New additions to Buy Rated list

Welcome four new members to our elite Buy Rated list! All trade on the Jamaica Stock Exchange with Sagicor Life, Scotia Group and Scotia Investments on the main listing and Caribbean Producers (CPJ) on the Junior Market.

Sagicor150x150Sagicor Life‘s earnings per share in the June quarter amounted to 42 cents annualised out at $1.70 per share but after adjusting for a $120 million loss in a law suit, it is closer to $1.80 per share. All things being equal, 2014 earnings should exceed $2 per share and with the price at $8.20, there is much room for growth.

scotiabanklogo150x150Scotia Group gets the Buy Rated seal of approval based on the earnings of 94 cents in the latest quarter and strong gains in net income for the nine months to July as well as the July quarter. Looking forward, the full year’s results should end at $3.70 per share with next year’s results looking to exceed $4 per share — more than enough to stimulate a rally in the price.

Scotia Investments clocked in with earnings of $1.33 for the quarter with reduced costs in a number of areas. Our analysis of their numbers suggest full year results should exceed $4.60 per share and next year more than $5.

CaribbeanProducers(CPJ)280X150Caribbean Producers (CPJ) reported outstanding June quarter numbers, which suggest that the post-IPO expansion is starting to bear fruits in a major way. Strong growth is a indicator of robust profits ahead and we feel that this one is ripe for a take-off in the coming months.

TCement_280x150Trinidad Cement continues to be the star of the Buy Rated list. Some may be questioning how much further it can go having gained more 200 percent since the end of May. Our PE ratio chart says it has more room to run before it is fully valued based on this year’s company profit performance. Neal and Massy has come down in price as has Guardian Holdings and declines has made them more attractive buys.

Better than a broker’s ‘buy’ recommendationIC Insider has no vested interest in any stock transaction or conflict of interest. Our research is backed by published reports of the company’s performance and insights of future earnings that can be found at ICInsider.com. The final decision to buy, or not, is your personal choice.

Related posts | Q2 profit up strongly at Sagicor | Scotia Group moves up in spite of NDX | Q3 profits up at Scotia Investments | CPJ’s big jump in profits | TTSE: 3 major changes in PE rankings

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To find published reports for a Buy Rated stock on IC Insider, please use category ‘Buy Rated’ under Company News or enter the company name, in full or part at ‘Search IC Insider’.

Image Courtesy of Collin Reid, Supreme Ventures/Courts/Scotiabank.

TTSE: 3 major changes in PE rankings

There have been three major changes in the Trinidad stock market‘s PE Ratio chart due to price movements this week.

Trinidad Cement (TCL) gained 42 percent in the week and more than 200 percent since May. Questions may be asked as to how much further it can go but the PE ratio chart still has the TCL stock as the one with the greatest potential for growth in the market. It has more room to run before it is fully valued based on this year’s company profit performance so it’s still worth either buying or holding on to.

TTSE_PE+Aug30Neal and Massy has come down relatively sharply in price, as has Guardian Holdings. The declines have made them more attractive buys even though Guardian seem like it has further to fall before it bottoms.

Related posts | TTSE: TCL is hot | TTSE: Neal & Massy drops $2.93 | Guardian ongoing profits up 29%

Image courtesy of Jeroen Van Oostrom/FreeDigitalPhotos.net

TTSE: TCL is hot

Friday, 30th August 2013 | This week’s trading on the T&T stock exchange was almost all about Trinidad Cement as the stock shot up to a new 52 weeks high on Friday at $2.94 at the close, gaining 38 cents on the day as 472,131 units traded valued at $1,387,609. The stock gained 89 cents or 42 percent during the week. The price advance may cool for a few days as the stock closed with the offer 46,481 units at the last selling price and the bid was for only 528 units at $2.75. The rapid movement may keep buyers from chasing the price for awhile until demand come closer to supply. Next week will tell. The fundamentals nevertheless support further gains.

Jamaica Money Market Brokers traded 700,000 shares firm at 50 cents for a value of $350,000; National Flour Mills contributed 148,444 shares with a value of $111,333; while Sagicor Financial Corporation added 23,200 shares valued at $158,920 as the stock price gained 30 cents to end at $6.85. Point Lisa traded 6,946 units gained 9 cents to close at $3.75; Grace Kennedy traded 4,000 units firm at $3.30; Clico Investment Fund had 7,500 shares changing hands valued at $161,283 and closed firm at $21.50. At the close the bid for Clico was at $21.60.

TTSEAug30Today’s volume was 1,362,951 shares valued at $2,225,638 as 9 securities traded of which 3 advanced, none declined and 6 traded firm.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 4 stocks were higher with 3 stocks having offers lower than their last selling price.

Image courtesy of Photokanok/FreeDigitalPhotos.net

TCL up 209% in two months

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Update to our post of Aug 27th, 2013 | In early July we told our readers “Cement was good for your pocket“. While we don’t know many took our advice seriously, we do know is that there has been quite a bit of buying of this Trinidad based company’s shares driving the price from 94 cents up to $2.94 at the close of trading on Friday. Not bad for a two months investment!

