22% percent increased cement sales in Q3

Carib Cement  closed at a new 52 weeks' high of $12

Carib Cement closed at a new 52 weeks’ high of $12

Caribbean Cement sold 22 percent more cement on the local market I this years’ third quarter than they did in 2014 September quarter. “Domestic sales volume for the third quarter exceeded the corresponding period in 2014 by 22 percent and for the nine month period, was 9 percent above the volumes in 2014” Christopher Dehring, Chairman and Jose Luis Seijo Gonzalez, group CEO stated in a joint statement issued along with the September quarterly report.
For the nine months to September 2015, the company ended with a profit after tax of $1.486 billion. In 2014 a profit of only $25 million was realised for the nine months last year. The 2015 results translate to earnings per share of $1.75 at September. For the quarter to September, profit after tax amounted to 72 cents per share or $617 million compared with just $78 million in the 2014 quarter. If the sales trend continues, earnings per share should hit $2.50 for 2015 which includes an exceptional income of $168 million or about 15 cents per share. The company’s stock traded at $15 on Friday and now carries a PE of 6.5 times this year earnings, and seems set to move up in price with these results with the valuation of the most valued stocks on the market being at 10.
Gross cash generated by operating activities amounted to $2 billion and after repaying loans ended at $997 million in cash funds.
Revenue for the third quarter grew by $741 million or 21 percent over the same period in 2014 mainly driven by improved domestic sales volumes and increased clinker exports which compensated for the decline in cement export sales volumes. The company benefited from lower costs of fuels and energy and Interest expense that decreased by 73 percent for the quarter to only $16 million, from $59 million in 2014. For the nine months interest expenses ended at $120 million from $196 million as a result of the company’s financial restructuring initiative resulting in some prepayments of long-term debt in excess of $800 million. Depreciation and amortisation cost, however, rose from $83 million in the September 2014 quarter to $102 million in 2015 and to $296 million for the nine months from $251 million in 2014.
The vastly improved results have changed the financial structure with net working capital jumping from just $360 million surplus to $2 million at September and equity rising to $6.4 billion from $4.8 at the end of September 2014.

