Businessuite markets march 2016 by Blackslate Media Group (BMG)

Businessuite Markets

March 2016

Content 2 Editorial

CREDITS Content Director

Kayla Wright kayla.wright@blackslateholdings.com The Businessuite News Centre BNC

2 BUSINESSUITE EVENTS CALENDAR

Publisher and Editor in Chief

4 FEATURE Top 100 Caribbean CEOs

Subscription and Distribution

6 COMMENTARY LEADERSHIP Invest In A Good Board of Directors TIME BASED PRODUCTIVITY A Dream Come True for “Type A” Executives - Schedule Auto Optimization BUSINESS ENVIRONMENT Winning Accounts vs. Winning Relationships 9 TRADING The Beginner’s Guide to the Stock Market 10 COVER STORY The Jamaica Stock Exchange; Converting Entrepreneurs To US$ Millionaires!

Aldo Antonio aldo@blackslateholdings.com

businessuitemagazine@gmail.com

Advertising Sales

businessuitemagazine@gmail.com

Graphic Design and Layout

Bonito Thompson bonito.r.thompson@gmail.com

Photo credits

Sourced from the internet and contributed

Social Media CLICK Digital Agency

Businessuite Markets

Businessuite Markets provides both the inexperienced and seasoned investor with a central point for information and intelligence on where, what and how to find the best investment opportunities and ways to invest to achieve their financial goals. It’s current and forward looking, informative and incisive. A must read especially for inexperienced investors. Businessuite Online, Businessuite Digital, Businessuite Magazine, Businessuite Today, Businessuite Minute and Businessuite News Channel are owned and operated by Blackslate Media Group. Info: 876-631-4505 (o) or 876-280-9192 (m) 876-458-3253 (Mobile)

PUBLISHERS

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Corporate Information

11 MARKET WATCH Junior Market Focus Further Afield

Blackslate Media Group Ltd, “Silicon Mountain” Mandeville Jamaica 876-631-5418 (Kingston Office) 876-458-3253 (Mobile) 876-631-4505 (Mandeville Office) 876-280-9192 (Mobile) To learn more about Blackslate go to www.blackslateholdings.com aldo@blackslateholdings.com

ISBN Number

ISSN 0799-4427 2

Businessuite Markets

March 2016

By Kayla Wright

Although it can be quite difficult to recall a time when doing business in Jamaica was so good that companies were making profits and workers felt well about their future, Jamaica has continued to make strides in its ease of doing business. This as the country maintained its position as the Best Country in the Caribbean to Do Business and the Jamaica Stock Exchange’s recognition by Bloomberg Magazine as the Top Performing Stock Exchange in the World for 2015. While several businesses have benefitted from these improvements in the Jamaican business environment, several entrepreneurs and small business owners continue to struggle to make ends meet; begging the question, why do some businesses fail during tough times while others succeed? Successful entrepreneurs, business owners and top-

EDITORIAL Entrepreneurship, Doing Business and the Top Performing Stock Exchange in the World level executives all appear to share three common characteristics that ultimately define their success: faith, focus and effort (FFE).

Faith Without faith, you are finished before you start. First and foremost, people need to believe in themselves. If you do not believe in yourself, it is certain no one else ever will. You then need to have faith in a vision. Make sure you have a crystal clear business vision— because the lack of a business vision coupled with the absence of faith makes it that much harder to execute with focus and effort.

As an entrepreneur, you also need faith in your team. Do you constantly complain about your team? When you have lost faith in your own team, I can guarantee they have lost faith in you. Identify each team member’s strength and think of ways to maximize these strengths to maintain and expand business opportunities always, but especially in challenging times.

