ItsMoneyMark Newsletter #89

ItsMoneyMark “New Year Message”

Here’s to a Big 2023!

Happy New Year from the team at ItsMoneyMark Media and we thank you for your support throughout 2022, and we are looking forward to continuing to serve you and provide you with the best possible financial literacy improvements, and financial markets news in 2023. We pride ourselves in “keeping it simple” and we thank you for your feedback in 2022. It makes us better and inspires us at ItsMoneyMark Media

As we kick-off another year, and embark on 2023, you will receive a ton of thoughts around, New Year resolutions, advice, things to do, and ways to improve yourself. Remember, the key is to start, be disciplined, stick to quality and be consistent when it comes to investing

Do not get caught up in the new top 10s for 2023, or the Hot 10s for 2023s, or the future winners. These items will escalate as the week gets going and the month of January 2023, and you will probably feel bombarded even if you are a seasoned investor. 

Another thought or query, you may see frequently, is which is the best “asset class” to go with, whether (i) real estate, (ii) stocks, (iii) bonds, (iv) hold cash, and so forth. Again, be weary of these flyers, ads, advertorials, quick sector picks, just like the stock winners. 

Of course, always re-evaluate your situation, your portfolio, and ensure you do, what makes you and “your gut” comfortable. Focus on as we re-iterate this message for 2023, quality and consistency, and what is working for you. 

The year 2023, could well be the year, whereby the “tide goes out”, it is overdue after all. Ensure if it happens, you are prepared, you can manage it, you can withstand it, and you focus on excellence and have some liquidity, cash at hand. If things get crazy, and 2023 becomes a bit like a ship without a rudder, you want to safeguard, you not only get through it, but that you have liquidity available for opportunities that will arise. 

Here’s to a Big 2023!

Market Moves

  • Barita Investments Limited (JSE: BIL) continues to supercharge and adds a dynamo in the name, of Mr. Damion Brown, formerly of JMMB as their Group CIO. 

Per an excerpt of BIL’s release to the JSE: 

“Mr. Damion Brown has been appointed Chief Investment Strategist and CEO, Real Estate and Alternative Investments at Cornerstone United Holdings Jamaica Limited, an affiliate of Barita, effective November 28, 2022. In this role, Damion will assume responsibility for the executive oversight of the strategic development, management, and execution of the alternative investments mandate of the Cornerstone Group.”

Barita is taking their succession planning very seriously and continuing to strengthen their team is the message. As the adage goes, people make or break you, and Barita over the past five (5) or so years, has materially been investing in its people, and recruiting some of the best that the industry has to offer. 

In the words of Peter Drucker, “the best way to predict the future is to create it.” Barita has been doing this, and with this corporate action announcement, they continue to lead. 

Barita closed recently at the J$ 101 to J$102 price range with a market cap of J$ 123.6 billion. 

  • Cargo Handlers Limited (JSE: CHL) had a huge year end and their earnings and cash build up continued to roll!!! 

CHL earnings were 79% higher for the year ended September 30, 2022, audited financial statements, year over year. Operating revenue hit J$ 472.3 million, improving from J$ 337.3 million, increasing by 40%. Net profit was J$ 289.1 million and earnings per share registered was J$ 77 cents for the year-end. 

Important to note, is short-term deposits and cash & cash equivalents hit a “whopping” total of approximately J$ 508 million at the year-end. This gives CHL, even more ammunition to do more deals, M&A if it chooses to do so as the Company has been on a tear in recent years picking up deal after deal whether taking over a business, subsidiary, or an associate stake. 

CHL has the cash to do even more in 2023 if they elect to do so. In the interim the interest income is doing well for shareholders, per CHL’s financial footnotes, with their cash pre-dominantly in US$ and receiving an interest rate of around 5% p.a. 

  • Victoria Mutual Investments Limited (JSE: VMIL) clearly signalling their intentions for 2023 with the announcement of upping their stake in KPREIT to 23% making it now, an associate of VMIL

VMIL made the announcement, effective on December 30, 2022, so moving forward on a quarterly and annual basis, this share of profit of associate should make its contribution to VMIL right away in 2023 accordingly. 

Per VMIL’s announcement to the JSE – Jamaica Stock Exchange, VMIL invested further consideration of J$ 1.05 billion to get there. 

  • Our very own JSE – Jamaica Stock Exchange, we always must recall and put it out there, yes, the JSE itself is publicly traded. Therefore, if it is your dig, you can actually invest in shares in the JSE itself. 

A Director purchased 79,099 shares of the JSE between December 28 – 30, 2022 to close off the year strong. This is a good look as from our recollection we have not seen much “company insider” action especially on the “buy side” when it has come to the JSE

  • Palace Amusement Company (1921) Limited (JSE: PAL) is keeping the market a buzz with its corporate action items of late. 

Increase in share capital and stock split are the latest to be announced and approved to date. It is a big stock split which of course has created much excitement in the market and well needed excitement for PAL

The number for the stock split, 600 to 1. Wow! One of the biggest we have seen announced on the JSE Market at ItsMoneyMark

Bottom line is it happens close of business February 28, 2023. If you are a PAL existing shareholder or considering PAL, do not think that this is the end folks. PAL clearly has more corporate action items in store for shareholders this Year!

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