shares to close at $3.50, Republic Bank added 32,120 shares valued at $3,796,795 to close at $118.21, Sagicor Financial Corporation with 286,835 shares changing hands for a value of $1,462,909 at $5.10.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than their last selling prices and 3 stocks with offers that were lower.

JSE closes down

JSE mn mkt close 2-3-15The Jamaica Stock Exchange main market closed with trading in 2,979,208 shares with Grace Kennedy dominating with more than 2 million units. the all Jamaica Composite index fell nearly 336 points and the JSE market index dropped just above 300 points.
The closing trading data shows the volumes for the highest bids and lowest offers for each stock that investors can use as guides as to where demand and supply may be like. Other than the shares traded in Grace volumes were moderate and only 12 securities were active.

JSE could gain 40% for 2015

Add your HTML code here...

JSE 2 mth gwt 27-2-15The all Jamaica Composite index is up 6.3 percent for the first two months of 2015 and the JSE index is up 6.2 percent and could be up nearly 40 percent for 2015 if the trend continues. The 2015 increase is the highest since the all Jamaica composite gained 9.4 percent in the first two months.
The JSE select index gain 9.2 percent over the same period. The movements to date translate to close to a 40 percent rise in the market for the year. If the movement was to continue at the same pace for the rest of the year it would take the all Jamaica index to 118,000 points by year-end and the JSE Index to 107,000.
The Jamaica Stock Exchange’s all Jamaica Composite index closed above 89,000 for the first time on Thursday, February 26, since mid-July 2103, and is a little more than 2,300 points from potential resistance at 91,720, the January, 2013 high. The market as measured by the index, has broken out of a channel going back to late last year, see green lines.
The junior market in contrast to the gains in the main market, is up only 1.7 percent.

Insider sold 2.77m Student Living shares

138 photo 11-14Newly listed 138 Student Living advises that a related party sold 2,775,000 of the company’s shares on January 30, 2015. T
he shares traded at $4.40 and realised $12,210,000. When the company went public in December last year, some of the initial investors offered shares they owned to the public which was packaged with the public offer. Shares offered by the company were taken up in full, but those by shareholders were only partially bought by the public.
A related party to a directors sold 250,000 Jamaica Broilers Group’s shares on February 2, 2015, the Company advised the Jamaica Stock Exchange.

Lasco Financial profit up 50%

Lasco cambioProfit at Lasco Financial jumped a noticeable 50 percent, in the December 2014 quarter, on rising revenues of 11 percent. The company recorded profit of $68 million in the quarter versus $46 million in 2013 and recorded a 33 percent rise in its nine profit to $181 million from $136 million.
Lasco reported improvement in gross profit margin of 152 percent, in the December quarter, from 108 percent in the same period in 2013, the margin, year to December, is 155 percent from 137 percent in the nine months of 2013. Administrative expense rose by 8 percent for the quarter and 13 percent year to December while marketing expenses fell 8 percent in the quarter but was up 9 percent year to date, compared with the prior year, but still below the rise in revenues.
LasFn -12-14Earnings per share for the quarter amounted to 6 cents and for the nine months 15 cents. Earnings for the full year to March should end up around 20 cents per share. The stock now priced at $1, remains a buy, with prospects for increased profits for 2015/16.
The company is listed on the Jamaica Stock Exchange junior market and is primarily involved in cambio and money transfer and has with equity of $795 million no debt, and cash funds of $502 million.

