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TTSE: Arbitrage opportunity – Scotia Investments

July 4, 2013 by IC Insider.com

Wednesday, 3rd July 2013 | Scotia Investments traded 131,806 shares for $238,216 on the Trinidad Stock Exchange today, as the stock traded up 3 cents to close at $1.81 or Jamaican value of $28.60 compared to the stock price of $26.25 on the Jamaica Stock Exchange creating an arbitrage situation.

Elsewhere, trading picked up as 17 stocks traded, the most for some time. The end result is that 5 stocks advanced, 2 declined and 10 traded firm.

On the Mutual Fund Market, 1,097 shares changed hands for a value of $5,837. Praetorian Property Mutual Fund was the most active security, with a volume of 990 shares valued at $3,376.

Trading in the main market accounted for 587,979 units valued at $1,725,269 as Trinidad Cement had a volume of 258,135 shares changing hands for a value of $245,228. Sagicor Financial Corporation 93,949 shares with a value of $588,119, National Enterprises had 11,500 shares traded for a value of $182,980. Angostura Holdings chipped in with 4,070 shares with a value of $36,630.

National Commercial Bank Jamaica added 58,152 shares valued at $69,914.

One Caribbean Media Limited closed at a 52 weeks high of $17.40, increasing by 10 cents.

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

West Indian Tobacco Company, which has been on a run from April, is one of the stocks that had a bid above the last selling price.

OCM profits rise strongly

July 3, 2013 by IC Insider.com

Acquisitions and revenues flows from a state election in Tobago and elections in Barbados helped to boost One Caribbean Media (OCM) revenues and profit for the March quarter this year by 40.4 percent.

OCM better results came as profits for the 3 months climbed to TT$18.1 million up from TT$12.8 million in 2012, emanating from revenues which were up by 24 percent to TT$124 million from TT$100 in the prior year. Management, in a statement accompanying the results, stated that revenues were boosted by the state election in Tobago in January and general elections in Barbados and from acquisition of four radio stations that was completed in the third quarter of 2012. They however, caution that the second quarter will be tougher than the first but expect growth to continue. In 2011 profits after tax amounted to $12.3 million pretty similar to that earned in 2012. Second quarter earnings were $18.4 million last year and moved to $22 million in the September quarter as revenues rose nearly 18 percent in that quarter. Revenues for the six months were down by $5 million in 2012 versus 2011. Hence, it would appear that the radio station acquisition during the quarter impacted revenues and profit positively.

Results comparison | The recent results is lower than the amount earned in the December quarter of $21.4 million from revenues of $145.7 million as well as the amount earned in September 2012 of $21.8 million from revenues of $132.6 million. For most media houses the first quarter of the calendar year is not usually the best in either revenues or profit as advertisers take a more moderate position in the first quarter coming out of the high expenditure of consumers and expanded advertising during the Christmas period.

Profit 2012 | For the 12 months to December last year, earnings came to $74.75 million slightly up on the $69.45 million generated in 2011 from revenues of $495 million versus $451 million for non-interest income, an increase of 9.7 percent. However, gross profit rose by 14.6 percent to $178 million from $155 million in 2011, showing greater level of efficiency in generating income. Gross profit margin was 36 percent up from 34.4 percent in 2011.

Financial health | The company is in a healthy financial position, generating annual cash flows of more than $70 million per annum, some of which it is using to acquire other income generating assets. Cash inflows could rise in the current year as profit seems poised to climb above that of 2012. It boasts equity of $620 million with current asset ratio of more than 3 to 1 with cash funds of $188 million at the end of March. Funds are clearly being built up for further acquisitions.

The company announced that on March 26, 2013 its subsidiary, The Nation Corporation of Barbados, acquired a 51% interest in a small, innovative Barbadian renewable energy company with effect from January 1, 2013. This acquisition represents less that 0.4% percent of OCM’s net book value. It is unclear what impact, if any, this acquisition will have on the company’s results in the short term.

Forecast | IC Insider is forecasting profits of $95 million or $1.41 per share for the current year giving the stock a PE of 12.2 times earnings. Based on the Trinidad stock market PE ratio and Guardian which is at PE of 22, the stock is rated a buy for medium term appreciation as the stock price could double based on these comparisons.

