Mayberry Investments is one of the listed companies in which there are regular trades done by insiders, the period since August into September have a number of moderate trades. Mayberry Investments has traded heavily in LASCO Financial Services shares recently to top up their holdings.
A connected party of Mayberry Investments purchased 15,766 shares on September 2, 10,500 shares on September 1. A related party purchased 13,289 shares on August 31, while on August 30. Directors trading in the company’s stocks include a purchase of 60,000 shares and sale of 10,000 shares on August 3 and purchase of 2,000 shares on August 15, 37,300 shares on August 10 and 73,539 shares on August 10-18. A sale of 19,496 shares on August 22, 11,000 shares on August 11, 10,000 shares on August 10, while another 21,000 shares were sold on August 10-11.
Mayberry Investments was the main buyer of LASCO Financial Services shares recently in an effort to up their holdings to maintain their 20 percent holding in light of an increase in the issued shares in connection with the staff option plan an informed source told IC Insider. The inside trades resulted from a connected party purchasing 552,729 of the company’s shares on September 2, while on August 24, a connected party sold 37,480 shares and a connected party purchased 701,234 shares.
A connected party of Caribbean Producers sold 54,074 CPJ shares on September 7 and on September 1 connected parties sold a combined total of 3,245,289 shares.
An Officer of Trinidad Cement purchased through the TCL’s Employee Share Ownership Plan 107,715 TCL shares on September 6 and a related party sold 15,000 TCL shares over the period August 16-18.
A National Commercial Bank, related parties purchased 27,664 shares on August 30. Parties connected with Blue Power Group purchased 48,421 shares during the period June 30 to August 18 and sold 2,000 shares on August 18.
A Supreme Ventures connected party sold 8,000,000 shares and another sold 1,223,602 shares on August 3 and August 16, respectively. A connected party sold 838,345 shares and a member of the Senior Management purchased 12,465 shares on September 8.
A Director has sold 50,000 Honey Bun shares on August 22 and on August 12 a director sold 10,050 shares and an Eppley connected party sold 121,667 shares in the company on August 12.
Mayberry active in insider trades
The top 5 major & junior stocks
Barita is the top IC Insider’s stock for growth over the next 12 months in the main market.
IC Insider starts a new feature that highlights the top 5 stocks IC Insider’s selection for gains over the next several months based on the latest earnings forecast for the current fiscal year for each company.Investors should bear in mind that companies with September year ends will have a head start on companies with later ending period as the earlier year end will result in two sets of results between now and early 2017, thus giving investors an early look into what 2017 earnings will look like. The stocks in the list may surprise many but detailed look at their financials paint a far better picture than the stock prices may currently be telling. These stocks are selling well below the market average and even more so against their potential.
The two stocks at the top of both listing may surprise many, but they should not. In the case of Medical Disposables revenues are growing close to 50 percent increase as new products are added, this growth is expected to boost gross profit at levels that should out pace increase in cost. Barita Investments is undergoing change and this has driven up fee income sharply which is replacing interest income formerly generated form the repo business. Barita has built up a large pool of unrealized gain on investments which can be released to profit for 2016.The list is likely to be updated on a weekly basis which is likely to see stocks being added or removed on an ongoing basis.
Juniors dominate early trading
The junior enjoyed quite brisk trading on Jamaica Stock Exchange early Thursday driving the junior market index up by 44.65 points with 4 junior market companies having more than 100,000 units trading, with Lasco Manufacturing having 854,813 units changing hands. C2W music saw the price recovering to 20 cents from 17 cents with 210,000 shares trading.
Cable & Wireless was the only main market stock to see high volume as the stock had 3,153,049 units changing hands at 95 cents while Jamaica Stock Exchange traded 61,600 units at $28.50 and junior market Cargo Handlers hit a new high with 1,500 shares trading at $86.
Other trades of more than 100,000 units are, General Accident Insurance with 104,311 units at $2.30 and Lasco Distributors 485,970 shares at $7. Caribbean Creams ended up with 66,230 unit at $8.
At 10:45 am 24 securities traded, resulting in a volume of 5,070,164 shares carrying a value of $14,465,644 changing hands compared to 1,182,572 units with a value of $29,395,598 on Wednesday. The average number of shares traded amounts to 211,257 units compared to 51,416 units on Wednesday. The number of stocks falling are 6 while the prices of 8 securities rose as the market continues to consolidate with no new major developments or news to move prices in one direction or the other.
