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8% increase in assets announced at Portland JSX Limited AGM Published: 16 July 2018

On July 11, 2018, Portland JSX Limited (“PJX”) held its Annual General Meeting at which the Company’s audited financial statements for the year ended February 28, 2018, were approved by its shareholders.

As of February 28, 2018, PJX reported total assets of USD 25,737,581, an increase of approximately 8% over the prior year. Of greater note, the composition of the Company’s assets changed with its investment in Portland Caribbean Fund II having increased to USD 22,065,065 from USD 11,570,715 a year earlier. Most of this increase was funded by utilizing the Company’s holdings of cash and short-term securities.

For more details, visit: https://www.jamstockex.com/wp-content/uploads/2018/07/Press-Release-8-increase-in-assets-announced-at-Portland-JSX-Limited.pdf

 

Source: JSE

 

CAC 2000 Limited (CAC) – Dividend Declaration for 9.50% Preference Share Published: 16 July 2018

CAC 2000 Limited (CAC) has advised that following the first payment dividend payments will be made on the 15th day of the month immediately following, or if such day falls on a day other than a business day then payment will be made on the next business day, to the Preference Shareholders on record as at the 16th day of the prior month, of the JMD 9.50% Preference Share variable rate per annum for the first four years and thereafter a variable rate of 3.0 percentage points above the weighted average rate applicable to the six-month Jamaica Treasury Bill Tender (WATBY), held immediately prior to the commencement of each quarterly interest period, until maturity in 2023.

The first payment will be made on July 27, 2018 to the 9.50% variable rate JMD preference shareholders on record as at June 16, 2018. The principal repayment date is March 16, 2023.

CAC also advises that thereafter dividends will be due and payable quarterly on the 15th day of the relevant months (October, January, April and July) or if such day falls on a day other than a business day then payment will be made on the next business day, to the 9.50% variable rate JMD Preference shareholders on record as at the 16th day of the prior month.

 

Source: JSE

Caribbean Cement Company Limited (CCC) – MOU with Trinidad Cement Limited Published: 13 July 2018

Caribbean Cement Company Limited (CCC) has advised that on July 6, 2018, pursuant to the Memorandum of Understanding CCC entered into with Trinidad Cement Limited (TCL) dated March 16, 2018, it signed a preference share redemption agreement with TCL for the redemption of an aggregate number of 52 million preference shares that are held by TCL that were issued by CCC on 2010 and 2013.

CCC states that the aggregate amount of the consideration to be paid by CCC to TCL is of USD$40.5 million, which reflects a below par value amount and is to be paid on a yearly basis starting in the current 2018 calendar year and that in compliance with applicable laws, the amounts to be paid by CCC to TCL are to be sourced from at least 1/3 (one third) of CCC annual profits, if any, which would otherwise be available for distribution. This fraction shall be increased to at least 2/3 (two thirds) of CCC annual profits available for distribution in case any preference shares held by TCL remain outstanding after the scheduled partial redemption payment during the 2026 calendar year.

 

Source: JSE

Seprod Limited (SEP) Declares Dividend Published: 13 July 2018

Seprod Limited (SEP) has advised that at a meeting of their Board of Directors held on July 9, 2018, the following resolution was passed:

“THAT a dividend of Fifty cents ($0.50) per share be paid to all shareholders on record as at July 25, 2018 AND THAT the payment date of the dividend be August 31, 2018”.

The ex-dividend date is July 24, 2018.

 

Source: JSE

Preliminary Basis of Allotment for Mayberry Jamaican Equities Limited Published: 13 July 2018

Mayberry Investments Limited (MIL) has advised that they are in the process of completing their in-house reconciliation of all applications in respect of the Mayberry Jamaican Equities Limited Initial Public Offering and that the indicative basis of allotment will be as follows:

  1.  Millennials Reserved were allocated 100%
  2. Mayberry Managed Equity Portfolio the first 10,000 units were allocated; the balance > 10,000 units will be allocated proportionally
  3. Employee Reserved the first 10,000 unites were allocated; the balance > 10,000 units will be allocated proportionally
  4. Existing Mayberry Investments limited Client and Shareholders the first 10,000 units were allocated; the balance > 10,000 units will be allocated proportionally
  5. Shares for the General Public the first 10,000 units were allocated; the balance > 10,000 units will be allocated proportionally

MIL further advised that the final basis of allotment will be provided as soon as the reconciliation is completed with the Jamaica Central Securities Depository. 

 

Source:JSE

Caribbean Cream Limited (KREMI) Declares Dividend Published: 13 July 2018

Caribbean Cream Limited (KREMI) has advised that at the Board of Directors’ meeting held on July 9, 2018, declared an interim dividend of 4.8 cents ($0.048) per share as the final dividend for the year ended February 28, 2018, to be paid on September 21, 2018, to shareholders registered at the close of business on September 7, 2018.

The ex-dividend date is September 6, 2018.

