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Trinidad & Tobago PE Ratio

June 9, 2014 by IC Insider.com

The use of standards is vital in the assessment of stock values as investors are constantly comparing one investment with another. 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 decide which ones are to be bought sold or held on to.

Pass developments also inform seasoned investors as markets tend to have familiar recurring patterns over time. When the market moves markedly away from the norm it is usually time for investors to move. Nowhere is this truer than PE ratios. Investors should therefore keep track of historical price earnings ratios and compare them with the current ones. Ratios that have been high in the past and are now low, may indicate potential.

Use of the PE ratio| There is a tendency to look at the earnings per share of companies and apply a price earnings ratio to them to arrive at the value of a stock. This is one approach, but we should go further, with companies having hidden values the purist approach will miss the underlying value that could surface at any time. Astute investors will take into account the difference in treatment of accounting policies could have on earnings in assessing company value. It usually takes a longer time for such concepts to gain investor acceptance, but once widely accepted, the patient investor is usually rewarded. increase in value for the stock or vice versa.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.

The Trinidad market has several stocks that are priced at a PE that is below the market, this has been so from early 2013 and continues to present.

Filed Under: TTSE Market

Ghana stocks up for another week

June 8, 2014 by IC Insider.com

Ghana Commercial Bank 2013 annual general meeting – the bank’s stock rose 27% for the week

The Ghana stock market continues to recover from the decline the market suffered since peaking in February. During the week the market closed with the composite index at 2,343.98 with 11 stocks rising while 7 declined, a marked change over the previous week when the composite index closed the previous at 2,319.12 points with the prices of 8 stocks climbing and 7 declining.
The financial services index closed the week at 2,066.58 up from 2,033.20 the week before. During the week, 1,868,436 shares were traded, down from 3,235,500 units in the week before. At the end of trading there were bids for 18 securities and offers for 28, an indication of weakness in the overall market.
Gains| The stocks closing with strong gains include, Benso Oil Palm Plantation that rose by 6 percent to close at GH¢2.48, Ecobank Ghana gained GH¢0.55 or 8 percent to reach GH¢7.05, Ecobank Transnational Incorporation gained GH¢0.03 or 15 percent to close at GH¢0.23, Ghana Commercial Bank closed at GH¢5.35 as the price jumped by 27 percent or GH¢1.14, HFC Bank closed up GH¢0.11 to GH¢1.45 for an 8 percent gain, Produce Buying Company gained 8 percent to GH¢0.14, Sic Insurance gained 14 percent to close at GH¢0.42, Societe Generale Ghana was up 11 percent to GH¢0.92 and Sam Wood gained 33 percent to end at GH¢0.04.

The big losers are Enterprise Group with a loss of GH¢0.57 to close at GH¢1.42 for a 29 percent decline, Mega African Capital lost 11 percent in value to close at GH¢3.10 and Mechanical Lloyd ended at GH¢0.29 down by 12 percent.

J$111.37 to buy a US$

June 6, 2014 by IC Insider.com

The Jamaican dollar lost further ground against the US dollar and the Pound sterling but gained against the Canadian dollar in Friday’s trading. The selling rate for the US dollar was up by a cent to $111.37 as a total of US$41 million was bought by dealers and $38.8 million was sold. The rates for the Canadian dollar settled at $100.50 buying, down by 30 cents and selling at $101.74 down by 29 cent. The Pound traded 90 cents lower at $184.56 buying and was 50 cents higher in the selling rate of $187.20 for each pound.

Filed Under: FX Market

Net International Reserves Down

June 6, 2014 by IC Insider.com

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Jamaica’s Net International Reserves (NIR) fell by US$120 million in May. The NIR moved from US$1.285 billion to US$1.165 billion and is now at the equivalent of 12.66 weeks of Reserves in Weeks of Imports of Goods and Services.

Filed Under: Economy, FX Market

Scotia, Sagicor & Jamaica Producers dominate

June 6, 2014 by IC Insider.com

In today’s trading on the Jamaica Stock Exchange the prices of 3 stocks rose and 5 declined as 21 securities traded, resulting in 4,480,674 shares changing hands valued at $60,967,296. Three stocks account for the bulk of trading as the market traded heavily in Scotia Group shares from the start of trading as 952,700 units of the stock were bought up to $22 each at 9.33 in the morning session as Scotia Investments bought all but 81,019 units up to that point. In the end the stock saw trading in 1.4 million units with the price closing back down at the $19 level and an offer at $19.30. With the early trading in Scotia Group the price gain helped to push the JSE All Jamaican Composite Index 2,475.52 points to 79,451.52 while the JSE Index was up 2,213.90 to 72,209.50.

Main Market| Only the prices of 2 companies in the main market rose and 4 declined as the indices moved up with the JSE Market Index jumping by 1,744.16 points to 71,993.01 and the JSE All Jamaican Composite index gained 1,950.27 points to close at 79,209.45. The big increase was driven primarily by the Scotia Group price movement but with the price ending at $19.10 when trading resumes on Monday the main market indices are likely to drop.

