Trading on the main market stocks of the Jamaica Stock Exchange picked up over Thursday’s levels but declining stocks numbered more than advancing ones leading to declines in the market indices by more than 1,300 points.
At the close of trading, 26 securities changed hands in the main market with 2 trading in the US dollar market, leading to 10 stocks advancing and 12 declining. The main market ended with 4,292,363 units valued at $81,728,669 changing hands compared to 1,294,238 units valued at $29,684,333 at the close on Thursday. Trading in the US dollar market accounted for 136,527 units valued at US$46,401, bringing the total of all trades to J$87,681,879.
At the end of trading, the All Jamaica Composite Index declined 1,429.83 points to close at 256,396.89, the JSE Market Index lost 1,302.74 points to 233,606.61. The JSE US dollar market index gained 0.45 to close at 173.07.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 6 stocks with bids higher than their last selling prices and 1 with a lower offer.
The main market ended trading with an average of 165,091 units valued at $3,143,410 for each security traded compared to an average of 56,271 units valued at $1,290,623. The average volume and value for the month to date ended at 129,324 units with an average value of $2,758,273 compared with an average of 125,350 units with an average value of $2,715,480 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
The main market ended trading with an average of 56,271 units, valued at $1,290,623 for each security traded compared to an average of 115,397 units valued at $2,813,635. The average volume and value for the month to date ended at 125,350 units, with an average value of $2,715,480 compared with an average of 133,908 units with an average value of $2,893,588 on the previous trading day. June ended with an average volume of 218,951 units with an average of $3,871,959.
In market activity, Berger Paints exchanged 6,553 shares at $13.30, Cable and Wireless closed at 80 cents, losing 25 cents with 338,942 stock units switching owners, Caribbean Cement lost 90 cents to close at $24.60 trading 4,476 shares, Carreras lost 5 cents to close at $89.95, with 2,748 shares changing hands, Grace Kennedy was down 35 cents to $41.05, with trades of 6,209 shares
Broilers traded 70 cents higher, closing at $18.20, with an exchange of 2,080,661 shares, Jamaica Producers gained 75 cents to close at $14.75 with 10,986 shares changing hands. Jamaica Stock Exchange closed at $6.50, with a loss of 30 cents, trading 920 shares, JMMB Group lost 21 cents to close at $19.31 exchanging 6,645 units, Kingston Properties traded 400 units, losing 5 cents, to close at $8.80, Kingston Wharves closed at $30.40, with an exchange of 13,470 shares. NCB Financial Group dropped 50 cents to close at $71.50, after exchanging 40,147 shares, 1834 Investments traded 219,700 shares, gaining 1 cent to close at $1.37, PanJam Investment plunged $4.25 in closing at $30 while exchanging 201,188 shares, Portland JSX closed at $10.50 with 9,293 shares changing hands, Proven Investments advanced 38 cents to close at $25.01 with 115,000 shares exchanged, Pulse Investments traded 1,669 shares at $2.49, Radio Jamaica gained 5 cents to close at $1.43, with 83,042 shares switching owners. Sagicor Group added $1, closing at $32 with an exchange of 31,500 shares, Sagicor Real Estate Fund closed at $13.40, with gains of $1, trading 6,961 units. Scotia Group declined 31 cents to close at $42.09, with an exchange of 49,507 shares, Scotia Investments lost 1 cent to close at $36 trading 1,500 units, Seprod gained $1 and closed at $30 with 982,293 shares changing hands while Supreme Ventures closed at $7.95, after rising 60 cents and exchanging 75,600 shares. Proven Investments US ordinary shares closed at 22 US cents trading 118,527 units, JMMB Group US 6% preference share exchanged 18,000 units at US$1.12 and JMMB Group7.5% preference share gained 1 cent to close at $1.11, with trades of 953 units.
Big bounce for JSE majors – Wednesday
Proven Investment ended at a new closing high of $24.61 on the JSE main market.
The main market of the Jamaica Stock Exchange climbed sharply at the close on Wednesday as more stocks rose than fall, helping to drive the indices up by more than 2,300 points.
At the close, the All Jamaica Composite Index jumped 2,558.93 points to 258,475.28, just 1,000 points lower than the close on Thursday last week, before it dropped on Friday by 5,207.13 points.
