Dennise Williams, Staff Reporter
Vernon James, of Dehring, Bunting and Golding Limited - FILE
INVESTMENT BROKERS say that Pulse Investments is preparing to list on the Jamaica Stock Exchange (JSE) in a very hostile equity-investing environment.
Vernon James, head of the stock broking division at Dehring Bunting and Golding says: "The market right now is harsh. It is weak, so Pulse is not entering in the strongest period. Just look at other stocks. There have been moderate financial results but investors have not budged. The lack of confidence from the last half of 2005 continues and will continue for the foreseeable future."
LUKEWARM RESPONSE?
Another broker from a listed brokerage firm speaking on the condition of anonymity said, "Given this environment, the response will be lukewarm.
"My understanding is that Pulse is not a widely-held stock. For the stock price to move, the company must show potential for profit growth. So it is a wait and see situation."
Another issue is the broker knowledge of the stock. Mr. James said, "To be honest, I haven't taken a look at Pulse since it has been off the market so long."
Mr. James continued, "Analysts do not have the latest financials, so I can't comment on the state of the company."
However, the prevailing market conditions continue to dominate the conversation.
"Given the mood of the market, the re-listing might not generate the interest that is hoped for," Mr. James notes.
BROKER-DRIVEN
Our anonymous broker added: "There is no appetite in the market. The pension funds are really the only ones in the market right now."
Mr. James supports this sentiment: "Right now, the market is broker-driven. Although prices are low, retail investors are nursing wounds from last year."