Filed Under: Company News, Company Results Tagged With: One Caribbean Media, TTSE

FX: Rates holding, more or less

July 2, 2013 by IC Insider.com

Tuesday, 2nd July 2013 | The foreign exchange market saw almost equal buying and selling with the selling rate for the US dollar inching up 10 cents for the day to close at $101.44 while the buying rate fell by a cent. Trading in US dollar currency brought in $23.2 million with selling amounting to $22.95 million.

Canadian dollars buying amounted to $805,000 with $760,000 being sold and the buying rate moving up by 32 cents to close at $94.44 and the selling rate ending the day at $96.80, down by just 4 cents. The Pound sterling edged down 7 cents on the buying of £1.26 million and selling took place at an average of £155, up 93 cents on the day,

Highest lowest | There was quite a bit of movement in the highest and lowest traded rates with the US dollar moving up 65 cents for the highest buying rate and 42 cents on the lowest selling rate. The highest buying remained unchanged from Monday but the lowest selling moved up by 41 cents. The Canadian dollar moved up 80 cents for the highest buying rate and 25 cent on the lowest selling rate, while the highest buying slipped 38 cents from Monday and the lowest selling moved up by just 10 cents. The Pound moved down 30 cents for the highest buying rate and up 67 cents on the lowest selling rate while the highest buying rate gained 43 cents from Monday and the lowest selling moved up by 90 cents.

Volume | Total US dollar equivalent bought was $26.6 million with $25.96 being sold.

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

JSE: Junior market hits record high

July 2, 2013 by IC Insider.com

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Tuesday, 2nd July 2013 | The junior market that has been on a bull run from April closed today at a new all-time high of 812.02 as the index surpassed the previous all-time high of 811 points that was established on November 9, 2011. This market has gained 25 percent this year rising from 647.78 points as the three Lasco companies posted almost daily new highs since they announced a 10 for 1 stock split and released full year results at the start of June.

The main market broke its losing streak with a rise in the main indices with the all Jamaican Index gaining 951.70 points to close at 88,893.96 ad the Jamaica Stock Exchange index closing at 87,337.26, up 540.59 on the day.

Although all of the indices with stocks trading rose today, the advance decline ratio was just able to remain positive as 9 stocks gained to 6 that declined as trading levels declined sharply from Monday. Trading took place with 2.43 million shares as investors expended only $15.4 million, well down on Monday’s trading. Only one stock, Lasco Distributors, closed with the last traded price reaching an all-time record at the close.

Main Market | Carreras shares hit $56.04 by gaining $3.04 as just 4,430 units valued at $240,815 traded, Grace closed up 35 cents to end the day at $60.35, a mere 1,240 units shifted hands, Sagicor Life traded 563,672 units valued at $5 million as the price moved up 63 cents to close at $9. Scotia Group traded 147,000 units, valued at $3.1 million and gained one cent in the process. Scotia Investment lost $1.40 in closing at $26.10 with 10,100 shares.

Like Monday, the supply of Cable & Wireless on offer at 15 cents fell a bit more to 29.4 million shares with 557,000 units trading at 14 cents. The bid to buy 4.79 million RJR shares still stands at $1.23 with no supply at hand.

Junior market | Seven junior market stocks traded with Lasco Financial at $12.10, down 60 cents, with 170,000 shares trading between $12.10 and $13. Lasco Manufacturing traded 5,000 shares with the price closing at $16. Lasco Distributors, closed at $18 but only 3,200 units traded between $16.50 and $18. General Accident traded 399,554 shares and the price closed at $2 and Caribbean Producers closed at $2.02 in trading 240,606 units. Blue Power closed at $10.40, down 60 cents, with 37,283 units but there were offers amounting to 332,000 units at $10.40 to $10.50 at the end of trading.

The junior market is in a golden cross as the 50-day and 120-day moving averages trend-lines have crossed over the 200-day moving average. This is a strong market signal for a major move in the months ahead.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 5 stocks were higher with 3 stocks having offers lower than their last selling price.

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

TTSE: Witco drops back by $3

July 2, 2013 by IC Insider.com

Tuesday, 2nd July 2013 | The West Indian Tobacco Company stock that reached a new all-time high yesterday after making several other highs in recent past months, lost the $3 it gained in yesterday’s trading with only 210 units sold.

