ItsMoneyMark Newsletter #85

Pan Jamaica Group on its Way!

Now this is our big money time segment & commentary on Jamaica Producers (JSE: JP) & PanJam Investment (JSE: PANJAM). The deal of deals, the Holyfield!

The releases by each company are great, and no doubt this is Huge, Massive, there isn’t even a financial word for it, but as we review it and digest it, we need more disclosure from both companies and that will take some time. The number one question from investors, will be (i) What does it mean, and let’s just add to this, (ii) which company should I buy into in 2023?

We are going to reserve comment on it, until then, and until the deal information gets out there. 

We understand at ItsMoneyMark that practically it may be reserved until regulatory approval occurs or other matters. 

Therefore, patience is the name of the game here. 

Bank of Jamaica increases Policy Rate to 7.00%

Well, it was expected, and the rhetoric may change in Markets, that we are closer to 10%, than to 5%, even if we are not yet, but “trending up is happening, and the perception is rates are moving higher not only in Jamaica, but globally, especially the U.S. too.” 

The Central Bank, BoJ, raised the policy rate on Friday, November 18, 2022, to 7.00%, effective November 21, 2022. 

Next key date on the agenda is, December 20, 2022. 

Regency Petroleum Limited, IPO is Here!

Led by lead broker, GK Capital, part of the GraceKennedy Group, Regency Petroleum is heading to the market. 

Clearly further evidence that petroleum, energy, energy security is “hot” and “trending” in markets. Earlier this week, in U.S. markets, many U.S. analysts and notable investment banks, further bolstered and upgraded their recommendations on companies such as BP, Chevron, etc. 

Few quick details: Offer opens, November 24, 2022, and closes December 8, 2022

Financial quick details: 287,157,354 ordinary shares at J$ 1.00/ share 

To the general public: 115,196,354 ordinary shares 

Market Moves:

  • Dolla Financial Services Limited (JSE: DOLLA) see major trading in shares by “Directors” gobbling up 20 million shares on November 17, 2022, material move. 

Talk about confidence in the listed entity of DOLLA by its Directors. This represents 0.80% of DOLLA’s issued share capital (20 MM shares / 2.5 B shares). 

DOLLA’s market cap, approximately J$ 8 billion. 

  • The Limners & Bards Limited (JSE: LAB) on the move, with some corporate movements, or changes. 

The LAB tends to very stable, or few, if any corporate action announcements on the JSE – Jamaica Stock Exchange level when it comes to Senior Management roles. The LAB announced, two (2) moves in the past week as follows: 

  • Appointment of Chief Strategy Officer: Mrs. Nadia Kiffin Green to the role effective October 18, 2022. 
  • Chief Financial Officer (“CFO”): Mrs. Marlene McIntosh has relinquished her role effective November 30, 2022. 

Interestingly, we are seeing a trend with this role of “Chief Strategy Officer”, an uptick of this job title, at several publicly traded companies on the JSE in recent times. 

The LAB’s market cap, approximately J$ 2.5 billion. 

  • AMG Packaging & Paper Company Limited (JSE: AMG) with the year-end, back in a big way! AMG signalled this clearly before a few quarters ago, and they kept the momentum going with the running quarters after. The clear and glowing results are now showing in their year-end numbers. 

We had mentioned in a previous ItsMoneyMark newsletter, that several Juniors (JSE Junior Market), had gone through similar earnings downturn cycles due to a variety of issues, and always come back, and rebounded. We had spoke to Paramount Trading, Caribbean Cream, and a few others as examples. Well, we can officially add AMG to the list, as they are back. 

By the numbers, AMG registered, for the audited year-end August 31, 2022:

  • Revenue of J$ 995 million versus J$ 705.9 million, + 41%
  • Net profit of J$ 104.9 million versus J$ 60.5 million, + 73%
  • Total Equity was J$ 1.18 billion 

AMG’s earnings per share registered for the year-end August 31, 2022, was J$ 21 cents. 

  • Seprod Limited (JSE: SEP) for its 3rd Quarter, ended September 30, 2022, more than doubles revenue, year over year, and earnings surged by 57%. 

This quarter is showing the real numbers, and the size, of A.S. Bryden Holdings & Sons, based on this uplift in revenue & earnings. When the IPO – Initial Public Offering for A.S. Bryden happens, it should yield even more potential upside for SEP shareholders. 

Revenue for SEP for the quarter was, J$ 23.6 billion, versus J$ 11.3 billion, an increase of 109%. Net profit hit J$ 1.05 billion with EPS – Earnings per share at J$ 1.05, improving from J$ 0.67, year over year. 

Bottom line and the takeaway, look forward to the future, potential growth, and efficiencies to come from Seprod, and Bryden Group moving forward. 

  • Jetcon Corporation Limited (JSE: JETCON), continues to rebound nicely, with revenue improving to J$ 300.9 million, from J$ 196.4 million, year over year, for the 3rd Quarter, by 53%. 

JETCON’s net profit hit J$ 11.6 million for the quarter, versus J$ 5.7 million, in the previous year, more than doubling, even though coming from a low profit figure. From a review of the balance sheet, JETCON, has adequate inventory for its operations, and this is a good sign, with JETCON’s inventories as of September 30, 2022, closing the period at J$ 470 million. 

Despite the improvement in the quarter, JETCON still trades, close (now at or around J$ 1.07) to its 52-week low (J$ 80 cents), and maintains one of the lower market caps, at approximately J$ 620 million on the Market. 

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