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Why Is The Market So Bullish On Pulse Investments And Blue Power? – Small Trades Giving Big Price Movements!

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Over the last four (4) months those of you who are avid viewers of the JSE daily stock price movements would have noticed dramatic movements in the stock prices for Blue Power and Pulse Investments. Under normal conditions and for companies much larger and profitable these would not have attracted much attention.

This is the essence of what we have observed so far based on Jamaica Stock Exchange information.

Blue Power Group Limited Price History

Date Volume 
(non block)
($)
Last Traded
Price
($)
Close 
Price
($)
Price 
Change
($)
Closing 
Bid
($)
Closing
Ask
($)
2017-02-15 1,112 50.01 51.34 0.34 50.01 55.05
2017-02-16 3,000 50.01 50.01 -1.33 50.01 55.05
2017-02-17 0 50.01 50.01 0.00 50.01 0.00
2017-02-20 100 50.25 50.25 0.24 50.25 0.00
2017-02-21 0 50.25 50.25 0.00 50.25 0.00
2017-02-22 0 50.25 50.25 0.00 50.50 0.00
2017-02-23 120 50.50 50.50 0.25 50.50 0.00
2017-02-24 0 0.00 50.50 0.00 50.70 55.00
2017-02-27 221 55.00 55.00 4.50 51.00 55.00
2017-02-28 5,808 50.25 55.17 0.17 49.80 57.50
2017-03-02 1,200 55.00 55.00 -0.17 49.80 55.00
2017-03-03 4,817 40.40 46.14 -8.86 37.00 0.00
2017-03-06 2,336 37.00 43.72 -2.42 25.00 55.00
2017-03-07 0 40.40 43.72 0.00 25.00 55.00
2017-03-08 0 25.00 43.72 0.00 25.00 43.70
2017-03-09 0 0.00 43.72 0.00 30.00 43.70
2017-03-10 5,000 26.00 43.70 -0.02 26.10 43.70
2017-03-13 2,000 30.00 37.17 -6.53 28.50 43.00
2017-03-14 7,344 25.50 29.81 -7.36 25.50 40.00
2017-03-15 100 36.50 36.50 6.69 30.00 36.40
2017-03-16 0 0.00 36.50 0.00 36.50 38.00

 

Blue Power started 2017 trading at $29.00 making steady upward movements.

On the 27th February Blue Power traded 221 units to push the stock price up $4.50 to close at $55.00.

On the 14th March 7,344 units traded which saw the stock losing $7.36 to close at $28.50.

Blue Power has been trading at a 52 week range of $11.00 to $57.60

Over the last five or so months trading volumes have been on the low side however on the 7th February 894,181 units traded at a price of 50.01. What does this investor know about the future prospects of this company that would convince him to trade this block of shares at this high price?

 

Pulse Investments Limited Price History

Date Volume 
(non block)
($)
Last Traded
Price
($)
Close 
Price
($)
Price 
Change
($)
Closing 
Bid
($)
Closing
Ask
($)
2017-02-15 410,470 6.50 6.50 -0.25 6.35 7.00
2017-02-16 12,000 6.90 6.90 0.40 6.35 6.90
2017-02-17 3,030 6.80 6.80 -0.10 6.35 6.80
2017-02-20 417 6.80 6.80 0.00 6.35 6.80
2017-02-21 6,688 6.80 6.80 0.00 6.35 6.80
2017-02-22 10,200 6.80 6.80 0.00 6.35 6.80
2017-02-23 10,000 6.80 6.80 0.00 6.35 6.80
2017-02-24 11,771 7.00 6.80 0.00 6.80 7.00
2017-02-27 14,633 7.00 7.00 0.20 6.35 7.00
2017-02-28 12,285 7.50 7.03 0.03 7.00 7.50
2017-03-02 20,074 7.50 7.25 0.22 7.00 7.50
2017-03-03 0 0.00 7.25 0.00 7.00 7.50
2017-03-06 96,759 7.50 7.50 0.25 7.00 7.50
2017-03-07 54,008 7.00 7.01 -0.49 7.00 7.50
2017-03-08 98,500 7.00 7.02 0.01 7.05 7.50
2017-03-09 0 0.00 7.02 0.00 7.20 7.50
2017-03-10 5,000 8.55 8.55 1.53 7.50 10.00
2017-03-13 5,000 10.00 9.64 1.09 6.80 9.00
2017-03-14 10,140 9.00 9.00 -0.64 7.50 9.00
2017-03-15 0 0.00 9.00 0.00 7.00 9.00
2017-03-16 456 8.75 8.75 -0.25 7.00 8.75