Digicel Prices Plunge as Refinancing Risk Increases Published: 13 July 2018

We are reiterating our SELL recommendation on Digicel Ltd and Digicel Group. Despite on-going efforts to reduce costs, generate cash through asset sales and a transition to the higher margin fibre business, financial performance continues to deteriorate.   In addition, the credit profiles of both entities remain weak and efforts so far to refinance impending maturities have not yet borne fruit. 

Investor sentiment surrounding the Digicel bonds has become even more negative given the company’s failure to secure refinancing for the 2020 bonds and deteriorating financial performance. In particular, the concerns stem from the limited time remaining for the Digicel entities to refinance debt which is expected to become even more challenging in the current rising interest rate environment.  Importantly, combined Digicel Limited and Digicel group has a total of US$6.5Bn in bonds with a maturity occurring every year from 2020 through 2023. The elevated risks are already being priced in with investors demanding higher yields on the telecom company’s bonds. Further, a recent conference call to discuss its latest financial performance did little to quell fears or inspire investor confidence.   The company’s performance for FY18 continued to deteriorate with revenue and EBITDA declining year-on-year despite cost-cutting measures that have been implemented. The company’s over-leveraged balance sheet also inhibits its ability to secure much-needed refinancing. 

Recommendation

Despite on-going efforts to reduce costs, no significant benefit has been realized in the company’s performance, and the company’s transition to fibre has not moved the needle on revenues or EBITDA.   In addition, the company’s credit profile remains weak and its efforts so far to refinance impending maturities have not been fruitful, causing much concern.  We therefore continue to recommend that investors reduce their exposure to (SELL) Digicel. Investors could consider purchasing Mexico’s Unifin Financiera[1] 7% 2025 (S&P Rating: BB/Stable) which is a higher quality credit offering a yield to call of 9.22% [2].

 

[1] Unifin Financiera is one of the largest unregulated non-bank financial institutions (NBFIs) in Latin America in terms of loans and assets. The company’s core business involves providing operating leases to the SME sector, factoring and auto loans.

[2] The next call date is July 15, 2021

UK Prime Minister May faces fight for leadership in crucial Brexit showdown Published: 09 July 2018

The resignation of U.K. Foreign Secretary Boris Johnson on Monday afternoon has led to suggestions that the British government is on the brink of collapse.

Johnson stepped down after Prime Minister Theresa May outlined her government’s desire for a softer version of Brexit. He is the second cabinet minister to resign within 24 hours after the U.K.’s main Brexit negotiator, David Davis, quit late Sunday night.

A statement released by Downing Street confirmed Johnson’s departure and said a replacement would shortly be announced. Later, in a statement to parliament, May thanked the “work” of Davis and “passion” of Johnson while noting their differences in opinion with her over Brexit.

That gratitude may not last long with many seeing the resignation as a pre-cursor to a leadership challenge, which would bid to topple May and replace her with a more ardent supporter of Brexit.

The prime minister would have to conduct a leadership contest if at least 48 of her own lawmakers were to move against her. The process for that involves politicians sending letters calling for a vote of confidence to the powerful 1922 committee of backbenchers.

Once that threshold has been reached, the committee's chairman will announce the start of the contest and invite nominations.

Jeremy Corbyn, the leader of the opposition Labour Party, said it proved that Theresa May was incapable of negotiating a Brexit deal with the EU, given the splits within her own party.

In reaction to Johnson's resignation, the pound fell around 0.2 percent against the dollar to its lowest point of the day.

 

Source: CNBC

Derrimon Trading Co. Ltd (DTL) Special Business Resolution for Consideration at AGM Published: 09 July 2018

Derrimon Trading Co. Ltd (DTL) has advised that there will be three (3) Special Business Resolutions which is being placed forward for consideration at DTL’s Annual General Meeting on August 22, 2018:

Resolution # 5 – Increase of Authorised Share Capital  

“That the authorized share capital of the Company be increased from 800,400,000 shares to 8,200,400,000 shares by the creation of an additional 7,400,000,000 ordinary shares each ranking pari passu in all respects with the existing ordinary shares or stock units in the capital of the Company.”

Resolution 6 – 10:1 Stock Split

“That each of the issued ordinary shares in the capital of the Company be subdivided into 10 ordinary shares with effect from the close of business on August 22, 2018 resulting in the total issued shares in the capital of the Company being increased from 273,336,067 ordinary share of no par value to 2,733,360,670 ordinary shares of no par value.”

Resolution 7 – Conversion of Ordinary Shares to Stock Units

“That all ordinary shares in the capital of the Company once issued and allotted as of the date hereof and at any time hereafter be and are hereby converted into stock units.”

C2W Music Limited (MUSIC) Directors Transfer 80% Shares to SSL Published: 09 July 2018

Stocks and Securities Limited has completed a block transfer of shares totaling 215,978,588 units. Shares have been transferred to Stocks and Securities Limited from two C2W Music Limited (MUSIC) directors, bringing Stocks and Securities Limited total ownership to 320,000,000 units or 80% of total issued shares.”