“Pan Equities was the No 1. Broker for 2010, capturing 26.43% of the value traded.”

If you have not already done so, then I encourage you to open a PanCaribbean stockbrokerage account as I believe that this year the market will reward investors who buy selected stocks. Also, bearing in mind the proposed Junior Market listings that are slated to come to market in 2011 – we all can recall the success of Lasco and Dolphin Cove, not to mention the returns realized to-date.

The response to the Jamaica Gleaner (GLNR) recommendation has been quite good so far – we welcome more orders, thank you. We believe that at its current traded price, GLNR still represents a good investment opportunity for investors, based on value and future income.

Today we present Kingston Wharves (KW) to you as another stock that we anticipate will do well in terms of price appreciation in the medium term.

Check out the details below:

Kingston Wharves Limited

*Price as at January 24, 2011

Description: The principal activities of the group are wharfing operations, cold storage and provision of security services primarily to the maritime Industry.

Critical Success Factors: The continued growth in revenues as a consequence of the establishment of the Caribbean Shipping Hub.

Investment Positives:

• The car transshipment hub established with one of the world’s leading auto liners is expected to boost revenues for the next several years
• Operational efficiency being realized by warehouse 5 has positively impacted KW’s bottom-line.
• KW repeatedly recognized as the leading multi-purpose Port Terminal Operator in the Caribbean.
• among the best performing stocks rising 29.87% at the end of 2010. Out performed the JSE market index which increased 2.28% over the same period.
  • Revenues were $2,154.65 million up from $1,877.54 million for the similar period in 2009, an increase of $277.11 million or 14.76%.
  • Net profits were $$370.34 million up from net losses of $45.74 million for the comparative period of 2009, an increase of $416.09 million or 909.68%
  • The company’s improved performance resulted from the increased volumes of containers, cars and bulk cargo processed.

  Recommendation: BUY

  With its improved performance, the projected increase in revenues for the next several years, and the stock trading at a lower than normal price to book value of 0.52X, KW is recommended a buy at its current market price.

  Send me your comments and feedback

  Kirk Brown

Investment Negatives: Utility costs, adverse movement in the exchange rate and the cost of finance.

Performance Highlights:

For the nine months ended September 30, 2010:

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