Dennise Williams, Staff Reporter
Mayberry's headquarters on Oxford Road, New Kingston. - FILE
THE MAYBERRY Investments Limited (MIL) pulled in $1.8 billion when it listed on the Jamaica Stock Exchange (JSE). The excitement over the February private placement and subsequent April Initial Public Offer (IPO) was tangible. Prospective investors salivated over the opportunity to make big money - and many did.
That was then.
A combination of the usual summer investing malaise and news from MIL of outgoing auditors and executives has dampened investor sentiment. The price has dipped below the private placement price, recovering somewhat to close at $4.40 yesterday.
According to chairman of MIL, Chris Berry, what happened was simply based on market dynamics.
Mr. Berry gave the Financial Gleaner an exclusive interview at the monthly MIL investors seminar held at the Knutsford Court Hotel, New Kingston, on Wednesday. He addressed several concerns surrounding the company.
MAYBERRY'S PERFORMANCE ON THE JSE
"Our price has not dropped as much as other stocks during the summer. If you look at the IPO price of $5.05, it closed today (Wednesday) at $4.20. Other stocks have fallen more than that. Lascelles was as high as $370 and now it is $290. It is all relative; we have only been listed since April."
However, he admits that on Wednesday, the company had received many calls from nervous investors. "Yes, investors have called our offices because of the recent share price movement. But anxiety is typical of people over-invested in an asset class. You are never to have more than 10 per cent of your portfolio invested into a stock. The stock market is a volatile place, and the performance of the stock market has not been good this year."
Although not making any predictions about the future price movement of MIL, Mr. Berry states, "The proof of the pudding is in the performance. Our focus is on growth, corporate governance, and trying to build a much stronger, deeper team."
DEPARTURE OF AUDITORS
"It is not the first time we have changed auditors. However, it is the first time since we have become a listed company. But consider that from now on, everything we do will be the first time as a listed company. We are sensitive to that, and we will issue a release shortly."
FUTURE DIRECTION OF MAYBERRY
Mr. Berry explains that contrary to the perception by some that the company only deals with the top five per cent of Jamaicans, his firm caters to the needs of those "who have embraced the investment lifestyle, and want to save and invest for the future."
As such, MIL will look to expand its depth of money management services. Currently, the company offers stocks, bonds and fixed income services tailored for individual clients.
"Understand that an investment company is different from a manufacturing or service company. We invest money on behalf of clients. When new money comes in, we don't have to expand our infrastructure. We search for new entities to invest in or increase our money invested in existing entities."
And to facilitate the need for new sources to invest in, the company is now looking at the arena of private equity.
Mr. Berry said, "It is a well developed area. Let us be clear that we will not be offering venture capital. The focus will be on medium sized companies that have a track record of performance that need money to expand. We will focus on taking the company to the next level through either debt or equity."
And this has garnered great interest from MIL clients. "We have identified new capital to use for the project from others who will commit to the venture. There won't be a significant amount of MIL money involved."
Mr. Berry explains that investors who want sure returns should look to the money market. However, for serious investors, he states, "The key is to buy into companies that demonstrate that they can grow over time. I am optimistic that our financial results will speak for themselves."
