Blog Page — Page 1243

Palaces’ $22M profit swing

May 18, 2015 by IC Insider.com

Profit before tax for Palace Amusement Company had a major swing around of $22 million for the nine months to March this year to $6.8 million compared with a loss of $15.6 million and for the quarter a profit of $1.6 million was made, up from a loss of $9 million.

Patrons lined up at Palace’s Multiplex in Montego Bay

Revenues grew by 9 percent for the nine months to $650 million helped by strong growth in the March 2015 quarter that saw revenues increasing 12.7 percent year over year and 19.4 percent when the numbers for the Odeon Mandeville cinema that was closed late 2014 revenues are excluded. In the quarter revenues came in at $209 million from what is said to be more appealing movies than in 2014. There was minimal increase in administrative expenses while direct expenses rose less than revenues at 5.5 percent for the year to date and 10.8 percent for the quarter.
IC Insider is forecasting earnings of $24 per shares on much higher revenues in the June quarter than in the March quarter, with around 50 percent of the increase flowing to the bottom line as administrative cost should be held close to what obtained in the March quarter and losses that were incurred I the Mandeville operations removed.
Palace ended with cash funds at $66 million and has borrowed loan of only $25 million and equity of $280 million. The stock which is listed on the Jamaica Stock Exchange hardly trades with only 1.4 million units issued and closed last at $80.

Filed Under: Company News, Company Results Tagged With: Palace Amusement

D&G profit nearly doubles in Q3

May 18, 2015 by IC Insider.com

A combination of increased sales’ volume and price adjustment saw Desnoes & Geddes, the producers of the world famous Red Stripe beer, enjoying a 20 percent jump in sales revenues in the March 2015 quarter.
Sales reached $2.96 billion and a near doubling in profit to $367 million for an 88 percent increase from $196 million in 2014. For the nine months to March profit was up a more sedate 29 percent on a 14 percent sales increase to $9.6 billion over 2014.
Local sales rose 20 percent in the March quarter and exports were up only 6 percent, for the year to March exports grew 11 percent and local sales 13 percent.
Earnings per share for the quarter came in at 13 cents and 54 cents for the nine months and should end at 80 cents for the full year and $1.05 for 2016 fiscal year. Gross profit margin increased during the nine months period to 41.4 percent from 39.94 percent and 37.7 percent during the quarter from 36.2 percent.
The March quarter saw a turnaround in the results of the distribution company it’s a joint venture partner with Pepsi in, which contributed $20 million in the quarter compared with a $47 million loss in 2014 and for the nine months, losses increased to $62 million from $46. Marketing cost jumped to a billion for the nine months from $737 million in 2014. Other costs were held fairly tight.
The period ended with net fixed assets increasing by $1.5 billion but the company still ended with cash funds at $1.38 billion and equity of $9.4 billion.
The stock is listed on the Jamaica Stock Exchange and closed last at $7.20, with a PE ratio of 9.

Filed Under: Company News, Company Results Tagged With: Desnoes & Geddes, Jamaica Stock Exchange, Red Stripe Beer

Pulse 29% increased profits

May 17, 2015 by IC Insider.com

Pulse Investments netted profit of $165 million on revenues of $353 million for financial year ended June 2014 increasing 27 percent on $128 million earned in 2013. Revenues increased slightly by 2 percent from $346 million in 2013. The profit includes fair value gains on investment property amounting to $96 million versus $78 million in 2013.
The increase in profit was due to a combination of better cost management and revenue increases in some areas of operations and a fall in administrative and other expenses by 18 percent, from $211 million in 2013 to $173 million in 2014. Property rental income increased by 27 percent, from $30.9 million in 2013 to $39 million in 2014. Earnings per share increased from 46 cents to 59 cents, in 2014 compared to prior year.
Bank loan and overdraft debt declined $1.2 million from June 2013 to $26.3 million in 2014. Net cash generated by operating activities was down slightly from $27 million in prior year to $25.7 million, Cash in hand at year end stood at just $10 million.
The company’s shares were suspended last year by the Jamaica Stock Exchange for the late filing of audited financial statements as well as quarterly statements. While one can possibly see to some reasoning for the lateness of the audited accounts, there can be no excuse for the late filing of quarterly reports as they are not dependent on the audited figures.
There are a number of negatives for Pulse and its investors one is the low level of cash inflows compared with the revenue and profit, creating a problem for investors in not being able to get dividends. The real estate investment which consumed relatively large amounts of cash will need to throw off more cash going forward to make the stock more appealing to investors. The on again off again listing and suspension of listing and the very late financial reporting are very negative for the stock and reflects badly on management, including the directors.