Focus There is an amazing power in focus. Just think of a laser beam— a narrowly focused beam of light that is so powerful it can cut through steel. In the realm of business, focus

comes before work is in the dictionary. It does not matter how focused you are or how much faith you have in yourself, your vision or your team: you will not be successful without putting in consistent effort over time. Part of this effort must be a strategy for the enterprise. Too often as entrepreneurs and business owners, we are running the shop without a real plan, and this contributes to the “just making it from week to week” syndrome. Focused effort can help Hard work still matters. In an enterprises’ ability to this microwave world we better weather the rough live in, quick success and economic winds that are quick fixes have become blowing all around us. the expectations. The only place success Yes, only the brave harbor thoughts of starting their own business in this environment, yet it’s the only way to ensure you have control over your future. With FFE, your success possibilities can be increased. BM has similar powers. What do we need to be focused on? Focus on customers. Pick one audience and own it. Become the innovative expert in your field. Become a strategic thinker and scan the marketplace so that you can react and respond with actions that can foster the sustainability of your business. Think local and global business development and harness the power of technology.

Effort

Successful entrepreneurs, business owners and top-level executives all appear to share three common characteristics that ultimately define their success: faith, focus and effort (FFE).

Businessuite Events Calendar March 2016 March 7

March 7-9

March 10

Grace Kennedy Limited Investor Briefing (online conference)

Venture Capital Jamaica and the Development Bank of Jamaica Venture Capital Conference 2016: The Power Of Smart Capital Venue: The Jamaica Pegasus Hotel

University Council of Jamaica Seminar for Principals/ Presidents and Chairpersons Venue: Mona Vistors Lodge & Conference Center Kingston 5

BOJ Quarterly Press Conference Venue: Bank of Jamaica Auditorium

Businessuite Markets

March 2016

March 10

March 17

Women in Energy Conference “ Doing Power Differently” Venue: The Jamaica Pegasus Hotel

Minstry of Tourism and Entertainment Linkages Speed Networking Event Venue: Hilton RoseHall Resort and Spa

March 11

March 24

First Caribbean International Bank Limited AGM Venue: Hilton Barbados Resort, St. Michael, Barbados

The Jamaican Association on Intellectual Disabilities AGM Venue: The Knutsford Court Hotel 16 Chelsea Avenue, Kingston 5

National Commercial Bank Jamaica Limited (NCBJ) AGM Venue: Spanish Court Hotel

March 25 Caribbean School of Sales Management “Getting the Competitive Edge” Workshop Venue: College of Insurance and Professional Studies (CIPS)

March 16 Jamaica Teas AGM Venue: Jamaica Pegasus Hotel

FEATURE

Top 100 Caribbean CEOs 2015 Being a CEO is never easy. Beyond the need to motivate and lead your team effectively, there is also the added concern that should the business fail to perform, you are held accountable. However, too often CEOs are not recognized for the work they do. The Businessuite Magazine Top 100 CEOs for the Caribbean for 2015 represents the best of the leaders who have delivered solid results and kept businesses in the Caribbean region growing. They are also recognized for being instrumental in the growth of Caribbean companies, as well as

for “creating jobs, maintaining profitability for their shareholders, applying corporate governance and transforming” the region.

growth in after tax profits 2014 over 2013. Of the 100, only 30 qualified based on this ranking.

To ensure we placed them all on the same base, all figures were converted to US$ based on the exchange rates for the respective central banks as at December 31st 2014. Qualifiers for the 2015 ranking of the Top 100 Caribbean CEOs were first determined using a minimum of US$500,000 in profits for the year in review. Based on this ranking, only 67 of the 100 companies qualified. The group was further ranked based on their %

In some instances the high percentage change represents risks that were taken by the company resulting in massive increases in profits. This is specifically so for Sagicor Financial, Guardian Holdings and Mayberry Investments which saw massive growth Below, the Top 10 for the region are presented:

Businessuite Top 100 Caribbean- US$ Profit after Tax Chief Executive Offier (CEO)

Listed Company

US$000 2014

US $ 000 2013

Rank 2015

Stock Market

BSE

Dodridge Miller

Sagicor Financial Corporation

$73,938

$2,081

3453.33%

TTSE

Ravi Tewari

Guardian Holdings Limited

$62,497

$7,101

780.16%

JSE

Gary Peart

Mayberry Investments Limited

$6,332

$962

558.21%

JSE

Cedric Blair

Desnoes & Geddes Limited

$27,500

$11,386

141.52%

TTSE

Krishnadath Ramlogan (GM)

