Another record close for JSE on Friday

Trading on the Jamaica Stock Exchange main market ended at a another record close, with JSE All Jamaican Composite Index increasing by 763.78 points in a record closing high of 326,087.70 and the JSE Index gaining 695.89 points to a record closing high of 297,102.76.
At the close with only 28 securities traded versus 29 on Thursday. Trading ended with the prices of 7 stocks rising, 12 falling and 9 trading firm, in the main and US dollar markets.
Securities closing with sizable price changes include, Grace Kennedy lost $1 to end at $48, Kingston Wharves declined by $1 to $39, Palace Amusement dropped $150 on top of the $200 fall on Thursday to end the week at $750 and Scotia Group fell $1.50 to $52.
Main market activity ended with 5,136,325 units valued at over $124,111,209 compared to 11,332,892 units valued at over $423,780,603. JMMB Group closed trading with 1,575,126 units accounting for 30.67 percent of the overall market volume followed by Carreras with 819,568 units or 15.96 percent of total volume traded and Jamaica Broilers Group with 550,887 units with 10.73 of traded volume.
Trading resulted in an average of 190,234 shares valued at $4,596,711, for each security traded, compared to 419,737 shares valued at $15,695,578 on Thursday. The average for the month to date is 1,240,308 shares with a value of $6,425,698 and previously 1,510,327 shares with a value of $7,058,809. In contrast, March closed with an average of 626,526 units with an average value at $20,492,207 for each security traded.
The US dollar market closed on Thursday with 109 units valued at just US$24 as Proven Investments was the sole stock traded and ended unchanged at 22 US cents, leaving the market index unchanged at the close at 173.30.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 6 stocks ended with bids higher than their last selling prices and 2 with a lower offers.
For more details of market activities see – JSE trading levels fall on Friday

Palace is much more than Black Panther

Carib Cinema, the flagship for Palace Amusement.

Revenues and profit are getting a big lift from the strong showing of the Black Panther movie currently playing at the Palace Amusement cinemas in Jamaica.
The stock jumped sharply in March, more than doubling the previous price of $560. Some investors are of the view that interest in the stock is purely as a result of the movie. While it may be a factor, Palace’s story goes well beyond that.
Although in the public eyes daily, the shares of Palace are not the focus of attention for many . One main reason is the 1,437,000 shares issued by the company, resulting in limited liquidity in the stock. The other is that historically profit can be a bit erratic. Management’s failure to split the stock for greater liquidity only adds to investors’ concerns.
Palace is reminiscent of Lascelles deMercado back in 1983 when the stock hardly traded due to liquidity issues and a lousy dividend policy. Asked then why the stock was so cheap, around $6, a broker responded —no one buys

A seen from Black Panther

Lascelles’ shares. That of course was a terrible error by investors as the stock went on to deliver one of the best returns on the local market with Campari ultimately buying out the company.
Stocks that are not sexy don’t get much attention from investors, but in many cases, these are the ones to record massive gains when the story is fully told. A reader of IC indicated that a look at the last two years’ results revealed flat revenues. That prompted a review of the numbers. The history may not be spectacular but closer examination shows a high degree of attractiveness that is not based solely on the pile of added income Black Panther will rake in.
Revenues have been climbing since 2014 when it reached $833 million, rising to $916 million in 2015, with a slight dip in 2016 to $909 million. Revenues rose 9 percent in 2017 to $990 million and for the half year to December 2017, growth was 11 percent to $493 million with profit rising 138 percent.
Revenues will hit the billion mark for the first time in the company’s history, for the current fiscal year and remain over that level going forward. The performance of the economy is critical to the future fortunes and to a lesser degree, the quality of films. Data indicates that with a tight economy, patronage in Kingston suffered badly with the downturn in the economy from 2008 onwards. At the same time, strong growth, said to be around 7 percent per annum in the Montego Bay economy, showed up in strong revenue gains there compared to Kingston for a number of years. With the overall economy recovering and employment growing, Palace is benefitting and it’s reflected in the numbers to December 2017.

Palace Multiplex in Montego Bay.

Segment results tell the story of the strong impact of the economy on operations. For the six months to December, Box office patronage at Carib Cinema in Cross Roads rose 14 percent to $147 million, while at Palace Cineplex, the gains were 10 percent to $55 million and 8 percent at Palace Multiplex in Montego Bay to $77 million. Sales from the concessionaires surged 29 percent to $80 million at Carib, 22 percent at Cineplex to $27 million and 21 percent to $34 million at Multiplex. The fact that Carib has outgrown the other two cinemas is not an accident but is reflective of the recovery in disposable income of a large number of Jamaicans.
While revenues are on the rise, cost has been kept under control. Direct operating cost increased by 6 percent to $190 million for the quarter and 8 percent for the half year.

