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Access & its CEO in Court

April 11, 2014 by IC Insider.com

The Jamaica Stock Exchange has been advised by the Company Secretary of Access Financial Services Limited in a letter dated 9th April, 2014, of an ongoing dispute with its Chief Executive Officer, Marcus James.

In the course of the dispute, litigation has been initiated by James against the Company and it is reported that pending a full hearing of an application for injunction, a Judge of the Supreme Court granted an injunction to 23rd April 2014 to restrain the Company from holding disciplinary proceedings that could result in the removal of James as Chief Executive Officer.

From the report made to the Jamaica Stock Exchange, “the dispute involves serious allegations and counter-allegations having to do with the governance of the Company and its assets.”

James is the initiator in forming the company and holds one of the largest blocks of the issued shares.

Access Financial Services Limited is listed on the Junior Market of the JSE.

Related posts | Access moved to Market Watch | Access growth continues

JSE needs revamping

April 9, 2014 by IC Insider.com

There are clearly some major weaknesses at the Jamaica Stock Exchange but no one wants to fix it, not its executive management or any of the board of directors.

Those close to the JSE may feel that there are persons with a vendetta for them but nothing could be further than the truth. The problem is that in many cases, situations that make no sense are brought to their attention and no one does anything about it. Take the matter of the daily stock market report. It has been brought to the attention of the JSE that the report is erroneous as it does not summate the volume and value properly. For example, the volume associated with the main market includes the preference shares. However, those shares don’t form a part of the index and therefore should not be reported as such. Also, the market volume does not include Proven Investments shares even as it is reported on the daily report.

The information below is an extract of stock exchange report taken from Tuesday’s trading:

“Market volume amounted to 3,444,116 units valued at over $18,332,628. Jamaica Money Market Brokers Limited 8.75% was the volume leader with 2,827,574 units (51.74%) followed by LIME with 1,850,500 units (33.86%) and Jamaica Broilers Ltd. with 435,184 units (7.96%).”

As reported, the volume of Cable & Wireless and JMMB preference shares adds to nearly 4.7 million shares yet the report says 3.4 million traded. What sort of nonsense is this? How can the stock exchange publish such erroneous information and no one does anything about it? In fact, there was trading in 6.27 million shares on Tuesday not 3.44 million.

Then there continues to be the matter of Cable & Wireless Jamaica that did not change its name, but changed its brand name to Lime. The Stock Exchange lists the ordinary shares as Lime and the preference shares as Cable & Wireless. However, there is no limited liability company with the name Lime, so why the JSE continues this practise is beyond good reasoning. Worse yet, is to have one listing as Lime and two as Cable & Wireless in the preference segment gives the wrong impression that these are two separate companies.

The JSE hardly made money in 2014, yet it pushed First Caribbean International Bank off the Exchange. This action happened shortly after the JSE went public at an elevated price, which would suggest that they would want to retain as much income as possible, but no, they delisted the bank, thus cutting its income and depriving some local investors the ready access to trade in those shares locally.

Another matter that the JSE needs to deal with is the 15 percent rule, which was instituted in the 1990s when it was thought that the rule would prevent wild swings in prices. The rule may be useful when prices are in triple digits, but when a stocks sells for less than $20, it makes little sense. Barbados has a similar rule, but they suspend trading in the stock for 15 minutes to allow information to go out to investors and then re-open trading. The rule that states that a stock cannot move by more than 15 percent in a day is far too restrictive and prevents liquidity in the stock until the price gets equilibrium. Jamaica must move to the more enlightened Barbados regulation in this regard.

Filed Under: Breaking News, JSE Main Market, Stock Market Tagged With: Jamaican Stock, JSE Company, Trading Activity

JSE: Sharp jump in stocks rising will it last?

April 8, 2014 by IC Insider.com

Tuesday, 8th April 2014 | In today’s trading on the Jamaica Stock Exchange, the prices of 15 stocks rose and 6 declined as 28 securities traded resulting in 6,273,690 shares trading valued at only $18,352,886. Cable & Wireless with 1,850,500 shares and Jamaica Money Market Brokers 8.75% preference shares with 2,827,574 units dominated the volume of stocks trading.

Main Market | Nine companies in the main market advanced and so did Proven US denominated ordinary shares and only 3 declined as the indices fell, with the JSE Market Index declining by 105.87 points to 76,289.54 and the JSE All Jamaican Composite index falling by 118.34 points to close at 84,012.93.

Gains | Stocks recording gains at the end of trading are Cable & Wireless with 1,850,500 shares trading with a cent gain to close at 48 cents; Desnoes & Geddes closed at $5 as the price gained 55 cents with only 2,500 units changing hands; Gleaner 16,000 units to end at $1.20 for a 7 cents gain; Jamaica Broilers 435,184 shares to close 3 cents higher at $4.90; National Commercial Bank 45,340 shares in closing at $19.00 as the price put on $1; Pan Jamaican, a mere 158 units as the price ended a cent higher at $49.61; Proven Investments US dollar ordinary, 1,000 units at a new high of 18.5 US cents for a gain of 0.5 US cent; Sagicor Group 31,112 shares to close 10 cents up at $9.90; Sagicor Real Estate Fund 4,295 units as it closed up 5 cents at $6.75 and Scotia Group gained 30 cents to end at $21.50 as 52,480 shares changed hands.

Firm Trades | The stocks in the main market to close without a price change are Hardware & Lumber with 500 shares closing at $11.80; Jamaica Money Market Brokers that traded 1,000 units and closed at $ 7.20; Jamaica Money Market Brokers 8.75% preference share with 2,827,574 units at $3.03; Jamaica Producers with only 200 units at $18.26; Mayberry Investments 10,720 shares at $1.85; 1,000 units Proven Investments 8% preference shares at $5.09 and Salada Foods with 10,000 shares at $8.

Declines | The stocks that declined at the end of trading are Carreras while losing 50 cents to end at $35.25 with 16,950 shares; Grace Kennedy with 4,500 shares as the price closed at $56.01 for a fall of 79 cents; Radio Jamaica had 4,500 units in closing at $1.28, down by 2 cents and Seprod with 150,000 shares to close at $11.05 after shedding $1.95.

Junior Market | The JSE Junior Market Index advanced by 7.63 points to close at 751.68 with only 7 securities traded.

Gains | Caribbean Flavours traded just 2,221 units to close at $2.80, up 35 cents; Dolphin Cove traded only 804 shares to end at $8.11 for a 1 cent gain; Jamaican Teas 22,060 shares as it closed with 5 cents gain to $3.20; Lasco Distributors 108,959 units in closing at $1.50 for an increase of 10 cents and Lasco Manufacturing which ended trading with 75,000 shares as the price gained 5 cents to end at $1.30.

Firm Trades| There were no junior market stocks trading firm.

Declines | Caribbean Producers traded 312,000 units to close at $2.75, down 25 cents and Medical Disposables 287,133 units as the price faded by 10 cents to $2.

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 3 stocks with offers that were lower.

Filed Under: JSE Main Market, Stock Market Tagged With: Daily Trading, Jamaican Stock, JSE Company, Trading Activity

Better fiscal out turn to February

April 4, 2014 by IC Insider.com

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The Government of Jamaica bettered the fiscal out turn to February by $2.9 billion compared to the budgeted target. The improved performance was the result of revenues for the 11 months declining by $18 billion versus the budgeted amount of $354 billion and expenditure was down as well by $20.9 billion.

For the year to date, revenues are 12 percent ahead of 2013 fiscal year out turn of $336 million. With the March figures to be reported in April, revenues for the full year should increase to end in line with the growth to date and be around $385 billion compared with $344 billion at the end of March last year, assuming no major unexpected inflows.

The results to date, along with the March inflows and with the target of a primary surplus of 7.5 percent for the fiscal year, should result in the fiscal out turn ending in surplus for the first time in many years. At the end of February, the primary surplus was at $78 billion or $34 billion below the target of $111 billion set at the start of the fiscal year. Achieving this target would result in a surplus of $10 billion.

On the surface there will be concerns that revenues for February at $31.3 billion are lower than for 2013 at $31.5 billion in spite of the increased levy of new taxes at the start of the fiscal year. The apparent poor performance in February this year is due to a big intake of $6.4 billion in withholding taxes on interest, while the 2013 figures include just $2 billion. But for this big one-off inflow, the 2013 revenues would be up 7 percent. Tax revenues are up by $27 billion or 10 percent for the eleven month period with the exclusion of withholding tax on interest.

Filed Under: Breaking News, Economy Tagged With: Deficit, Economy, GOJ

Early trade gains wiped out

April 4, 2014 by IC Insider.com

Jamaica closed out 2013 slightly worse off in the trading account than for 2012 as the trade deficit increased by $56 million. This fully reverses the gains enjoyed to November when the deficit was down by US$289 million.

The out turn for 2013 flowed from expenditure on merchandise imports declining by US$113 million to US$6.22 billion compared to 2012 and a fall in export earnings of US$168 million to reach US$1.56 billion. The trade deficit for 2013 amounted to US$4.66 billion compared to the US$4.6 billion recorded for 2012.

Up to November 2013, imports fell by US$392 million and exports fell by US$112 million resulting in the trade deficit falling by 6.2 percent compared to the similar period in 2012.

Overall imports for the 11 months to 2013 was US$5,664 million, down from US$6.06 billion in the 2012 and exports US$1,442 million, resulting in a trade deficit of US$4.22 billion.

Filed Under: Breaking News, Economy Tagged With: Deficit, Economy, Trade

Remittances up in January

April 2, 2014 by IC Insider.com

Jamaica continues to benefit from increased remittance flows as the countries that were negatively affected by the down turn in their economies in 2008 continue to mend.

Net remittances for January 2014 were US$138 million, an increase of US$8 million or 6.2 percent relative to the corresponding period of 2013. The growth in net remittance inflows reflect an increase in gross remittance inflows and a contraction in outflows.

Gross remittance inflows amounted to US$158 million, an increase of US$4 million or 2.7 percent compared to January last year. The rise in total remittance inflows emanated from an increase of US$6 million in inflows through Remittance Companies and partly offset by a reduction of US$1.4 million in inflows from Other Remittances.

The January increase follows a record year in which Jamaica topped $2B in remittance inflows.

Filed Under: Breaking News, Economy Tagged With: Economy, Remittances

Securities traded up but prices mixed

April 2, 2014 by IC Insider.com

There was trading in 16 securities on the Trinidad Stock Exchange on Wednesday, 4 advanced, 3 declined and 9 traded firm, as 157,712 shares traded with a value of $1,646,580.
Market activity lead to two new 52 weeks highs and moderate movements in the indices, with the Composite Index edging up 0.43 points to close at 1,169.87, the All T&T Index gaining 1.73 points, to close at 1,985.33 and the Cross Listed Index declining by 0.12 points to 46.49.
Gains| First Citizens Bank contributed 17,200 shares with a value of $596,996 and gained 70 cents, to close at $34.70, Praetorian Property Fund advanced by a cent to end at $3.41, as it traded 2,000 units, Republic Bank traded a mere 83 units, as the price moved up a cent, to close at $120.17 for a new 52 weeks high and Unilever Caribbean traded just 31 shares to close 2 cents higher at $58.22, a new 52 weeks high.
Firm Trades| Stocks trading with unchanged closing prices, are Angostura Holdings with 16,470 shares valued at $181,170, to close at $11, Flavorite Foods with 33 units at $7, Grace Kennedy with 45,600 shares changing hands for a value of $159,600 and closed at $3.50, National Flour Mills 10,000 shares at $1.26, Neal & Massy 100 shares at $66.31, Prestige Holdings 500 units at $9.35, Scotiabank 138 shares at $71, Trinidad Cement 895 units at $2.06 and West Indian Tobacco 216 units at $118.
Declines| Clico Investment Fund traded 13,277 shares valued at $288,603 as the price declined by 15 cents, to end at $21.70, Jamaica Money Market Brokers traded 6,300 shares to close down 2 cents to 54 cents and Sagicor Financial Corporation with a volume of 44,667 shares traded for $312,669 as the price shed 3 cents, to end at $7.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 5 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: clico, First Citizens, flavorite, Grace Kennedy, JMMB, Neal & Massy, Praetorian Property Fund, Republic Bank, Sagicor, Scotia, Trading Activity, Trinidad Cement, Unilever, West Indian Tobacco

Economy grew in 2013 but barely

April 1, 2014 by IC Insider.com

Jamaican economy was able to eke out 0.2 per cent growth in 2013 compared to the previous year, preliminary estimate from the Statistical Institute of Jamaica (STATIN) shows. The moderate growth rate, which could be revised later, emanated from growth of 1.8 per cent in the fourth quarter of 2013 compared to the similar quarter of 2012. The fourth quarter growth rate is the strongest for some time but it represents recovery from a period in 2012 when economic activity was negatively affected by Hurricane Sandy.

