Proven Investments is offering 68.6 million or 25 percent of the shares it currently owns in Access Financial Services for sale, at $32 per share starting today with the issue not expected to be open beyond today.
The prospectus suggests that the offer could be upsized if deemed appropriate but information obtained by IC Insider.com indicates that it will not be. Proven bought the block of shares mainly from Mayberry Investments on December 30, 2014, at $9 each, to become the largest shareholder. On several occasions in the past, the CEO Christopher Williams maintained the view that they had no intention of selling the shares, but that was before they bought 20 percent of JMMB Group from NCB Group in December 2018, costing $9 billion and financed by debt. With JMMB Group going back to the market to issue new shares, Proven will need to have funds to buy enough shares to maintain their 20 percent holdings if they intend to account for profits on an equity basis.
At $32, the stock is an attractive buy for investors looking for a value play investment. It is priced under 10 times current year’s earnings and could double within a year.
Access is one of the most rewarding investment for shareholders over the years, with an outstanding record of increased profits high return on equity and good and consistent dividend payments. Return on equity slipped in the past two years as interest rates and new accounting standards took effect but the company continues to grow. In recent years, growth was boosted by acquisitions of other micro-lending companies. Last year the company acquired Embassy Loans located in the Florida area in the United States.
The company realized Net Operating Income for the quarter ending June 2019 of $539 million of which the new US subsidiary Embassy Loans contributed $151 million. Interest income from loans increased by $8 million or 2 percent to $408 million while net fees and commission for the period was $153m. For the period, Embassy Loans contributed $44 million and $103 million respectively to the group’s Interest and fee income.
Christopher Williams, Proven Investments CEO.
Operating expenses for the quarter, increased by 90 percent or $179 million compared to the corresponding period ended June 2018, resulting from an increase in allowances for credit losses, based on the implementation of the IFRS 9 provisioning methodology and the inclusion of Embassy’s operating expenses for the quarter amounting to $110 million.
Net profit after tax for the quarter ended June 2019 declined 24 percent to $165 million compared to the 2018 period and resulted in earnings per share of 60 cents. Annualised earnings work out at $2.40, at a PE of 15, the value would be $36.
Access will generate cash flow from profits monthly and increase the amount available for lending, as such, earnings per share should be in the $3 region for the current year putting the likely value around $45.
The stock tends to be scarce and the potential for long term growth remains positive if a bit diminished in recent times with pressures on interest margins. Consolidation in the industry locally is to be expected and Access should be able to take over more of the smaller players going forward. It is most likely that Access will move most of the administrative functions to Jamaica with the lower cost than in Florida and therefore cut the cost of the US operations.
Stock prices continue to fluctuate in trading on the main market of the Jamaica Stock Exchange ended on Wednesday with the market indices falling following Tuesday’s gains.
The average volume and value for the month to date amounts to 1,250,992 units valued at $9,598,525and previously an average of 1,048,146 units valued at $9,679,760 for each security traded. The market closed out August with an average of 1,743,431 units valued at $9,907,963 for each security traded.
PanJam Investments declined $1.45 while ending at $102.55 after exchanging 17,814 shares, Proven Investments added $2.20 to end the day’s trade at $40 with 6,300 shares changing hands. Sagicor Group closed $1 higher to settle at $70 in trading 54,449 shares, Scotia Group advanced $3.15 to end at $61.15 exchanging 780,883 shares and Seprod ended the day’s trade $2.50 higher to settle at $55.50 with 15,652 units changing hands.
An equal number of stocks trading on the Jamaica Stock Exchange ended on Tuesday with gains versus those falling but the main market indices ended up from Monday’s close. 
The average volume and value for the month to date amounts to 1,048,146 units valued at $9,679,760 and previously an average of 1,067,905 units valued at $9,578,929 for each security traded. The market closed out August with an average of 1,743,431 units valued at $9,907,963 for each security traded.
Proven Investments added 31 cents to end the day’s trade at $37.80 with 74,758 shares changing hands, Pulse Investments traded 59 cents higher to close at $3.64, after exchanging 27,500 shares, Sagicor Group climbed $2 higher to settle at $69 in trading 87,700 shares, Scotia Group gained 50 cents to end at $58 exchanging 303,352 shares. Seprod ended the day’s trade $1.40 lower to settle at $53 with 27,451 units changing hands, Supreme Ventures lost 50 cents to close at $26.50 exchanging 454,549 shares and Wisynco lost 40 cents, settling at $23 with trades of 308,695 units.
NCB Financial settled at $208, after dropping $6.90 with 622,798 units traded, Proven Investments gained 49 cents to end the day’s trade at $37.49 with 1,953 shares changing hands, Pulse Investments traded 35 cents lower to close at $3.05, in exchanging 27,095 shares. Sagicor Group lost $3 to settle at $67 in trading 796,501 shares, Salada Foods fell $1 to $31, after exchanging just 500 shares, Seprod ended the day’s trade $1.70 lower to settle at $54.40 with 20,647 units changing hands. Supreme Ventures lost $1 to end at $27 exchanging 327,441 shares, Sygnus Credit Investments gained 78 cents after trading 66,897 shares to settle at $23.88 and Wisynco lost 47 cents, settling at $23.40 with trades of 115,428 units.
Trading on the main market of the Jamaica Stock Exchange ended on Friday with advancing stocks outnumbering declining ones two to one but the market indices ended down.
Proven Investments lost 50 cents and ending the day’s trade at $37 with 5,940 shares changing hands. Salada Foods climbed $2 to $32, after exchanging 60,276 shares, Scotia Group gained 50 cents to end at $57.50 with trades of 77,639 shares, Seprod advanced $2.59 to settle at $56.10 with 4,900 units changing hands. Supreme Ventures gained 40 cents to end at $28 exchanging 349,173 shares, Sygnus Credit Investments lost 90 cents after trading 13,267 to settle at $23.10 and Victoria Mutual Investments added 50 cents after 401,515 units changed hands to close at $8.
Salada Foods lost $2 to settle at $30 with 1,600 shares changing hands, Seprod fell $1.49 to settle at $53.51 with 26,060 shares changing hands, Supreme Ventures lost 40 cents to close at $27.60 with an exchange of 61,648 shares. Sygnus Credit Investments gained $1 and completed trading of 36,516 shares at $24, Victoria Mutual closed trading of 304,823 units after falling 50 cents to end at $7.50 and Wisynco Group added $1 in trading 299,683 shares to close at $24.
The Jamaica Stock Exchange ended with 12 securities rising, 13 with losses and 13 traded firm as 38 securities traded on Wednesday, compared to 34 stocks trading on Tuesday. 
The market closed out August with an average of 1,743,431 units valued at $9,907,963 for each security traded.
Sagicor Group lost $1.50 to settle at $70 with 402,329 shares changing hands, Seprod rose $1 to settle at $55 with 56,476 shares changing hands Supreme Ventures gained $1 to close at $28 with an exchange of 6,777,393 shares and Wisynco Group fell $2 in trading 374,927 shares at $23.
The Jamaica Stock Exchange ended with 18 rising, 12 with losses and 4 traded firm as a total of 34 securities traded on Tuesday compared to 33 trading on Monday. 
NCB Financial rose $4 to end at $213, with an exchange of 532,498 stock units, Panjam Investment rose 98 cents in trading of 12,485 units to close at $101.98. Sagicor Group added 49 cents to settle at $71.50 with 37,183 shares changing hands, Scotia Group fell 49 cents to close at $57 with an exchange of 23,164 shares, Seprod lost $2.50 to settle at $54 with 34,752 shares changing hands and Wisynco Group gained 50 cents in trading 133,235 shares at $25.
NCB Financial dropped $4 to end at $209, with an exchange of 28,586 stock units. Seprod gained $3 to settle at $56.50 with 112,050 shares changing hands, Sygnus Credit Investments declined $2 in trading 13,779 shares at $23 and Wisynco Group closed trading of 101,447 units and gained $1.50 to end at $24.50.
The Jamaica Stock Exchange ended trading on Friday with the JSE All Jamaican Composite Index rising 1,052.67 points to 564,753.60 even as declining stocks exceeded those rising.
JMMB Group gained 90 cents to settle at $48.90 with 364,022 shares changing hands. Mayberry Investments lost 49 cents to end at $8.81 with 185,343 stock units trading, Mayberry Jamaican Equities shed 48 cents to end at $12, trading 21,617 shares, MPC Caribbean Energy gained $22.66 to end at all-time high of $153.06, in trading 520 shares, NCB Financial rose $4 to end at $213, with an exchange of 553,993 stock units. Sagicor Group fell $1.49 to settle at $71.01 with 6,406 shares changing hands, Salada Foods fell 50 cents to close at $32 with an exchange of 3,571 shares, Seprod lost 50 cents to settle at $54 with 64,415 shares changing hands and Sygnus Credit Investments rose $1 in trading 214,718 shares at $25.