Portland JSX list gains $1.51

The Jamaica Stock Exchange suffered another morning of slippage on Wednesday. The latest IPO, Portland JSX was listed at the start of the session after a successful public offering that saw the offer being oversubscribed. The stock opened with a bid to buy 30,000 shares at $12, compared to the IPO price of $11 and later traded 666 units up to $12.51.
JSE intra 06-07-16Caribbean Producers continues to see investors react negatively to news from the company of write down of inventories and restructuring cost, that will hit profits for the company’s fourth quarter, by cutting the price from the $3.90 it fell to on Tuesday, down to $3. Elsewhere Scotia Group traded 107,887 units at $30.51, AMG Packaging fell from $13.10 to $12.41 with 5,854 shares trading while Carib Cement crashed to $22.28 from $25 with 6,750 shares.
The session had low volumes trading overall, after 75 minutes of the market’s opening, resulting in 18 securities changing hands and accounting for a volume of 309,785 shares as 6 stocks gained and 6 declined. The average number of shares traded amounts to 17,210 units, compared to an average of 24,178 units on Tuesday.
The all Jamaica Composite Index dropped 607.16 points to 177,956.81, the Jamaica Stock Exchange Market Index fell 542.91 points to 160,166.80, the Jamaica Stock Exchange combined index declined by 657.15 to close at 170,886.98 points andthe junior market index slipped 14.97 points to 2,175.48.

CAC profit edges higher

CAC logo 12-15Revenues climbed just 5 percent to $252 million and after tax profit rose 16 percent to $21.8 million for junior market listed CAC 2000, but pretax profit was slightly lower than for 2015 with $23.6 million reported for 2016 April quarter versus $24.7 million for the similar period in 2015.
For the six months to April, revenues climbed 16 percent to $481 million and after tax profit rose 20 percent to $48.5 million from $40.6 million in 2015. Gross profit rose 19.7 percent to $182 million for the six months and 8.9 percent to $96 million for the second quarter.
Selling and distribution cost fell from $10 million in the 2015 second quarter to $6 million in 2016 and for the half year, from $20 million to $14 million. Administrative cost rose from $46 million for the second quarter to $63 million and for the six months from $83 million to $114 million. The increase is “due to our investment in additional resources to support the continued growth in business,” Steven Marston, the chairman of the company stated.
The increased cost, pushed profit before other revenues to $27 million for the 2016 quarter from $34 million in 2015 and for the year to date, from $50 million to $54 million.
Earnings per share ends at 40 cents for the half year and 18 cents for the quarter. The stock trades on the Jamaica Stock Exchange junior market at $6.70 at a PE around 8.7 times this year’s earnings, putting it at 21 out of the 29 junior market listings.
At the close of April, CAC had cash of $188 million, total current assets of $771 million and current liabilities of $382 million. Borrowed funds stood at $156 million with equity capital at $382 million.

Dolphin Cove Buy Rated again

dolphinsDolphin Cove now placed on the IC Insider’s Buy Rated list. The company is projected by IC Insider to earn $1.50 per share for 2016 after tax or 44 percent up on the earnings per share for of $1.04 for 2015. If the company achieves the above earnings the PE ratio would be 7.5 times 2016 estimated earnings, versus 8 for the average of the junior market.
As the year roles on the price is likely to increase, based on valuation of 14 times 2015 earnings, placed on the junior market, suggesting the possibility of the price doubling within a year. In addition the company pays regular dividends and this will add to returns investors will get from this stock.
First quarter results to March hit a profit after tax of $185 million for a strong increase of 39 percent above the corresponding period in 2015. The improved profit came from an increase of 11 percent in revenues to $520 million, due primarily to a 35 percent growth in ancillary revenue. Gross profit increased by 14 percent as a result of the growth in revenue and a decline in direct cost of sales while increase in operating expenses was up 5 percent over the 2015 cost to reach $297 million. There was new operating and administrative costs which the directors’ state contributed to the improved service delivery.

