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JSE: Declining stocks clobber advancers

August 30, 2013 by IC Insider.com

Friday, 30th August 2013 | The stock market main indices climbed in today’s trading but that disguises the fact that at the close the number of advancing stocks were only 3 compared to those that fell as trading took place in 26 securities of which 3 advanced, 10 declined and 13 traded firm with 2,414,128 shares trading valued at $12,894,753..

The Jamaica stock market’s main indices gained ground for the second day on Friday’s as the all Jamaica index gained 567.08 to end at 85321.12 while the main market index gained 322.30 to 85,039.91. The junior market index gained 13.90 to close at 792.42.

Stocks traded with good volumes include Carreras 27,717 valued at $1.3 million to close at $46 off $1.50; Caribbean Cement with 56,380 units to close at $2.00. down 30 cents. as the stock retreats from its rapid recent accent to $3; Desnoes & Geddes 200,000 units which was firm at $4.50 for a value of $900,000; Grace Kennedy 50,862 units at $56 valued at $2.855 million as the price fell by $1; Jamaica Broilers 143,172 units up 9 cents to $5.14; Jamaica Money Market Brokers 39,128 units firm at $8; Jamaica Stock Exchange ordinary shares traded 929,650 units and lost 10 cents to close at $2.90 for a value of $2.746 million; National Commercial Bank 52,087 units valued at $1 million as the price closed at $18.60 down 40 cents; Scotia Group Jamaica 44,689 units valued at $957,000 at $21.50 up 15 cents; JMMB 8.5% preference stock 324,605 units firm at $3 valued at $973,000.

Junior Market | Nine junior market stocks traded as Caribbean Cream traded 23,000 units to close at $1.05 off 1 cents; Caribbean Producers Jamaica 34,627 units at $2.03; Consolidated Bakeries 16,730 units at $1.45 as loss of 5 cents; Honey Bun 12,421 units firm at $3.50; Lasco Distributors 318,344 units, closed at $1.45 down 1 cents and Lasco Manufacturing 20,453 units at $1.55. Blue Power lost 77 cents to close at $9.20 with a mere 778 units.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 5 stocks were higher with 2 stocks having offers lower than their last selling price.

TTSE: TCL is hot

August 30, 2013 by IC Insider.com

Friday, 30th August 2013 | This week’s trading on the T&T stock exchange was almost all about Trinidad Cement as the stock shot up to a new 52 weeks high on Friday at $2.94 at the close, gaining 38 cents on the day as 472,131 units traded valued at $1,387,609. The stock gained 89 cents or 42 percent during the week. The price advance may cool for a few days as the stock closed with the offer 46,481 units at the last selling price and the bid was for only 528 units at $2.75. The rapid movement may keep buyers from chasing the price for awhile until demand come closer to supply. Next week will tell. The fundamentals nevertheless support further gains.

Jamaica Money Market Brokers traded 700,000 shares firm at 50 cents for a value of $350,000; National Flour Mills contributed 148,444 shares with a value of $111,333; while Sagicor Financial Corporation added 23,200 shares valued at $158,920 as the stock price gained 30 cents to end at $6.85. Point Lisa traded 6,946 units gained 9 cents to close at $3.75; Grace Kennedy traded 4,000 units firm at $3.30; Clico Investment Fund had 7,500 shares changing hands valued at $161,283 and closed firm at $21.50. At the close the bid for Clico was at $21.60.

Today’s volume was 1,362,951 shares valued at $2,225,638 as 9 securities traded of which 3 advanced, none declined and 6 traded firm.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 4 stocks were higher with 3 stocks having offers lower than their last selling price.

Image courtesy of Photokanok/FreeDigitalPhotos.net

Filed Under: Stock Market, TTSE Market Tagged With: Daily Trading, Trading Activity, TTSE

Q3 profits up at Scotia Investments

August 30, 2013 by IC Insider.com

Scotia Investments Jamaica’s profit for the quarter to July this year was $562 million or 51 percent above the $372 million earned in the previous quarter and 18 percent above the $477 million made in the 2012 quarter. For the nine months ended July 31, 2013, net profit was $1.42 billion, down $90 million or 6 percent when compared to the same period last year. Earnings per share for July quarter was $1.33 compared to $1.13 in 2012. For the nine months earnings per share was $3.36 compared to $3.57 for the same period last year.

