Activity on the Jamaica Stock Exchange, resulted in the prices of 16 stocks rising, 5 declining as 29 securities changed hands, ending in 2,166,650 units trading, valued at $9,438,928, and 8 stocks trading at new 52 weeks’ high, in all market segments. Trading was characterized by number of the stocks trading recorded relatively high levels of price movements.
TheJSE Market Index gained 411.58 points to 98,200.49, theJSE All Jamaican Composite index rose 460.04 points to close at 108,700.70 and the JSE combined index put on 519.16 points to end at 100,983.07.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 7 stocks with bids higher than their last selling prices and 4 with offers that were lower.
Stocks trading include, Barita Investments losing 14 cents with 334,867 shares trading to end at $2.51, Caribbean Cement with 365,811 shares closing at $5, Carreras ending with a 50 cents loss with 9,995 units to close at $49.50, Desnoes & Geddes traded 608 shares to rise cents to $8 having gained 45 cents. 
Jamaica Stock Exchange traded 37,000 units after the company announced a 53 cents dividend, payable in July and closed at $5.75 with a gain of 75 cents for a new high, National Commercial Bank ended with 42,811 shares changing hands $1 higher to end at $30. Pan Jamaican Investment traded 10,000 units to gain $1.50 and end at a 52 weeks’ high of $63.50, Sagicor Group ended with 121,095 shares trading at $12.06 for a 5 cents gain. Scotia Group had just 11,600 units trading to close $1.01 down at $24.50, Scotia Investments traded only 3,000 units to close up by $3.57 to $29.85, Supreme Ventures enjoyed trading in 21,700 shares at $3.60 and Jamaica Money Market Brokers 7.50% preference share traded 113,120 units at $2.11 for a 19 cents dip.
JSE closes down on Monday
Carreras traded over 4 million shares on Monday
TheJSE Market Index lost 299.63 points to 97,788.91, theJSE All Jamaican Composite index fell 334.90 points to close at 108,240.66 and the JSE combined index declined 285.04 points to end at 100,463.91.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 10 stocks with bids higher than their last selling prices and 6 with offers that were lower.
Stocks trading include, Cable & Wireless had 380,130 units trading and closed at 43 cents, Carreras with 4,067,804 shares at mostly $50, to shed $1 from Friday’s close. Desnoes & Geddes gained 5 cents while trading 37,000 units to close at $7.55, Hardware & Lumber traded 111,500 shares at $18, Jamaica Broilers with 218,900 shares at $5.50, JMMB Group 85,992 shares after slipping 30 cents to $7.50, the Jamaica Stock Exchange traded 16,000 shares to close at $5. The directors of the JSE met during the day and declared a dividend of 53 cents per shares to be paid in July. Mayberry Investments ended with 267,075 units at $3, 
National Commercial Bank closed with 113,100 units trading at $29. At the close NCB had 17 offers to sell 818,742 shares at $30 each and 4 bids amounting to 704,000 units to buy between $29.02 and $28, thereafter, meaningful bids are at $26.50. Pan Jamaican Investment had just 1,285 units trading at a new 52 weeks’ high of $62, after gaining $1.45, Scotia Group had 612,697 shares changing hands to close at $25.51 and Jamaica Money Market Brokers 7.50% preference share traded 561,800 units and ended at $2.30.
Proven Investments defying gravity
Dr Omar Davies will have found that his investments in Proven ordinary shares is working far better than funds placed in Credit Union, the latter seems to be his preferred choice for the placing of funds it would appear, based on a response he gave a few years ago to a reporter.
Davies and his other political colleagues would have seen their investment in the company done exceedingly well with the stock now trading at 21 US cents, well above the low of 7.5 US cents it traded at in December 2012. With the stock at a PE around 48 times ongoing earnings and well above any other stocks on the exchange, are investors pricing the stock right?
What is value?|There of course is a fallacious argument that the value is what willing buyers and sellers are prepared to pay, that may well be so, but if it based on unrealistic assumptions, the buyer may find that they over paid. What are investors paying a heavy premium for? It is not growth, for the company has not grown from increased profits after paying dividends, it not growth in profits since there is no growth in ongoing earnings since 2012, and it is not consistency of earnings either. The net asset value has not grown in the 2015 fiscal year over 2014 with net value of $32 million before new issued shares is adjusted for. The amount is lower than the $33 million in 2012 and $35.78 million in 2013, while this year’s operating profit is down on that of 2013 at $4.16 million and $3.3 in 2012.
Proven just reported full year results showing a profit of US$5.9 million or 1.5 US cents per share, up on the earnings in 2014 of $3.78 million or 1.28 cents per share. On the surface, that seems great and would put the PE at 14, and based on the local market valuation, it’s a bit high but not extremely so, with stock prices having grown an average of 30 percent in value for 2015, raising the PE of most stocks.