Birds at Dolphin Cove property in Ocho Rios

Birds at Dolphin Cove property in Ocho Rios

“During the quarter the Group made capital expenditures of $130 million to improve the facilities of the Parks which is expected to have a positive impact on our performance going forward. A dividend of 20 cents per share was declared in April and will be paid in second quarter of 2016. The Group was in a strong financial position as at the end of the quarter with improvements in working capital and net assets. We continue to expand our marketing efforts in anticipation of the additional rooms that are expected to come on stream during 2016 and there is the prospects of increased local sales with the recent opening of the Caymanas to Ocho Rios toll road which will significantly reduce the travelling time from Kingston. We also anticipate that our new enhanced website will continue to generate growth in our internet bookings and by extension our revenue. The financial resources of the group remain strong and this will facilitate our plans to expand our operations locally and in other Caribbean countries” the directors stated in their report to shareholders.
The company ended with cash and investments of $385 million, borrowings of $210 million and equity of $2.9 billion.
The stock last traded on the junior market of the Jamaica Stock Exchange at $11.10, but has a bid to buy at $11.25, with offers starting at $12.

Jetcon listing slated for Thursday

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Jetcon 03-16Jetcon Corporation coming on the heels of a successful issue of shares to the public that opened on Monday March 14, in respect of 44,500,000 ordinary shares is expected to start trading on Thursday, March 24 with the listing committee meeting on Tuesday to consider and approve the listing.
The offer closed shortly after opening on Monday after it was oversubscribed. A total of 256 applications covering $113 million were received. Applications of all reserved shares were fully satisfied while the general public got the first 5,000 Shares applied plus 83.11 percent of the balance. The shares were sold to the public at $2.25 each. the closure left some investors out in the cold as they missed the early closing time of the offer.
Listing on the junior market will result in no corporate taxes being paid for 5 years from the time of listing. Jetcon reported profit of $50.6 million for the 2015 year and enjoyed 45 percent increased revenues for the first two months of 2016 ahead of the similar period in 2015, accordingly, IC Insider rate the stock Buy Rated.

ISP Finance – next junior listing

I$PISP Finance is an unsecure loan company that is seeking to list on the junior market of the Jamaica stock Exchange with the raising just over $97 million from directors staff and the general public.
The company is now offering 48,982,500 ordinary shares to the public of which 45,900,000 are reserved for directors and employees, at $2 per share. Only a small amount, 3 million units will be available for the general public unless the reserved shares are not fully taken up. Opening Date of the offer is March 21, 2016.
ISP started operating in 2007 and has a number of years of profitability but is yet to wipe out accumulated losses. Currently there are 56 million shares issued to the Chief executive Dennis Smith and his wife. In 2015 the company reported audited profit of $30.7 million before tax but benefited from a refund of captive insurance premium of $12.3 million, excluding this, the company made profit of just $6 million. Additionally, salaries cost fell to $62.5 million from $77.6 million. While 2014 showed a loss of $4.5 million before tax after booking insurance premium of $41.7 million, excluding this amount would result in profit of just over $36 million or earnings per share of 65 cents. The earnings based on 2015 results, adjusted for the one off income, would be 10.7 cents and 65 cents for 2014. The PE based on pretax profit would be 18.7 times 2015 earnings and just 3 times 2014 numbers.
In the first four years of operation the Company’s customers were primarily employees from the security services sector. The Company has since expanded its customer base to other private and public sector workers as well as to micro and small entrepreneurs in the manufacturing, services and distribution sectors.
ISP Finance intends to strategically expand its reach geographically to other areas where there is a concentration of employed individuals and business development, including Montego Bay, Ocho Rios, Mandeville, Spanish Town, Portmore and May Pen.
The Company utilizes cash generated by the business and loans from a variety of sources to fund loans to customers. Indebtedness to banks, financial institutions and other lenders amounts to $218 million as of February 11, 2016.
Since commencing business in February 2007, the Company’s Loan portfolio has grown from approximately $2.5 million to $304 million in 2015 before provision for loan losses. Loan loss provision stood at $62 million at the end of 2015 compared with $44.5 million at the end of 2014. Loan loss expense for 2015 amounted to $18.6 or 7.75 percent of net loans and is favorable compared with Access Financial at 8.9 percent. Interest rates on loans ranges from 50 to 65 percent.
Clifton Cameron is an Independent, Non-executive Director and Chairman of the Board. He was a major owner of Manufacturers Merchant Bank that was acquired by Sagicor Bank.
The results for 2015 looks disappointing with just a small profit but results for 2014 when adjusted for the high level of insurance cost looks very promising. The company is involved in high risk business with loan provisioning amounting to 20 percent of overall loan portfolio an increase from 15.7 percent at the end of 2014. Expansion if not managed well can be costly but they will face strong competition in the market with much bigger companies than themselves.
At the end of 2015 equity capital was negative $7 million with accumulated deficit of $12 million, down from a deficit of $39 million at the end of 2014.
ISP is not the last company slated fro the junior market as IC Insider gathers that Key Insurance Company is also set to offer shares to the public to try and make the junior listing before the end of March.

