Tax on Coffee May Reduce Profit for Salada

Posted on

Many may think an 80 percent increase in profit and a 19 percent increase in revenue just halfway through the financial year would be reason to celebrate for a company, but that isn’t the case for Salada Foods Jamaica Limited.

The Company is anticipating a levy on coffee beans this year which may very well derail most of the gains the company has made so far. Salada is expecting a significant impact on operating revenue stemming from imminent  government taxation and while the company cannot predict what may happen in the coming months, they are preparing for possible pitfalls ahead.

Effective April 1, 2018, Salada is expected to pay USD$1.41 per kilogram for imported green beans and USD$2.40 for value added products. Currently Salada pays USD$1.52 per pound for imported coffee in addition to USD$2.52 per pound for Jamaican coffee blended with the imports. The company already finds it difficult to get the grade of coffee needed to meet the 20 percent quota for local beans for coffee blends.

Initially, the company did not suspect they would be subjected to the coffee tax as part of an ongoing effort to protect local farmers. The assumption was that the tax would be on roasted and ground coffee sold to hotels. On the contrary, their assumptions were incorrect and despite instant coffee being of a different grade, it was also targeted.

For the six month period ending March 31, 2018, Salada reported an increase of JMD$77.89 million in sales of JMD$404.37 million in 2017 for the same period to JMD$482.27 million in 2018. While net profit increased from JMD$44.9 million to JMD$80.2 million, Salada saved 22 percent on expenses in order to achieve this result but the tax on coffee may very well thwart their efforts.

Salada is the sole manufacturer of instant coffee in the Caribbean region and currently trades at JMD$13.00 on the Jamaica Stock Exchange.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Second Largest Jamaican Denominated Bond Issue For NWC

Posted on

For years, privately owned companies have had many different channels through which they have access to much needed credit. Financial institutions have awarded eligible entities with loans to assist with several operational activities. Recently, with the evolution of how capital can be raised, many companies seek the help the public through the issuing of bonds or the help of an Initial Public Offering (IPO). These measures grant companies the opportunity to facilitate repayment of debt, infrastructure updates, expansions, among others.
The most recent, and second largest bond issue in Jamaica was done by the National Commercial Bank Capital Markets on behalf of The National Water Commission (NWC). Investopedia describes a bond as is a fixed income investment in which an investor loans money to an entity (corporate or governmental) which uses the funds for a defined period of time at a variable or fixed interest rate. Bonds are used to raise money and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the issuer.

The issue by NWC will be a total sum of $15 billion Jamaican Dollars. It will allow the company to finance the debt it has racked up attributed mostly to the depreciation of the foreign exchange rates, as their loans are foreign currency denominated. This will also assist with mitigating the currency risk they face without having to use most of their revenue (which is the case now) to finance debt. The bond will further be used to develop much needed infrastructure and network to regions across the island which don’t have access to consistent running water.

NWC is a private company which provides a necessary utility to Jamaica, this therefore makes them one of the country’s biggest assets and therefore needs to be protected. Prime Minister Andrew Holness aired his pride for the company in a press conference held on May 15, 2018 where details of the bond were provided. He believes that this bond is the first step to making the entity a publicly traded one, which will further benefit customers, as well as the economy as a whole.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Why is Nestle Spending over US$7 billion on Starbucks?

Posted on

On Monday, Nestle announced that it will pay US$7.2 billion in cash for the rights to sell Starbucks coffee products in grocery stores and restaurants worldwide. The deal will allow Nestle to market, sell and distribute Starbucks brand. Many may ask why Nestle would spend so much on a segment which only generated US$2 billion in revenue about 9 percent of Starbucks total revenue. The deal is priced three times more than sales.

Nestle is the world’s leading coffee brand, however, in the U.S. it only accounts for 3 percent of the coffee industry. The company’s coffee brand, Nescafe, is viewed as boring by the younger generation and its other high end brand, Nespresso, has not garnered the appeal of many consumers.

The deal was made in an effort to recapture their appeal to trendsetters. Furthermore, Nestle is facing heavy competition from JAB Holding Company who has spent over US$30 billion to build its coffee empire. JAB Holding includes coffee brands such as Keurig Green Mountain and Peets. But the deal should help Nestle keep JAB at a distance.

