Trading levels on the Trinidad stock market was moderate on Thursday. 14 securities traded of which 3 advanced, 2 declined and 9 traded firm with two new highs at the end of trading as 226,207 units changed hands, with a value of $4,965,200.The Composite Index lost 3.53 points to close at 1,165.49, the All T&T Index fell by 6.34 points to close at 2,009.82 points and the Cross Listed Index fell by 0.09 points to close at 42.05.
Gains| Stocks increasing in price at the close, are Clico Investment Fund trading 79,033 shares valued at $1,710,341, the price advanced by 9 cents to end at $21.64, buy rated Massy Group, traded 618 units at $69.07 as the price gained 2 cents to land it at a new 52 weeks high and One Caribbean Media traded 394 shares to close $23.13 with a 2 cents gain at a new 52 weeks high.
Declines| The stocks declining at the end of trading are National Enterprises that suffered a loss of 51 cents to close at $18.25 while trading only 100 shares and Sagicor Financial Corporation with 52,420 shares trading for $343,129 and lost 11 cents to close at $6.55.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Agostini’s with 79 units in closing at $17.48, ANSA Mcal 20 shares to close at $66.29, First Citizens Bank 4,539 shares changing hands to close at $35, Guardian Holdings with 3,670 shares traded, to close at $14.30, Flavorite Foods 100 units at $5.75, Angostura Holdings with 100 shares at $13, Jamaica Money Market Brokers added 10,000 shares as the price closed at 45 cents followed by Republic Bank that contributed 20,837 shares with a value of $2,542,114 and closed at $122, while Trinidad Cement with 54,297 shares changing hands for a value of $105,880, closed at $1.95.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator showed 2 stocks with bids higher than the last selling price and 2 stocks with offers that were lower.
Two new highs on T&TSE
First Citizens PE more attractive
First Citizens made the sharpest price movement during the week as it dropped back sharply, ending back at $35 compared with $37.43 at the end of the previous week. The fall has raised the attractiveness of the stock giving it a 70 percent potential gain. 
Elsewhere not mush change took place more, but a number of stocks continue to post higher highs during the week as they eke away at the potential gains they have been showing. The Trinidad market has several stocks that are priced at a PE that is well below the market average, this has been so from early 2013 and continues to present.
The market has 6 stocks that are priced at a PEs that are well below the market’s average of 15, and a few close to the average, thus offering profitable investment opportunities for investors with medium term investment horizon.
The price earnings ratio| The PE ratio is the most popular measure investors use to compare and determine stocks values. It is computed by dividing the price of a stock by the earnings per share. It allows investors to compare the value of one company with others in order to decide which ones are to be bought sold or held on to. When the market moves markedly away from the norm it is usually time for investors to move. Nowhere is this truer than PE ratios.
In looking at good buying opportunities the crude measure is to buy those stocks with low PEs compared to the market or to stocks in the same sector.
Why NCB deserves a look now
National Commercial Bank (NCB)shares may not be trading in droves recently with the price tending to trade around $17 since early May but investors may be missing a great buying opportunity with a stock that is seriously undervalued.
In Trinidad the stock closed as low as TT$1.04 recently but has moved up to $1.10 on Friday and seems poised to go higher. The bid in Trinidad on Friday close was $1.10 (J$19.20) to buy 22,933 units with an offer of 26,000 units at $1.14. On Wednesday the stock traded 69,456 units at $1.08 and gained 2 cents in the process. On Friday 21,322 traded in Jamaica at $18.01 each and 1,396,013 on Thursday between $17 and $18.03. Wednesday saw 21,595 units being traded between $17.30 and $19. One important factor is that the stock is not in great supply.
But it’s the order book on the Jamaica Stock exchange that is sending a strong message to buy coupled with is a year when the results should help stimulate the stock price higher. There are only 280,000 shares on offer in the market but the buying interest is not particularly strong. With the pickup in trading in Trinidad, the price in Jamaica could get a lift and with third quarter results to June which are due in the last week in July, that could strengthen investor’s appetite for the stock and give it a badly need push.
IC Insider forecast earnings of $5 per share for the current year, so far NCB reported earnings of $2.38. For the first 6 months of the fiscal year.
Trading jumps but 3 price change
Activity picked up considerably on Friday, on the Trinidad stock market, with 15 securities changing hands at the end of trading, compared to only 4 that traded on Thursday. In Friday’s trading two stocks advanced, one declined and 12 traded firm as 174,173 stock units changed hands, with a value of $6,753,205.
The Composite Index rose by just 0.27 points to close at 1,166.06, the All T&T Index inched up by a mere 0.02 points to close at 2,011.83 and the Cross Listed Index increased by a miniscule 0.07 points to end at 41.93.
Gains| Stocks increasing in price at the close of trading are National Commercial Bank traded 8,617 shares with a value of $9,429 as the price was up 2 cents at $1.10, Unilever Caribbean with 546 shares, increased by 4 cents to end the day at $62.24 for a new 52 weeks high.