Filed Under: Company News, Company Results Tagged With: Pulse Investments

Point Lisas undervalued shares

May 17, 2015 by IC Insider.com

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Profit before tax for Trinidad’s Point Lisas Port Development Companyand excluding the impact of fair value gains was $15.3M, an increase of 358 percent compared to the same period last year of $3.3M this flowed from a 19.6 percent growth in revenues. Including gains on valuation of investment properties the company reported profit of TT$67 million versus $36 million in 2014.
Volumes handled by the port grew strongly with the containerized cargo operations experiencing a 25 percent increase in volume but general cargo operations suffered a 13 percent compared to the levels recorded in 2014. The growth in containerised cargo resulted from a 10 percent increase in imports, an 11 percent increase in exports along with a 94 percent increase in trans-shipment cargo. For general cargo there was an 88 percent decrease in exports, a 7 percent increase in imports and a 320 percent increase in trans-shipment.
Direct cost rose faster than the growth in revenues with an increase of 29 percent. Administrative expenses remained relatively stable during the quarter at $21 million but other operating expenses declined to 158 million from $20.5 million.
The Group’s total assets grew to $2.33B in the first quarter of 2015, an increase of 3 percent from December 2014 when the asset base was $2.26B. Working capital continues to remain strong having improved from $49M at December 2014 to $65M in March 2015. The shareholders’ equity stood at “PLIPDECO will continue to embark on various endeavours as determined in its strategic plan. These include among other things infrastructural improvements, information technology upgrades (some already implemented during the first quarter 2015), and continuation of the Port expansion project. The preceding undertakings would further enhance efficiency and productivity to effectively position PLIPDECO in its drive towards continued growth$1.966 billion” Ian Atherly, Chairman of the company told shareholders in his report accompanying the quarterly results.
At the rate of income generation in the first quarter Point Lisas could earn around $1.70 per share excluding cap gains in 2015. The stock which is listed on the Trinidad & Tobago Stock Exchange and traded as high as $8.25 in 2007, last traded at $3.69. The net asset value of the stock is $49.60.
The stocks is undervalued and seems to be an interesting, IC Insider is maintaining a BUY RATED status on the stock.

Filed Under: Company News, Company Results, Real Estate, Stock Market Tagged With: Point Lisas, Point Lisas Industrial Port Development, TTSE

