Stocks rallied into month end as rising stocks exceeded decliners, greater than two to one at the end of market activity on Tuesday, but closed out August more than 3,600 points below the July close, with the volume of shares trading on Tuesday rising 82 percent and the value inched 11 percent higher than Monday, on the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index spiked 2,773.29 points to 459,842.64, the JSE Main Index climbed 2,670.20 points to 417,864.90 and the JSE Financial Index popped 0.59 points to close trading at 101.46.
Market participation remained elevated with 50 securities traded compared to 51 on Monday, leading to a rise of 28 stocks, 11 declining and 11 closing unchanged. The PE Ratio, a measure used to compute appropriate stock values, averages 16.3 based on ICInsider.com’s 2021-22 earnings forecast.
The market closed with 17,371,190 shares trading for $150,660,788 versus 15,594,454 units at $851,732,015 on Monday. Radio Jamaica led trading with 48.2 percent after exchanging 8.37 million shares, followed by Wigton Windfarm 13.3 percent, with 2.31 million units and Sagicor Group 6.8 percent with 1.18 million shares.
Trading averages 347,424 units at $3,013,216, versus 305,774 shares at $16,700,628 on Monday and month to date, an average of 480,039 units at $8,561,190,compared to 487,063 units at $8,855,045 on Monday. July closed with an average of 322,932 units at $15,201,099.
Investor’s Choice bid-offer indicator reading has 17 stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Caribbean Cement dropped $4 to $106 exchanging 11,162 shares, Caribbean Producers slipped 35 cents to $4.35 after trading 38,382 stock units, Eppley popped $2.35 to $41.35, with 2,083 shares changing hands, Eppley Caribbean Property Fund surged $8.44 to $46.75 in switching ownership of 125,066 units, First Rock Capital gained $1.35 to end at $13.75 in swapping of 4,396 shares. GraceKennedy fell $2 to $102, with 65,411 stocks changing hands, Guardian Holdings spiked $9 to $590 in trading 1,338 units, Jamaica Broilers popped $1.05 to $34.45 exchanging 62,613 stock units. Jamaica Producers advanced 50 cents to $24.50 in trading 19,496 units, Jamaica Stock Exchange jumped 85 cents to $18, with an exchange of 93,267 shares, JMMB Group lost 70 cents in closing at $38 after 141,511 stock units crossed the market. Kingston Wharves climbed $2.25 to $48.75, with 878 units changing hands, Mayberry Investments shed 39 cents to $5.75 in switching ownership of 11,020 shares. Mayberry Jamaican Equities increased 30 cents to $9.30 while exchanging 1,960 stocks, MPC Caribbean Clean Energy dived $10.50 to $125.50 after trading 40 stock units, NCB Financial Group advanced 99 cents to $132.99 with an exchange of 7,642 shares. 
PanJam Investment popped $2 to end at $64, with 4,216 stock units clearing the market, Pulse Investments rallied 26 cents to close at $3.60 after exchanging 435,638 units. Radio Jamaica dived 70 cents to $3.50 after exchanging 8,366,194 stock units, Sagicor Group rose $1.10 to end at $58 in trading 1,176,211 units, Scotia Group rallied 70 cents in closing at $39.50, with 4,106 stock units crossing the market. Seprod rose 79 cents to $64.79 in exchanging 2,978 shares and Sygnus Credit Investments popped 65 cents to $17 with the swapping of 203,098 units.
In the preference segment, JMMB Group 7.25% rallied 19 cents to $1.30 after trading 426,970 stock units and JMMB Group 7.35% – 2028 climbed 17 cents in closing at $3.20 while exchanging 237,799 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Archives for August 2021
Junior Market loses ground Tuesday & August
Trading closed on Tuesday with the Junior Market enjoying broad based participation of stocks on the final day of the month and with the market index falling as the volume of stocks exchanged declined by 19 percent with a 24 percent decline in value from Monday with the market declining for the third straight day to end August just the July close.
Market activity led to 39 securities trading, up from 36 on Monday and ended with 13 stocks rising, 21 declining and five unchanged.
At the close, the Junior Market Index dropped 29.31 points to settle at 3,308.60 just short of the 3,322.77 points close for July. The PE Ratio, a measure used to compute appropriate stock values, averages 11.6 based on ICInsider.com’s 2021-22 earnings forecast.
