Ciboney shares doubled but why?
Ciboney traded 1,186,460 units on Wednesday at 16 cents for a 52 weeks’ high, but the stock closed with the bid at 16 cents to buy 1,813,540 shares as investor push to price up to levels not seen since 2004 when it traded as high as 32 cents. The stock has doubled since November 9 when it traded at 8 cents. On the September 24 there were trading in 4.36 million units and 5.36 on October 26 and 2.1 million units on November 16.
Why the interest in the stock of a company that reported a loss of $1 million for the quarter, ending in August and seems set to lose $4 million for the year ending May 2016? For the 2015 fiscal year, a loss of $5 million was reported and $8.7 million in 2014.
Ciboney has whittled down the funds it holds in cash and investments, to $14.5 million from $20.6 million at August 2014 and with the losses could be out of cash in another two years, unless they were able to sell the land which the company owns. The last valuation was done in January 2015 which gives a value ranging from $200 million to $215 million, but is on the books at $44 million. If the valuation of $207.5 million was fully booked, the net book value would be around 31 cents per share. So far Ciboney has not obtained a buyer prepared to pay a price close to the market value.
IC Insider has been informed that two parties have expressed an interest in acquiring the company in part. One proposal is without the land, with the land to be placed in a separate company to be formed to hold it in proportion to existing share ownership of Ciboney. The other would see FINSAC retaining the land in possible exchange for either a cash injection and or transferring the FINSAC shares to minority shareholders. The deadline for the offer is Friday this week,any agreement would be subject to a vote by shareholders. If the former proposal succeeds, cash inflows would be minimal initially and shareholders would have to wait on the sale of the land for further payment. In the second case, investors would see no cash but the share value could be between 30-40 cents, with the possibility of losses could be eliminated. There is no guarantee that any of the proposals will be accepted. In the meantime, the price of 16 cents is well under the 31 cents adjusted net book value.
4 TTSE’s stocks up 3 down on Wednesday
At the close, the Composite Index ending with a rose of 0.87 points at 1,160.53 the
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 6 stocks with the bid higher than the last selling price and 5 stocks with offers that were lower.
Gains| Clico Investment Fund closed with 11,760 shares valued at $266,326 changing hands, 7 cents higher at $22.65, Prestige Holdings traded 2,603 units to end at $10.10, having risen 5 cents to a 52 weeks’ high. Trinidad Cement closed at a new 52 weeks’ high of $4.33 with 200 shares changing hands, after adding 13 cents and Unilever Caribbean ended with 12,085 shares valued at $823,593 trading with a gain of 12 cents, for a new 52 weeks’ high of $68.15.
Declines| First Citizens Bank traded 2,733 shares carrying a value of $326,328, to close with a fall of 1 cent at $35.01, Point Lisas fell 4 cents in trading 1,000 units at $3.91 and Trinidad and Tobago NGL closed with a loss of 1 cent at $22 as 34,957 shares changed hands for a value of $769,101.
Firm Trades| Republic Bank closed at $112, with 279 shares changing hands, Sagicor Financial Corporation closed with 206 shares changing hands at $6.03, and infrequent trader L.J. Williams B share traded 615 units to close with a gain of 2 cents to end at 99 cents.
J$ firm vs US up on others – Wednesday
Trading in Jamaica’s foreign exchange market saw US$4.7 million more funds flowing out of the market than the amount entering on Wednesday but the Jamaican dollar held against the US and gained against others. At the close of trading, the equivalent of US$32,919,431 was bought by dealers, compared with US$38,773,432 on Tuesday, while they sold the equivalent of US$37,604,938 versus US$32,724,247 previously.
In US dollar trading , dealers bought US$30,545,842 compared to US$33,795,098 on Tuesday. The buying rate for the US dollar decline 4 cents to $119.28 and US$35,916,393 was sold versus US$30,120,276 on Tuesday, the selling rate was unchanged at $119.87. The Canadian dollar buying rate fell 73 cents to end at $87.47 with dealers buying C$1,021,907 and selling C$938,883, at an average rate that shed 29 cents to $89.30. The rate for buying the British Pound fell $1.64 to $177.97 for the purchase of £1,041,355, while £499,144 was sold, with the rate falling 98 cents to $179.59. At the end of trading, it took J$127.55 to purchase the Euro, a rise of 27 cents from Tuesday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$125.05 for an increase of 39 cents from Tuesday’s rate. The US dollar equivalent of other currencies traded, amounts to US$70,476 being bought, while US$241,278 was sold.
