Jamaican stocks flashing positive signal

July 12, 2014 by

BullMarket280x150At the end of trading on Friday, the Investor’s Choice bid-offer indicator had 9 stocks with bids higher than their last selling prices and only 1 stock with the offer lower.

This is the strongest signal flashed for some time, but investors would need to see a continuation of this positive ratio to say whether this is an indication of what can be expected in the not too distant future. With Bank of Jamaica sending a powerful signal in the forex market that the top for the Jamaican dollar may be nigh, investors could well be sensing that the time for buying stocks may not be far off. What is known is that the majority of market rallies have their genesis in July or August.
Main Market| In Friday’s trading on the Jamaica Stock Exchange the main market indices advanced, with The JSE Market Index rising by 193.15 points to 70,617.93, up more than 700 points for the wee and the JSE All Jamaican Composite index moved up by 215.98 points to close at 77,671.87, to be up 800 points for the week. The prices of 4 stocks rose and 6 declined as 20 securities changed hands, resulting in 8,773,022 shares trading, valued at $20,787,406. KLE Group dominated trading with 7,181,043 units sold by Craig Powell, one of the company’s directors.
JSE sum 11-7-14Gains| Stocks recording gains at the end of trading in the main market, are Sagicor Group with 586,363 shares, to close with a gain of 4 cents at $9.09 and Sagicor Real Estate Fund, with 20,000 units changing hands, as the price gained 15 cents at to end at $6.25.
Firm| The stocks in the main market to close without a change in price, are Caribbean Cement with 18,248 shares to end at $2.20, Desnoes & Geddes 4,017 units to close at $4.25, Grace Kennedy with 13,251 shares to end at $56, Jamaica Broilers 3,920 units, to close at $4.57, National Commercial Bank 9,160 shares, to end at $18 and Scotia Group with 900 units, to close at $18.40.
Preference| There was no trading in the preference section.
Declines| The stocks that declined in the main market, are Carreras that traded 22,764 shares to close 5 cents down, at $35, followed by Jamaica Producers with 2,062 shares trading, for a fall of 50 cents, in closing at $17.50 and Jamaica Stock Exchange with 250 shares, declined by a cent, to close $1.88.
Junior Market| The JSE Junior Market Index declined sharply by 3.81 percent as it lost 26.75 points to close at 675.01 with 9 stocks traded, with 2 advancing and 3 declining.
Gains| Stocks recording gains at the end of trading in the junior market, are Blue Power with 718,136 units to close up 4 cents, at $9.05 and Lasco Financial with 12,500 units as the price gained 5 cents, to 95 cents.
Firm Trades| Stocks in the junior market that traded to close at the same price as the day before, are AMG Packaging that traded 1,500 shares as the price closed at $3.10, Dolphin Cove with 14,071 units, to close at $8.30, General Accident with 25,000 shares, to end at $1.50 and Jamaican Teas with 22,000 ordinary shares, to close at $3.25
Declines| Stocks declining in the junior market at the end of trading, are Access Financial trading 541 units, to close down $3.50, at $10, Caribbean Producers dropped a cent in trading 117,296 shares, to close at $2.65, and KLE Group lost 3 cents, with 7,181,043 changing hands, to end a an all-time low of 90 cents.

Filed Under: Breaking News, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , , , , ,

