Paramount adds chlorine & bleach

Paramount Trading expanding into Chlorine and bleach processing.

Paramount Trading is expanding its operations by offering chlorine and bleach products for contract manufacturing, the company reported.
“The Company recently completed construction of the infrastructure required for a new chlorine and bleach plant at its 6 East Bell Road, Kingston 11 location, which will be outfitted with state of the art equipment and advanced technology.
The Company plans to commence operation of the plant in February 2018,” the release from the company states.
The Company also advises that on 26 October 2017 it entered into an Asset Sale Agreement to acquire bleach plant equipment and other assets from Seprod, for its new chlorine and bleach operations. This acquisition is in line with the Company’s goals to continuously strengthen its presence as a manufacturer in the chemicals market, and will complement the Company’s existing offerings.
Paramount Trading, enjoyed a big turn-around in profit for the first quarter to August this year, with an increase of 126 percent, to $34 million from a 31 percent increase in revenues to $331 million.
The directors’ report that accompanied the August quarterly results stated that they have “an optimistic outlook for the rest of the year and is very excited by the opportunities that will be realized. The construction of the blending plant and laboratory, in conjunction with Alllegheny Petroleum is slated to be complete during the next quarter.”
The stock currently trades at a PE ratio of 15 with the price at $3 on the Junior Market is in against the line with the market. What is true, is the nimbleness of management to identify new income generated opportunities that makes staying close to the stock potentially profitable.

Lasco Distributors knocks Junior Market

Lasco’s ICool drinks.

The Junior Market Index declined by 53.97 points to close at 3,174.88 on Friday as investors reacted negatively to the interim court findings on the Lasco Distributors’ claim against Pfizer pulling the price down by $1.14 down to $7.
At the close of the Junior Market activities, 15 securities changing hands, versus 18 on Thursday as the prices of 4 securities advanced, 6 declined and 5 remained unchanged. Trading ended in an exchange of 1,983,899 units valued at $10,827,572, compared to 1,808,817 units valued at $8,566,954 on Thursday.
Trading ended with an average of 132,260 units for an average of $721,838 in contrast to 100,490 units for an average of $475,942 on Thursday. The average volume and value for the month to date amounts to 80,157 units valued at $358,761 and previously 61,095 units valued at $292,203. In contrast, October closed with average of 74,690 units valued at $362,548 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 4 stocks ended with bids higher than their last selling prices and 3 with lower offers.
At the close of the market, AMG Packaging settled at $3.50, with 17,905 stock units, Caribbean Flavours finished trading at $12, with 243 shares, Cargo Handlers concluded trading with a loss of 20 cents at $10.80, with 2,819 stock units being exchanged, Caribbean Producers traded 5 cents higher at $3.75, with 5,000 units, Derrimon Trading slipped 1 cent to $6.99, with 131,130 shares changing hands. Express Catering ended with a loss of 9 cents at $4.66, trading 27,258 stock units, General Accident settled with a loss of 21 cents at $2.80, with 155,155 shares, Honey Bun closed at $4.60, trading 1,863 shares, Jetcon Corporation closed unchanged at $4.80, with 539,189 shares. Lasco Distributors closed with a loss of $1.14 at $7, with 521,025 shares after the court handed down an interim ruling in the case against Pfizer, Lasco Financial concluded trading at $5, with 502,835 stock units, after trading as high as $5.15, Lasco Manufacturing closed 10 cents higher at $4.50, with 22,372 units, Main Event ended trading with a loss of 10 cents at $5.50, with 14,976 shares. Paramount Trading traded 1 cent higher at $3, with 15,325 units and Stationery and Office finished trading 15 cents higher at $5, with 26,804 stock units.
Prices of securities trading for the day are those at which the last trade took place.

