ItsMoneyMark Newsletter #66

Supreme Ventures Limited, on the Move Again, Appoints Chief Innovation Officer, for 

Supreme Ventures Fintech Limited 

This is the job title quite a lot of companies, private companies, and listed companies are adopting in recent times. It doesn’t replace the title of CEO – Chief Executive Officer, but companies are appointing a Chief Innovation Officer with the same level of clout, terms of reference, powers, as a CEO. We are especially seeing the use of the term CIO – Chief Innovation Officer, in publicly listed companies on the JSE – Jamaica Stock Exchange that are focusing on being disruptive sectors, e.g., technology, fintech, ed-tech, etc. Another critical point is when and if you read CIO, always ask, what it means, as these acronyms can quickly get confusing. Let’s jot down some of the meanings of CIO, especially with this new one adding new meaning: 

  • CIO Chief Investment Officer
  • CIO Chief Information Officer
  • CIO Chief Innovation Officer

At ItsMoneyMark, we guess sooner than later, we can add to the list, CIO – Chief Intelligent Officer. Let’s see, LOL. 

Moving onto Supreme Ventures Limited (JSE: SVL) and to the met of the matter… So, SVL is giving this Fintech Head, and role another run for its money, and in a recent announcement has appointed, Mr. Delroy Anderson, as the “Chief Innovation Officer” of Supreme Ventures Fintech Limited. The Company is a wholly owned subsidiary of SVL, and the appointment of Mr. Anderson was effective on June 1, 2022. 

On the face of it, we like the move and the investment that SVL continues to make. There is not a lot of information released yet in terms of exactly SVL’s plans are with technology and specifically around Fintech, but it is the way of the future, and therefore at ItsMoneyMark we re-iterate we like the move. Its not an easy sector or sub-sector or business to get right in Jamaica or the Caribbean with all the “re-tape” and the regulatory environment, but if anyone could get it going, Team SVL/ Mayberry related, has a great shot based on their track record. Mr. Anderson comes with a stellar track record and is coming with a load of experience and from Digicel, therefore, they are now trying with an individual with telecom, data experience, previously the previous Head, had finance, investment banking experience. 

What we do know is, clearly, SVL is investing for the future, and we like that, although we are not exactly sure, we do not believe the Fintech at this stage is a “monster spend/ capex” and the Executive Chairman, Mr. Gary Peart did reveal some “golden nuggets of info” that SVL is really a transactional platform. 

That is, using this data, to add value to SVL and its shareholders long-term across existing and add-on products long-term, and its developing products, such as EVOLVE that is more of an AI – artificial intelligence lending or micro-lending product versus the traditional brick & mortar micro-lender or lender in the market. This, is exciting, as probably just one piece of the puzzle of SVL’s future Fintech space… 

Market Moves

  • Scotia Group Jamaica Limited (JSE: SGJ) met this week to consider a dividend and it was a good one. SGJ’s board of directors met on June 8, 2022 and declared a dividend of J$ 35 cents per share, payable on July 20, 2022. SGJ typically pays quarterly dividends and if one annualized this, the approximate dividend yield derived is about 3.9%, using the share price on or around J$ 36/ share. To note SGJ’s 52-week high is J$ 43/ share. 

Scotia Group Jamaica largely viewed as one of the bellwethers of the JSE – Jamaica Stock Exchange Market, like Carreras, GraceKennedy and a handful of others, dividend yield still lags Carreras at 9%, if you are seeking dividend/ income returns. However, from a strictly “financial sector” component standpoint on the JSE, Scotia Group Jamaica is at the top for income producers, if this is your objective. 

At ItsMoneyMark, we would still like to see SGJ, focus, clarify and even have an investor briefing if they deem fit, to benefit minority shareholders/ analysts as follows: 

  1. What’s SGJ’s medium to long-term plan for Jamaica? Are they definitively interested in growth? 

(b)  The northern market SGJ speaks to in its reports whereby SGJ Executives cover, example, Bahamas, Turk & Caicos, etc. are these only cost centres for SGJ shareholders or are the profits benefitting SGJ shareholders? 

– If not, does SGJ benefit from any management fees or profit share or any financial arrangement? 