Hugh Hart Chairman of Proven Investments
During the year, Proven enjoyed strong growth in revenues but cost jumped sharply as well, with net interest income more than doubling to $7.65 million from $3.2 million in 2014. Overall net income grew from $8.6 million to $11.38 million, operating expenses moved from $3.6 million to $8.28 million, including loan impairment that jumped to $442,000 from just $45,000 in 2014. Operating profit before preference dividend of $1.5 million (2014: $969,000) amounts to $3.1 million down form $5 million in 2014.
The acquisition of the First Global Financial’s portfolio and the Access shares, incurred cost of $169,313 which is expensed is unlikely to recur in 2015, unless there are other take overs in the works, as such the net operating profit from ongoing operations would have been somewhat higher than the figure mentioned above but still leave the stock seriously overvalued, for a company that is not growing operating profit on a consistent basis year to year.
Going forward, the acquisition of Access Financial Services contributed profit of US$1.2 million to the group’s profit and could end up around $4-5 million for the full year which would swell earnings considerably for the group for the year ending March next year. Proven raised US$30 million in fresh capital after the year end pushing the share capital to 551 million units, these funds will generate added income and profit and the group is looking at possible acquisitions, with shares in Guardian Holdings in Trinidad high on the list. Investors can look forward of profits hitting $7 million mark with earnings around 1.3 cents per share or somewhat more depending how the fresh capital is deployed. Regardless, earnings per share from ongoing operations would be up from the low level of 2015, but would still leave the value of the stock around 16 times earnings, more than 3 times that of National Commercial Bank.
JSE struggles to break out
Buyers are willing to buy proven at a PE of 48, by far the highest in the market.
Trading in the market resulted in the prices of 10 stocks rising, 8 declining as 31 securities changed hands, ending in 4,581,896 units trading, valued at $24,655,549, in all market segments and 3 stocks closed a new 52 weeks’ high, in all market segments. The main market of the JSE Market Index lost 1,163.43 points to 98,088.54, theJSE All Jamaican Composite index fell 1,300.42 points to close at 108,575.56 and the JSE combined index dropped by 1,097.94 points to end at 100,748.95.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 12 stocks with bids higher than their last selling prices and just 2 with offers that were lower. The indications from pass comparisons with the next day actual performance suggests that the numbers of stocks likely to rise on the next trading day will be close to the number of higher bids but the negatives number could end being 2 to 4 times the above lower bids.In trading, Cable & Wireless continues to shed cents from the stock price as it traded 105,232 shares, to end at 43 cents 2 cents down. Caribbean Cement had just 10,000 shares trading, but it lost 20 cents to close at $4.80, Carreras had just 3,200 units changing hands at $1 higher to $51, Jamaica Stock Exchange had 15,850 units changing hands for 5 cents more to reach a new 52 weeks closing high of $5.05
as the board of the company meets on Monday coming, to declare a dividend. National Commercial Bank lost 60 cents while trading 131,412 units to end at $29, Sagicor Group finished with 25,900 shares to close at $12, Proven Investments traded a good volume of 368,945 shares to close at 21 US cents, but finished with the bid at US 22 cents for a hand full of shares. If the stock should trade at this level the valuation would be a PE ratio of 48 times ongoing earnings, well above any other stock on the exchange. Jamaica Money Market Brokers 7.25% preference share trading 1.8 million units and the 8.75% preference share ending with 999,225 shares.
JSE records gains as 12 stock rose
JSE closed at a new high on Thursday of $5
The JSE Market Index rose by 850.14 points to 99,251.97,
the JSE All Jamaican Composite index rose 950.23 points to close at 109,875.98 and the JSE combined index gained 909.48 points to end at 101,846.89.IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 11 stocks with bids higher than their last selling prices and 4 with offers that were lower.
After two hours of trading on Thursday there was heavy trading in a number of stocks. The big trades for the day are Caribbean Cement with 4,504,011 shares to close at $4.80, the vast majority traded at $5. Carreras traded 528,878 units to end at $50, Jamaica Broilers with 3,019,120 shares changing hands, closed at $5.50, Scotia Group traded 1,103,300 shares with the price closing unchanged at $25.50 as Scotia Investment bought most of those to trade. Supreme Ventures had 8,559,749 shares traded to end at $3.50, down 25 cents and Jamaica Money Market Brokers 7.50% preference share traded 836,000 units with a gain of 19 cents to end at $2.30.