The all Jamaica Composite Index slipped 41.00 points to 176,953.05 the Jamaica Stock Exchange Market Indexdeclined 36.66 points to 159,269.26, the Jamaica Stock Exchange combined index climbed 424.13 points to close at 171,050.98 thanks to a sharp rise in the junior market and the junior market index climbed 44.64 points to 2,272.58.
JSE drops in early session – Friday
In early morning trading on the 
Jamaica Stock Exchange main indices lost ground as Carreras traded 1,047,855 units and fell 51 cents to $65 and Scotia Group gained 40 cents with 202,938 units changing hands at $30.40 as the leading trades.
At 10:30 am 25 securities traded, resulting in a volume of 1,482,024 shares changing hands. The average number of shares traded amounts to 59,281 units compared to 83,033 units on Thursday. The number of stocks falling so far amounts to 9 while the prices of 7 securities rose as the market continues to consolidate with no new major developments or news to move prices in one direction or the other.
Trading in the junior market was low with only 5 securities changing hands with less than 50,000 units in all.
The all Jamaica Composite Index dropped 387.45 points to 177,726.97 the Jamaica Stock Exchange Market Index slipped 346.45 points to 159,961.28, the Jamaica Stock Exchange combined index fell 613.90 points to close at 170,460.65 and the junior market index fell 28.51 points to 2,152.50.
Whither local stocks – NCB Capital
The Jamaica Stock market enjoyed a great 2015 with stocks doubling in value, but the performance of the market in 2016, so far, has not been a spectacular as investors take a more cautious approach to the market that was revalued sharply last year, from a very low valuation.
At the end of August the local market had only record about a third of the gains made in 2015. Starting in October last year the market made a meteoritic rise.
Although, the market overall has not grown very much to date, several stocks have done well with the junior market having 15 stocks rising more than 30 percent, including 3 gaining more than 100 percent and one with more than 300 percent. Twelve main market stocks are up more than 30 percent to date.
One brokerage house just released a report on the market and a selection of stocks. Below is an extract of the report on the market. IC Insider is of the view that most of the comments below are on target, a few are off, but does not change the general thrust of what is said to be happening in the market. Comments by the brokerage house on individual stocks have glaring errors in some cases and forecast in others may be way off the mark, as such investors using the report would be well be advised to be cautious about buy or sell decisions based solely on the recommendations.
Honey Bun is one of the stocks recomended by NCBCM
Stocks continued to trend upwards albeit at a much slower pace than last year since the start of the year, the report states. “The Combined, Main Market and All Jamaica Composite Indices have returned 7.9 percent, 5.7 percent and 5.8 percent respectively to August 26, 2016. This, however, represents a slowdown relative to the 28.8 percent, 28.5 percent and 29.1 percent increase recorded last year,” NCB Capital Market advised their clients in their latest investors’ newsletter.
The report went on to say, “Improvement in the outlook for corporate earnings and an increase in investor confidence continue to drive market activity despite the run up in prices. The Junior Market however continues to see robust growth registering a 24.7 percent increase to August 26th relative to 33.1 percent last year.”
“Positive earnings performances in key sectors such as the manufacturing and financial services assisted in renewing investor interest in the equities market. The Food, Beverages & Tobacco segment of the manufacturing sector experienced some expansion, thanks to a rebound in local and international demand for consumer products resulting in growth in both local and export revenues.
Local companies have been focusing extensively on expanding into international markets which provides income diversification and better prospects for growth. Meanwhile, financial companies have been weathering the low interest rate environment well, and have seen some benefit from larger loan portfolios as well as an increase in fees and commission income in light of active revenue diversification strategies. Lower inflation has also assisted in increasing efficiency and improved margins.”
“The stock market should continue to see modest activity helped by improving macroeconomic conditions, low interest rates and the restoration of Junior Market incentives. Of note, with the earnings growth recorded thus far, valuations have remained reasonable, with the average Main Market P/E declining to 9.3X in August from 10.6X in January. The Junior Market P/E also decreased to 13.7X from 18.7X earlier this year. Shares of financial and manufacturing companies are expected to be the star performers.
Caribbean Cream is one of NCBCM’s recommendations
The main risk to market activity however is an unfavourable turn in the business environment at the end of the IMF agreement next year. In addition, recent tax measures implemented could put upward pressure on inflation and impede the margin improvement being witnessed by companies.”
Strategy “In terms of identifying opportunities, we recommend that investors focus on stocks of companies with diversified revenue streams by type, geography and currency. Investors with the appropriate risk appetite should also take a closer look at some Junior Market stocks given that the potential for growth is greater than their main market counterparts. Companies such as Honey Bun and KREMI are expected to continue to do well. Another recommended strategy is for investors to take a more active approach to stock market investing by taking gains on stocks that are trading above their fair value estimates, with a view to re-enter at more favourable prices in the near term.”
