Unilever continuing rise on TTSE

Unilever products – Unilever Caribbean continues to trade at new highs virtually each time it trades

Trading in the overall market ended with 10 securities changing hands on Tuesday with 3 stocks gaining, 1 declining and 7 traded with the price unchanged. A total of only 138,979 shares traded, valued at $2,663,997.
At the close of the market, the Composite Index fell 0.04 points to close at 1,154.05, the All T&T Index declined by 0.08 points to 1,961.51 and the Cross Listed Index remained at 45.47.
Gains| In trading, Angostura Holdings ended with a gain of 1 cent while 870 shares changed hands at $24.02. Clico Investment Fund stock price rose 1 cent to $22.51 with 69,400 shares trading at a value of $1,562,146 and Unilever Caribbean with 6,000 units valued at $402,060, changing hands at a new 52 weeks high of $67.01 to end 1 cent higher.
Declines| National Enterprises closed with 40 shares trading lower by a cent at $17.18.
Firm Trades| Flavorite Foods traded 1,061 units at $4.80, TTSE sum 4-8-15.xlsxGuardian Holdings closed with 47,962 shares changing hands at $13.10 and valued at $628,302. National Flour Mills contributed 5,307 shares at $2.10, Sagicor Financial with 4,460 units trading closed at $6, Scotia Investments traded 3,800 units and closed at $1.50 and West Indian Tobacco closed with 79 shares changing hands at $125.40.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than their last selling prices and 3 stocks with offers that were lower.

Falling prices overwhelm on TTSE

TTSEDailyTRading280x150 Trading in the overall market ended with 15 securities changing hands on Monday with 1 stock gaining, 5 declining and 9 traded with the price unchanged. A total of only 322,715 shares traded, valued at $2,878,812, as Massy Holdings accounted for $11.5 million of the trade.
At the close of the market, the Composite Index fell 0.83 points to close at 1,154.09, the All T&T Index lost 2.18 points to 1,961.59 and the Cross Listed Index gained 0.07 points to close at 45.47.
Gains| In trading, National Flour closed with 29,416 shares trading for 4 cents higher at $2.10.
Declines| First Citizens lost 45 cents in trading 1,247 shares and closed at $35.25, National Enterprises closed with 535 shares trading a cent lower at $17.19, Praetorian Property Mutual Fund traded 14,000 units at $3.05 and lost 5 cents. Prestige Holdings had 600 shares changing hands at $9.87 but at 2 cents less than the prior trade, Republic Bank lost 1 cent in trading 4,944 shares valued at $568,461 to close at $114.98.
Firm Trades| Clico Investment Fund stock closed at $22.50 with 43,482 shares valued at $978,345, Firstcaribbean Bank traded 313 shares at $5.01, Grace Kennedy TTSE sum 3-8-15.xlsxhad 32,043 units changing hands at $3.65, Guardian Holdings had 8,548 units changing hands at $13.10, National Commercial Bank traded 43,838 shares at $1.65. Sagicor Financial Corporation with 128,408 shares changing hands for a value of $770,448 closed unchanged at $6, Scotiabank traded 1,111 units and closed at $62.31, Scotia Investments with 11,230 units changing hands $1.50 and Trinidad Cement closed at $2.90 with 3,000 shares trading.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than their last selling prices and 2 stocks with offers that were lower.