Cool increased profits at Caribbean Cream

July 12, 2014 by

Kremi280X150As far back as 2013, IC insider rated Caribbean Cream stock Buy Rated, but it was far too cool for the market who was not buying, they may well change the tune sooner than later as the company is reporting blowout first quarter numbers with profit up 79 percent for the quarter that ends in May.
That is only the start, as IC insider is forecasting earnings to climb to 40 cents for the fiscal year and to rise to 70 cents in 2016. For the year to February this year earnings came out at 11 cents per shares, which was up from 5 cents before. The stock last traded at 70 cents each. As the name suggest the company is in the business of production and sale of ice cream and is listed on the junior stock exchange market.
The improved profit comes against the background of at 19.5 percent revenue increase that was pushed to $252 million, from $211 million in 2013. But it was the performance in gross profit margin that made the huge difference, with a jump of 61 percent to $69 million and was more than adequate to overcome a 58.6 percent jump in administrative, selling and marketing expense that climbed to $47 million, with selling and marketing expense more than doubled. Management indicates that cost associated with the JMA Expo and development cost for the new Kremi advertising campaign, launched at the end of June, helped push cost in this area. The new packaging for the retail products was launched in May, the company reported.
Gross profit margin jumped to 37.8 percent in the quarter from only 25.6 percent in the 2013 period. The improved margin, is a continuation of gains made in the November quarter last year when it climbed to 37 percent. In the November quarter in 2012, the margin was only 24.7 percent and 29.6 percent year to date for the nine months period in 2013. For the year ended February, gross margin was 31 percent, reflecting continued gains in the February quarter.
Growth in sales has slowed and is well down on the growth rate for the February and April quarters, of 48 percent each and 27 percent for the July quarter. Improvement in the plant and new packaging, should help in moving sales to a higher level, than the slower pace over the last three quarters. If this happens then profits should jump even more than the latest figures have.
Capital Spend| During the year to May, capital expenditure amounted to $160 million and was primarily geared to improving efficiency in the factory. The expenditure included commissioning of a new cold room to facilitate holding four times more inventory than before. The next phase will provide for new and larger factory floor and the installation of a new blast freeze equipment that is expected to cut operating cost and spoilage going forward.

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

BOJ’s intervention still impacts FX market

July 11, 2014 by

GhanaMoney280x150Bank of Jamaica’s intervention in the forex market on Thursday, continued to affect forex trading on Friday and seems set to do so on Monday, usually the biggest trading day.
On Friday the selling rates for all three main currencies declined, as the Jamaican dollar strengthened. On Friday, dealers bought the equivalent of $34,345,235 versus US$81,413,723 on Thursday and sold the equivalent of US$27,608,212 compared to US$76,753,326 sold on the previous day.
FX sum 11-7-14In US dollar trading, dealers bought US$26,461,541 compared to US$79,215,627 on Thursday as the buying rate for the US dollar fell 45 cents to $112.06 and sold US$22,353,327 versus US$75,110,656 on Thursday, with the rate falling 2 cents to $112.69.
The Canadian dollar buying rate rose $1.78 cents, to $104.58 with dealers buying C$3,168,875 and selling, C$3,114,771 as the rate declined 66 cents, to $105.33.
The Pound closed at $191.28, for the purchase of £2,827,323, the rate climbed $2.08, while £1,313,681 was sold, with the rate declining by 32 cents to $192.66. Other currencies bought, amounted to the equivalent of US$100,110 while selling was the equivalent of just US$97,465.
FX11-7-14 HLHighs & Lows| There were several highs and lows that were unchanged at the end of trading. The highest rate for buying the US dollar fell 20 cents to $113, the lowest buying and the highest selling rates were unchanged at $92.02 and $117.91 respectively and the lowest selling rate rose 40 cents to $110.20.
The highest buying rate for the Canadian dollar fell by 25 cents, to $105.95 and the lowest buying, the highest and lowest selling rates were unchanged at $83.83, $108.07 and $101 respectively.
The highest buying rate for the British Pound, fell 30 cents to $193, while the lowest buying rate was unchanged at $154.75 and the highest selling rate declined by $3.27 to $196.29, the lowest selling rate was unchanged at $186.45.

Filed Under: FX Market, Stock Market Tagged With: , , , ,

One Caribbean jumps to $25 – a hold

July 11, 2014 by
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TTSE pot 11-7-14fOne Caribbean is no longer a recommended Buy Rated currently based on the jump to $25 per share this week, but seems to be a hold based on the reading of the Trinidad Stock market where it looks as if it should rise some more.
Since July 5 last year when IC Insider gave the stock in the Buy Rated category it has moved up 43 percent and now enjoys a PE ratio of 17.7 compared with 12.6 last year July.
TTSE pe chrt 11-7-14 fnElsewhere Trinidad Cement slipped to $1.90 making it more attractive, even as there is talk of major changes in directorship. Massy Group continues its slow gain as well as Republic Bank but they as well as a number of others remain attractively priced for good gains in the period ahead as they are undervalued.

Why PE?| The price earnings 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 determine which ones are to be bought, sold or held. When the market moves markedly away from the norm it is usually time for investors to move, the PE ratio is a good tool to measure such extremes.
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.

Filed Under: Stock Market, Stocks to watch, TTSE Market Tagged With: , , , , ,

Scotiabank drops on TTSE, more coming

July 11, 2014 by

Scotiabanklogobuilding280x150Scotiabank stock continues it fall on the Trinidad and Tobago Stock Exchange, with the price dropping 21 cents to hit a new 52 weeks low in Friday’s trading, with only a small volume changing hands. Since the start of June, the stock has found no resting price so far, and seems set to decline some more, based on recent profit reported and lack of buyers, at current prices.
On May 28, the bank reported net profit of $250 million for the six months to 30 April 2014, a decrease of $20 million or 7.5 percent, but the 17 percent fall in profit for the April quarter, from $128 million down to $105 has not sit well with investors, leading to a selling of the stock. The last trade of import, before the results, was on the May 22, for 236,520 shares at $70 each, the price it has been trading at for some time. Immediately after the results, the price started to drift downwards before the decline set in. There is not much interest in the stock now, close to recent sale prices. The price would need to drop to around $60 to take full effect of the latest fall in profits, for investors to consider it appropriately valued.
TTSE 11-7-14sumSummary|Trading on the Trinidad stock market, saw an increase in the number of securities changing hands, with 17 being active on Friday, of these, 2 advanced, 6 declined and 9 traded firm, with 246,489 stocks units changing hands, with a value of $2,027,882.
Indices| market activity led to the Composite Index losing 0.47 points, to close at 1,165.23, the All T&T Index falling by just 0.86 points, to close at 2,011.40 and the Cross Listed Index easing by a mere 0.01 points, to end at 41.77.
Gains| Stocks increasing in price at the close, are ANSA McAL with the price increasing 5 cents, to end the day at $66.30, while trading only 200 shares, Massy Group traded just 2 units at $69.50, to gain a cent.
Declines| The stocks declining at the end of trading, are Clico Investment Fund with 5,632 shares valued at $122,019, as the price declined by 4 cents, to end at $21.66, National Flour Mills, 4,857 shares, to close at $1, with a 5 cents fall, Republic Bank added 10,085 shares valued at $1,230,868 and closed down a cent, at $122.05. Sagicor Financial lost a cent when trading 3,440 units, to close at $6.50, Scotiabank suffered a 21 cents fall to close at $68.73, a new 52 weeks low while trading a mere 14 units. Trinidad Cement with 91,244 shares changing hands for a value of $173,365 suffered a fall in price of by 5 cents, to $1.90,
Firm Trades| Stocks closing with prices unchanged at the end of trading, are Angostura Holdings 800 units, to close at $12.98, First Citizens Bank traded 1,650 units to close at $35.02, Grace Kennedy with 67,270 shares valued at $232,042, closed at $3.45, Guardian Holdings 220 stock units, to close at $14.30, Guardian Media 20 shares, to close at $19.75, Jamaica Money Market Brokers contributed 51,904 shares with a value of $23,357, to end at 45 cents, National Commercial Bank with 4,000 stock units, closed at $1.09, National Enterprises 51 shares closed at $18.25 and One Caribbean Media 5,100 units to close at $25.
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 3 stocks with offers that were lower, an indication that the market is likely to continue to trade sidewards.

Filed Under: Stock Market, TTSE Market Tagged With: , , , , , , , , , , , , , , ,

Gary Powell KLE director dumps shares

July 11, 2014 by

KLE_bannerCraig Powell, a director and second largest shareholder in KLE Group dumped part of his holdings in the floundering group, during Friday’s trading on the Jamaica Stock Exchange.

Stocks and Securities acting as brokers, on behalf of the seller and buyer executed the trade at 90 cents each, for the 7,181,043 units that Powell owned. Powell should pocket just under $6,462,938 from the sale, down substantially, from the $26.6 million value placed on it, at the time of the IPO. The amount represents a portion of 10,693,750 that the company’s prospectus said he held prior to the issuing shares to the public in 2012, and now leaves him holding 3,201,343 units. At the time of the IPO, the amount represented 14.64 percent of the total issued shares, after the issue it would have come down to 10.70 percent, the prospectus stated. Powell’s holding after the public issue was second only to Gary Matalon’s holdings of 13.69 percent. At the time of the public issue Usain Bolt’s Sherwood Holdings Limited held 6,757,000 in the company. KLE’s 2013 annual report, lists Sherwood as still owning them.
craig_powell-280x280Who is Powell?| The KLE prospectus list Powell’s credentials as follows: “Non-Executive Director he was appointed September 8th, 2008. Powell has over twenty-four (24) years’ experience in management and event marketing and promotions. Powell’s work experience spans operations management at the Sunset Jamaica Grande Hotel, regional sales and marketing at Amalgamated Distributors Limited and management at Midel Distributors Limited.
Powell also has a wealth of experience in the event-planning and entertainment industry, having been a principal in many of Jamaica’s premier entertainment attractions and events, such as The Appleton Estate All-Jamaica Grill-Off, which is perhaps the only event of its kind in Jamaica.
Powell also has substantial agricultural investments, which includes the production and export of produce and has an interest in Jamaica Hydroponics Ltd., a company that grows and distributes vegetables to hotels and retail outlets. Jamaica Hydroponics Limited owns and operates the largest hydroponics farm in Jamaica.”
KLE Group has been bleeding badly, having made a loss of $56 million in 2013, it followed that up with a loss of $13 million in the March quarter this year, but this was an improvement on the $17 million loss they suffered in the March 2013 period.