10 JSE stocks rose 6 declined Monday

NCB Nkgn -2014 National Commercial Bank stock price hit a new 52 weeks high of $20 in trading on the Jamaica Stock Exchange on Monday with 1,066,318 shares changing hands. One million units of the stock was bought and sold by Stockbroker, Sagicor Investments at $20 each.
After three consecutive days of declining stocks beating out advancing ones last week, breaking the trend that was in place since the start of the year, with no trading day closing with number of declining stocks being more than advancing ones, activity on the exchange returned to the trend prior to the days of decline on Monday. At the close on Monday, the prices of 10 stocks gained, 6 declined as 23 securities changed hands, ending in 4,912,390 units trading, valued at $30,624,883 in all market segments. The positive advance, decline ratio did not prevent large declines in the main market indices as Carreras gave back most of the gain it enjoyed on Friday.
Main Market| The JSE Market Index lost 765.65 points to 77,062.39 , the JSE All Jamaican Composite index declined 856.03 points to close at 84,877.64 and the JSE combined index declined by 716.44 points to close at 78,938.30.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows stocks with bids higher than their last selling prices and stocks with offers that were lower.
Gains| Stocks gaining with last traded prices at the end of trading in the main market are, Cable & Wireless closing with 715,292 units changing hands, with a gain of 1 cent at 51 cents. Gleaner had 3,000 shares changing hands to close 2 cents up, at 82 cents, Grace Kennedy closed with 17,480 shares trading with a gain of 5 cents at $63, Jamaica Broilers ending with 2,000 units changing hands to close with 1 cents gain at $4.01. Jamaica Money Market Brokers finished with 4,000 ordinary shares with the price gaining 3 cents to $6.60, Jamaica Stock Exchange with 48,688 units changing hands to close with a gain of 10 cents at $2.10, National Commercial Bank closed at a new 52 weeks high with 1,066,318 shares changing hands and gained of 69 cents at $20. Proven Investments ended with 35,970 units changing hands to close 0.02 cent higher at 21.02 US cents, new all-time high and Sagicor Group closed with 20,820 shares trading with a gain of 5 cents at $10.20.
JSE sum 26-1-15 Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints closed with 1,439 units trading at $1.55, Desnoes & Geddes concluding trading with 1,100 shares changing hands at $4.80, Mayberry Investments ended with 1,381,873 units trading to end at $2 and Scotia Group in trading 30,195 units at $20.50.
Declines| The last traded prices of stocks with losses at the end of trading in the main market are, the price of Carreras slipped $1.88 to closed with 1,650 units trading as at $37.62 and Radio Jamaica ended with 1,986 shares trading lower by 20 cent to $1.10.
Preference| Jamaica Money Market Brokers 7.25% preference share closed with 200 units being active, with the price rising 1 cents to $2.50, Jamaica Money Market Brokers 7.50% finished with 1,502,471 units trading at $2 and Proven Investments 8% preference share traded 1,555 units traded at $5.

Sagicor Expensive Real Estate Fund

Sagicor Real Estate X Fund has been selling significantly above its IPO price of $5 and has since risen by 40 percent to $7, making it one of the better performing stocks on the local stock market since listing.

One of the properties in the fund

One of the properties in the fund

That is great for those who invested at the time of the IPO. Do the fundamentals justify the price? The fund reported earnings or better yet capital appreciation of $271 million or 18 cents per share in the September quarter and $681 million or 46 cents for the nine months to September, representing a 10.7 percent rate of return for the year. This is a very high return for a real estate investment, suggesting that a large portion is capital appreciation and not regular income.
Of import is the seasonality of the hotel operations—high income and profits in the period between December and April, July and August, and lousy in the other months, which are usually loss making months. Sagicor Real Estate X Fund had assets of $9 billion at the end of September and net book value of $6.09. The stock price is $7, for a near 20 percent premium, which is well over the market.
The fund with 1,495,336,750 shares issued, boasts a very high PE ratio of 12, which is far greater than the other stocks in the market, and without the growth prospects of the vast majority of them. In a market that values stocks based on earnings generating cash flow, the valuation placed on the fund is even higher than the PE suggests and may be as high as a PE of 30. But that is the value that would be placed on a company
growing profits at 30 percent per annum. Earnings growth will not be there to drive the stock price compared to many of the quality listed stocks. The stock is now being valued on hype not reality.
The Sagicor Real Estate X Fund has a number of hotels, but many hotels have been notorious for not being highly profitable. There is also a great level of seasonality in performance in the sector. Income from other local properties will be steady as
most are rented on a long term basis.
The company has strategically invested in the Sigma Real Estate Portfolio, which holds a mix of hotels, commercial, industrial and warehousing properties. At this time, the only investment for the Fund is the units in the Sigma Real Estate Portfolio.
The Fund is 67.7 percent owned by the Sagicor Pooled Pension Investment Funds, which are administered by Sagicor Life Jamaica and is listed on the Jamaica Stock Exchange.

Carreras climbs $2.29 pushes JSE

Carreras 4 Carreras closed trading at $39.50 to end the day at a new 52 weeks’ high and Scotia Group after hitting $21.99 with 739,792 shares by mid-day, closed at $20.50 and were the main contributors to a strong increase in the main market indices on Friday. The gains were not adequate to stop the overall market from registering the third consecutive day of declining stocks out numbering advancing ones.
Activity on the overall Jamaican stock market, resulted in the prices of 6 stocks rising and 9 declining as 29 securities changed hands, ending in 5,019,576 units trading, valued at $36,430,375, in all market segments.
Main Market| The JSE Market Index gained 1,175.44 points to 77,828.04, the JSE All Jamaican Composite index rose 1,314.20 points to close at 85,733.67 and the JSE combined index gained 1,070.76 points to close at 79,654.74.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 10 stocks with bids higher than their last selling prices and 3 with offers that were lower.