Elsewhere in the market, Jamaica Stock Exchange traded 21,150 units to end with a gain
of 20 cents to a new closing high of $5. National Commercial Bank with 248,135 shares closed at $29.60 to end with a 5 cents gain, Pan Jamaican Investment traded 5,678 shares to close 3 cents higher at a new 52 weeks high of $60.55, Pulse Investments traded 300,000 units at 45 cents, to gain 9 cents for a new 52 weeks high. Sagicor Group had 388,585 shares trading to close at $12, Sagicor Real Estate Fund traded 418,797 shares at $7.60, up 50 cents on the day, Scotia Investments exchanged 20,028 shares to close at $26.28 and Proven Investments traded 146,255 shares at 21 US cents.
3 new highs on TTSE
Unilever closed at a new 52 weeks high on Wednesday
At the close of the market, the Composite Index fell by 1.56 points to close at 1,159.15, the All T&T Index rose by just 0.62 points to close at 1,969.84 and the Cross Listed Index decreased by 0.50 points to end at 45.72.
Gains| Stocks increasing in price at the close are, Ansa McAL traded 900 shares to close with a gain of 1 cent at $67.06, Massy Holdings ended up with 380 units changing hands 15 cent higher at $64.25. Mora Ven Holdings, with 200 shares trading closed at a 52 weeks’ high of $14.98 as the price gained a cent. The stock was traded for the first time since April last year, according to data on the Trinidad & Tobago Stock Exchange. National Flour Mills with 1,500 shares changing hands, closed with a gain of 10 cents at $2, for a new 52 weeks’ high. Point Lisas gained 1 cent to end at $3.81 with just 300 shares trading, Unilever Caribbean contributed 3,839 shares with a value of $254,724 and gained 21 cents to end at $66.36 for another r52 weeks’ high and West Indian Tobacco closed 2 cents up to $125.33 with 94 shares trading.
Declines| The stocks declining at the end of trading are, Clico Investment Fund which lost 5 cents to close at $22.50 with 7,150 shares trading, valued at $160,888. Grace Kennedy added 1,900 shares to close 2 cents lower at $3.55, National Commercial Bank contributing just 120 shares, 5 cents lower at $1.70 and JMMB Group with a volume of 100,000 shares being traded 3 cents lower, at 47 cents.Firm Trades| Stocks closing with prices unchanged at the end of trading are, Agostini’s ending with 1,100 shares trading, in closing at $17.25. First Citizens Bank trading 9,781 shares valued at $350,181 closed at $35.80, National Enterprises with 250 shares closed at $17.20, Prestige Holdings ended with just 10 shares changing hands at $9.90 and Scotiabank traded 50 units at $62.54.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower.
Declining stocks outpace advancers
Activity on the Jamaica Stock Exchange, resulted in the prices of 10 stocks rising, 13 declining as 33 securities changed hands, ending in 9,407,399 units trading, valued at $83,136,775, with 4 stocks closing at 52 weeks’ high, in all market segments.
The JSE Market Index lost 787.71 points to 98,401.83, the JSE All Jamaican Composite index declined 880.45 points to close at 108,925.75 and the JSE combined index dropped by 631.19 points to end at 100,937.41.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 15 stocks with bids higher than their last selling prices and 9 with offers that were lower. The indication is for fluidity in price movements on Thursday and the likelihood of declining stocks out numbering advancing ones.
In trading, Berger Paints traded 71,289 units at $3, Caribbean Cement had 201,560 units trading at $5 after dropping 10 cents. Interestingly, even as Cable & Wireless posted a large loss after taking a $7 billion one off extra ordinary expense hit, the stock traded 649,000 units between 50 cents and the closing price of 48 cents, the same as on Tuesday. Carreras traded 483,380 units at $50, after falling $1.50, Gleaner Company had 219,403 shares trading at $1, Hardware & Lumber closed with 38,638 shares trading unchanged at $18, Jamaica Broilers having 2,428,147 units trading with the price holding at $5.18 after slipping from $5.50 earlier in the day, to end the day down 7 cents. JMMB Group lost 79 cents while it traded 1,130,033 units as the price closed at $7.71, following poor profit results in the final quarter of the fiscal year to March.
Mayberry Investments had 1,099,821 units trading 4 cents lower at $3.05. One million units of the stock were sold by JMMB Securities and Mayberry bought them for in house purposes. National Commercial Bank ended with 81,153 units changing hands 35 cents down at $29.55, Pan Jamaican Investment traded 4,078 units 2 cents higher for a new 52 weeks’ high of $60.52. Sagicor Group had 1,199,248 shares trading at $12, after slipping 5 cents, Scotia Group had 315,085 units changing hands to end 250 cents higher at $25.50 and Jamaica Money Market Brokers 7.50% preference shares closed with 295,000 units trading to end at $2.11.
4 stocks up 2 down on TTSE
Trading on the Trinidad Stock Exchange ended with 13 securities changing hands of which 4 advanced, 2 declined and 7 traded firm with a total of 65,604 units, valued at $678,230.