Filed Under: Breaking News, Company News, General Business News, Insider Trades, JSE Main Market, Stock Market Tagged With: , , , , , ,

Bank of Jamaica tames market with big sale

July 10, 2014 by

BankofJamaicaBOJBank of Jamaica’s announcement on Wednesday that they would intervene in the forex market on Thursday, led to heavy volume of US dollar being bought and sold, with dealers buying US$79.2 million and selling US$75 million, the rate for selling the US dollar slipped back by 3 cents Jamaican to J$112.71, compared with J$112.74 on Wednesday.
FX sum 10-7-14On Thursday, dealers bought the equivalent of $81,413,723 versus US$30,976,689 on Wednesday and they sold the equivalent of US$76,753,326 compared to US$27,377,149 sold on the previous trading day.
In US dollar trading, dealers bought US$79,215,627 compared to US$27,065,797 on Wednesday as the buying rate for the US dollar rose 36 cents to $112.50 and sold US$75,110,656 versus US$29,837,045 on Wednesday, with the rate falling 3 cents to $112.71.
The Canadian dollar buying rate fell 33 cents, to $102.79 with dealers buying only C$749,467 and selling even less, C$510,916 as the rate declined, 56 cents to $105.99.
The Pound closed at $189.20, for the purchase of £751,860, the rate declined 19 cents, while £341,356 was sold, with the rate unchanged at $192.97. Other currencies bought, amounted to the equivalent of US$248,856 while selling was the equivalent of just US$577,766.
FX hl -10-7-14Highs & Lows| The highest rate for buying the US dollar fell 5 cents to $113.20, the lowest buying and the highest selling rates were unchanged at $92.02 and $117.91 respectively and the lowest selling rate rose $16.33 to $109.80.
The highest buying rate for the Canadian dollar was up by 10 cents, to $106.20 and the lowest buying rate was unchanged at $83.83. The highest selling rate fell 32 cents, to $108.07 and lowest selling rate was unchanged, at $101.
The highest buying rate for the British Pound, fell 35 cents to $193.30, while the lowest buying rate was unchanged, at $154.75 and the highest selling rate climbed by $3.22, to $199.56, the lowest selling rate was rose $1.35 cents, to $186.45.

Filed Under: FX Market, Stock Market Tagged With: , , , , , ,

Dealers buy US$81m, sold US$77

July 10, 2014 by

Image courtesy of Marcus/FreeDigitalPhotos.net

Image courtesy of Marcus/FreeDigitalPhotos.net

Bank of Jamaica’s announcement on Wednesday that they would intervene in the forex market on Thursday, led to heavy volume of US dollar being bought and sold, with dealers buying US$79.2 million and selling US$75 million, the rate for selling the US dollar slipped back by 3 cents Jamaican to J$112.71, compared with J$112.74 on Wednesday. Dealers bought a total of US$81 million in all currencies and sold US$77 million.

Filed Under: Breaking News, FX Market, General Business News, Stock Market

Few gains as market declined moderately

July 10, 2014 by

In Thursday’s trading on the Jamaica Stock Exchange, the prices of only 2 stocks rose and 9 declined with 24 securities changing hands, resulting in 3,236,728 stock units trading, valued at $17,661,162. Price changes were moderate and is reflected in moderate declines in the market indices.

