SOS — Page 2

SOS dividend consideration sends stock price flying

July 19, 2022 by IC Insider.com

Stationery & Office Supplies announced that the board of directors will consider the payment of a dividend at a meeting to be held on August 9, 2022 and with the stock price closing at a 52 weeks’ high of $15 and seems to be heading higher.
The company last paid a dividend of 16 cents per share on December 7 last year. The early announcement caught the market by surprise as investors bought 303,359 shares up to a 52 weeks’ high of $15, with the stock closing with the bid at $15.84 and the offer at $17.90 and gaining 135 percent for the year to date.
The likely early payment is signalling that the company could be switching to twice a year payout as well as the fact that the good results evident in the first quarter is continuing into the rest of the year.
Some observers are of the view that the dividend announcement by itself was unlikely to move the stock price by the amount in today’s trading and think investors are sensing a stock split.

SOS to make early dividend payout

With the stock price having risen and seems set to go higher the price is clearly entering into a split territory, considering that there are just 250 million shares issued with the top 10 holdings accounting for 90 percent and leaving only about 25 million units that are likely to trade short term. The possibility of a stock split coming up for discussion at the meeting considering a dividend seems probable but such an action if it were to occur would have to be communicated to the Jamaica Stock Exchange ahead of any meeting at which it was to be approved.
The March quarter profit rose 90 percent to $105 million over that for 2021 and ICinsider.com forecast earnings of $1.70 for the current year.

Filed Under: Company News, Dividends Tagged With: Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, SOS, Stationery and Office Supplies

SOS buys printing press, set for record profits

June 8, 2022 by IC Insider.com

Stationery & Office Supplies announced the acquisition of assets of D&K’s Printing and Office Supplies including 10 additional book manufacturing machines effective, Monday, June 6, 2022.

Stationery & Office Supplies is back in the TOP 10 but could fall in prive this week before moving higher.

The purchase will diversify the product range and increase the manufacturing capacity of the range of products produced by SEEK. Seek which was acquired in April 2018 produces exercise and hardcover books steno books and binder refills. The acquisition will allow them to print books with working in them such as receipts books, invoice books, graph paper and notebooks. In short, it expands the range of products that it can now print, some of which it currently sells which will improve profit margins.
The acquisition which is expected to contribute some 20-25 percent to Seek’s revenues, ICInsder.com gleaned and continues the process of acquiring strategic assets or businesses to accelerate business growth and will add 12 employees to the printing operation.
In 2021 revenues from the book manufacturing were $48 million and in 2019, some $62 million which is expected to hit around $80 million in 2022 and should reach into the $100 million range in 2023.
Revenues seem to be back to normal with January 2019 generating revenues of $344 million that were overtaken this year and June 2019 being $295 million which seems set to be exceeded in the June quarter as well. Based on the acquisition which will add to revenues and profit and the expected continuation of the robust first quarter revenue growth of 36 percent. Revenues for the rest of the year could accelerate, with the economy opening up since the first quarter.
The company gave a glimpse of what the rest of the year could be like, with SOS setting a new record for monthly sales, of $140 million in February, with sales reaching $173 million in March, 25 percent higher than February. If the trend continues into the second quarter, revenues could reach $480 million and may well continue the acceleration to the end of the year.
ICIinsider.com has upgraded earnings to $1.70 excluding the $23 million gain on the sale of property in the first quarter and that would put the stock at a PE well under 10 times this year’s earnings, assuming no major negative developments that could impair revenues and profits.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Acquisition, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, SOS, Stationery and Office Supplies

Rebound for Stationery & Office Supplies

August 11, 2021 by IC Insider.com

Stationery & Office Supplies is enjoying a strong rebound from the COVID-19 afflicted 2020 financial year, with profit swinging from a loss of $22 million in the June 2020 quarter to a small profit of $3 million in the 2021 second quarter and well off from a profit of $34 million in the 2019 June Quarter.

