Elite Diagnostics shares jump 52%

Heavily oversubscribed Initial Public Issue, Elite Diagnostics rose $1.03 for a 52 percent gain from the IPO price, to close at $3.03 after trading as high as $3.40, as a total of 2,520,373 shares were exchanged on the Junior Market, on Wednesday.
Elsewhere, GWest dropped to $2.50 following investors’ reaction to the results for the December quarter that showed a loss of $48 million and $76 million for the nine months. The results are in line with the company’s forecast in the prospectus of $111 million for the full year so it is interesting that investors are now reacting negatively to the numbers after they traded in heavy volumes after it listed in December as high as $4. GWest closed with a weak bid to buy just 5,000 units at $2.16.

GWest dropped to $2.50 after reporting a loss for the nine months to December.

Caribbean Cream traded at a 52 weeks’ low of $4.65 but stockbroker, Stocks and Securities posted a bid to 6.4 million units at $5.99 and the price moved up to close at $5.99.  Unconfirmed report is that the company is in takeover talks for an entity that is in similar field to it.
The Junior Market index advanced 7.61 points to close at 2,891.29 on Wednesday, as the prices of 9 securities advanced, 7 declined and 7 remained unchanged.
The market closed with 23 securities changing hands compared to 18 securities trading on Tuesday, but the level of trading fell sharply with just 4,892,740 shares valued at $17,902,241 trading, with 24,250,087 shares valued at $100,904,262 securities changing hands.
Trading ended with an average of 212,728 units for an average of $778,358 down from an average of 1,347,227 units for an average of $5,605,792 on Tuesday. An average of 282,425 units, averaging $1,699,526 traded, and previously 806,402 units at an average value of $1,779,476. In contrast, January closed with an average of 122,386 shares, valued at $489,704 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 6 stocks ending with the bid higher than the last selling price and 4 with lower offers.
At the close of the market, Access Financial closed with a loss of 2 cents at $45, trading 5,000 shares, AMG Packaging ended at $2.10, with 205,479 stock units, Blue Power concluded trading $1.02 higher at $34.87, with 10,000 units, CAC 2000 finished at $9.99, with 1,863 shares, Cargo Handlers settled at $10.90, with 3,027 shares. Caribbean Cream ended trading $1.09 higher at $5.99, with 195,881 shares, Derrimon Trading concluded trading 15 cents higher at $7.15, with 1,000 shares, Eppley settled at $10.50, with 300 units, FosRich Group traded with a loss of 1 cent at $2.50, with 327,958 shares. General Accident finished trading 5 cents higher at $2.85, with 163,298 shares, GWest Corporation closed with a loss of 24 cents at $2.50, with 5,400 stock units, Honey Bun ended at $5.25, with 14,273 units, Jamaican Teas settled at $4.50, with 1,444 shares. Jetcon Corporation ended trading at $4.60, with 100 stock units, Knutsford Express closed at $13.10, with 4,285 shares, Lasco Distributors ended with a loss of 10 cents at $4.40, with 1,232,072 shares, Lasco Financial concluded trading with a loss of 20 cents at $5, with 19,707 stock units. Lasco Manufacturing finished with a loss of 5 cents at $4.40, with 66,248 units, Main Event settled 74 cents higher at $6.50, with 4,899 shares, Stationery and Office finished trading with a loss of 34 cents at $5.06, with 96,695 stock units and tTech ended 40 cents higher at $5.40, with 11,507 shares. In the junior market preference segment, Eppley 9.5% concluded trading 5 cents higher at $7.25, with 1,931 units changing hands.
Prices of securities trading for the day are those at which the last trade took place.

Over 1,000 applicants push FosRich IPO over

Mark Croskery Managing director of Stocks & Securities brokers fro teh IPO speaking to Cecil Foster, Managing director of FosRich.