At the end of trading, the JSE Market Index surged 2,331.48 points to 235,500.26 and the JSE US dollar market index closed unchanged at 172.17. Twenty five (25) securities changed hands in the main market, with 2 trading in the US dollar market, leading to 11 stocks advancing and 6 declining. The main market ended with 2,769,523 units valued at $67,527,250 changing hands compared to 4,342,047 units valued at $87,253,212 at the close on Tuesday. Trading in the US dollar market accounted for 219,087 units valued at US$86,787 and brought the total trading to $78,662,040.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 3 stocks with bids higher than their last selling prices and 1 with a lower offer.
The main market ended trading with an average of 115,397 units valued at $2,813,635 for each security traded compared to an average of 197,366 units valued at $3,966,055. The average volume and value for the month to date ended at 133,408 units with an average value of $2,893,588, compared with an average of 136,641 units with an average value of $2,905,009 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Cable and Wireless closed at $1, with 103,500 stock units trading, Caribbean Cement gained 50 cents, closing at $24.50 and exchanging 6,385 shares, Carreras closed at $90.05, while gaining 5 cents with2,300 shares changing hands, Grace Kennedy traded 20,094 shares at $41.40. Jamaica Broilers closed at $18.01 exchanging 4,830 shares, Jamaica Producers lost 10 cents, in closing at $14.90 with of 261 shares trading. Jamaica Stock Exchange closed at $6.60 trading 1,100 shares, 
JMMB Group lost 42 cents to close at $19.58 with 57,560 units changing owners, Kingston Properties traded 85 cents higher, closing at $8.85 with an exchange of 2,500 shares, Kingston Wharves closed at $30, gaining 90 cents with 3,450 shares changing hands, Mayberry Investments gained 10 cents to close at $4.70 with 283,184 shares traded. NCB Financial Group closed at $71, with a loss of 40 cents after exchanging 16,458 shares, 138 Student Living traded 1,532 shares at $1.55, PanJam Investment exchanged 6,600 units at $34.50, Portland JSX traded $1 higher, closing at $11 with 94,343 shares changing hands, Proven Investments gained 10 cents to end at a 52 weeks’ closing high of $24.61 with 158,000 shares being exchanged, Radio Jamaica closed at $1.25, with gains of 5 cents and 4,880 shares switching owners. Sagicor Group traded $1 higher to close at $34, with trades of 1,128,016 units, Sagicor Real Estate fund closed at $12.40, after losing $1.40 with an exchange of 4,000 units, Scotia Group lost 10 cents to close at $43.90, with trades of 111,876 shares, Seprod was down $1,to close at $29, trading 428,110 shares while Supreme Ventures added 70 cents to close at $8, with an exchange of 268,867 shares. Proven Investments US ordinary shares closed at 22 US cents trading 175,987 units, JMMB Group US 6% preference share traded 43,100 units at US$1.12, JMMB 7.5% preference share closed at $2 exchanging 56,700 units and JMMB Group7.5% preference share gained 3 cents to close at $1.13 and 4,977 units changed hands.
PBS & Express Catering over the top
NCB Capital Markets, brokers to the initial public offer of ordinary and preference shares for Productive Business Solutions which opened July 5, 2017 closed on Tuesday, July 11 for the Ordinary Shares at the price of US$0.55 per share.
The brokerage house, stated that the basis of allocation to be communicated later. The Invitation for subscription by the Company in respect of at a price of J$100 per share remains open and the public will be duly advised when same is closed. The original date for closure of both issues was set for July 26.
PBS issue was seeking to raise US$41.5 million by ordinary shares, with US$8.7 million of it to be used to International Finance Corporation. The IPO also includes 25,800,000 9.75% Redeemable Cumulative Preference Shares denominated in Jamaican dollars. The issue allocated 27,272,727 of the ordinary shares for Portland JSX, 7,272,727 units for staff with 4,545,455 shares for the General Public.
Part of the proceeds will be used to paid debt of US$17.45 million and working capital of US$13.85 million.