Massy Holdings trade $11.5m TTSE

Massy Logo Trading in the overall market ended with 8 securities changing hands on Friday with 3 stocks gaining, 1 declining and 4 traded with the price unchanged. A total of only 249,833 shares traded, valued at $13,082,969, as Massy Holdings accounted for $11.5 million of the trade.
At the close of the market, the Composite Index fell 0.68 points to close at 1,154.92, the All T&T Index lost 1.34 points to 1,963.77 and the Cross Listed Index remained at 45.40.
Gains| In trading, Guardian Holdings had 8,240 units changing hands at $13.10, up 9 cents, National Flour closed with 5,500 shares trading for 6 cents higher at $2.06 and Unilever Caribbean with 2,000 units changing hands at a new 52 weeks high of $67 for a gain 24 cents.
TTSE 31-7-15 Declines| Massy Holdings had 184,135 units valued at $11,619,159, changing hands at $63.10 but at $1.10 less than the prior trade.
Firm Trades| Clico Investment Fund stock closed at $22.50 with 37,225 shares, valued at $837,564, Flavorite Foods traded 2,989 units at $4.80, National Commercial Bank traded 4,097 shares at $1.65 and Scotiabank traded 5,647 units and closed at $62.31 with a value of $351,865.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than their last selling prices and 3 stocks with offers that were lower.

Trading volume low on TTSE

TTSEDailyTRading280x150 Trading in the overall market ended with 13 securities changing hands on Thursday with 2 stocks gaining, 3 declining and 8 traded with the price unchanged. A total of only 110,408 shares traded, valued at $1,254,117.
At the close of the market, the Composite Index fell 0.10 points to close at 1,155.60, the All T&T Index advanced by 0.30 points to 1,965.11 and the Cross Listed Index loss 0.07 to 45.41.
Gains| In trading, One Caribbean Media ending with a gain of 39 cents while trading 3,645 shares changing hands at $22.40 and Unilever Caribbean with 353 units changing hands at a new 52 weeks high of $66.76 and gained 8 cents.
Declines| Clico Investment Fund stock price lost 5 cents to $22.50 with 9,540 shares trading at a value of $2,758,458, National Commercial Bank traded a mere 500 shares 1 cent at $1.66 and Trinidad Cement lost 2 cents while trading 45,974 shares.
TTSE 30-7-15 Firm Trades| First Citizens Bank with 20,179 shares traded valued at $506,226 to close at $35.70, Flavorite Foods traded 606 units at $4.80, Guardian Media had 1,872 units changing hands at $19.76, National Enterprises closed with 1,361 shares trading at $17.20. Republic Bank ended with just 4 units trading at $114.99, Sagicor Financial with 4,125 units trading closed at $6, Scotiabank traded 2,005 units and closed at $62.31 and West Indian Tobacco closed with 300 shares changing hands at $125.40.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than their last selling prices and 3 stocks with offers that were lower.

Profit up 171% for National Enterprises

National Flour - one of the companies that NEL has interest in

National Flour – one of the companies that NEL has interest in

National Enterprises (NEL), a holding company for a series of investments in other major enterprises formerly controlled directly by the Trinidad government, recorded a profit of $490 million for the year ended March 2015, compared to $181 million in the previous year, an increase of 171 percent with earnings per share of 80 cents, compared to 32 cents for the prior year.
“Your Board’s strategic decisions to pursue a diversification strategy by seeking new investments and strengthening management has also started to produce results” Kenny Lue Chee Lip, Chairman of the company stated in a release to the Trinidad & Tobago Stock Exchange recently.
Trinidad Telecom produced higher results of $85 million, up from a loss of $226 million and Trinidad Nitrogen Company $157 million versus $192 million in 2014 and $29 million. National Flour Mills in which NEL owns 51 percent also reported improved earnings, this company is listed on the Trinidad Stock Exchange.
NEL expects dividend income of $318 million compared to $305 million in 2014. NEL received the first full year earnings from its investment in a 10 percent shareholding in Powergen yielding $11.5 million in dividends, as well as dividends from the investments in First Citizens Bank and Clico Investment Fund. An investment in November, 2014 in Pan West Engineers LLC (the owner of 10 percent of Phoenix Park Gas Processors Limited) as a member of a consortium produced dividends of $9.8 million.
A final dividend of 27 cents is proposed which when added to the interim dividend of 23 cents gives a total dividend of 50 cents for the year (2014: 46 cents).
The value of each of the 600 million issued shares is $5.67 each and the stock last traded on the Trinidad and Tobago Stock Exchange at TT$17.21.

