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.
More business for Cable & Wireless
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. I
n 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.
Appalling corporate action
Monetgo Freeport was previously listed on the Jamaica Stock Exchange but dumb politically appointed directors made a stupid decision to have the company delisted on the basis that it would save money and the assets would be sold off and the company liquidated.
Several years have so far elapsed and the company is yet to be wound up but the more than 1,600 shareholders cannot trade their shares as there is no organized market to do so, thanks to the poor decision made by former board members, but the current board don’t seem to be leading the company any better than the previous one.
The company has $327 million worth of property being held for sale so it will be some time for the winding up to take place. Amounts held on deposit for the purchase of property is $399 million, backed by funds held in escrow. The current board rather than pay more dividend from the excess cash the company holds, is recommending that no payment be made, another poor decision. The funds have not been invested for maximum returns, as they just sit in bank deposits earning under 6 percent interest per annum and now even less with fall in interest rates, being paid on deposits. That makes no sense, when there are other assets that could enhance shareholder’s value.
Freeport should be returned to the Stock Exchange with a new mandate and UDC could cash out their shares by the company buying them back.
The financial statement up to March this year, shows profit of $10.5 million down from $45 million in 2016 with income falling in 2017 to $40 million from $92 million in 2016.
The question to be answered is why would a company that is virtually inactive need to have 10 directors that is another indication of poor management. There seems no need to be more than 6 but the company needs to have management refocus their attention in a different direction than they are current on.
Junior Market climbs 11 days in a row
Bulls at large in down town Kingston
The Junior Market on Monday closed for the 11th consecutive day with unbroken gains leading the market index climbing 25.55 points to close at 3,169.26.
Trading on the Junior Market of the Jamaica Stock Exchange closed on Monday with 19 securities changing hands, resulting in an exchange of 974,360 units valued at $6,318,914 compared to 554,767 units valued at $2,609,944 on Friday. At the close of market activities, the prices of 5 securities advanced, 9 declined and 5 remained unchanged.
Trading ended with an average of 51,282 units for an average of $332,574 in contrast to 26,417 units for an average of $124,283 on Friday. The average volume and value for the month to date amounts to 74,450 units valued at $357,987 and previously, 75,683 units 
valued at $359,339. 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 5 stocks with bids higher than their last selling prices and 3 with lower offers.
At the close of the market, AMG Packaging finished at $3.50, with 14,360 units trading, Blue Power dropped $4 to $45, with 1,780 shares, CAC 2000 lost 5 cents to end at $6.95, with 1,520 units, Cargo Handlers ended trading at $11.09, with 2,824 units changing hands, Caribbean Producers closed with a loss of 1 cent at $3.70, with 900 stock units. Express Catering ended trading 28,000 shares with a gain of 29 cents at $4.94, Prices of securities trading for the day are those at which the last trade took place.
Daily Trading,
Honey Bun concluded trading at $4.90, with 1,000 stock units, Iron Rock closed 1 cent higher at $3.21, while exchanging 5,698 units, Jamaican Teas ended trading at $4.10, with 54,000 shares, Jetcon Corporation traded with a loss of 12 cents at $4.68, as 39,000 stock units were exchanged. Knutsford Express closed with a loss of 19 cents at $14.80, with 5,585 units, Lasco Distributors closed at $7.20, with 629,096 units changing hands, Lasco Financial finished trading 4 cents higher at $4.40, with 29,060 units, Lasco Manufacturing finished trading with a loss of 30 cents at $4.20, with 56,941 units. Main Event ended with a loss of 28 cents at $5.02, with 35,000 shares, Paramount Trading traded 10 cents higher at $3, with 31,990 stock units, Stationery and Office concluded trading with a loss of 11 cents at $5.36, with 18,344 shares, tTech settled with a loss of 10 cents at $7.50, with 10,536 stock units and in the junior market preference segment, Derrimon Trading settled 5 cents higher at $2, with 8,726 units.
Prices of securities trading for the day are those at which the last trade took place.
Knutsford Express revving up
One of Knutsford Express buses.
Jamaica’s intra island transport company, Knutsford Express, is enjoying extraordinary times, with a sharp increase in revenues and profits but the company’s management is not sitting on their laurels as they actively seek areas for future growth and profits.
In the latest quarter to August, revenues jumped a strong 37 percent, to $237 million and spawned a 57 percent rise in profit of $57 million. Of interest is the continued growth, on top of previous year’s increases. For while revenues in the August 2016 quarter rose 21 percent with flat profit, by the second quarter revenues climbed 37 percent over the 2015 levels, to $176 million and profit rose 19 percent to $30 million.
Revenues rose 33 percent for the third quarter to $203 million and profit almost doubled to $53.7 million, thanks partially to an $8.5 million gain on sale of fixed assets. Excluding the one off gain, profit would be up 63 percent for the quarter. Expenses increased 25 percent, quite a bit slower than revenues, helping in the growth in profit. Knutsford, unfortunately does not break out direct operating expenses from administration cost but data shows that certain direct cost not counting labour cost, to be around a third of revenues. Increased revenues would have added close to 50 percent of the increase in overall cost.