Lasco Distributors drop to $7

Lasco Distributors shares dropped to $7 with 257,123 units trading after the courts handed partial judgement in its case for damages against Pfizer resulting from an injunction from selling the drug Salts of Las Amlodipine in 2005.
Lasco’s claimed US$300 million but the court is saying that the amount is too high based on the evidence presented.
In an interview with Lascelles Chin in 2014, he confirmed that the amount was sales estimated to be lost. In such cases the amount to be claimed would be loss of profits. From all indications, the loss is unlikely to be more than 50 percent of this amount. Based on the exchange rate of J$59.06 used to compute the inventory losses from disposal of the drug for Medimpex, the loss is likely to be priced using this rate with interest to be computed at the local interest rates.

Juniors resume rally

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Trading picked up on the Junior Market on Thursday with almost three times the levels on Wednesday as 18 securities changed hands, resulting in an exchange of 1,808,817 units valued at $8,566,954.
A total of 23 securities traded on Wednesday, accounting 696,098 units valued at $3,413,352. At the close of market activities, the prices of 5 securities advanced, 7 declined and 6 remained unchanged, leading to the Junior Market Index advancing 19.87 points, to close at 3,228.85.
Trading ended with an average of 100,490 units for an average of $475,942 in contrast to 30,265 units for an average of $148,407 on Wednesday. The average volume and value for the month to date amounts to 61,095 units valued at $292,202. In contrast, October closed with an average of 74,690 units valued at $362,548 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice| bid-offer indicator reading shows 2 stocks ended with bids higher than their last selling prices and 5 with lower offers.
At the close of the market, Blue Power concluded trading at $45, with 1,000 units, CAC 2000 settled 45 cents higher at $6.95, with 1,103 shares, Caribbean Flavours traded 10 cents higher at $12, with 3,205 shares, Caribbean Producers finished trading with a loss of 9 cents at $3.70, with 27,500 units, Express Catering traded 25 cents higher at $4.75, with 18,300 stock units. General Accident settled with a loss of 10 cents at $3.01, with 7,324 shares, Honey Bun finished with a loss of 30 cents at $4.60, with 500 shares, Jamaican Teas ended trading at $4.10, with 25,971 units, Jetcon Corporation ended with a loss of 4 cents at $4.80, with 159,841 shares. Knutsford Express ended trading at $14.80, with 4,226 shares, Caribbean Cream finished at $5.50, with 20,000 shares, Lasco Distributors settled 13 cents higher at $8.14, with 299,753 shares, Lasco Financial finished at $5, with 145,831 stock units. Lasco Manufacturing finished 1 cent higher at $4.40, with 150,582 units, Medical Disposables settled with a loss of 15 cents at $5.65, with 2,784 shares, Main Event finished at $5.60, with 82,039 shares, Paramount Trading finished trading with a loss of 1 cent to close at $2.99, with 684,249 units and Stationery and Office settled with a loss of 45 cents at $4.85, with 174,609 stock units.
Prices of securities trading for the day are those at which the last trade took place.

Wisynco Group IPO is imminent

NCB Capital Markets Manager, Origination and Structuring Stanley Thompson (left) exchanges laughs with Wisynco Group Chairman William Mahfood during a signing of the IPO agreement. Sharing in the moment, too, are Wisynco Chief Executive Officer Andrew Mahfood and PriceWaterhouseCoopers Director Fiona Hyman

