Sterling’s stock split effective November 27

Sterling Investments jumps to a high of $19 after split announcement.

The record date of the recently approved 5 for 1 stock split for Sterling Investments will be November 27, the company announced.
The split aimed at increasing the liquidity of the stock was approved by shareholders at an Extraordinary General Meeting on October 8.
Sterling’s most recent results to September, showed that the company’s fundamentals to be healthy, with gross revenues for the period hitting $134 million for the nine months to September 2018, an increase of 44 percent over revenues of $93 million in the similar period in 2017. Profit after tax grew 53 percent to $90 million for the nine months ended September, compared to $59 million in 2017.
For the September quarter, revenues rose to $56 million from $31 million in 2017, resulting in profit after tax for the quarter of $38.7 million versus $16 million in 2017. The 2018 result compares well with the full year results for 2017 when profit of just $52 million was realized from $92 million in revenues.
Sterling garnered $74 million in foreign exchange gains for the nine months period compared to just $11 million for the similar period in 2017 and $35 million versus $9 million in the quarter. Some of that seems set to be reversed in the final quarter of the year as the Jamaican dollar has since revalued and is unlikely to be reversed before year end.
The company reported that details of the upcoming rights issue will be announced shortly. IC gathers that the plan was originally, for the split to have followed the rights issue, but that seems to have changed with the announcement of the date for the split.
Shareholders’ equity increased from $895 million at September 2017 to $922 million at September 2018 while total assets under management amounted to $1.27 billion.
The stock last traded at $20.50 on the Jamaica Stock Exchange up from from $14.50 at the time the proposed split was announced in mid September.

Pulse split should be 4 not 2

I sometimes wonder who advises company management. The decisions they often make, while seeming to be well intentioned, raise critical questions about what they expect the out turn to be.
Pulse Investments is a case in point. The directors propose to consider the splitting of the issued shares of the company into two units for each one currently issued.
Last year, in a hurriedly called extra ordinary general meeting, the company approved an increase in its authorised share capital and sanctioned the board proceed with a rights issue of share. This was after a resolution was belated inserted on the agenda of at the 2016 Annual General Meeting to approve a rights issue which was forced by shareholders into a postponement.
The company currently has 271,789,674 issued shares, the split would put the total up to 543,579,348 units. The company’s stock last traded on the Jamaica Stock Exchange at $8.05 and carries a PE of 6 compared to 13 for the main market.
From all indications, with the company’s PE ratio well below the general market, the company must be awaiting a greater uptick in stock price before going back to shareholders for more funds, a two for one split is not likely to do the work to get the price more in line with the market.
The problem is that Pulse is not a very liquid stock with just 271 million units issued. From my estimation the board should be considering a split in the order of 4 to 1 that would raise the issued shares to over 1 billion shares. Such a split would most likely excite the market and help move the stock upwards in price. The proposed 2 to 1 is not going to do it. With the Board Meeting is set to be held on Monday, May 22, it is not late for the directors to change their minds.

2 for 1 stock Kingston Properties stock split

Gary Sinclair chairman of Kingston Properties

Shareholders of (KPREIT) will see the number of shares owned doubling when they voted to split the existing shares into two units at the Annual General Meeting scheduled for May 16, 2017.
The company’s Board of Directors took the decision on March 31, to recommend to the shareholders of that each of the 500,000,000 ordinary shares in the capital of the Company be subdivided into two ordinary shares each thereby making a total share capital 1,000,000,000 ordinary shares.
On March 6, the directors reported to the Jamaica Stock Exchange that they would be recommending a stock split to shareholders. The stock traded before the announcement at $11 moved up after to a record $16.35 on March 16 and remain sat that price on April 3.
The directors at the same meeting approved a dividend to shareholders on record as at April 18 in the amount of US$0.00124 per unit. The payment date is May 9 and the X-dividend date is April 12.

Five for one stock split for AMG

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AMG Packaging to split stock by 5.

AMG Packaging to split stock by 5.