Scotiabank reports trades after 6 months

Scotia logoLittle things sometimes mean a lot. The latest reported insider trades at Scotiabank in Trinidad may not be considered large but they are important. The posting of the trades on the Trinidad and Tobago Stock Exchange website of inside trades is not a refreshing development in the capital markets within the Caribbean.
According to the stock exchange they received notice from “Scotiabank Trinidad & Tobago (SBTT) that a senior officer of purchased 1,177 shares on January 23rd, 2015 and 899 shares on January 26th, 2015,” the notice was posted on June 29th, 2015.
Someone seems to have messed up here. The major reason for disclosure of such trades is to let investors know what insiders are doing with the shares of the company. Such actions can help determine if the fortunes of the company is changing one way or the other. To publish the information 6 months after they took place is unacceptable in what should be a modern capital market system.
The trades were important signal of financial development with the banking group that reported an 18 percent jump in profit for the April quarter and ought to have been reported much, much earlier.

Some big Buy Rated gains more ahead

Hardware & Lumber with its Rapid True Value retail arm gained 265% since place on BUY RATED list

Hardware & Lumber with its Rapid True Value retail arm gained 265% since place on BUY RATED list

IC Insider Buy Rated stocks have chalked up 3 winners with gains in excess of 100 percent and two over 200 percent and one at 99 percent. 8 stocks have declined so far with losses between 7 percent and 27 percent but that should change as the year rolls on. There are no additions to the list, a few have been removed or put on hold.
Blue Power is now removed based on flat sales for the year to April and no immediate signs of a pickup. Dolphin Cove that was added in May last year and gained 48 percent is being moved to hold as revenues in the other half of the year to December is unlikely to grow to justify market out performance. The company had only a 6 percent increase in first quarter revenues down from 13 percent in 2014 and profit fell 10 percent to $133 million. Hardware and Lumber with buy out talks to acquire majority ownership with a maximum price of $18.50 and Scotia Investments are shifted to hold while JMM Group is moved from Buy Rated to Watch or accumulate based on the current price of $7.50.
As much as stocks with high gains may be view as already providing rich returns, there are much more gains left to be made. Carib Cement should report earnings in the $1 region this year with reduced cost, increased sales and the future should be even brighter as the local economy moves slowly into growth and lower interest rates will help boost building construction. Caribbean Cream has more than doubled this year in price but with lower input cost and increased sales should earn around 60 cents per share this year, at the present price of $1.60, there is room for growth. BUY Rated fn 7-15Jamaica Stock Exchange has had a phenomenal run this year with increased revenues and profit. Profit this year could reach $1.20 which should lift the stock some more and 2016 could be an even bigger year for it. Paramount Trading at $6 is still about 50 percent undervalued based on 2015 earnings and even more based on 2016 projected earnings. Lasco Manufacturing is yet to deliver in price movement but the 78 percent jump in the March quarter profits is a development that investors should be paying attention to.
Over in Trinidad, investors keep on ignoring Trinidad Cement but they should not, even with the 190 percent gain in the stock price. IC Insider sees higher profits flowing from increased sales, cost reduction including interest cost on loans. National Flour which we added in May is now up 21 percent still has more room to grow. The Trinidad market is likely to experience slow growth this year as such, many of the listings may not deliver much in the short term but investors should keep their eyes on Scotiabank that produced a nice lift in second quarter profits.

