Everything Fresh picks up Meat company

Everything Fresh traded at $1.61 on Monday.

Everything Fresh completed the purchase and takeover of Meat Experts for a consideration of $50 million, the company reported to the Jamaica Stock Exchange.
The company expects to spend an additional $30 million for upgrades, the release stated. “Meat Experts is a widely integrated manufacturing operation located in Bog Walk, St. Catherine. It has its own abattoir, cutting, processing, packaging and cold storage facilities and logistics network. This acquisition will add several new products to the Everything Fresh lineup, promote the support of local livestock and produce farmers and reduce costs. Everything Fresh will be serving both its bulk and retail clients with additional products that will be launched under the Meat Experts and Everything Fresh brands. Everything Fresh continues to pursue other salient opportunities which exist,” the company stated.
The acquisition provides diversification for Everything Fresh that was previously a purely a distributor of edible goods including fruits and meats.

Everything Fresh two major owners and directors, Mr. & Mrs. Pullen.


Everything Fresh is listed on the Junior Market of the Jamaica Stock Exchange, with the stock closing at $1.61 on Monday.
The suffered a reduction in revenues in the September 2018 quarter from $450 million to $422 million but the nine months period enjoyed a rise from $1.365 billion to $1.39 billion. A loss of $17.5 million was realized in the September quarter versus a profit of $11 before tax in 2017 and for the nine months, profit declined to $27 million before tax from $35 million in 2017. The acquisition could add between $20 to $30 million in profit for the group, based on the capital involved in acquisition and the upgrade to take place.

Big leap in BUY RATED Wisynco profit

Profit at Wisynco attributable to shareholders, rose a strong 36 percent to $776 million for the December quarter and 30 percent for the half year, to $1.54 billion.
Profit for the period would have been even better had the company not picked up a foreign exchange loss of $128 million in the December quarter. Profit before Taxation increased 24 percent to $942 million over the $760 million realized in 2017. The company earned of 21 cents per share for the quarter and 41 cents per share for the six months.
Revenues for the December quarter rose 16 percent to $7.1 billion over the $6.1 billion achieved in the corresponding quarter of 2017, while revenues rose 14 percent to $13.9 billion in the half year period.
Gross profit increased 18.3 percent, to $2.8 billion over the $2.4 billion achieved in the same quarter of 2017, for the half-year gross profit grew 18 percent to $5.4 billion. The company is eking out greater operational efficiencies with gross profit margin of 39.8 percent bettering the 39 percent for the 2017 second quarter. For the six months, gross profit margin grew to 38.8 percent from just 37.4 percent in 2017.

Sugar canes from which sugar is made.

Selling and distribution cost rose at a much slower pace than revenues, with a 12 percent increase for the quarter to $1.47 billion and 11 percent for the half year to $2.94 billion. Administrative Expenses increased 21 percent for the quarter to $284 million and grew by a sharp 79 percent to $544 million for the six months.
“Sales of Worthy Park spirit brands which include Rum-Bar Rums, Rum Cream and Vodka, commenced in November. The distribution of the Worthy Park packaged sugar commenced at the beginning of January,” Wisynco stated. The expanded products range, will lead to increased sales and profit, this fiscal year.
The company closed out the calendar year, with healthy looking financials, with just under $10 billion in equity capital, borrowing of $2.3 billion, cash funds of $3.63 billion and net current assets at $5 billion.
Wisynco is an IC Insider.com BUY RATED stock with the potential to earn around $1.10 per share in 2019 and $1.55 for the next fiscal year that starts in July, with the stock price hitting at least $15 by the end of this year.  Usally reliable reports is suggesting that the company could land the distribution rights for another major local brand that would ahve a big impact on revenues and sales. The stock traded on the Main Market of the Jamaica Stock Exchange at the close on Friday at $10.40 for a PE of less than 10 times this year earnings compared with an average of 16 based on earnings for the market at the end of 2018.

Twice a year dividend for Wisynco

Shareholders at Wisynco 2018 AGM.