The good news is that our estimates suggest that it not over with prospects for more gains to come as the stock rallies to better align its value with the overall market.

Related posts | TTSE: 3 major changes in PE rankings | Cement could be good for your pocket

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Original post dated 27th August 2013 | We called it! TCL stock gains 115%

You read right! Trinidad Cement Limited stock price has gained 115% since IC Insider made to call out to buy at the beginning of July when the price was at 95 cents. It has since risen to $2.05 in almost 2 months. Not a bad pay day at all!

It’s not too late for you to make money on this fast moving stock! From all indications the stock still has lots of room to grow with the price on Monday, August 26 at $2.06 and the bid at $2.13 on the Trinidad Stock Exchange.

The main objective of IC Insider is to provide readers with opportunities not only make money, but to earn above average returns and avoid losses. To view our latest Buy Rated stocks, click here.

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TTSE: TCL up 170% since May

Thursday, 29th August 2013 | Trinidad Cement stock price is up 170 percent since hitting a low of 95 cents in May, propelling the stock to yet another 52 weeks high as only 7,615 shares traded at a $2.56, up 25 cents. The stock closed with the bid for 492,663 units at $2.56 with no stock on offer, a strong indicator of further price gains.

Market activity resulted in 11 securities trading of which 4 advanced, 3 declined and 4 traded firm as 107,590 shares traded with a value of $935,680.

Angostura Holding traded a mere 26,775 units valued at $254,364 as the price closed at $9.50 for a gain of 33 cents. The bid closed at $9.51 for 10,000 units whist the offer was for 76,188 units at $10. Sagicor Financial Corporation had a small volume of 52 shares as the price closed down 30 cents at $6.55. National Flour gained 5 cents to 75 cents as 6,556 shares traded.

TTSEAug29Neal & Massy Holdings contributed 8,970 shares with a value of $502,320 and closed firm at $56. Jamaica Money Market traded 50,500 shares at 50 cents down 5 cents; Point Lisa traded 1,974 units at $3.66 off by 8 cents; National Enterprises traded 3,142 units firm at $16; Clico Investment Fund suffered a 5 cents fall to close at $21.50 as 1,655 shares valued at $35,583.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 2 stocks were higher with 2 stocks having offers lower than their last selling price.

Is C2W doomed?

After almost two years, C2W Music, which promised that they would be making profits by now is yet to show the income, much less profits.

In its prospectus for the IPO to raise $129 million on the Jamaica Stock Exchange, the company made this statement about profitability, “As a start-up, the Company is expected to post a Pre-Tax Loss for 2012 of approximately US$241,849. The Directors expect earnings to stabilize from 2013 onwards, with a projected profit before tax of US$668,100 in that year, increasing threefold to a projected Profit before Tax of US$2.36 million in 2016.”

The results to June indicates that those projections were just a pipe dream as the company not only reported a loss of US$345,855 for the six months to June 2013, but for the similar period in 2012 when the loss was US$131,284, and there was just US$1,803 income for the six months. While it is not impossible to win contracts for songs that could change the picture, one would need to see a steady, if even small, flow of income but that is not the case with a year and a half now gone.

C2WMusiclogo2Shareholder equity now stands at US$377,257 down from US$1.2 million at June last year. Cash is almost gone entirely with just US$14,335 left of the sum raised in the IPO. C2W has assets in the form of advances to song writers of more than US$300,000 but that is not income and only $24,000 are due within a year.

The company needs a knight in shining armour and FAST if it is to avoid the burial ground. Crunch time is nigh.

TTSE: Low volume, low price changes

Wednesday 28th August 2013 |  With the exception of low priced Jamaica Money Market Brokers (JMMB) with 365,027 shares crossing the Trinidad Exchange and CIF with volume of 126,841 shares, trading was relatively low and so were the price changes as 11 securities traded of which 3 advanced, 4 declined and 4 traded firm with 524,976 units changing hands for a value of $3 million.

Jamaica Money Market Brokers (JMMB) 365,027 shares changed hands for a value of $200,765 as the stock traded firm at 55 cents. Grace Kennedy volume was 15,500 shares valued at $51,150 the stock closed at $3.30 down a cent. Sagicor Financial Corporation contributed 7,057 shares with a value of $48,340, the stock closed at $$6.95 losing 5 cents in the process, while National Flour Mills added 6,076 shares valued at $4,253 up a cent to 70 cents. Angostura Holding traded 1,000 units at $9.17 a gain of 4 cents. The trade of Clico Investment Fund units amounted to $2,720,466 and the stock price advanced by 18 cents to end at $21.45. Neal & Massy Holdings closed firm at $56.00 but only 729 units traded.

TTSEAug28IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 2 stocks were higher with 2 stocks having offers that were lower than their last selling price.

Trinidad Cement did not trade but it had 142,796 units on the bid at $2.56 compared to $2.31 for the last traded price. There are no stocks on offer at the close of trading.