Wisynco Group today announced its intention to offer shares in the company by way of an initial public offering (IPO), confirming IC Insider.com report yesterday.
Information gleaned is that the draft prospectus is being vetted by the Jamaica Stock Exchange, the Financial Securities Commission and the Company Office of Jamaica with the IPO expected to come to market before the end of this year and could happen in November.
Founded in 1965 by the Mahfood family, West Indies Synthetic Company (WISYNCO) began manufacturing ‘Iron Man’ water boots from a 6,000 square foot factory in Twickenham Park, St. Catherine. The company now ”owns and manufactures a portfolio of category-leading beverage brands such as WATA and its extension of cranberry flavoured-WATA, BOOM Energy Drink and BIGGA Soft Drink. In addition to its owned brands, Wisynco is the exclusive local bottler for the Coca-Cola Company, as well as third-party beverage brands such as SqueezZ and Hawaiian Punch also distributing for global giants such as Red Bull, Tru Juice, Freshhh, Kellogg’s, General Mills, Nestlé and others.
A rapidly-growing company, Wisynco has increased sales significantly in recent years moving from JMD 12.6 billion in 2013 to $21.2 billion in 2017. Over the last five years the company’s year-to-year sales growth has ranged between 9 – 21% with a compound annual growth Rate (CAGR) of 11.06% over the same period. The business has a strong gross profit margins, averaging approximately 36% since 2012.
Wisynco’s revenues are just under the $22.8 billion generated by Lasco Manufacturing and Distributor combined. With the above profit margin, gross profit would be $7.5 billion. The two Lasco companies have administrative, selling and distribution cost of $4 billion to March this year. IC Insider.com puts the cost for Wisynco at $4.5 billion per annum which would result in a pretax profit in the order of $3 million and after tax around $2.5 billion. If the company came to market around the mid-range of PE of 12, this would value it at $30 billion. An issue of 20 percent in the IPO, would target inflows be around $6 billion, but IC Insider.com gathers that a vastly smaller sum is being targeted to be raised by the company but some existing shareholders may seek to divest some of their shares.
According to William Mahfood, Chairman of the Wisynco Group, “the IPO will allow us to share the growth and

Wata produced by Wisynco

success of our business with a wide cross section of our customers and employees, especially following on the outpouring of wishes and support after the fire last year”
With over 350,000 square feet of warehouse, 110,000 square feet of factory space the company has over 700 sales-related full time employees.
We are a proud Jamaican company with a deeply rooted commitment to the country’s development.” Mahfood said. “Our stated mission is to improve the lives of our people which extends to all stakeholders –team members, customers, partners and now with the planned IPO to fellow Jamaicans alike,” Mahfood said.
NCB Capital Markets has been engaged as arranger and broker for the transaction with PricewaterhouseCoopers acting as financial advisors to the company.

More business for Cable & Wireless

Jamaica’s Cable & Wireless seems to be making head ways with continued growth in some segment of the business but saw a small fall in their mobile customer base from June to September.
According to data provided by Liberty Global quarterly report, their Jamaican operations saw fixed lines rose 1,300 to 262,500 in September than at the end of June, internet grew by 5,500 customers to 153,700, Telephony subscribers moved by 10,400 to 206,600 customers but mobile customers fell 3,400 to 930,500.
What has not been mentioned, is that the local company introduced a series of rate increases starting in August 16th as their customers started paying sharp increases for calling to most overseas destinations, with calls to the United States, United Kingdom, China, India and Spain by up to fifty percent. Customers with the FamUltra, Post-Paid plan, will pay up to 50 percent more. Other affected packages will see increases of up to a third of their current charge prior to the increase. Subsequently, the company implemented increases of 6 to 10 percent on some landline services effective October local rates moved from 99 cents to $1.05 6 perform Call to Digicel line moved from $2.40 to $2.55 and other local operators fixed lines USS Canada and UK landlines moved from $10 to $11.
Cable & Wireless rose 4 cents to $1.07 on the Jamaica Stock Exchange on Wednesday.

Profit rise and fall at Mayberry

Mayberry crossed 40m C&W shares.

Profit at Mayberry Investments climbed 27 percent to $62 million, after tax for the quarter to September this year, up from $49 million in 2016 with earnings per share of just 5 cents. For the nine months to September, profit dropped to $66 million from $320 million in 2016.
While the profit performance for the year to date is mixed, the investment banker focus is the more robust comprehensive income, than the traditional profit outcome, but total comprehensive income slipped 22 percent, to $300 million, from $385 million, for the September quarter of 2016, due to a decline in the prices of some stocks held. Not factored into comprehensive income is the increased value of associated company share prices.
Net interest income climbed 28 percent to $30 million. Fees and commissions jumped 168 percent to $113 million for the quarter, compared to $42 million for the corresponding quarter in 2016. Fee income grew by increased transactions within the quarter and from Initial Public Offering whilst the increase in Net Interest Income was due to lower cost of funds. Dividend income declined 17 percent to $29 million, a reduction of $6 million compared to the similar period in 2016.