At the close of the market, the Composite Index rose 0.76 points to close at 1,160.71, the All T&T Index rose by just 0.36 points to close at 1,969.22 and the Cross Listed Index increased by a mere 0.16 points to end at 46.22.
Gains| Stocks increasing in price at the close are, National Commercial Bank contributing 8,937 shares, 5 cents higher at $1.75, National Flour Mills with 17,958 shares changing hands, to close with a gain of 10 cents at $1.95, for a new 52 weeks’ high. One Caribbean Media gaining 11 cents to end the day at $22.41 with just 100 shares trading and Sagicor Financial Corporation traded 870 shares to close with a gain of 1 cent at $6.05.
Declines| The stocks declining at the end of trading are, Guardian Holdings ended with 6,400 shares trading and closing at $14.14 for a loss of 1 cent and JMMB Group with a volume of 10,300 shares being traded 3 cents lower at 50 cents.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Angostura Holdings trading 44 units at $13.90, First Citizens Bank trading 7,998 shares valued at $286,328 to close at $35.80. Guardian Media with 546 shares closed at $19.76, National Enterprises with 5,540 shares closed at $17.20, Prestige Holdings ended with just 10 shares changing hands at $9.90, Scotiabank traded 1,984 units at $62.54 and Scotia Investments traded 4,917 shares to close at $1.47. Scotia Investments will be reporting second quarter results on Thursday after trading.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower.
15 stocks rose 10 declined on JSE
JSE traded at a new all-time high of $4.80 to record a gain of 220% for the year to date
TheJSE Market Index lost 484.92 points to 99,189.54, theJSE All Jamaican Composite index fell 542.01 points to close at 11109,806.20 and the JSE combined index gained 850.26 points to end at 101,568.60.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 14 stocks with bids higher than their last selling prices and 3 with offers that were lower.
Market activity saw, Cable & Wireless ending with 1,359,285 shares to close at 48 cents, after losing 2 cents but the stock traded as low as 45 cents after the company reported a huge $9 billion loss including an exceptional charge of $7 billion, after trading closed on Monday.
Caribbean Cement had 70,900 shares trading at $5.10, to record a gain of 10 cents. Carreras traded of $51.50 and lost 50 cents but with just 6,272 shares, Desnoes & Geddes had 38,161 units changing hands at $7.50, for a loss of 5 cents, Hardware & Lumber traded 72,196 shares between a new intra-day high of $19 and the closing price of $18, Jamaica Broilers traded 206,666 units to close at $5.25 with a 30 cents loss. Jamaica Stock Exchange traded 5,000 units at a new high of $4.80 after gaining 30 cents. JMMB Group gained 5 cents, with 14,350 shares to close at $8.50. Mayberry Investments traded 183,599 units at $3.09, as the price slipped by 1 cent, 
National Commercial Bank traded 24,497 shares at $29.90 and lost 9 cents, Radio Jamaica traded 100,000 shares to remain unchanged at $3. Sagicor Group had 344,180 units trading 5 cents higher to end at $12.05, the company Real Estate Fund ended with 18,186 units trading down by 8 cents at $7.50. Scotia Group traded 309,997 units at $25.30, Supreme Ventures added 117,357 shares at $3.80. Proven Investments had 40,900 changing hands at 20.99 US cents, Jamaica Money Market Brokers 7.50% preference shares closed with 250,900 units trading at $2.11 and Jamaica Money Market Brokers 8.75% preference shares closed with 147,225 units trading at $3.02.
National Flour ends at new high
IC Insider Buy Rated NFM closed at a new 52 weeks high on Monday
At the close of the market, the Composite Index rose 0.03 points to close at 1,159.95, the All T&T Index rose by just 0.19 points to close at 1,968.86 and the Cross Listed Index fell by a mere 0.02 points to end at 46.06.
Gains| National Flour Mills was the only stock increasing in price at the close, with 2,770 shares changing hands, to gain of 8 cents at $1.85, for a new 52 weeks’ high.
Declines| The stocks declining at the end of trading are, National Commercial Bank contributing 6,000 shares while losing 19 cents to close at $1.71, Point Lisas with 1,075 shares trading and closing at $3.80 for a loss of 1 cent and Scotia Investments traded 23,500 shares to close 2 cents lower at $1.47.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Ansa McAl trading 60 units at $67.05, Clico Investment Fund traded 185,764 units valued at to end at $22.55, First Citizens Bank trading 7,703 shares valued at $275767 to close at $35.80. Massy Holdings with 587 shares closed at $64.10, Prestige Holdings ended with just 100 shares changing hands at $9.90 and Trinidad Cement traded 12,111 units at $2.80.IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower.