Trading on the Trinidad Stock Exchange was again moderate on Thursday with only 9 securities changing hands, of which one advanced, 3 declined and 5 traded firm, with 196,465 stock units changing hands, with a value of $3,702,555.
The Composite Index lost 0.25 points to close at 1,155.19, the All T&T Index fell by just 0.11 points to close at 1,995.46 and the Cross Listed Index fell by a mere 0.05 points to end at 41.22.
Gains| The only stocks increasing in price at the close, is Republic Bank in gaining 2 cents, to end at $121.97.
Declines| The stocks declining at the end of trading, are ANSA McAL that contributed 11,000 shares, with a value of $729,080 to close 2 cents lower at $66.28, Massy Group lost 5 cents to close at $68.95 with 9,247 shares trading valued at $638,000, Sagicor Financial Corporation lost 6 cents to close at $6.55, while trading 1,105 units.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Clico Investment Fund that traded 90,570 shares valued at $1,992,540, the price remained at $22, Firstcaribbean International Bank with 14,198 shares for $71,000 to end at $5, National Commercial Bank with 50,000 shares changing hands, for a value of $52,500 and ended at $1.05, National Enterprises with just 50 shares at $18, followed by Trinidad Cement with 10,400 shares valued at $19,344, to close at $1.86.
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 one stock with the offer that was lower.
TTSE Trading continues to be low
Paramount’s Q4 profit jumps 108%
Paramount Trading’s profit after tax jumps 108 percent in the May quarter, on a pretax basis, it was up 73 percent while revenues came in at just 5 percent higher, for the quarter.
Profit in the May quarter after tax is $43.6 million compared with $21 million for the similar 2013 period. The improved results for the company’s final fiscal quarter, came from revenues of $199 million versus $189.6 million in 2013. The final quarter numbers are a marked improvement over those for the February quarter, when only $14.6 million in profit was reported form sales of $181 million. For the full year, Revenues amounted to $720 million from $682 million in 2013. The 2013 numbers were boosted by one off income from the amalgamation of the trucking operation – Stamina Trucking and cancelation of related party debt amounting to $21 million, this also swelled the profit by a similar amount. In 2013 the Paramount incurred taxes on profit amounting to $10 million but in 2014 there was a tax credit of $425,000.
Noticeable, was a fall in administrative cost, from $35 million in the February quarter, to only $23 million in the final quarter. Gross profit margin climbed in the three months to May to 50 percent from 49 percent in the February quarter, compared to 47.7 percent for the full 12 months. The improvement in the profit margin is a welcoming development, especially as sales have not been growing at a fast pace.
Profit is projected to come in around $125 million in 2014/15 year or around 80 cents per share from current operations. At the current price of $2.70 the stock would be priced at a PE of only 3.4 making it a buy bearing in mind that that many junior listings have been valued around 8 times earnings.
Financials| The company earned an average rate of return of 29.7 percent, on the equity of $345 million at the end of May. Borrowed funds amounted to only $52 million compared to the level of equity. Cash stands at $56 million while receivables climbed to $172 million from $146 million, a much faster pace than the increase in sales. Inventory is at $203 million and increase form $172 million at May 2013, but payables moved up from $110 million to $128 million over the same period. Inventory levels may be on the high side as a protection against the devaluation of the Jamaican dollar, the same would not be true for the increased receivables.
Only 7 securities traded on TTSE
Trading on the Trinidad Stock Exchange was low with just 7 securities changing hands of which 2 advanced, 3 declined and 2 traded firm, with 63,450 stocks changing hands, with a value of $1,135,906.
The Composite Index lost 0.17 points to close at 1,155.44, the All T&T Index fell by just 0.09 points to close at 1,995.57 and the Cross Listed Index fell by 0.04 points, to end at 41.27.
Gains| Stocks increasing in price at the close are Unilever Caribbean that gained 3 cents to end the day at $63.03, for a new 52 weeks high and West Indian Tobacco with 10 shares, to close with a gain of a cent at $118.01.
Declines| The stocks declining at the end of trading are, Agostini’s with 14,582 units traded for $253,581, the price fell 6 cents to close at $17.39. First Citizens Bank contributed 4,511 shares with a value of $162,393, while losing just a cent to $35.99 and Sagicor Financial Corporation added 1,116 shares valued at $7,380 and lost 2 cents to $6.61.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, Clico Investment Fund with 8,619 shares valued at $189,618 but remained at $22 and Guardian Holdings with 34,062 shares changing hands for a value of $487,087, to close at $14.30.