Declines| The only stock declining at the end of trading is Clico Investment Fund with 760 units valued at $16,340 and declined by 10 cents to end at $21.50.
Firm Trades| Stocks closing with prices unchanged at the end of trading Angostura Holdings with 200 units to close at $12.75, Ansa Merchant Bank 160 shares to close at $39.03, Firstcaribbean International Bank with 2,000 shares to close at $5, First Citizens Bank with 143,105 shares changing hands for a value of $5,008,675, closing at $35, Guardian Holdings 868 shares to close at $4.30, National Enterprises with 1,414 shares closed at $18.76, National Flour Mills had 2000 shares changing hands to close at $1, Neal & Massy with 489 shares changed hands to close at $68.95, Point Lisas Industrial Port Development traded 242 units to close at $4.15, Sagicor Financial Corporation with 600 share closed at $6.69, Republic Bank had a volume of 10,672 shares traded for $1,291,312 to close at $121, while West Indian Tobacco added 2,500 shares valued at $294,997 to end at $118.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than the last selling price and 2 stocks with offers that were lower.
First Citizens drops $1.50
Trading on the Trinidad stock market saw First Citizens dropping back to $35 as 13 securities traded of which 4 advanced 1 declined and 8 traded firm with 244,796 stocks changing hands with a value of $2,800,434. The Composite Index lost 4.10 points to close at 1,174.17, the All T&T Index rose fell by just 9.22 points to close at 2,012.01 and the Cross Listed Index increased by a mere 0.14 points to end at 44.07.
Gains| Stocks increasing in price at the close are Clico Investment Fund with 36,100 shares valued at $777,815.44 advanced by 5 cents to end at $21.55, National Commercial Bank gained 2 cents to close at $1.08 with 69,456 shares changing hands for a value of $74,912, National Enterprises with 1,555 shares closed at $18.76 for a cent increase, Neal & Massy 845 resulted in a 2 cents rise to $68.92.
Declines| First Citizens Bank with a volume of 37,582 shares traded for $1,317,168 was the only stock that fell on Wednesday as the price lost $1.50 to close at $35.
Firm Trades| Stocks closing with prices unchanged at the end of trading are Angostura Holdings closed at $12.75 with 11,340 shares changing hands, Guardian Holdings 14,948 shares changing hands for a value of $213,756 to end at $14.30, Guardian Media 6,574 valued at $129,837 to close at $19.75, Jamaica Money Market Brokers contributed 35,000 shares with a value of $15,750 and closed at 45 cents while National Flour Mills added 30,576 shares valued at $30,616 and closed at $1, Prestige Holdings with 300 shares to close at $9.40, Republic Bank traded only 20 units to close at $121 and Sagicor Financial With 500 and closed at $6.69.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator showed an indecisive market with no clear direction with 2 stocks with bids higher than the last selling price and 2 stocks with offers that were lower.
Profit surge 37% for Witco Q4
The Trinidad & Tobago’s based West Indian Tobacco Company (Witco) recorded profit before taxation of TT$556.3 million for the year ended December 2013, an increase of 16.8 percent over 2012 and profit after taxation of TT$411 million, an increase of 17.4 percent over the similar period.
More importantly, the final quarter’s revenue climbed by 17.8 percent to TT$341.4 million from TT$289.8 million in 2012 and profit surged 37.4 percent to $125.9 million from TT$91.6 million in 2012. Earnings per share for the last quarter amounted to $1.49 and $4.88 for the full year. The last quarter earnings place Witco on track to deliver profit for 2014 in the order of $6 per share. The improvement for the past year came against the back ground where the Carreras, the Jamaican the sister company that Witco is the main supplier of finished cigarettes, suffered a reduction in sales during the year.
Gross profit margin, an indication of how profitable a company can be, is at a level that most companies can only dream of at with an eye-popping 290 percent for the December quarter up from 248 percent in 2012 and 287 percent for the full year and 251.5 percent for 2012.
Cost was well contained for the year with distribution expenses falling from $20 million to $18 million. Administrative expenses fell to $94.6 million from $96.5 million and other operating expenses inched up by $1.5 million to $32.8 million while cost of sales fell moderately to $243.8 million by $3 million.
Witco approved a final dividend of $1.61 per share which brings the total dividend to $4.54 per share for out of the 2013 profit.
At the end of the year shareholders equity stood at TT$281 million with provision of $36 million for dividend and cash of $212 million. There was no interest bearing debt on the books.
Witco stock sells at $118 or 19.7 times estimated 2014 profit and is priced at 24 times 2013 profit.
Related posts | WITCO profit up 20 percent | Carreras is back
TTSE: Citizens jumps
Tuesday, 15th April 2014 | The Trinidad market traded with a slight upward bias as there was trading in 17 securities of which 5 advanced 3 declined and 9 traded firm with209,501 stocks trading with a value of $2,914,123.
The Composite Index advanced by 2.10 points to close at 1,164.95, the All T&T Index gained 3.94 points to close at 1,983.48 and the Cross Listed Index put on .03 points to end at 45.43.