Wisynco declared a dividend of 7 cents per share payable on February 26, 2019 to shareholders on record at February 12, 2019.
The company in its report to shareholders accompanying the half results, states, that “going forward dividends will be declared semi-annually, with the first interim dividend being in January and the final dividend in July of each year.”
Wisynco reported a 36 percent rise in net profit for the December quarter to $776 million and 30 percent for the half year to $1.54 billion.

Weak demand to affect ICreate stock

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Subscribers for shares in the public offer of 74,062,500 Ordinary Shares in iCreate received a high percentage of the amount applied for, except for applications with more than 400,000 units.
According to Sagicor Investments, the lead broker for the issue, all the applications received, the first 400,000 units in full with those with balances in excess of 400,000 units for the General Public Pool was allocated approximately 1.32 percent of the excess.
This is not great news for many of the investors in the issue as they could see a fall in the price of the stock as there seem to be inadequate demand for the stock at the issue price of $1.01 before it moves higher.
The stock is scheduled to be listed on the Junior Market of the Jamaica Stock Exchange.

JSE trading hits record in 2018

The Jamaica Stock Exchange enjoyed its best year ever in 2018, with trading in the main market climbing 110.40 percent over 2,590,383,796 shares in 2017 to reach 5,450,190,431 units valued at $75,469,542,096, up by 105.70% compared to $36,689,806,007 traded in 2017.
In the final quarter of 2018, trading volume excluding block transactions in the main market fell by 13 percent to 915 million shares with the value increasing 62.4 percent to $22,271,459,936, for the highest quarterly value traded for 2018, data from the Jamaica Stock Exchange show.
Trading activity fell in the Junior Market in 2018, versus the previous year, as regular trading declined 70 percent in December and helped push the volume down by 10 percent for the year and the value by 15 percent. Trading in the Junior Market resulted in 26,845 transactions in 2018 and 1,415,717,406 units changing hands for $5,848,812,746 compared to 22,230 transactions and 1,347,735,367 shares valued at $6,863,734,529.90 in 2017, for regular and block transactions.
In the US dollar market, 15.5 percent less transactions occurred, but volume traded was just marginally down to 43,576,278 units with a decline of 30 percent in value to US$8,765,761, from US$12.5 million in 2017.
With trading reaching the above levels and equating to more than US$633 million in 2018, the market   has surpassed the record $40 billion or US$630 million traded in 2005.
For January this year, the overall volume amounted to 1,230,485,201 units valued at $5,675,185,083 up sharply from 201,572,646 shares valued at $3,001,143,584, last year January.
The increased trading while indicating increased buying interest in the market, it is signaling a major switch in interest from the Junior Market stocks to the main market, last year. It also suggest that institutional investors are more involved in the market than before. Finally, it telegraph a strong message about the prospects for the profitability for the Jamaica Stock Exchange should the trend continue.

Watch NCB but Fontana may break out

Jamaica Stock Exchange listed companies will start releasing the December quarterly reports this week. Results could move prices depending on how investors view their strength or weaknesses.  
NCB Financial remains on the Watch List with strong gains in operating profit for the December quarter, resulting in increased demand for the stock last week with the price rising to $152.90 but two big trades on Friday peg the price back to $145. The stock should continue to see buying interest around the current level that could well result in another attempt at the $150 level as investors find it difficult to get meaningful supply at the $145 level. There is currently over 210,000 units on offer at $145. The price is currently below near term resistance at $150. If it breaks through then it faces another at $170 with $200 level being the next big one.
Fontana now has a bid to buy 904,281 units at $3.50, with just 56,452 units on offer, for sale at $3.60. A relatively high degree of overhang of supply of the stock that that was on offer, was bought on Thursday. The reduced supply could now pave the way for buyers to be more aggressive in acquiring shares to benefit from the strong potential gains that lie ahead. General Accident enjoyed greater demand in the past week with the price rising to $4. With the 2018 results likely to come out in the region of 45 cents per share that will provide solid incentive for the buyers to pick up the stock.