Revenues | Operating Income comprising net interest revenue and other income for the quarter amounted $1.178 billion, up $228 million or 25 percent from the $949 million recorded for the previous quarter. Operating Income, came out at $3.236 billion for the nine months period, up $142 million or 5 percent above the $3.094 billion for the same period 2012.

The company has recovered from the negative impact of the NDX on net interest income as net interest income for the quarter was $692 million, $66 million or 10 percent above the results of the previous quarter. Net interest income after impairment losses for the nine months period was $2.081 billion, down $33 million or 2 percent when compared to the same period the year before.

Non-Interest Income | Non-interest income, inclusive of fees, securities trading gains and net foreign exchange trading income was $1.155 billion for the period, up $175 million or 18 percent compared to the same period last year and $485 million for the quarter, up $162 million or 50 percent over the $324 million recorded last quarter. The major factors contributed to the improvement is net fees and commission as there was a $69 million jump in this category in the quarter and $183 million year to date, net foreign exchange gain dropped sharply in the quarter from the prior quarter to $30 million, which was slightly lower than the $33 million generated in 2012. Year-to-date, the increase is $105 million with $100 million of than being generated in the April quarter.

Gains from securities trading climbed to $197 million in the July quarter compared to $78 million in July 2012 and year to July income amounted to $273 million versus $293 million. The difference reflect the impact of losses sustained when the company engaged in the debt swap with the Government of Jamaica resulting in a loss on investments due to receiving a lower value for bonds held.

Expenses| Surprisingly, they were able to hold expenses below the amount in the prior quarter to $366 million, down from $418 million in the April quarter but up on the $327 million for 2012. For the nine months expenses climbed sharply to $1.2 billion versus $984 million in 2012.

Assets | Total assets of $72.6 billion remained relatively flat year over year. “There was a $1 billion or 1.3 percent reduction relative to the year ended October 31, 2012, which is consistent with our strategic initiative to focus on growing our off-balance sheet portfolios,” the company stated. Meanwhile, Shareholder’s Equity amounted $11 billion.

Off balance sheet | Assets under management, including the Company’s custody book, were $115.3 billion as at the end of the quarter, up $14.2 billion or 14 percent above the same period last year and up $5.8 billion or 5.3 percent over the previous quarter. The growth was driven by increased net asset values in the managed funds.

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

TCL up 209% in two months

August 30, 2013 by IC Insider.com

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Update to our post of Aug 27th, 2013 | In early July we told our readers “Cement was good for your pocket“. While we don’t know many took our advice seriously, we do know is that there has been quite a bit of buying of this Trinidad based company’s shares driving the price from 94 cents up to $2.94 at the close of trading on Friday. Not bad for a two months investment!

The good news is that our estimates suggest that it not over with prospects for more gains to come as the stock rallies to better align its value with the overall market.

Original post dated 27th August 2013 | We called it! TCL stock gains 115%

You read right! Trinidad Cement Limited stock price has gained 115% since IC Insider made to call out to buy at the beginning of July when the price was at 95 cents. It has since risen to $2.05 in almost 2 months. Not a bad pay day at all!

It’s not too late for you to make money on this fast moving stock! From all indications the stock still has lots of room to grow with the price on Monday, August 26 at $2.06 and the bid at $2.13 on the Trinidad Stock Exchange.

The main objective of IC Insider is to provide readers with opportunities not only make money, but to earn above average returns and avoid losses. To view our latest Buy Rated stocks, click here.

Filed Under: Company News, Stock Market, TTSE Market Tagged With: TCL, Trading Activity, TTSE

Consolidated Bakeries hiked profit

August 30, 2013 by IC Insider.com

Consolidated Bakeries is reporting strong growth in profit in the second quarter, a continuation of increased profits experienced in the first quarter of the year. The strong growth is as a result of robust revenue growth in both quarters of the year. Revenue for the six months increased by 30.69 percent to reach $329 million and for the quarter by 40.46 percent over the same periods last year to reach $157 million. “The increases reflect real growth in volumes across our key items and primarily a result of activities in distribution and market programmes,” management stated.

Profit after corporation taxes which increased 172 percent in the first quarter more than tripled in the second quarter moving from $4 million in 2012 to $12 million for the first six months and net profit went up by 191 percent to $24 million. Helping with the improvement was a 55 percent gross profit margin, a big improvement over the 42 percent in the first quarter last year and year to date margin is 56.5 percent versus 52 percent in 2012. Operating expenses climbed sharply by 53 percent in the quarter and 31 percent for the six months period.