Gains | Stocks increasing in price at the close are First Citizens Bank with 21,283 shares traded for $745,097 to close with a gain of 56 cents to end at $35.06. The stock has found support that has attracted buying interest and could be going higher once more. Guardian Holdings closed with a 2 cents gain to end at $13.12 as 2,000 shares traded; National Flour Mills 20,350 with a value of $24,420 to close with a 3 cents gain at $1.20; National Enterprises 400 shares to end at $18.28, up by 3 cents; One Caribbean Media with 912 units at $20.30 for 5 cents gain with another new 52 weeks high.
Declines | Agostini’s lost 5 cents to end at $17.70 with 300 shares; ANSA McAL traded 200 shares and fell a cent to close at $66.49 and Clico Investment Fund closed with 74,928 shares valued at $1,607,206 as the price declined by 5 cents to $21.45.
Firm Trades | Stocks closing without a change in their prices are Angostura Holdings 2,782 shares at $11; Grace Kennedy with 22,706 shares changing hands for a value of $79,472 to close at $3.50; Jamaica Money Market Brokers 15,165 shares valued at $8,189 to close at 54 cents; Neal & Massy 1,696 to close at $66.35; Praetorian Property Mutual Fund 4,000 units at $3.41; Sagicor Financial Corporation 13,883 shares to closed at $7.05; Scotia Investments 13,512 shares at $1.60; Trinidad Cement 14,788 shares at $2.20 and West Indian Tobacco 596 shares at $118.
IC bid-offer Indicator | At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.
Strong arbitrage position in JMMB in JSE & TTSE
Jamaica Money Market Brokers (JMMB) closed at 56 cents, the equivalent of JS$9.50 while it closed at J$7.50 in Jamaica, providing investors with a great arbitrage position, with a huge 26 percent price difference at the end of trading.
Trading overall in the Trinidad Stock market on Wednesday saw 12 securities changing hands of which 5 advanced, 5 declined and 2 traded firm resulting in the Composite Index declining by 4.54 points to close at 1,173.08, the All T&T Index falling by 8.83 points to close at 1,990.79 and the Cross Listed Index easing by 0.03 points to close at 46.62. Trading resulted in 653,357 shares changing hands, valued at $6,420,588.
Gains| (JMMB) was the volume leader with 186,000 shares changing hands for a value of $103,300, closing 3 cents higher to end at 56 cents, National Enterprises gained 2 cents to close at $18.27, National Flour Mills added 110,000 shares valued at $138,600 to close a cent higher at $1.26, a 52 weeks high, Neal & Massy traded only 35 units at $66.31 for a one cent gain.
Declines| First Caribbean International Bank traded 15,072 shares at $5.75, down a cent, First Citizens Bank 3,581 shares at $36.07, down 28 cents Grace Kennedy with 161,400 shares traded for $564,975 and fell 13 cents to $3.50, Scotiabank with 215 shares, close at $70.10, down $1.90 and Trinidad Cement contributed 118,574 shares with a value of $243,723 to close at $2.05.
Firm Trades| Angostura Holdings 900 shares to close at $11.00, Sagicor Financial Corporation had only 50 units changing hands to end at $7.05.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with the bids higher than their last selling price and 3 stocks with offers that were lower.
TTSE: Not much buying
Monday, 24th March 2014 | Today there was trading in 14 securities on the Trinidad & Tobago Stock Exchange of which 2 advanced, 7 declined and 5 traded firm.
The Composite Index declined by 1.06 points to close at 1,177.21, the All T&T Index fell by 1.09 points to 1,999.76 and the Cross Listed Index eased by 0.14 points to close at 46.52. Trading resulted in 235,786 shares changing hands valued at $12,213,108.
Gains | With prices under some pressure from the absence of much buying, Jamaica Money Market Brokers gained 3 cents to end the day at 50 cents with only 1,082 units trading and Republic Bank traded 9,370 shares at $102.03 by gaining a cent to reach a new 52 weeks high.
Firm Trades | Angostura Holdings had 3,000 units changing hands at $11.00; ANSA McAL 15 units at $66.49; National Enterprises 7 units at $18.25; Neal & Massy 201 units at $66.30 and West Indian Tobacco 60,652 shares for $7,156,936 to close at $118.
Declines | Agostini’s traded 9,729 shares as the price closed at $17.75 for a 4 cents fall; Ansa Merchant Bank added 10,000 shares valued at $383,000, falling 19 cents to $38.30; Clico Investment Fund traded 16,612 shares valued at $360,169 and declined by 3 cents to end at $21.68; First Citizens Bank fell 30 cents as it traded 55,451 shares with a value of $2,017,677 and closed at $36.39; Guardian Holdings had 67,232 shares changing hands for a value of $941,248 and closed at $14 down 14 cents; National Commercial Bank traded 1,435 units to close at a cent off at $1.16 while Sagicor Financial Corporation traded 1,000 units as the price fell 24 cents to close at $7.05.
IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.