C&W shares may fetch over $3 in a takeover

Cable & Wireless with the old Lime brand logo

Cable & Wireless with the old Lime brand logo

Shares of Cable & Wireless Jamaica (C&W) shot up 22 percent on Friday October 23 to 82 cents, in response to an announcement that Liberty Global, a UK based company was in discussions with CWC Communications PLC (CWC) to acquire it for a consideration in cash and shares, worth US$5.5 billion.
Cable and Wireless shares had become scarce in recent weeks, with one investor IC Insider sources indicated, was seeking 7 million shares to buy, earlier last week at 60 cents each. From as far back as the 8th of October, there were only 4 million units on offer between 55 cents and $1.21. By Thursday the supply dropped even more with trading taking place as high as 67 cents. At 12.30 on October 22, there were 453,964 shares on offer at 67 cents, with 5,000 units sold out of this amount by the close of the market. A total of 305,850 units were on offer at 70 cents, with the next at 90 cents, with 5,000 units. At 99 cents there were 233,730 units, at $1 one block of 877,723 units with the next lot of 10,000 at $1.71, the next 130,169 shares at $2 and 1.66 million units at $3.75. That not a lot for a stock that usually trade in millions of units.
Only 5,850 shares traded on Friday at 82 cents and demand swelled to more than 5 million units at the close to buy at 82 cents. Supply disappeared with only 4 offers listed, ranging for 10,000 units each at $1.20, $1.21 and $1.70 and then 2.66 million units at $3.75.
The question on investors’ minds, is where will the price settle? One broker indicated that it will trade at $1 on Monday if there is supply. With the imbalance between supply and demand, a higher price than that seems imminent. Some Investors are wondering why some buying on the buyout news of the parent when there is uncertainty if the Jamaican shareholders will be bought out as well if the deal goes through. Some are looking at the Diageo transaction with Desnoes & Geddes and speculating that the same could happen here.
IC Insider.com has the stock as BUY RATED from February 2014 on the basis of a turnaround in the financial fortunes of the company. Based on what’s happening locally the current price can be justified as the company is now in a position to be reporting profits, with rising revenues and falling cost. If the deal with CWC goes through, (that does not seem likely at the stated price) and the minority shareholders in C&W were to be bought out, IC Insider went to work to see how high the price could be, in a takeover.
CW grph 10-15C&W had major improvement in earnings in the June quarter, with EBITDA rising a very strong 82 percent. Net results saw a sharp fall to a loss of just $303 million, from a loss of $712 million in 2014 as revenues grew 13 percent to $5.45 billion, aided by a 17 percent growth in mobile subscribers and 27 percent increased mobile revenues. Operating expenses were static at $4 billion but finance cost rose to $1.1 billion from $962 million in 2014, depreciation was down and amortization up. Revenues should climbed close to $6 billion in the September quarter and is likely to result in a profit around $200 million before any allowance for tax.
In March 2015, CWC completed the purchase of Columbus International, a fibre-based telecommunications and technology services provider operating in the Caribbean, Central America and the Andean region, for a consideration comprising US$708 million in cash and 1,558 million CWC shares. This resulted in an increase in share capital of US$78 million and the formation of a merger reserve of US$1,209 million. The total consideration, $2 billion for the CWC acquisition resulted in a multiple of 7.8 times EBITDA.
The proposed price of US$5.5 billion being proposed for CWC with EBITDA of US$840 for the combined entities at March, would be 6.55 times EBITDA. Applying this ratio, puts C&W value based on EBITDA for the current fiscal year around $3.30 each. CWC communications paid much higher multiple for Columbus only a year ago which would make it difficult for CWC management to justify to their shareholders a deal that reduced the value of the group with the full benefit of the merger of the Flow operation not yet visible. The proposed buyout price would, however, be more than the market value of CWC, worth 2.6 billion pounds, or about $4 billion, based on its market capitalization on Thursday. John Malone the major owner of Liberty Global already has a 13 percent stake in CWC.

Another new record close for juniors

Caribbean Flavours traded at a 52 weeks' high of $3.50.

Caribbean Flavours traded at a 52 weeks’ high of $3.50.

The junior market ended at a new record  high at the close, with 13 securities traded and the junior market index rising by 23.09 points to 1,285.78 with 1,356,689 units, valued at $3,717,777 changing hands while 7 stocks advanced and 3 declined.
The market ended with 5 securities closing with no bids to buy, while 4 had no stocks being offered for sale. A total of 8 stocks closed with bids higher than the last traded prices and 1 closed with a lower offer.
In trading, AMG Packaging closed with a loss of 8 cents with 26,909 units changing hands at $3.80 at the end of trading, Cargo Handlers ended with 712 shares changing hands, for a gain of $1 and closed at a new all-time high of $32, Caribbean Cream price slipped 7 cents and closed at $3.23 with 75,719 shares changing hands. Caribbean Flavours traded at a new 52 weeks’ high of $3.50 with 23,708 shares as the price rose 20 cents, Caribbean Producers traded 7,100 units to end at $3, Consolidated Bakeries rose 2 cents in traded 173,007 shares, to end at $1.20. Derrimon Trading ended with 335 shares changing hands to gain 3 cents and end at $2.33, Honey Bun had 10,222 units changing hands at $4, for an increase of 35 cents. Jamaican Teas had just 7,175 shares changing hands at $3.35, Knutsford Express traded 5,000 shares at $6.15 after adding 15 cents for a new all-time high, Lasco Distributors with 66,215 shares changing hands, closed at $2.83. Lasco Financial closed at a new all-time high of $2.50 while 549,875 shares changed hands with the price rising 24 cents and Lasco Manufacturing traded 410,712 shares to end at $3.35 after trading shedding 10 cents.

