Seprod slated to make big acquisition

Seprod is in the process of acquiring a distribution company headquartered in Trinidad and Tobago and is involved in food, grocery, hardware, housewares, pharmaceuticals and beverages.
ICinsider.com gathers the acquisition, which Seprod states is slated to be concluded by the end of May, would about double Seprod’s size in revenues. The target has 1,300 employees and revenues of US$240 million around J$37 billion, just below Seprod‘s sales of J$43 billion for 2021. The group, AS Brydens which is being acquired, also operates in Barbados and Guyana and is expected to boost Sperod’s profit per share, from the majority ownership that they will hold along with others within the Musson Group.

IC Insider.com gathers that Seprod expects to benefit from increased sales of locally manufactured goods through the new linkage.

New Junior Market record & Majors rise

The Junior Market rose 15.34 points to end at a new record close of 4,399.56 while Main Market made a marginal recovery but the JSE USD market lost much ground. At the close, the JSE Combined Index added 2,845.48 points to close at 412,069.67.
The All Jamaican Composite Index gained 1,335.55 points to close at 455,179.03, the JSE Main Index rose 2,893.91 points to end at 398,414.13 and the JSE USD market index slipped 10.72 points to 213. 99.
Trading results in 27,412,394 shares trading in all markets. The value of stocks exchanged in the Main and Junior markets amounts to $142.7 million and the JSE USD market amounts to US$12,484.
The market’s PE ratio ended at 25.2 based on 2021-22 earnings and 13.9 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help with decision-making.
Investors should make use of the chart to help make rational investment decisions by investing in stocks that are close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to take emotions out of the investment decision and put in on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices. Dividends payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.

 

Sagicor snaps up another Alliance company

Sagicor Investments signs a definitive agreement to purchase the securities dealer book of business of Alliance Investment Management, a release to the Jamaica Stock Exchange by Sagicor Group stated.
Sagicor Group & PanJam hit new closing highs.Sagicor Group subsidiary, Sagicor Investments entered into a definitive agreement for the purchase of the securities dealer book of business of Alliance Investment Management. The purchase, which is subject to due diligence, is expected to be completed over the next two months. Sagicor Group President and CEO, Christopher Zacca stated that “this latest acquisition of the AIML book of business will further expand SIJL’s client base and allow us to offer the best possible service and investment returns to our new investment clients.”
This news comes on the heels of the Sagicor Group purchase of 100% of the shares in Alliance Financial Services and would have been encouraged by the reputational damage emanating from the debacle with their principals and the country’s central bank.

New record high for Junior Market

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The Junior Market of the Jamaica Stock Exchange is trading in record territory currently at 4,314 up 45.27 points after hitting a record high of 4,315.88 after 47 minutes of trading on Wednesday after the market opened at 4,287.79.
In moving to the new record, five stocks hit the circuit breaker, with Fosrich trading at a record high of $27, iCreate at a 52 weeks’ high of $1.90, Paramount Trading at 52 weeks’ high of $2.85, SSL Venture Capital at $1.80 and Stationery and Office Supplies at $9.15.
Main Market stocks are down, with the All Jamaican Composite Index shedding 5,653.06 points to stand currently at 444,936.21.

New record for Junior Market

The Junior Market appears set to end trading on Wednesday at a new record high, with the market index reaching another milestone at the opening, surpassing the 4,300 points level for the first time when trading pushed it to a record intraday high of 4.303.77, beating the previous high of 4,292.32 on March 29, this year.
The Junior Market has pulled back to 4,291.04, after ten minutes of trading and is up 44.32 points from Tuesday’s close. The big Junior Market mover is Elite that traded at $4, up from $3.55 on Tuesday.
The all Jamaica Composite index trades at 449,436.28 versus 448,980.04 at the close on Tuesday.

Jamaica visitor arrivals up 38% over February

Jamaica’s tourist industry continues to rebound, with the latest data suggesting that March this year is showing the best performance since 2019, with a decline of 22 percent from March 2019, the previous period of uninterrupted visitor arrivals to the country.

Tourism is Jamaica’s largest earner of foreign exchange.

An impressive 38 percent more passengers or 193,828 landed at the Sangster Airport in Montego Bay in March this year than the 140,368 that came in February this year and is up by 190 percent on the 66,778 incoming passengers in March 2021.
According to tourismanalytics.com, Aeroportuario del Pacifico, which manages the airports in Montego Bay and Kingston, Jamaica, saw the total number of passenger movements in March 2022 being 78.4 percent of the 491,800 handled in March 2019.
The Sangster International Airport data for the first three months of 2022, Montego Bay Airport saw total incoming passengers increase by 215 percent, to 452,496 passengers.
Kingston’s Airport handled 98,400 total passenger movements in March 2022, increasing 27 percent compared to February, with 77,500 total movements. The total number of passenger movements in March 2021 was just 36,700 passengers.
Total passenger movements the Kingston’s Norman Manly International Airport grew by 131 percent, from 115,500 in 2021 to 267,100 in the first three months of 2022.