First Citizens lousy investor’s relations

It was once said that as a country, Trinidad wanted to be the financial capital of the Caribbean, but recent activity on the country’s capital market indicates that they have a far way to go in achieving such a goal — if that is possible.

First Citizens Bank launched the largest ever Initial Public Offering (IPO) of shares in the history of the T&T Stock Exchange with a market value of approximately TT$1.1 billion on Monday 15th July at an offer price of TT$22 per share for 48,495,665 shares. The bank said the IPO will assist in widening its capital base in order to facilitate future strategic expansion plans. The offer was slated to close on August 9 and was extended to Monday, August 12th 2013 as the 9th was a public holiday.

First Citizens Brokerage & Advisory Services, a subsidiary of First Citizens Investment Services, is the Lead Broker for the Offer for Sale. The handling of the entire issue is a classic demonstration of poor investor relations and that is not a good sign for investors.

First_Citizensbuilding150x150Listing on September 16 | The T&T Stock Exchange has advised that First Citizens has applied to have its shares listed on the TTSE on September 16th 2013 subject to the approval of its application to list by the Board of the TTSE.

This is madness and is reflective of lack of sensitivity in their financial market. First off, the opening time for the issue was unnecessarily long so those who applied early had their funds tied up without any compensation. Even worse is after nearly a month of closing of the issue, investors are yet to know what is their allocation of shares. First Citizens said on their website that investors will find out between August 30 and September 6.

A check with the T&T Stock Exchange as to why it will take such a long time for the shares to be listed indicates that the problem is not with the Exchange, who are ready to list as soon the information is available and is approved by the Stock Exchange Council. A Stock Exchange source suggests that the delays maybe due to the broking community not being fully conversant with how to execute a timely IPO.

Oversubscription | Information obtained suggests that the issue was about two times oversubscribed with institutional investors probably being the main subscribers resulting in the high level of oversubscription.

While the management has made major missteps in dealing with this issue, IC Insider still rates the stock as Buy Rated based on the issue price and potential earnings. We believe there should be a steep appreciation in the stock’s value when it is compared with others within the financial sector.

Related Posts | First Citizens’ $1B IPO opens today | T&T Citizens Bank IPO oversubscribed | Buy Rated stock list grows

TTSE: TCL still roaring

Tuesday, 27th August 2013 | Trinidad Cement once more recorded another 52 weeks high as investors keep bidding the stock up with 87,000 shares changing hands for a value of $193,906 in today’s trading as it gained 25 cents to end at $2.31. The stock closed with the bid for 40,000 units at $2.36 and no stock on offer, a clear indication of further price gains.

Market activity resulted in 15 securities trading of which 8 advanced, 3 declined and 4 traded firm as 127,948 shares traded with a value of $930,672.

Sagicor Financial Corporation had a volume of 17,090 shares traded for $117,676 the price closed up 10 cents at $6.90. Neal & Massy Holdings contributed 4,663 shares with a value of $261,413 and closed at $56, while National Commercial Bank added 4,000 shares valued at $4,564 and closed firm at $1.15. Clico Investment Fund suffered a 3 cents fall to close at $21.27 as 7,207 shares valued at $153,291.

TTSEAug27Angostura Holding traded a mere 346 units at $9.13 a gain of 6 cents, the bid closed at $9.14 for 10,150 units. ANSA merchant bank traded 1,056 units at $38.60 for a 2 cents gain; Jamaica Money Market traded just 2,705 shares at 55 cents down 2 cents; One Caribbean Media chipped in with 1,225 units closed at $18.00 for a 1 cent loss; Scotia Bank gained a cent at the close of $70 with a mere 600 units trading; West Indian Tobacco traded 400 units firm at $117.05 while Unilever was up 6 cents at $55.31, a new 52 weeks high as the stock traded 700 units.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 3 stocks were higher with 4 stocks having offers lower than their last selling price

TTSE: Neal & Massy drops $2.93

Monday, 26th August 2013 | Neal & Massy drops $2.93 to close at $56.01 but with a miniscule 100 shares as 14 securities of which 5 advanced, 3 declined and 6 traded firm. The market registered a volume of 228,272 shares valued at $2,841,213.

Stocks trading in good volume include Grace Kennedy, 74,189 shares valued at $245,543, Sagicor Financial Corporation; 55,088 shares valued at $374,978, the stock price increased by 30 cents to end the day at $6.81. Jamaica Money Market Brokers 43,108 valued at $24,569 as the price closed at 57 cents, a gain of 2 cents; ANSA McAL 22,949 shares valued at $1,521,289. Clico Investment Fund had a volume of 27,630 shares valued at $588,519, the stock remained firm at $21.30.

TTSEAug26Trinidad Cement traded only 472 units at $2.06 up a cent on the day but closed with a bid at $2.13 without any stock on the offer. Guardian Holdings lost 50 cents in trading 2,000 shares as the price closed at $15, a new 52 weeks low.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 3 stocks were higher with 3 stocks having offers lower than their last selling price.