A total of 14,966,257 shares traded for $42,120,614, down from 18,530,465 units at $55,498,597 on Monday. Future Energy Source led trading with 66.3 percent of total volume, after an exchange of 9.92 million shares, followed by Jamaican Teas 13 percent, with 1.94 million units and Lumber Depot 3.8 percent, with an exchange of 570,494 units.
Trading averaged 383,750 units at $1,080,016, short of 514,735 at $1,541,628 on Monday and month to date, an average of 464,471 units at $1,258,652, closely tracking 469,205 units at $1,269,129 on Monday. July closed with an average of 163,918 units at $481,755.
Investor’s Choice bid-offer indicator shows six stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Access Financial advanced 45 cents to $21 trading 7,567 shares, AMG Packaging slipped 6 cents to $1.60 swapping ownership of 52,341 units, Cargo Handlers fell 10 cents to $8.40 with an exchange of 158,001 stock units. Caribbean Cream shed 30 cents to end at $5.40 with a transfer of 39,800 stocks, Dolphin Cove jumped $1.75 to $12 with 75,011 shares changing hands, Express Catering lost 6 cents to finish at $5.44 with 26,568 stock units traded. Fontana dipped 18 cents to $6 with 92,284 stocks passing through the market, Future Energy Source dropped 24 cents to $2.40 with an exchange of 9,922,250 shares, Honey Bun shed 50 cents to close at $8.50 with a transfer of 9,474 stocks. iCreate slipped 5 cents to 78 cents with 83,492 units changing hands, Iron Rock Insurance fell 38 cents to $3.50 trading 36,999 stocks units, Jamaican Teas popped 40 cents to $3.85, with 1,942,373 shares passing through the market.KLE Group lost 7 cents to $1.15 with an exchange of 1,111 units, Lasco Distributors rose 5 cents to $3.85 with a transfer of 10,499 stock units, Lasco Financial dropped 14 cents to $2.99 with 99,748 shares changing hands.
Lasco Manufacturing advanced 17 cents to $4.99 with 8,405 stocks passing through the market, Limners and Bards jumped 58 cents to a 52 weeks’ close of $3.73 with an exchange of 308,947 stock units, Lumber Depot gained 10 cents to settle at $3 with a transfer of 570,494 units. Mailpac Group rose 8 cents to $3.76 with 165,147 shares changing hands, Main Event dropped 48 cents to $4.27 with investors switching ownership of 14,501 stock units, Medical Disposables rose 5 cents to $5.25 with an exchange of 16,263 stocks. Paramount Trading fell 14 cents to 96 cents with a transfer of 267,362 units, SSL Venture lost 10 cents to land at 64 cents with 55,051 stock units changing hands and tTech shed 59 cents to close at $4.20 with 237 shares crossing the exchange.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE US Market rallies into month end
Trading on Tuesday ended with the volume of shares changing hands trailing Monday’s volume by 73 percent and the value that was 97 percent less at the close of the US dollar market of the Jamaica Stock Exchange, resulting in more stocks rising than falling.
Trading ended with six securities changing hands, compared to four on Monday with prices of three rising, two declining and one remaining unchanged.
The US Denominated Equities Index gained 4.54 points to end at 185.29, down marginally on the close in July. The PE Ratio, a measure used to compute appropriate stock values, averages 11.7 based on ICInsider.com’s forecast of 2021-22 earnings.
Overall, 511,853 shares traded for US$9,997 versus 1,916,232 units at US$343,397 on Monday. Trading averaged 85,309 units at US$1,666, compared to 479,058 shares at US$85,849 on Monday, while month to date averages 210,413 at US$12,959 in contrast to 217,631 units at US$13,611 on Monday. July ended with an average of 178,541 units for US$18,099.
Investor’s Choice bid-offer indicator shows four stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, First Rock Capital rallied 0.3 of a cent to 7.5 US cents in switching ownership of 68 shares, Proven 
Investments gained 0.9 of a cent to close at 23.9 US cents after exchanging 21,891 stock units, Sterling Investments lost 0.12 of a cent to end at 2 US cents after exchanging 223 units. Sygnus Credit Investments Ja$ share dropped 0.4 of a cent in ending at 12.2 US cents, with 270 stocks clearing the market, Sygnus Credit Investments US$ share remained unchanged at 13 US cents while exchanging 3,839 units and Transjamaican Highway climbed 0.09 of a cent to 0.9 US cents, with 485,562 stocks changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market suffers setback on Monday
Market activity ended on the Main Market on Monday with the volume of shares trading marginally lower, with the value jumping 394 percent from Friday and the market indices falling, as declining stocks outnumbered rising ones by some distance.