Ian Dear, Managing Director of Express Catering
For the year to December 2016, a loss of US$3.3 million was incurred down from a profit of $1.2 million in 2015. Revenues fell in both years to $171 million in 2016 from $194 million in 2015 and $202 million in 2014 when a small loss was incurred. Finance cost in 2016 increased by $2.6 million. The increase is attributed primarily to interest associated with the increase in debt of $998,000, FX loss of $920,000, and amortization of deferred expenses associated with the bond of $724,000. In the March 2017 quarter revenues rose to US$42.45 million from US$39.32 million with profit rising to US$838,000 before taxation of US$389,000 from a loss the year before.
PBS has borrowings of US$66 million with US$10 million due to related parties as at December 2016. The prospectus indicates that the shares are to be listed on the main market of the Jamaica Stock Exchange and on Barbados Stock Exchange’s International Securities Market, subsequent to listing in Jamaica.
Reports reaching IC Insider.com is that Express Catering was oversubscribed with the issue closing this morning as more than 1,000 applications were received by the broker for the issue, Mayberry Investments. The 100 percent Shareholder of Express Catering, Margaritaville St Lucia, offered 327,500,000 of existing shares for sale at $1.50 each, to raise approximately $490 million. Only 32.6 million shares were made available to the general public. The Stock is slated for listing on the Junior Market.
15 stocks gained – Tuesday
Sagicor Real Estate Fund traded at an all-time high on Tuesday.
Gains in the prices of 15 stocks on the main market stocks of the Jamaica Stock Exchange drove the indices up at the close on Tuesday, adding to the big gains on Monday, but the gains over the past two years are not enough to wipe the 5,207 points drop on Friday last, that left the All Jamaica Index at 254,236.40 on Friday. Down from 259,443.53 on the previous day.
The All Jamaica Composite Index advanced 1,268.06 points to close at 255,916.35, the JSE Market Index gained 1,155.35 points to 233,168.78 and the JSE US dollar market index lost 0.06 points to close at 172.17.
At the close of trading, 22 securities changed hands in the main market with 1 trading in the US dollar market, and one in the bond market leading to 15 stocks advancing and 3 declining. The main market ended with 4,342,047 units valued at $87,253,212 changing hands compared to 1,989,011 units valued at $20,502,913 at the close on Monday. Trading in the US dollar market accounted for 62,895 units valued at US$13,838 bringing the total trade to J$89,256,266.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 3 stocks with bids higher than their last selling prices and 3 with lower offers.
The main market ended trading with an average of 197,366 units valued at $3,966,055 for each security traded compared to an average of 86,479 units valued at $891,431. The average volume and value for the month to date ended at 136,641 units with an average value of $2,905,009 compared with an average of 126,520 units with an average value of $2,728,168 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Berger Paints closed at $14.53 with gains of 23 cents trading 39,207 shares, Cable and Wireless lost 5 cents to close at $1, with 132,419 stock units switching owners, Caribbean Cement closed at $24, after losing 35 cents and exchanging 23,293 shares, Carreras advanced $2 to close at $90 with just 663 shares changing hands, Grace Kennedy gained 39 cents to close at $41.40 trading 107,561 units. 
Jamaica Broilers closed at $18.01, with gains of 41 cents exchanging 3,501,734 shares, Jamaica Producers gained 55 cents, closing at $15, trading 12,153 shares. Jamaica Stock Exchange closed at $6.60, gaining 20 cents and trading 28,156 shares, JMMB Group gained $1, closing at $20 with 10,600 units changing owners, Kingston Wharves gained of 10 cents and closed at $29.10, with 177,693 shares. NCB Financial Group traded $2.90 higher to close at $71.40, after exchanging 94,828 shares, 138 Student Living added 5 cents, closing at $4.55 with 2,100 shares traded, PanJam Investment gained 25 cents to close at $34.50, with an exchange of 13,265 units, Proven Investments traded 66,000 shares at $24.51, Pulse Investments lost 1 cent to close at $2.74, with 16,900 shares changing hands, Radio Jamaica exchanged 3,049 shares at $1.20. Sagicor Group traded $2.50 higher to close at $33, with 47,142 shares changing hands, Sagicor Real Estate Fund added $1.54, closing at 52 weeks’ high of $13.80 with 100 units exchanged, Scotia Group advanced $2 to close at $44 with trades of 54,394 shares while Supreme Ventures closed at $7.30, gaining 5 cents with an exchange of 9,880 shares. Proven Investments US ordinary shares closed at 22 US cents trading 62,895 units, JMMB Group 7.25% preference share closed at $1.55 exchanging 100 units and JMMB Group7.5% preference share exchanged 810 units at $1.10.
