BICO’s shares trading way below value – Thirlwell
A lack of inactivity on the Barbados Stock Exchange (BSE) is depressing the share price of ice cream and cold storage company BICO Limited, according to a company executive.
Expressing dissatisfaction at the level of BICO’s share price in trading on the local stock exchange, Executive Chairman Edwin Thirlwell said due to the fact that shares were not changing hands, along with high levels of compliance and the risk-averse nature of shareholders, the BICO share price was lower than it ought to be.
The current share price is $2.16 on the BSE, well below the net asset value per share of just over $6.00.
“The share price is a factor well beyond our control. The Barbados Stock Exchange is not buoyant by any means. You only need to listen to the news every night, it tells you what is happening in Jamaica and it tells you what is happening in Trinidad and when it tells you what is happening in Barbados [little or] no trading. It is a difficult situation. There are a diminishing number of listed companies,” Thirlwell told a news conference at the company’s Harbour Road, St Michael office yesterday.
“So in fact, what we have is a shorter list of coated companies and a population not inclined to take risk at the moment. In fact, I think the profile of the entire nation is risk-averse at the best of times and even more so at the moment. So in fact, there is very little trading. And I think if you look at all the listed companies including people like Goddard [Enterprises Limited] who trade right around the region, they are well below their net asset value.”
The net asset value is the value of the entity’s assets minus the value of its liabilities. BICO currently has a net asset value of just under $16 million.
Thirwell said he was eager for the company’s shares to be trading more regularly and fetching a higher price.
The last bid date for BICO shares on the BSE was on February 24, 2017 when no shares changed hands.