The improvement in revenues and profit is impressive. The concern that exists is that the results for the six months to June last year showed impressive numbers but there were losses in the last half, thus reducing what appeared to be acceptable results. The second half of the year tends to be a bit weaker for sales and profits for bakeries. As such, the impressive profits seen in the six months may not match the results in the second half.

Working capital was in a healthy state with current assets of $169 million compared to $46 million in current liabilities. Inventories are low at $16 million and receivables at $57 million seems to be well under control. Shareholders’ equity is $495 million and debt financing of only $23 million.

Depending on how the second half pans out, the stock could show some appreciation in the next two quarters. Earnings per share is only 11 cents to June, so at best, the full year earnings will be around 20 cents. At this rate, it won’t cause investors to run and grab the stocks, even at the current trading price of $1.35.

Related Posts | Consolidated Bakeries’ Q1 Profits Up

Bread Loaf Image courtesy of dplanet/FreeDigitalPhotos.net

Filed Under: Company News, Company Results Tagged With: Consolidated Bakeries, JSE Company

Q2 profit up strongly at Sagicor

August 30, 2013 by IC Insider.com

The Sagicor Jamaica Group made big strides in the second quarter with a 39 percent increase in the net profits of $1.56 billion versus reported profits for 2012 of $1.12 billion. It also represents a major recovery over the ‘NDXed’ first quarter results of only $620 million. Earnings per share came out at 42 cents, annualized $1.68.

“The improved results in second quarter reflect continued good new business and a higher pay-out of insurance benefits. We also recorded a “one-time” charge of $120 million for an adverse Privy Council judgment relating to a Cayman Islands legal claim. In first quarter we had the impact of the National Debt Exchange and Private Debt Exchange (NDX programme) which resulted in “one-time” realized capital losses of $1.2 billion,” management said in a release accompanying the results. Profit of $2.18 billion was realised for the six months to June against $2.60 billion in 2012 attributable to stockholders. Earnings per stock amounts to 58 cents, while in 2012 it amounted to 69 cents for the six months. Total Comprehensive Income including, net profit for the period and movements in reserves held in Equity, was $1.33 billion compared to $3 billion for 2012.

“Unrealized fair value losses on available for-sale securities exceeded unrealized foreign exchange gains. The unrealized fair value losses emerged from lower bond prices as interest rates rose, especially USA corporate bonds. Following the NDX programme we now carry a large portion of GOJ securities with lower market values, lower coupon rates and extended tenors” the report to shareholders stated.

Revenues | Revenue of $15.24 billion was above prior year by 1 percent. With the effect of the NDX programme excluded, Revenue would have been up about 9 percent. Net Premium Income, in aggregate, was 4 percent more than that for 2012. The Individual lines of business earned premiums were up by 9 percent while Group Insurance and Annuity premiums were level with prior year. There was good new business across all lines. Investment income, before interest expense and capital gains was higher than in the prior year by 1 percent, reflecting lower coupons from March on some GOJ bonds management indicated to shareholders.

Administrative expenses of $3.73 billion were 10 percent more than in 2012 but the increase in the June quarter is 12.8 percent. The increase would have be only 6 percent if the $120 million legal claim is excluded. The increased expenses reflect mainly higher compensation costs, the $120 million legal claim paid in June 2013 and higher loan loss provisions in the Banking Group.

Stockholders’ Equity as at June 2013 was $33.21 billion, compared to $32.64 billion as at December 2012. Significant unrealized fair value losses were also recorded in June to Investments Reserves in Comprehensive Income, as bond prices fell with rising interest rates, especially USA corporate bonds. Total assets climbed to $185 billion from $175 in December last year as the group continues to grow moderately.

Insider call | At an annualised earnings of $1.68 per share generated in the latest quarter and with a stock price of just $8.20, the stock is undervalued and is accorded a Buy Rated rating.

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

Dolphin continues to grow

August 30, 2013 by IC Insider.com

Dolphin Cove reported improved profit for the six months to June of $221 million compared to $195 million in 2012, an increase of 13 percent and for the three months to June, $103 million versus $84 million, a 22.6 percent gain. Total revenue for the six months to June was $787 million versus $706 million in June 2012, an 11 percent increase and $393 million for the June quarter compared to the previous year’s $344 million for a 14 percent change.

Gross profit rose 11 percent year to date to $696 million and was up 13 percent in the recent quarter. Administrative cost rose faster than revenues 20.6 percent for the six months but 25 percent in the June quarter. Interest cost declined from $11 million in the six months last year to just $1 million for 2013.