Jetcon revs up for junior market

Jetcon 03-16Jetcon Corporation is heading to the junior market, if their invitation to sell 44.5 million shares up to $2.25 each to the public, is successful. The share offer opens on Monday March 14 and is slated to close a few days later, on the 17th.
Successful completion of the issue, would bring the total number of junior market ordinary share listings, to 27 and the total listings to 31 securities, with Iron Rock having successfully completed their public offering on March 1st.
Jetcon enjoyed strong 49.9 percent growth in revenues of $523 million in 2015 up from $349 million in 2014. Revenues since 2015 continued to grow, increasing by 45 percent. The company recorded profit before tax of $50.6 million in 2015 with a net profit of $40 million.
The offer expects to raise up to $95.66 million for use by the company to fund the cost of listing and for working capital purposes.
Jetcon started operation 1994 to import used cars from Japan for resale in Jamaica.

Major recovery at General Accident

General Accident

General Accident

Profit benefited from improvement in the second half of 2015 at General Accident from a drastic fall off in the first half, to record a small decrease of only 6 percent, hitting $301 million, down from $320 million in 2014, resulting in earnings per share of 29 cents for the year compared to 30 cents in 2014.
In the December quarter, the company reported a huge increase in its net profit of 189 percent to $185.9 million, an increase of $64.4 million.
Gross written premiums grew by 21 percent to $6.1 billion in 2015, from $5 billion in 2014 for the full year and for the last quarter, $664 million versus $555 million in 2014. Net premiums ended at $1.19 billion for the year compared with $1.07 billion in 2014 and for the December quarter, $288 million versus $258 million. Commission and other Income fell to $410 million from $424 million in 2014 and is up in the December quarter, to $137 million from $115 million. Investments income grew marginally to $178 million, from $160 million for the year and to $51.6 million from $43 million in the 2014 quarter.
In 2015, the Company’s claims expense, increased marginally by 3 percent to $699 million versus $679 million in 2014 and for the December 2015 quarter it fell to $108 million from $162 million in the 2014 quarter. Notwithstanding higher claims, underwriting profit grew to $107 million compared to $101 million in 2014 and $129 million in the December quarter versus a mere $12 million in 2014.
Commission expenses grew to $224 million for the year from $183 million and to $88 million for the quarter from $90 million. Management Expenses amounted to $451 million for the year while in 2014 it was $442 million, for the quarter $125 million was incurred and in the 2014 quarter $117 million.
Total shareholders’ equity stood at $1.77 billion up from $1.57 billion in 2014. The return on average equity based on the reported profit is 18 percent but including unrealised investments gains its 22 percent.
The stock traded on the junior market at $2.12 on Thursday at a PE ratio of 7.9 which is one of the lowest within the sector and therefore has room to record gains.