The market closed, with the All Jamaican Composite Index lost 641.27 points to end at 457,069.35. The JSE main Index dropped 520.39 points to 415,194.70 and the JSE Financial Index lost 0.26 points to settle at 100.87.
A total of 51 securities traded on Monday compared to 49 that traded on Friday, and ended, with 17 stocks rising, 25 declining and nine remained unchanged.
The PE Ratio, a measure used to compute appropriate stock values, averages 15.7 based on ICInsider.com’s earnings forecast for 2021-22. The market closed with 15,594,454 shares changing hands for $851,732,015 as NCB Financial dominated trading on Monday, versus 15,660,104 units at $172,250,884 on Friday.
NCB Financial led trading with 37.3 percent of total volume as 5.81 million shares changed hands, followed by Wigton Windfarm 11.6 percent, with 1.81 million units, 1834 Investments 9.9 percent market share, with 1.55 million units, Transjamaican Highway with 8.3 percent market share or 1.29 million units, Sygnus Credit Investments 8.1 percent market share, with 1.26 million units and Radio Jamaica 6.6 percent market share, with an exchange of 1.03 million units.
Trading averaged 305,774 units at $16,700,628, compared to 319,594 shares at $3,515,324 on Friday and month to date an average of 487,063 units at $8,855,423, in contrast to 497,417 units at $8,407,376 on Friday. July closed with an average of 322,932 units at $15,201,099.
Investor’s Choice bid-offer indicator shows 15 stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Barita Investments lost 48 cents to end at $92.52 with 242,695 shares changing hands, Berger Paints advanced 61 cents to $13.74 with a transfer of 24,016 stock units, Caribbean Cement shed $2.99 to end at $110, with 16,989 units traded. Eppley fell $1.50 to $39 with an exchange of 1,257 stocks, Eppley Caribbean Property Fund climbed 31 cents to $38.31 with 300 shares passing through the market, First Rock Capital gained 28 cents to close at $12.40 with 65,667 stock units changing hands. GraceKennedy rallied 99 cents to $104 with a transfer of 14,480 stocks, Guardian Holdings lost $3 to end at $581 with 4,691 units traded, Jamaica Broilers popped 30 cents to $33.40 with an exchange of 1,738 shares. Jamaica Producers fell 50 cents to $24 with 4,623 stock units passing through the market, Jamaica Stock Exchange popped 55 cents to $17.15 with 64,297 units changing hands, JMMB Group rallied $1 to $38.70 with a transfer of 183,748 stocks. 
Kingston Properties climbed $1.25 to $10.25 with 220 stock units traded, Kingston Wharves dropped $2 to $46.50 with an exchange of100,933 shares, Mayberry Investments advanced 39 cents to $6.14 with investors switching ownership of 2,636 units. Mayberry Jamaican Equities lost 25 cents to end at $9 with 24,756 stocks changing hands, NCB Financial Group climbed 90 cents to $132 with an exchange of 5,809,459 shares, Palace Amusement shed $5.01 to close at $1134.99 with 10 stocks traded.PanJam Investment dropped $1 to $62 with a transfer of 3,253 units, Scotia Group fell 65 cents to $38.80 with 29,179 stock units passing through the market, Seprod declined $3.99 to $64 with 10,001 stocks changing hands and Sygnus Credit Investments advanced $1.35 to $16.35 with 1,262,824 shares crossing the exchange after the company posted strong gains in full year’s profit.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Proven volume driver on Monday
Proven Investments led trading on the JSE USD market on Monday.
Trading on the JSE USD market ended with the volume of shares changing hands surging 474 percent above Friday level, driven by Proven Investments with over 1.3 million units, leading to 587 percent more funds passing through the market than on Friday and ending, with no stocks rising and an even number declining and remaining unchanged.
Four securities traded on Monday, versus five on Friday, with two declining and two remaining unchanged.
The JSE US Denominated Equities Index fell 3.01 points to end at 180.75, with a 3 percent fall for the year to date. The PE Ratio, a measure that is used in computing appropriate stock values, averages 11.6 based on ICInsider.com’s forecast of 2021-22 earnings.
Overall, 1,916,232 shares traded for US$343,397 up from 334,068 units at US$70,546 on Friday. Trading averaged 479,058 units at US$85,849 up from 66,814 shares at US$14,109 on Friday, while the month to date averages 217,631 at US$13,611 in contrast to 207,174 units at US$10,721 on Friday. July ended with an average of 178,541 units for US$18,099.
Investor’s Choice bid-offer indicator shows one stock ending with the bid higher than the last selling price and one with a lower offer.
At the close, First Rock Capital lost 0.3 of a cent to end at 7.2 US cents trading 408,722 shares, Proven Investments remained at 23 US cents with an exchange of 1,318,594 units, Sygnus Credit Investments USD ordinary share settled at 13 US cents with 76,190 stocks changing hands and Transjamaican Highway fell 0.04 of a cent to 0.81 US cents with 112,726 shares crossing the exchange.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading surges for Junior Market
Trading closed on Monday, with the volume of stocks traded surging 164 percent, with the value rocketing up by 162 percent over Friday’s trading on the Junior Market of the Jamaica Stock Exchange.
Similar to Friday, market activity led to 36 securities trading and ended, with 15 rising, 15 declining and six, closing unchanged, leaving the Junior Market Index down 20.40 points to 3,337.91.
Trading surged on Monday as Future Energy Source led the market, with 81 percent of total volume resulting from trading of 15.02 million shares, followed by Lumber Depot 5.5 percent with 1.02 million units and Mailpac Group 2.4 percent, with 447,436 units.
Trading ended, with 18,530,465 shares changing hands for $55,498,597 compared to 7,012,618 units at $21,199,184 on Friday. Trading averaged 514,735 units at $1,541,628 in contrast to 194,795 shares at $588,866 on Friday, while month to date, averages 469,205 units at $1,269,129, compared to 466,600 units at $1,253,533 on Friday.July closed with an average of 163,918 units at $481,755.
The PE Ratio, a measure used to compute appropriate stock values, averages 11.9 based on ICInsider.com’s2 021-22 earnings forecast.
Investor’s Choice bid-offer indicator shows four stocks ending with bids higher than their last selling prices and five stocks with lower offers.
At the close, Blue Power fell 10 cents in closing at $3.20, exchanging 950 shares, Cargo Handlers lost 9 cents in ending at $8.50 with the swapping of 5 units. Caribbean Assurance Brokers declined 10 cents to $1.80, trading 345,961 stock units, Caribbean Cream shed 29 cents to end at $5.70 in an exchange of 44,359 stocks, Caribbean Flavours increased 4 cents to $1.98 in trading 6,076 shares. Derrimon Trading rose 4 cents to $2.34, with 105,730 units crossing the market, Dolphin Cove dropped $1.35 to $10.25 in exchanging 4,326 stocks. Elite Diagnostic popped 5 cents to $3.01 after 15,598 units changed hands, Everything Fresh declined 4 cents in closing at 95 cents while exchanging 43,717 stock units, Fontana advanced 8 cents to $6.18 in switching ownership of 143,788 stock units, Future Energy Source dropped 65 cents to $2.64 after exchanging 15,015,240 units.
Honey Bun shed 14 cents in closing at $9, with 34,631 stocks crossing the market, Indies Pharma spiked 11 cents to $3.70 after exchanging 89,690 units, Jamaican Teas rallied 5 cents to $3.45, with 308,781stock units changing hands, Jetcon Corporation rose 23 cents to $1.14 after 1,085 stocks crossed the market. Lasco Manufacturing lost 6 cents to close at $4.82, with 25,540 units clearing the market. Limners and Bards popped 5 cents ending at $3.15 trading 241,458 units, Medical Disposables rose 10 cents to $5.20 in an exchange of 3,893 shares, Stationery and Office Supplies climbed 70 cents to $7.20, after 151 shares changed hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading picks up in Trinidad
Market activity ended on Monday, resulting in slightly fewer stocks rising than falling at the close of trading, with the market rising after the trading of 16 percent more shares, with a value 160 percent higher than on Friday, at the close of the Trinidad and Tobago Stock Exchange.
At the close, 20 securities traded compared to 18 on Friday, with five rising, six declining, leaving nine unchanged. The Composite Index rose 0.87 points to close at 1,431.83, the All T&T Index popped 1.30 points to 1,934.91 and the Cross-Listed Index rose 0.06 points to settle at 125.23.
A total of 180,164 shares traded for $4,129,217. up from 155,637 units at $1,587,945 on Friday. An average of 9,008 units traded at $206,461 compared to 8,647 at $88,219 on Friday, with trading month to date averaging 16,186 units at $226,311 versus 16,595 units at $227,442. The average trade for July amounts to 20,941 units at $221,079.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and one with a lower offer.
At the close, Ansa Mcal slipped 1 cent to $58.99, with 98 shares changing hands, Calypso Macro Investment Fund ended at $16.20 with the swapping of 3 stock units, Clico Investment Fund dropped 55 cents to $26.95 after exchanging 263 units. Endeavour Holdings remained at $7.01, with 200 stocks crossing the market, First Citizens Bank traded 225 stock units at $50.50, FirstCaribbean International Bank rose 10 cents to $6.65 in exchanging 14,500 stock units. 
GraceKennedy shed 8 cents to close at $6.21 after 87,090 shares changed hands, Guardian Holdings advanced 25 cents to $32.95 in trading 3,577 units, Guardian Media remained at $3.03 after 100 stock units crossed the market. JMMB Group popped 1 cent to $2.16 in switching ownership of 870 stocks, Massy Holdings fell 99 cents at $82, with 2,931 shares changing hands, National Enterprises traded 10,599 units at $3.60. National Flour Mills remained at $1.80, with 1,320 units clearing the market, NCB Financial Group slipped 2 cents to $8.23 with an exchange of 532 stocks, One Caribbean Media shed 58 cents to end at $4.26 after an exchange of 100 stock units. Republic Financial Holdings popped 1 cent to $135.46, trading 381 shares, Scotiabank climbed 89 cents to $59.49 after trading 50,073 stocks, Trinidad & Tobago NGL remained at $17.72 after exchanging 1,011 stock units. Trinidad Cement ended at $3.90 while trading 5,666 units and West Indian Tobacco remained at $31.50, with 625 shares changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Is Fesco’s pricing rational?
Investors who bought shares in Future Energy Source in the IPO in April or a few months after are laughing all the way to the bank, with the price providing a gain of 311 percent up to Friday. The recent rally in the stock has moved it from an IPO price of 80 cents to $3.29 at the close on Friday, making it the highest valued Junior Market stock at a PE of 25 times current year’s earnings, with the next closest being, Honey Bun at 18.3.
With just 15 service stations within its network and the planned opening of the Beechwood Avenue station, there is much scope for the company to expand and grow profits in the future, but it seems a bit overdone for Fesco to be priced at a 38 percent premium to the next highest priced stock on the Junior Market.
The company’s latest financial report shows profit surging 55.5 percent to $40 million before taxes for the 2021 June quarter versus $25.7 million in the first quarter of 2020. Profit after taxes rose 66 percent from $24 million. There is no tax charge for the latest quarter, resulting from listing on the Junior Market of the Jamaica Stock Exchange. The tax incentive provides a 10 years tax concession, with no taxes payable for 5 years and at 50 percent of the normal rate for the second 5 years.
A 29.5 percent spike in the volume of fuel sold added 2.9 million litres to volume sales, helping to push revenues for the quarter up 58 percent to $1.9 billion from $1.2 billion in 2020 and much greater than the $1.5 billion generated in March 2021 quarter. Most of the June increase over the March quarter would be due to the increased price of imported fuel, emanating from the upward movement in world oil prices during the period. Sales for the June 2020 quarter, was negatively affected by disruption to business following the outbreak of covid-19 last year.
Beechwood Avenue service station, under construction.
The first quarter performance is ahead of the opening of the new Fesco Ferry service station on July 15, which is dealer owned and operated.
The Company recorded a gross profit of $55 million, an increase of 63.4 percent over the June 2020 quarter of $34 million.
Operating and administrative expenses for the 2021 first quarter popped 139 percent from $8.6 million to $20.5 million, due mainly to spending in new areas during the quarter, with no cost in 2020. Advertising consumed $2.9 million, directors fees $1.4 million, amortization of right of use assets $867,000, while legal and professional fees rose from $310,000 to $2 million and audit and accounting fees added $1 million, with virtually none in 2020.
Finance Income increased from $1.7 million to $6.4 million, with foreign exchange gains accounting for $4.4 million in the 2021 quarter. Interest cost was minimal at under $1 million in the 2020 and 2021 periods.
Current assets amount to $547 million and current liabilities $210 million, with net current assets of $336 million versus $145 million in 2020. Cash funds amount to $282 million and receivables and amounts due from related parties amount to $250 million.
Shareholders Equity stands at $582 million, up from $231 million at the end of June 2020, reflecting the net proceeds from the IPO earlier this year and an increase in retained earnings. The company outlaid $238 million in work in progress in building out the service station on Beechwood Avenue in Kingston, with $114 million incurred in the June quarter.