JSE majors rise on Monday
JSE headquarters in downtown Kingston.
The Jamaica Stock Exchange main market index recovered from the sharp fall on Monday to post some modest gains at the close of trading on Monday, but declining stocks still outnumbered advancing ones, 2 to 1 as investors continue to mark the majority of prices down on a day of modest trading.
At the close, the All Jamaica Composite Index added 411.89 points to close at 254,648.29, the JSE Market Index gained 375.28 points to 232,013.43 and the JSE US dollar market index shed 3.42 points to close at 172.23.
At the close of trading, 23 securities changed hands in the main market, with 2 trading in the US dollar market, Activity led to just 5 stocks advancing and 11 declining. The main market ended with 1,989,011 units valued at $78,337,785 changing hands compared to 3,946,660 units valued at $78,337,785 at the close on Friday. Trading in the US dollar market accounted for 132,375 units valued at US$35,402 bringing the total trade in all the markets to J$$25,045,014.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 8 stocks with bids higher than their last selling prices and 1 with a lower offer.
The main market ended trading with an average of 86,479 units valued at $891,431 for each security traded compared to an average of 146,173 units valued at $2,901,399. The average volume and value for the month to date ended at 126,520 units with an average value of $2,728,168 compared with an average of 134,528 units with an average value of $3,095,516 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.In market activity, Berger Paints fell 50 cents and ended at $14.30, with an exchange of 9156 shares, Cable and Wireless closed at $1.05, with 18,310 stock units switching owners, Caribbean Cement traded $3.15 cents lower to close at $24.35 in exchanging 12,950 shares, Carreras closed at $88 with 29,518 shares changing hands,Grace Kennedy lost 98 cents to close at $41.01 trading 6,353 units. Jamaica Broilers exchanged 30,200 shares at $17.60, having lost 40 cents, Jamaica Producers closed at $14.45, with 4,500 shares trading. Jamaica Stock Exchange exchanged 7,540 shares at $6.40, JMMB Group gained 40 cents to close at $19 trading 218,160 units, Kingston Wharves closed at $29, with a loss of $1.50 exchanging 400 units, 
Mayberry Investments lost 9 cents to close at $4.60, with 8,000 shares changing hands. NCB Financial Group closed at $68.50, with a loss of $2 after exchanging 41,943 shares, 1834 Investments gained 4 cents to end at $1.36 with 1,220 shares traded, Portland JSX lost 1 cent to close at $10, with an exchange of 500 units, Proven Investments added 50 cents in trading 66,000 shares at $24.51, Pulse Investments lost 25 cents to close at $2.75, with 58,200 shares changing hands,Radio Jamaica traded 30 cents lower to close at $1.20 with 64,959 shares exchanged. Sagicor Group closed at $30.50, with gains of 50 cents trading 42,230 shares, Sagicor Real Estate Fund added 2 cents, closing at $12.26, with 3,684 units traded, Scotia Group closed at $42 with an exchange of 108,188 shares while Supreme Ventures closed at $7.25, after losing 25 cents with an exchange of 4,000 shares. Proven Investments US ordinary share closed at 22 US cents trading 66,000 units, Margaritaville Turks US ordinary shares traded 66,375 units at 32 US cents, Jamaica Money Market Brokers 7.5% preference share closed at $2 exchanging 238,000 units and JMMB Group7.5% preference share exchanged 1,015,000 units at $1.10.
Jamaica stock market plunged on Friday
The Jamaica Stock Exchange main market had a big hit on Friday as declining stocks outnumbered advancing ones, 2 to 1 as investors marked prices of several stocks sharply down leading to a fall of more than 5,000 points in the all Jamaica composite Index.
At the close, the All Jamaica Composite Index plunged 5,207.13 points to close at 254,236.40, the JSE Market Index dived 4,744.29 points to 231,638.15 and the JSE US dollar market index gained 2.61 points to close at 175.65.
At the close of trading, 27 securities changed hands in the main market, with 1 trading in the US dollar market, and 1 in bond market. Activity led to 7 stocks advancing and 13 declining. The main market ended with 3,946,660 units valued at $78,337,785 changing hands compared to 1,498,592 units valued at $27,780,303 at the close on Thursday.
Trading in the US dollar market accounted for 832,819 units valued at US$188,222 bringing the total trade in all the markets to J$320,285,532.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 4 stocks with bids higher than their last selling prices and 1 with a lower offer.
The main market ended trading with an average of 146,173 units valued at $2,901,399 for each security traded compared to an average of 59,944 units valued at $1,111,212. The average volume and value for the month to date ended at 134,528 units with an average value of $3,095,516 compared with an average of 131,617 units with an average value of $3,144,045 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Berger Paints closed at $14.80, losing $1.90 in trading 2,182 shares, Cable and Wireless lost 5 cents and closed at $1.05, with 588,717 stock units switching owners, Caribbean Cement traded 30 cents lower to close at $27.50 in exchanging 2,927 shares, Carreras traded $1 lower after closing at $88 with 3,396 shares changing hands. Grace Kennedy closed at $41.99, losing 1 cent in trading 39,817 units. Jamaica Broilers exchanged 2,000 shares at $18, Jamaica Producers lost 56 cents to close at $14.45, with 12,939 shares switching owners. 
Jamaica Stock Exchange ended at $6.40 trading 28,978 shares, JMMB Group closed at $18.60, with a loss of 90 cents in exchanging 18,126 units, Kingston Properties traded 2,569 units at $8, Kingston Wharves closed at $30.50, with gains of 50 cents from the trading of 6,400 shares, Mayberry Investments gained 14 cents to close at $4.69, with 15,113 shares changing hands. NCB Financial Group rose 50 cents and closed at $70.50, after exchanging 6,291 shares, 1834 Investments lost 3 cents in closing at $1.32 with 14,400 shares traded, PanJam Investment gained 15 cents to close at $34.25, with 355,285 units changing hands, Portland JSX exchanged 1,000 units at $10.01, Proven Investments traded 1,387,365 shares at $24.01, Pulse Investments lost 50 cents to close at $3, with 37,114 shares changing hands, Radio Jamaica shed 10 cents lower to close at $1.50 with 100,638 shares trading. Sagicor Group closed at $30, with a loss of $3 trading 10,436 shares, Sagicor Real Estate Fund traded 1,800 units at $12.24, Scotia Group traded $1 lower, to end at $42 with an exchange of 617,719 shares, Scotia Investments traded 11,395 shares ad closed at $36.01, Sterling Investments closed at $14.05, with a loss of $1.45 and 2,000 shares changing ownership while Supreme Ventures gained 50 cents to close at $7.50 and with an exchange of 5,500 shares. Proven Investments US ordinary shares closed at 22 US cents in trading 832,819 units, JMMB 7.5% preference share gained 15 cents to close at $2 in exchanging 671,301 units, JMMB Group7.25% preference share rose 6 cents, closing at an 52 weeks’ high of $1.55, with 1,252 units changing hands and ISP Finance bond traded 207,000 units at $1.
Palace jumps $50 to $550 on Thursday
Palace Amusement hit a record of $550 on Thursday.
Palace Amusement stock jumped by $50 to close at an all-time high of $550, with only 143 shares trading, the big price movement would have little effect on market index. The next largest movement was Carreras with a fall of $3 as it pulled back from the record close on Wednesday.
At the close of the market, the All Jamaica Composite Index declined 192.22 points to close at 259,443.53, the JSE Market Index fell 175.13 points to 236,382.44 and the JSE US dollar market index gained 1.21 points to close at 173.04.
At the close of trading, 25 securities changed hands in the main market with 1 trading in the US dollar market, leading to 8 stocks advancing and 10 declining. The main market ended with 1,498,592 units valued at $27,780,303 changing hands compared to 5,512,413 units valued at $131,703,756 at the close on Wednesday. 
Trading in the US dollar market accounted for 620,750 units valued at US$137,765 bringing the total value of trading $204,533,145. In the bond market, ISP Finance bond traded 207,000 units at $1.10 each.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 5 stocks with bids higher than their last selling prices and 2 with lower offers.
