11 thoughts on “CARIBBEAN STOCK REPORT 13 June to 27 June 2011

  1. C&W declared another 29.7 cents dividend for the year ended 2011. Total dividend return for that year has exceeded 10%. Why is this stock providing such a high dividend return – is there high risk involved or a market that is misunderstanding and undervaluing the stock? Dr. R, did your team look at this?

  2. BL&P after the sale – the shareholders possibly acted hastily.

    Business Monday: BL&P shows improvement


    By Nadia Brancker

    THE higher electricity rates which were allowed early last year by the Fair Trading Commission have resulted in improved profitability for Light & Power Holdings Limited.

    The company has recorded a net income of $46.0 million in 2010 compared to $28 million in 2009.

    In addition, revenue increased from $415.3 million in 2009 to $508.1 million last year.

    Chairman of Light & Power Holdings Limited, Wayne Crowley, said in the company’s Annual Report for 2010 that “the improvement in our financial position was due in part to higher electricity sales revenue arising from a 0.7 per cent increase in electricity sales over 2009, as well as an increase in the basic rates for electricity which was granted by the Fair Trading (FTC) and came into effect on March 1, 2010.”

    The company stated the rate increase, the first in 26 years, was necessary for the utility to continue to maintain a high level of quality service and reinvest in new plant and equipment to meet customer demand for electricity and to replace older units which needed to be retired.

    Crowley believes, “The growth in sales, although modest, is heartening and demonstrates the continued value placed on electricity service at a time when the world continued to face severe economic challenges, which have impacted Barbados over the past two years and continues to dampen economic activity and growth in the island.”

    The company’s earnings per share of 257.3 cents compared favourably to 148.2 cents in 2009. The dividends paid remained at 40 cents per share, the report showed.

    Last year, Tropical Storm Thomas struck the island, interrupting electricity supply to some customers for up to two weeks. The Board was happy to report that the Company’s Self Insurance Fund, which was established in 1998, provided the $3.3 million required to repair damages to BLPC’s electric utility transmission and distribution system resulting from the storm and cover the net loss to operating income for that same period.

    The Self Insurance Fund therefore allowed for repairs to be carried out without negatively impacting on the electricity utility’s cost to customers or returns to its shareholders, the report said.

    Crawled pointed out, “The utilities within the Caribbean region face many common challenges such as heavy dependence on imported oil, with resulting exposure to price volatility, global warming and pressures to introduce more renewable energy and uncertain energy policies and frameworks.

    “Adding to this the increasing complexity involved in running a modern electricity utility that requires sophisticated information and communication technologies is making it difficult for utilities with relatively small staff numbers to build competence in all areas that require specialist skills.”

    In May 2010, Canadian energy company, Emera, purchased a 38 per cent shareholding in Light & Power Holdings trough the purchase of CI Power, a subsidiary of Leucadia National Corporation.

    Crowley said, “The company views this s a very positive development, and one that can bring benefits to the shareholders of Light & Power Holdings and customers and employees of The Barbados Light Power Company ltd. Emera’s expertise will be invaluable as the company moves into an increasingly complex and challenging environment.”

    “Your Board of Directors is confident in the skills and expertise that exist within BLPC and sees the potential to leverage this capability to grow Light & Power Holdings in the electric utility and broader energy business throughout the region,” assured the Chairman.

  3. Because there is a lack of faith by the general population for the bse. They don’t see it as an investment opportunity. They understand banks quite well. and have left some, for the credit unions. those are now try to do the same things as some banks. The average bajan without having tax concession for savings will not save.

  4. David, my view is that the main cause of under valuation is low levels of trading. if there is no trading the stock price does not move to reflect market opinions on the value of the company.

  5. Lime’s annual report does not provide any comment as to the dividends for this year. But we will try and research it a bit more.

  6. BSE trading report for 10-Jan-11 interim dividend of $0.148 payable 31-Jan
    BSE trading report for 1-Feb-11 special dividend of $0.174 payable 28-Feb
    BSE trading report for 16-Jun-11 final dividend of $0.145 payable 15-Jul
    BSE trading report for 16-Jun-11 special dividend of $0.152 payable 15-Jul

  7. A. Freeman | June 13, 2011 at 10:00 AM | Alex McDonald, assuming that you read BU, have you considered using the LIME, Barbados competitions to expand the shareholder base, an opportunity that the competitors may not be able to offer their customers. Rather than providing only consumables or cash, prizes may be partially in the form of C&W shares purchased on the BSE – no need for additional shares to be issued – the one requirement to be that the prize shares must be held for a minimum of a numbers of years, so that the new shareholder experiences the benefit of being a shareholder. I see the potential benefits to both LIME and its customers.

    Where there is a choice to support either a publicly traded company or a private company, such as the current situation within the telecommunications industry, I support the publicly traded company, as it offers the opportunity to invest and share in its success.

The blogmaster dares you to join the discussion.