Stationery & Office Supplies Montego Bay

Profit rose over 168 percent year on year for the first 6 months of 2021, from $21.8 million in 2020 to $58.4 million.
Sales surged 76 percent in the June quarter to $238 million from the 2020 covid-19 battered quarter and 17 percent for the half year to $551 versus $472 million in the 2020 period. While making a good recovery, this year’s revenues trail that of 2019 by some degree. Revenues in June 2019 quarter were 24 percent higher at $295 million and for the half year, 15 percent greater than the $633 million generated in 2019.
The cost of goods sold rose 61 percent in the quarter to $117 million and 7 percent for the half year to $261 million. Gross profit margin rose to 51 percent in the quarter, with gross profit of $120 million up from 46 percent in 2020, with gross profit of $63 million. For the half year, gross profit margin rose to 53 percent from gross profit of $290 million up from 46 percent in 2020, with gross profit of $228 million.
Administrative and general expenses rose 54 percent to $82 million from $55 million in 2020 during the June quarters and climbed a milder 16 percent to $163 million from $141 million for the six months period. Selling and promotional costs rose from $14.6 million in the June 2020 quarter to $22 million and moved from $38 million for the six months in 2020 to $43 million in 2021.
Depreciation, amortisation and impairment charges were slightly down in the quarter at $8.2 million versus $8.7 million in 2020 and $16.5 million compared to $17.8 million for the half year. Finance and foreign exchange cost accounted for $5.2 million in the quarter versus $6.4 million in 2020 and $10 million in the six months period this year, from $12 million in 2020.
“History has shown that SOS’s second quarter is normally the slowest period during the year, but even though we continue to suffer through the Covid-19 virus and all of the issues that come along with it, SOS was able to post a profit, with significant improvements compared to the second quarter of 2020. These are good indicators that Jamaica’s economy is continuing to rebound and as we progress through the summer months, we will see the return of children to school which will also help improve the sales of SEEK back to school products in the market,” stated David McDaniel, Managing Director and Marjorie McDaniel, Chief Administrative officer in their joint commentary of the results.
Earnings per share for the second quarter for 2021 amount to one cent and 23 cents for the half year. ICInsider.com projects full year earnings at 85 cents per share and $1.50 for 2022. The stock traded at $7.50, with a PE of 9, based on 2021 earnings and that compares favourably with the market average PE of 12.4.
The company remains in a healthy financial position at the end of half year period. At the end of June, shareholders’ equity stood at $668 million, with long term borrowings at $114 million and short term borrowings at $39 million. Gross cash flow amounts to $89 million but, with growth in working capital and repayment of loans, the company ended the half year with net negative flows of $6 million. Current assets stood at $509 million, including inventories of $276 million, trade and other receivables of $102 million, and cash and bank balances of $91 million. Current liabilities ended at $126 million, with net current assets ending at $382 million.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Jamaica Stock Exchange, Jamaican stocks, junior market, SOS, Stationery & Office Supplies

Virus hits SOS in 2020 Q1

June 16, 2020 by IC Insider.com

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The 2019 financial year was an excellent one for Stationery and Office Supplies, with record revenues of just over $1.2 billion, resulting in net profit rising 47 percent to $135 million over the previous year.
On the heels of the robust 2019 performance, SOS started the 2020 fiscal year on a much more somber note as the Coronavirus intervened and changed what started as a promising quarter and ended with lost sales in the final month. The Deputy Managing Director, Allan McDaniels and Marjorie McDaniels, Chief Operating Officer in their joint report accompanying the interim results, reported that the ”revenues dropped 17 percent year over year for March, after a strong showing for the first two months of the quarter.” The directors also stated that the company “was only able to deliver on one of three planned shipments of goods for the first four months of the year to Grenada.” as a result of the disruption caused by the Coronavirus.”
SOS closed out its first quarter with sales of $337 million, a 2 percent decline versus the $343.5 million in comparative period for 2019, net profit dropped a more aggressive 24 percent, from $57.4 million in 2019 to $43.8 million in 2020.
Direct expenses were down 2 percent to $172 million, but the Gross profit margin for the quarter was constant at 49 percent in the 2020 quarter, similar to the 2019 first quarter. Gross profit closed out the quarter at $165 million down slightly from $168 million in the March 2019 quarter.
Net profit margin before finance cost declined for the March quarter to 14 percent with $45.54 million generated compared to $60 million for a 17 percent margin, in 2019.
Administrative expenses grew by 11 percent to $86 million, but selling and promotional expenses were effectively flat at $23 million. SOS realized $3.3 million profit from the disposal of property and equipment, helping to offset some of the reduced operating profit for the period.
Earnings per share came out at 18 cents for the quarter, down from 23 cents for the 2019 first quarter. IC Insider.com is forecasting $1 per share for PE of six times earnings, but that depends on how quickly the company can recover from the dislocation to sales.
The operations generated $50 million in cash inflows and the company paid out a net amount of $22 million in increased working capital, capital expenditure and loan repayment.
Cash and equivalents rose 66 percent between March 2019 and 2020 to end at $90.4 million. Current assets increased by 8 percent to $521 million with trade and other receivables accounting for $173 million, down from $182 million from a year ago. Inventories ended at $226 million from $223 million at the end of March 2019. Current liabilities stood at $120 million down 23 percent year over year from $156 million. Current liabilities include borrowings of $30 million and payables of $91 million. Overall total loans payable amounted to $91 million. Shareholder’s equity climbed to $640 million up from $540 million at the end of March 2019 and $597 million at the end of December last year.
The stock traded at $6 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 6 times 2020 earnings.

Filed Under: Company News, Company Results Tagged With: Emerging market stock, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, SOS, Stationery and Office Supplies, Trading Activity

Worse day for Jamaican Stocks

March 5, 2020 by IC Insider.com

The Jamaica Stock Exchange suffered it worse day with a fall of 24,224.80 points off the Composite index on Thursday, beating the 14,424.69 points fall on Tuesday when the market closed at 511,165.47.
Main Market stock suffering significant declines include NCB Financial $1.55, Caribbean Cement $2, PanJam Investments $2.01, Scotia Group $2, Sygnus Credit $3.30 and Wisynco off $2.45.
The Junior Market that has been under pressure some months and fell 99.62 points on Wednesday dropped another 102.35 points on Thursday, to close at 2,656.41. Junior Market stocks that suffered the greatest losses that to Thursday’s sharp fall include Access Financial down $2.11, Blue Power off 56 cents, Cargo Handlers with a loss of 96 cents Express Catering falling 46 cents, General Accident down 80 cents, Knutsford Express off by 65 cents and Stationery and Office Supplies down 75 cents.

Filed Under: Breaking News, Feature Stories, JSE Combined, Stock Market Tagged With: Access Financial, Blue Power, Cargo Handlers, Daily Trading, Emerging markets, General Accident, Jamaica Stock Exchange, Jamaican Stock, Jamaican stocks, Knutsford Express, NCB Financial Group, PANJAM Investment, Scotia Group, Seprod, SOS, Sygnus Credit Investments, Wisynco Group

Two financial stocks return to TOP 10

August 20, 2017 by IC Insider.com

Unlike last week when there were several changes to the TOP 10 lists, this past week had just two changes, with Lasco Financial returning to the junior market and Sagicor Group to the Main market lists.
CAC 2000 dropped out of the Junior Marketlisting, allowing for the return of Lasco Financial that dropped sharply in price, to close the week at $3.40. Mayberry Investments was edged out by Sagicor Group, dropping from $34.35 to $31.75 at the close of the past week.
Former TOP main market value stock, Barita Investments moved up from $9.40 during the previous week to close at $11.60 for a gain of more than 273 percent since September last year. The most recent Initial Public Offering, Stationery and Office Supplies that exited the TOP 10 after listing in the prior week, is fluctuating between $4 and just over $5, and should undergo some amount of wide price movements until demand and supply find some balance. JMMB Group climbed to $23 on Friday before closing back at $21.45, supply has dried up for this stock and it seems to be readying to make an early exit in the next few weeks.
The average PE ratio for the Junior Market Top stocks is at 7.5 and the PE for the main market TOP 10, ends the week at 7.2. The average PE for the overall main market trades at 13.3 and 13.2 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 42 percent to the average of the market for Junior Market Top stocks and it remains at 46 percent for the main market.

Filed Under: Buy Rated, JSE Combined, Stock Market Tagged With: Barita Investments, Berger Paints, CAC2000, Caribbean Cement, Caribbean Producers, Emerging market, Emerging market stocks, General Accident, Jamaica Broilers, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, Radio Jamaica, Sagicor Group, SOS, Stationery & Office Supplies

Major changes to TOP 10 stocks

August 14, 2017 by IC Insider.com

Barita jumps TOP 10 with more than 200% gain since September 2016

Investors pushed the price of Barita Investments to $9.40 during the week and drove newly listed Stationery and Office Supplies to $5.10 after it was listed on Thursday moving both out of the top flight of stocks. In addition, four others changed places with new listings.
Barita entered the list when we started the TOP 5 back in September last year, at $3.11 and has gained more than 200 percent since then while SOS is up 154 percent from its IPO price. Both stocks have more room for growth.
tTech reported lower profit in the second quarter to June with lower revenues resulting in a lower earnings forecast for 2017 and dropped out of the top list. CAC 2000 having slipped out of the listing the prior week returned this past week and was joined by Dolphin Cove to replace the two that exited the listing.
Main market stock, Berger Paints fell during the week from $19 to trade at $16 and moved back into the listing. Moving in are Grace Kennedy, Mayberry Investments and PanJam Investment. Stocks graduating from the top flight are Seprod as the price rose during the week to $33.33 from $30, Sagicor Group moving from $31.50 to $34.35 and Salada Foods that closed at $9.50, up from $9.
The average PE ratio for the Junior Market Top stocks is at 7.6 and the PE for the main market TOP 10, ends the week at 7.2. The average PE for the overall main market trades at 13.2 and 12.9 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 41 percent to the average of the market for Junior Market Top stocks and 46 percent for the main market.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, Cable & Wireless, CAC2000, Caribbean Cement, Caribbean Producers, Carreras, Emerging market, Emerging market stocks, General Accident, Jamaica Broilers, Jetcon Corporation, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, NCB Financial, Radio Jamaica, Sagicor Group, SOS, Stationery & Office Supplies, tTech

Will Barita jump TOP 10?

August 8, 2017 by IC Insider.com

Barita closed at $8 on Friday.

News emerged during the past week that directors at Barita Investments was considering a bid to purchase the majority of its shares.
Investors responded immediately by removing just about all offers that were posted on the trading platform of the Jamaica Stock Exchange, the stock climbed to $8 and only require a small increase to leave the top list.
Main market Berger Paints rose during the week from $18 to trade at $19 and was edged out of the top list by Pulse Investments that fell sharply in price to close with a bid of $1.75 after the price fell during the week.

Recent TOP 10 billing, NCB Financial Group that recently fell out of the top list closed the week at $94.99 in response to continued demand flowing from strong increase in nine months profit against a back drop of minimal selling of the stock.
Stationery and Office Supplies (SOS) will start trading on Wednesday, August 9, when the price is expected to surge, based on the heavy over subscription at the initial public offering, with more than 1,200 applications for shares. This stock could be out of the top listing very soon.
Other junior market stocks activity, CAC 2000 fell out of the top listing and Lasco Manufacturing returned to the top listing.
The average PE ratio for the Junior Market Top stocks is at 6.7 and the PE for the main market TOP 10, ends the week at 7.4.

The average PE for the overall main market trades at 13.3 and 12 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 percent to the average of the market, leaving stocks with room for growth in the months ahead.
Stocks to watch|The stocks that investors should keep an eye on this week include, Barita Investments, JMMB Group, Stationery & Office Supplies, NCB Financial, Jetcon Corporation.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, CAC2000, Caribbean Producers, Emerging market, General Accident, Jamaica Broilers, Jamaica Stock Exchange, Jamaican stocks, Jetcon Corporation, JMMB Group, junior market, Key Insurance, Lasco Financial, Medical Disposables, NCB Financial, Radio Jamaica, Sagicor Group, SOS, Stationery & Office Supplies, tTech

NCB & Express Catering drop out

July 31, 2017 by IC Insider.com

NCB Financial Group jumped to $80 on Friday & exited the top 10.

Shares of Express Catering were in strong demand during the week, with price closing at $5.20 for gains of 247 percent from the initial public issue price of $1.50. At the close of the week the stock was out of the TOP 10 and so was NCB Financial Group with the price climbing to a record $80, at the close on Friday.
Stationery and Office Supplies (SOS) will not start trading until August 9, when it is expected to surge in price based on the heavy over subscription of 3.5 times oversubscribed with more than 1,200 applications.
Trading in the past week returned to a bullish mood, with the Jamaica Stock Exchange main market index hitting new highs on Thursday and Friday. The trend is expected to continue this coming week as investors react to some new results.
Caribbean Flavours and CAC 2000 that fell out of the top listing at the end of the prior week return this week with the exit of Express Catering , Lasco Financial that rose to $3.80 and Caribbean Cream that returned to $7.
The only movement in and out of the TOP 10 in the main market were Salada Foods coming in as NCB dropped out with gains in the price in the past week.
The average PE ratio for the Junior Market Top stocks is down at 7 with SOS in at a PE of 5 times 2017 earnings. The PE for the main market TOP 10, holds at 7.3. The average PE for the overall main market, remains at 13 and 12 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 Junior Market stocks now trade at an average discount of 42 percent to the Junior Market average, while those in the main market are trading at a 44 percent discount, to the average of the market, leaving stocks with room for growth in the months ahead.
NCB Financial and Express Catering the two stocks IC Insider.com listed as our market watch make gains during the past week. NCB has clearly broken out from a triangle of consolidation and seems to be heading higher. Express Catering could possibly rise higher but appears to be fully valued at a PE of 20 currently.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, CAC2000, Caribbean Cement, Caribbean Producers, Carreras, Express Catering, General Accident, Grace Kennedy, Jamaica Broilers, Jetcon Corporation, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, NCB Financial, Radio Jamaica, Sagicor Group, SOS, Stationery and Office Supplies, tTech

Express Catering enters TOP 10

July 24, 2017 by IC Insider.com

Ian Dear, Managing Director of Express Catering

Trading started in Express Catering shares on Friday on the Junior Market, with the stock enjoying strong demand up to the $3 level. New information obtained this past week from the prospectus resulted in the earnings for this company being upgraded and it is included in the TOP stocks.
Importantly for Express Catering, the prospectus states that effective at the end on of May, the contract that gave rise to the payment of management fees was cancelled. The amount, the equivalent to 9 percent of revenues or roughly US$1.4 million will no longer be paid and should go towards boosting the bottom-line, and should result in the earnings per share around J$0.26 cents for 2018 fiscal year. The change means it is now a part of the TOP 10 Junior Market stocks. With the strong demand for the stock, it should spend just a short time in the list. The same out turn seems likely for Stationery and Office Supplies (SOS) once it starts to trade, with the IPO being nearly 4 times oversubscribed with more than 1,000 applications received for the 52 million shares.
With the initial public offers now out of the way, trading in the secondary markets saw more energy in the past week than for the previous two, with some stocks that were weak before, finding buying at the lower prices.
ISP Finance price rose to $14 after falling to $11 during the past week, but big declines in the prices of AMG Packaging and Caribbean Cream pushed out ISP as well Caribbean Flavours and CAC 2000 out of the top listing.
The only movement in and out of the TOP 10 in the main market were Sagicor Group that spent just one week a short while ago, coming back, as Cable & Wireless dropped out with a big gain in the price in the past week of 17.5 percent.
The average PE ratio for the Junior Market Top stocks is down at 6.6 with SOS in at a PE of 5 times 2017 earnings. The PE for the main market TOP 10, holds at 6.7. The average PE for the overall main market, remains at 13 and 12 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 Junior Market stocks now trade at an average discount of 45 percent to the Junior Market average, while those in the main market are trading at a 49 percent discount, to the average of the market, leaving stocks with room for growth in the months ahead.
Last week IC Insider indicated that two stocks to watch were Cable & Wireless with the price around support level and NCB Financial with very limited number of stocks currently being offered. Both stocks bounced with the former rising over 17 percent to 94 cents and NCB rising to $75 from $71.50. Active supply for NCB is very low currently and technical chart suggests a big break out for it very soon. NCB is to be watched for a possible break towards $80 and Express Catering to well over $3.