Amazon (NASDAQ: AMZN) is launching a delivery service whereby products are more readily available for faster delivery directly from sellers to customers. Sellers are said to be more inclined to use this service compared to others as Amazon sweetened the deal with low delivery costs, better logistics software and regular warehouse inspections.

This poses a challenge for competitors such as United Parcel Service Inc. (NYSE: UPS), and FedEx Corporation (NYSE: FDX), which provide similar service. However, Amazon still plans to use these delivery services as having different delivery options is better than relying on one, but Amazon will now get to decide how packages are sent rather than having the customer decide.

Initially, Amazon had announced that the delivery service was just a trial in October last year, but the company has realised that delivering packages on its own rather than depending on a third party is a more viable option and so far has seen the positive impacts it has had. Amazon will now be able to monitor deliveries right up until customers collect them. The company will also be able to save money through volume discounts, and since the delivery will be done directly from the seller’s warehouse to the customer, Amazon will no longer have to provide storage for the packages.

Amazon’s delivery service will also be beneficial to sellers as well. Amazon’s latest service, Fulfillment by Amazon (FBA), launched in 2006, allows sellers to ship their goods to Amazon warehouses for the company to process shipping when they come in. However, these sellers will be able to save money as they would not have to be paying Amazon the exorbitant storage and packing fees.

The company is finding innovative ways to increase and improve its service as they continue to expand their operation. Despite having a setback in its market price before releasing its earnings report, they are still one of the top tech stock on the market and we continue to recommend this stock to investors.

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.

MedicanJa Ltd has announced its intentions to list on the Jamaica Stock Exchange in a few weeks. At the helm of the company is Dr. Henry Lowe, a renowned Jamaican scientist who specialises in the development of edible products from Jamaican plants such as cannabis. He is optimistic that this listing will give Jamaicans at home and abroad the opportunity to earn money from their indirect involvement in medical marijuana through investments.

Lowe sees Jamaica as a future hub for medicinal plants as the island grows a majority of the world’s established medicinal plants that can be made into plant based medicinal products.

Marijuana is commercially unexploited in Jamaica. Despite extensive research conducted by the Biotech Research and Development Institute at the University of the West Indies, on its medicinal properties there seem to be very slow progress to changing the current situation. Lowe expressed that there are many possibilities for Jamaica in this area.

Lowe has been successful in making other medicinal plants into commercially accepted products. He has made quality products from bushes such as guinea hen weed, ball moss, moringa, bizzy and many other local products that have been around for many years.

The company has already received a license to operate from the Cannabis Licensing Authority and approval from the Ministry of Health to produce four topical and two oral products for sale.

MedicanJa Ltd was formed in 2013 and is a subsidiary of Eden Gardens Group. Other affiliates in the group include EG Wellness Brands, Bio Tech Research and Development Institute and FlavoCure Biotech LLC.

MedicanJa Ltd will now be a direct competitor to Lasvac, a new company formed by Lasco Manufacturing Ltd (JSE: LASM), which will also manufacture medicinal marijuana products in Jamaica.

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.

Despite the University of the West Indies looking to construct 826 additional residential units on its Mona Campus, 138 Student Living Jamaica Limited [JSE: 138SL] has requested for all plans to cease. This request was made based on the fact that there have been too many empty rooms on the new residential hall.

The rooms are said to be unoccupied because students are not able to afford them. Hall fee for single rooms is $51,350.00, and double rooms are for $29,770.00. On this hall, students enter the rooms using the elevators with entry cards. If hall fees are not paid, then the key cards are blocked, preventing students from entering.

Therefore, 138 Student Living is partnering with Sagicor Group Jamaica through an employment model, where students will be able to gain income to help pay the hall fees. 138 Student Living expects this employment opportunity to benefit about 5 percent of Jamaican students as they are hired to process excess work off-site for the companies involved. To assist students in this venture, Sagicor would upgrade internet speed for students for them to be more efficient.

Since the inception of 138 Student Living in 2014, the company has constructed 1800 rooms at UWI under two agreements, but because of the lack of occupancy, these ventures have been unprofitable. Therefore, the company aim to increase occupancy by 10% to improve profitability.

At the end of the September 2017 quarter, 138 Student Living reported a net profit of $51.7million, a 98 percent increase when compared to its previous quarter. While, the company experienced a 63 percent increase in expenses the overall financial performance was better than 2016, this stems from Gerald Lalor flats for which the company is building its brand.