Starbucks accounts for 15 percent of the coffee market in the U.S. According to market research firm Mintel, a jar of Nescafe and a bag of Starbucks coffee bean cost the same, but Nescafe makes more than three times the cups of coffee Starbucks beans make but despite this calculation, consumers prefer to use the more costly brand.

Starbucks plans to use the US$7.2 billion from the deal to fund stock buybacks and the deal would give them access to more markets. Currently Starbucks sells its products in 28 countries compared to Nestle which is operational in 190 countries. This expansion is something Starbucks would not be able to do on its own without spending a massive amount. The deal is said to prove profitable in the long term.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Black Panther Boosts Walt Disney Co. Earnings

Posted on

One of the most recent box office explosions, “Black Panther” has proven to be more than just excellent cinematic artistry, but a great profit boost for Walt Disney Co. [NYSE: DIS]. Their second quarter profits have soared past estimates predicted by Wall Street advancing to USD$1.84 in earnings per share, while sales rose to USD$14.5 billion, compared with predictions of USD$14.1 billion. The worldwide movie phenomenon boasted USD$1.3 billion in ticket sales since its release in February and is still playing in theatres across the globe. These numbers have caused a ripple effect for Walt Disney Co.  through an increase in theme park visits during a typically slow season as well as the boost to a television business that’s being negatively affected from an overall decline in pay-TV viewership.

Additionally, more movie releases, such as “Avengers: Infinity War” and the upcoming “Solo: A Star Wars”, can assure the company’s profits for the first half of the year in their studio segment. Up to May 6, 2018, Disney is responsible for a third of the domestic movie business, as reported by Box Office Mojo.

Regardless, Walt Disney Co. faces an uphill battle with their cable division, as it portrayed a 4 percent loss is profits year over year. They are currently taking steps to boost earnings in this segment through the acquisition of 21st Century Fox Inc., but they face significant competition as U.S. cable company Comcast Inc. is rumoured to also place a bid for said company. This among other factors has propelled the company’s stock price to remain largely stagnant in recent years. Strong competition from companies such as Amazon.com Inc. [NASDAQ: AMZN] and Netflix Inc. [NASDAQ: NFLX] has ignited investor uncertainty, which caused the stock price to average about USD$100. This price has caused SSL to recommend it as a buy for clients. The company has the potential to increase share value if their current investments are successful along with the benefits they are set to reap with the present movie releases and increased ticket prices and sales to theme parks.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Supreme Ventures Limited Testing Mobile Betting App

Posted on

Supreme Ventures Limited (SVL) has reported that the company has made progress on its mobile betting app project but will not reveal all the details to the public until testing is complete. The company has partnered with Advanced Integrated Systems Limited to use its Quisk platform to roll out the app. The app is being tested with sports betting before any other game.

Advanced Systems Limited has however indicated that the patent is still pending and authorities have not yet implemented any legislation to regulate online gaming. Another ambiguity lies in the regulation for online payment in online gaming.

The Bank of Jamaica is responsible for the regulation, however, the bank’s oversight does not include online gaming on a mobile device. The Betting, Gaming and Lotteries Commission (BGLC) stated that they will accept any payment method the Bank of Jamaica approves.

According to SVL having a mobile online gaming app will make it easier for persons to place bets. The use of Quisk will allow for faster payouts and access for the funds to be used to place more bets throughout the day. Mobile money will provide automatic audit trail for each bet and the banking sector will still be able to monitor KYC data or know your customer data.

For the quarter ending March 31, 2018, Supreme Ventures Ltd (SVL) reported a 14 per cent increase in revenue from JMD$13.39 billion in 2017 for the same period to JMD$15.29 billion. Profits increased by an impressive 49 percent from JMD$418.3 million to JMD$618.4 million. Lottery games continue to show increased growth in profit compared to the previous year, from JMD$556 million to JMD$796 million, a 30 percent increase in growth. However, horse racing continued to lose even more than it did in 2017 form JMD$19 million to JMD$40 million this quarter.

Nevertheless, Supreme Ventures  Ltd (SVL) continues to soar with an earnings per share increase of 49 per cent from $15.77 to $23.45 and we at SSL recommend our clients to include this stock in their portfolios. The stock is trading on the JSE at $12.20.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Record Profit for NCB

Posted on

For the half year period ending March 31, 2018, NCB has reported record profit of JMD$11 billion. Patrick Hylton, Chief Executive Officer of NCB, lauded the bank for being the first listed institution on the Jamaica Stock Exchange to exceed JMD$10 billion in earnings in six months. Hylton is optimistic that this will not be the last record profit set by NCB as he further boasted about the sustainability of the company’s business model which will push the bank to continue on this path.