Stocks and Securities advised the Jamaica Stock Exchange that the “Invitation for Subscription” in the Initial Public Offering for FosRich Company Limited is “Now Oversubscribed and Closed”. The Offer closed at 9:01 am today after its official opening this morning.
Reports reaching IC Insider.com is that applications for the issue exceeds 1,000, with more than $350 million accounted for so far, with the full amount still be counted up to late Monday evening.
The company went to market to raise $200 million from sale of just over 100 million shares at $2 each. The general public were allocated just 10,070,111 units, Stocks and Securities, brokers for the IPO was allocated 50 million units and key partners and staff shares has 40,385,000 allocated to them. At this stage it is unknown if any shares from the reserves allocations were not taken up and therefore became available to boost the minuscule amount allocated for the general public. If the general pool is not boosted by much than the general public will end up only a very small sum.
FosRich is one of five IPO issues coming to market in December as VM Investments announced their issue and released the prospectus to sell 300 million shares up to $2.45 each and Elite Diagnostics is expected to issue their prospectus this week, while Wisynco and GWest both officially opens for subscription this week.

FosRich IPO fair value

FosRich Company is heading to the capital market to raise $200 million from sale of just over 100 million shares at $2 each. The general public have been allocated 10,070,111 units, Stocks and Securities, broker for the issue is allocated 50 million units, key partners and staff have 40,385,000 allocated to them.
Reserved shares, if not fully taken up, will be available to the general public. The issue opens on Monday December 4 and is scheduled to close on December 11 with the minimum application of 5,000 Shares.
The Board intends to use the proceeds of the invitation in order to expand the capacity of the Company to provide electrical and energy solutions to its customers and in particular, to expand its ability to provide industrial products. The Company will also pay down existing loans and pay the expenses of the Invitation.
The company has built up a name for itself by way of advertising through electronic media and will benefit further from the increased publicity that will be generated by listing.
Importantly, the company currently has interest debt of $300 million and carries a high level of inventories of just under a year’s supply. In 2014 the company booked through its equity reserves a mark down of $129 million for impairment of inventory and receivables. For the nine months to September this year gross cash flow $50 million before working capital needs and after it ended at a net outflow of $9 million. With those numbers bank financing for expansion is going to be challenging. The capital raised should go a long way in easing this constraint.
The Company major Jamaican wholesaler and retailer of a wide range of electrical, lighting and energy products, opened in November 1993 and it has operated at its flagship location 77-79 Molynes Road for over 24 years. The location serves as the Company’s headquarters and comprises a 25,000 square foot area including warehouse and office space and showrooms. FosRich currently has a staff complement of 84. Apart from its head office in Kingston, they also operates in Montego Bay and Mandeville.

Mark Croskery Managing director of Stocks & Securities brokers fro teh IPO speaking to Cecil Foster, Managing director of FosRich.

According to data presented in the prospectus the average annual growth in sales since was 15 percent and the average annual growth in gross profit over the same period was 20 percent.
Unaudited gross profit for the year to September 2017 was $360 million compared to $346 million for the same period in 2016, for an increase of $14 million. This improvement was mainly driven by improvements in selling prices, which compensated for the reduction in sales revenue by J$60 million to J$796 million compared to the same period in 2016 of J$856 million. The full year results should see the company generating sales of just over $1 billion and profit of approximately $40 million before taxation having made $31 million in pretax profit to September.
The historical record of profits are mixed with pretax profits at $42 million in 2012 rising to $60 million in 2013, in 2014 they made $43 million, just $10 million in 2015 helped by bad debt recovery of $10 million and $35 million in 2016.
The directors are, Marion Foster, Steadman Fuller, Ian Kelly, Peter Knibb and Rosalyn Campbell.
Based on estimated earnings for 2017 of $40 million the shares are priced at 20 times 2017 earnings but when viewed against 2018, that will benefit from lower interest cost and some pick up in sales, profit could reach $108 million or earnings of 22 cents per share. Based on 502 million shares in issue after the IPO, the PE would be 9, on this basis, the price could deliver a 120 percent rise in 2018. The stock is priced at just over 2 times net book value and would be one of the lower valued Junior Market company based on net asset value.

8 junior stocks rose on Monday

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Dolphin Cove closed at a new high of $17 on Monday's .

Dolphin Cove closed at a new high of $17 on Monday’s .

Activity in the junior market rose on Monday from the Friday’s low level and ended with active 13 securities of with 8 stocks advanced and none declined. The junior market index dropped 20 points to 1,628.64 with 3,859,529 units, valued at $20,386,711 changing hands.
At the close there was 1 security ending with no bid to buy and 8 securities had no stocks being offered for sale. A total of 4 stocks closed with bids higher than their last traded prices while none closed with a lower offer.
In trading, AMG Packaging traded 662 units at $7 for the first time, to record an increase of $1, Cargo Handlers closed at $36 while 110 units changed hands, Caribbean Cream ended with 5,288 shares changing hands at $3.80, to gain 40 cents, Consolidated Bakeries gained 4 cents in trading 30,000 units and closed at $1.10 after trading at $1.17. Derrimon Trading ended with 1,015,290 shares changing hands at a new 52 weeks’ high of $3.78, for a gain of 12 cents, Dolphin Cove jumped to $17 with a rise of $1 to close at a new high with only 300 shares changing hands. KLE Group traded 10,000 units after rising 10 cents to 85 cents, Knutsford Express ended at $10.50 with 989,069 shares changing hands after the price high an all-time high of $11.30 earlier in the day.JM Trde Sht 14-12-15 Lasco Distributors closed with 67,426 shares changing hands at $4.50, the price rose to a new 52 weeks’ intraday high of $4.65, Lasco Financial rose 2 cents ended at $3.12, with 33,060 shares changing hands. Lasco Manufacturing (LASM) rose 11 cents and closed at $3.10, with 1,534,857 shares trading. At the close there were 2,536,706 units of LASM offered for sale by Stocks and Securities as broker for a client at $3.30 and Eppley cumulative preference share 2019, ended with 5,000 units changing hands at $6.08 after falling 1 cent.

Scotia Group tops trading on Thursday

Scotia Group accounted for 79% of shares traded in main market

Scotia Group accounted for 79% of shares traded in main market

Activity on the Jamaica Stock Exchange ended with 8 stocks rising, 13 declining as 29 securities changed hands and ending in 2,085,568 units trading, valued at $38,307,831, in all market segments. The main market had more stocks declining than advancing at the close with 10 falling to 5 advancing. Trading volumes were mostly low with Scotia Group accounting for 1.4 million units or 79 percent of the 1.79 million shares trading in the main market.
The JSE Market Index lost 264.93 points to 97,050.42, the JSE All Jamaican Composite index declining by 296.12 points to close at 107,415.22 but the JSE combined index declined 377.15 points to end at 99,605.19.
IC bid-offer Indicator| At the end of trading,JSE sum 25-6-15 in the main and junior markets, the Investor’s Choice bid-offer indicator was showing a better reading than Wednesday’s close of 9 to 8, with Thursday’s reading of 12 stocks with bids higher than their last selling prices and 5 with offers that were lower.
In trading, Caribbean Cement closed with 48,780 shares changing hands at $5.45 after slipping 5 cents, Carreras put on 2 cents while trading 26,534 shares at $48.37, Gleaner ended with 30,000 shares changing hands but lost 1 cent to close at $1.07, Grace Kennedy gained 45 cents with only 2,040 units changing hands at $63.95. Hardware and Lumber fell 50 cents to $17.50 with 1,500 shares changing hands, Jamaica Broilers lost 50 cents in trading 1,497 units to end at $5.50, JSE fn qts 25-6-15Jamaica Stock Exchange dropped 46 cents in trading 5,400 shares and ended at $6.35. At the close Stocks and Securities offered 982,465 units for sale at $6.80, Kingston Properties climbed $1 to $8 with 2,705 shares, National Commercial Bank rose 10 cents in trading 25,224 shares to close at $29.10, Sagicor Group fell 24 cents with 28,533 units trading to end at $12.61, Scotia Group had 1,419,099 units trading at $23.50, Scotia Investments fell by $2.35 to $27.50 with only 4,217 units. Jamaica Money Market Brokers 8.75% preference share traded 56,983 units at a loss of 1 cent at $2.98 and Proven Investments 8% preference share ended with 42,500 units trading unchanged at $5.

