Dec 2007 Financial News

CCMB Nine Month Update

Dec 18, 2007

Capital & Credit Merchant Bank Limited
(Nine Months Ended September 30, 2007)
All figures quoted in Jamaica Dollars unless otherwise stated

For the Nine Months (NM) Ended September 30, 2007, Capital & Credit Merchant Bank Limited (CCMB) reported Earnings Per Share (EPS) of 53 cents, down a significant 48.54 per cent or 50 cents on the corresponding EPS for fiscal 2006. Additionally, Q307 on Q306, the EPS was down 19 cents or 67.86 per cent from 28 cents to 9 cents.

CCMB last closed at a price of TT$0.80. The Company has forecasted an EPS of approximately TT$0.08 (JMD0.85) for fiscal 2007. At this forecast and the current price, this share is trading at a price to earnings multiple of 10 times, which is high for this Company. Thus, we recommend a SELL on this share.

Nancy Chen
Research Analyst