Gooden buys 10% of Elite Diagnostic

Reports reaching ICInsider.com is the chairman of Elite Diagnostic acquired more than 35 million shares on Friday, with the majority coming from Excel Investments, that owned the largest block of 130 million or 36.9 percent of issued shares.
The trade means that Gooden, who previously owned a mere 242,230 or a fraction of one percent, will now own around 10 percent of the company, the third largest shareholder behind Excel with 85,231,108 units and NCB Capital Market with 66 million shares or 18 percent.
Gooden, a very knowledgeable person in the investment field, also heads NCB Capital Market and controls the largest block of shares in the company of 28 percent, compared to Excel with 27 percent.
The Elite Diagnostic trade was the largest block of shares trading on Friday, accounting for 76.5 percent of all Junior Market trades on that day, but trading ended with 85.2 million units on the offer to sell at $2.57 and 30 million on the bid to buy at $2.50. ICInsider.com gathers that the amount on offer is not up for sale and should have been cancelled before the market closed.
The purchase is a strong endorsement for the stock and the company’s future that ended as the number one choice in this weeks’ ICTOP10 Junior Market listing.
The results for the second quarter to December stated, “continued spread of the Coronavirus disease (COVID-19) continued to negatively impact the operations of the company. Revenue continues to be impacted as social distancing protocols reduce the number of patients booked per day.”

Elite CEO Warren Chung & shareholder in Excel Investments chatting with a shareholder at Elite’s 2018 AGM.

ICInsider.com understands that the restriction placed for curfews restricted business as the offices could not be opened late, thus affecting business.
Gooden most likely would have seen the prolonged trend of year over year and quarter over quarter growth in revenues and the strong positive cash flow the company continues to generate and prospects for more expansion of the business as solid credentials for future earnings and profit.
For the six months to December last year, the company generated a profit of $7 million but had positive cash inflows of $83 million, with revenues rising 22 percent from $236 million to $288 million with eth December quarter rising 16.6 percent from $128 million to $148 million. Profit in the second quarter increased from $3 million in 2020 to $7.3 million. Importantly gross profit margin is an astounding and attractive 66 percent.

 

Alliance get licenses back

Alliance Financial Services (AFSL) which has been acquired by Sagicor Group got back licensed to offer cambio and remittance services at approved locations a release from Jamaica’s central bank Bank of Jamaica advises. 
The release from the central bank stated that under the new ownership structure, AFSL has satisfied the Bank’s due diligence requirements.
Alliance was acquired after Bank of Jamaica suspended the company’s licenses to operate the above services under the former ownership.

Bullishness rises on the JSE as 2022 ages

Trading levels are soaring at the Jamaica Stock Exchange in 2022 with the amount of funds passing through the Main Market for trading jumping 141 percent over 2021 with an exchange of $14.87 billion over the $6.16 billion in the first quarter of 2021, at the same time the Junior Market attracted 184 percent more funds for all three months amounting to $4.6 billion up from just $1.62 billion in 2021.
New listings helped considerably in pushing the value of trading in the Junior Market in March but not significantly in January and February. March benefitting strongly from Spur Tree that was listed in January, accounting for $617 million, JFP Ltd with trading of just $160 million and EduFocal $286 million with the three accounting for $1.06 billion of the $1.84 billion increased trading in March over 2021. Spur Tree in January when it was listed accounted for $208 million and just $186 million in February.
The Main Market benefitted from the listing of Massey Holdings in January but has had a moderate impact on the value of stocks traded, with March showing the largest amount of $1 billion, with just $369 million in February and $150 million in January.
Trading rose 145 percent in January 2022 over 2021 for the Junior Market to hit $979 million and 90 percent in February to $1.19 billion, with March enjoying a big 309 percent rise to $2.4 billion. In the Main Market trading rose 114 percent in January 2022 over 2021 to $2.7 billion, 66 percent in February to $3.64 billion and 215 percent to $8.5 billion in March.
Importantly, in both markets, the increases are reflected in higher value month over month suggesting that investors are getting increasingly more aggressive in trading stocks. The buoyancy in the market will swell revenues and profit in the first quarter for the JSE.

Junior Market at record high on Friday

The Junior Market of the Jamaica Stock exchange is now trading at a new record high of 4,197.38 at 11.40 on Friday, up from 4,104.06 at the close on Thursday, as Express Catering (ECL) climbed to $6, Lasco Manufacturing rose to $5 and Spur Tree Spices hit $3.80.
Since then the market pulled back slightly to trade at 4,196.81.
The Junior Market’s previous highest level was reached on Friday, March 4, when it ended at a record closing high of 4,168.16, up 95.60 points for the day after hitting all-time intraday high of 4,185.95 at 11.45 am that morning.
Trading the shares of ECL is suspended for breaching the 15 percent circuit breaker limit. The JSE Main Index is up to 386,151.14 from Thursday’s close of 384,196.74