RJR drops to 10, Proven & Jetcon join TOP10
The highlights this past week is that after one week back in the ICInsider.com TOP10 list, Dolphin Cove’s price surged from $9.86 to the week’s high of $12.50 for a rise of 27 percent but closed the week at $11.60 for a healthy 18 percent gain for the week.
Dolphin Cove’s price bounced last week.
RJR just held on to the TOP 10 with a gain of 135 percent for the year to date, but the stock that is trading with good volume traded as high as $4.78 during the week.
Proven Investments joins the Main market TOP10 and replaces Scotia Group while Jetcon Corporation price dipped to 91 cents and replaces tTech, with the price rising to $4.79 from $4.40 last week. Elsewhere, Future Energy Source, one of ICInsider.com BUY RATED stocks when the IPO came to market in April, gained 311 percent to date, but with projected earnings of 13 cents per share and the price at $3.29, the PE is a rich 25 times earnings and seems overpriced based on prices of other Junior Market stocks. Radio Jamaica, as previously suggested by ICInsider.com, the directors will be meeting on September 6 to consider a dividend payment.
The charting of the Junior and Main Market indices shows early signs of the markets bouncing from the mild summer correction. We may be seeing early signs of a longer term rebound, with the Main and Junior Markets closing at the highest levels this week since July 23.
Outside the Junior and Main markets TOP10, investors should keep an eye on AMG Packaging and Sterling Investments.
The top three Main Market stocks are Berger Paints, with the potential to gain 273 percent, followed by Guardian Holdings and JMMB Group, with expected gains of 214 to 273 percent for the three, versus last weeks’ 202 to 277 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by General Accident and Lasco Financial. All three have the potential to gain between 217percent and 283 percent, compared to 227 and 268 percent last week. Stationery and Office Supplies closed the previous week at $5.75 to sit at number 2 in the Junior Market list enjoyed a bounce in price to $6.50 and moved down to the 8th spot this week.
This past week the average gains projected for the Junior Market dropped from 207 percent to 191 percent and Main Market stocks from 172 percent to 168 percent.
The Junior Market closed the week with an average PE of 11.8 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the historical average of 17 for the period to March this year, based on 2020 earnings. The TOP 10 trades at a PE of 7, with a 40 percent discount to the PE of that market and the potential to rise 69 percent to march next year, based on an average PE of 20.
The JSE Main Market ended the week with an overall PE of 15.6, a little distance from the 19 the market ended at in March, suggesting a 12 percent rise at a PE of 19 and 28 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.7, with a 50 percent discount to that market’s average PE, well off the potential of 20.
The TOP10 stocks are not always the best stocks in the market but are most likely to be the best winners within a fifteen-month period. IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
New IPOS expected in October
The initial public offer of shares in Jamaica Fibreglass Products is expected to come to the Jamaican Capital market in October, our source advises, with Spur Tree Spices to come shortly after.
The company produces fiberglass based furniture and beddings, with revenues said to be in the region of $600 million, is expected to raise approximately $250 million for expansion purposes. The prospectus of the Metry Seaga owned company is said to be at an advanced stage of preparation and should be moving through the various stages for approval soon.
Spur Tree Spices, with revenues, said to be just over $1 billion, should also be coming in October, if all goes well, with a view to pull in $250 million. GK Capital are brokers of the two issues that are slated to list on the Junior Market. The prospectus of the company that has been manufacturing seasonings and sauces since 2006 for the local and export markets is also at an advanced stage of readiness, ICInsider.com gathers.
ICInsider.com is informed that the prospectus for one issue is in a draft form currently, so it should be ready to move to the regulators shortly. IPOS are subject to approval, primarily by the Jamaica Stock Exchange and Financial Securities Commission, before the prospectus can be released to the public as such, the exact timing is subject to signing off by them.
One source advised IC Insider.com that there are several potential listing candidates in the Manufacturing sector, with a number of them expressing interest in the listing. Another source advises that there are a number of potential listings in the NCB Capital Markets pipeline. The disruption to business caused by covid-19 is creating delays in some of the issues.
What appears to be a rush to list is a marked departure from the situation that existed before the advent of the Junior Market, with many business owners now seeing the major benefits that listings bring and the usefulness of long term capital.
In the meantime, Sygnus Real Estate Finance IPO that is seeking to sell 207.6 million up sizeable by 38.86 million units to raise a maximum of US$15 million, is extended to Friday, September 10.