NCB reported an increase in revenue of 25.2 per cent from JMD$36.8 billion in 2017 to JMD$46.1 billion for the same period in March 2018. JMD$1.5 billion has been attributed to the company’s acquisition of the Clarien Group. Net profit increased by 17 per cent from JMD$9.46 billion in 2017 to a record of JMD$11.04 billion in 2018. It has been reported that this is because of an increase in demand for investment securities as there is a reduced availability of government paper.

Wealth, Asset Management and Investment Banking performed exceptionally well and have proven to be the main contributor to the company’s operating profit with JMD$4 billion, an increase of 6 per cent from the previous year. Treasury and Correspondent banking is now the second largest contributor after only achieving JMD$3.96 billion in profit despite a 10 per cent increase from the same period in 2017.

NCB utilises advanced digital technology in order to provide enhanced solutions for customer experience. This has been well received by customers as is evidenced in its financial statements.

We at SSL continue to recommend NCB to our clients as we look forward to another stellar performance form the company in the coming quarter.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Allergan Set to Release Game Changer Depression Drug

Posted on

Allergan Plc [NYSE: AGN] is a multinational pharmaceutical company that produces both drugs and conducts research and development within the same industry.

It is no secret that AGN specializes in ophthalmology, women’s health and aesthetics products, one of which includes a well-known product and their best-seller, called Botox.

Botulinum Toxin, most commonly known as Botox, is a non-surgical cosmetic treatment which is used worldwide. It is a wrinkle treatment that cripples repressed muscles that is administered by injection through the skin at the site of fine lines and wrinkles.

Generally used by women, Allergan has started advertising a Botox treatment specific to men. This proves that men are starting to be more conscious about their physical appearances, just like women.

Botox’s reported sales has exceeded, fell just below or breaks even with estimated sales. The last two quarters however, sales reported exceeded that of estimated sales, with Q1 generating $817.3 million globally. The company usually has competitive advantage with the fact that Botox is hard to replicate, however, in recent times, Revance Therapeutics Inc announced that they were developing a carbon copy of the same product that research shows the possibility of it lasting longer than Botox.

This news of course places some concern of the longevity of the company and how much longer it would be able to be on top. However, competition is something that also drives growth, it pushes a company to ensure there is maintenance of quality and that research and development is invested in, to add more products and services which allows for the company to maintain and acquire more market share.

SSL posits that it was a good move for Allergan Plc to provide a product for men. Women too long have been looked down upon for trying to enhance what they were born with; times have changed and now men are looking for cosmetic enhancements too.

In recent times we have even realized that men don’t only wear toupees but are now gravitating to wearing wigs just like women. This is a way that Allergan has now not only grabbed the attention of women, but also that of men, broadening their market share and keeping their name above all others.

Additionally, the company has a new drug that analysts say could be a game-changer for depression. In Jamaica and many other Caribbean islands, mental health is something that is still taken lightly by many people; however, it is wide-spread and prevalent.

Information on both products are in the pipeline, so we will see where these products will take the company and continue to watch its growth.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Chukka Eyeing IPO as a Possibility Amidst Expansion

Posted on

Chukka Caribbean Adventures recently disclosed its intention to list on the Jamaica Stock Exchange. The news came just as the company reported it will be expanding into two more regional markets as well as improving its service offerings in Jamaica.

Chukka recently issued a $2 billion dual currency bond in order to refinance its debt and fund its expansion. The bond was arranged by Sygnus Capital, who on Wednesday opened its own IPO, and Sagicor Investments Jamaica. The Jamaican dollar portion of the bond has a fixed coupon of 8.50 percent while the U.S. dollar portion has a fixed coupon of 6.50 percent and will mature in five years. There will be a quarterly interest payout on the bond. Chukka currently has a debt of just over 10 per cent and the company is hoping the bond will yield savings of 25 to 30 percent on interest costs.