12 up 12 down on JSE Wednesday

Carreras fell $2.15 on Wednesday

Carreras fell $2.15 on Wednesday

Activity on the Jamaica Stock Exchange ended with 12 stocks rising, 12 declining as 31 securities changed hands, including 2 that closed at new 52 weeks’ high and ending in 5,819,926 units trading, valued at $47,899,964, in all market segments. The main market had more stocks declining than advancing at the close with 9 falling to 6 advancing.
The JSE Market Index lost 137.06 points to 97,315.35, the JSE All Jamaican Composite index declining by 153.20 points to close at 107,711.34 but the JSE combined index declined 273.13 points to end at 99,982.34.
JSE sum 24-6-15 IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 9 stocks with bids higher than their last selling prices and 8 with offers that were lower.
In trading, Caribbean Cement closed with 38,245 shares changing hands at $5.50, Carreras traded 12,000 shares but closed with a loss of $2.15 at $48.35, Desnoes & Geddes lost 45 cents in trading 21,600 shares to close at $7.55. Gleaner ended with 13,645 shares changing hands but gained 8 cents at the close to $1.08, Grace Kennedy had 26,700 units changing hands and fell 50 cents to $63.50, Jamaica Broilers remained firm in trading 94,000 units to end at $6. JSE fn qts 24-6-15Jamaica Stock Exchange in trading 17,135 shares ended with a gain of 1 cent at $6.81, at the close Stocks and Securities offered 982,865 units for sale at $6.80. Kingston Wharves traded 12,229 shares in closing at $7. The stock traded at a 52 weeks’ intraday high of $7.01, Mayberry Investments traded 123,703 shares to dip 7 cents at $2.53, National Commercial Bank declined by just 1 cents in trading 144,522 shares to close at $29, Proven Investments traded 117,000 shares to close at 21.5 US cents up from the closing price of 19.01 US cents on Tuesday. Sagicor Group fell 10 cents with 1,510,308 units trading to end at $12.85, Sagicor Real Estate Fund closed 1 cent down at $8 after 11,625 shares were exchanged and Scotia Group had 156,455 units trading 25 cents higher at $23.50.

Jamaica Producers trades 5m shares

JPG traded 5 million shares but the price dropped $1.50

JPG traded 5 million shares but the price dropped $1.50

Jamaica Producers, Sagicor Group and National Commercial Bank dominated trading on the Jamaica Stock Exchange on Friday with a combined total of 8.45 million shares. Elsewhere, activity on the Exchange, resulted in the prices of 5 stocks rising, 7 declining as 18 securities changed hands, ending in 9,746,193 units trading, valued at $155,262,211, in all market segments.
Main Market| At the close the JSE Market Index gained 717.53 points to 85,620.15, the JSE All Jamaican Composite index rose index 802.23 points to close at 94,445.60 and the JSE combined index gained 674.14 points to close at 87,355.58.
JSE sum 10-4-15 IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 13 stocks with bids higher than their last selling prices and 3 with offers that were lower.
Jamaica Producers traded 5,003,044 shares and lost $1.50 to end at $17 with 5 million units being bought by Stocks and Securities on behalf of clients, the selling broker was Proven Investments. Sagicor Group traded 2,288,352 shares, between $10.45 and $10.50 but closed at $10.50 for a small gain, National Commercial Bank had 1,167,359 units changing hands to close at $25.50. Carreras traded 101,583 units at $43 and suffered a lost $1.05, Scotia Group traded 244,951 shares, between $22 and $22.50 before settling at $22.05 for a loss of 45 cents andJSE qts 10-4-15
Proven Investments finished with 201,102 shares at 18 US cents.
Desnoes & Geddes traded just 1,700 shares to close at a 52 weeks’ high of $5.55 by posting a 5 cents gain. Grace Kennedy traded 3,850 shares at $65 for new 52 weeks’ highs and Supreme Ventures with 20,435 traded as high as $2.95, a new intraday 52 weeks’ high but ended down, at the close at $2.31 after shedding 49 cents from Thursday’s last price and Barita Investments suffered a fall of 27 cents to $1.95 for a new 52 weeks low. Proven 8% preference share traded 13,260 units to close at $5.05 after dropping 45 cents.