Gains| Stocks recording gains at the end of trading in the main market are Jamaica Producers 433,941 shares with a value of $7,593,968 to close with 50 cents gain at $17.50 and Sagicor Group 2,112,491 shares changing hands at $19,117,659 as the price closed up 5 cents at $9.05.

Firm| There were 10 stocks in the main market to close without a change in price as Berger Paints traded 3,799 shares and closed at $1.70, Caribbean Cement 8,500 units and closed at $2.70, Desnoes & Geddes with 8,379 shares closed at $4.25, Jamaica Money Market Brokers with 24,019 units, closed at $6.70, Kingston Properties traded 7,320 shares to close at $4, Kingston Wharves 2,649 units at $5.05, National Commercial Bank 101,320 shares and closed at $17.50, Sagicor Real Estate Fund 11,420 shares at $6.50, Scotia Group 1,408,904 shares valued at $29,844,734 to close at $19.10 and Scotia Investments 2,000 units as the price closed at $23.

Declines| The number of stocks that declined in the main market are Carreras with 3,325 shares while losing 5 cents to close at $35.25, Grace Kennedy with 3,906 units to close 50 cents down at $53.50, Jamaica Broilers 9,318 shares with the loss of 4 cents to end at $4.56 and Pan Jamaican with 31,595 units as the price slipped back by $1.50 to $48.50.

Junior Market| The JSE Junior Market Index declined by 0.16 point to close at 728.41 as the stocks of only 5 companies traded with one advancing and one declining.

Gains| The only stock gainig at the end of trading in the junior market is Consolidated Bakeries that gained 5 cents to close at 90 cents with 120,000 units changing hands.

Firm Trades| 3 stocks in the junior market stocks that traded to close at the same price as the day before are Lasco Financial with 4,300 units to end at $1.15, Lasco Manufacturing 39,322 shares at $1 and Medical Disposables with 109,387 units to close at $2.

Declines| The only stock declining in the junior market at the end of trading is General Accident with 34,779 units to close at $1.50 with the loss of 2 cents.

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 7 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.

Filed Under: JSE Main Market

One stock rose to close week

June 6, 2014 by IC Insider.com

Trading on the Trinidad stock market closed the week with more stocks declining than gaining with 14 securities changing hands, one advanced 5 declined and 8 traded firm with 94,363 stocks trading with a value of $1,642,870.

The Composite Index advanced by a mere 0.18 point to close at 1,183.20, the All T&T Index rose by just 0.42 point to close at 2,030.87 and the Cross Listed Index eased slightly by only 0.01 point to end at 43.96.

Gains| The only stock increasing in price at the close is National Enterprises that gained 6 cents to end the day at $18.96 while trading 1,000 shares.

Declines| The stocks declining at the end of trading are Clico Investment Fund with 4,765 shares valued at $103,162 and closed at $21.64 for a one cent decline, National Flour with 1,000 shares, declined by a cent to close at $1.08, Flavorite Foods with just 50 shares changing hands closed with a decline of 5 cents to end at $6.70, Readymix lost 13 cents to close at $19.36 while trading only 50 shares and Scotiabank traded just 714 shares to close down by 10 cents at $69.90.

Firm Trades| Stocks closing with prices unchanged at the end of trading are First Citizens Bank, 848 shares to end at $38, Guardian Holdings 2,000 shares to close at $14.75, Jamaica Money Market Brokers contributed 10,927 shares with a value of $4,917 and closed at 45 cents, National Commercial Bank had 50,000 shares changing hands for a value of $52,500, the stock closed at $1.05, L J WILLIAMS class B share traded 100 units to close at 90 cents, Neal & Massy traded 14,088 shares for $968,550 to close at $68.75, Republic Bank traded 2,818 shares to close at $120.70 and Sagicor Financial saw 6,003 units change hands valued at $40,539 to close at $6.75.

The week| Price changes during this past week have been very moderate resulting in little change in prices between the start and end of the week. This development meant that the average PE of the market that was at 13.6 at the start of the week remaining unchanged. With this the outstanding buys with potential for above average growth are Trinidad Cement, Point Lisa, Guardian Holdings, Berger Paints, National Flour, Neal & Massy, Republic Bank and Citizens Bank. One Caribbean Media seems poised to rise further but with potential gains of 25 percent, the risk for investing now for short term gains is elevated.

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and only one with the offer lower.

Filed Under: Stock Market, TTSE Market

JSE jumps in early trading

June 6, 2014 by IC Insider.com

The market traded heavily in Scotia Group shares from the start of trading today as 952,700 was bought up to $22 each at 9.33 AM as Scotia Investments traded all but 81,019 units, the first trade of the day going through at $20. At 9.38 AM, Scotia Investments sold 100,000 units to Mayberry at $21.74 bringing the total traded in Scotia to 1,052,700 shares.

The price gain helped push the JSE All Jamaican Composite Index 2,475.52 points to 79,451.52 while the JSE Index is up 2,213.90 to 72,209.50.

Consolidated Bakeries traded 100,000 units at 86 cents and Berger Paints 3,759 units at $1.0 are the only other stocks to trade so far.

