Ashford W. Meikle, Business Reporter

The CEO of Mayberry Investments, Gary Peart (left), listens to a point made by the company's Chairman, Christopher Berry, to a shareholder at the company's annual general meeting on Monday at the Knutsford Court Hotel on Chelsea Avenue in New Kingston. - Winston Sill/Freelance Photographer

Senior executives and managers of the brokerage and financial services firm Mayberry Investments Limited (MIL) bought almost 1.7 million of the company's shares in the past four months, a move which chief executive officer Gary Peart says reflects optimism in the company's long-term prospects.

Mayberry is currently trading below its book value and has attracted the interest of some investors looking for bargain stocks.

Peart and connected parties bought almost 600,000 Mayberry shares in the last month. MIL chairman, Christopher Berry, bought about 700,000 shares in the same period and marketing manager, Kayree Berry-Teape, recently bought 250,000 shares. Another executive, Finance and Administration Director, Sharon Harvey-Wilson, has also purchased shares.

Those purchases occurred around the same time as the sale by Apex Health Centre of 7.1 million shares to Dr. Patricia Yap, Berry's wife.

"When I look at the long-term value of the stock, it's a good buy," Peart told Wednesday Business on Monday.

"I am one of the leaders of the company and if I don't have faith in my company then why should somebody else buy the company?" he asked rhetorically.

On Monday, Mayberry traded at $2.45, representing a 34 per cent year-to-date decline on its price.

Stock option plan

Peart told Wednesday Business that with shareholders approving a proposed employee stock option plan at last July's annual general meeting - which will set aside some 30 million shares, or 2.5 per cent of the company's share capital - he expected his staff to invest in the company.

"I will continue to buy equity in the company that I am a part of and there are a couple other executives who believe that way and a lot of my staff members believe that way. In fact, some 60 per cent of Mayberry staff members have shares in the company," said the CEO.

Analysts agree that Mayberry is a good buy, with Steven Gooden of Pan Caribbean Asset Management (PCAM) saying it was rare to find a financial company trading at a discount to book value.

"Typically, those companies trade at closer to one and a half times their book value while Mayberry is trading at closer to 0.95," said Gooden.

Just over two weeks ago, PCAM snatched up some 20 million MIL shares and, in effect, became the third largest shareholder.

But investors have not always been kind to Mayberry, whose earnings per share and price earnings ratio have traded well below the industry average over the last four quarters.

The company listed at $5.05 last April but by the end of the year, it shed almost 27 per cent, trading at $3.70.

Up to Monday, it returned a loss of eight cents on its earning per share (EPS), compared to the industry average of $4.80, while its price earnings ratio was a negative 32.24, judged against the industry average of 9.78.

ashford.meikle@gleanerjm.com