The main market ended trading with an average of 59,944 units valued at $1,111,212 for each security traded compared to an average of 212,016 units valued at $5,065,529. The average volume and value for the month to date ended at 131,617 units with an average value of $3,144,045 compared with an average of 155,508 with an average value of $3,821,656 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Berger Paints closed at $16.70, gaining $1.20 in trading 2,094 shares, Cable and Wireless lost 3 cents and closed at $1.10, with 143,899 stock units switching owners, 
Caribbean Cement traded 20 cents lower to close at $27.80 in exchanging just 194 shares, Carreras traded $3 lower to close at $89 with 34,284 shares changing hands, Grace Kennedy closed at $42, with gains of $1.50 trading 19,382 units. Jamaica Broilers exchanged 44,607 shares at $18, Jamaica Producers added 1 cent to close at $15.01, with 111,089 shares trading, Jamaica Stock Exchange lost 55 cents to close at $6.40 trading 26,463 shares, JMMB Group closed at $19.50, after gaining 50 cents in exchanging 26,717 units, Kingston Properties traded $1 lower, to close at $8, with 3,200 units changing hands, Kingston Wharves closed at $30, with a rise of $1 after the trading of 250 units, Mayberry Investments lost 5 cents to close at $4.55, with 31,464 shares changing hands. NCB Financial Group closed at $70, after exchanging 23,981 shares, 1834 Investments lost 15 cents in closing at $1.35 with 346,000 shares traded, Palace Amusement advanced $50, closing at an all-time high of $550 in exchanging only 143 units, PanJam Investment closed at $34.10, after losing 40 cents with trades of 50,200 shares, Proven Investments gained 1 cent to close at $24.01, with an exchange of 406,756 shares, Pulse Investments closed at $3.50, with 34,714 shares changing hands, Radio Jamaica traded 129 shares at $1.60. Sagicor Group lost 50 cents and closed at $33, with 32,985 shares changing hands, Sagicor Real Estate traded 17,766 units at $12.24. Salada Foods exchanged 1,128 shares at $10, Scotia Group traded 45 cents higher and closed at $43 with an exchange of 104,910 shares, Seprod traded 18,250 shares at $30 while Supreme Ventures closed at $7, with a loss of 77 cents and an exchange of 17,987 shares and Proven Investments US ordinary shares closed at 22 US cents in trading 620,750 units.
SOS solidly BUY RATED
Stationery and Office Supplies reported earnings of 26 cents per share for 2016 and IC Insider.com forecast 40 cents pretax for the current year from just over $90 million in pretax profit, a near doubling in profits over the $53 million reported in 2016.
Revenues increased 11 percent in 2013, just 5 percent in next year, 14 percent in 2015 and 12 percent in 2016 and 20 percent for the first six months of 2017, hitting $702 million in 2016 and seems on target to get to around $850 million for 2017.
Pre-tax Profit in 2016, pre-tax profits jumped 279.5 percent to end at $53 million compared to only $14 million in 2015, and $8 million in 2014.
Improvement in the Company’s revenues has been attributable to organic expansion driven by the achievement of deeper penetration in the market for the Company’s products and services but inflation and devaluation of the Jamaican dollar versus the United States currency would also play roles. Improved profit and cash flow generated in the last two years helped to fund increased inventory making more choices available to customers and that is reflected in a noticeable pick-up in sales. The Company has expanded its product offerings, adding to the list of brands it distributes and venturing into manufacturing its own brands of furniture – Image and Torch.
Gross profit as a percentage of sales was a strong 48 percent in 2016, coming from 43 percent in 2015 and 44.55 percent in 2014. Lower cost of sales led to an improved gross profit position of $339 million in 2016, which 26.09 percent increase over that earned in 2015 and 10 percent more in 2015 over 2014.
As at the 31 March 2017, SOS reported first quarter revenues of $220 million, 20.7 percent more than the $182 million reported in the corresponding period for 2016. Cost of sales as a proportion of revenue remained in line with the FY 2016 representing 50.66 percent of total revenue; this percentage was however slightly higher than the 48.75 percent for all of 2016. The company reported pretax profits of $30 million compared to $29.5 million in Q1 2016. A number of factors impacted the 2016 results that resulted in higher profits than would normally be the case as such the 2017 profit are better than the figures suggest. In effect the 2016 first quarter could be around $20 million from normal ongoing operation.