Gary Peart, Chief Executive of Mayberry Investments.

Net trading Gains fell to $68 million from $117 million for the corresponding period in 2016, a reduction of $49 million or 42 percent, due to decreased trading volumes for the quarter.
Net foreign exchange gains fell sharply to a mere $4 million, down from $58 million in 2016. Unrealized gains on investment revaluation amounted to $11 million or 37.6 percent less than the comparative period in 2016.

Operating expenses decreased by $34 million or 12.28 percent when compared to the corresponding quarter in 2016, with staff cost falling $21 million and investment impairment fell $29 million to zero. Profits from associates, increased $34 million or 199 percent, over the same quarter in 2016
Results for the nine months for 2017 is not as robust as in 2016. Net interest income is down from $135 million to only $52 million as interest cost rose by $68 million and income fell. Fees and commission income rose sharply from $142 million to $253 million, net trading gains fell from $385 million to $152 million and foreign exchange trading gains fell from $179 million to $57 million and unrealized investment gains fell to $44 million from $199 million.

The final quarter of the year is off to a robust start with a number of stocks Mayberry holds climbing these include NCB Financial, Caribbean Cement Cable & wireless to name a few. Longer term the company’s equity portfolio should rise sharply as all indicators point to a possible 60 percent rise in value of main market stocks over the next year.
Mayberry ended the quarter with total assets of $22 billion and shareholders’ equity of $7.9 billion, up from $7.24 billion at the end of 2016. Net book value stands at $6.54. The company’s stock closed trading on the Jamaica Stock Exchange at $4.30, on Wednesday.

Junior Market suffers modest fall

Bulls pushing Jamaican stocks.

Trading fell sharply on the Junior Market of the Jamaica Stock Exchange on Wednesday compared to Tuesday with 23 securities changing hands, resulting in an exchange of only 696,098 units valued at $3,413,352.
In contrast on Tuesday 1,359,763 units valued at $7,878,297 from just 17 securities trading. At the close of market activities on Wednesday, the prices of 7 securities advanced, 7 declined and 9 remained unchanged. After 12 consecutive days of advances the Junior Market Index declined 15.46 points to close at 3,208.98.
Trading ended with an average of 30,265 units for an average of $148,407 in contrast to 79,986 units for an average of $463,429 on Tuesday. In contrast, October closed with average of 74,690 units valued at $362,548 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows just 3 stocks with the bid higher than their last selling price and 1 with a lower offer.
At the close of the market, AMG Packaging ended at $3.50, with 1,500 stock units trading, CAC 2000 traded with a loss of 45 cents at $6.50, with 2,130 shares, Caribbean Flavours ended trading 90 cents higher at $11.90, with 5,365 shares, Cargo Handlers finished trading with a loss of 9 cents at $11, with 5,515 stock units, Caribbean Producers closed at $3.79, with 5,419 units. C2W Music finished at $0.42, with 2,500 stock units, Express Catering ended with a loss of 43 cents at $4.50, with 26,731 stock units, Eppley finished at $11.60, with 2,691 ordinary shares, General Accident traded at $3.11, with 79,509 units, Honey Bun finished at $4.90, with 2,400 shares. Iron Rock finished trading 4 cents higher at $3.25, with 19,247 shares Jamaican Teas concluded trading at $4.10, with 3,550 units, Jetcon Corporation closed 4 cents higher at $4.84, with 64,982 shares, Knutsford Express settled at $14.80, with 2,350 shares, KLE Group concluded trading with a loss of 30 cents at $2.50, with 121,100 units. Caribbean Cream finished trading with a loss of 30 cents at $5.50, with 9,632 shares, Lasco Distributors settled 41 cents higher at $8.01, with 141,702 shares, Lasco Financial finished trading 50 cents higher at $5, with 154,030 stock units, Lasco Manufacturing finished trading with a loss of 6 cents at $4.39, with 40,545 units. Medical Disposables ended trading 5 cents higher at $5.80, with 3,000 shares and tTech closed 4 cents higher at $7.09, with 1,100 shares trading. In the junior market preference segment, Eppley 9.5% traded 200 units at $7.20 after falling 5 cents and Eppley 10% ended trading at $6, with 900 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.

