JSE slips most stocks rose

Caribbean Cement factory the company's stock closed at a 52 weeks' high on Friday

Caribbean Cement factory the company’s stock closed at a 52 weeks’ high on Friday

Activity on the Jamaica Stock Exchange, resulted in the prices of 15 stocks rising, 9 declining as 31 securities changed hands, ending in 5,015468 units trading, valued at $22,480,880, with 6 stocks closing at 52 weeks’ high, in all market segments. Only 7 stocks gained in the main market with 5 declining.
TheJSE Market Index lost 248.58 points to 97,382.18, theJSE All Jamaican Composite index fell 277.83 points to close at 107,786.05 and the JSE combined index dropped 186.25 points to end at 100,134.89.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 8 stocks with bids higher than their last selling prices and 3 with offers that were lower.
JSe sum 19-6-15rvIn trading, Cable & Wireless ended with 400,245 units changing hands, 1 cents down at 44 cents, there is some amount of selling at the 48-50 cents range and not much buying showing before 40 cents, with the full 2015 fiscal year results showing a large loss. The Gleaner contributed 670,000 shares with the price rising 3 cents, to end at $1.08, Jamaica Stock Exchange ended at a new all-time high of $7 with 58,055 shares trading to gain of 65 cents, ahead of the ex-dividend date of June 23. JMMB Group had 215,427 shares changing hands with the price remaining at $7.50. National Commercial Bank trading in only 32,931 shares closed at $29.50, Pan Jamaican Investment contributed 20,962 shares with the price slipping 1 cent, to $63.50, JSE fn qts 19-6-15 the stock traded earlier at a 52 weeks’ high of $65, Radio Jamaica closed at a new 52 weeks’ high of $3.20 with 50,000 shares changing hands. Sagicor Group contributing 185,000 shares with the price easing 1 cent, to $12.60. Scotia Group contributing 32,351 shares with the price rising just 1 cent to $23.15, Scotia Investments had 32,219 shares trading between $27.28 and the last price of $29.85, Supreme Ventures contributed 2,148,484 shares with the price falling 20 cents, to $3.50 and Proven Investments contributing 94,708 shares with the price closing unchanged at 22 US cents.

Falling prices dominate with 15 down

 Carreras dominated with $64.8M in value

Carreras dominated with $64.8M in value

Activity on the Jamaica Stock Exchange, resulted in the prices of 7 stocks rising, 15 declining as 28 securities changed hands, ending in 4,785,392 units trading, valued at $101,683,594, in all market segments as Carreras dominated trading with shares valued at $64.8 million. For the first time in a few weeks there were no stocks at new 52 week’s high at the close.
TheJSE Market Index lost just 3.39 points to 96,596.51, the JSE All Jamaican Composite index fell 3.79 points to close at 108,907.87 and the JSE combined index gained 28.63 points to end at 99,293.77.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 19 stocks with bids higher than JSE sum 16-6-15 their last selling prices and 7 with offers that were lower, an indication that the number of stocks likely to gain on Wednesday should outnumber the ones declining.
In trading, Cable & Wireless put on 2 cents with 431,297 units changing hands to close at 46 cents. Caribbean Cement rose 1 cent while trading 121,350 shares at $5, Carreras gained 28 cents in trading 1,341,078 to end at $48.35, with NCB Capital Market s being the main broker selling and Sagicor Investments the main broker buying. Grace Kennedy suffered a decline by 40 cents with 8,919 shares changing hands at $63.50, Hardware & Lumber traded 50,000 shares at $18, with just one trade. Jamaica Broilers slipped 30 cents with 23,654 shares trading to close at $5.20, followed by Kingston Wharves that fell 15 cents to $6.40 with only 725 units trading, JSE fn Qts 16-6-15National Commercial Bank traded 528,170 units to close at $29.46 down from the last traded on Monday of $30, as the price slipped 54 cents. Sagicor Group fell 30 cents to $12.30 with 94,210 shares changing hands. The price of Sagicor Real Estate Fund rose 10 cents, with 42,375 shares changing hands, to end at $7.70. Scotia Investments fell 72 cents as 25,291 shares traded to close at $26.28 and Proven Investments traded 595,502 shares at 21 US cents, down from 21.05 US cents on Monday, after 467,745 units were traded in the morning session, at 22 US cents.