Another Palace movie – Bruce Willis and Cole Hauser star in Acts of Violence.

Administrative Expenses rose just 4 percent to $37 million in the December quarter and 7 percent for the six months to $76 million. Depreciation for the six months period rose just 5 percent to $17 million. If the trend continues into 2019 fiscal year earnings should be close to $100 per share range. Prior to Black Panther, earnings were set to reach around $45 per share but the phenomenal success of Black Panther is Projected by IC to push 2018 earnings to be well over $100 per share when the fiscal year closes in June.
The company concluded the year with equity capital of $343 million, borrowings at just $25 million with cash funds of $130 million helping to push Current assets to $242 million as Current liabilities stand at $110 million.
The stock traded at $1,300 earlier in the month is poised to fall back with the lowest offer being $1,000. Palace trades on the main market of the Jamaica Stock Exchange at a PE around 10 times projected 2019 earnings and much lower based on the 2018 earnings.

Investor bids $1,300 for Palace shares – Thursday

Palace Multiplex in Montego Bay.

IC Insider TOP 10 stock – Palace Amusement, jumped $540 to $1,100 in trading on the Jamaica Stock Exchange on Wednesday, did not trade on Thursday but closed with the bid at $1,300 and an offer at $1,500.
The sharp increased price, comes as investors responded to the strong patronage of the Black Panther movie, that is expected to raise revenues and profit sharply for Palace.
Main market activity ended with 29 securities changing hands, with 3 securities rising, 14 falling, 12 trading firm. Trading closed with 14,969,349 units valued at $264,028,466 being exchanged.
At the close of trading, the JSE All Jamaican Composite Index dropped 4,700.74 points to 319,507.99 and the JSE Index dived 4,282.91 points to 291,107.90.
In main market activity, Barita Investments closed at $9, with 3,600 shares, Berger Paints ended at $17, with 100 stock units, Carreras finished with a loss of 12 cents at $10.78, with 362,023 shares, Caribbean Cement settled 1 cent higher at $32.61, with 58,148 shares, Ciboney Group ended trading at 14 cents, with 145,700 shares. Grace Kennedy traded at $52, with 12,451 stock units, Jamaica Broilers finished trading with a loss of 48 cents at $19.51, with 342,660 units, Jamaica Producers closed with a loss of 49 cents at $15.01, with 326,924 shares, Jamaica Stock Exchange ended at $6.50, with 112,036 shares. JMMB Group concluded trading with a loss of 44 cents at $26.06, with 623,884 shares, Kingston Properties finished with a loss of 65 cents at $6, with 7,500 stock units, Kingston Wharves settled at $39.50, with 5,950 units, Mayberry Investments ended trading 2 cents higher at $5.17, with 2,000 shares. NCB Financial Group traded with a loss of 99 cents at $98.50, after 893,212 shares changed hands, 1834 Investments finished trading with a loss of 12 cents at a 52 weeks’ low of $1.03, with 3,000 shares, 138 Student Living ended with a loss of 29 cents at $5.51, with 150 shares, PanJam Investment finished $42 higher at $42, with 58,886 stock units, Pulse Investments concluded trading at $1.85, with 33,735 shares, Radio Jamaica finished with a loss of 2 cents at $1.06, with 3,570 shares. Sagicor Group settled with a loss of 90 cents at $35.60, with 225,268 shares, Sagicor Real Estate Fund settled with a loss of 10 cents at $15, with 16,636 shares, Salada Foods ended trading at $12.05, with 8,474 stock units, Scotia Group traded with a loss of $2 at $54, with 124,930 units, Seprod finished trading at $30.25, with 48,955 shares. Supreme Ventures ended with a loss of 50 cents at $11.50, with 1,767,895 shares, Victoria Mutual Investments concluded trading with a loss of 7 cents at $4.50, with 732,219 stock units and Wisynco Group finished at $10.50, with 9,043,043 units. In the main market preference segment, Jamaica Money Market 7.25% ended trading at $2.55, with 400 shares, JMMB Group 7.5% closed at $1.02, with 6,000 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place. For more details of market activities, see “4,700 points drop for JSE – Thursday.”

$2,800 per share for Palace Amusement!