Junior Market climbs 55 points

Lasco Distribuor is cliimbing in anticipation of the court judgement due on Friday on the amount apayable by Pfizer

The Junior Market jumped 55.18 points on Tuesday to close higher for the 12th consecutive day leading the market index to close at 3,224.44 with a gain of 24.3 percent for the year to date.
Trading on the Junior Market of the Jamaica Stock Exchange ended trading on Tuesday with 17 securities changing hands, down from 19 on Monday, resulting in an exchange of 1,359,763 units valued at $7,878,297 compared to 974,360 units valued at $6,318,914 on Monday. At the close of market activities, the prices of 6 securities advanced, 4 declined and 7 remained unchanged.
Trading ended with an average of 79,986 units for an average of $463,429 in contrast to 51,282 units for an average of $332,574 on Monday. The average volume and value for the month to date amounts to 74,690 units valued at $362,548 and 74,450 units valued at $357,987 previously. In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows just 1 stock with the bid higher than their last selling price and 5 with lower offers.
At the close of the market, CAC 2000 concluded trading at $6.95, with 1,377 shares, Caribbean Producers concluded trading 9 cents higher at $3.79, with 11,295 stock units, Derrimon Trading ended trading at $7, with 2,755 units, Express Catering fell 1 cent to $4.93, with 5,000 shares trading, General Accident settled with a loss of 9 cents at $3.11, with 23,000 shares. Honey Bun ended trading 900 stock units at $4.90, Jamaican Teas traded 4,000 shares at $4.10, Jetcon Corporation closed 12 cents higher at $4.80, with 43,613 units, Knutsford Express ended at $14.80, with 6,670 stock units changing hands. Caribbean Cream settled at $5.80, with 143,951 shares, Lasco Distributors traded 40 cents higher at $7.60, with 402,523 units, Lasco Financial traded 10 cents higher at $4.50, with 184,129 shares, Lasco Manufacturing concluded trading 25 cents higher at $4.45, with 404,812 stock units. Main Event traded 58 cents higher at $5.60, with 92,886 units, Paramount Trading traded 3,452 shares at $3, Stationery and Office closed with a loss of 6 cents at $5.30, with 14,649 shares and tTech settled with a loss of 45 cents at $7.05, with 14,751 units.
Prices of securities trading for the day are those at which the last trade took place.

13 stocks fall to push JSE indices down

Trading on the Main and US dollar markets of the Jamaica Stock Exchange finished on Tuesday with 26 securities changing hands, 7 advanced, 13 declined and 6 traded firm as the main market indices dropped.
The market suffered declines of a dollar or more in Grace Kennedy, NCB Financial, PanJam Investment, Sagicor Group, Scotia Group and Seprod.
The JSE All Jamaican Composite Index declined by 2,137.38 points to close at 321,469.52 and is up 54 percent for 2017 to date. The JSE Index declined by 1,947.39 points to close at 292,895.09 and is up 53 percent for the year to date and the US dollar index rose 2.14 points to 185.27, up 12.6 percent for the year so far.
Trading ended with 7,565,517 units valued at $85,572,923 compared to 1,993,979 units valued at $25,589,860 on Monday in the main market. Three securities traded in the US dollar market accounting for 437,702 units for $115,825. The trades brought the total value of trading in both markets to $100,282,636.
The average of 328,936 units changed hands for an average of $3,720,562, in contrast to 99,699 units for an average of $1,279,493 on Monday. The average volume and value for the month to date amounts to 1,185,251 units valued at $16,528,582 and 1,228,254 units valued at $17,171,780, previously. In contrast, September closed with average of $283,480 units at $3,630,990 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading for the main and US dollar markets shows 11 stocks ended with bids higher than their last selling prices and 3 with lower offers.