ItsMoneyMark Newsletter #90

Mayberry Investments Fire Power Loading, What’s the Plan? 
Talk about more fire power for MIL – Mayberry. They already were on fire with investments in Supreme Ventures (JSE: SVL) and Caribbean Producers (JSE: CPJ).

The oversubscribed, 2 tranches (there are 4 tranches in total in the offer) closed already for the Mayberry Bond IPO #BondBerry giving them even more horse power to be a dominant financial player, deal maker in the Jamaican Market for 2023, and for the outlook of 2023 to 2025. We can go even further in our mind and say 2027. 

The Mayberry Bond IPO was slated for J$ 5 Billion Big Ones, and it has already been upsized to J$ 7 Billion Big Ones! 

The outcome, anyway you slice, dice it, Big Money time for Mayberry as 2023 gets underway. 

Our gut feel, at ItsMoneyMark, besides (i) the margin lending play, a net spread play, (ii) any SME deals, (iii) look for Mayberry similar to SVL and/or CPJ to buy into or do another “whale of a deal this year or soon.” 

Ciboney Group still Here? Still Listed?

Ciboney Group (JSE: CBNY) has reported another set of interim results and yes they are not as bad year over year comparatively for the period under review (net loss is almost halved), but CBNY still reported a loss and burnt through cash which it is not generating positively. 

6 months YTD net loss of J$ 1.48 million versus net loss of J$ 2.53 million, year over year. 

Even though the losses are “small” it continues to erode the balance sheet and place the balance sheet into deficit. It begs the question to the Directors, why not just de-list or accept any offer out there if there is actually an offer out there to purchase the listed entity of CBNY as long as it can cover any small loans they have been financing the entity with. We assume these would have been for the JSE/ JCSD listing fees with and any other fees to keep it listed and move on? 

Why continue to erode the minority shareholder value as Directors of CBNY

Market Moves:

  • EduFocal Limited (JSE: LEARN) is on the move and it’s a good look! Remember don’t just look at a Company by a quarter but by at a minimum of a year and also factor in its outlook too. In the Company’s release to the JSE, LEARN clearly states that they are committed to regional expansion. They head off to Guyana with delegation from Jamaica led by the influential and powerful Minister of Industry, Investment and Commerce,  Senator The Honourable Aubyn Hill, to explore business opportunities in the country. These movements to our understanding are not the first and have gotten underway in 2022, and have created incredible potential upside for Jamaican businesses, SMEs, public relations, investor relations, opportunities for them. Clearly, there are huge synergies and opportunities available between Jamaica and Guyana. 
  • Knutsford Express Limited (JSE: KEX), sees not only a huge rebound in its 2nd Quarter but a booming 2nd Quarter in its financial results. KEX reported near to J$ 400 million (J$ 397.9 million) in operating revenue for the quarter, up from J$ 240.6 million (year over year) and approximately J$ 59 million in net profit for the quarter, equating to an extremely healthy net margin of 14.75%. KEX’s earnings per share, EPS for the quarter was J$ 12 cents. KEX has significantly rebounded not only post Covid but also since discontinuing it’s venture into U.S. operations which was making material losses and dragging the P&L. Total assets ended the the quarter, November 30, 2022, at a whopping J$ 1.55 billion. 
  • JFP Limited (JSE: JFP) has announced to the Jamaica Stock Exchange – JSE, a number of company insider trades to the market. Approximately 3-4 corprate announcements involving Directors, Connected Parties, etc. The trades occurred in December 2022 across the board, and some are equal or almost equal on the buy/ sell side changing hands in their announcements but all in all they carry material volumes. We outline some of the trades below to give a picture: 

A. JFP Limited advised that on December 21, 2022 a director sold 12,462,766 and a connected party purchased 12,500,000 shares. 

B. JFP Limited advised that on December 23, 2022 a director sold 11,203,681 shares and a connected party purchased 11,270,000 shares. 

C. JFP Limited advised that one of its directors sold 25,000,000 shares and another purchased 25,000,000 on December 12, 2022. 

  • First Rock Real Estate Investments Limited (JSE: FIRSTROCK) keeps pushing and further expands into Grand Cayman. This new investment gives FIRSTROCK further geographic diversification across their investment portfolio in real estate across the region. The deal FIRSTROCK just announced sees them, acquiring an interest of US$ 1.35 MM in Kailani (Hilton) Cayman, from NCB Group Cayman. 
  • Image Plus Consultants Limited – IPO Basis of Allotment is out and it’s makes for interesting observations in terms of the % outcome. Most of the recent Junior Market IPOs, and actually for sometime have been yielding % around 1% to 5% “of the balance of the amount applied for.” For Image Plus Consultants Limited, better known as “Apex Radiology”, the most important pool, the general public pool, here were the stats, outcome or the allotment: The pool was over-subscribed and all applicants will be allotted the first 10,000 New Shares applied for and 35.68% of the balance of the amount applied for.Based on commentary on digital channels, and by analysts the broader market is digesting this basis of allotment for sure, and what it means for potential Junior IPOs to come. 
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