ItsMoneyMark Newsletter #94

NCB Financial Group Limited: Hits J$ 75/ share 

Whenever you think you have seen it all, there is always just a little more to potentially come. This recent quarter from NCB Financial Group Limited caught us for one, off-guard. Well, at times, or in their cycles, that is NCB Financial Group Limited (JSE: NCB FG) for you as we embark 2023 and get into stride. 

We are still going to stick by them as one of the long-term winners as we called them before in an ItsMoneyMark Newsletter. We are not giving up on NCB FG just yet, although many will be jumping off the ship, due to, (i) lack of dividends, (ii) the recent quarterly earnings collapse, and (iii) as always other potential reasons when it comes to a stock, etc. 

We had mentioned before, NCB FG could hit 1/3 of its all-time high as it gets it act together and gets rolling again. So, anything around J$ 83 was a good look. We even said, look even within a 10% band, seems like something special over the long-haul if you can be patient. 

We are now around 10% below that mid-80 price level, and the energy, vibe, gut feeling of that time NCB FG, went from roughly J$ 36 to J$ 12 (on or around that timeline of the 2008/2009 financial crisis and ensuing years) and so forth, is creeping back even more into our memory cells seeing J$ 75.

Similar to way back then, the bounce back of NCB FG, was not immediate and do not expect it to immediate this time either, but there is even more value in NCB FG at J$ 75, as the market cap of NCB FG potentially even re-approaches US$ 1 billion. 

Market Moves:

  • FosRich Company Limited (JSE: FosRich) announces another “big money time” partnership for its in demand Solar Power Systems and Solar Water Heaters business. 

Right before this, the partnership announced was with Dolla Financial Services Limited (JSE: DOLLA) and this time around it is with Access Financial Services Limited (JSE: AFS). FosRich, goes on to state in their corporate release to the JSE, dated February 6, 2023, that the partnership will allow up to 100% financing for their solar products. 

Although, all parties are a winner here, that is two (2) of Jamaica’s leading micro-credit companies, the real winner, winner, winner, chicken dinner, is FosRich Company Limited. FosRich, should as a result, get to move its inventory in these areas much faster once, the financing partnerships are seamless and easy for customers to process.

FosRich’s market cap, around J$ 17.8 billion, that is over US$ 100 million. 

  • VM Investments Limited (JSE: VMIL) keeps powering up, per our previous newsletters and our thoughts around VMIL. In their latest release to the JSE, Jamaica Stock Exchange, VMIL, keeps investing in its “people” and makes another valuable addition to their team, in recent weeks. 

Headlined management change at, “Victoria Mutual Investments Limited & Victoria Mutual Wealth Management Limited.” The news clip reads as follows from VMIL:

“Effective February 1, 2023, Chrevaughn Legister assumed the role of ManagerAsset Management at Victoria Mutual Wealth Management Limited (VMWM). He will work closely with Evette Bryan, Assistant Vice President, Treasury and Asset Management and Brian Frazer, Deputy Chief Executive Officer – Victoria Mutual Investments Ltd (VMIL) and VMWM in providing oversight of the business’ Asset Management Unit.”

VMIL, continues to trade from a valuation perspective, quite low as compared to its peers, as its earnings are a work in progress. Once it figures out its earnings (net profit) consistently, VMIL will become at interesting candidate on the JSE as it should. 

  • First Rock Real Estate Investments Limited (JSE: FIRSTROCK) keeps on the move with its continued share buyback programme. The Company recently announced the following to the JSE: 

“A total of 400,000 FIRSTROCKUSD shares were purchased on January 26, 2023, and 400,000 FIRSTROCKJMD shares were purchased on January 26, 2023, under the Company’s share buy-back program.”

Additionally, the FIRSTROCKUSD shares were purchased between US$ 0.0744 to US$ 0.0779 per share, and the FIRSTROCKJMD shares were purchased between J$ 12.55 to J$ 14.98 per share. 

  • Wigton Windfarm Limited (JSE: WIG) advises of its next bold move. Reminder, WIG has been slowly but surely changing or pivoting some shapes, forms of its business model, and had previously appointed well known financial advisor, Mayberry Investments Limited. 

Without a doubt, we are seeing a different WIG, since, Mayberry Investments Limited has been advising the Company, Wigton Windfarm Limited. 

In this latest move, WIG has announced that, the Company has entered into an Agreement for Sale for the purchase of land at Lot 28 Ferry Pen in the parish of Saint Andrew at a cost of One Million, Five Hundred and Fifty thousand U.S. Dollars. 

The release does not state the purpose or the strategy of the purchase by WIG, but we have our ideas or potentially what they could be planning to do there based on their previous MD&As and releases on their strategy. Of course, it would have been great if they disclosed more, but we assume it will be something along the lines of, (i) head office, (ii) branding presence, similar to other companies located there, (iii) renewables energy game plan and storage, etc. 

Let us see, but in any case, per one of our mantras, “start looking at, or stick with companies that actually do things.

  • Barita Investments Limited (JSE: BIL) has pulled back closer to its 52-week low in recent trading activity. BIL is around J$ 84.50 in trading, with its 52-week low at J$ 83.50. We are approaching year end audited numbers, or 4th quarter unaudited numbers for most JSE companies, as we head into earnings season soon. In BIL’s case, their year end is September 30th, so their 1st Quarter is coming up…

BIL, may test its 52-week low, similar to a number of JSE financial stocks. As an example, NCB Financial Group, broke through support and hit a new 52-week low, hitting J$ 75.00. 

We always like to say at ItsMoneyMark, that it is positive to see “skin in the game” and that creates confidence. Not enough analysts, pay attention or publish “company insiders” % holdings cumulatively of the Company’s issued share capital, and importantly of the Company’s float. 

In a recent release to the JSE, a Senior Manager of BIL acquired a total of 328,750 shares of BIL on February 1, 2023, under the Company’s ESOP: Employee Stock Ownership Plan. 

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