Both revenues and profits would have been negatively affected by the slowdown in visitor arrivals this year and would have slowed growth somewhat.

The consolidated financial position of the Group is strong, showing a healthy net current assets over current liabilities of $252 million position with cash funds and investments of $205 million, but the position is boosted by increased borrowing for capital spend for fixed assets and new dolphins with $174 million spent on animals in the last twelve months in preparation for expansion. This is in keeping with the company’s plan to open and operate additional parks in other Caribbean countries where they acquired real estate and additional dolphins for the attractions.

Notwithstanding the investment in fixed assets, the company paid dividends (20 cents per share) during the six month period.

The stock is priced at $9 each and carries a PE of more than 10 times this year’s estimated earnings, which should be around 80 cents per share. Based on the value, the stock would be Hold Rated.

Related posts | Growth slows for Dolphin | Dividends to come

Image courtesy of Bill Longshaw/FreeDigitalPhotos.net

Filed Under: Company News, Company Results Tagged With: Dolphin Cove, JSE Company

FX: Rates mostly stable

August 29, 2013 by IC Insider.com

Thursday, 29 August 2013 | Foreign exchange rates remained fairly stable on Thursday but there were noticeable swings in the Pound Sterling spot rates which fell.

The US dollar was purchased as high as $102.75 on Thursday the same as it was on Wednesday even as the average buying rate increased by 9 cents to $101.47 as US$27.35 million was purchased by dealers. Unlike Wednesday when there was an increase of 15 cents paid for the lowest rate of $84.04, the rate for selling at the high and low remained unchanged closing at $107.70 for the highest and $99.80 for the lowest. Selling took place for US$24.36 million at $102.10 at 10 cents more.

The buying rate for the Canadian dollar by 96c to $95.14 as C$641,000 was purchased and the average selling rate was down 18 cents to $97.47 for C$464,252. The Pound sterling buying rate dropped by $2.67 to $155.68 as £873,540 was purchased and £537,543 was sold at an average rate of $158.91, a fall of $1.17.

Overall the equivalents of US$29.4 million was purchased on Thursday an increase over Wednesday trade and selling amounted to $26.2 million a slight reduction form the day before.

The highest buying rate for the Canadian dollar was down by $1.10 to $97.70 and the lowest was 4 cents greater to end at $78.48; the highest selling rate was $1.37 higher at $101.17 and the lowest was off 15 cents to $94.70. The Pound Sterling highest buying rate dropped by $1.85 to $159.15 and the lowest buying rate amounted to $128.65 the same as the prior day. Dealers sold the Pound as high as $165.85, a sharp $4.85 increase yet only increased the lowest rate by a $1 to $155.\

Filed Under: FX Market, Stock Market Tagged With: Daily Trading, FX Market, Trading Activity

JSE: Carreras jumps $2.50

August 29, 2013 by IC Insider.com

Thursday, 29th August 2013 | Carreras shares recovered from Wednesday’s slide by putting on $2.50, which is 50 cents more than it lost, as the stock traded between $46.89 and $48. The gain in Carreras helped the Jamaica Stock market’s main indices to gain ground as the All Jamaica index gained 417.80 to end up at 84,754.04, while the Main Market Index gained 237.45 to 84,717.61. The Junior Market Index bucked the positive trend by falling 19.56 to close at 778.52. In today’s trading 31 securities traded of which 7 advanced, 9 declined and 16 traded firm as 4,856,227 shares traded with a value of $30,498,966.

Stocks that traded with good volumes include Berger Paints 450,000 units valued at $1,012,600 trading at $2.25; Carreras 51,561 valued at $2,429,258 to close at $47.50 a gain of $2.50; Caribbean Cement chipped in with 115,700 to close at $2.30 down 44 cents as trade accounted for $265,820; Desnoes & Geddes 521,832 units firm at $4.50 for a value of $2,348,244; Hardware & Lumber 105,000 units at $4.50 valued at $474,400 as the price fell by 10 cents; Mayberry Investments 90,739 units firm at $2.60; National Commercial Bank 342,222 units valued at $6,497,121 closing at $19 up 39 cents; Sagicor Life Jamaica 44,174 units as the price closed at $8.20 up 3 cents; Scotia Group Jamaica 181,319 units valued at $3,871,161 at $21.35 up 28 cents; Proven Investments 8% preference stock 1,733,460 units firm at $5.09 valued at $8,823,311.

Jamaica Stock Exchange ordinary shares traded 16,715 units lost 10 cents to close at $3.

Junior Market | The number of stocks in junior market advancing was less than those declining. Access Financial Services traded 281,700 to close at $8.20 off 5 cents; Caribbean Producers Jamaica 128,413 units at $2.03; Consolidated Bakeries 37,500 units at $1.45 as loss of 5 cents; General Accident Insurance 157,822 units at $1.70 down 20 cents; KLE Group 22,682 units to closed firm at $1.61; Lasco Distributors 22,000 units, closed at $1.46 down 8 cents; Lasco Financial Services 129,482 to close at $1.40 down 2 cents and Lasco Manufacturing 255,030 at 1.60 up a cent.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer indicator shows that bids for 8 stocks were higher with 3 stocks having offers lower than their last selling price.

After the Bell | Scotia Group Jamaica reported net income of $3.06 billion for the third quarter ended July 31, 2013. This is $127 million above the previous quarter ended April 30, 2013 and $468 million above the quarter ended July 31, 2012. For the nine months ended July 31, 2013, net income was $8.71 billion compared to $7.95 billion for the same period last year. Earnings per share (EPS) for the nine months was $2.70 compared to $2.45 for the same period last year. Today the Board of Directors approved a third interim dividend of 40 cents per stock unit payable on October 9, 2013, to stockholders on record at September 18, 2013.

Scotia Investments Jamaica reported its unaudited financial results for the nine months ended July 31, 2013. Net income for the quarter was $562 million or 51 percent above the $372 million earned in the previous quarter and 18 percent above the $477 million made in the 2012 quarter. For the nine months ended July 31, 2013, net income was $1.421 billion, down $90 million or 6 percent when compared to the same period last year. Earnings per share (EPS) for the nine months was $3.36 compared to $3.57 for the same period last year. The Return on Average Equity (ROE) stood at 16.10 percent, down from 18.69 percent reported for the last year. The Board of Directors has approved an interim dividend of 45 cents per stock unit, payable on October 9, 2013, to stockholders on record as at September 18, 2013.

Desnoes & Geddes reported flat profits of $1.2 billion for the twelve months to June this year as redundancy payment of $150 million and an adjustment of $88 million relating to 2012 taxation bit into net profits. As such, the June quarter results came in at $161 million compared to $472 million in the same quarter last year.

First Caribbean International Bank continues to be plagued by nonperforming loans as the banking group reported another disappointing quarterly profit of US$9 million versus US$18 million last year, while the nine months results came in at US$43 million compared to US$47 million in 2012.

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

Scotia: No change in dividends

August 29, 2013 by IC Insider.com

The two Scotia companies announced dividend payments today with both payments scheduled for October.

Scotia Group Jamaica approved a third interim dividend of 40 cents per stock unit payable on October 9, 2013, to stockholders on record at September 18, 2013.

Scotia Investments approved an interim dividend of 45 cents per stock unit, payable on October 9, 2013, to stockholders on record as at September 18, 2013. The dividends to be paid represent a continuation of their dividend policy and are the same amounts that they have been paying against this year’s profits since the start of this year. Both companies raised the pay out in January this year from 37 cents for Scotia Group and from 40 cents for Scotia Investments.

Dividend announcement from Scotia published 28th August, 2013 | The Board of Directors of Scotia Group Jamaica and Scotia Investments will consider a dividend payment at a meeting to be held on August 29, 2013. It is expected that the two entities will retain the payments they have been making for the year to date of 40 cent per share in the case of Scotia Group and 45 cents in the case of Scotia Investments.

Both companies are expected to release nine months results to the end of July on Thursday, August 29 along with teh announcement of the dividends. Investors will be watching Scotia Group numbers to get an indication as to the timing for investment purposes and possibly the state of the financial market.

For Scotia Investments, the results will determine if investors in Trinidad will continue their strong interest in the stock. A return to reasonable growth in profits could see increased interest as the stocks dividend yield will be very attractive for investors in the Twin Islands.

In the April quarter in spite of a $397 million hit from the debt swap of Government of Jamaica instruments, Scotia Group was able to report 92 cents profit after tax, with the July quarter likely to recover from the negative effect from the debt swap, which resulted in a lower rate on the investment instruments. The baking group could post higher earnings in the latest quarter, but a lot will depend on how much provision have been made for non-performing loans and how much has been made from exchange rate movement of the Jamaican dollar.

Filed Under: Company News, Dividends Tagged With: Dividends, JSE Company, Scotia