Chukka is looking to expand its partnership with Carnival Cruise Line whose bigger ports will serve as an advantage to Chukka. Locally, Chukka has been improving its offerings at different locations. The company has adventure tours in St. Lucia, Belize, Turks and Caicos and Jamaica. Chukka Jamaica has seven locations across Jamaica’s North Coast including Negril. In recent times, there has been expansion of a water park, bar and restaurant at its Trelawny location late last year and the addition of a zip line at the Dunn’s River location costing USD$2 million and USD$1 million respectively.

Chukka expressed satisfaction stating that the demand for the bond on the market was high and the interest rate was even more competitive. The company hopes to forge meaningful and beneficial relationships with institutional investors as they continue to explore financing options for growth.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Amazon Rollouts Could Harm More Companies

Posted on

Amazon.com, Inc (NASDAQ: AMZN) has been rolling out new efficient measures, which have been threating to areas such as delivery affecting FedEx and UPS sales. In addition, Amazon intends to rollout a new payment system to offer retailers discounts from credit card fees, which could affect big names such as Paypal Holdings Inc., JP Morgan Chase & Co., Citi Group Inc., Mastercard Inc. and Visa Inc. to name a few.

Swipe fees are a USD$90 billion a year business for companies such as JPMorgan Chase & Co. , Citigroup Inc., and networks such as Mastercard Inc. and Visa Inc. and payment processors like First Data Corp. and Stripe Inc., who earn a portion when customer swipe their cards or click “buy now”. Furthermore, credit card transaction fees amount to about 2 percent and .24 cents for debit cards, but big stores such as Amazon and Walmart have negotiated for lower rates based on their large sales volume daily. However, Amazon is willing to forfeit profitability for a long-term gain acting as a so-called payments facilitator like Paypal by exporting or offering to pass this discount to its merchants who agree to take on the Amazon Pay service.

As a result, this means Amazon will group its smaller merchants to help them reduce the cost of accepting electronic payments. Furthermore, since Amazon’s announcement, Paypal shares dropped 4.1 percent on Wednesday, erasing most of its gains of 3.7 earlier in the year. Visa also fell 0.9 per cent.

Moreover, The drawback to this is that many small merchants are sceptical about divulging certain information with Amazon, which may compete with them to sell similar products on its own site. Amazon operations’ main intention is to get a piece of other retailer’s e-commerce revenue to becoming the ultimate one-stop shop.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Cambridge Analytica Speaks Out Against Allegations

Posted on

Cambridge Analytica has finally stepped out to deny allegations made against them in the case of widespread misuse of data from millions of Facebook accounts. Cambridge Analytica held its first news conference since allegations surfaced that the Facebook data was used in the aiding of Donald Trump win in the 2016 presidential election, which was represented by Clarence Mitchell, the company’s publicist.

After months of allegations resulting in salacious scandals, Cambridge Analytica’s reputation is still being dragged through the dirt. This has resulted in even the CEO of Facebook Mark Zuckerberg, having to publicly apologise for his company’s wrongdoing especially where privacy policies being questioned.

Furthermore, Mitchell went on to say The company has been portrayed in some quarters as almost some Bond villain, in which he said, Cambridge Analytica is no Bond villain. Also, in denying the claims of having nothing to do with Facebook’s Data aiding Trump’s campaign and even Brexit campaigns, Mitchell stated that the data collected from Facebook was gathered by another company, who had contractual obligations but, deleted such data when the uproar started.

Facebook’s share price had been taking a head-on blow having gone down to as low as USD$150.00 per share and the losing almost USD$50 billion in value for its shareholders.

On the contrary, a former employee of Cambridge Analytica, Christopher Wylie also made claims that the company has connections to the successful campaign such as taking Britain out of the European Union.

Moreover, Mitchell is adamant that Cambridge Analytica did not break any laws, but has admitted to ordering an independent investigation because, he insists the company is being victimised with wild speculation based on misinformation, misunderstanding, or in some cases, frankly, an overtly political position.

Also, Mitchell stated that to think political consultancies can use data to influence votes is “frankly insulting to the electorates. Data science in modern campaigning helps those campaigns, but it is still and always will be the candidates who win the races”.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Facebook Profits Spike Despite Scandal

Posted on

It is fair to say many investors got cold feet and panicked since the data privacy scandal, dubbed the Cambridge Analytica Scandal, made the news on March 19. In an effort to minimize their loss, some investors sold shares in Facebook causing the stock to decrease in value by 14 per cent since that time. Many persons feared that the stock price would spiral downwards as usership would decline and tighter regulations would cost the company.

