Trading on Wednesday ended on the Jamaica Stock Exchange US dollar market with the volume of shares changing hands declining after trading 56 percent attracting 163 percent more funds than on Tuesday and resulting in a 2.55 points rise in the US Denominated Equities Index to 215.57 as rising stocks edged out those falling.
Similar to trading Tuesday, six securities changed hands, with two rising, one declining and three ending unchanged.
The PE Ratio, a measure used in computing appropriate stock values, averages 12.8. The PE ratios use earnings forecasts by ICInsider.com for each company with the financial year ending during the current year up to August 2022.
Overall, 87,866 shares traded for US$9,627 versus 198,530 units at US$3,666 on Tuesday. Trading averaged 14,644 units at US$1,605, against 33,088 shares at US$611 on the previous day, with the month to date averaging 324,073 shares at US$43,348 versus 342,455 units at US$45,828 on Tuesday. November ended with an average of 79,766 units for US$10,928.
Investor’s Choice bid-offer indicator shows one stock ending with the bid higher than their last selling price and one stock with a lower offer.
At the close, First Rock Capital USD share popped 0.01 of a cent to close at 6.96 US cents in an exchange of 5,450 shares, Proven Investments ended at 23 US cents after trading 10,911 units, Sterling Investments finished at 2.1 US cents as 2,522 stock units changed hands. Sygnus Credit Investments USD share rose 0.85 of a cent to end at 12.9 US cents, with 50,485 stocks crossing the market and Transjamaican Highway fell 0.01 cents in ending at 0.84 of one US cent, with 18,489 shares changing hands.
In the preference segment, Equityline Mortgage Investment preference share remained at US$1.999 with an exchange of 9 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Archives for December 2021
More gains for JSE USD market
Best results in 8 years for Trinidad stocks
The Trinidad and Tobago Stock Exchange is on track to record its best performance in eight years, with market activity gathering momentum in the second half of the year to be up nearly 17 for the year to date, just shy of the 17.7 percent in 2013.
Trading ended Wednesday, with two stocks hitting 52 weeks’ high as an equal number of stocks rising and falling after trading 299 percent more shares, valued 142 percent more than on Tuesday, at the close of trading on the Trinidad and Tobago Stock Exchange.
At the close, 15 securities traded compared to 17 on Tuesday, with five stocks each rising, declining and trading unchanged. The Composite Index added 1.41 points to close at 1,486.70, for a rise of 12.4 percent year to date. The All T&T Index rose 6.47 points to 2,068.51, up 16.7 percent for the year to date and the Cross-Listed Index dropped 0.56 points to settle at 121.11, up by 2.6 percent for the year.
A total of 487,407 shares traded, for $11,558,864, in contrast to 122,108 units at $4,034,922 on Tuesday. An average of 32,494 units traded at $770,591 compared to 7,183 at $237,348 on Tuesday, with trading month to date averaging 22,477 units at $301,865 versus 21,998 units at $279,285. The average trade in November amounts to 35,109 units at $290,897.
Investor’s Choice bid-offer indicator shows five stocks ending with bids higher than their last selling prices and none with a lower offer.
At the close, Ansa McAl traded 440 shares unchanged at $59.49, Clico Investment Fund rose $2.50 in ending at a 52 weeks’ high of $31 with 60,645 units changing hands, FirstCaribbean International Bank fell 2 cents to $6.13 with an exchange of 2,000 stock units. GraceKennedy declined 13 cents to close at $6.05, with 120,000 stocks changing hands, Guardian Holdings shed 33 cents to close at $30 with the swapping of 7,914 units, JMMB Group dropped 2 cents in ending at $2.24 after exchanging 330 stocks. Massy Holdings climbed $1 to close at a 52 weeks’ high of $106 in an exchange of 12,238 stock units, National Enterprises advanced 1 cent in closing at $3.30 after 6,000 shares changed hands, NCB Financial Group remained at $8 in switching ownership of 69,100 units. One Caribbean Media lost 11 cents to close at $4.69 in trading 5 stocks, Republic Financial Holdings spiked $2.02 to end at $140.02, with 22,011 stock units crossing the market, Scotiabank finished unchanged at $68, with 243 shares clearing the market. Trinidad & Tobago NGL popped $1.35 in closing at $21 after trading 185,866 units, Unilever Caribbean ended unchanged at $16.20 after trading 158 stocks and West Indian Tobacco remained at $28.44 while exchanging 457 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Mixed trading for JSE USD stocks
Trading on Tuesday ended with the volume of shares changing hands rising 91 percent, but with 77 percent lower value than on Friday, as the final week of the year for the Jamaica Stock Exchange US dollar market, commenced activity, resulting in more stocks declining than those rising.
Trading ended with six securities changing hands, compared to seven on Friday with prices of two rising, three declining and one left unchanged.
The JSE US Denominated Equities Index gained 2.21 points to end at 213.02.
The PE Ratio, a measure used in computing appropriate stock values, averages 12.7. The PE ratio uses earnings forecasts by ICInsider.com for each company with the financial year ending during the current year up to August 2022.
Overall, 198,530 shares traded for US$3,666 compared to 103,747 units at US$16,128 on Friday. Trading averaged 33,088 units at US$611, versus 14,821 shares at US$2,304 on Friday, with the month to date averaging 342,455 shares at US$45,828 versus 361,994 units at US$48,684 on Friday. November ended with an average of 79,766 units for US$10,928.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling price and one with a lower offer.
At the close, First Rock Capital USD share dropped 0.01 of a cent to close at 6.95 US cents, with 40 shares changing hands, Productive Business Solutions declined 0.4 of a cent in closing at US$1.33 in trading one unit, Proven Investments rose half a cent to end at 23 US cents in exchanging 5,734 stocks. Sterling Investments finished at 2.1 US cents after trading 100 stock units, Sygnus Credit Investments USD share fell 0.85 of a cent to 12.05 US cents in an exchange of 7,156 stock units and Transjamaican Highway popped 0.14 of one cent to end at 0.85 of a US cent trading 185,499 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trinidad stock market climbed higher
Market activity ended on Tuesday after closing for the boxing day holiday, after trading 87 percent fewer shares, value 42 percent less than on Friday, on the Trinidad and Tobago Stock Exchange and resulted in slightly more stocks declining than rising at the close of trading.
Overall, 17 securities traded against 16 on Friday, with four rising, five declining and eight unchanged. The Composite Index inched 0.98 points higher to 1,485.29, the All T&T Index rose 2.71 points to 2,052.04 and the Cross-Listed Index slipped 0.12 points to 121.67.
A total of 122,108 shares traded, for $4,034,922 versus 928,449 units at $7,232,895 on Friday. An average of 7,183 units traded at $237,348 compared to 58,028 at $452,056 on Friday, with the month to date averaging 21,998 units at $279,285 versus 22,846 units at $281,686. The average trade for November amounts to 35,109 units at $290,897.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and two stocks with lower offers.
At the close, Agostini’s spiked $2.50 to a 52 weeks’ high of $32 as 31 shares crossed the market, CinemaOne finished at $4, with 600 units changing hands, Clico Investment Fund lost $1.60 to end at $28.50, after trading 1,090 stock units. Endeavour Holdings ended at $7.93 after exchanging two stocks, GraceKennedy shed 6 cents to $6.18 in 1,020 stock units crossing the exchange, Guardian Holdings fell 67 cents in closing at $30.33 after trading 55,007 stocks. JMMB Group closed at $2.26 after 215 shares changed hands, L.J. Williams B share remained at $1.84, with 200 units clearing the market, Massy Holdings climbed 40 cents to $105, with 19,060 shares changing hands. National Enterprises advanced 4 cents to close at $3.29 in exchanging 5,820 stocks, National Flour Mills finished at $1.90 in trading 1,710 stock units, NCB Financial Group ended at $8 with an exchange of 36,814 units. One Caribbean Media popped 35 cents to $4.80 after trading 10 units, Prestige Holdings ended at $7 after swapping of 100 stock units, Scotiabank had an exchange of 15 stocks at $68. Trinidad & Tobago NGL declined 9 cents in closing at $19.65 in exchanging 371 shares and West Indian Tobacco dropped 6 cents to end at $28.44, trading 43 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Is Lumber Depot a buy?