Flat results, increased profit at tTech
tTech closed at $4.50 on Thursday.
Profit after tax, is up to $16 million from $12.4 million for the six months and $9.2 million versus $7.6 million in 2015, but for tax expense saved in 2016, profit for the year to date would be flat. Profit for 2015 was subject to $1.4 million in taxes and for the six months, $3 million. A sharp rise in operating expenses due to a 50 percent rise in staffing, pushed the spend by 54 percent to $50 million for the quarter and 36.4 percent to $91 million for the half year.
Earnings per share ended at 9 cents for the quarter and 15 cents for the half year and should end up around the 35 to 40 cents range for the full year based on the results to date. The strong revenue gain is a signal for growth going forward for the company.
Management stated that “the increase in revenue was due to growth in all areas of our services including the Consulting Division. Increase in expenses was driven primarily by increases in our workforce to increase capacity to meet the growth in demand. At June 30, 2016 the company had 31 full-time employees compared to 21 at the same date in 2015.”
From Left: Mr. Hugh Allen, Resolution Manager and Executive Director; Mrs. Natalya Petrekin, Service Desk
opportunities for automation will be explored to facilitate increased efficiencies and improved service delivery.”
The company ended with cash and investments amounting to $115 million at June, up from $67 million at the end of December last year with net current assets ending at $130 million with payables at $34 million, while shareholders’ equity is at $146 million.
The stock traded as high as $5 on the JSE junior market today but fell back before the close to $4.50 for a PE of just over 11 times projected 2016 earnings. For investors will the strong growth continue and deliver increasing profit for them to buy and hold at these prices for long term gains.
Cargo Handlers’ share goodies
Cargo Handlers to split stock 10 for 1.
The shares now issued amounts to 37,465,830 units but the stock trades infrequently as very few are in the hands of the general public. The stock split is expected to enhance liquidity of the stock.
The stock last traded at $56 on the junior market of the Jamaica Stock Exchange having shot up from $46 after the announcement was made that the directors were meeting to recommend a split. There are currently ids to buy the stock between $60 and $64.01 for 10,877 units, the last offer was 919 units on at $66, at the close on Monday.
The directors declared an interim dividend of $1.35 per share to be paid on September 13, with the ex-dividend date set for August 17.
The company enjoyed a buoyant June quarter, with revenues rising 55 percent from $56 million to $87 million and for the nine months by 36 percent to $245 million from $182 million. Profit before tax rose to $53 million from $29 million in 2015 and after taxation, profit ended at $46 million from $29 million. For the nine months, profit rose from $108 million to $143 million before tax, with the 2016 results ending at $125 million after tax, there were no taxes in 2015.
Management attributes the strong growth in third quarter revenues and profit, to increased activity in the Montego Bay region and increased port activity, flowing from the conversion of the Jamaica Public Service power plant to LNG gas.
Earnings per share for the quarter ended at $1.23 and $3.32 for the nine months. Full year’s earnings should be just under $5 per share but scarcity of the stock is driving the valuation up.
Strong close for JSE stocks on Tuesday
Grace Kennedy hits 52 weeks’ intraday high on Tuesday.
Kingston Wharves moved up by 45 cents to $16 with just 6,514 shares trading. Sagicor Group traded 14,346 units but fell 85 cents to $20.60, Scotia Group jumped 73 cents to $30.90 while 71,417 shares changed hands, Scotia Investments rose by 50 cents to $26.50 but just 4,395 units traded, Sterling fell 49 cents to $12.51 and Supreme Ventures climbed 58 cents to $5.10.In the overall market the prices of 18 securities gained out of a total of 40 securities that traded, with 11 declining, including 5 stocks, rising and 1 falling from the junior market.
The market closed with an overall volume of 4,024,061 units valued at $45,104,460 changing hands, in all market segments. The junior market accounted for 956,421 units traded, valued at $4,918,989 of all trades.
The JSE Market Index rose 744.87 points to end at 160,727.87, the all Jamaica Composite Index inched up 833.02 points to close at 178,584.28 and the JSE combined index gained 714.49 points, to end at 171,619.66.IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 9 stocks with bids higher than their last selling prices and 1 with a lower offer.
At the end of market activities, Barita Investments gained 25 cents and ended with 9,991 units traded, to close at $3.30, Cable & Wireless traded just 7,500 shares to close at $1.26, Proven Investments ended trading 420,975 units to close at 19.96 US cents and JMMB Group 7.50% preference share traded 1,921,100 units at $1.10.