Old Colonial Thinking: Keeps The Stock Valuation Of Caribbean Company’s Stagnant

The owners and investors of private companies in the Caribbean make millions, and the few share-holders are far from getting great dividends. Whilst in the U.S and Asia and Europe there are many small investors that are cab-drivers, teachers, construction workers and Deli-owners etc. and some do very well owning shares in companies that trade on the NYSE, NASDAQ, London Exchange and Asia Stock Markets, Etc.”

The big business news in the Caribbean today, and for the past week, was that ‘Seprod Ltd (SEP)’, a Jamaica based manufacturer is moving to acquire a 100 year-old Trinidad & Tobago company, A.S. Bryden & Sons Holdings, “to create the leading integrated manufacturing and distribution group in the Caribbean,” the companies said In a joint announcement.

For the sake of clarity we will first do all the proposed calculations in U.S Dollars.

The current ‘Ask Price, per share’ for Seprod on the Jamaica Stock Exchange is hovering around $65-$70 Jamaican Dollars, which is equivalent to $0.45USD. (45cents), if you were able to buy 1,000 shares of Seprod Ltd. the cost would be $450USD.

Based on the total shares of Seprod Ltd. its value (market capitalization) is hovering around $330-million USD

Company Profile
“Seprod Limited operates in two business segments: Manufacturing and Distribution. The Manufacturing segment includes the operations for manufacturing and sale of oils and fats, corn products, cereals, milk products, juices, sugar and biscuits. The Distribution segment is engaged in the merchandising of consumer goods. The Company’s subsidiaries include Belvedere Limited, which is engaged in agriculture business; Caribbean Products Company Limited, which is engaged in the manufacture and sale of oils and fats; Golden Grove Sugar Company Limited, which is involved in the sugar production; Industrial Sales Limited, which is engaged in the sale of consumer products; International Biscuits Limited, which is involved in the manufacture and sale of biscuit products; Serge Island Dairies Limited, which is engaged in the manufacture and sale of milk products and juices; Serge Island Farms Limited, which is engaged in dairy farming, and Xaymaca Limited, which is engaged in investments business.”

Seprod Limited, Headquarters, Marcus Garvey Drive in Kingston

The press release of the acquisition, said. . .
“Their combined revenues of Seprod Ltd. and A.S. Bryden & Sons Holdings is estimated at US$500 million. Together, Jamaica-based Seprod and A.S. Bryden, with a team of close to 3,000 employees, will supply food, pharmaceutical, premium beverage, hardware and industrial companies with an expanded portfolio of their own manufactured brands.”

Company Snap Shot: Jamaica Stock Exchange

In March of 2016 the Jamaican Government sold several million shares that it held in Seprod Ltd. (ref: Jamaican Gleaner) that was worth $2.5-Billion Jamaican dollars. Back then the price per share was $18.50 Jamaican dollars, today if you owned 1,000 of those shares and held it for 5 1/2 years you would have quadrupled your money.

But although those returns look attractive, many people in the Caribbean just don’t see it as a safe place to invest their money, the reason may just be that the “Old Colonial Thinking: is the reason that the stock valuation of Caribbean company’s remain stagnant:”
But New Thinking Is On The Horizon !

Trinidad Stock Exchange
Valuation: Market Cap $17.65 Billion USD

Jamaica Stock Exchange
Valuation: Market Cap $15.96-Billion USD
Founded 1968

Barbados Stock Exchange
Valuation: Market Cap $3-Billion USD (2021)
Founded 1987

Eastern Caribbean Securities Exchange
Valuation: Market Cap $3.5 Billion USD

Guyana Stock Exchange
The first trades took place June 30, 2003 with 12 companies on the register.

Written & Compiled by:  / digitalCaribbean,LIVE Staff writer – Tuesday, May 10th. 2022 – channel1belize@gmail.com