T&TNGL climbs $2 on TTSE

NGL 19-10-15 Trinidad and Tobago NGL traded on the Trinidad and Tobago Stock Exchange on Tuesday and gained TT$2 to close at a new high of $25 with 7,645,914 shares valued at $191,137,391 changing hands. The stock closed with a bid of $24 to buy 422 shares with 21,663 on offer at $25.
Activity elsewhere on the Stock Exchange, on Tuesday ended with 11 securities trading. At the close, there was just 4 stocks closing higher,1 declined and 5 remained unchanged as a total of 7,755,051 units traded, valued at $192,821,409.
At the close the Composite Index ending with a rise of 2.39 points at 1,152.54, the All T&T Index gained 4.74 points to 1,958.07 and the Cross Listed Index was unchanged at 45.52.
Gains| Angostura Holdings had 598 shares changing hands with the price gaining 1 cent to close at $14.01. Ansa Merchant Bank traded 200 units to close 1 cent higher at $38.95, Clico Investment Fund closed with 59,746 shares valued at $1,344,882 changing hands to end at $22.51, after gaining 1 cent and First Citizens Bank traded 1,636 shares and closed 1 cent higher at $35.01.
TTSE sum 20-10-15 Losses| Guardian Holdings lost 1 cents in trading 10,0001 shares and closed at $13.12.
Firm Trades| JMMB Group traded 21,276 units and closed at 43 cents, Republic Bank closed with 459 shares trading for $112, Scotiabank ended with 19 shares trading to end at $62.50. West Indian Tobacco traded just 200 shares to close at $126 and Trinidad Cement had 15,000 units changing hands at $3.16.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.

The JSE up strongly on Friday morning

The Jamaica stock market for the second consecutive morning, is enjoying slow trading with only 15 securities being active at 10.45 ,but the indices have so far climbed quite a bit with all main market indices up by more than 1,000 points. Jamaica Broilers trades at new 52 weeks’ high of $8. Trading accounted for a volume of 1,206,561 units with 6 stocks gaining and 5 declined.
In trading, Carreras exchanged 109,500 shares at $51.99 to gain 19 cents, Jamaica Stock Exchange had 10,000 shares trading at $8.60 for a rise of 65 cents as the company stands to see increased income if trading continues to be bullish. JSE int 16-10-15JMMB Group exchanged 35,096 shares at $8.55 for a small gain, Scotia Investments had 420,000 units changing hands at $27.50, Caribbean Producers traded at $3 with 65,000 shares. Lasco Distributors 109500 shares traded at $2.79, Lasco Financial Services 105,000 shares traded at $2.25, Lasco Manufacturing 198,172 shares traded at $3.50.
The All Jamaican Composite index jumped 1,124.16 points to 132,131.96 JSE Market Index rose 1,005.91 points to 123,570.27, the JSE combined index rose 1,281.46 points to be at 123,840.64 and the junior market index rose 37.15 points to 1,269.32.

Wednesday’s 9,714 JSE gain biggest ever

The 9,714.07 points rise in the JSE all Jamaica Composite Index on Wednesday, is the Record gain 14-10-15largest move ever on the local stock market. The change betters last week’s Friday’s gain of 7,697.11 points and is larger than the April 13, 2004 fall of 9,295.39 points.
The two big moves in October this year, owe most of the gains to a 71.66 percent rise in the share price of Desnoes & Geddes (D&G) on Wednesday and 63.38 percent on Friday, October 9 which helped to move the stock from $8 to Wednesday’s price of $25.80, for a gain of 421 percent, for the year to date. With the price of the D&G stock having moved close to the equivalent price of J$31 for a share by Heineken, it does not seem likely that there will be another set any time soon.

