Mayberry Investments is one of the latest stocks to be added to the buy rated list based on stability in earnings, but mostly based on what seem likely to be improvement in the Jamaican stock market going forward and the gains that could accrue to the company if trading levels and stock values pick up.
Scotia Trinidad and West Indian Tobacco were restored to the list with expected higher earnings in 2015 than in 2014 as well as Scotiabank’s fall in price below $60 per share.
Jamaica’s junior market stocks get expanded, partially based on where prices are now and reasonable profits generated for 2014 so far, with increased earnings likely in 2015. Paramount and Medical Disposables were elevated to BUY RATED and Access was restored to the list.
The Jamaica Stock Exchange is being watched for a possible upgrade form Market Watch to Buy Rated.
More stocks added to buy rated list
Lasco Manufacturing trades 1m shares
Trading in the Junior Market was dominated by Lasco Manufacturing with 1 million shares at $1 each. Trading ended with 1,084,716 units valued at $1,128,267. The JSE Junior Market Index rose 6.28 points to close at 679.35. A total of 7 securities traded, with the price of 1 advancing and 1 declining.
At the close, there were 2 stocks with bids higher than their last selling prices and 2 stocks with offers that were lower. The junior market continues to be weak with 8 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
Lasco Distributors ended trading with 53,804 shares changing hands as the price climbed 4 cents rise to $1.39 and Lasco Manufacturing with 1,000,000 units gained on 3 cents to end at $1.
Caribbean Producers ended trading 11,152 units to close with a 1 cent loss, at $2.25, Consolidated Bakeries finished trading with 8,000 shares trading at 82 cents, Jamaican Teas had dealing in only 3,860 shares at $3.40. The company reported a small loss in the September quarter and a profit of 35 cents for the full year, versus 58 cents in 2013. Lasco Financial contributed 6,500 shares at 95 cents and Medical Disposables with 1,400 shares trading at $1.94.
Caribbean Producers up 10%
Trading in the Junior Market closed with Caribbean Producers gaining 10 percent, as the company with largest percentage price movement. There was a total of 686,019 units changing hands, valued at $857,142. The JSE Junior Market Index rose 5.37 points, to close at 665.91 as 7 securities traded, with the price of 3 advancing and 2 declining.
At the close, there were 2 stocks with bids higher than their last selling prices and 2 stocks with offers that were lower. The junior market continues to exhibit weakness with 10 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
In trading, Caribbean Producers finished with 20,000 shares with the price rising 20 cents to $2.20, Lasco Financial saw trading in 50,000 units and put on 8 cents to 98 cents and Medical Disposables ended with 10,000 shares with an increase of 4 cents to $1.94.
Lasco Distributors contributed 232,490 shares at $1.32 and Lasco Manufacturing ended trading with 235,894 shares at 95 cents.
Blue Power ended with 660 units as the price slipped 20 cents to $6.90 and General Accident finished with 136,975 shares with 2 cents fall to $1.53.
7 securities traded in junior market
Caribbean Producers traded 107,00 shares at $2.
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 1 with the offer that was lower. The junior market continues to exhibit weakness with 10 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
There was dealing in 11,949 General Accident shares, as the price closed with a gain of 2 cents, to end at $1.55, Knutsford Express concluded trading with 2,500 units, with a decline of 1 cent to $5.49, AMG Packaging ended trading with 9,478 shares changing hands at $2.15, Caribbean Flavours closed with 23,872 shares trading at $2.35, Caribbean Producers finished trading with 107,000 shares at $2, Lasco Manufacturing exchanged 31,106 units, to close at 95 cents and Medical Disposables traded 2,000 shares at $1.90.
Medical Disposables sole stock trading
Medical Disposables distributes Denk Pharma products.
At the close of the market, there were 5 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market continues to exhibit weakness with 9 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Medical Disposables traded 34,000 shares gained 2 cents to end at $1.90 to be the sole junior market stock to trade.
Lasco Manufacturing sole stock to rise
Section of new plant at Lasco Manufacturing at White Marl, St. Catherine
At the close of the market, there were 2 stocks with bids higher than their last selling prices and only 1 stock with the offer lower. The junior market continues to exhibit weakness with 10 securities closing with no bids to buy. There were 5 securities that had no stocks being offered for sale. The weakness is in keeping with technical indicators, suggesting that the junior market has a while to go, before prices start to recover across the broader market. This is especially so with profits of two of the Lasco companies falling below the results for 2013.