Gross profit for the three month period ended 31 March 2017 was $108.64 million or 16.2 percent more than the $93 million reported in 2016. SOS also reported an increase in administrative costs of 21 percent to $53 million and selling expenses climbed 37.5 percent to $18 million.
Total assets were valued at J$498 million at the March this year comprising current assets of $243 million. Inventories stood at $117 million, receivables $93 million and cash of J$12 million. Total liabilities amounted to J$231 million, with trade and other payables of J$78 million. Shareholders equity stood at $270 million or $1.35 per share.
The company will benefit greatly from listing and sales to climb above recent levels form the increased exposure that will be gained from listing on an ongoing basis as well as the increased working capital that will provide additional choices for customers and help fuel increased sales. IC Insider.com accords the stock BUY RATED with the price to rise sharply after the stock list.
Express Catering stock a fair buy
Ian Dear, Chief Executive Officer of Express Catering
The 100 percent shareholder of Express Catering, Margaritaville St Lucia, are offering up to 327,500,000 of existing shares for sale at $1.50 each, to raise approximately J$490 million from the public. Most of the shares are reserved for special interest groups.
The issue opens at 9 am on Wednesday 12 July and is scheduled to close at 4 pm, Wednesday 19 July 2017.
Up to 16,500,000 shares are Company Reserved Shares, 32,750,000 are Mayberry Reserved Shares, 245,625,000 shares are Key Partner Reserved Shares with 32,625,000 slated for the General Public Shares. The company has 1,637,500,000 issued and this will not change with the issue. The stock will be listed on the Junior Market of the Jamaica Stock Exchange. Mayberry Investments are the broker to the offer.
The stock appears to be a fair buy with growth to come from expansion into the Starbucks franchise to be located at the Sangster Airport and continued growth in visitor arrivals through that airport going forward as the sector expands.
The selling shareholder will use the funds raised in the Invitation for the purposes of the Group’s liquidity inclusive of the continued improvement and expansion of the Company’s operations, working capital and general corporate purposes. The proceeds of sale will also be used to pay the expenses of the Invitation out of the fundraising, which the Directors expect will not exceed J$27.5 million.
Franchises operated include; Quiznos Subs and Salads, Dairy Queen, Nathans Famous Hot Dogs, Domino’s Pizza, Auntie Anne’s Pretzels, Wendy’s, Cinnabon, Moe’s South Western Grill, Island Deli, Viva Fresh Market Grab & Go, Cricket Sports Bar, Connections Bar, Air Margaritaville Arrivals Bar, Jamaican Bobsled Cafe and The Groovy Grouper The Bar.
The Company achieved revenue of US$14.1 million in the financial year ended May 2016, an increase of US$460,000 or 3.4 percent over the previous financial year’s Revenue of US$13.6 million. Revenue for financial years 2013 and 2014 was US$10 million and US$12.2 million respectively. While the financial show gross margins stable around 73 percent of revenue, while administrative and other costs as reported accounts for 58 percent of revenue for 2016 and slightly more for the comparative period in 201. Administrative costs include some items that should be included in cost of sales as they are not administrative expenses. Included here for the 2017 figures in US dollars are; Franchise fee $1,264,282 fuel $39,098, bar and restaurant supplies $373,127, staff cost of $1.39 million and rent of $2.8 million as well as electricity.
Net Profit of US$1.1 million was realized in 2016 up from US$590,000 in 2015. For 10 months of financial year to March 2017 revenue grew to US$11.54 million with net profit before tax of US$1.15 million from revenues of US$11.52 million in the 10 months of the prior year and profit of US$904,144 in the same period the prior year. Profit before tax should end the 2017 fiscal year around $1.25 million for earnings per share of .076 US cents or 9.7 cents Jamaican.
In the period to March 2017 launched a 7 year preference share to raise US$3.5 million. Proceeds from this issue was earmarked for the construction of the Starbucks Coffee outlets at Sangster International Airport, and to settle certain Group obligations.