Jump in main indices on Thursday morning

Activity picked up on the Jamaica Stock Exchange on Thursday morning, with big trades in Grace Kennedy and National Commercial Bank and resulted in 17 securities trading changing hands at 10.45 am with a volume of 3,524,264 units, with 6 stocks declining and 6 rising.
JSE int 1-10-15Trading activity resulted in the JSE Market Index gained 1,591.46 points to 97,916.05. The JSE All Jamaican Composite index jumped 1,778.56 points to 108,382.99, the JSE combined index climbed 1,521.83 points to be at 101,223.14 and the junior market is up 2.45 points to 982.77.
Grace Kennedy traded 2,000,000 shares at $64, National Commercial Bank had 1,073,614 trading between $27.72 to $30, where the price sits now, other useful trades are, Cable & Wireless with 227,689 up to 52 cents, Jamaica Stock Exchange with 40,000 shares at $7.30 and JMMB Group 40,889 at $7.63.

9 stocks rise 6 fall on JSE – early Wednesday

Trading activities on the Jamaica Stock Exchange resulted 18 securities with a volume of 2,375,502 units, with 6 stocks declining and 9 rising.
Trading activity resulted small changes to the indices with the JSE Market Index rising 30.18 points to 98,547.93. The JSE All Jamaican Composite index gained 33.73 points to 109,089.14 and the JSE combined index JSE Intra 16- 09-15 rose 142.51 points to be at 101,682.40. The junior market is up 12.77 points to 967.39.
The main trades so far are, Cable & Wireless has traded 541,404 at 48 cents, Caribbean Producers traded 159,216 units at $2.47 with a gain of 9 cents, Dolphin Cove traded 85,333 units at $12 while gaining 80 cents, Hardware & Lumber dropped $4.50 with 5,000 shares trading to $13, Jamaica Broilers with 32,000 units changing hands at $6.99 while gaining $1.14, Lasco Manufacturing had 1,034,450 shares trading at $2 after gaining 11 cents, Proven Investments ordinary share trades 450,000 units at 20 US dollars, Scotia Investments jumped $3.50 to $28 but with only 1,000 units and Jamaica Money Market Brokers 7.50% preference share traded 52,000 units at $2.

Only 7 stocks trade Thursday morning

There were only 7 securities trading after 75 minutes of the market’s opening, on Thursday. JSE Intra 27- 08-15Trading volume is a mere 166,718 units, with 2 stocks declining versus 3 rising.
Trading activity resulted in the JSE Market Index rose 167.49 points to 98,254.07. The JSE All Jamaican Composite index gained 187.21 points to close at 108,760.65 and the JSE combined index put on 158.02 points to end at 100,935.79. The junior market gained just 0.01 point to close at 915.79.

Big drop for JSE Wednesday morning

The Jamaica Stock market suffered large losses in the morning session up to 11 am, in the process the All Jamaica Index trades at 110,281.78 to fall by 2,012.29 points, JSE Market Index declined 1,800.35 points to 99,614.99. The combined index fell 1,738.30 points to be at 103,101.32 and the junior market index 1,013.25, down 4.50 points.
JSE Intra 19- 08-15Today the Treasury bill bid in the monthly auction is opened. This is a day when investors’ minds are historically not focused on the stock market as they await the outcome of interest rates, as well as how successful their bidding turn out to be. The sluggishness in trading in the morning session, could be related to this development. At the close of trading on Tuesday the signals were for a weaker market on Wednesday, today’s slowness should come as no great surprise.
On a day when there were few stocks rising, Cable & Wireless buck the trend with a rise to 45 cents with only 88,668 units, Caribbean Cement traded only 1,011 units at $8.20 for a 20 cents rise, Scotia Group fell back from $24.50 to $24.01 with just 5,000 shares and contributed a large portion of the fall in the indices, Jamaica Stock Exchange that traded at a new high of $9 on Tuesday traded just 2,000 shares at $8.50 but the stock has an offer at $8.20. Mayberry fell 55 cents to $2.85, with 42,467 shares, Radio Jamaica traded 2,500 shares with a loss of 99 cents to $3.01 and Supreme Ventures traded at 11,600 shares and fell $1 to $3.50.
A total of 21 securities with a volume of only 2,160,851 units have traded with 10 stocks declining versus 3 that rose.