Lasco Manufacturing was the only junior market stock to gain at the end of trading as trading closed with 20,800 shares trading to gain 4 cents at 95 cents and Caribbean Flavours 50,323 units traded to close unchanged, at $2.35.
Lasco Financial with 98,860 shares, ended at 98 cents, Dolphin Cove with 200 units but lost 50 cents to end at $8, General Accident added 6,326 shares but lost 2 cents to close at $1.53 and Medical Disposables put through 20,000 units but lost 4 cents in closing at $1.88.
Dividend by Medical Disposables
Image courtesy of DreamDesigns/FreeDigitalPhotos.net
Medical Disposables will be paying an interim dividend of 4 cents per share on November 19, to shareholders on record at November 14, 2014. The stock which is listed on the junior market of the Jamaica Stock Exchange, will start trading ex-dividend, on November 12, 2014.
The company is enjoying good times, with improved results for the September quarter, with profit after tax rising 66 percent for the quarter, versus the 2013 quarter. For the six months, profit after tax rose 60.6 percent, to $38.7 million, from $24 million.
Impressive sales growth at Medical Disposables
Kurk Boothe – Medical Disposables Managing Director
In 2013 after taxation of $4.4 million, $13 million was left as net profit. For the six months, profit after tax of rose 60.6 percent to $38.7 million from $24 million, after accounting for $8.4 million in taxes.
For the quarter, gross profit grew 29 percent to $70.4 million compared to $54.5 million and for the six months an increase of 28 percent to$136 million. “This improvement was due to the increased sales in all categories and consistent review of our pricing structure to maintain gross margin efficiency,” Kurk Boothe, Managing Director said in his report to shareholders. The increase in gross profit was helped by an improvement in gross profit margins, increasing during the latest quarter to 33.14 percent from 32.12 last year and to 33.65 percent for the six months versus 32.90 percent in the same period of 2013.
Sales revenue climbed 26.2 percent to $283 million in the September quarter over the $224 million in 2013. For the half year, sales grew 26 percent to $540 million from $429 million in 2013. “This result was in keeping with the company’s strategic forecast of growing market share and widening the customer base in all categories of its business operations,” Boothe stated.
IC Insider understands that sales have moved to more than $100 million per month since the latter part of the last quarter. If this is maintained then it should lift profit going forward and could push earnings to around 40 cents per share for the current financial year.
Expenses| Total operational expenses increased 49.8 percent for the quarter and the half year to September to $47.6 million compared to $31.8 million in 2013 and to $93.8 million for the six months period.
“This increase was driven mainly by staff related expenses, utilities, professional fees and information technology services. Staff related expenses, in particular, were driven by the strategic decision to realign the staff complement and compensation to sustain the current growth, development and expansion of the business, Boothe said.
Finances| Trade receivables have climbed to more than two months of sales at $240 million and inventories have moved up as well to just under three months’ supply at $182 million. Cash funds are at $86 million but borrowed funds have climbed to $106 million.
The stock is one to watch with the price of the stock on the junior market of the Jamaica Stock Exchange at $1.92 at a PE less than 5 times the 2015 profit. The company declared a 4 cents per share dividend, payable in November 19.
5 stocks traded in junior market 4 fell
The Junior Market closed with 175,408 units valued at $314,853 trading. The JSE Junior Market Index fell 4.59 points to close at 656.81, only 5 securities traded, 1 advanced and 4 declined.
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market continues to exhibit weakness with 10 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Stocks that traded on Monday in the junior market are, General Accident with 32,700 shares, the price rose 4 cents to end at $1.55, Lasco Financial Services with 7,600 units, closed at 90 cents, down 10 cents, Lasco Manufacturing had 24,447 units trading to close at 93 cents, after losing 2 cents, Medical Disposables with 75,500 shares, lost 4 cents to end at $1.92 and Paramount Trading had 35,161 units changing hands at $2.55, after dropping 15 cents.
Trading picked up in the Junior Market
Lasco”s new I Cool drinks
At the close of the market, there were 3 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower. The junior market continues to exhibit weakness with 11 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Stocks trading are, Consolidated Bakeries with 66,667 shares rose by 5 cents to 85 cents followed by General Accident with 2,059 shares and was up 1 cent, to end $1.51, Lasco Distributors traded 1,293,130 units, closed 10 cents lower at $1.20, AMG Packaging traded 2,300 shares at $2.25, Lasco Manufacturing had 1,662,000 units trading to close at 95 cents, Medical Disposables 2,500 shares traded down by 4 cents to $1.96 and Paramount Trading had 106,615 units changing hands at $2.70.