JSE up slightly in early trading

With an hour of trading on the Jamaica Stock Exchange having elapsed, Proven InvestmentsJSE int 10.30 - 16-6-15Investments traded 467,745 shares at 22 US cents, up from 21.05 US cents on Monday. National Commercial Bank traded 524,170 units at $29.45, the stock last traded on Monday at $30 and Medical Disposables had 101,679 units changing hands at $2.20 for a loss of 10 cents.
The main market indices rose with a total of 5 stocks have declined and 4 are up. The main market has so far had 12 stocks being active while only 3 stocks traded in the junior market for a total of 15 securities trading accounting for 1.13 million shares as the market continued in a subdued manner since last week.
TheJSE Market Index lost 160.81 points to 96,760.71 the JSE All Jamaican Composite index rose 179.74 points to 107,091.40 at and the JSE combined index dropped 190.63 points to end at 99,382.39.

AJ Index falls 3,000 points in 6 days

Scotia Group fell again on Friday to $23.10 from its recent 52 weeks' high of $27, and is the major factor behind the 3,000 points fall in the market index.

Scotia Group fell again on Friday to $23.10 from its recent 52 weeks’ high of $27, and is the major factor behind the 3,000 points fall in the market index.

The Jamaica Stock Exchange, closed out the week on a negative note with the prices of 8 stocks rising, 17 declining as 35 securities changed hands, ending in 3,084,121 units trading, valued at $28,761,098. A total of 3 stocks traded to close at a new 52 weeks’ high, in all market segments.
Since last week Friday the main market has slipped 5 days out of the 6 trading days. The last three days recorded negative movements in the indices. The JSE Market Index lost 805.17 points to close at 96,528.19, and is down over 2,700 points from last week’s Thursday close, the JSE All Jamaican Composite index fell 899.97 points to close at 106,831.50 and has lost more 3,000 points since last week’s Thursday close. The JSE combined index dropped 989.73 points to end JSE sum 12-6-15at 99,230.69 on Friday and lost just over 2,600 points since Thursday, last week.
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 8 with offers that were lower, a negative indicator for Monday’s trading.
In trading, Cable & Wireless ended with 77,630 shares changing hands and closed unchanged at 44 cents, Carreras traded 213,902 shares to close at $49 after losing 50 cents, Desnoes & Geddes ended with 106,421 shares changing hands with the price declining 45 cents to $7.55, Grace Kennedy traded 10,133 units to close at $63.95. Jamaica Broilers closed at a new 52 weeks’ high of $5.75 to gain 35 cents, with 431,083 units changing hands,JSE clse qts- 12-6-15 Jamaica Stock Exchange ended with 15,415 shares trading and closed at $6.35, to lose 15 cents. JMMB Group gained 8 cents to end at $7.30 with 134,900 shares, Kingston Wharves lost 49 cents with 8,000 shares trading at the close at $6.51, National Commercial Bank had 36,290 units trading unchanged at $29.50. Sagicor Group traded only 31,267 shares, was quoted at $12.06 when trading ended, with a loss of 34 cents. The stock traded at a new 52 weeks’ high of $12.50 during the day. Scotia Group had 301,432 shares changing hands at $23.10 with a loss of 50 cents, Sterling Investments saw 11,660 units trading at $13.40 and put on 5 cents, Supreme Ventures had 46,994 units changing hands at $3.65 for a 5 cents gain and Proven Investments 8% preference share traded 127,800 units at $5.

