Sunday 29 November, 2020

Proven regains US$35 million in market cap

Proven Investments' US dollar stock jumped 25 per cent on Monday in a recovery of its decline on Friday.

It was also the top moving stock on the trading day followed by Caribbean Cement Company, up 17 per cent, and Transjamaican Highway's US dollar denominated stock, up 14 per cent. The stock traded thinly with nearly 10,000 units trading hands in comparison to the largest trade in three months which occurred on Friday with over 1.4 million units.  It lost one-quarter of its value on Friday to close at US$0.21 but regained the lost ground Monday to close at US$0.26.

The change in price, while only pennies, represented a movement of US$35.4 billion in the total value on the market. That’s because the market capitalization increased from US$128.6 million (J$19.3 b) on Friday to US$164 million (J$24.6 b) on Monday. The stock has 625 million in total issued shares.  

Proven, which operates a private equity firm, also has a separately listed company under the same name but in Jamaica dollar currency. The Jamaican dollar stock lost only 1.8 per cent on the day.

The sale of the units on Friday would have resulted in the new shareholders cashing in on the stock at a discount but also getting the benefit of the potential upcoming dividend. On November 2, the board of Proven will meet to consider making a dividend payment to its ordinary shareholders.

Proven issues quarterly dividends of about US$0.0013 which would have equated to nearly US$1,800 for 1.4 million units valued at about US$350,000.

Proven made profit of US$1.41 million for its June 2020 quarter or 42 per cent lower than a year before due to the ongoing volatility and considerable economic uncertainty surrounding the COVID-19 pandemic.  

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