Unfortunately, market sentiment need more convincing as no zero volumes were traded yesterday and the performance of the stock price has been lackluster.

Current price is JMD$6.15 with an extremely high P.E of 51.3x compared to the industry P.E of 31.0x.

While we would not recommend 138SL as a buy right now, we will be keeping an eye on it.

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.

The current economic climate in China is leaving many investors uncertain as to what market activities will take place next. At this point, there are very few who are not aware that the noticeable slowdown in their economy is a potential issue.

Analysts have suggested that the weakness in China’s economy is in part related to government policy.  The Chinese government has set itself the goal of implementing market returns, such as allowing its currency to be more responsive to market forces.

Unfortunately, we are discovering that the more reforms it tries to implement, the greater volatility there is in the market, at least for the moment. Perhaps in the long-term, their policies will prove to be beneficial in terms of redirecting economic forces in the right direction.

At present, however, it appears that moving in the direction of greater reform including attempts to move the economy from investment and export-led growth to consumption-led growth is only leading to increased volatility.

Additionally, Chinese government policy can change very quickly, and in a not particularly transparent manner. The government still has enormous resources at its disposal and could, should it so choose, implement a fiscal stimulus programme similar to that put in place in 2008. While I am not saying they will do this, it is important to remember that they could do it, should they so wish.

So, while it is reasonable to expect China to continue to be a source of market volatility, we must also bear in mind that there is a possibility, however small, that Chinese government policy may change. While the probability of this may seem slight, such a possibility existing at all suggests that on principle we should not be wholly pessimistic about China, even if the odds suggest that there will continue to be volatility associated with the Chinese economic situation.

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.

Lasco Financials (JSE: LASF) has continued to exceed expectations this financial year. In the quarter ending September 30, 2017, LASF reported doubling its profits.

We also noted in December last year that the transaction to acquire CreditScotia was completed. The acquisition will extend LASF’s reach into 13 new locations across Jamaica.

Lasco Financials released its third-quarter financials, ending December 30, 2017, revealing a $1.8 billion loan book.  LASF’s results showed a 36 percent increase in revenues when compared to the corresponding period.

Lasco Financial’s assets also grew by 98.8 percent and can be credited to acquisitions and strategic alliances. As expected, the company’s liabilities increased due to acquisitions and short-term loans.

While LASF P/E (26.06x) is higher than the market(22.5x), I believe that out of the three leading microfinance companies that LASF has the most room to grow. CreditScotia, now called Lasco Microfinance Limited, along with the collaboration with Guardian Life I expect even more impressive results.

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.

Despite announcing a decent 12% growth in revenue in the second quarter of its fiscal year, Microsoft stock price fell by more than 2% on Wednesday. Investors are not excited about this measly growth. Microsoft’s More Personal Computing Department which includes all Windows devices and gaming and advertising grew by 2%. Beating analysts estimated prediction of US$12.02 billion in revenue to close at US$12.17 billion.

Gaming revenue was up 8%, however, even with this increase Microsoft Xbox gaming console still trails behind the PlayStation gaming console from Sony.  Other segments such as Productivity and Business grew by an impressive 25% with revenue of USS$8.95 billion, above the estimated US$8.86 billion. While the Intelligent Cloud segment which consists of Azure, Windows Server and SQL Server grew by 15% to close at US$7.80 billion in revenue, still surpassing the estimate US$7.51 billion in revenue.

The cloud computing service of Microsoft, Azure, doubled in sales as businesses seem to prefer to store data and run applications in Microsoft Data Centers. Azure’s revenue was up a whopping 98%. With such a positive response from customers, Microsoft is now looking at ways to improve Azure to better compete or even to surpass the performance of their competitor Amazon. Microsoft announced that it will be adding machine learning and data analysis features to Azure. Additionally, in an effort to continue to improve its Office 365 service, Microsoft will be switching some customers to an online subscription version of programs such as Word and Excel.

Even though Microsoft’s performance this quarter may be lacking in zeal, it is important to note that the Microsoft stock price has increased by an estimated 10% since the beginning of the year and many investors still believe the stock is worth holding onto as it has been consistent over the years.

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.

With a current stock price of US$2,320.35 per unit, an 80 percent increase in 24 hours, Samsung announced a 50:1 stock split this morning. Samsung Electronics experienced a 64.3 percent increase in profits, totaling US$14.15 billion for the fourth quarter of 2017 ending December.

