ItsMoneyMark Newsletter #80

Sagicor Group Jamaica, Disposes of Sagicor Real Estate X Fund, Moves On

Wise Move by Sagicor Group Jamaica 

New CEOs, tend to execute their own vision, and tend to get a clean slate or path to implement their thoughts towards earnings, earnings growth. When Mr. Christopher Zacca, President & CEO, of Sagicor Group Jamaica (JSE: SJ), stepped into the drivers seat at SJ, admittedly, he had some “sins of the past” that he inherited that he and the Group, have done an admirable jump, of re-structuring and clearing, so that they don’t weigh down SJ’s earnings too much, any further and definitely not going forward. Additionally, not to spread his valuable management team, too thin either; defined as getting them, at SJ, to spend their best time, and most productive time on the right M&A, deals, and highest ROE – return on equity dealings for SJ

Besides SJ, making significant changes at Sagicor Investments over the past 12 – 24 months, and re-structuring the entity, and recently picking up two (2) deals, purchases from Alliance Group, Investments to further build Sagicor Investments book of business, now, comes the big announcement, and a welcome one!

Sagicor Real Estate X Fund, after its early, glory years in the tourism foray, it has been a drag on SJ’s earnings, impairment issues, reputational issues, and other goodwill matters. Well, if you are a SJ ordinary shareholder, you can now say good riddance, and it is expected that SJ’s should have stronger quality of earnings because of this positive move. 

Effective, September 30, 2022, SJ has disposed of all its shareholdings in Sagicor Real Estate X Fund (SREF), via a series of transactions. Additionally, in support of the decision, two of its Directors, Messrs. Christopher Zacca and Dodridge Miller, demitted office as Directors of SREF effective said date, September 30, 2022. 

Market Moves

  • Jamaica Broilers Group Limited (JSE: JBG) has discontinued its operations in Haiti, effective September 28, 2022. Unfortunately, it seemed inevitable, given the turbulence in Haiti and more so the escalation in choppiness in the jurisdiction over the past few years, politically, economically, socially, and more. 

JBG’s Board of Directors met on September 28, 2022, and accepted management’s recommendation to discontinue business in Haiti based on “conducting business in that jurisdiction has become unviable”. 

A look into JBG’s Haiti operations, the latest available quarter, JBG’s 1st quarter ended July 31, 2022, 

showed Haiti operations registering a segment result loss of J$ 48.1 million

  • Elite Diagnostic Limited (JSE: ELITE) financial rebound continues and clearly now seems complete. The company is now doing well, and ready for the next level or overdrive. 

ELITE just reported its audited year-end earnings to the JSE – Jamaica Stock Exchange. This was for the period ended June 30, 2022. Revenue grew 23% for the year end to J$ 624 million, from J$ 506.9 million. Net profit rebounded sharply to J$ 48.6 million from J$ 1.9 million, year over year or, earnings per share of J$ 14 cents. 

It is important to note, that ELITE registered this net profit number for the 2022 year end despite, “finance costs” of J$ 27 million, up from J$ 21 million in the previous year. The company should now be on a clear earnings growth path heading towards their fiscal 2023 year end and beyond. 

  • The Jamaica Stock Exchange (JSE: JSE), just had their recently concluded Board Meeting on September 29, 2022, and they appointed their Chairman and Deputy Chairman, respectively. 

The Chairman role was a re-elected post, Mr. Julian Mair of JMMB Group. The Deputy Chairman post is newly elected Mr. Steven Whittingham of GraceKennedy, GK Financial Group, GK Capital et al. 

This should continue to bode well for the JSE heading into 2023, and additionally for GK strategically as the JSE forms, and plays an even more pivotal role in Jamaica and the Caribbean, Regional Capital Markets. 

  • Main Event Entertainment Group Limited (JSE: MEEG), after its record quarter, is getting even busier and keeping the momentum going for its shareholders and even with corporate Governance moves. We like that! 

MEEG recently declared a dividend, an interim dividend of J$ 10 cents per share. To be paid October 25, 2022. 

To add to this, and to re-iterate post the huge earnings quarter, MEEG has appointed a new Director, in Ms. Katherine P.C. Harris, Attorney-at-Law effective September 27, 2022. 

  • Seprod Limited (JSE: SEP), making a major move in investor relations this week, like what we have seen by a few other companies in recent times with access to their Executives and investor briefings, example GraceKennedy, Wisynco Group, NCB Financial Group, to name a few. 

SEP has announced to the JSE – Jamaica Stock Exchange that it will be having a virtual investor briefing to be held on Thursday, October 6, 2022, at 4pm. Once concluded its Chairman, PB Scott, Director Nicholas Scott and CEO Richard Pandohie will be available to answer any questions. 

Great move by Seprod

  • Supreme Ventures Limited (JSE: SVL), the gaming and entertainment giant, keeps busy, and just does not sleep! One of the most active, if not the most, regarding corporate action items on the JSE – Jamaica Stock Exchange. 

Share price in recent times, on or around J$ 27 – J$ 28/ share. Updated trading in shares at SVL, saw between September 23 – September 26, 2022, a connected party sell approximately 4.43 million shares and a related entity purchase approximately 389k shares.

  • First Rock Real Estate Investments Limited (JSE: FIRSTROCK), continues their share buy back program. Their 3rd announcement of a purchase in recent weeks. 

FIRSTROCK advised that a total of 250,000 FIRSTROCKUSD and 80,000 FIRSTROCKJMD shares were purchased on September 23, 2022, under the Company’s share buy-back program. 

FIRSTROCK further advises as follows:

  • The price per share for FIRSTROCKUSD was US$ 0.05.
  • The price per share for FIRSTROCKJMD was between J$ 12.25 – J$ 13.50.

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