The board of directors comprises, Winston Dear, Ian Dear, Roland Clarke, John Byles, Tania Waldron-Gooden.
The stock is being sold at a big premium to net asset value of $0.36 with equity valued at US$4.6 million, but at a PE of 15 based on 2017 earnings. Earnings for the May 2018 period could rise to $1.65 million or earnings per share of US 1 cents per share or J$0.13, excluding the new franchise operation. The average of the Junior Market of approximately 12.5.
JSE inch up on Wednesday
Carreras climbed to a 52 weeks’ high of $92 on Wednesdaay.
Big movements in a number of main market stocks were mixed at the close of the Jamaica Stock Exchange on Tuesday, leaving the market indices with moderate gains with one stock climbing to a new high.
The All Jamaica Composite Index advanced 126.62 points to 259,635.75, the JSE Market Index gained 115.36 points to 236,557.57 and the JSE US dollar market index dropped 2.64 points to close at 171.83. At the close of trading, 26 securities changed hands in the main market with 2 trading in the US dollar market and one bond traded, leading to 7 stocks advancing and 13 declining. Carreras closed at a new 52 weeks’ high at the conclusion of trading. The main market ended with 5,512,413 units valued at $131,703,756 changing hands compared to 3,076,517 units valued at $75,479,037 at the close on Tuesday. Trading in the US dollar market accounted for 1,886,641 units valued at US$414,205, bringing the total value to J$184,887,663.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 7 stocks with bids higher than their last selling prices and 4 with lower offers.
The main market ended trading with an average of 212,016 units valued at $5,065,529 for each security traded, compared to an average of 133,762 units valued at $3,281,697. 
The average volume and value for the month to date ended at 155,508 units with an average value of $3,821,656 compared with an average of 127,255 units with an average of $3,199,719 on the previous trading day. The average volume and value for June ended at 218,951 units with an average value of $3,871,959.
In market activity, Berger Paints closed at $15.50, losing $1, trading 3,486 shares, Cable and Wireless gained 3 cents and closed at $1.13, with 70,616 stock units switching owners, Carreras jumped $1.99 higher, in closing at a 52 weeks’ high of $92 with 84,094 shares changing hands, Grace Kennedy closed at $40.50, with a loss of $1.50, trading 24,428 units. Jamaica Broilers gained 30 cents, closing at $18, with an exchange of 137,347 shares, Jamaica Producers closed at $15, losing 70 cents with 6,700 shares trading. Jamaica Stock Exchange lost 15 cents to close at $6.95, trading 46,311 shares, JMMB Group closed at $19, with a loss of $1 exchanging 9,377 units, 
Kingston Properties traded 95 cents lower to close at $9, with 4,000 units changing hands, Kingston Wharves closed at $29, losing 50 cents while trading 5,165 shares, Mayberry Investments closed at $4.60, with 3,000 shares changing hands. NCB Financial Group climbed $1.45 to close at $70, after exchanging 768,259 shares, 1834 Investments added 15 cents, in closing at $1.50 with 30,292 shares traded, PanJam Investment closed at $34.50, losing 70 cents with trades of 18,348 shares, Proven Investments lost 1 cent to close at $24 exchanging 2,439,750 shares, Pulse Investments closed at $3.50, with a loss of 85 cents and 22,500 shares changing hands, Radio Jamaica traded 86,675 shares at $1.60. Sagicor Group closed at $33.50, with gains of 40 cents trading 28,638 shares, Sagicor Real Estate gained 14 cents to close at $12.24 exchanging 1,015 units. Scotia Group traded $2.45 lower, closing at $42.55 with an exchange of 10,927 shares, Scotia Investments closed at $36.01, losing $1.99 with 42,553 shares changing hands, Seprod traded 29,647 shares at $30 while Supreme Ventures closed at $7.77, with an exchange of 73,630 shares. Margaritaville Turks US ordinary share closed at 32 US cents, with trades of 34,800 units, Proven Investments US ordinary share closed at 22 US cents trading 1,833,841 units, JMMB Group 7.5% preference share lost 1 cent, closing at $1.10 with 1,309,213 units exchanged and JMMB 7.5% preference share closed at $1.85, with 171,442 units traded.