Scotiabank shares helped to push the index in Fridays trading.

Scotiabank shares helped to push the index in Fridays trading.

Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Caribbean Cement ending with 12,825 units changing hands, to close with a gain of 5 cents at $2.35. Carreras swapped 124,240 shares to close with a gain of $2.29 at $39.50, the highest price it closed at since, November 6, 2013 when it then closed at $40. Jamaica Money Market Brokers closed with 93,329 ordinary shares trading, with a gain of 2 cents to $6.57, Scotia Investments contributed 5,000 units in trading to close 4 cents higher at $22.55 and Supreme Ventures had 10,600 shares changing hands, the price gained 15 cents to $2.15.
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints in trading 1,569 units ended at $1.55, Cable & Wireless closed with 31,881 shares changing hands at 50 cents. Ciboney ended with 10,000 shares trading at 7 cents, Desnoes & Geddes closed with 909,979 units trading to end at $4.80, Jamaica Broilers closed with 89,998 units traded at $4, Jamaica Stock Exchange finished with 10,000 units changing hands at $2. Kingston Wharves exchanged only 827 units at $5.60, Mayberry Investments traded at $2, in swapping ownership of 200,406 shares, Proven Investments traded 17,000 shares at 21 US cents, Radio Jamaica closed with 800 shares changing hands at $1.30 and Scotia Group ended up with 750,762 shares changing hands at $20.50.
jse sum 23-1-15 Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Gleaner closing with 64,463 units trading as the price slipped 5 cents to 80 cents, for a new 52 weeks low, Grace Kennedy finished with 23,770 shares trading lower by 50 cents to $62.50, Kingston Properties closed with 29,925 shares changing hands to close lower by 50 cents at $7, National Commercial Bank closed with 50,453 units as the price slipped 19 cents to $19.31, Pan Jamaican Investment finished with 26,363 units trading, the price eased by 10 cents to $52, Radio Jamaica ended with 560 shares trading lower by 15 cents to $10.05 and Sagicor Group closed trading with 10,947 units as the price slipped 30 cents to $6.65.
Preference| Eppley 10% preference share traded 34,500 units at $6 and Jamaica Money Market Brokers 7.50% preference share ended with 1,773,100 units trading at $2.

AMG flat sales push profit down 15%

amg-packaging280x150Revenues rose a strong 36.56 percent for the year to August 2014 for junior market listed, AMG Packaging, hitting $607 million but it increased by a much slower pace of 28 percent in the final quarter of the financial year, to $165 million.
Those strong gains may have cannibalized sales in the November quarter with flat sales compared with 2013 quarter, with revenues of $151 million. But the performance comes against the back ground of volumes sold, climbing a very strong 19 percent for the year. The fall in volume started from the August quarter as units sold increased by 23.4 percent, management stated in a release accompanying the May results.
While sales increased impressively in 2014 fiscal year margins came under pressure with only 23.7 percent for the year to August down from 33 percent in 2013. For the latest quarter gross profit margin comes out at 25.9 percent but could end up at 31.5 percent for the current year if sales volumes increase by 10 percent for the rest of the fiscal year. Gross profit for the quarter amounted to $34.4 million up from $33.3 million in 2013 but increase mainly administrative cost that rose 28.4 percent eroded profit slightly by 15 percent to $15.4 million from $18 million in 2013. The company got a double whammy, with the Jamaican dollar losing value, resulting in a 28 percent more Jamaican dollars having to be found to purchase a US dollar since September 2012, and the price of paper on the world market moving 22 percent from US$720 per tonnes at September 2012 to US$830 in August 2013 and now US$875, which it has been since June last year.
Receivables are down by $12.7 million from the amount at the end of August last year and so too is amounts in payables by $26 million. Cash funds grew to $33 million from $22 million while inventories is down from to $118 million at August to $113 million, which is nearly 4 months supplies based on sales in the quarter and is up from just two and a half months back in 2013 and seems to be a hedge against devaluation of the Jamaican dollar. But that is only a part of the story. A check on world prices for pulp shows a pretty sharp increase since 2012.
AMG has to continue to grow its business by continued strong volume growth to become a more cost competitive producer with lower unit cost. The company needs to put strategies in place to return volume sales to growth and needs to continue cost containment measures to ensure profit improvement going forward. With increase through put, unit cost of production will fall allowing more growth in gross to flow into overall profits. A bright spot for the company is the fall in the cost of fuel and electricity will help in keeping cost down for the rest of the fiscal year.
IC Insider’s forecast for 2015 is 90 cents per share and $1.50 for 2016 on the assumption that volume sales return reasonable growth.