Fontana upcoming Waterloo Road branch

Jamaica Stock Exchange shares hit new highs during the past week with increasing interest being shown in the stock. Exposed supply is current not high and with expected continued buoyancy in the market and a big increase in new listings this year investors seem more aggressive to buy into what should be another year of increased profit for the company. Supply of Seprod’s shares continue to decline after a period of high supply following the public sale of 91 million shares that satisfied the market and resulted in increased selling as some investors took profit. The price has been inching higher over the past week or two and seems poised to move higher again in the coming weeks. Wisynco’s directors met last week and announced a 7 cents dividend. Most likely, the second quarter results would have been approve at that meeting and should be released this week. Last year results were posted on the JSE website on February 7. The second quarter results, are expected to be better than the first quarter. Revenue in the September quarter was negatively affected by some disruption in sales due to commissioning of new equipment.
The three Lasco companies should be releasing results for the December quarter by the end of the week and the prices could see some movements as a result.

iCreate IPO oversubscribed

The ordinary shares of iCreate is set to be the next Junior Market listing that will bring the total companies to listed to 38 and the total securities to 40.
Sagicor Investments advised the Jamaica Stock Exchange that the public issue of shares in the one-year old company was oversubscribed with the issue closing on February 1 at 1:00 pm a little less than two days after it opened.
ICreate initial public offer of shares, sought to raise $70 million from 74,062,500 ordinary shares offered to the public at $1.01 each to help fund expansion. The offer opened on Thursday, January 31 and was originally scheduled to close on February 14.
Financial statements for the company showed that they were close to a break even in 2018.
The company is a creative learning institute developed with the aim of providing skills training and development of creatives in the Caribbean and North America.

NCB the stock to watch

NCB tis the stock to watch with big jump in profit from continuingh operations.

Investors in aggressive buying of NCB Financial shares in late 2018, pushed the group’s shares up to a record high of $161 on last day of November last, following full year’s results that were released earlier in the month.
If investors reacted so strongly to results that were telegraphed previously by the nine months results, it will be interesting to see how they react to the 29 percent hike in dividend and a 40 percent rise in profit before one-time income and taxation.
With profits from ongoing operations seeming set to rise to the $14 region this year, NCB Financial is clearly the stock to watch today.
The results could spark the start of the 2019 rally in the main market and push the price well beyond resistance around the $160 market and unto the next resistance around $200.
In pre market activity, the indication is that the stock will move higher than the $145 it last traded at on Thursday. With just over ten minutes to the start of trading, there are 20,300 units on the bid at $147 and ten at $145 to $145.01.

NCB hikes dividend 29%

NCB hiked dividend to 90 cents from 70 cents in 2018.

NCB Financial hikes dividend 29 percent, to $2.2 billion or 90 cents per share, as profit from ongoing operations jumped 40 percent in the first quarter to December last year to $5.7 million before taxation.
Profit after taxation and one-time gains, resulted in net profit of $7.4 billion for the first quarter of the 2019 financial year, slightly lower than the prior year’s results that included a gain (negative goodwill) of $4.4 billion relating to the acquisition of Clarien Group. Profit for the latest quarter, includes a gain of $3.3 billion from the disposal of 326,277,325 JMMB Group shares at $28.25 per share.
The strong improved results climbed on the back of 24 percent in net income, to $20.7 billion from $16.7 billion in 2017, offset by a 21 percent increase in expenses. Included in expenses is loan loss provision of $1, up from just $146 million in 2017 and seems tied to the need to adjust loan provisioning in line with new Accounting Standards. Depreciation and amortization cost almost doubled to $1.3 billion, from $667 million in 2017. Other operating expenses jumped 29 percent to $6 billion from $4.7 billion in the prior year. The big improvement in revenues flowed from increases in net interest income from $7.55 billion to $9.85 billion, an increase of 30 percent, while exchange trading delivered a third more, at $4.2 billion.
Retail and Small Business Banking segment profit grew a strong 36 percent to $1.34 billion, but Payment Services fell just 2 percent to $1.2 billion. Corporate Banking jumped sharply by 76 percent to $1.25 billion, Treasury and Correspondent Banking was up by just 14 percent to $1.65 billion. Wealth, Asset Management and Investment Banking, grew attractively by 39 percent to $1.2 billion, Life Insurance & Pension Fund Management rose 29 percent to $1.3 billion while General Insurance moved from a loss of $107 million to a profit of $227 million.