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 2 stocks with offers that were lower.
Grace & JPS paying shareholders
Grace Kennedy approved an interim dividend of 78 cents per stock, to be paid on September 30 to stockholders on record of September 12, the EX dividend date is September 10, 2014.
An interim dividend of 70 cents per share was paid on April 30, this year. A third dividend is expected to be paid later in the year, in keeping with the company’s policy of making three payments per annum.
Jamaica Public Service approved a Class F preference share a dividend of US$1,137,653 or 0.463287757 per stock, to be paid on August 15, 2014, to stockholders registered at the close of business on August 4, out of retained earnings. The EX-dividend date is July 30, 2014.
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Pan Jam & Cargo Handler considering dividends
Pan-Jamaican Investment Trust will consider the payment of a third interim dividend for the year 2014 at a meeting scheduled for August 12, 2014.
Interim dividends of 60 cents per share was paid on June 20 and on March 31, this year.
Cargo Handlers advised that at a meeting scheduled for August 12, 2014, the Directors will consider the payment of an interim dividend for 2014. Previously, Cargo Handlers paid a dividend of 50 cents per share on March 6, this year. In 2013, the company paid a dividend of $1 per share on March 28, 2013.
Caribbean Flavours dominates trade
In Tuesday’s trading on the Jamaica Stock Exchange, the prices of 10 stocks rose and 9 declined as 29 securities changed hands, resulting in 48,146,012 shares trading, valued at $138,990,317. Junior market, Caribbean Flavours with 44,078,122 units trading, valued at $121,212,820, was the dominant trade although there were only 4 different sets of trades in the stock with two of 22 million shares each.
Main 
Market| The JSE Market Index fell by 420.68 points to 72,048.37 and the JSE All Jamaican Composite index dropped 470.39 points, to close to 79,271.36.
Gains| Stocks with gains, volume and last traded prices at the close of the main market, are Cable & Wireless with 3,108,389 shares, as the price gained 4 to close at 34 cents, Carreras with 259,900 shares changing hands, closed 50 cents higher at $34.50, Grace Kennedy 69,691 shares traded with an increase of $2.50 to $59, Pan Jamaican Investment with 100 units gained 6 cents and ended at $48.08 and Scotia Investments had 26,885 shares traded, with a gain of 60 cents t0 $20.60.
Firm| The stocks with volume and last traded prices in the main market to close without a change in price, are Caribbean Cement with 100 shares closing at $2.50, Jamaica Broilers with 9,655 shares to close at $4.57, Jamaica Money Market Brokers with 20,629 ordinary shares at $7, Jamaica Producers 2,593 shares at $17.50, Mayberry Investments 1,020 units at $1.55 and Proven Investments 5,366 US dollar ordinary share, at 18 US cents.
Declines| The stocks with losses, volume and last traded prices, at the end of trading in the main market, are Berger Paints with 3,500 in losing a cent to end at $1.65, National Commercial Bank with 25,622 shares, lost 14 cents to $18.26, Sagicor Group, lost a cent in trading 4,473 shares at $9.25, Sagicor Real Estate Fund saw 115,150 shares changing hands, with a 15 cents fall to $6.50, Scotia Group shed 50 cents while trading 15,522 units at $19 and Supreme Ventures with 96,198 shares lost 20 cents to end at $1.75, for a new 52 weeks’ low.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 23,413 units with the price unchanged at $3.
Junior Market| The JSE Junior Market Index gained 15.28 points to close at 624.72 as 10 stocks traded, with 5 advancing and 3 declining.
Gains| Stocks recording gains at the end of trading in the junior market, are Access Financial with 4,722 shares, the price gained $1.03 to $10, Caribbean Flavours traded, 44,078,122 units and closed at $2.75, while gaining 30 cents in the process. Lasco Distributors with 48,000 shares, gained 4 cents to $1.05, Lasco Financial traded 54,700 units at 3 cents higher at 93 cents and Lasco Manufacturing with 38,000 units, was up 6 cents to 86 cents.
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before, are Cargo Handlers with 2,312 shares at $14 and General Accident with 3,050 shares at $1.35.