Market activity resulted in 13 securities trading of which 2 advanced, 2 declined and 9 traded firm with trading in the main market accounting for 210,003 units valued at only $286,299. JMMB dominated the trading volume with 121,356 shares for a value of $60,678. The share price of JMMB is relatively small compared to most of the listed companies shares, hence the value traded was far less than Monday’s $1,004,310 while Clico Investment Fund, traded just213 shares valued at $4,899 in the mutual fund segment. Trinidad Cement had a volume of 76,059 shares changing hands for a value of $72,256. Sagicor Financial Corporation 5,825 shares with a value of $36,686, National Enterprises had 11,500 shares traded for a value of $182,980. Angostura Holdings chipped in with 4,070 shares with a value of $36,630.

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

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

Non-traditional exports climbs 18%

July 2, 2013 by IC Insider.com

Exports of non-traditional commodities jumped 18 percent over the 2012 with a value of US$222 million during January to March 2013 period helping to propel it moved past traditional exports. The change accounted for a larger share of domestic exports, moving it from 44.4 per cent in the 2012 review period to 51 per cent in the current 2013 review period as traditional exports declined during the quarter.

Total traditional exports amounted to US$213 million in the 2013 review period, down from US$235 million in the previous 2012 period for a decrease of US$22 million or 9.3 per cent. The improvement in exports was insufficient to cover the increase in imports, leaving a bigger trade gap than in the similar quarter in 2012. Total exports for the period amounted to US$451 million up from US$435 million in the 2012 period, an increase of US$16 million or 3.7 per cent.

Imports were valued at US$1.715 billion during the quarter, compared to the US$1.629 billion during January to March period last year, an increase of US$86 million or 5.3 percent. At the end of the quarter, the total merchandise trade deficit widened to US$1,264 million compared to US$1,195 million in the previous year.

Import categories | During the January to March 2013 period, there was a general upward trend in the value of imports for all but three commodity groups, “Mineral Fuels, etcetera”, “Manufactured Goods” and “Machinery and Transport Equipment”. The commodity group “Mineral Fuels, etcetera” had a value of US$566 million, a US$141 million or 19.9 per cent drop from US$706 million in the similar period in 2012.

Higher imports of ’organic chemicals’ mainly ethanol, ‘medicinal and pharmaceutical products’ resulted in the value of imports rising by US$188 million over the January to March 2012 period.

Imports of “Food” was valued at US$279 million, up from the US$239 million reported for the similar 2012 period due to increases in ‘cereals and cereal preparations’, ‘feeding stuff for animals’, ‘miscellaneous edible products and preparations’ and ‘vegetables and fruits’.

Total Exports | Earnings from total exports during the January to March 2013 period amounted to US$451.0 million, of which domestic exports was valued at US$434.6 million and re-exports US$16.4 million.

Traditional Domestic Exports | During the March quarter of 2013, the contribution of major traditional domestic exports to the value of domestic exports decreased from 55.6 per cent in the first quarter of 2012 to 49.0 per cent.

During the month of March 2013 the United States of America (USA) remained Jamaica’s main trading partner with US$226 million or 37 per cent of imports originating from that country. This brought the year-to-date imports from the USA to US$639 million. Approximately US$66.3 million or 50.9 per cent of total exports was sent to the USA in March 2013 bringing the year-to-date exports to US$248 million. At the end of the first quarter of 2013, Jamaica incurred a trade balance with the USA of S$391 million down from US$403 million in the first quarter of 2012.

Filed Under: Economy Tagged With: Economy, GOJ

Stocks to watch: week of 1st July, 2013

July 1, 2013 by IC Insider.com

Keep an eye on these stocks for movement | There aren’t many changes to this week’s posting compared to last weeks’. We added two new ones in the junior market as the Lasco companies gain interest from the approved stock split of 10 for 1 and one for the TTSE.

Filed Under: Company News, JSE Main Market, Stock Market, Stocks to watch, TTSE Market Tagged With: JSE Company, Trading Activity, TTSE

FX: More buying than selling again

July 1, 2013 by IC Insider.com

Monday, 1st July 2013 | As was the case on Friday, authorised dealers bought much more foreign exchange than they sold. Unlike Friday, when the excess buying over sales is an unusual occurrence, today’s trades are in line with the long term market trend where Mondays are usually the highest day for inflows as week-end flows are sold into the financial system.

The total amount of purchases on Monday amounted to US$41.6 million, more than $9 million over Friday’s purchases of US$32.2 million and the amount sold amounted to US$33 million, $8.6 million more than Friday’s US$24.5 million. While the actual selling of US currency was $7.4 million less than purchases of $38.26 million.