TCL trades big on Friday on TTSE

TCL traded 622,000 shares on Friday

TCL traded 622,000 shares on Friday

Trading on the Trinidad & Tobago Stock Exchange ended with relatively large dollar amounts being expended on some stocks, helping to push the dollar trading level above the average of recent days while Trinidad Cement landed the largest volume that traded. On Friday with only 10 securities changing hands, 3 advanced, 1 declined and 6 traded firm, with a total of 852,238 units, valued at $4,949,694 changing hands.
At the close of the market, the Composite Index fell 0.21 points to close at 1,159.46, the All T&T Index declined by 0.40 points to 1,969.53 and the Cross Listed Index was unchanged at 46.37.
TTSE 3-7-15 Gains | Massy Holdings trading 5,165 shares to close 4 cents higher at $64.34, National Enterprises had 2,300 shares changing hands, climbed 1 cent to end at $17.21 and Unilever Caribbean ended trading with 254 shares to close at a new 52 weeks’ high of $66.42 after adding 3 cents.
Declines| West Indian Tobacco traded 2,500 shares to close at $125.35 with a loss of 65 cents.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, ANSA McAl with 1,346 shares changing hands and ended at $67.25. First Citizens Bank with 19,349 shares carrying a value of $691,727 trading, closed at $35.75, Flavorite Foods traded 192,070 units with a value of $921,936 and ended at $4.80, Prestige Holdings traded at $9.89, with 900 units changing hand, Republic Bank closed with 6,354 shares traded with a value of $730,710, to end at $115. Sagicor Financial closing with 3,000 shares to end at $6.27 and Trinidad Cement traded 622,000 shares valued at $1,803,800 and closed at $2.90.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bid higher than their last selling prices and 3 stocks with offers that were lower.

4 stocks rose on TTSE

TTSEDailyTRading280x150 Trading on the Trinidad & Tobago Stock Exchange picked up a bit on Thursday with 15 securities changing hands of which 4 advanced, 3 declined, 8 traded firm, with a total of 378,246 units valued at $3,700,929 changing hands, more than twice Wednesday’s volume of 150,955 shares.
At the close of the market, the Composite Index declined by 2.31 points to close at 1,159.67, the All T&T Index lost 0.68 points to 1,969.93 and the Cross Listed Index fell 0.53 point at 45.84.
Gains| In trading, ANSA Merchant Bank ended with 1,000 shares changing hands at $38.95, to gain 4 cents, CLICO Investment Fund ended with 28,320 units changing hands, valued at $640,315 and closed 1 cent higher at $22.61. Grace Kennedy added 21,385 shares, 10 cents higher at $3.60 and Massy Holdings trading 88 shares to close at $64.30 and gained 1 cent.
Declines| Guardian Holdings had 7,475 units changing hands with a loss of 7 cents to end at $13.93, National Commercial Bank traded 12,862 shares and fell 9 cents to close at $1.70 and One Caribbean Media ended trading with 2,124 shares at $22 after shedding 40 cents, to close at a 52 weeks’ low.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Angostura Holdings trading 6,749 units at $13.90, Firstcaribbean International Bank with 54,375 shares trading, valued at $271,875 and closed at $5. TTSE 2-7-15First Citizens Bank ended trading with 51,376 shares carrying a value of $1,836,692, to close at $35.75, National Flour Mills with 8,890 shares changing hands and ending at $2.05, Point Lisas Industrial Port traded at $3.95, with 4,500 units changing hands. Republic Bank closed with only 25 shares being purchased at $115, Sagicor Financial closing with 1,700 shares to end at $6.27 and Trinidad Cement traded 177,377 shares valued at $514,393 and closed at $2.90.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than their last selling prices and 4 stocks with offers that were lower.