JSE sum 10-7-14fMain Market| The JSE Market Index fell by 168.40 points to 70,424.78 and the JSE All Jamaican Composite index declined by 188.30 points to close at 77,455.89.
Gains| Only Sagicor Real Estate Fund gained at the end of trading in the main market with 87,160 shares to close with a gain of 10 cents at $6.10.
Firm| The stocks in the main market to close without a change in price are Cable & Wireless with a mere 735 units to close at 29 cents, Caribbean Cement 5,936 shares to close at $2.20, Jamaica Broilers 24,427 units and closed at $4.57, Jamaica Money Market Brokers with 1,000,000 shares to close at $7, Kingston Wharves 5,132 units to end trading at $6, National Commercial Bank with 51,246 shares trading, to close at $18, Pan Jamaican Investment 9,500 units that traded to close at $48.02 and Scotia Group with 17,500 shares trading to close at $18.40.
Preference| Jamaica Money Market Brokers 7.50% preference share with 436,000 units traded to close at $2 and Jamaica Money Market Brokers 8.75% preference share, 343,347 units traded to close at $3.03.
Declines| The stocks that declined in the main market are Berger Paints with 5,939 shares, declined by 5 cents to close at $1.60, Carreras with 25,536 units changing hands, to close 15 cents lower, at $35.05, Desnoes & Geddes 600 shares closing at 15cents down at $4.25, Jamaica Producers with 3,023 units traded down 24 cents to close at $18 and Sagicor Group with 481,750 shares closed at $9.05 with a 4 cents fall.
Junior Market| The JSE Junior Market Index declined by 9.89 points to close at 701.76 as 8 stocks traded with only 1 advancing and 4 declining.
Gains| General Accident Insurance was the only stock in the junior market to record an increase in price as 414,536 shares were traded to close 5 cents higher at $1.50.
Firm Trades| The stocks in the junior market that traded to close at the same price as the day before Blue Power with 7,100 shares traded to close at $9.01, Consolidated Bakeries 5,000 shares traded to close at 70 cents, Lasco Distributors with 206,900 shares trading, to close at $1.20.
Declines| Stocks declining in the junior market at the end of trading are Caribbean Producers traded 2,000 units to close with a 17 cents fall to $2.66, Dolphin Cove had 961 shares changing hands but declined by 20 to end at $8.30, Lasco Financial had 5,400 units to close with a 10 cents decline at 90 cents, a 52 weeks low and Lasco Manufacturing with 97,000 shares to close 8 cents off at $1.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with bids higher than their last selling prices and 5 stocks with offers that were lower.

Filed Under: Stock Market, TTSE Market Tagged With: , , , , , , , , , , , , , , , ,

Six stocks up, 3 down on TTSE

July 10, 2014 by

Trading on the Trinidad stock market saw 14 securities changing hands on Thursday, of which 6 advanced, 3 declined and 5 traded firm with 417,721 stock units changing hands, with a value of $23,285,631. Price movements were all moderate by the end of trading.
The Composite Index gained 0.55 points to close at 1,165.70, the All T&T Index fell by just 0.35 points to close at 2,012.26 and the Cross Listed Index increased by a mere 0.19 points to end at 41.78.
FXchrt 10-7-14Gains| Stocks increasing in price at the close, are ANSA Merchant Bank with only 400 shares changing hands and ended with a 1 cent gain at $39.04, Clico Investment Fund posted a volume of 14,930 shares, valued at $323,704 and advanced by 5 cents to end at $21.70, First Citizens Bank traded 5,340 shares to end at $35.02 with a 1 cent gain, Jamaica Money Market Brokers added 10,000 shares, to close 4 cents higher at 45 cents, Republic Bank traded 227 shares to close with a gain of a cent at $122.06, for and Sagicor Financial Corporation contributed 16,940 shares with a value of $110,239 while gaining a cent, to close at $6.51.
Declines| The stocks declining at the end of trading are Angostura Holdings with 963 units to close down 2 cents, at $12.98, followed by Guardian Holdings, with 455 shares, to close at $14.30 while shedding a cent and Massy Group traded 4507 shares and suffered a loss of 2 cents, to close at $69.49.
Firm Trades| Stocks closing with prices unchanged at the end of trading, are ANSA Mcal with 334,439 shares changing hands for a value of $22,156,584, ended at $66.25, Firstcaribbean International Bank with a volume of 22,400 shares traded with value of $112,000, closed at $5, National Commercial Bank had 6,070 units changing hands at $1.09, Prestige Holdings 1,000 units, traded to close at $9.41 and Trinidad Cement with 50 units, closed at $1.95.
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 3 stocks with offers that were lower.

Filed Under: Stock Market, TTSE Market Tagged With: , , , , , , , , , , , , , , ,
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