National Enterprises Limited

$62,720

$31,313

100.30%

BSE

Adrian Padmore (GM)

West India Biscuit Compant Limited

$2,953

$1,502

96.65%

JSE

Christopher Barnes

Gleaner Company

$1,580

$807

95.78%

TTSE

Jean-Pierre du Coudray

The West Indian Tobacco Company Limited

$76,334

$42,239

80.72%

JSE

Brian George

Supreme Ventures Limited

$8,110

$4,536

78.78%

BSE

Anthony H. Ali,

Goddard Enterprises Limited

$24,698

$17,166

43.88%

Change

Unlike the Trinidadian, Barbadian and Guyanese Stock Exchanges, Jamaican traded companies represented the majority of the Top 100. Boasting 53 companies on the Top 100, Jamaica was well represented in the 30 companies that qualified based on the US$500,000 mark and the need to see a positive percentage increase in profits. 4

Businessuite Markets

March 2016

Jamaica’s Top 10 Caribbean CEOs seen below, featured the fashionable Kingsley Cooper, former Red Stripe head Cedric Blair and the Investment savvy Gary Peart and Richard Byles.

Businessuite Top 10 CEOs for Jamaica Rank 2015

Chief Executive Offier (CEO)

Listed Company

US$000 2014

Mayberry Investments Limited

Desnoes & Geddes Limited

US $ 000 2013

% Change

$6,332

$962

558.21%

$27,500

$11,386

141.52%

Gleaner Company

$1,580

$807

95.78%

Supreme Ventures Limited

$8,110

$4,536

78.78%

Cargo Handlers Limited

$1,149

$799

43.86%

Jamaica Producers Group Limited

$3,124

$2,371

31.74%

Dolphin Cove Limited

$3,835

$3,028

26.67%

National Commercial Bank Jamaica Ltd.

$101,535

$80,372

26.33%

Sagicor Group Jamaica Limited

$74,243

$59,204

25.40%

Pulse Investments Limited

$1,439

$1,202

19.68%

Gary Peart

Cedric Blair

Christopher Barnes

The Click philosophy……“Creating compelling conversations and experiences between Brands and consumers and helping clients shift from interruptive messages to immersive experiences.” www.blackslatehldings.com

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March 2016

COMMENTARY

LEADERSHIP: Get a Good Board Of Directors The rewards of taking your company public come with huge responsibilities as you must be aware of the obligations and constraints of running a public company and adopt a suitable management style. For example “business decisions can no longer be self-serving and entrepreneurs must always be reminded of their fiduciary responsibilities,” warned the Jamaica Stock Exchange in one of its publications. The argument has also been made that when an entrepreneur is heavily invested in his company, he has the most to gain during good times and the most to lose when things

go wrong. That burden usually prompts better decision-making. Others argue that a person who found a company should rightfully profit from his or her efforts. But ownership of a public company also means giving up the right to keep decisions made behind closed doors private. Once the founder decides to take his company public and shares the ownership, the corporation is “obligated to provide timely, continuous reporting of corporate information as required by regulatory agencies,” according to the JSE. A key factor in this transition for the founding entrepreneur

is to ensure that they have a firm, strong, independent and professional board of directors. “There are definite differences in the responsibilities of directors of a public company and those of a private company. In a public company the responsibility to the shareholders takes precedence. The directors are entrusted with managing the affairs of the company in the best interest of the shareholders and are therefore accountable to them NOT the founder often times majority shareholder. For example, board members not directly involved in the daily operations can give advice and

provide objectivity and balance to management and lend credibility to the company’s reputation,” according to the Jamaica Stock Exchange’s publication about going public. While having directors with significant shareholdings has its benefits, directors enriched by massive shareholding may be tempted to throw their weight around and ignore the views of other directors and managers, Jain warned. Those kinds of leaders usually surround themselves with people who won’t stand up to them. This limitation of vision, knowledge and skill in most cases will negatively impact the growth of the business. BM

The directors are entrusted with managing the affairs of the company in the best interest of the shareholders...

By Francis Wade Management Consultant

If you are an executive who drives for results, you may be known around the office as a typical “Type A Personality”. In today’s business world, that’s usually not a compliment. Over the years, Type A’s have received a bad rap, known for their ability to be demanding, rude and abrasive. That view is changing, fortunately, as we focus more on the positive results they produce and how they are able to outperform others. To the rescue: new tools emerging that can help Type A’s continue their quest for results without the negative stresses that often come with it. The term “Type A” was coined by two cardiologists, Meyer Friedman and Ray Rosenman in the 1950’s as a way to pool 6

TIME BASED PRODUCTIVITY: A Dream Come True for “Type A” Executives Schedule Auto-Optimization traits shared by cardiac patients. However, recent findings have shown that only a single aspect of Type A behaviour explains the high stress. It’s called “impatience-irritability” and it actually has a negative effect on performance. This aspect of Type A behaviour includes anxiety, over-urgency, toughminded hostility. It explains the need to want other people to get to the point quickly. There is another aspect, however, that explains why Type A’s have more sales, higher GPA’s and set more aggressive goals than other types. It’s called, “achievement-striving”: being ambitious, rigidly organized, highly status-conscious, competitive, open to taking on more than one can handle,

proactive, and concerned with time management. Given these behaviours, how can you as a Type A produce even better results without the predicted stress?

1. Better Manage Time Demands You Create The typical Type A starts creating more time demands in their teenage years, in the form of self-generated tasks called “time demands.” If you are a Type A, you may recall the moment you realized that time demands are the link between your goals and your actions. This discovery led you to create more of them, plus ways to manage them effectively.

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Today, your mind manufactures these psychological objects in a relentless manner driven by what’s called the Zeigarnik Effect. It’s that nagging sense human beings have when a task is left incomplete. Bluma Zeigarnik’s work on this phenomena was recently updated by Ed Masicampo and Roy Baumeister. They showed that when we successfully manage a time demand, we get almost the same peace of mind as when it’s completed. That’s the reason Type A’s (more than other types) won’t ever be found without their smartphone, laptop or even a printout of their To-Do List and/or calendar. March 2016

2. See Things Get Worse and Respond Over the past few years, you have probably found yourself creating more time demands than ever before. Your life is more complex and you are unlike others who have decided not to grow their capacity to deliver. Instead, you have warmed to the challenge of finding better methods. In my book, “Perfect Time-Based Productivity - A unique way to protect your peace of mind as time demands increase” I explain why times have changed. Internet technology, mobile computing and other innovations bring more triggers for new time demands into our lives than ever before. The fact is, we see more information in a day than our grandparents saw in a month. This exposure fuels time demand creation.

Some Type A’s know this fact and have upgraded their skills, discarding old methods that are unsuitable for the number of time demands they must manage. In order to stay ahead of the Zeigarnik Effect, they must evolve. Their skill at managing time demands goes from the use of memory to the latest technology - “auto-optimizers.”

3. Finding New Tools For the past year, I have been experimenting with an autooptimizer called SkedPal. (The experiment is such a success I joined their Advisory Board.)

and flexible tasks. Fixed appointments are those time demands which involve other people and are therefore hard (or impossible) to rearrange. Flexible tasks are time demands which can be rescheduled at will. You also provide the app a number of “Time Maps” - usergenerated weekly priorities showing the best times to schedule certain tasks. For example, my best times for writing articles like this are on Wednesdays and Fridays between 4:00 AM -8:00 AM, and from Monday between 7:00 AM - 10:00 AM. Starting with your time demands, SkedPal uses the Time Maps you create to optimize your calendar within a few seconds. When a disruption occurs, a new optimal calendar is just a few clicks away, relieving the user of a burdensome chore. Now, for the first time, it’s easy to recover from unplanned changes in your schedule.

The good news is that there is better technology to capture, manage and complete time demands than ever before. For

The software program uses artificial intelligence to re-juggle your calendar with a single click. As a user, each day you update it with new fixed appointments

By Yanique Grant Customer Service Strategist

BUSINESS ENVIRONMENT: Winning Accounts vs. Winning Relationships

Winning an account is a great accomplishment and is usually celebrated by the boss and the team as this means more business and more money. Just as any other accomplishment achieved requires maintenance and consistency so does maintaining a consistent relationship with that account holder. Every business works extremely hard to acquire new customers. In order to acquire the business, your first step would be to make initial contact with the customer either through email, phone or face to face. After initial contact you now have the customer’s attention, they may purchase your service or product based on their needs. 7

example, your grandfather had a Little Black Book while you have an online address database. Consider how long it took him to send a single message to all his contacts.

Let’s take a look at a few examples: Scenario 1 - a newly opened print supplies business opens and they contact you to tell you about their products and services and also how competitive their prices are. You advise them that you already have someone that supplies you with toners and stationery for your office and you decline their offer. They call back one month later and remind you of their services and products because they would really like to stay front and centre in your mind in order to “win your account.” Six months pass and every month they call you to share the same information. One day they even show up at your office with sample products and a free

It’s hardly the end of the road

giveaway bag. After one year of courting you – you eventually start purchasing items from them. However, the difference in behaviour is they no longer call and check up to see if you need supplies and months pass sometimes before you even remember that they still exist. Scenario 2 – an automotive company has sales representatives who prospect at different events and one day while attending a business luncheon you were approached by one and you were intrigued by the cars they sold and also the features and benefits of these vehicles. The sales representative calls you weekly as they know you really want to change your vehicle. They contact the bank and

Businessuite Markets

- as a Type A you will continue to create more time demands than you can fit into a 24 hour day. However, as someone with strong Type A tendencies, I can share that having a reliable tool to reschedule my calendar on demand reduces the Zeigarnik Effect. At the same time, I fully expect my mind to adjust... and create even more time demands with the extra time and capacity it has gained by using SkedPal. So, no, I don’t see this as a final solution. But auto-optimization as a disruptive technology is here to stay. For Type A’s, it will become a necessary bridge to the future in which each of us manages more time demands with less effort, accomplishing more of our goals along the way. This is a dream come true. Francis Wade is the author of Perfect Time-Based Productivity, a keynote speaker and a management consultant. To receive a free summary of links to his past articles, send email to columns@fwconsulting.com

have the relationship manager at the bank call you, they also contact the insurance company and arrange for everything. Over 6 months have passed and you have encountered other automotive sales representatives but the original one that you met stands out in your mind as they always followed up no matter what. Therefore, when you were ready to make the purchase – you automatically called the representative who contacted you consistently. You finally receive your new vehicle and the representative called you a day after the delivery of your car and also a week after. However, one year has passed and you have not heard back from that representative. Scenario 3 – While collecting a document for work at a business March 2016

place, you are greeted by a young man that states he is in the business of website marketing. Your business is seeking global visibility through a website and social media. You exchanged contact information with the young man and through email – he sent all of the benefits that would be derived from doing business with him. The rates were not competitive; however, the solutions provided were valueadded and robust. After 3-4 months have passed, you now have your website running and you are extremely pleased with the features and flexibility that the website provides. However, 12 months have passed and apart from an email that you receive monthly with a bill for maintenance of the site – you have no communication or support dialogue with the developer as to how the content can be improved or new innovative ways that you can generate more traffic to the site. You are somewhat displeased with the quality of after sales service that is provided and you contact the developer to request some minor changes for the website – he is completely unavailable, he does not return emails

and you feel frustrated as you believed there would be some support provided after the site was developed. In all the above scenarios – we must recognize that winning the customers’ account is very important, however, building strong relationships is much more important. Customers do not want to be treated as transactions instead they would like to be treated as people. All customers want value added services. My challenge to you is think of your business offering and look at how you can offer value-added service to your customers….. Statistics have shown that people don’t remember what you did but they do remember how you made them feel. How do your customers feel after doing business with you – are your customers your biggest fans? Do they speak highly of your company? Do your team members feel proud to work at your company? When they wear their branded shirts with your company logo and go in public areas do they feel proud to represent your brand and company?

If the answer to any of these questions is NO! Your company, specifically your leaders need to look at why the team may feel this way and also why the customers feel this way because as we stated before, human beings usually remember how you made them feel! How do you make your team members feel? Do you really show them how much you care? How do you make your customers feel? Many companies focus on building accounts – SELL, SELL, SELL!!! After these prospects become your customers – how are you building those relationships? Do you really care about your customers as human beings vs. a transaction or a sale?

Tips for Building Relationships

Give back to your existing and loyal customers even if you are a monopoly. Customers like to know they are saving money or they are getting value like a free item or service for a month such coupons and complimentary gift certificates.

Use the information in your customer records such as birthday, anniversary, upgrades or specials in relation to a previous purchase a customer made.

Courtesy calls for customers just to see how their business is doing and also how they are doing as people.

Do business with the companies that do business with you. We should all support each other especially the people who support you. This will allow you to get to know your customers on another level as well.

Be human. This last tip is quite simple but if not applied can damage your business. A company is not made up of equipment, machinery, products etc. People are the ones responsible for how your employees feel and how your customers feel! Be connected in your words and actions, be deliberate when working with your team and customers and make sure you show compassion in your interactions because “People won’t show you how much they care, until you show them how much you care.”

We are a Caribbean B2B Branding and Creative Agency “Striking business decision-makers at a more personal and memorable level.” www.amkcomm.com

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March 2016

TRADING The Beginner’s Guide to the Stock Market The first thought a lot of people have when they receive lump sums or any form of extra cash, is to invest. However, many persons who have this first thought aren’t sure where to go from there. Based on this empty space, research and the information provided by the Jamaica Stock Exchange, the Businessuite Markets team has compiled “A Guide to the Stock Market and Trading” specifically for those who don’t know where to go or what to do. The Jamaican stock market is a vital link between companies needing capital and Jamaicans with money to invest. Through investments in stocks, investors become part owners of the companies of their choice and are able to participate in the companies’ growth and development. If you are serious about investing, one of the first things you need to do is learn the lingo.

of the dividend varies with the company’s performance and with the amount of cash on hand. With preferred stocks or shares, the rate is fixed. The Board of Directors of the company decides the amount of the dividends to be paid out. They may also decide to hold back some or all of the profits to expand the company’s operations. Dividends can be paid quarterly, half yearly or once per year.

Types of Shares There are two basic kinds of shares. They are Ordinary Shares, also known as “common stock” and Preference Shares. As a part of the percentage ownership described earlier, the ordinary shareholder or common stockholder usually has four basic

rights in proportion to receive a proportionate the number of shares share of the company’s owned. assets before ordinary shareholders, if the These include the right company should go to receive dividends bankrupt or be dissolved if and when these are for any reason. declared by the Board of Directors; the right to a vote at meetings of the shareholders; the right to claim a portion of the company’s undivided there is no assets, if the company is While guarantee in trading the liquidated; and the right to subscribe to additional Jamaica Stock Exchange stock or share offerings has identified 5 things before they are made both first time and available to the general seasoned investors must do before investing. They public. are: Meanwhile, the holders Collect and study as of Preference shares much information have certain rights and privileges over ordinary as possible about the shareholders. There company in which you are different classes of intend to invest. preferred shares, which Seek professional confer different rights. investment advice The most common from a broker or other types give the preferred qualified persons. shareholder the right to receive dividends Learn how to read and at a fixed rate prior to understand the basic payment of dividends to financial statements ordinary shareholders as well as the right to and reports which the

What To Do Before Buying A Share

companies listed on the Stock Exchange are required to publish.

Develop the habit of reading and understanding financial publications.

And After buying shares, monitor and track your investments by maintaining a daily record of advances or declines in the stock value Now that you know what a share is and have done your research to determine which company or companies you want to invest in. The next step is now to find a broker that suits your needs. The Stock Broker is a person whose business it is to buy and sell shares at one of the brokerage firms authorized by the Financial Services Commission and the Jamaica Stock Exchange to operate in Jamaica.

Share- A Share is a unit of ownership interest in a company. When you buy or receive shares in a company, you become a part owner of that company. This is also known as having equity in that company. The more shares you have in relation to the total number of shares issued by the company, the more of the company you own. Dividend- A dividend is a proportionate distribution of earnings (profits) of a company to its shareholders. With common (ordinary) shares or stocks, the rate 9

The information provided in this article was sourced from the Jamaica Stock Exchange Businessuite Markets

March 2016

COVER STORY

The Jamaica Stock Exchange; Converting Entrepreneurs To US$ Millionaires!

Marcus James

In the past several years, Jamaica has made several strides in being recognized as the best place to do business in the Caribbean. Of critical note is last year’s award to the Jamaica Stock Exchange for being recognized by Bloomberg Magazine as the #1 Performing Stock Exchange in the world.

Oliver Townsend

at JA$1.2 billion placed a JA$1 billion value on James’ shares; proof of the transformative effect of an IPO on an Entrepreneurs financial fortunes.

Mark Hart

while giving up 26.8% of the company. The IPO was oversubscribed and was closed within 3 minutes of opening. For his controlling interest of 110,000,000, He was able to unlock US$2 He is not alone. There million for his share. is a growing list of Entrepreneurs who have Stafford and Marylyn unlocked the equity value in Burrowes also took their their companies via an IPO. enterprise public in 2010 and raised JA$240 million Despite the skepticism of Oliver Townsend, founder in capital to take advantage many of the opportunity for and managing director of of the projected growth in local investors to achieve Knutsford Express, took Jamaican tourism. Prior to Millionaire status or follow in his company public in the offer and subsequent the footsteps of Michael Lee the last quarter of 2014, of the approval of World Chin to be identified globally a move that resulted in, of Dolphin’s purchase of as a billionaire; several his 35.2 million shares majority shares in the local entrepreneurs are valuing over US$1,806,316 company, as the owner of becoming US millionaires million, making him one of 274,949,000 shares of his through their listing on the a burgeoning number of US company’s stock, Burrowes JSE. dollar millionaires. stake in the company was valued at more than J$2.3 Marcus James is among billion, or about US$21 the growing list of Jamaican Another Example of this million. entrepreneurs to have trend is the move by taken their companies Mark Hart, cofounder Not to be outdone is notable public and become real and executive chairman Lascelles Chin, founder US$ millionaires. Access of Caribbean Producers of the LASCO Group, who Financial Services Limited Jamaica, who upon listing, boasts of being the first was established in 2000 and was able to unlock the value entrepreneur to have a listed on the Junior Market of of his 880,000,000 stock triple listing on the Jamaica the Jamaica Stock Exchange units in the company to Stock Exchange each of in 2009. At the time, realize a value of US$16.3 which have managed to James took the fledgling million or JA$1.856 billion. make him a US$ millionaire. yet profitable Access and became the first company to Meanwhile, Founder and list on the Junior Market of Chairman Derrick Cotterell Movements In Stock Prices the JSE. Proven Investment’s took his Derimmon Trading Trading on the Jamaica December 2014 acquisition public in December of 2013 Stock exchange takes place of 49 per cent of Access and netted JA$150 million on a daily basis and with Financial Services, valued 10 Businessuite Markets

Derrick Cotterell

each trade, the fortune of the Entrepreneurs are impacted. There is certainly risk and reward in this endeavor. Many question the reason and rationale for positive and negative movements in stock prices, as the reasons are not immediately obvious. But such is the nature of the market. None the less significant fortunes are made and lost with each of these trades.

Financial Jackpot For these Entrepreneurs with significant shareholding, taking their companies public was clearly a financial jackpot that could only be fully realized with an IPO, and with the faltering Jamaican dollar trading at around $122 to the greenback, that is still nothing to sneeze at. These entrepreneurs have tied their wealth to the success of their companies and have watched their bets on the Jamaica Stock Exchange pay off handsomely. With the potential to unlock this kind of significant wealth the question is asked, why have not more Entrepreneurs taken this IPO path? March 2016

For Financial Consultant Sushil Jain, the continued skepticism of the JSE is unfortunate. “It has been very successful in creating wealth for entrepreneurs and making millionaires. It is unfortunate that many businesses and individuals

Stafford and Marylyn Burrowes

Lascelles Chin

have not understood the benefits and have not taken advantage of the JSE. For whatever reasons, many Jamaicans are not so excited about the stock market. It is unfortunate that they do not realize how much they have missed”. BM

of critical note is last year’s recognition of the Jamaica stock exchange by Bloomberg magazine as the top performing stock exchange in the world

MARKET WATCH Junior Market Focus - Caribbean Flavours And Fragrances Limited Caribbean Flavors and Fragrances has seen a 59.7% boost in its net profits for the second quarter ended last December, when compared to the same period in 2014. According to the company’s financials for the period, this $17.268 million was over $6 million more than the amount recorded in the same quarter of the previous year.

as the sale of products to new customers” He says there was also a “6% year over year increase in the sale of fragrances for the quarter thereby contributing positively For the quarter to both the revenue and ended September 30, our profitability”. Caribbean Flavors and Fragrances reported However, gross profits with the net profits of $20.363 increased million dollars, a value company reporting of which Managing Director $32.856 million for the Anand James attributed first quarter compared to an “increase in the to $35.26 million dollars sale of flavours in the for the quarter ended in domestic market as well December. However, this represents a $3.095million dollar fall off when compared the profits for the first quarter of the 2015/2016 Financial Year.

James says general improvements were a result of growth in local and foreign revenues as well as improvements in the sourcing of raw materials. He says going forward, the company will continue to review and improve its purchasing strategy while attempting to increase revenue, contain costs and ensure customer satisfaction. James says since the selling and distribution costs are a direct reflection of the sales

growth, efforts will be made to review these expenses and distribution methods to ensure that efficiencies are obtained at all times. The Company, which was listed on the Junior Market in October of 2013 currently benefits from a ten year remission of taxes of 100% for the first five years and 50% up to year 10 provided the company remains listed for at least 15 years.

Further Afield GRENADA Warned To Focus On Imf Goals In Execution Of 2016 Budget

assistance; and follow through on growthenhancing reforms in the areas of business facilitation and labor The International legislation. Monetary Fund (IMF) has warned the government According to the of Grenada to focus on statement, Grenada the execution of its 2016 has made major strides budget in line with the toward restoring country’s agreement with fiscal and external the Fund and the new sustainability since its Fiscal Responsibility Act. last consultation in 2014. In its statement following last week’s visit, the IMF said key priorities in 2016 include focused reforms to ensure prudent and sustainable management of the public sector wage bill; application of the new system to register beneficiaries for social 11

resolve will be essential to secure lasting success of the home-grown program and broaden the reach of its benefits.

BRAZIL Economy Shrinks By 3.8% In 2015

Brazil’s economy saw a 3.8% fall last year, one of the largest fall The IMF says since then, experienced by other economic activity has major economies during picked up, debt has been the same period. reduced, and the balance of payments position has According to the strengthened. However, country’s National it says as the country Statistics Agency IBGE, heads into the last year Brazil’s negative growth of its ECF-supported was partly due to low program, renewed policy Businessuite Markets

commodity prices and sluggish global growth. The $130bn merger was announced by both The fall has also been Dow and DuPont in attributed to political December. paralysis that has hampered the country’s Dow CEO Andrew Liveris, efforts to tackle its will get $52.8m in cash economic problems, and stocks (including including a budget deficit his $40m retirement that has reached 10.8% package. Meanwhile, of GDP. Edward Breen, who was appointed as DuPont’s CEO in October, will receive $27.2m. DOW And Dupont Heads To Get $80M The new DowDupont Leaving Bonuses Company is to be broken into three businesses The heads of Dow and focusing on agriculture, DuPont are set to receive material sciences and a combined $80m leaving specialty products over a bonuses following the tie two year period. up of the two companies. March 2016

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March 2016