On the contrary, it did not. Facebook released its earnings report on Wednesday and it was better than predicted. Monthly active users in the first quarter increased by 13 per cent compared to the same period last year, totalling 2.2 billion users. Daily active users in the U.S and Canada, increased from 184 million users last quarter to 185 million users this quarter. Net income rose to USD$4.99 billion or USD$1.69 per share from USD$3.06 billion or USD$1.04 per share in 2017. Revenue was even better than expected, totalling US$11.97 billion from an estimated US$11.41 billion.

These are positive results for the world’s largest social network which has been surrounded by negative news for weeks about the role the company played in the recent elections, divulging personal information about its users. Facebook generates revenue by selling advertisements which is personalized to each user based on search history, age, gender, interests and friends list.

Coming from the scandal, Facebook could see increased regulations which may decrease ad profits as data used to target ads to users will have to be reduced. However, based on how the market responded on Wednesday, it is clear Facebook is in a good position to cope with regulations and the company will indeed get through this. The stock now trades on the NASDAQ at USD$159.69.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on FB, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Disappointing Cash Flow Outlook Lowers Lockheed Shares

Posted on

Lockheed Martin Corporation [NYSE: LMT], on Tuesday, fell by 6.1 per cent to USD$336.49 as the weapons supplier failed to raise cash flow projections for 2018. A little puzzling and disappointing for investors as the company is the number one weapons supplier to the U.S. government who recently spent far more on defense than they did in the previous year.

Lockheed recorded modest profits in its first quarter review and even surpassed estimates from analysts. In light of this, Lockheed raised its 2018 forecast. Additionally, the company experienced increased sales of the F-35 combat jets. Lockheed, however, blames pension contribution for which it stated caused “negative cash from operations in the second quarter.”

The annual cash flow forecast was the only aspect of the company’s financials which was not revised higher. Lockheed is however optimistic that the outlook for cash flow may change as “it is still early in the year and cash is trickier to predict.”

Controversy is seemingly affecting the company’s ambition to raise its financial outlook for the coming quarter as news surfaced of the US Department of Defense having stopped the delivery of the F-35 jet disputing a production error and the responsible party. The F-35 jet is responsible for about a quarter of Lockheed sales and without it the company’s growth potential may be significantly impacted.

In 2018, Lockheed projects that the company will make revenue between USD$50.35 billion to USD$51.85 billion compared to its previous forecast of USD$50 billion to USD$51.5 billion. In the first quarter of 2018, which ended March 25, Lockheed made net income of USD$11.16 billion compared to USD$789 million for the same period in the previous year. Net sales increased by 4 per cent from USD$11.21 billion to USD$11.64 billion.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Why Bother to Plan for Retirement?

Posted on

As you probably know already, Retirement is when a person’s work life comes to an end after they have either accomplished all they need to financially or have reached the legal age to do so. However, some do not take this period in their lives as seriously as they should, thus not putting the proper measures in place to secure their future.

One downfall of persons is that they do not start making steps in saving for retirement until they are close to the age. This should not be so, as a pension plan alone is highly unlikely to be able to sustain someone, let alone allow them to live comfortably after.

According to the Senior Manager at JN Bank, Sharon Smith, good management of your money on a monthly basis is very vital in planning for retirement. As early as earning our first pay cheque we should be thinking about how we will be able to save toward a comfortable retirement and not only about the next party, hotel or country we’re headed to.

This isn’t to say that people shouldn’t be enjoying their lives doing what they love; but there should always be balance and priorities. Going to one less party for the month and redirecting the money that would have been spent, towards an SSL Brokerage account is one way to contribute towards your pension plan. It is not about the age we are at now, it is about the age of retirement and the growth we want to achieve.

Saving through a pension scheme is actually a lot better than people may think. For one, you cannot benefit from it until you have retired, unless there is a serious need for it like health issues. Secondly, the one that will catch person’s eyes, is the fact that it is taken out of your salary before PAYE is deducted, which then lowers your tax threshold. We all know that persons wish they were taxed less.

There are many other ways to make investments to add to pensions savings, like investing in real estate to earn income from rentals or even investing in stocks and bonds that give income, growth for your capital and also preserve your capital. The younger you are the more aggressive you can be, investing in more growth stocks so that your money can expand. As you carry on in age, you can then shift your focus on stocks and bonds that give both income and growth, which generally fluctuates around the same price level so there is no loss in capital.  Lastly, when you are very close to retirement or even in retirement, you of course would not want to take on the risk of losing all you have earned or saved, which oftentimes results in you being a more conservative investor; looking into more bonds than stocks that give good yields and also preserves capital.

Investing is not always easy nor is it always safe, but it is always worth a try. The majority of wealthy persons today have some form of investment.

Don’t you want to be like them so you can travel the world, live comfortably and not have to be dependent on the state that does not even provide enough to sustain anyone?

We still see elderly persons on the street trying to make ends meet, selling produce or even goods. At that age you should be relaxing at home, babysitting your grandchildren or even travelling to places you have never been.

Retirement age in Jamaica is 65 years old. Take retirement seriously! Start saving and investing now!

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

 

Share it with a friend:

Berger Directors Misguided Minority Shareholders to Sell Shares

Posted on

We must all remember September 2017 when news emerged of a Trinidad based company called ANSA McAL which offered to acquire shares of minority shareholders of Berger Paints, through its subsidiary ANSA Coatings International. ANSA offered to buy each unit for JMD$10.88 despite the value per share being at JMD$11.60 at the time. Unfortunately Ansa only received JMD$6 million of the JMD$105 million units they had requested and the stock was not qualified to be delisted.

Many rejected the offer as it was seen as unfair and minimal, which was right as the stock was valued more than the JMD$10.88 they offered and even more now that it last traded on the Jamaica Stock Exchange at JMD$19.10.

Directors at Berger Paint Jamaica thought otherwise. They highly recommended that shareholders take up the offer which they described as a fair price. A few of the directors along with a few employees stated they would accept the offer, according to Berger Paint. However, after releasing its annual report in December 2017, it was revealed that all the directors of Berger Paint Jamaica still had all their shares listed and only one employee sold her shares.

It was later reported that the registrar did not receive the forms of acceptance from the directors during the application period. The directors, however, are adamant that they did in fact submit the acceptance forms but the applications are no where to be found. Shareholders are now questioning the poor judgement of the directors who were tasked to protect their interest but instead ill- advised the minority.

In its financial statement ending December 2017, Berger Paint Jamaica reported revenue of JMD$1.9 billion, a 21 percent decrease from JMD$2.4 billion the previous year. Net profit also took a hit, down by 45 percent from JMD$316 million to JMD$174.1 million.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

First Caribbean Bank Withdraws IPO Registration

Posted on

First Caribbean Bank (FCIB) has withdrawn its registration to list its shares on the New York Stock Exchange (NYSE). The bank, which has its headquarter in Barbados, explained on Thursday that the submission has been withdrawn due to ‘market conditions’ in the US. It did not specify the US ‘market condition’ it was troubled by.

First Caribbean Bank filed a registration for its IPO, with the symbol FCI, in December 2017. In its prospectus to potential investors, FCIB indicated the growth the company has achieved over the years. It made mention of the growth in markets in Jamaica, Trinidad and the Dutch Caribbean. An example was provided of the company’s loan book which grew by double digits in Jamaica, compared to the other banks whose loan books grew by single digits in 2017. Growth was also mentioned in retail banking and investment banking.

It was reported that First Caribbean Bank (FCIB) withdrew its application to list, the same day the New York Stock Exchange notified the United States Securities and Exchange Commission that the IPO was approved. FCIB had made changes to its registration statement stating the company would offer 9.6 million common shares between USD$22 and USD$25 and also that it intended to sell 1.4 million common shares outside the IPO.

For the financial year ending October 2017, FCIB reported net income of US$151.3 million from US$143 million two years before, a 6 percent increase. FCIB holds US$12 billion in assets in 2017 compared to US$11 billion the previous year, with a market capitalization of US$2 billion. Total revenue for 2017 was USD$547.4 million compared to USD$533.8 million; a 3 percent year over year increase.

First Caribbean Bank (FCIB) is not the first Caribbean based bank to withdraw its IPO registration on the NYSE. In 2013, NCB Group aborted its IPO and had to absorb $680 million in costs relating to financial fees. The bank has however recovered significantly from that situation as it has reported record profits in 2017.

Could FCIB be withdrawing its registration because of market volatility in the U.S.?