Declines| Stocks declining in the junior market at the end of trading, are Blue Power with 5,000 units as the price lost 5 cent to $9.05, Caribbean Producers with 1,500 shares, with a 7 cents drop, to $2.38 and Dolphin Cove with 4,000 shares, as it shed 85 cents to $7.55.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 12 stocks with bids higher than their last selling prices and 6 stocks with offers that were lower.
Jamaican$ fairly stable
In Tuesday’s forex trading, funds bought and sold by dealers were equally matched. Authorized dealers bought the equivalent of US$40,186,503 versus US$48,682,961 on Monday, and sold the equivalent of US$40,462,437 compared to US$44,817,815 on Monday.
In US dollar trading, dealers bought US$35,531,731 compared to US$43,475,603 on Monday. The buying rate for the US dollar rose 1 cent to $112.21 and US$37,371,084 was sold versus US$42,538,907 on Monday, the selling rate gained 1 cent to $112.82.
The Canadian dollar buying rate fell 43 cents, to $100.82 with dealers buying C$1,339,275 and selling C$987,260, the rate fell 9 cents to $103.26.
The Pound closed at $187.92, for the purchase of £1,935,086 as the rate rose 91 cents while £1,073,666 was sold, as the rate rose 11 cents, to $190.20. Other currencies bought, amounted to the equivalent of US$210,503 while selling was the equivalent of US$377,796.
Highs & Lows| The highest rate for buying the US dollar, fell 10 cents to $113.20, the lowest buying, the highest selling and the lowest selling rates remained unchanged, at $91.85, $117.70 and $91.85 respectively. The highest buying rate for the Canadian dollar rose 18 cents to $104 and the lowest buying rate lost 16 cents to $81.76. The highest selling rate declined by 59 cents to $106.91 and the lowest selling rate was down 20 cents to $98.50. The highest buying rate for the British Pound fell $1.05 to $190.45, the lowest buying rate was unchanged at $152.31, the highest selling rate dipped 28 cents to $196.06 and lowest selling rate climbed 70 cents to $184.20.
Scotiabank pulls down market
For the second consecutive day of trading on the Trinidad Stock Exchange, the price of Scotiabank share fell by more than a dollar as investors marked the price down, to better reflect the marked fall in results that were reported for the second quarter to April.
The fall in the bank’s price, was the main contributor to the downward movement in the market, on Tuesday. In overall trading, 13 securities changed hands, the price of only 1 stock advanced, 5 declined and 7 traded firm as 454,888 units changed hands, with a value of $11,302,210.
The Composite Index lost 3.34 points to close at 1,155.61, the All T&T Index fell by 6.66 points to close at 1,995.66 and the Cross Listed Index remained at 41.31.
Gains| The only stock increasing in price at the close, is Clico Investment Fund Traded 374,294 shares valued at $8,234,491 and advanced by 49 cents to end at $22.
Declines| The stocks declining at the end of trading, are Republic Bank with 6,513 shares changing hands, valued at $794,288 while losing 4 cents to $121.95, Scotiabank with a volume of 19,286 shares valued at $1,255,336, but dropped $1.01 to close at $64.98, a new 52 weeks low and Trinidad Cement with 4,000 units at 4 cents less, at $1.86.
Firm Trades| Stocks closing with prices unchanged at the end of trading are, ANSA Mcal with 2,000 shares at $66.30, Ansa Merchant Bank with 6,395 shares at $39.11, valued at $250,108, First Citizens traded 9,812 units at $36, with a value of $353,296, Guardian Holdings with 3,500 at $14.30, Massy Group with 2,000 shares, traded at $69, National Enterprises traded 575 units at $18, National Flour Mills with 4,650 shares at $1.05, Scotia Investments with 21,513 shares changing hands for a value of $30,058 and closed at $1.40 and West Indian Tobacco traded 350 units to close at $118.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 2 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower.
Lasco Distributors disappoints, major expansion coming
Lasco Distributors reported disappointing results for the first quarter, for the 2015 financial year to June, with revenues crawling up 4 percent to $2.4 billion and profit dropping 45 percent to $91 million from $164 million in 2013.
