Gervase Warner

MASSY Holdings CEO: Gervase Warner

MASSY Holdings CEO, Gervase Warner, told an investors’ conference in Jamaica yesterday that the T&T group “expects we will be able to sustain” the group’s performance in the future, given the trajectory of the company’s results in the three years between 2019 and 2021.

Warner delivered a presentation at Jamaica Stock Exchange’s 17th regional investments and capital markets conference yesterday ahead of today’s cross-listing ceremony, which is part of the conference.

Today’s listing of the Massy Group would be the second time a major T&T company has cross-listed on the Jamaica Stock Exchange within the last year, following the listing of Guardian Holdings Ltd there last May.

“The share price that you have seen escalate is a reward for what people are seeing the Massy Group offers as an investment opportunity. Coming to Jamaica, we are not done yet. Listing in Jamaica gives us tonnes of opportunity to unlock further value,” Warner said.

Emphasising that Massy was delighted to be cross-listed on the Jamaica Stock Exchange, he said: “I would like to say to you here and to anyone else listening, that if you have capital and want to invest it consciously in a way that is going to make a difference, and have handsome returns to you, please invest in Massy.”

After his presentation, Warner was asked from the floor whether Massy was listing in Jamaica because its shareholders want to export foreign exchange from the country, given the easy access of US dollars there as opposed to in Trinidad.

“Definitely not,” Warner said, adding that Massy’s listing in the north Caribbean country was an opportunity for the company “to enjoy the benefit of a broader shareholding group. The idea of extracting capital from Jamaica would be difficult to pull off. You would have to get a significant number of shareholders to sell in Jamaica and then convert that to hard currency and take it out of the country. We have a great deal of shareholders, with the company’s performance, who are holding on to their shares. In fact, one of the challenges we think we are going to have with this cross-listing is getting more shares to be listed on the Jamaica Stock Exchange.”

In an analysis of the company, dated January 25, NCB Capital Markets (NCBCM) vice president of strategy, research, innovation and projects, Annya Walker, placed a one-year target price of $134.84/$5.84, after the proposed stock split. NCBCM’s recommendation is that Massy is a ‘buy,’ once the stock is cross-listed.

But Walker stated: “Massy’s shares may not have a strong market performance once cross-listed because Trinidadians may opt to sell their shares on the JSE to take advantage of the better liquidity, which may depress the price. This increase in supply may delay progression towards our target price. However, given the plans the company has unveiled, we view Massy as an attractive buy for investors over the longer term.”

In his conference presentation, Warner took his audience of Jamaican investment professionals through the transformation of the company from Neal & Massy Ltd, a conglomerate with many companies doing different things, to Massy Holdings Ltd, an investment holding company focused on developing its three portfolios—integrated retail, motors and machines and gas products.

“Where we are, is that we have an energy in our group of companies that quite frankly I find is magical. We have this energy of confidence. These steps—to devolve autonomy, to focus the portfolios, to give the executives and employees the opportunity to build wealth, when there is strong growth and performance from our business—have created this confidence, this sense that we can do things,” Warner said.