JSE profit surged – 2016 could be big

May 17, 2015 by IC Insider.com

Jamaica Stock Exchange reported a huge jump in first quarter earnings showing profit of $87 million or 62 cents, up from a loss of $3 in 2014, after tax. Revenues jumped from $82 million to $253 million, on the back of 10 fold increase in cess, due to primarily to the transfer of ownership of the controlling interest in Scotia Group, from the Canadian parent, to one set up to own the Caribbean entities directly.
Total cess income jumped to $161 million compared to only $15 million. Access Financial managing director switched ownership of his shares to a company, resulted in a transaction over the exchange of $1 billion and Pan Jamaican Investments had a $1.3 billion transaction in March. While the latter two unusual transactions would have increased the cess around $12 million, the cess for Scotia Group is estimated by IC Insider at around $120 million, leaving around $40 million as cess from normal ongoing operational activities. Trading values grew by 27 percent in the first quarter, including the two transactions in March. Fee income which rose by 67 percent would have been partially impacted by the big one off transactions, but increased value traded and a slight increase in listing fees would also have helped.
In the second quarter to mid May trading has increased 333 percent to $2.6 billion, the amount is equal to the total value traded for the entire second in 2014. The increased value of trading will lead to increased fees. In the 2014 second quarter, income from cess was only $10 million and fee income $45.5 million. Not only will the cess rake in more funds from the increased volume of trading now on the way but also from an increase in the rate charged for cess over the 2014 level.
While the increased trading activity so far will lead to increased fees for the second quarter, the potential income will be no more than around $100-120 million and will be sufficient to produce a profit for the quarter and help in lifting profit for the full year beyond $1 per share.
Looking forward, with more unit trust schemes being set up there will be more demand for stocks to satisfy the demand of equity funds. The Stock Exchange is poised to take over repo trading and acting as the registrar for them and result in additional fee income is going in the not too distant future, also of great import is that rising stock values increases the base for listing fees to be levied in 2016.
The exchange has cash and investments of $500 million with a working capital ratio of 2:1 and equity of $650 million. The stock remains IC Insider BUY RATED and is now available at $3.50 which it traded at on Friday, but won’t remain that way forever and investors should be buying this one for big long-term gains.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Access Financial, IC Insider BUY RATED, Jamaica Stock Exchange, Jamaica Stock Exchange cess, Pan Jamaican Investments, Scotia Group

19 stocks rose only 3 fell on JSE

May 15, 2015 by IC Insider.com

Hardware & Lumber gained $1.25 to a new high of $12 in response to news that Grace is in negotiation to sell their interest in the company

There were only three stocks declining on the Jamaica Stock Exchange on Friday, while 18 stocks rose, compared with the last traded prices on Thursday, but the main market indices dropped more than 500 points as Scotia Group fell back to $25.16. The market closed with 19 stocks rising, 8 of which closed at 52 weeks’ high, 3 declining as 28 securities changed hands, well down from the 41 that traded on Thursday. In the end a total of 5,475,513 units valued at $56,463,857 traded, in all market segments.
The rally started last year fuelled by falling money market rates with Treasury bill rate falling from over 9 percent to below 7 percent. The current rally is be fuelled by rising profits from the majority of companies reporting first quarter results.
The JSE Market Index lost 507.33 points to 98,992.10, the JSE All Jamaican Composite index fell 567.23 points to close at 109,396.05 and the JSE combined index declined 237.32 points to close at 101,419.02.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 15 stocks with bids higher than their last selling prices and 2 with offers that were lower.

Stocks in the main market trading to close at a 52 weeks’ high, are Berger Paints, Desnoes & Geddes, Hardware & Lumber, Jamaica Stock Exchange, JMMB Group and Mayberry Investments. In trading, Barita Investments ended with 622,050 shares changing hands to close at $2.35, Berger Paints closed with 55,162 shares trading, 27 cents higher at $2.35, Cable & Wireless finished trading with 619,569 shares to gain 1 cent to 47 cents, Caribbean Cement saw trading in 3,351 shares, to close 1 cent higher at $4.21. Carreras closed with 32,376 shares changing hands to close 35 cents up at $49.35, Desnoes & Geddes finished trading with 14,650 shares and gained 10 cents in trading to close at $7.20, Grace Kennedy concluded trading with 307,283 units trading with the last price unchanged at $64.50, Hardware & Lumber completed trading in 9,092 shares changing hands and jumped $1.20 at $12 as investors responded to news that Grace is discussing selling their stake in the company. Jamaica Broilers had dealing in 48,730 units traded at $5.16 to remain unchanged at the end. Jamaica Stock Exchange contributed 244,616 shares, the price jumped 60 cents or 21 percent in response to the company’s huge jump in their first quarter results showing profit of $87 million or 62 cents and ended at $3.50. Trading was halted for an hour after the price exceeded 15 percent. JMMB Group ended with 27,855 shares changing hands to close up by 10 cents at $9.60, Mayberry Investments closed with 12,289 shares trading at $3,after adding 12 cents, National Commercial Bank finished trading with 468,084 units unchanged at $30.50. Pan Jamaican Investment ended trading with 14,769 units 12 cents higher, at $58.25, Sagicor Group closed with 191,168 shares trading 15 cents lower at $12. Scotia Group finished trading with 88,383 shares changing hands to close 84 cents lower at $25.16, Seprod saw trading in 335,400 shares ending 25 cents up at $18.50 and Jamaica Money Market Brokers 7.50% preference share ended with 68,650 units trading with a 5 cents rise to $2.15.