Lascelles Chin Chairman of the company however, indicated to IC Insider that the company will be embarking on a major expansion which will include increased warehouse space to accommodate distribution of new products. Chin indicated that “the funds from winning the legal case against Pfizer Limited, will play an important role in funding the expansion”. The proceeds is expected to exceed well over J$1 billion. Already “Lasco have acquired a warehouse at a reduced price to what it originally cost to be assembled in Jamaica” Chin Indicated.
This June quarter performance is after the company took on the Salada Foods distribution. Margins on goods sold declined badly to 22.67 percent from 25 percent, while operating cost climbed by 20 percent from $302 million to $361 million. Earnings per share came in at 0.27 cents versus 0.49 cents in 2013.
“We planned for increased staff strength and marketing activities in preparation for pending new product rollouts. The current business environment with a devaluing dollar impacts the trade as there are continuous increases in prices and lower consumer spending power. The company continues to deploy measures to mitigate effects of the volatile market conditions and at the same time maintain its market positioning to provide overall value for consumers.
We continue to build our core portfolio and have several new products in the pipeline to ensure long term growth and profitability,” Peter M. Chin, Managing Director reported to shareholders.
Chin went on to state “total assets grew by 30 percent to $4.288 billion compared to $3.308 billion in the corresponding period last year. Property, plant and equipment grew by 59.7 percent to $313 million. This is primarily due to increased capacity and improvements in work flow processes in the distribution centres in preparation for new product launches.
Inventories increased by $331 million to $1.31 billion and this is mainly due additional inventory from new business agreements. Short Term Deposits increased by $80 million to $552 million and Cash and Bank Balances decreased to $285 million from $496 million. Trade and Other Receivables was at $1.598 billion, an increase of $400 million over the prior year. We continued with the arrangements to extend credit terms to our key institutions. There was also a related increase in Trade and Other Payables, an increase of $570 million to $1.76 billion.”
The company may have had a bad quarter but with plans for expansion and new products to be launched investors may want to be taking a look at the stock now that it’s been hit down to a low level with a view of benefitting when the profits rebound with additional sales to come from new products.
New expanded production phase at Lasco Manufacturing
Lasco Manufacturing is now embarking on a new and expanded phase for their operation, now that the new plant is complete and commissioning is commencing for both the machinery and for new products.
Prior to the expansion kicking in the company saw revenues jumped 28 percent in the June quarter to $1.08 billion. Profits just about kept ahead of the results for 2013, in coming in at $141 million, a 2 percent increase. Gross profit climbed by 26 percent to $315 million from $250 million in 2013, but gross profit margin slipped slightly, from 42.2 percent to 41.3 percent. Operating expenses jumped, 29 percent to $143 million and finance cost was up to $32 million versus almost none in 2013. The bulk of the increased sales, Chairman Lascelles Chin states is from increased production of powder products, with most going into exports.
“Net Profit was impacted by temporary increase in manufacturing cost due to increased staff complement, increased overheads costs associated with the new manufacturing plant as well as increased finance and marketing cost. It was expected that these increases in operating costs would affect the bottom line. We are therefore pleased to report that the Net Profit for the quarter surpassed expectations. The company made significant marketing investment during the period in preparation for the launch of new product lines. This venture involved sponsorship of the FIFA World Cup broadcast. We have completed the construction of the dry blend beverage plant and we are in the process of commissioning the machinery and equipment. Lasco Manufacturing successfully completed construction and commissioning of the equipment for the liquid beverage plant. The plant has now commenced production,” Eileen Chin, Managing Director reported to shareholders with the release of the quarterly report. Las Chin indicated that the production of the liquid plant has just started properly, as some kinks in the system had to be worked out.
Lasco is yet to face the full impact of depreciation charge against profit form the expansion of the plant and factory as the bulk of the expansion cost, remained in work in progress at June on which no depreciation is chargeable until it is transferred to fixed asset. When these amounts are transferred to fixed assets then they be subject to depreciation, which could end up around $100 million per annum as additional charge.
Lasco fixed assets climbed to $3 billion with an increase of $800 million over the position at June 2013 and borrowed funds to $1.5 billion from $1.1 billion at the end of June last year. Accounts receivable rose from to $846 million from $641 million at June 2013. Trade payables declined by $100 million to $235 million.
The first quarter numbers are positive indicator about the future growth of the company. The only question is what will be the appropriate time to buy into the stock to ride what is likely to be an inevitable ride to much higher levels later on.