Q1 profit up at Jamaican Teas

Jamaican Teas DoorJamaican Teas quarterly results to December ended with profits after tax of $36.6 million or 22 cents per share, up 33 percent from $27.5 million in 2014. Profit before tax amounted to $42.5 million, is up from 54 percent from $27.5 million to $42.5 million.
The results came from revenues that grew by 22 percent to $387 million, with real estate sales accounting for $40 million and other income of $15 million which includes gain on sale of investments of $7.5 million.
Gross profit margin grew to 20.6 percent from 19.5 percent in 2014. Selling and marketing cost rose to $8.6 million from $7.3 million by 18.7 percent, administrative expenses was up $30 million from $25.5 million by 17.4 percent and finance cost grew by 76 percent to $10.9 million from $6.2 million.
Going forward interest cost should fall due to two factors. The company has a debenture that carries a variable rate tied to treasury bills, with the latter declining the company will see a reduction in the cost additionally the first phase of the real estate development will release cash to pay down bank borrowing.
There are signs that the economy is picking up and that should help in moving local sales at a faster pace than in 2015.
Based on the first quarter earnings, full year results could be in the region of 85 cents per share, but this could be affected by profit from sale of real estate units and depends on any added gains that may be realized from the sale of the $125 million investments portfolio.
At the end of the quarter borrowings were at $370 million with equity at $79s million. The stock which is quoted on the Jamaica Stock Exchange junior market last traded at $5.

Margaritaville Turks profit up 86%

Margaritaville+cargoThe Turks and Caicos based Margaritaville Turks, a Jamaica Stock Exchange US dollar market listed company, reported a big 86 percent jump in profits of US$518,134 in the six months to November last year versus $278,508 in the prior year.
The improved profit came from revenues that climbed 11 percent to $3.376 million. For the quarter ending November, the company reported improved results with net profit of $247,253, a whopping increase of 728 percent over the profit of $33,611 for the same quarter in 2014. Sales revenue for the quarter rose a very strong 24.7 percent to $1.65 million, compared to $1.32 million in 2014. Gross profit grew by 25 percent, slightly faster than sales revenue and for the six months by 10.7 percent.
Administrative expenses rose by 5.3 percent to hit $1.68 million for the six months and for the quarter to November to $829,364 for an increase of 8.7 percent. Management fees fell from $212,614 in 204 for the six months to $125,000 and for the quarter from $92,628 to $62,500. Depreciation charge was essentially flat at $123,748 for the six months and $62,444 for the quarter.
The company generated earnings per share of 0.77 US cents to November and 0.37 US cents for the quarter. IC Insider expects earnings for the full year to May to be around 2 US cents per share. This puts the PE of the stock at a low 5 times current year’s earnings.
Cash flows from operating activities amounted to $642,173 for six months versus $399,202 in 2014 before increase in related party receivables of $1.24 million and $685,495 in 2014 and ended with cash of $24,977. The equity capital stood at of $4.3 million and the company had no borrowed funds.

Near 20% tTech shareholders

TtechtTEch’s the technology company that offered shares to the public in December has released details of the successful offer of 25,652,000 ordinary shares at $2.50 each that closed on December 16, 2015.
The issue attracted 289 applications, valued at approximately $172.395 million.
Based on the level of oversubscription, applications for the general pool (57 percent of the shares offered) will receive 100 percent up to 10,000 shares applied for and the remaining shares will be allocated on a proportional basis equivalent to approximately 19.96 percent of the total application amount. Reserve share applicants (35 percent of the shares offered) will receive 100 percent of the number of shares they applied for.
The shares are expected to be listed on the junior market of the Jamaica Stock Exchange in January.