Something stinks in Trinidad

TCement_280x150Something stinks in the land of calypso and it has nothing to do with football. Trinidad Cement offered rights to purchase shares in the company early this year but only some shareholders were invited. No one has done anything about this stinking thing. One investors in the twin island state made a stink about the issue but not really about the salient point.
They are of the view that with Cemex controlling a large block of the shares by way of the rights issue made it tantamount to a takeover, hence they ought to have made an offer to the other shareholders to buy their shares. With officially less than 50 percent of the shareholdings that seems a bit farfetched.
What is of far greater import are two issues that go to the heart of good corporate governance, equitable treatment of shareholders and proper disclosure. The first issue is that all shareholders were not treated equally as is the norm for all holders of the same class of shares.
TCL directors found it convenient to deprive shareholders who reside overseas except for a select few from participating in the offer. It is interesting that when Guardian Holdings had a rights issue it was open to all shareholders whether residing in Trinidad or not. TCL had lots of time to have prepared themselves and others for the rights.
“TCL has advised that at a meeting of the Board of Directors of TCL held on Thursday, February 26, 2015, the board confirmed a decision to offer the shares in the Rights Issue of 124,882,568 new shares in Trinidad and Tobago only, and to exclude all other jurisdictions in which TCL`s shares are listed – including Jamaica. This decision was based on the following: (1) The complexities involved in satisfying the requirements of the various regulatory bodies in all jurisdictions in which the Company is listed and its effects on the stringent timeframe for the Rights Issue, especially having regard to the fact that the condition imposed by TCL`s Lenders; and (2) the de minimis shareholding and trading activity in the other jurisdictions (including Jamaica).”
The second and even more serious concern has to do with disclosure or lack of it. One would hardly be regarded as foolish as to think that the deal was hatched to get Cemex controlling interest by the back door.
First overseas based shareholders were excluded from the issue, no shareholder was allowed to subscribe to more than their allotment and the scheme provided for Cemex to have their required holding whether the rights was successful or not by the agreement to issue added shares if the amounts from the rights did not allow them at least 35 percent ownership.
The offer document stated “If Sierra Trading has not achieved a shareholding in TCL of 35%, then subject to receiving all required approvals, including Shareholder approval, a private placement of TCL shares will be issued in favour of Sierra Trading in an amount that will permit Sierra Trading to achieve a shareholding of 35% of TCL’s outstanding shares”

Carib Cement a subsidiary of TCL

Carib Cement a subsidiary of TCL

The grave error is that the company withheld important and extremely relevant information from shareholders. In fact they got noted auditors to issue report that is questionable in one critical area for what it did not disclose that was a part of the offer document. Why did PriceWaterhouse (PW) signed off on it and leaving out one of the most critical bit of information on the profit in 2015 and thus giving great validity to the numbers is a mystery? The information would have led any reasonable reviewer to the conclusion that the group made no profit for the March quarter, the hiding of this critical information is very unfortunate. If TCL who would have been in a good position to know what the profit for the quarter was likely to be had disclose same to investors many more would probably have taken a more positive view of the company as the numbers showed a vastly better picture than was released to the investing public.
According to the offer document TCL made no profit between December and March this year and this was critically false information. Yet the company posted a huge improvement in profit in the March quarter. That is odd, so hear what PW said in their report about the financial position and forecast prepared by management of TCL. Extract from the PW report states, ”in our opinion the projection has been properly compiled on the basis of the assumptions set out in note 1 and the basis of accounting used is consistent with the accounting policies of the group.” It goes on to suggest that actual results may vary materially from forecast. That is fine for projection somewhere down the road but can’t be good for information that has already been known.
Retained earnings at December 2014 is included in the balance sheet at $64.257 million and the same figure of $64.257 million on April 1, 2015, the conclusion here is that there was no profit nor loss in the quarter and if so many would consider the price of $2.90 too high. On April 23 the TCL directors signed off on the first quarter results showing a big jump in profit to $43 million up from $11 million in 2014. Was all the profit made in March alone ahead of the rights issue document and if not, why was it not disclosed in the report? Certainly for the months or the period that they had information investors should have been provided with it and with some guidance for the rest of the months for the quarter and for the full year as well. The numbers for the quarter puts full year’s earnings around 64 cents without any savings from debt restructuring that makes the $2.90 rights issue price extremely cheap, few would have known what the numbers were likely to be based on the silence of the company’s “dumb” directors.
Why hasn’t the FSC of Trinidad and the stock exchanges on which the stock is listed not taken up the matter in the interest of the investing public? Caribbean investors deserve far better treatment than this shabby approach.