Filed Under: Feature Stories, JSE Main Market, Stock Market Tagged With: Barita Investments, Berger Paint, Cable & Wireless, Caribbean Cement, Carreras, Desnoes & Geddes, Grace Kennedy, H&L, Jamaica Broilers, Jamaica Money Market Brokers 7.50% preference share, Jamaica Stock Exchange, JMMB Group, Mayberry Investments, National Commercial Bank, Pan Jamaican Investment, Sagicor Group, Scotia Group, Seprod

Another new high for juniors – Friday

May 15, 2015 by IC Insider.com

The junior market has taken out resistance at 840 points and is heading for the next at 1,000

The Junior Market surged to a new high with the JSE Junior Market Index jumping 25.80 points to close at 892.20, leaving the previous resistance level of 840 points and is now poised to be heading to the next resistance around 1,000 points with the market having broken out of the range it’s been in since late 2011.
In market activity a total of 7 securities traded, ending with 2,307,958 units changing hands valued at $5,347,133. The prices of 5 stocks advanced including 2 securities closing at 52 weeks’ high and 1 stock declined. At the close of indications are that the market should climb on Monday as there were 7 stocks with bids higher than their last selling prices and only 1 with a lower offer. The junior market ended with 4 securities closing with no bids to buy and 8 securities that had no stocks being offered for sale.
Stocks trading in the junior market are,

Caribbean Cream jumped 15 cents or 14.29 percent to close at a new 52 weeks’ high $1.20 with 232,000 units changing hands, Caribbean Producers with 1,141,831 shares trading 22 cents higher at $3.10 after trading at $2.88, Dolphin Cove ending with just 100 shares changing hands to close higher by 55 cents at $10.75, for a new 52 weeks’ high but the bid to buy the stock is well down at $9.20 with offer at $11. General Accident Insurance concluded with 368,166 shares changing hands, closed unchanged at $2.08 but ended with a bid for 2,432 units at $2.18. Lasco Distributors traded 92,301 shares trading, 15 cent higher, at $1.65, Lasco Financial Services finished trading with 386,539 units changing hands as the price slipped 4 cent, to $1.31. There was dealing in 87,021 Lasco Manufacturing’s shares as the stock traded 11 cents up to $1.45.

Filed Under: Feature Stories, JSE Junior Market, Stock Market Tagged With: Caribbean Producers (CPJ), Daily Trading, Dolphin Cove, General Accident, Jamaican Stock, junior market, Lasco, Lasco Distributors, Lasco Financial Services