Our opinion, at ItsMoneyMark regarding Scotia Group Jamaica, being the leading standard bearer on corporate governance in Jamaica, and a major practice that the company promotes in its annual filings and annual report with the JSE, these are some disclosures and areas that SGJ should strive to address and report transparently on. 

  • VM Group has been making more than just moves in 2021/ 2022. Clearly, it did not happen by just chance. From their re-branding, and how seamless that has gone, the uptick of their investment and related investment arms, and the number of positive corporate social responsibility exercises that the organization has executed in recent times. 

Over the past few months, less than approximately three (3) months, VM Group’s, VM Investments (JSE: VMIL) & VM Wealth have done something that would have seemed impossible to a market analyst who knew VM Group a few years ago. VM Investments orchestrated & executed several investment banking deals and with each one being a totally different type. VMIL announced and executed successfully, (a) an Initial Public Offering – IPO for Dolla Financial Services that smashed not just JSE junior market records but JSE market records overall per many media reports to date, (b) an Additional Public Offering – APO for KPREIT, (c) acted as broker for the take-over of SSL Venture Capital Jamaica and lastly but not least, (d) made a private equity investment in Home Choice Enterprise Limited, a leading food manufacturer & distributor of peppered shrimps, sauces, beverages, etc. 

What a time to be VM GroupVMIL

This is the sort of stuff or streak that we grew accustomed to only see from Mayberry Investments Limited in the market. With the growth Jamaica has seen and the JSE total ordinary listings altogether fast approaching 100 any month now and set to fly past this, there is more than enough market share out there to make this type of splash, or announcement to the market and to continue by VMIL

VMIL is currently trading more or less exactly at its mid-point between its 52-week low & high. Although investment banking and private equity fees, gains, take time to grow materially to the bottom line, watch VMIL moving forward.

  • Wigton Windfarm Limited (JSE: WIG) has requested an extension for its audited financial statements and annual report. For the audited financial statements, this is regarding the year end March 31, 2022. 

WIG did not give a deadline specifically to file by, or on or before by, but states they will take full advantage of the JSE – Jamaica Stock Exchange extension. 

With all the deals that WIG announced earlier this year that propelled the share price to J$ 77 cents in March 2022, from a low J$ 50 cents per share region to start 2022, it has clearly blown over as WIG’s share price has retraced and settled back at currently J$ 55 cents. If you are a long-term shareholder and believe in WIG, Mr. Market is evidently clear with its attitude towards WIG. Existing ordinary shareholders and potential investors on the sideline want to see WIG

– Announce, do more deals, and ones that are “material” to their balance sheet & income statement. 

– Observe if these already announced deals actually “move the needle” or WIG’s bottom line. 

Either way, Wigton Windfarm Limited has its work cut out in 2022/ 2023 and beyond to improve its shareholder value, market cap. 

  • Sygnus Credit Investments Limited (JSE: SCI) released their 3rd Quarter and year to date, 9 months unaudited financial results. 

SCI continues to gain market share and grow in Jamaica, the Caribbean and now Puerto Rico. For the quarter ended March 31, 2022, SCI hit US$ 101.1 million in investment in portfolio companies versus US$ 73.5 million as of March 31, 2021. If the recent deal in Puerto Rico is included, then this number increases to US$ 124.7 million, as the investment in “Puerto Rico credit fund” is US$ 23.5 million. 

  • Carnival Corporation Inc (US: CCL) & Royal Caribbean Cruises Ltd (US: RCL) are back within striking distance of their respective 52-week lows. 

It would be an understatement to say it has been a bad few years for shareholders of the cruise liners, besides potential short-term traders who may have enjoyed the rollercoaster ride in the share price. 

CCL’s current market cap is approximately US$ 14.16 billion & RCL’s current market cap is US$ 12.92 billion. The new fear has been driven by CDC – The U.S. Centres for Disease Control as they have re-issued a travel warning, level 3 for popular Caribbean cruise destinations such as Anguilla, Turks & Caicos and even Jamaica. Level 3 is defined as a high-risk level category. 

CCL and RCL’s share price respectively are US$ 12 price range & US$ 50 price range to go along with their market caps. At current trading levels, they are presently within 5% or less of their 52-week low. 

Of course, there are better sectors, safer ones, and better plays out there, but it is worth watching “CCL and RCL closely when they get as beaten up as this in the markets.”

%d bloggers like this: