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Express Catering A ‘Buy’ – JMMB

Analysts at the Jamaica Money Market Brokers Group Ltd have released their analysis on the initial public offer for Express Catering Ltd. Based on their insight, they have put an overweight / buy rating on the offer. Today is the last day to sign up for what is expected to be another oversubscribed offer from Mayberry Investments Ltd.

Based on their analysis

  • They believe the shares are under-priced relative to shares currently listed on the Jamaica Stock Exchange at the offer price of $1.50.
  • They view the company positively as it is a foreign exchange income generator with an exclusive contract to provide its services in a high traffic airport.
  • Plans to expand the offerings to include the Starbucks brand, the international coffee food chain, popular in the United States and Canadian markets, should augur well for continued growth.

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Margaritaville Controlled Express Catering To Raise $491.3m. Valuing Company At J$2.5 Billion

Highlights

  • The company has concession arrangements to sell food and beverages at the Sangsters International Airport in Montego Bay with a number of reputable international and local brands
  • Raising J$491.3m from the sale of 327.5m shares at J$1.5 per share. Valuing the company at ~J$2.5b
  • Would become the 4th largest public company in the Caribbean in the Hotels, Restaurants & Leisure industry
  • Owned by the Margaritaville St. Lucia Inc.
  • Currently profitable. Earned net profits of US$1.1m in 2016 from sales of US$14.1m (compared to profits of US$590k in 2015 and sales of US$13.6m)
  • Recently launched its US$3.5m 7 year preference share to raise funds
  • Recently entered an agreement to operate the Starbucks coffee franchise. Construction to begin within 6 months

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Stationery & Office Supplies Ltd Going Public, To Raise $95m

Local family owned business, Stationery & Office Supplies Ltd is going public. The 50-year-old company, owned by the McDaniel family is a leading supplier of office furniture and related supplies. Continue Reading

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Musson Subsidiary (PBS) Launches IPO To Raise A Whopping US$41.5m

The Productive Business Solutions (a subsidiary of the Musson group of companies) has launched its initial public offer to raise US$41.5m. These are some highlights of the offer.

  • The company is incorporated in Barbados and intends to have a secondary listing on the Barbados Stock Exchange
  • The application will be open for subscription on July 5, 2017 and close on July 26, if it’s not oversubscribed on its opening date (based on what I’ve seen in IPOs)

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Main Event Now Reporting Profitable Results – Q2 2017

About 2 weeks ago Main Event Entertainment Group published their first financial results – year end results (for 12 months ended October 2016). Those results showed net profit of $56.5m for 2016 compared to $60.0m in 2015.

Now (less than 2 weeks later) they are reporting their six month results for the period up to April 2017 (of $74.9m). In those six months, they have seen a 16% increase in net profit, from to $64.4m to $74.9m (mainly driven by the Digital Signage segment, which saw revenues increasing by 32% or $13.5m). More to come.

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NCBFG Appoints ‘Bob’ Blake As Chief Opertating Officer

NCB Financial Group Limited (NCBFG) has advised of organizational changes within its subsidiary National Commercial Bank Jamaica Limited (NCBJ) that will be effective April 3, 2017. Continue Reading

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New Ratings: JMMB Rates Derrimon (DTL) A HOLD, Jamaica Producers (JP) as A SELL

Editor’s note: Due to a technical error, this alert was re-sent in error earlier this morning. Please accept our apologies. We intended to advise about the new appointments at NCBFG.

Just released research from the JMMB Group has rated Derrimon Trading Ltd (DTL) as a HOLD and Jamaica Producers Ltd (JP) as a SELL. This latest research from the Risk and Research department was released today February 22, 2017 Continue Reading

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Lasco Manufacturing Reports a 51% Drop in Net Profit Despite Big Marketing Spend

Lasco Manufacturing is reporting a decline in Net profit for the 3rd Quarter ending December 2016 compared to the prior year (December 2015). The company’s profit for the 3 months fell from $231.7m in December 2015 to $113.2m in December 2016.

This due to $116m or 52.6% increase in operating expenses (related to marketing and new product launches) and a 15.8% decline in revenue. However the company remains optimistic about its new products and already initiated cost cutting plans. This may not be welcomed news as the company says the market is already experiencing a slowdown in demand.

During the quarter the company introduced a meal replacement product, Nutrify, the egg-nog flavour to the ice cream line and added another size to the iCool drink.

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