AMG Packaging directors agreed a stock split, for each ordinary share of the company to be subdivided into five units. The matter is to be decided at the upcoming annual general meeting of in January.
The move by AMG continues a trend that has been seen since Lasco companies split their stocks 10 units for each one issued in 2013, continuing with Jamaican Teas early in 2016 and a string of others since, which have all helped in increasing the value of the shares. Investors are betting that the same will happen here as they responded to the announcement on Thursday, driving the price up by $3 in exchanging 7,999 shares at $21.50. The announcement confirms an earlier report by IC Insiders’ that the company was set to split the stock.
For investors to benefit fully from a rising stock price, the company will need to improve on its 2016 results of $83 million or 81 cents per share, with the start-up of the tissue operation, dragging profits down by $41 million as a result of start-up and operating cost and sales of tissue paper of only $2.3 million.
If approved at the Annual General Meeting, the issued capital of the company will move from 102,378,857 shares to 511,894,285 with the authorised capital jumping from 140,000,000 shares to 700,000,000. The split is to allow for greater liquidity in the shares as the stock has been trading infrequently.
The 2016 results saw a major improvement in cost of sales which fell from $483 million to $451 million and includes cost of inventories expensed of $320 million and $380 million in 2015. The cost of inventories recognized as an expense includes $33 million and in 2015, $54 million in respect of write -downs of inventories to net realisable value.

JSE stock split effective today

Exchange placeJamaica Stock Exchange stock price will adjust at the commencement of trading this morning to take into effect the 5 for 1 stock split that was approved at an Extraordinary General Meeting held on October 25.
Record date for the stock split is November 8 but the ex-stock split date takes effect on November 4. At the close of trading on Thursday, the price the stock traded at was $27.90 and will result in an opening price of $5.58.
The stock split will result in an additional 561,000,000 ordinary shares will be listed, increasing the issued shares from 140,250,000 to 701,250,000.
JSE reported of profit of $32 million for the June quarter versus $15 million in 2015 and $158 million compared to $102 million for the six months to June 2015. The improvement in net profit flowed from a 52 percent rise in revenues to $188 million for the June 2016 quarter compared with $124 million in 2015 and $525 million for the half year to June for a rise of 37 percent versus $382 million in 2015. Earnings per share for the half year ended at $1.12 versus 73 cents in 2015. The JSE had a big month of trading in August with some special trades that took place thus swelling the volumes and value to $6.6 billion for July to August compared to $6.5 million for the June quarter.

Stock split consideration for Eppley

eppleyThe directors of Eppley Limited will meet on Thursday, November 10, 2016 to consider the payment of an interim dividend to stockholders and a stock split.
Eppley last traded at $735 on the junior market of the Jamaica Stock Exchange. Since listing in July 2013, the stock has traded infrequently, even after the number of issued ordinary shares, were increased this year, with the issue of additional shares by way of a rights issue. In May the company issued 487,703 new ordinary shares priced at $650 each, bringing the total ordinary shares outstanding to only 1,283,122 units.
Profit for the June 2016 quarter amounted to $29 million $40.5 million for the half year, up from $22.5 million for the six months to June 2015.
The company is primarily in the business of insurance premium and lease financing.

10 for 1 stock split for Paramount

Paramount Trading - 10 for 1 stock split.

Paramount Trading – 10 for 1 stock split.

Shareholders of Paramount Trading (PTL) will see the number of shares they currently own, jumping ten times come mid November. Shareholders approved a resolution put forth by directors to split the stock into ten units for each one currently issued at the Annual General Meeting held on October 29.
The stock split will take effect from the opening of trading on Monday, 14 November 2016. The stock closed trading on the junior market of the Jamaica Stock Exchange on Monday at $24, if the price remains at the current level, the price after the split would end at $2.40.
Paramount reported lower profit of $15 million, down from $43 million in 2015 in its latest quarterly report, ending August, from increased sales revenues of $253 million versus $238 million in 2015. The company indicates that cost increased in the quarter in connection with rebranding and celebration for the company’s 25th anniversary celebration.
Paramount is expanding into the processing of lubricants in a joint venture with Allegheny Petroleum with the plant expected to be operational early in 2017.