Knutsford’s New Kingston depot
By the end of 2017 fiscal year revenues climbed 29 percent over 2016 and profit by 28 percent, just below the 35 percent increase for the nine months to February. Operating revenues for the last quarter of the just concluded fiscal year was in line with the amount generated in the third quarter.
When the company went public, it had 54 employees in 2013, up from 47 in the previous year, climbing to 100 by May 2016, and remaining there to May this year, resulting in some economies of scale.
IC Insider.com is forecasting revenues to pass the $1 billion mark for the first time, by the end of the fiscal year with profits ended up around $280 million or 50 cents per share, with the next fiscal year’s earnings hitting 90 cents per share. The stock trades on the Junior Market of the Jamaica Stock Exchange around $15 with a PE ratio of 27 and 16 times 2019 earnings versus 14 for the market currently.
Knutsford generated $73 million in cash flow for the quarter and expended $69 million on the acquisition of fixed assets to end up with $85 million in cash and bank balances and investments $92 million. The company owes $55 million in loans and boast net worth of $539 million.
Junior Market jumps another 37.73 points
The Junior Market on Friday closed for the 10th consecutive day with unbroken gains leading the market index climbing 37.73 points to close at 3,143.71 with 21 securities changing hands compared to 18 on Thursday.
At the close of market activities, the prices of 8 securities advanced, 10 declined and 3 remained unchanged and 554,767 units valued at $2,609,944 traded compared to 2,819,581 units valued at $17,224,051 on Thursday.
Trading ended with an average of 26,417 units for an average of $124,283 in contrast to 156,643 units for an average of $956,892 on Thursday. 
The average volume and value for the month to date amounts to 75,683 units valued at $359,339 and previously, 78,762 units valued at $374,030. 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 3 stocks with bids higher than their last selling prices and 5 with lower offers.
At the close of the market, Access Financial gained 50 cents to settle at $42.50, with 2,800 shares, AMG Packaging finished trading 1 cent higher at $3.50, with 5,564 units, Blue Power jumped $4 to $49, with 387 shares changing hands, C2W Music finished with a loss of 7 cents at 42 cents, with 350 stock units, Cargo Handlers rose 29 cents to $11.09, with 1,015 units, Caribbean Cream concluded trading with a loss of 10 cents at $5.80, with 3,332 stock units. 
Caribbean Producers traded 1 cent higher at $3.71, with 69,888 units being traded. Derrimon Trading ended at $7 with 2,000 units, Express Catering finished trading with a loss of 30 cents at $4.65, with 56,588 stock units trading, General Accident ended trading 10 cents higher at $3.20, with 16,450 units, Honey Bun closed with a loss of 10 cents at $4.90, with 4,891 stock units changing hands. ISP Finance dropped $2.30 to $16.20, with 10,000 units, Jamaican Teas concluded trading at $4.10, with 5,100 shares, Jetcon Corporation finished with a loss of 5 cents at $4.80, with 3,154 shares trading, Lasco Distributors closed with a loss of 24 cents at $7.20, with 11,850 units, Lasco Financial ended with a loss of 4 cents at $4.36, with 51,742 stock units. Lasco Manufacturing closed at $4.50, with 14,800 units, Main Event traded 20 cents higher at $5.30, with 166,999 shares, Medical Disposables traded 25 cents higher at $5.75, with 1,471 stock units, Paramount Trading settled with a loss of 10 cents at $2.90, with 124,400 units being exchanged and Stationery and Office settled with a loss of 3 cents at $5.47, with 1,986 units.
Prices of securities trading for the day are those at which the last trade took place.
Profit surges 137% at Express Catering
Starbucks one of the brands Express Catering will sell at the Montego Bay Airport.
Recent Junior Market listed Express Catering, enjoyed a big surge in profit of 137 percent to US$834,447 for the quarter to August, this year.
With management fees removed and revenues jumping 9.7 percent, in line with increased visitor arrivals to Jamaica, Express Catering, operators of a series of restaurants within the Montego Bay’s Sangster International Airport good performance, came from revenues of US$3.8 million for the quarter.
The removal of management fees saw administrative and other expenses falling from US$2 million to US$1.7 million, but gross profit rose by US$157,000 as cost of sales grew faster than the top line, at 21 percent thus reducing profit margin. Management in their commentary on the results states that “they have since raised prices to compensate for increased input cost.” Express reported earnings per share of 0.051 US cents. IC Insider.com places full year’s earnings at 26 Jamaican cents and that for 2019 at 40 Jamaican cents.
“The addition of the Starbucks Coffee to the offerings in the airport is expected to be completed during the third quarter. Work as already commenced on this initiative and will see 3 locations within the Airport,” the directors’ report stated.
The balance sheet shows US$4.56 million due from related party an increase from $3.64 million at the end of May and cash funds at $497,000.
The stock currently trades at a PE ratio of 19 with the price at $4.95 against the market average of 13.6.