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

 

Share it with a friend:

Morgan Stanley has Golden Performance

Posted on

Morgan Stanley (NYSE: MS) reported a stellar first quarter with all segments delivering record revenue growth. When combined the company achieved an USD$11.1 billion revenue increase for the first time when compared to USD$9.7 billion a year ago. Also, corporate tax cuts also aided in its stellar performance.

Morgan Stanley saw robust increases in its institutional securities net revenues of USD$6.1 billion compared to USD$5.2 billion, reflecting strength across its sales and trading segment which rose to USD$4.4 billion from USD$3.5 billion. Furthermore, the company’s investment bank segment which is ranked #1 in completed mergers and acquisitions and global equity so far this year with the use of data compiled by the Bloomberg saw an increase of USD$1.5 billion in comparison to the USD$1.4 billion reported in the prior year.

In addition, pre-tax income helped to drive this stellar performance with an increase of USD$2.1 billion from USD$1.7 billion one year ago. Wealth Management reported net revenues of USD$4.4 billion when compared with USD$4.1 billion a year ago.

This is due to an increase in pre-tax income from continuing operations of USD$1.2 billion compared to 973 million last year. Besides, Asset management reported a rise of USD$2.5 billion from USD$2.2 billion a year ago, reflecting higher asset levels and positive flows.

Investment Management which recorded the smallest increase but, nonetheless noteworthy of USD$718 million from USD$609 million due to higher management fees and continued positive long-term net flows in the quarter. Moreover, MS also reported March 31, 2018, an increase in its total assets under management of USD$469 billion compared with USD$421 billion a year ago.

Also, James P. Gorman, Chairman and Chief Executive Officer, stated, We delivered powerful results this quarter, with record revenues and net income – and an ROE above our target range. Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Lasco Distributors Achieve Record Profit

Posted on

Recently, we have seen an increase in the number of companies reporting record profit and sales in the history of the Jamaica Stock Exchange (JSE) and Lasco Distributors Limited (LASD) is no different. For the financial year ending March 31, 2018, LASD reported the highest net profit in the history of the company of JMD$1.004 billion. This is a 65 percent increase in profit compared to JMD$609.68 million in 2017.

 

LASD attributes its performance to successful strategies, growth in its key business categories, management of margins, cost efficiencies and proceeds from the ongoing Pfizer case. The company’s successful strategies include an expansion in the market, cost efficiencies, the development of new products and a strong management and operational team.

 

The development of new products was seen in the third quarter when the company produced an adult energy drink called Konka and a carbonate beverage called Lyrix. According to LASD, they both received favourable response from consumers. The products were manufactured by affiliate Lasco Manufacturing Limited. Additionally, during the financial year, LASD launched a healthier version of the LASCO Food Drink by reducing its sugar content by 50 percent. Its liquid beverage, iCool, sugar content was also reduced.

 

Lasco received JMD$273 million paid in damages and interest in the Pfizer case during the financial year but the company says it expects to receive more money and has since filed an appeal with the courts.

 

A total of JMD$16.3 billion was earned in revenue, an increase of 3.16 percent from the JMD$15.8 billion earned in 2017. Total assets for the year increased by 15 percent from JMD$7.4 billion in 2017 to JMD$8.5 billion in 2018.

 

The stock currently trades at JMD$4.00 on the JSE and we at SSL continue to recommend Lasco Distributors Limited to our clients.

 

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Medical Disposables and Supplies Hits $2 billion Sales Mark

Posted on

Medical Disposables and Supplies Limited, a healthcare and consumer products distributor based in Kingston, Jamaica, has reported over JMD$2 billion in revenue for the financial period ending March 31, 2018. This is the first for the company which is listed on the Junior Market of the Jamaica Stock Exchange. Medical Disposables began its operations in 1999 on a small scale and today, are able to celebrate record revenue numbers.

The company has inventory ranging from pharmaceuticals, vaccines, injectables, to beauty items. Its brands are displayed and sold in health and personal care stores islandwide.

Medical Disposables and Supplies reported an increase in revenue of 19.3 percent, up from JMD$1.71 billion in 2017 to JMD$2.05 billion in 2018. The company attributes this exceptional performance to the increase in product offerings, price increases and growth in new consumer business segment.

Gross profit, although still impressive, was affected by JMD$8.8 million worth of expired products which were written off during the financial year. Therefore, gross profit only increased by 12.4 percent to JMD$461.5 million in 2018 compared to JMD$410.7 million in 2017.

