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REGENCY Petroleum, IPO Closes Swiftly, adds to the Energy Sector on the JSE
As expected, the IPO – Initial Public Offer closed early, and closed on, November 25, 2022.
The IPO was a small one, and the market really likes and enjoys this equity fundraise sizes, more so than the large ones. The real “alpha” tends to be in these SMEs or the smaller IPO offerings, J$ 200 to 500 MM or the Juniors.
Regency Petroleum joins FESCO on the market, as a comparable in the lucrative energy sector.
Main Event Entertainment Group, registers Brilliant Quarter
A 3rd Quarter to Remember
Hot to Trot – Main Event – Back in Top Form
It needed Covid-19, the pandemic, to get to a stage of being more or less behind us, for the place to become “outside again” and Main Event Entertainment Group Limited (JSE: MEEG) would flourish again. Well just like that, here we go. Main Event is back, is an understatement. Patience rewards MEEG shareholders, with the latest quarterly financial reports, MEEG’s 3rd quarter.
Blistering Earnings Reports Continue for Q1 on the JSE, while the Dow Jones, and U.S. Markets continue to Head Lower…
The Dow Jones Industrial Average (US: DJIA) continues to test lower and lower resistance levels. It seems destined to break through the 32,000 points mark, but let’s see what happens. Depends on which U.S. index we examine, but from the peak, we are talking about, U.S. indices being anywhere from 13% – 25% off their highs, whether we speak about the DOW JONES or the NASDAQ.
They call interest rates the silent creeper and the soul killer… especially if you are a business owner, and have some leverage or took on some leverage, for a variety of reasons. You could have made an honest business mistake, a bad business judgement, over-extended your business, decided to go into a non-productive asset, a distressed matter occurred, a super charged growth capital opportunity presented itself or some of all the above.
We can add another sleeper to the mix without over-doing it… Sagicor Select Funds, Manufacturing & Distribution (JSE: SELECTMD). Although we think from our investment cultural perspective because we are unique, the SELECT listings need a “face” as Jamaican investors are having difficulty differentiating between unit trust, collective investment schemes, and these listed quasi-ETFs (exchange traded funds). We still tend to prefer and understand, a straightforward company, which is easy to understand, sells a product or service that we consume, etc. Like the adage, we tend to invest in what we clearly understand. This has not changed over time, and more than likely will not.
Opportunity, opportunity, opportunity… Despite all the “blaze” about Lumber Depot, Fontana Limited, Spur Tree, and a few others in the past week, remember there are 8 billion people out there, and a lot, a lot of market cap globally.
The TROPICAL Battery Company Limited: A bit on the Cheap, Heading into 2022 for your Portfolio
Tropical Battery Company Limited (JSE: TROPICAL) has reported an extremely strong profit for the year, coming in at +203% year over year. TROPICAL has always been known historically as a high volume/ turnover business with low net margins. Over the past few years, and particularly since listing, the Directors & Management, clearly have been assiduously working on getting the margins right sized and the results are now showing the hard work.
Palace Amusement Company (1921): Disclosure of the J$ 653 million Loan
We are still “perplexed” about the lack of disclosure by Palace Amusement (JSE: PAL) regarding its massive cash windfall via the form of a loan of J$ 653 million. We alluded to this in a previous newsletter and our earnings report, that the only disclosure by PAL has been the subsequent event in its audited financial statements that were late to the JSE. Now that PAL have released their Q1 2021/ 2022, it is clear the influx of cash or the deal with VM Investments is not in the Q1 but must be forthcoming in the Q2 financials to come.
Welcome to our Special Holiday Newsletter!
The Dow Jones cranks above 35,000 points after a wacky week of a lot of chilly water on the market. It has been mostly tech coming to the save the U.S. market these days, in frequent times but the Mr. Traditional, came to the rescue within the past few days. Traditional bankers/ financiers/ investment banks came out shining despite the Pandemic, despite the concerns of surging oil/ energy costs, the doom and gloom of “inflation” and the financiers registered massive investment banking and trading profits, returning U.S. markets to a well needed “frenzy.” The markets needed that shot in the arm.
Sygnus Real Estate Finance Limited (“SRF”) has joined the party, and is diving deeper into the real estate investment class. Shares of SRF are now listed and tradable on the Jamaica Stock Exchange (“JSE”).
We have spoken about real estate a few times, our thoughts, the demand phenomenon in Jamaica, etc. and will the boom end? At this stage, if one would say we are still in a “stage” investment companies like SRF and many others are now pumping Billions J$ into the asset class via structures. The reason we say “stage” is because a lot of analysts tend to use this, and we have been hearing about real estate and being at a stage since 2002 or before. In hindsight, the throttle and the trend has continued. It is actually similar to “many persons” opinion of the U.S. stock market since 2015 or before. Well not even a global pandemic could end that asset classes uptrend and phenomenal run. With the new, not only in Jamaica but also in the U.S. concerns about inflation, there is actually more new demand coming into real estate as a hedge. High oil, and other escalating costs, will actually benefit “real estate”, hence investment managers even at what some perceive to be high per square foot prices/ valuations are positioning themselves for the next few years.
ITSMONEYMARK 