0 thoughts on “CARIBBEAN STOCK REPORT 21 – 25 February 2011

  1. Dr.Robinson,

    Do you consider that there needs to be an implementation of an improved level of accountability by Caribbean Boards of Directors as well as more transparent guidelines in significant transactions?

    For example, the Banks debenture / funding issue would be one such case where more disclosure in the negotiation stages and reporting, would be one in mind.

    Surely, without a more transparent process, individuals will be loathe to invest in ANY Caribbean stock?

    You may answer, or merely say that you do not wish to comment publicly, I do not mind.

    Best wishes Sir.

  2. It not that we should be guessing maybe justin just overlooked the daily summary of the trade which indicated it part of the share acquisition sale.

  3. I would assume this part has to do with shares that where declared lost and an application for new certificates where issued. As such they normally take couple weeks to issue to give time for objects. there where listings in papers around the time of the share sale declaring who lost shares.

    • Accept the earlier point that financial literacy in the media houses is lacking, If we look to mature markets as a guide the financial pages play a big part in exposing the workings/performance of companies’; leading to transparency. There is also the consumer education you mention and the need to have investment portfolios not only to accommodate retirement but things like families having to prepare to finance college etc. In Barbados we have a local merchant (Supercentre) boldly stating his group is working with the leading newspaper (Nation) to inform the public about price structures in the food sector. Shouldn’t this be a wholly independent initiative with the media guiding the process? Does the Nation find itself where it is because they lack credible financial journalists/resources on staff?

      Several things will have to collide in our market to create the right ethos that will encourage consumer curiosity, it will not be price alone, education alone, building pan-mutual fun products  but several factors which must happen together*.

    • Indeed, and to give resonance to your point the question can be asked, how has this issue factored on the agenda of the current Caricom Heads Summit in Grenada this weekend? Perhaps the politician will say if asked that in the context of CSM discussions the subject would have been touched?

  4. My curiousity was whether or not we would see more of the private investors sell their shares after the official offer.

    Thanks Anthony, I did miss that.

    Strong corporate governance and impeccable levels of transparency are important generally and absolutely essential to capital market development. I fully support any and all measures that promote transparency.

  5. I think we probably seen the end of local trading for bl&p unfortunately :(. Only people I see trading shares now would be people selling to emera.

  6. Anthony, do you have a sense as to the reason (s) underlying the recent wave of ownership concentration in Barbados, outside of emera?

  7. I am trying to think of a list of companies that one would expect to trade on the BSE. So far I have:
    Automotive Art, Simpson Group, Williams Group, Chefette, Digicel. Maybe a minority of shares could intially be sold in the port, airport, bnoc.

    Given the nature of our economy I note that there are no construction firms and one hotel / property type firm.

  8. We it partly due to world/local recession .They are consolidate business expenses and eliminating excess cost. With consolidating mean they will unfortunately be redundancies and with that business cost overall goes down and you maximize profits. In some case they just eliminate a whole lot of paper work deal with shareholders and transfer profits to the main holding corporation. In other case instead of outsource work they now keep everything in house to consolidate expenses. In other case they consolidating the buisness to elminiate sectors that are not profitable. In the end i see it mainly cost saving measures across the board. In emera case i think they saw it as a very good buy. A profitable company that was trading way below it share worth with a mass of retained earning that could be applied to infrastructure growth if needed.

  9. What drives the decision for a company to list?

    Ok we select companies but what about the consumer/investor side?

    What will make them want to invest.

  10. The main reason you would put shares on the market is if you need investment capital for some project if it could not be raised through a loan or bond sale. Most of those groups don’t need any such finance and i don’t see them offering any shares any time soon. The exceptions being digicel , Williams group which do shares in public domain. William group ( bizzy side ) offers shares as bonus as such builds up employee loyalty in the company and profit sharing. I don’t see them doing any ipo on the bse but i applaud their effort with employees. Digicel international could do cross listing for shares but i don’t see them offering shares for digicel barbados anytime soon.

  11. In terms of the consumer side I think product offerings and marketing are important elements.

    Attractive mutual fund type offerings, such as sector funds have played an important role in many countries. For example a fund investing in the communications and utilties sector (our ccux index tracks these companies) may appeal to conervative income oriented investors. It would allow investors to invest in say all the power companies, media companies and cable and wireless companies across the region. I am not sure the mutual fund sector has done enough in this area, as well as in terms of marketing.

  12. With it stable and strong currency, social stability and education level, barbados should have a competitive edge in the creation and marketing of these investment vehicles regionally and to the diaspora.

    In my opinion financial services need to go far beyond the critical but perpetually threatened offshore financial services we now offer.

  13. As Anthony stated one of the primary reasons a company would offer shares is to raise capital and these companies don’t need to as they are big fish in a small pond with non existent or very limited competitors and a license to print money. Essentially they are privately held with a small number of shareholders and can access financing simply by making a phone call.

    That is the nature of business in small countries, some firms/individuals can end up with monopolistic control in some areas.

    It is different in other countries where many corporations try to have diverse ownership and access to capital markets when/ if needed.

    Recently the LSE & TSE announced plans to merge and although there is some opposition in Canada (over sovereignty and governance issues) many companies particularly in the mining industry are in favour since it provides more exposure of their corporations to millions of European clientele who are also potential investors.

  14. You are quite right David. These things are not easy and we will need a number of things to come together.

    My sense is that a regional perspective is critical, and if people start making some money, interest will grow.

  15. Banks Holdings Limited has called a group–wide staff meeting for tomorrow. Do you know if there is a major business development?

Leave a comment, join the discussion.