After posting outlandish first quarter results that were boosted by inventory profit, Lumber Depot reported more down to earth profit in the second quarter of 5 cents per share, raising the half years earnings to 15 cents from profits in the October quarter of $35 million, down marginally from $36 million in 2020, with half year profit climbing 62 percent to $107 million from $66 million in 2020.
First quarter revenues grew an attractive 16 percent, but the second quarter revenues were flat, at $340 million bringing the half year sales to $760 million up 8.6 percent from $700 million for the similar period in 2020. “Revenues and profits for the three months ended October 2021, were directly affected by the lock-down period effected during the late summer that resulted in 17 lost sales days during the quarter and unprecedented disruptions to the construction planning and work cycle as well as to the supply chain for construction inputs. Against this backdrop, we are satisfied to have been able to maintain both revenues and profits for the second quarter at that same level as the prior year,” chairman, Jeffrey Hall advised shareholders in his report accompanying the quarterly.
Gross profit margin rose to 23 percent in the half year from 19.6 percent, while the 2021 second quarter saw gross profit falling to 18 percent versus 21 percent in 2020. Gross profit rose 28 percent from $137 million in the half year in 2020 to $176 million, while the 2021 October quarter saw gross profit just ahead of 2020, with $72 million versus $71 million.
Other income brought in $11 million for the half year compared to $5 million in 2020 and $9.5 million for the quarter versus $1.4 million being interest income in the 2020 quarter.
Administrative and other expenses slipped marginally in the half year to $73 million from $76 million last year and rose moderately from $39 million to $43 million for the quarter. Finance cost amounted to $5 million for the half year against $4.44 million in 2020 and the last quarter $2.2 million with the 2020 period amassing $1.9 million.
Gross cash flow brought in $112 million but growth in working capital, additions to fixed assets costing $164 million, resulted in negative funds flow of $28 million for the half year. At the end of October, shareholders’ equity stood at $402 million. No borrowed funds were used to finance the operation at the end of the period. Current assets ended the period at $329 billion including trade and other receivables of $51 million, cash and bank balances of $115 million. Invested funds amount to $119 million. Current liabilities ended the period at $228 million. Net current assets ended the period at $$101 million.
The Paul Scott’s, Stony Hill Investments recently acquired a major interest in the company, what could be in it for them some investors are asking. Scott sees scope for expansion and growth, in what he considers a well-run company that is simple and easily understood. He feels that they are in a position to benefit from expansion of housing in the country.
ICInsider.com sees potential for major expansion, with Kingston, Portmore, Spanish Town prime areas for expansion focus and there is nothing to prevent them from expanding nationally at some point in time. Lumber Depot could benefit from the close linkage to the Musson Group that has large holdings of real estate within the group or indirectly in the investment companies that can purchase materials for repairs or expansion through them.
The full year results should end up around 30 cents assuming some pickup in sales in the second half. On this basis, the stock may be considered undervalued at the current trading price of around $3.
Spur Tree Spices joins ICTOP10
The big news for the market for the past week was the release of the prospectus of the long-awaited Initial Public offer of Spur Tree Spices priced at $1 per share at PE of 8.7 based on earnings before tax and propelling the stock in this week’s Junior Market ICTOP10. Investors should also see the prospectus release for Jamaica Fibreglass Products this week or next.