J$ slips against US & Pound Friday

May 15, 2015 by IC Insider.com

On Friday, the Jamaican dollar slipped against the US dollar and British pound and gained against the Canadian dollar, as purchases of all currencies by dealers amounted to the equivalent of US$29,862,314 compared with US$32,964,911, on Thursday and selling of the equivalent of US$29,000,152 versus sale of US$27,642,328, previously.
In US dollar trading, dealers bought US$26,604,631 compared to US$28,792,177 on Thursday. The buying rate for the US dollar rose 10 cents to $115.57 and US$27,054,347 was sold versus US$26,502,659 on Thursday, the selling rate was up 7 cents to $116.10. The Canadian dollar buying rate slipped 9 cents to $94.60 with dealers buying C$1,106,157 and selling C$550,926, at an average rate that declined 67 cents to $96.61. The rate for buying the British Pound jumped $2.45 to $180.53 for the purchase of £1,449,736, while £860,481, was sold, at an average rate that rose 67 cents to $182.55. At the end of trading it took J$132.05 to purchase the Euro, 39 cents more than on Thursday, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$129.43 for an increase of 37 cents on Thursday’s rate. Other currencies bought, amounted to the equivalent of US$87,807, while the equivalent of US$134,455, was sold.
Highs & Lows| The highest buying rate for the US dollar, rose 19 cents to $116.50. The lowest buying, the highest and the lowest selling rates were unchanged at $94.77, $121.44 and $94.77 respectively. The highest buying rate for the Canadian dollar rose 55 cents to $97.50. The lowest buying rate was up 20 cents to $76.98, the highest selling rate rose just 12 cents to $99.24 and the lowest selling rate gained $1.75 to $92.75. The highest buying rate for the British Pound, rose 60 cents to $183.25, the lowest buying rate gained 42 cents to $146.50, the highest selling rate fell 94 cents to $185.54 with the lowest selling rate rising 74 cents to $174.30.

Filed Under: FX Market, Stock Market Tagged With: BOJ, British Pound, Canadian dollar, Daily Trading, FX Market, J$ v, Jamaica dollar, US Dollar

Scotiabank jumps to $63 on TTSE

May 15, 2015 by IC Insider.com

Scotia traded up 49 cents to close at $63 on the TTSE Friday

Trading on the Trinidad Stock Exchange ended with 11 securities changing hands, 4 advanced, none 2 declined and 7 traded firm, with a total of 374,918 units, valued at $7,339,979.
At the close of the market, the Composite Index advanced by 4.83 points to close at 1,159.62, the All T&T Index added just 2.43 points to close at 1,970.86 and the Cross Listed Index increased by 0.97 points to end at 45.71
Gains| Stocks increasing in price at the close are, Massy Holdings had 5,411 shares changing hands, for a value of $345,492, to end 45 cents higher at $64, National Commercial Bank had 13,787 units changing hands, 15 cents higher at $1.65. Scotiabank contributed 38,143 shares, valued at $2,402,950 and jumped 49 cents to end at $63 and Unilever Caribbean traded 438 units and closed 3 cents up, at a new 52 week high.
Shares declining| Clico Investment Fund ended with 23,987 shares trading, valued at $541,037 but lost 5 cents to end at $22.55 and First Citizens Bank trading 604 shares to close at $35.80, after losing 5 cents.

Firm Trades| Stocks closing with prices unchanged at the end of trading are, Guardian Holdings ending with 3,154 shares at $14.20, JMMB Group ended with 1,904 shares trading at 55 cents, National Enterprises traded 1,561 units at $17.30. One Caribbean Media ended with 219 shares changing hands at $22.30, Prestige Holdings closed with 265,096 shares valued at $2,650,980 trading to end at $10. Republic Bank added 10,614 shares valued at $ to close at $115 and Trinidad Cement ended up with 10,000 units at $2.80.
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 with a lower offer.

Filed Under: Stock Market, TTSE Market Tagged With: Clico Investment Fund, First Citizens Bank, Guardian Holdings, JMMB Group, Massy Holdings, National Commercial Bank, National Enterprises, One Caribbean Media, Prestige Holdings, Republic Bank, Scotiabank, Trinidad Cement, Unilever Caribbean

Stocks mostly gained Friday morning

May 15, 2015 by IC Insider.com

Jamaican stocks prices are still cruising on a high with 17 stocks gaining and only 4 declining.
The junior market moving up to 878.73 points but after posting triple gains the main market indices slipped into negative territory with Scotia Group pulling back the $25.11. In the process the all Jamaica Composite index fell 451.62 points to 109,511.66 at midday and the JSE index was down 403.93 points to 99,095.50.
Trading is taking place in 28 securities with 3.27 million units as market interest spread to more stocks that were hardly active for months. So far there are a number of new 52 week’s high as the market continues to power away as positive company results are encouraging investors to buy.