Pulse Investments started the year at JA$3.56 and from that date there has been a gradual and steady increase in the stock price peaking on the 13th March 2017 at $9.64 on trading volumes of 5000 units.

Pulse Investments 52 week range is: $2.25 to $10.00.

So far trading volumes have been relatively small, however on the 15th February 410,470 units traded at a price of 6.50 and 543,712 units at 6.51 on the 10th February suggesting that major stock holders were able to offload a good chunk of stock at a significant profit, assuming they had acquired the stock at or around the $3.56 price.

However not seeing any significant company action or decision that would lend itself to massive jumps in share prices coupled with the relative small trade volumes, the movements attracted our attention.

We sought the view and insight from some of the region’s leading financial analyst on the possible reasons for the upward tick in the prices of these stocks.

Noted financial analyst and active player in the stock market, Sushil Jain indicated that share price movements generally are primarily based on current and projected profits and investors’ perception of the growth prospects of the companies.

Blue Power

In the case of Blue Power, Jain indicated that published results of the first quarter ending 31st January, 2017 showed a 40% increase year over year. The Earnings Per Share (EPS) for first quarter he said was $0.63 which was 40% more than the year before. This he said indicates that the company can have an EPS of $2.50 for the year. Hence the investors are optimistic.

John Jackson another noted and avid player in the stock market, in an article published on his ICInsider.com website back in Dec 2016 had a price target of $45 for Blue Power. What was his thinking for this we asked? “Increased profits and a PE of 20 or there about, that was based on 2016/17 EPS and probably a PE 0f 15”, he offered.

 

As for the current bull market run on the Blue Power stock price, Jackson suggested that the overall market is trading at a forward PE of around 13 times 2017 earnings with some stocks around 16/17.

According to Jackson Blue Power seems ripe for a stock split with its limited supply of stocks being offered and profit performance is very good with expected growth.

Jackson is also projecting an EPS of $2.80 for the year to April and $4 for 2018. That is room for a lot of upside with a PE of 20 in sight. Lack of adequate supply is helping to fuel the move in the price aided by the good results.

Pulse Investments

Commenting on Pulse, Jain indicated that published results for the six months ending 31st December 2016 showed an EPS of $0.56 which means investors can project them to make an EPS of 1.00 for the year. They also provided some information about their planned property developments which gives hope for the future profitability of the company.

John Jackson for his part indicated that Pulse could be considered cheap based on the results and the disclosure of changes to its leasehold property, business expansion and increased cash inflows all helping to push the stock price upwards.

Some investors may well speculate that with a rights issue overdue there may be other forces at play. I can’t speak to that but selling has abated here he said.

 

It’s interesting to note that in November 2016 ICINSIDER.COM reported that “The latter (PULSE) just released the September quarterly report with the best quality of earnings in years, with an improving cash flow compared with prior periods and increased earnings of 32 cents per share. Excluding fair value gains on real estate holdings, earnings per share would be around 23 cents or 90 cents per share annualised. The stock price has room for growth in the coming months. This is clear indication that Jackson saw the price movement coming, or did he?

Jackson has also been very critical of the Pulse board, writing in a May 2016 article he said “Pulse Investments needs an infusion at the directorship level as they have telegraphed time and again that they have a board that lacks knowledge to effectively guide the company and protect investors. This was made clear when directors responded to questions from minority shareholders and how badly they handled the proposed rights issue.”

Not sure though if I’m convinced that the movements are what the analyst suggest are the reasons for them particularly when the price of Blue Power has gone now gone down to $29 and seems to be heading further in this direction.

Jackson thinks it’s ripe for a stock split with its limited supply of stocks and profit performance is very good with expected growth. Jain thinks the company can have an EPS of $2.50 for the year and investors should be optimistic.

Pulse so far seems to be holding firm at $9. Jackson thinks Pulse for some investors may be seen as unvalued relative to the rest of the market based on the results and the disclosure of changes to its leasehold property, business expansion and increased cash inflows all helping to push the stock price upwards. Jain says for the six months ending 31st December 2016 Pulse showed an EPS of $0.56 which means investors can project an EPS of 1.00 for the 2017.

What do you think? BM

Aldo (Al) Antonio is the Group Chief Marketing & Business Development Officer for the Blackslate Holdings Group Limited a private equity firm that primarily makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital and growth capital.
Aldo Antonio and Blackslate Holdings Group Limited are currently not holders of stocks in Pulse Investments and Blue Power.

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Guardian Holdings Earnings Per Share Increased To TT$4.55 Versus The Comparative Period Of TT$1.97. For The Nine-Months Ended 30th September 2022

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Patrick Hylton Chairman Guardian Holdings Limited Has Released The Following Report To Shareholders For The Nine-Months Ended 30th September 2022

Your Group continues to demonstrate resilience and produce excellent performance.

Global financial markets remain volatile, in part due to the Russia-Ukraine conflict, the related sanctions and economic fallout as well as global economic weakness. The outlook for financial markets over the short and medium-term remains uncertain and vulnerable to continued geopolitical tensions. Despite these challenges, we remain focused on enhancing our operating performance to counter these numerous disruptions.

For the nine-months ended 30th September 2022, profit attributable to equity shareholders was $1.056 billion and represented a 131% increase over the corresponding period last year of $457 million.

Earnings per share increased to $4.55 versus the comparative period of $1.97.

As we have communicated on many occasions, the Group has been on a transformation journey centered on technology, people and processes. We have invested heavily in technology to bring world-class customer service to our markets, leverage the scale of our Group and reduce our operating costs. While in recent years we have reaped some of the benefits, we are now at a resultant juncture where the payback on this investment is rapidly accelerating. In 2022 the Group implemented many of these initiatives for our Life, Health and Pensions (LHP) segment with the alignment of our Trinidad and Jamaica operations bringing to reality operational synergies, cost savings and centers of excellence. These activities result in long-term cost savings which have the effect of creating favourable reserve movements contributing to the exceptional performance recorded for the year to date.

Gross Written Premiums for the LHP segment increased by 6.5% from $2.915 billion to $3.105 billion. Investment income and fees were also up by 10%, an $82 million increase. In addition, net insurance benefits and claims (inclusive of favourable reserve movements) were lower than prior year by 19%, $429 million. All these factors contributed to a healthy uplift in LHP profit after tax of 1 16%, $597 million over prior year.

Results from Property and Casualty and Brokerage segments of the business also reported growth year over year of 42%, $43 million, whilst Asset Management declined by 42%, $13 million.

The Group’s net income from investing activities fell from $1.153 billion to $942 million, a reduction of 18%. This decrease was principally due to net fair value losses of $153 million reflecting the difficulties in global financial markets in the current period, compared to net fair value gains in the prior period of $133 million, resulting in an unfavourable movement of $286 million. The unfavourable fair value movement was partially offset by an increase in investment income of $70 million, arising from portfolio growth.

Operating expenses were $1 .147 billion, representing a 7% increase over the $ 1.074 billion reported for the same period prior year. These primarily relate to costs associated with the implementation of IFRS 17 as well as with the group-wide transformation initiatives.

The Board is pleased with this quarter’s performance and remains confident about the Group’s future financial performance.

For more information CLICK HERE

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ANSA McAL Limited Reporting Groups Revenue Increased By TT$581million Or 14% To TT$4.716 Billion Over The Nine-Month Period Ended 30 September 2022.

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A. Norman Sabga Chairman ANSA McAL Limited has released the following-Unaudited Financial Results for the Nine-Months ended September 30 2022

Over the nine-month period ended 30 September 2022, the Group’s revenue increased by $581million or 14% to $4.716 billion ($4.135 billion – 2021) and total assets grew by 3% to $17.570 billion ($17.043 billion – 2021). Our gearing ratio reduced to 8.6% (9.6% – 2021).

With the exception of banking and insurance, all major business segments continue to show improvement over last year with our Automotive, Beverage, Manufacturing, Construction and Distribution operations demonstrating strong top line growth and profitability.

The investment portfolios of our Banking and Insurance Segment and at Parent continue to be affected by volatility in the global financial markets. The resulting non-cash, mark to market losses reduced the Group’s profit before tax to $139.1 million ($461.8 million – 2021) and earnings per share to $0.00 ($1.65 – 2021).

While it is challenging to predict with certainty the timing of the turnaround of the investment portfolios, the core operating banking and insurance business lines continue to perform well and are expected to grow.

ANSA Bank’s transformative digital commercial model is still on track to be launched before the end of the year, and regulatory approval was recently granted for the acquisition of COLFIRE by TATIL which we expect to close early in 2023. This addition to our Insurance business will provide a significant uplift while improving our offerings to a wider customer base.

Looking wider and farther ahead, we have set an aggressive target of doubling the Group’s profitability by 2027. Underpinning this target are robust strategies to achieve organic and inorganic growth in both new and existing regional and international markets. We also continue to balance prudent cost management and pricing strategies to achieve our very ambitious growth targets.

Our strategic intent is to create not only sustainable but inclusive growth for the benefit of society. We have therefore embedded a strong environmental, social and governance (ESG) proposition within our plans to assure the creation of value for all our stakeholders in the long term. With a resilient balance sheet, strong core values and talented people, we remain confident about the future.

For more information CLICK HERE

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L.J. Williams Limited Looks to Stronger December 2022 3rd Quarter As They Continue To See Resilience In Consumer Shopping.

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Krishna Bahadoorsingh, Chairman of L.J. Williams Limited has released the following Condensed consolidated financial information for FY 2023 Half Year Ending September 30th 2022

The Group turnover for the half year ending September 30th 2022 was $76.63 million vs $61.94 million for the same period last year, an increase Of 23.7%. Operating profit increased by 58.5% to $7.72 million from $4.87 million for the corresponding period last year.

The Parent Company’s sales were 5% above the same period last year. The Food Division continues to show improvement as the supply chain issues caused by the pandemic diminish, allowing suppliers to improve deliveries.

THS Hardware and Shipping Division sales were flat for the first two quarters compared to 2021. However, we expect an improvement in the Shipping Division’s performance in the Third Quarter ending December.

The Home Store results for FY2022 were impacted by the 2021 May to mid-August store closures due to Covid lockdown. As a result, the current half year shows sales growth of 90% over the comparative period in 2021 as all stores were open during this period. We ended FY2022 with excess inventory and more promotions and sales were run to help bring our inventory down to a manageable level.

We expect the 3rd Quarter ending December 2022 to be strong as we continue to see resilience in consumer shopping which benefits our distribution and retail businesses.

We are also pleased to report that The Home Store has continued to expand and opened its fifth location at East Gates Mall in Trincity on 30th of October 2022. Furthermore, we expect to open The Home Store’s first international branch in Amazonia Mall in Guyana by the end of November 2022.

For more information CLICK HERE

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Trinidad And Tobago Based National Flour Mills Records Loss Of TT$1.7M. As At September 30, 2022 Report

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Nigel Romano Chairman National Flour Mills Limited has released the following Unaudited Results As At September 30, 2022 (Expressed In Thousands Of Trinidad And Tobago Dollars)

The Russia-Ukraine war, the slowdown of the Chinese economy and rising geopolitical tensions across the globe continued to impact global supply chains and the cost of food and fuel leading to surging inflation in almost every country in the world. In addition, the impact of climate change, in the form of increased rainfall in
some areas and drought in others added more complexity to the operating landscape.

At The UN’s World Climate Conference (COP27), currently underway in Egypt’s Sharm El-Sheikh, it is being acknowledged that countries are not doing enough to prevent global temperatures from rising by the targeted 1.5 degrees Celsius above pre-industrial levels. If these targets are not met and the increase in global warming is not reversed in a very short space of time, it could be too late. Climate change has already adversely affected the global supply of wheat. Droughts and excessive heat in North America and India have resulted in demand exceeding supply for wheat which led to price escalations so far this year, a trend we expect to continue.

The issues above impacted our operations with cost of sales increasing by 21.4% year-on-year, up from $256.7M to $311.9M. The price increases implemented earlier this year helped to blunt this impact with revenue up by 16.1% from $319.7M in Q3 2021 to $371.2M. However, this was not sufficient to off-set the increased cost of sales, and even though our indirect expenses remained relatively stable over the period, operating profit decreased by 57.5% compared to the prior year. As at September 30, 2022, NFM recorded a loss of $1.7M.

Notwithstanding these challenges, significant eff orts were made to increase inventory levels to ensure a reliable supply to all our customers, with delivery of our products meeting all on time and in-full benchmarks.

In addition, we continued to invest in the upgrade of our plant and equipment to ensure that we can continue to provide safe, quality food and feed products for our customers as we continue on the journey to SQF Level 3 Certification. The increase in accounts receivables was a direct result of the price increase implemented this
year and the attendant increase in credit limits for our customers.

We wish to assure all our stakeholders that despite these challenges, we continue to explore additional avenues to serve our customers, add new customers, locally and regionally, diversify our product revenue streams and improve the efficiency of our operations.

For more information CLICK HERE

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Trinidad and Tobago NGL Improved 9 Month Performance Derived From Share Of Higher Profit From Investment In Phoenix Park Gas Processors.

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Dr. Joseph Ismael Khan, Chairman Trinidad and Tobago NGL Limited (‘ITNGL’/’Company’) has released the following report for the nine months ended 30 September 2022,

Trinidad and Tobago NGL Limited recorded an after-tax profit of IT$165.1 million. This represents an IT$31.0 million or 23.1 % improvement over the comparable period in 2021, where a profit after tax of IT$134.1 million was recorded.

Earnings per share for the period were IT$ 1.07, compared to IT$0.87 for the corresponding period in 2021, which represented an increase of 23.0%.

ITNGL’s improved performance for the period was derived from its share of higher profit from its investment in Phoenix Park Gas Processors Limited (‘PPGPL’). This enhanced performance at PPGPL continued to be driven by higher recognised Mont Belvieu natural gas liquids (‘NGLs’) prices, which were 51.5% above those of the corresponding period of 2021.

Growth in energy commodity prices, and in particular crude oil prices, has been subdued compared to earlier in the year, with the biggest impacts coming from a slowdown in economic growth and constrained global supply. Notwithstanding, prices remain robust and continue to be influenced by geopolitical fallout from the war in Europe. NGL prices continue to be closely aligned to crude oil prices.

For the first nine months of the year, NGL production from gas processing was lower by 3.7% compared to 2021 due to lower gas volumes received at PPGPL for processing (2022: 1,081 million standard cubic feet per day (‘mmscfd’); 2021: 1,096 mmscfd) and lower NGL content in the gas stream. The lower gas volumes were attributable to downtime by downstream petrochemical plants for maintenance activities during the period. NGL sales volumes for the nine months were 13.2% higher than in 2021 due to a draw on inventory because of higher customer demand. These higher sales volumes benefitted from the robust NGL product prices during the period.

PPGPL’s North American-based subsidiary, Phoenix Park Trinidad and Tobago Energy Holdings Limited (‘PPTTEHL’), has maintained its position as a key supplier of NGLs to customers in the markets it serves. The subsidiary continues to integrate its recent addition of the Hull NGL terminal and has actively managed the inherent business risks of the Company. Performance from this business segment is expected to positively contribute to PPGPL’s future earnings potential.

Outlook

To mitigate the impacts of lower NGL volumes and potential volatility in NGL prices, PPGPL remains focused on sustaining operating efficiencies, reliability of its facilities and prudent fiscal management. Additionally, PPGPL’s continued internationalisation thrust as well as its efforts to satisfy its customers and grow and retain its markets, will underpin growth of the Company’s earnings capacity and development of sustainable long-term shareholder value.

For more information CLICK HERE

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