Total assets grew by 21.4 percent from JMD$1.214 billion in 2017 to JMD$1.474 billion in 2018.

The company reported that its liquidity position is still healthy and because of this it will continue to capitalize on reinvestments in order to continue developing.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend:

Did Crime Contribute to Knutsford Express Loss?

Posted on

Crime has plagued Jamaica at a higher level since the start of 2018. As a means to combat this issue, the government has implemented a State of Emergency in areas that recorded the highest murder rates, causing a ripple effect throughout the economy as different sectors were significantly affected by the crime surge and increased security presence across the island. News of the state of public emergency in St James resulted in fewer tourist arrivals, according to Jamaica Tourist Board for February 2018. While the new security detail was welcomed by residents, the current state of affairs has proven to be wrong for businesses in and around the affected parishes. Specifically, Knutsford Express [JSE: KEX], whose earnings declined for the third quarter of their fiscal year. Managing, Director Oliver Townsend, reported that this could be attributed to the lockdown that the parish of St. James has been under for the past four months. The company has been recording remarkable growth but ended with an increase of only 14% in revenue for the three-month period ending February 28, as opposed to the rise of 18% that they saw in the previous quarter.

Regardless of this decrease, Knutsford Express [JSE: KEX] has tried to mitigate any further loss in value to their share price that could be induced by decline in investor confidence, by showing significant effort in the expansion of the business through new investments.

For the quarter in question, the company reported a 24 percent increase in total assets, through the acquisition of additional buses that will take on new/ other routes across the island. They also established a depot at the Donald Sangster International Airport which added to passenger growth. Furthermore, they are set to expand their Kingston terminal to include a new entity, “Knutsford Connect”, which will provide airport transfers to have a car rental for passengers and a high-end, luxury transfer service for corporate clients.

Publicly traded companies can highly benefit from benchmarking aspects of Knutsford’s business strategy. Businesses underestimate the power of market sentiment and how it can seriously affect share value. Regardless of the loss incurred by an external factor that they have no control over, the company sought to reassure their shareholders by displaying why their confidence should not be swayed due to a reduction in revenues. Both existing and potential shareholders need to see evidence of how their capital can gain value in times to come, and Knutsford Express has shown the potential to generate massive growth in months to come, owing to their present investments.

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

 

Share it with a friend:

Ciboney Up For Grabs

Posted on

In recent news, it was announced that the Financial Sector Adjustment Company or FINSAC was interested in abandoning their interest in Ciboney Group Limited [JSE: CBNY] by the sale of their shares.

The company is currently inactive, but the line of business had included acquisition, development and rental of resort properties. However, due to debt issues, the company was forced  to sell off their assets for repayment. All but one was sold.

Ciboney currently has one piece of land on the south coast, very close to the Sandals Whitehouse resort in Negril which is now up for sale once again. It is described as beachfront property, a little over 16 acres, suitable for the construction of villas or a residential area and is valued anywhere between JMD$200- 250 Million. Investors are invited to bid for this piece of land.

Most importantly, FINSAC has majority interest in Ciboney through three other companies. They have invited interested investors to submit their offers for acquisition of its entire shareholding on April 30, 2018. If a purchaser is found and the transaction is successful, majority ownership of the company will be diverted from Finsac to the successful party within Q1 of the new financial year beginning on June 1, 2018.

This majority stake transfer can be somewhat of a good sign for Ciboney. This shifts management and decision making to another party or entity that can make positive changes for the company. It can enable the company to restore operations and allow for a 360-degree turn.

SSL is currently not bullish on CBNY; we do not recommend investors to buy. However, we must watch to see who acquires the company and what this move will do for the company’s lifespan, spare price and overall business.

The current bid and offer of CBNY are $0.12 and $0.14 respectively.

 

If you liked this article and want to read other great stories, try our Archives. Also if you are new to investing you can try our Investment Basics Blog.

If you want to start investing with SSL but don’t have the time to monitor the market or to conduct the trades yourself then you can choose one of SSL’s managed Financial Planning products. We offer a variety of products for every type of investor and if you are interested in managing online trades yourself and having complete control over your investment portfolio then you can try SSL’s Brokerage account.

Follow us on Facebook, LinkedIn and Twitter please leave us a review.

Share it with a friend: