Businessuite Markets
Why Is The Market So Bullish On Pulse Investments And Blue Power? – Small Trades Giving Big Price Movements!
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.
Businessuite Markets
Prestige Holdings Enjoyed A Strong Performance For First Quarter Of Fiscal 2024.
Christian E. Mouttet Chairman for Prestige Holdings has released the following Consolidated Unaudited Results for the Three Months Ended 29 February 2024
I am pleased to report that Prestige Holdings enjoyed a strong performance for the First Quarter of fiscal 2024. Group sales increased by 10% to $341 million from $309 million in the prior year, which resulted in a Profit Before Tax of $15.3 million compared to a profit of $11.6 million for the same period in 2023, a 32% increase. Profit After Tax, attributable to shareholders, increased by 25% from $7.8 million to $9.8 million. Cash flow from operations was $26.9 million and we ended the quarter with $100 million in cash having reduced total borrowings by $5.8 million. During the period we remodelled 2 restaurants and ended the period with 134 restaurants.
All brands posted solid performances during the quarter, with our Subway and Pizza Hut results driven by improved operations, efficiencies and strong demand for our innovative menu items and value offerings. Top line sales were impacted by the opening of five new Starbucks restaurants at Brentwood, Aranguez, O’Meara, St. Augustine and Amazonia Mall, Guyana, when compared to the First Quarter of 2023.
I am extremely pleased to report that KFC recently achieved a significant milestone of serving 150,000 Harvest Meals. The Harvest Meal Programme, which has been active for two years, is designed to provide unsold KFC food to participating NGOs in Trinidad and Tobago. This unsold food is carefully packaged and transported, following accepted global food safety protocols, and is then repurposed into delicious meals and served to the less fortunate. We are very happy to have the opportunity to positively impact the communities in which we operate by partnering with NGOs to provide meals to those in need.
As mentioned in my previous report, significant investment is planned in this financial year for new store development, including Guyana, as well as the remodelling of existing assets in Trinidad and Tobago. We expect these developments, as well as our continued brand initiatives, to continue to deliver positive results.
For More Click THIS LINK
GraceKennedy Limited’s recent acquisition of an increased stake in Spur Tree Spices (Jamaica) Limited has positioned it as the second-largest shareholder in the company. With an estimated 338,410,375 shares now under its belt, based on Spur Tree’s issued share count of 1,676,959,244 ordinary shares, GraceKennedy solidifies its influence in Jamaica’s culinary landscape.
Continued Expansion through M&A
This transaction marks the latest in GraceKennedy’s series of mergers and acquisitions (M&A) activities, reflecting the company’s aggressive growth strategy. Following its acquisitions of Scotia Insurance Caribbean Limited and Unibev Limited in 2023, as well as doubling its interest in Catherine’s Peak Bottling Company Limited to 70% in February 2023, GraceKennedy demonstrates its commitment to diversification and market expansion.
Spur Tree’s Strategic Evolution
Meanwhile, Spur Tree Spices is undergoing a strategic transformation, expanding beyond spices and seasonings to become a full-fledged food brand. With plans to launch more than two dozen new products on May 1 and a brand refresh to reflect its new focus, Spur Tree is poised for a significant market repositioning.
Diversification and Innovation
In the upcoming quarter, Spur Tree Spices is set to unveil an array of innovative products, including their much-anticipated line of dried spices. This strategic move represents the company’s foray into new categories and a substantial expansion of its product offerings. By diversifying its portfolio, Spur Tree aims to capture a broader consumer base and solidify its position as a leading player in the culinary industry.
Implications of the Acquisition
GraceKennedy’s increased stake in Spur Tree Spices not only strengthens its position in the spice market but also opens doors for collaboration and synergies between the two entities. As GraceKennedy continues to expand its presence through strategic acquisitions, it can leverage Spur Tree’s innovative product line-up to bolster its offerings and tap into new market segments.
GraceKennedy Limited’s acquisition of a significant stake in Spur Tree Spices marks a strategic milestone for both companies. With GraceKennedy’s growing influence and Spur Tree’s strategic evolution, the stage is set for a dynamic partnership that promises innovation, growth, and market leadership. As they navigate the evolving landscape of Jamaica’s culinary industry, GraceKennedy and Spur Tree Spices are poised to redefine the future of food, one spice at a time.
Businessuite Markets
ANSA McAL Group Announces Formation Of Joint Venture Company, Globus ANSA Private Limited, With Globus Spirits Limited In India.
A. Norman Sabga Executive Chairman of the ANSA McAL Group of Companies has announced the formation of the joint venture company, Globus ANSA Private Limited, with Globus Spirits Limited in India.
In a release posted on the Trinidad and Tobago Stock Exchange ANSA McAL confirmed that with effect from 4th April 2024, ANSA McAL Limited (“ANSA McAL”) entered into a joint venture agreement with Globus Spirits Limited (“GSL”) to establish Globus ANSA Private Limited (“GAPL”).
Each party will hold fifty percent (50%) of the issued and allotted ordinary share capital of GAPL.
“This collaboration signifies a new era in the Indian alcoholic beverages industry, driving innovation and growth, ‘
“Globus ANSA Private Limited will specialise in manufacturing and distributing alcoholic beverages across the Indian subcontinent, leveraging the strength of both ANSA McAL and Globus Spirits Limited,” said Mr. Shekhar Swarup, Managing Director for Globus Spirits Limited. “This collaboration signifies a new era in the Indian alcoholic beverages industry, driving innovation and growth, ‘he stated
Globus Spirits Ltd is one of the leading players in the Alcohol industry in North India distributing brands in the Consumer Segment including:
• GR8 Times.
• Rajputana.
• Globus Spirits Dry Gin.
• White. Lace.
• Governors’ Reserve Red.
• Governors’ Reserve Blue.
• Oakton.
• Laffaire. Napoleon.
Trinidad and Tobago conglomerate ANSA McAL Group has over 142 years of rich history representing many world-
renowned brands, including some of their own home-grown successes. The partnership marks a significant milestone in ANSA McAL Group’s journey, merging cultures and expertise to revolutionise the beer industry in India, with their icon Carib brand and leading the charge.
Norman Sabga Executive Chairman of the ANSA McAL Group of Companies, highlighted the immense opportunities in India and their commitment to delivering unparalleled value through this partnership.
“We are confident that our collaboration will allow us to seize the growing demand for high quality beverages by captivating palates with our distinctive products” he said
ANSA McAL is now poised to be an equal Shareholder of GAPL, an Indian company which
would produce, market, sell, distribute and retail beer and other beverages.
Businessuite Markets
Jamaica Broilers Group Reporting Strong Top and Bottom Line Performance for January 2024 Quarter
Christopher E. Levy Group President & CEO of Jamaica Broilers Group Limited now release the following unaudited financial results for the quarter ended January 27, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS).
The Group produced a net profit attributable to shareholders of $1.3 billion, for the quarter ended January 27, 2024. The operations of the Group continue to be strong, and our gross margins are consistent with expectations.
Quarterly Group revenues amounted to $23.6 billion, a 4% increase above the $22.7 billion achieved in the corresponding quarter.
Our gross profit for the quarter was $5.9 billion, a 7% increase above the $5.5 billion achieved in the corresponding quarter in the prior year.
Jamaica Operations reported a segment result of $5.9 billion which was $448 million or 8% above last year’s segment result. Total revenue for our Jamaica Operations showed an increase of 2% over the prior year nine-month period. This increase was primarily driven by the growth in the sale and export of poultry and implementation of cost containment efforts.
Our US Operations reported a segment result of $3 billion which was $226 million or 8% above last year’s segment result. This increase was driven by increased volumes of poultry meat and eggs, as well as the implementation of cost management initiatives.
Total revenue for the US Operations increased by 3% over the prior year nine-month period.
We have begun to realise additional volumes through the US operations, which has resulted in increased financing requirements primarily around working capital.
For More Information CLICK HERE
National Insurance Fund (NIF) Plans to Increase Net Assets
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