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Palace Amusement seems set to be a big surprise as the stock could exceed $2,000 this year with enormous success that Black Panther is forging.
At the close on Friday the bid had moved up to $730 and should be heading higher based on the good fortune being enjoyed with the Black Panther movie. IC projects big rise in revenues for the current quarter a sizable jump in profit as well to levels never before seen by this company. Profit for the year to June should be well into the $100 per share range as the company increase showings of the extremely popular movie but is still booked out into the future. Cable & Wireless should be the number one choice for main market TOP 10 stocks based on a nearly $2 billion reduction in interest cost this year resulting from the fall in local interest rates and increasing revenues. But uncertainty lies about continued listing on the Jamaica Stock Exchange in a year when the company is likely to see significant profit for the first time in nearly a decade.
The number one remains with Barita Investments on the basis that management will start to seriously extract the benefits of the assets that it manages. Despite the fall in profits in the December quarter for Berger Paints, from slightly lower  revenues compared to 2016, the stock is still expected to benefit from improving demand for paints as economic improvements take deeper root.
Caribbean Cement continues to struggle to break out of the $35 region but investors may have to wait until around mid-April just ahead of the first quarter results to witness a break out. Grace Kennedy results when the prior year’s one off gain from sale of investment is factored out showed continued progress in increasing profit. The stock has become scarce and seems headed for the over $50 range.
The PE ratio of the TOP 10 is 6.6 times 2018 earnings compared to 12 currently for the main market and an expected 20 by March 2019, this means these stocks have lots of room to grow.

Young Marx Sunday at Palace Cineplex

Rory Kinnear as Karl Marx and Oliver Chris as Friedrich Engels in the Young Marx

Rory Kinnear (The Threepenny Opera, Penny Dreadful, Othello) is Marx and Oliver Chris (Twelfth Night, Green Wing) is Engels, in this new comedy written by Richard Bean and Clive Coleman.
Broadcast live from the Bridge Theatre, London, the production is directed by Nicholas Hytner.
It is 1850, and Europe’s most feared terrorist is hiding in Dean Street, Soho. Broke and restless, the thirty-two-year-old revolutionary is a frothing combination of intellectual brilliance, invective, satiric wit, and child-like emotional illiteracy. Creditors, spies, rival revolutionary factions and prospective seducers of his beautiful wife all circle like vultures. With his writing blocked, his marriage dying, his friend Engels in despair at his wasted genius, his only hope is a job as a Railway Clerk

There’s still no one in the capital who can show you a better night on the piss than Karl Heinrich Marx. Nicholas Hytner’s comedy of political visionary will be showing this Saturday March 11, 11:30 AM at Palace Cineplex.

The Met: Live in HD Semiramide (Rossini)

Angela Meade in the title role of Rossini’s Semiramide.

The world famous Met will transmit live this Saturday another of its wonderful entertainment and art series at Palace’s at Carib 5 – Semiramide.
Rossini’smasterpiece of dazzling vocal fireworks, makes a rare Met appearance, its first in nearly 25 years—with Maurizio Benini conducting.
The all-star bel canto cast features Angela Meade in the title role of the murderous Queen of Babylon, who squares off in breathtaking duets with Arsace, a trouser role sung by Elizabeth DeShong. Javier Camarena, Ildar Abdrazakov, and Ryan Speedo Green complete the stellar cast. Set in ancient Babylon, now modern-day Iraq, Semiramide follows the battle for the Babylonian throne in the wake of its fallen monarch. The opera marks the culmination of the Italian phase of Rossini’s monumental yet unusual career and is often considered one of his finest works. Semiramide will be transmitted live this Saturday March 10, 12:55 PM at Carib 5.

Samson – A hero chosen by GOD

Taylor James as Samson, in the biblical drama- Samson

The whole story is revealed in Pure Flix’s interpretation of the famous biblical story of Samson – a young Hebrew with supernatural powers.
Samson is the biblical Hercules, a man of incredible strength who nonetheless could not escape tragedy. Palace Amusement Company is now carrying this incredible story, in one of its cinema houses this week and next.
His supernatural strength and impulsive decisions quickly pit him against the oppressive Philistine empire. After being betrayed by a wicked prince and a beautiful temptress, Samson is captured and blinded by his enemies. Samson calls upon his God once more for supernatural strength and turns imprisonment and blindness into final victory. Directed by Bruce Macdonald and inspired by the story of Samson in the Book of Judges, Samson stars Taylor James in the titular role.

Black Panther applauded by patrons & Palace

One of the many gripping scenes from Marvel Studios’ Black Panther.

Palace Amusement Company continues to reap sweet rewards from the phenomenally popular movie, Black Panther that Jamaicans are queuing in droves to see.
Now in its third big week, this Marvel Studios’ phenomenon, in keeping with growing demand island wide has resulted in Palace Amusement adding extra shows at all its cinemas, to satisfy it patrons who are eager to be a part of the film’s astounding appeal and drawing power.
According to a release from Palace its flagship Carib in Cross Roads, have moved to 6 shows daily up from 4, Palace Cineplex, Liguanea, has added daytime matinees on the weekend, in addition to 2 shows daily and in Montego Bay, Palace Cineplex will now have 4 shows daily up from 3. For show times check or see the press.
Palace reported a loss of $5.3 million in the December quarter from revenues of $233 million and a profit of $4 million for the six months period, from revenues of $493 million. By IC computation the success of Black Panther should blast the December quarter’s numbers way out of the waters and well into the black and is likely to make 2018 the most successful year in the movie house’s history.
Palace Amusement Company is listed on the Jamaica Stock Exchange and last traded at $560.

La Bohème Encores Sunday – Palace Cineplex

Sonya Yoncheva as Mimì and Michael Fabiano as Rodolfo in Puccini’sLa Bohème.

The world’s most popular opera returns in Franco Zeffirelli’s classic production of Puccini’s La Bohème, set to encore this Sunday March 4, 11:30 am at Palace Cineplex.
La Bohème is a classic story full of young love and the triumph of unconditional love over circumstances. On its face, it is the definitive depiction of the joys and sorrows of love and loss, on closer inspection, it reveals the deep emotional significance hidden in the trivial things that make up our everyday lives. Franco Zefferelli’s classic production starred Sonya Yoncheva and Michael Fabiano as the young lovers Mimi and Rodolfo, with Susanna Phillips as Musetta and Lucas Meachem as Marcello.
Lyrical and touchingly beautiful, the score of La Bohème exerts a uniquely immediate emotional pull. Many of its most memorable melodies are built incrementally to depict love and the struggles of everyday life.
Composer, Giacomo Puccini was immensely popular in his own lifetime due to his remorseless perfectionist style of composing. His mature works such as; Tosca and Madama Butterfly, remain staples in the repertory of most of the world’s opera companies. Being one of the world’s favourite opera, it takes a talented producer to add freshness to the production without removing the subtle nuances of Puccini’s original piece.

Ryan Speedo Green as Oroe in Rossini’s “Semiramide” playing March 10.

The titan behind the current production of La Bohème, is Academy Award® nominated director and producer; Franco Zeffirelli. He known for productions such as; Romeo and Juliet, Hamlet, Brother Sun, Sister Moon and the Taming of the Shrew.
The next transmission will be Semiramide, Rossini’s rarely-performed masterpiece of vocal fireworks, on Saturday, March 10. The all-star bel canto cast, led by Maurizio Benini, features Angela Meade in the title role of the murderous Queen of Babylon, who squares off in breathtaking duets with Arsace, a trouser role sung by Elizabeth DeShong. Javier Camarena, Ildar Abdrazakov, and Ryan Speedo Green complete the cast.


Black Panther – Palace cinemas Friday

Breaking the Twitter record for 2018, Marvel Studios’ Black Panther has stockpiled more than five million tweets and growing, on the film’s official social platform and is said to be the first mega budget film with an African-American director and a predominately black cast led by Hollywood a-listers.

The wait is over! Marvel Studios’ Black Panther finally hits theatres this Friday, February 16. The in demand film will be shown at all Palace cinemas on the opening day.
Dubbed a cultural phenomenon and already ranked as the most tweeted about film in the world this year, Marvel Studios’ highly anticipated Black Panther is on track to become Fandango’s top pre-seller of all superhero films.
Black Panther follows T’Challa who, after the death of his father, the King of Wakanda, returns home to the isolated, technologically advanced African nation to succeed to the throne and take his rightful place as king. But when a powerful old enemy reappears. T’Challa’s mettle as king and Black Panther is tested when he is drawn into a formidable conflict that puts the fate of Wakanda and the entire world at risk. Faced with treachery and danger, the young king must rally his allies and release the full power of Black Panther to defeat his foes and secure the safety of his people and their way of life. Dubbed Black Panther stars Chadwick Boseman, Michael B. Jordan, Academy Award® winners Lupita Nyong’o and Forest Whitaker, Golden Globe Award® nominee Martin Freeman and Andy Serkis, Academy Award® nominees Angela Bassett and Daniel Kaluuya, Golden Globe® winner Sterling Brown, Danai Gurira and Letitia Wright. The film is directed by Ryan Coogler and produced by Kevin Feige with Louis D’Esposito, Victoria Alonso, Nate Moore, Jeffrey Chernov and Stan Lee serving as executive producers. Ryan Coogler & Joe Robert Cole wrote the screenplay.