NCB giving back to the community.


The Group’s loans and advances, net of provision for credit losses, rose 16 percent to $373.5 billion. NCB stated that “the growth was driven by our Jamaican that increased by 22 percent or $50.4 billion. Non-performing loans totalled $18.5 billion as at December 2018 (December 2017: $15 billion) and represented 4.9 percent of the gross loans compared to 4.6 percent as at December 2017.”  Customer deposits grew just 7 percent to $461 billion. The varied growth rate between loans and deposit is a strong positive for profit as the revenues climb faster than cost.
The group re-launched a revised take-over to acquire up to 32.01 percent of the outstanding shares of Guardian Holdings which, when combined with NCB’s existing 29.99 percent holding will bring the total to 62 percent. The profit of the group will get a further boost from this acquisition. IC Insider.com has updated the earnings per share for 2019 to $14 from continuing operations and with the stock price at $145, the PE is just over 10 times earning making the stock BUY RATED with a 2019 target price of $225.

JSE – directors cannot override AGM decision

Palace Multiplex in Montego Bay.

Palace Amusement shareholders approved a dividend of $2 per shares at the annual general meeting held in December last year with the record date of January 7 and payment to be made on January 18.
IC insider.com was informed that the Jamaica Stock Exchange stopped the payment. In discussion with the JSE they indicated that the company did not comply with the rules of the exchange to inform them of the dividend. Accordingly, the change in dividend payment was to allow for the public to have notice of the ex-dividend date.
That of course is only partially true, while the company did not advise the exchange when the directors were to meet to approve the dividend and what was the outcome of the meeting. The exchange had adequate notice of the payment from October 31. The exchange JSE staff did nothing about the information that they got and approved for posting on their website.
The company’s directors’ report clearly states that the dividend had an xd dividend date of January 4 with the payment to be made on January 18. The annual report was posted on the JSE website from October. The directors, report along with the audited report were put to the meeting for acceptance which was done.

Andre Tulloch, head of the JSE regulatory arm.

Shareholders after approving the directors’ report, approved the resolution for the payment of the dividend, effectively agreeing to ex dividend and payment dates as set out in the directors report.
In the wisdom of the Jamaica Stock Exchange, they ignored the supremacy of the AGM and forced the company to submit information to change all the dates relating to the dividend. They failed to understand that the directors have no powers to change what the shareholders approved, and if a change is to be made, then the directors would need to call a general meeting to get shareholders to make the change. The correct remedy would have been some reprimand not a call for a non-legal action.
The requirements of the JSE is that any meeting at which a dividend is to be consider should be communicated to the JSE no later than 7 days before the date of the meeting and within 48 days of the meeting the decision taken. This was not done by Palace, but the JSE who had notice of the declaration from the end of October, did nothing about it for more than two months.
On 17 January, a posting on the JSE website showed that the record date was changed to January 31. The posting stated the “Palace Amusement (PAL)  has advised that following decision made at their Annual General Meeting in December 2018, to pay a dividend of $2 per stock, the payment will be made on February 8, 2019, to the shareholders on record as at January 31, 2019,  The ex-dividend date is January 30, 2019.”
The added problem is that shares were traded in January after the xd date of January 4. The seller would have expected to collect the dividend that was approved. It also means that cheques already drawn, may have to be redone, to record the new record date.
The JSE has clearly, made a huge error in this matter and should immediately correct it, to prevent a messy situation from getting worse. You cannot correct a wrong by another wrong.