Filed Under: Company News

Operating profits up 81% at JMMB

June 6, 2014 by IC Insider.com

Jamaica Money Market Brokers (JMMB) had their best year ever in the period leading up to the end of March this year, chalking up at 80.7 percent increase in ongoing earnings. The market is not impressed as the stock has been trading down on both Trinidad and Jamaica stock exchanges recently and after the posting of the results. With profit after tax coming in at $2.8 billion including a $362 million for gains form the purchase of the shares in its fully owned subsidiary which it acquired fully in 2013, the group earned $1.74 per share for the year, placing the PE at 4 times last year’s earnings and around 2.7 times IC Insider projected 2015 earnings. In 2013 JMMB reported $3.74 billion but that was helped considerably by a $2 billion gain from the acquisition of the shares of Capital and Credit Group, without that gain earnings would be just $1.7 billion in that year.

Financial & Related Services contributed profit before tax of $2.62 billion and Banking & Related Services $443 million, these are up from $1.66 billion and just $33 million respectively reported for 2013.

Revenues grow| In a year when they took over the balance of the shares not previously owned by them in Intercommercial Bank in Trinidad, revenues climbed to $15.75 billion from $12.9 billion in 2013 or a 22 percent increase but staff and administrative cost rose from $4.6 billion to $5.67 billion in 2014 for a 12.3 percent increase, well below the growth in revenues but interest cost climbed only 6 percent.

According to the audited financial statements “In the six month period ended 31 March 2014, Intercommercial Bank contributed revenue of J$794,210,000 and net profit of J$156,445,000 to the Group’s results. If the acquisition had occurred on 1April 2013, management estimates that revenue would have been J$1,436,439,000, and net profit for the year would have been J$106,459,000”.

Assets|Total assets climbed to more than $200 billion for the first time ending at $207 billion versus $167 billion at the end of March 2013. A fair bit of the growth came as a result of the acquisition of the shares in the Trinidad bank which contributed $24 billion but with equity capital of just over $18 billion there is some amount of exposure as leveraging is at a high level with customer deposits at $36 billion and repos payable of $143 billion.

JMMB has operations mainly in Jamaica, Dominican Republic and Trinidad and Tobago. This stock stills carries IC Insider Buy Rating.

Filed Under: Company News, Company Results, General Business News, JSE Main Market, Stock Market

Neal & Massy at new high

June 5, 2014 by IC Insider.com

Trading levels on the Trinidad stock market was moderate with 15 securities changing hands of which 5 advanced 2 declined and 8 traded firm with 219,721 stocks trading with a value of $1,577,534.
The Composite Index lost 0.28 points to close at 1,183.02, the All T&T Index fell by just 0.55 points to close at 2,030.45 and the Cross Listed Index was unchanged at 43.97.
Gains| Stocks increasing in price at the close are First Citizens Bank with only 50 units but closed at $38 to gain a cent, Neal & Massy added 2,681 shares valued at $184,243, the price rose 17 cents to close at a new 52 weeks high of $68.75, Point Lisas Industrial Port Development traded only 42 units to close 4 cents higher at $3.86, Republic Bank traded 304 shares as the price rose 5 cents to close at 120.70 and West Indian Tobacco 970 shares traded at $118.15 with a 12 cents increase.
Declines| The stocks declining at the end of trading are Agostini’s with 389 units at $17.49 with a 6 cents fall, Angostura Holdings traded 25,380 shares for $323,695 to close with a fall of 23 cents at $12.75.
Firm Trades| Stocks closing with prices unchanged at the end of trading are Berger Paints that seldom change hands with a mere 9 units trading to close at $3.60, Clico Investment Fund closed with a volume of 37,325 shares valued at $807,836 at $21.65, Jamaica Money Market traded 141,966 shares for a value of $63,885 to close at 45 cents, National Commercial Bank contributed 6,000 shares with a value of $6,300 and closed at $1.05, while One Caribbean Media with 605 shares ended at $22.60, Praetorian Property Mutual Fund had 2,000 units to close at $3.40, Prestige Holdings traded 1,000 shares to close at $9.40 and Scotia Investments traded 1,000 shares and closed at $1.60

IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 3 stocks with offers that were lower.

Filed Under: Stock Market, TTSE Market

Market lost ground

June 5, 2014 by IC Insider.com

In today’s trading on the Jamaica Stock Exchange the prices of 9 stocks rose and 7 declined as 26 securities traded resulting in 2,457,435 shares trading valued at $11,593,613.
The JSE Market Index fell by 572.35 points to 70248.85 and the JSE All Jamaican Composite index slipped by 639.99 points to 77,259.18.
Jamaica Producers fell $1.24 to close at $17 as 122,777 units were traded, JMMB lost 30 cents to close at $6.70 while trading 1,210 shares, in spite of an 80 percent jump in ongoing earnings to March this year and Pan Jamaican Investment gained a $1.60 to close at $50 while trading 27,022 units between $49 and $50.
Junior Market| The JSE Junior Market Index declined by 7.63 points to close at 728.57 as 5 stocks traded.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.

Filed Under: JSE Main Market, Stock Market