The selling rate for the US dollar inched down by just 4 cents and the buying rate went up by 7 cents. There was also more buying of Pound Sterling and the Canadian dollars than the amounts sold to end users.

The average selling rate for the Canadian dollar gained 14 cents while the buying rate fell $1.43. The rate for buying the Pound, which fell $1.18 on Friday, declined further by $1.21 to close at $151.54 and was down only 40 cents on the selling rate which ended at $154.07.

There were no changes for the minimum buying rates for any of the currencies, while the highest buying rates moved up by 10 cents for the Canadian dollar and also went up for the selling rates with the highest climbing 70 cents and the lowest by 20 cents. The highest buying rate for the US dollar moved down by 15 cents as the highest selling rate moved up 53 cents with no change for the lowest selling rate. The Pound declined for the highest buying rate which fell by $1.50 and the highest selling rate moved down by $1.12 and 10 cents for the lowest selling rate.

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

JSE: Advancing & declining stocks in a battle

July 1, 2013 by IC Insider.com

Monday, 1st July 2013 | While the junior market index continues to advance towards the all-time high of 811 points, the main market indices fell moderately as investors try to find acceptable prices to execute trades.

Based on the recent rise in the prices of many stocks, it’s hard to see how this stalemate will change in the short term without new information to entice investors to view stocks as attractive to acquire now, rather than later. Although the majority of the indices fell today, the advance decline ratio was just able to remain positive as 8 stocks gained to 7 that declined. Trading levels of 4.7 million shares was half of Friday’s, but even less was expended as only $38 million traded compared to $116.17 million invested on Friday. Three stocks closed with the last selling price reaching an all-time record. These are Blue Power at $11, Lasco Distributors at $16 and Lasco manufacturing at $16.

Carreras shares gained 27 cents to $52 as just 9,096 units valued at $482,000 traded, JMMB closed up 50 cents as Scotia Investment bought the bulk of the 1,093 million units that traded, with the stock closing at $8.50. Active offers for JMMB is now at $9.25 an indication that the supply at recent market prices is drying up, but investors may well sell below this price as there is a big gap between bids of $7.72 and offers prices. Sagicor Life traded 248,000 units valued at $2 million as the price slipped back by 18 cents. Scotia Group traded 176,000 units, valued at $3.7 million and lost 31 cents in the process.

The supply of Cable & Wireless share on offer at 15 cents fell below the 30 million mark at the end of trading as the amount offered is now at 29.88 million units. RJR has a bid of $1.23 to buy 4.79 million shares as this stock has had a fair volume of trading recently.

Junior market | Eight junior market stocks traded as Lasco Financial, continuing to respond to the 10 to 1 stock split, closed at $12.70 down 30 cents on Friday’s last traded price with 101,185 shares trading between $12.60 and $13. Lasco Manufacturing also responding to the announced stock split, traded over 736,000 shares, closing at $16 up by 40 cents with $11.66 million invested, while Lasco Distributors closed at $16 after trading at a record high of $16.50 with only 206,408 units valued at $3.37 million trading. Caribbean Cream traded down 15 cents to close at $1.05 with 350,000 units changing hands. Blue Power closed at $11 up $1 on the last selling price with 38,000 units but the offer was for 303,000 units at $10.50 at the end of trading. AMG packaging traded 27,800 shares at $4.20.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 3 stocks were higher with 1 stock having an offer lower than the last selling price.

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

TTSE: Witco all the rage, up $3

July 1, 2013 by IC Insider.com

Monday, 1st July 2013 | The West Indian Tobacco Company marked a new all-time high, increasing by $3 to end the day at $120 as it traded 1,861 units between $117 and $120 the last traded price. Scotiabank declined by $0.21 to close at $69.75 while trading 3,600 shares valued at $251,100.

Overall market activity resulted in 10 securities trading of which 2 advanced, 4 declined and 4 traded firm.

Trading in the main Market took place in 193,120 units valued at $1,004,310 and Clico Investment Fund traded 165,350 shares valued at $3,802,530 in the mutual fund segment. Trinidad Cement had a volume of 169,589 shares changing hands for a value of $161,110, followed by National Enterprises with a volume of 11,500 shares being traded for $182,980. Guardian Holdings contributed 4,750 shares to the level of trading with a value of $76,000.

IC indicator | At the end of trading, the Investor’s Choice bid-offer sentiment indicator shows that bids for 2 stocks were higher with 3 stocks that had offers lower than their last selling price.