The economy recorded a growth of 0.5 per cent in the third quarter of 2013 compared to the similar quarter of 2012. Earlier in the year, Statin reported that the Jamaican economy declined by 0.1 per cent in the second quarter and declined by 1.3 per cent in the first quarter of 2013. The country has not enjoyed much growth from 1999 has is shown by the table below.

Growth in the 2013 final quarter resulted from increased output levels in both the Goods Producing industries and Services industries, Statin said.

Statin stated that “the performance in the Goods Producing industries reflects increased activities in Agriculture, Forestry & Fishing (13.1 per cent), benefited from favourable weather conditions, Mining & Quarrying (12.1 per cent) resulting from increased capacity utilization at the bauxite and alumina plants and Construction (2.6 percent) due to an increase in residential housing projects and continued expansion in hotels. Manufacture industry declined by 0.8 per cent”.

All industries within the Services industries recorded increased levels of output with the exception of the Producers of Government Services which declined by 0.2 per cent and the Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment, which remained relatively unchanged for the period. Higher output levels were recorded for: Hotels & Restaurants (5.5 per cent), Transport, Storage & Communication and Other Services (1.1 per cent), Electricity & Water Supply (1.0 per cent), Finance & Insurance Services (0.4 per cent), Real Estate, Renting & Business Activities (0.3 per cent).

Filed Under: Breaking News, Economy Tagged With: Economy, GOJ, Statin

JMMB inside sales

April 1, 2014 by IC Insider.com

Persons close to Jamaica Money Market Brokers continue to sell shares in the company even as the CEO Keith Duncan was reported to be telling investors in Trinidad: “If ever there was a time to get excited about JMMB Group’s performance prospects, that time is now!”

The company advised that a related party sold 384,132 JMMB shares on March 26, 2014. The shares were traded on the Jamaica Stock Exchange at $7.50 each but the stock was selling in Trinidad at the same time at the equivalent of $9.50, exactly 26.9 percent difference.

Filed Under: Company News Tagged With: Insider Trades, JMMB

Margaritaville IPO oversubscribed

April 1, 2014 by IC Insider.com

Margaritaville (Turks) Initial Public Offer (IPO) closed on Friday, March 28 after just exceeding the amount offered for sale.

The IPO opened on Monday, March 3, 2014 with an offer of 21,156,555 shares, at US$0.10 per share. The offer closed with a total of 214 applications for 21,178,100 units and the total amount raised was US$2,117,810. The amount fell short of an approximate US3 million the company was hoping to get which would have meant the sale of additional existing shares.

Chorvelle Johnson, President & CEO of PROVEN Wealth, brokers for the issue, stated that “Margaritaville (Turks) Ltd will be the first major listing on the Jamaica Stock Exchange (JSE) this year and will also be the second United States Dollar listing following PROVEN Investments.” However, varies from what was stated in the prospectus that it would be listed on the Main Market of the JSE.

Margaritaville (Turks) is a part of the Margaritaville Caribbean Group of Companies and a wholly owned subsidiary of Margaritaville Caribbean prior to the Invitation. The Group operates the Margaritaville chain of restaurants in various Caribbean destinations, inclusive of the flagship restaurant launched on the “Hip Strip” in the centre of Montego Bay, Jamaica.

In 2006, the company began operations in Turks and Caicos at the Grand Turk Cruise Centre which is a minutes walk from the cruise ship pier. On the property, there is a mixture of thatched roof restaurants and a swim-up bar that serves Jimmy Buffet Margaritaville’s signature flavours of Margaritas. The Company’s food service operation is complemented by the sale of beverages inclusive of the Margaritaville USA’s proprietary beer, Landshark, and branded apparel, bar ware, and other items. The establishment is well supported and it is expected that the number of visitors will increase from 750,000 recorded for the calendar year 2013 to 1 million persons in calendar year 2014.

Margaritaville (Turks) Ltd is in the process of making an application to be listed on the Jamaica Stock Exchange.

Related post | Margaritaville, down the road with risk

Filed Under: Company News, General Business News, Initial Public Offers, Stock Market Tagged With: Jamaican Stock, JSE Company, Margaritaville