Seeing that the current market price is so high, a stock split would make Samsung more accessible to others who could not afford the steep stock price before. In addition to the stock split, Samsung announced a dividend price of US$20 per common share.

Analysts are suggesting that Samsung’s high stock price is partly the result of a shortage of memory chips the company experienced in 2017. This impacted supply and demand thus increasing revenue by a whopping 64 percent. There is a strong demand for Samsung’s memory chips used in smartphones and data centers.

Furthermore, Samsung is now the largest supplier of semiconductor in the world since 2017, commanding an outstanding 14.6 percent share of the market above Intel at 13.8 percent. The demand for Samsung’s semiconductor also contributed to the company’s impressive earnings last year.

On the flip side, analysts are suggesting that the success in the memory market may be short lived, as China will be increasing its memory production this year, which will decrease Samsung’s market influence. Samsung is already anticipating this decrease in their first quarterly review due March 31, 2018 due to a weak seasonal demand. This will be further compounded by the decrease in smartphone sales for the lower end models and a further decline in overall mobile business due to high marketing costs. However, with plans to launch the Galaxy S9 soon, Samsung expects its earnings to increase dramatically for 2018.

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.

With growing concerns about the healthcare costs plaguing employees, Amazon, Berkshire Hathaway and JP Morgan Chase are forming a new company to address these concerns. Though in the early stages of development, investors reacted negatively to the news. Stock prices fell for health insurers and healthcare providers significantly. 6 out of the 10 companies on the S&P 500 are healthcare providers and the news dislocated their position on that table.

Despite the lack of information on this new venture, it is reported that the health initiative will be an independent entity, free from profit incentives and limitations. The company will focus on all the employees of Amazon, Berkshire Hathaway and JP Morgan Chase in the US, an estimated 1 million. However, analysts are claiming that Amazon and JP Morgan employees should already have great health coverage. Perhaps one that is better than any other industry in the US. If this is true then questions will be asked; such as why would an employee risk a great healthcare package for an experiment? Will this venture be more cost effective? Or even will this new initiative affect employees at other companies positively or negatively?

Moreover, the companies’ expertise in the healthcare sector is questionable. Would you trust healthcare coverage from a retail company, an insurance company or even a bank over companies that have been in the healthcare business for decades?

It is nothing new for large companies to fund their own health insurance but will they take over the responsibilities of the administrative duties or will they hire a third party on contract to take care of those responsibilities? Will this be an avenue for them to test new models of payment and care delivery?

With the high cost of healthcare in the US, employees are in dire need of a better solution as employers have increased deductibles and expenses. Leaving them with less money to spend. We patiently await the details of this venture and how it will improve the lives of employees.

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.

Following consistent growth in marketing coffee for the past decade, investors are now losing faith in the performance of Starbucks. After a poor first quarter performance, the stock price fell by 4 percent last Friday. However, analysts are suggesting that the growth experienced in the Chinese market cannot offset the slow growth being experienced in the US, which is Starbucks’ largest market.

Starbucks locations in the US accounts for 70 percent of sales for the company for which comparable sales increased by a nominal 2 percent; while in China comparable sales rose by 6 percent. The lowest increase in five years for Starbucks in the US. CEO of Starbucks, Kevin Johnson, blames the lack of growth on the busy lifestyle of Americans which results in them purchasing more ready to drink beverages and coffee. Based on the demand for more ready to drink coffee, it is reported that the industry should increase by 67 percent in 5 years.

In an effort to compete, Starbucks is planning to expand the company by introducing more Roastery shops. In addition, the company plans to implement cashless stores when it begins to accept mobile payment from customers. In an attempt to expand its customer base, Starbucks is partnering with Chase and Visa by using branded reward cards, giving customers the chance to earn loyalty points when they shop at other stores.

Furthermore, with the introduction of new products, Starbucks is hoping that they can strategically increase sales in the US market. The company, this month, started selling a second type of espresso roast called Blonde Espresso and has begun the sale of nitro cold brew,  various fresh foods, bottled drinks and craft coffee.

Is this reason enough to improve your faith in Starbucks?

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.

On Monday, Amazon opened its first cashierless store on the ground floor of its Seattle headquarters. The store, which is called Amazon Go, is more of a convenience type grocery store. It sells products such as milk, potato chips, liquor, ready to eat lunch and breakfast items as well. Amazon Go is very convenient for shoppers who like to avoid long cashier and checkout lines.

But how does it work? Before entering the store, shoppers are required to scan their Amazon Go smartphone app at a turnstile and also check in with their Amazon Prime account which has credit card information.  Once an item is removed from the shelve it will be detected by cameras from above as well as weight sensors that sense exactly what is being removed from the shelve. Amazon will also be utilizing computer vision and machine learning algorithms in the one of a kind store. Each shopper will be gifted with a virtual cart. Each item removed from the shelf will be place in that cart. Once an item is replaced, it will be removed from the virtual cart. Shoppers who leave the store with items in their virtual cart will be charged from their credit card.

The store however, is not without employees. Employees will be there to check identification cards of shoppers who purchase liquor. Additionally, staff has to be there to prepare the meals and assist shoppers who need assistance. Even so, one may ask, wouldn’t it be easy to shoplift from a store that does not have a cashier?

Persons seem to think that the Amazon Go system is so robust that it would be hard to shoplift. For one, being that each shopper has to check in with the Amazon prime account would make it difficult. However, Amazon did report that for families to enter, one person in the group can check in everyone. Even though the weight sensor would recognize that an item was removed from a shelf, how would it charge someone who did not scan the app to enter or even enter a Prime account? Yes, the cameras can pick up persons removing items but what about persons who are of the same body type and size, especially children?  Nonetheless, it’s still left to see who would be brave enough to shoplift from such a highly technologized store without being caught.

This is just another stepping stone for Amazon in the retail industry as it makes its presence more felt offline.

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.

The National Commercial Bank, NCB, recently announced that it will now be providing residential mortgages to its customers. NCB is now offering a promotional mortgage rate of 7.99 percent with a reduction in commitment fees as high as 50 percent. Described as Jamaica’s largest bank, NCB has become the seventh financial institution in the island to participate in the Joint Finance Mortgage Programme by The National Housing Trust (NHT).

According to The Planning Institute of Jamaica (PIOJ), fewer persons have been receiving mortgages from financial institutions. The PIOJ reported that the number of mortgages approved have decreased by 4.2 percent for the period ending June 2017 to 2,013 mortgages. This caused the total value of mortgages to decrease by 10.6 percent to JMD$9.2 billion.

The Joint Finance Mortgage Programme provides additional financial support to persons who may need further assistance other than what is given to them by the NHT. The borrower has to pay the lending financial institution at its own interest rate and the NHT at a separate interest rate. The repayment is however, done at the financial institution. It is important to note that the NHT lends money to purchase houses at an interest rate as low as zero to six percent.

This new venture for NCB began in July of 2017 but was just made public. Another strategy by NCB to grow its customer base as it continues to rake in profits and continues its exceptional performance on the Jamaica Stock Exchange Market. NCB currently trades at $99.77 on the JSE.

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.

With a 93 percent gain in stock price for 2017, it is clear that business for Alibaba has been booming. This exceptional growth has made investors curious as to whether or not the stock price can grow any further.

It is reported that the retail business in China accounts for an estimated $5 trillion in revenue yearly with only 15 percent of that total representing online transactions. With no well-defined lines between shopping online and offline, Alibaba should be able to continue experiencing exceptional growth for years to come. Alibaba, the Chinese e-commerce giant, experienced a 60.7 percent growth rate for the quarter ending September 2017 with an $8.29 billion in revenue.

However, it is said that even though businesses experience impressive growth rates, once the company begins to expand the growth slows. However, that is the opposite with Alibaba.

Alibaba is able to sustain its exceptional growth based on the performance of the different segments of the business. Segments such as Digital Media and Entertainment grew by 33 percent for the third 2017 quarter. Revenue from the Core Commerce segment grew 63 percent, cloud computing increased by a whopping 99 percent and innovative schemes increased by 27 percent. Additionally, operating margins was 30 percent of revenue.

Many investors would argue that Alibaba’s stock price is unreasonably high; currently at US$198.33, a little below the fair value of $200. However, based on the company’s performance which has been consistently exceptional, it is clear the stock has more growth to experience. Despite the legal, regulatory and other potential or even obvious risks in China, the uncertainty that surrounds businesses such as Alibaba, is high. But investors will be watching to see the impact these factors will have on the company while reaping the profits from the growing stock price.

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.