ItsMoneyMark Newsletter #9

Hi Everyone! It’s the first newsletter for 2021! 
Well, the extension to the Sygnus APO did not disappoint. While a few or many market pundits were alarmed and some concerned, Sygnus came out of the Caymanas Gates strong on any given Saturday! They came out Sagicor Strong – o use one of the popular financial market phrases and recent campaigns as many firms are using the phrase “Strong” in today’s Markets. 

So, what happened with Sygnus? 

We are talking about, not only did they clear the hurdle and close, but the Basis of Allotment was released and BOOM, the Sygnus Team, was 50% + oversubscribed, or 54% to be exact. Not exactly the same as upsizing the “drink and fries” at Burger King or another QSR, but we are talking about a nice extra chink of US$ to invest here, especially if local markets get more distressed in the current to June 2021 period or H1 2021. 

It should also provide that additional or extra fuel to restructure any existing portfolio Company issues, assist any existing portfolio investments that may be in arrears, or add gas to any hyper-growing existing portfolio investments as well. 

Mayberry Public Advisory

A recent and intriguing post from Mayberry. They have never been one to back down from a good fight in the bar in recent times, or a stock market squabble, but it would seem they got a slap on the wrist given the outturn of their “Headline” in their social media post, Public Advisory

Time will Tell, but in any case, the competition of the investment banks is heating up and we seem to have an exciting Year in 2021 ahead. The consumers are already benefiting. 

Its seems to be reminiscent of Salomon Brothers and Drexel Burnham. 

The Significant Five (5) – JSE 2021

We always remind anyone that just don’t buy a stock because “Hey, it’s January or a New Year so I should do this”. A stock or a share is not like buying a chicken, yogurt, vegetables or food that you have to live on… Whether the Chicken is ABC or XYZ (price), it will be bought… However, don’t treat your stock portfolio or experience in the markets like this. Even if the APO market is the new IPO market. Also, if the valuations just aren’t there locally, reminder, we are in a global world now. 

This is one of the many reasons why ZOOM Communications has done so well, and of course the Pandemic. So, don’t force yourself to buy or purchase if you don’t see value. 

With that said, it is just tough, tough as nails, to want to be a buyer at some of the valuations especially with a lot of earnings depressed or even knocked down 30% – 50% given COVID-19 in Jamaica. Some of the P/Es are simply just better in the U.S. in some cases. 

However, everyone asks, if you had to, if you just had to, whats a model buyer looking at, for 2021: 

(1) Mailpac; made a killer move in the past week, but we’re sticking with, should have a MONSTER December Quarter, 

(2) NCB Financial Group; has made a big pullback, just always watch them, they make it back, they are the JSE sleeper year in and year out, you typically jump in on the dip. We think they get Guardian/ NCB Insurance to POP in 2021,

(3) GraceKennedy; everyone and their Grandmother is starting to talk about this Company suddenly… seems to be a case of FOMO here and this alone could get the stock moving in 2021 plus the earnings… Mayberry, Jamaica’s most respected investment bank and stockbroker also just put out a BIG PLUS research report on them and therefore expect major bucks to come behind GK now and onward… 

(4) Derrimon;the acquisitions and getting this huge amount of capital and reduction of finance expenses and all of this during COVID, and having all of this underwritten, just is to good to pass up right now… and we just feel like there is more on the way in 2021 for them… 

(5) Proven; latest acquisition in Barbados and we feel there is more to come. Although they are not as popular in the market as their peers, they are just too undervalued as compared to Barita market cap, to leave out of this list right now. 

We are watching KREMI/ Caribbean Cream, P/E is a bit rich, but the product is definitely in COVID-19 as a comfort food like many peers.

Happy investing and Happy markets.

Enjoy the It’s Money Experience. 

Until Next Week!

These opinions and thoughts are solely of ItsMoneyMark and does not constitute investment advice.
Ensure to always speak to a Licensed Financial Advisor.

Thank you for reading!

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