JSE main market slips

JSEDailyTrading280X150 The Jamaica Stock Exchange, ended with 13 stocks advancing, 10 declining as 30 securities changed hands, ending in 3,850,561 units trading, valued at $23,389,820. Trading closed with 7 stocks ending at new 52 weeks’ highs and 1 ending a new low, in all market segments.
The JSE Market Index lost 556.70 points to 97,333.36, the JSE All Jamaican Composite index fell 622.25 points to close at and the 107,731.47 JSE combined index dropped 542.27 points to end at 100,220.42.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows only 3 stocks with bids higher than their last selling prices and 6 with offers that were lower, an indication of the markets softening in the short term. JSE sum 11-6-15The junior market that recorded 3 gains to 2 declines showed weakness at the end with 3 stocks closing with lower offers than the last sale and only 1 with the bid that was higher.
Stocks trading include, Barita Investments trading 24,000 shares at $2.65 for an increase of 14 cents, Cable & Wireless with 290,187 shares changing hands closing at 44 cents, Gleaner trading 500,000 shares gained 7 cents to close at $1.07, Hardware & Lumber closed with 5,950 shares trading to end at $19. Investors pushed Jamaica Stock Exchange 50 cents to close at $6.50 with 78,000 units changing hands, in continued favourable response to the company’s increased first quarter profit and the payment of a 53 cents dividend. Jamaica Producers had 7,450 units trading 10 cents lower at $18.55, JMMB Group saw 13,200 shares trading, to close 4 cents down at $7.22, down 24 cents, Mayberry Investments traded 623,497 stock units and lost 19 cents to end at $2.88, at the close there was a bid by Mayberry to buy 1,198,980 units at $2.88.JSE fn qts 11-6-15 National Commercial Bank had 315,733 shares trading with a gain of 10 cents to close at $29.50, Radio Jamaica traded 12,265 units at a new 52 weeks’ high of $3.01 by adding 1 cent, Sagicor Group trading at the close at a new 52 weeks’ high of $12.40 after putting on 10 cents with 113,740 shares changing hands. Scotia Group dropped 90 cents with only 5824 shares trading, to close at $23.50, Scotia Investments traded 7,000 stock units, to end at $26.28. Proven Investments traded 236,105 ordinary stock units at 21.05US cents, Jamaica Money Market Brokers 7.50% preference share trading 500,850 units at $2 while losing 3 cents.

Access almost private again

Proven upped its stake in Access in May, leaving few shares in the public's hands.

Proven upped its stake in Access in May, leaving few shares in the public’s hands.

Access Financial Services is virtually a private company again with Proven Investments having increased their stake in the junior market company and with the founder and Chief executive Officer having a large block. There is less than ten percent of the shares in public’s hands now.
On May 18, Proven acquired an additional 1,249,608 shares in Access Investments, thereby increasing its interest to 49.72 percent. In December last year, Proven bought 135,339,271 units in the financial micro lender when it picked up most of the shares held by Mayberry at the time, at a price of $9. in the latest audited report for Proven, Access is listed as a subsidiary of Proven. Normally, owning less than 50 percent plus one share in a company would result in a company being a subsidiary and less down to 20 percent, would qualify as an associate.
The stock has been trading recently at $17 each, with Access having reported improved results for the March quarter increasing by 72 percent to $157.6 million, up from $79 million in 2014. Marcus James in March this year transferred his 112,421,260 units to a company representing 41.6 percent of the issued shares leaving just under 9 percent in the public’s hands.

Proven Investments defying gravity

Proven Mb siggnDr 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

Hugh Hart Chairman of Proven Investments

Overvalued| It is still around 40 to 50 percent above the valuation of the vast majority of the stocks on the market. The real rub is that the earnings include a one off extraordinary item of US$4.2 million that should not form part of the earnings on which the value of the stock ought not to be based. Excluding this amount that swelled the reported profit, earnings per share would 0.48 US cents which gives a PE of 48 and not 14.
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.

Buyers are willing to buy proven at a PE of 48, by far the highest in the market.

The Jamaica Stock Exchange main market continues to struggle to move decisively away from the 108,000 point level, the previous point of resistance now turn support, on the all Jamaican composite index. In Friday’s trading the market pulled back from just under 110,000 points it closed ta on Thursday.
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.
JSe sum 5-6-15 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 JSE fn 5-6-15as 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

JSE closed at a new high on Thursday of $5

Activity on the Jamaica Stock Exchange, resulted in the prices of 12 stocks rising, 8 declining as 28 securities changed hands, ending in 29,030,930 units trading, valued at $172,290,893, in all market segments.The market continues to record new 52 weeks’ high with 4 new highs recorded at the end of trading in the main and junior markets.
The JSE Market Index rose by 850.14 points to 99,251.97, JSE sum 4-6-15the 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 JSE fnl qts 4-6-15of 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.

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

JSE traded at a new all-time high of $4.80 to record a gain of 220% for the year to date

Activity on the Jamaica Stock Exchange, resulted in the prices of 15 stocks rising, 10 declining as 42 securities changed hands, ending in 5,509,275 units trading, valued at $30,879,690, in all market segments.
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. JSE sum 2-6-15 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, JSE clse 2-6-15 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.