Spur Tree pushed Jetcon Corporation out of the TOP10, with the latter enjoying a 9 percent price rise to 99 cents. Over in the Main Market TOP10, Sagicor Group rose just 2 percent to close at $53.
During the week, AMG Packaging rose 3 percent to $2.12, Access Financial Services climbed 7 percent to $20.95, Lasco Distributors rose 6 percent to $3.47, but Elite Diagnostic and Honey Bun both fell 10 percent to $2.71 and $8.55, respectively and Caribbean Cream fell 4 percent to $5.70.
The public offer for Spur Tree Spices shares opens on Wednesday this week and should be heavily oversubscribed, with closure likely by the end of the week.
This week, the top three Main Market stocks are Guardian Holdings, followed by JMMB Group and Radio Jamaica, all projected to gain between 183 and 261 percent, up from 178 and 257 percent last week.
The Junior Market top three stocks changed a bit during the week, with AMG Packaging leading, followed by Caribbean Assurance Brokers, with Access Financial Services moving from the second spot to the third position. All three can gain between 158 and 230 percent versus 167 and 240 percent previously.
The average gains projected for the TOP 10 Junior Market stocks moved from 149 percent last week to 151 percent and Main Market stocks moved from 155 percent to this weeks’ 154 percent.
The Junior Market closed the week with an average PE of 14.4 based on ICInsider.com’s 2021-22 earnings and is currently well below the target of 20 and the average of 17 at the end of March this year based on 2020 earnings. The TOP 10 stocks trade at a PE of a mere 8.1, with a 44 percent discount to that market’s average.
The Junior Market can gain 39 percent to March next year, based on an average PE of 20 and 18 percent based on an average PE of 17. Eleven stocks representing 26 percent of all Junior Market stocks with positive earnings are trading at or above this level, similar to last week, indicating that many others will rise towards the 17 mark in the months ahead.
The average PE for the JSE Main Market is 16.1, some 18 percent less than the PE of 19 at the end of March and 24 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 8.1, representing a 51 percent discount to the market and well below the potential of 20. A total of 13 stocks or 28 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times the current year’s earnings.
ICTOP10 focuses on likely yearly winners; accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on the possible increase for each company, considering 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.
No stock lost value on the JSE USD market Friday
Trading on Friday ended with the volume of shares traded dropping 66 percent with a marginal change in the value of funds changing hands than on Thursday on the close of the Jamaica Stock Exchange US dollar market, resulting in no stocks declining.
Seven securities traded, compared to six on Thursday, with prices of four rising, none declining and three ending unchanged. The JSE US Denominated Equities Index rose 0.73 points to end at 210.81.
A total of 103,747 shares traded with a value of US$16,128 versus 303,241 units at US$16,780 on Thursday.
The PE Ratio, a measure used in computing appropriate stock values, averages 12.5. The PE ratio uses ICInsider.com’s earnings forecasts for each company, with the financial year ending during the current year up to August 2022.
Trading averaged 14,821 units at US$2,304, against 50,540 shares at US$2,797 on Thursday and month to date an average of 361,994 shares at US$48,684 compared to 389,610 units at US$52,373 on Thursday. November trading averaged 79,766 shares for US$10,928.
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, First Rock Capital USD share rallied 0.96 of a cent to 6.96 US cents after switching ownership of 296 shares, Margaritaville ended at 9.5 US cents trading 63,000 units, MPC Caribbean Clean Energy remained at US$1.08, with five stock units crossing the market. Sterling Investments rose 0.01 of a cent to 2.1 US cents, with 1,830 stocks changing hands and Sygnus Credit Investments USD share gained 0.3 of a cent to 12.9 US cents while exchanging 35,917 stocks.
In the preference segment, Eppley 6% finished unchanged at 98 US cents in exchanging 199 shares and JMMB Group 5.75% increased 8 cents to US$2.10 after trading 2,500 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.