JSE correcting directors’ error

Marlene Street Forrest - General Manager of the JSE

Marlene Street Forrest – General Manager of the JSE

Shareholders of the Jamaica Stock Exchange (JSE) will have a much longer wait to see the increase in the number of issued shares take effect than the date originally indicated on Wednesday in a release by the JSE.
In the original release of September 21, the company said the “Board of Directors decided at a meeting held on September 21, 2016, that each ordinary share of the Company be subdivided into five shares, resulting in the issued and fully paid capital of the Company increasing from 140,250,000 ordinary shares to 701,250,000 units of no par value, with the record date of October 5.”
In an article reporting on the decision to split the stock IC Insider, stated that the directors had no power to effect a stock split or increase the issued number of shares, as only the shareholders of the company has the power to do so, at a general meeting.
Late on Thursday, the JSE has issued a new statement and now advises “that an Extraordinary General Meeting of the Company will be convened at a date to be decided and communicated following the Board of Directors’ decision at a meeting held on September 21, 2016 that each ordinary share of the company be subdivided into five shares. This advisory supersedes the announcement on September 21, 2016, in which the date 2016 was stated as the effective date for the stock split.”
The JSE regulates the companies listed on the stock exchange and broker members, for them to have made such a huge error, raises some major questions about their ability to regulate the market with the present cadre of regulators. Was the other regulator, the Financial Services Commission aware of the miststep.

Cargo Handlers’ share goodies

Cargo Handlers to split stock 10 for 1.

Cargo Handlers to split stock 10 for 1.

Cargo Handlers‘ shareholders will see a 10 to 1 stock split when they vote on the recommend stock split by directors. Stockholders will also be asked to authorize an increase in the capital of the company to 466,200,000 shares from the existing amount of 40 million units, to accommodate the split. No date has been set for the meeting to approve the split.

The shares now issued amounts to 37,465,830 units but the stock trades infrequently as very few are in the hands of the general public. The stock split is expected to enhance liquidity of the stock.
The stock last traded at $56 on the junior market of the Jamaica Stock Exchange having shot up from $46 after the announcement was made that the directors were meeting to recommend a split. There are currently ids to buy the stock between $60 and $64.01 for 10,877 units, the last offer was 919 units on at $66, at the close on Monday.
The directors declared an interim dividend of $1.35 per share to be paid on September 13, with the ex-dividend date set for August 17.
The company enjoyed a buoyant June quarter, with revenues rising 55 percent from $56 million to $87 million and for the nine months by 36 percent to $245 million from $182 million. Profit before tax rose to $53 million from $29 million in 2015 and after taxation, profit ended at $46 million from $29 million. For the nine months, profit rose from $108 million to $143 million before tax, with the 2016 results ending at $125 million after tax, there were no taxes in 2015.
Management attributes the strong growth in third quarter revenues and profit, to increased activity in the Montego Bay region and increased port activity, flowing from the conversion of the Jamaica Public Service power plant to LNG gas.
Earnings per share for the quarter ended at $1.23 and $3.32 for the nine months. Full year’s earnings should be just under $5 per share but scarcity of the stock is driving the valuation up.

New prices for Lasco on Friday

All three Lasco listed companies that approved a 10 for 1 stock split at Extraordinary General meeting on June 26, 2013 will see the stocks trading at the new split price of less than $2 per share on Friday. The record date for the split is in the 9th of July which is not significant.

Stock split by the numbers |  Lasco Manufacturing will have 4.087 billion shares available to trade, Lasco Distributors 3.3664 billion shares in issue and Lasco Finance 1.228 billion shares.  At the close of trading on Wednesday 3rd July 2013, Lasco Manufacturing closed at $16.50, Lasco Distributors at $17 and Lasco Finance closed at $12.77. Based on these closing prices, it is not possible for the stocks to close above the equivalent of $2 on Friday.

Improved results for the first quarter of the 2014 financial year, which ends next year March, could help push the prices up when released in early August. However, early fervour after the split on Friday could well move prices to the extent that only exceptional results can move the stock prices higher.