Highs & Lows| On Wednesday, the highest buying rate for the US dollar rose 12 cents to $120.10, the lowest buying rate was unchanged at $98.66 and the highest selling rate remained at $126.42. The lowest selling rate jumped $18.34 to $117. The highest buying rate for the Canadian dollar rose 40 cents to end at $91.40, the lowest buying rate gained 25 cents to $71.63, the highest selling rate is up 9 cents to at $92.34 and the lowest selling rate ended higher by 50 cents to $85.50. The highest buying rate for the British Pound, dropped $1.50 to end at $180.50. The lowest buying rate increased by 33 cents to $145.25, the highest selling rate dropped $2.69 to $184.23 and the lowest selling rate rose $1 to end at $175.
J$ almost firm vs US on Tuesday
Trading of foreign currencies in Jamaica’s foreign exchange market saw US$6 million more funds flowing out of the market than the amount that entered on Tuesday leading to slippage in the rate for the Jamaican dollar against the US and the Canadian dollars. At the close of trading, the equivalent of US$38,773,432 was bought by dealers, compared with US$40,009,733 on Monday, while they sold the equivalent of US$32,724,247 versus US$32,908,156 previously.
In US dollar trading , dealers bought US$33,795,098 compared to US$36,075,775 on Monday. The buying rate for the US dollar rose 13 cents to $119.32 and US$30,120,276 was sold versus US$30,594,536 on Monday, the selling rate gained 1 cent to end at $119.87. The Canadian dollar buying rate rose 75 cents to end at $88.20 with dealers buying C$2,410,829 and selling C$2,031,958, at an average rate that gained 68 cents to $89.59. The rate for buying the British Pound rallied by $2.17 to $179.60 for the purchase of £2,018,586, while £659,747 was sold, with the rate falling 30 cents to $180.57. At the end of trading, it took J$127.28 to purchase the Euro, a fall of 70 cents from Monday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$124.66 for a decline $1.14 from Monday’s rate. The US dollar equivalent of other currencies traded, amounts to US$157,681 being bought, while US$91,605 was sold.
Highs & Lows| On Tuesday, the highest buying rate for the US dollar lost 12 cents to $119.98, the lowest buying rate gained 9 cents to $98.66, the highest selling rate remained at $126.42. The lowest selling rate rose 9 cents to $98.66. The highest buying rate for the Canadian dollar rose 70 cents to end at $91, the lowest buying rate fell 25 cents to $71.38, the highest selling rate eased 9 cents to at $92.25 and the lowest selling rate ended lower by 40 cents to $85. The highest buying rate for the British Pound, gained 20 cents to end at $182. The lowest buying rate closed 75 cents lower at $144.92, the highest selling rate dropped 96 cents to $186.82 and the lowest selling rate rose 50 cents to end at $174.
7 TTSE’s stocks gain 3 lost on Tuesday
Trading on the Trinidad and Tobago Stock Exchange remains elevated on Tuesday, ending with 14 active securities of which 7 stocks closing higher, 3 declined and 4 remained unchanged as 146,401 shares changed hands for a value of $1,936,656.
At the close, the Composite Index ending with a rose of 0.29 points at 1,159.66 the
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 4 stocks with offers that were lower.
Gains| Clico Investment Fund closed with 19,600 shares valued at $ 442,568 changing hands, 1 cent higher at $22.58, First Citizens Bank traded 2,733 shares to close with a gain of 2 cents at $35.02, Grace Kennedy had 10,345 units changing hands at $3.75, for a 15 cents gain. One Caribbean Media traded 100 shares and gained 5 cents to end at $22.05, Praetorian Property Mutual Fund contributed 10,000 shares and rose 2 cents to end at $3.09. Sagicor Financial Corporation closed with 2,726 shares changing hands at $6.03 for a 1 cent gain and Trinidad and Tobago NGL closed with a gain of 45 cents, at $22.01 as 48,585 shares changed hands for a value of $1,055,700.
Declines| Ansa Merchant Bank traded 887 units to close 2 cents lower at $38.65, Guardian Holdings with 14,116 shares changing hands, closed with a loss of 1 cent at $12.90 and JMMB Group fell 3 cents to end at 50 cents while trading 20,000 units.
Firm Trades| National Commercial Bank contributed 5,069 shares at a closing price of $1.95, Prestige Holdings traded 489 units to end at $10.05, Scotia Investments closed at $1.59, with 2,365 shares changing hands and infrequent trader L.J. Williams B share traded 9,386 units to close at 97 cents.