Key Insurance highest ICTOP10 jumps 37%

March 26, 2023 by

Stocks dropped to their lowest levels this past week after falling even lower than they did to close of the previous week as investors continue to shun the market, but the time is not far off that Bank of Jamaica will begin lowering interest rates and fuel a market resurgence as they sent the clearest signal that interest rates have not only peaked but will be headed downwards this past week.

The first signs of an easing of rate came this past week with BOJ CDs rates plunging 16 percent to an average of 8.85 percent from over 10 percent where it stood for several months. Importantly, the central bank cut the stock of CDS it holds from a peak of $109.5 billion on March 3, down to $82 billion at the latest auction, far less than from mid-January to the end of February, as more than $58 billion chasing after the $18 billion that was offered last week. While this happened the foreign exchange market looks very liquid with the rate falling under $152 to one US dollar from $155 earlier in February.
Performance in the past week for the Junior Market TOP10 saw only two stocks rising and seven falling, the majority of the declining stocks registering fell by 3 percent or less. General Accident jumped 20 percent to $5.98, but the bids are not there at the close, to support the price, but selling has abated for this stock currently. Everything Fresh rose 9 percent to close at $1.55 and actually traded at $1.65 during the week. Iron Rock Insurance fell 13 percent to $2 and Caribbean Assurance Brokers lost 6 percent to $1.90.
The Main Market TOP10 saw the highest gaining stock rising just 34 percent, after Key Insurance jumped to $3.50 and was followed by 138 Student Living with an 8 percent rise to $5.40, but Caribbean Producers dropped 8 percent to $9.07. All other movements were 3 percent or less.
The Junior Market has a long term pattern, with the market starting to rise around a month before quarterly results are due and declining shortly after results are released. This is a pattern worth noting that can be built into investment decisions that can improve returns.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.2, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 10.6. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 248 percent and the Main Market TOP10 an average of 274 percent, to May 2024, based on 2023 forecasted earnings.
The Junior Market has 9 stocks representing 19 percent of the market, with PEs from 15 to 24, averaging 19, well above the average of the market. The top half of the market has an average PE of 15, suggesting that this may be a logical value for junior market stocks currently.
The Main Market 16 most valued stocks are priced at a PE of 15 to 100, with an average of 29 and 19 excluding the highest valued stocks and 18 for the top half excluding the stocks with the highest valuation. The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings 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 are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

KLE Group is Main Event in ICTOP10

March 20, 2023 by

Stocks continued to be battered in the past week sending the Junior Market back to January 2022 levels and the Main Market declined for a second week and as far back as September 2018 levels, but some stocks bucked the trend and posted gains.

Main Event

Earnings season delivered a few new results during the past week, with Main Event posting positive profit gains for the January first quarter and seeming poised to earn $1.80 for the year. Fosrich released full year results to December, with profit jumping to $325 million from $199 million in 2021 as revenues climbed a solid 43.4 percent, Dolla Financial posted increased profit of 18 cents per share and should go on to earn 40 cents in 2023, but it is not in ICInsider.com TOP10 reporting solid results that augur well for full year’s profit. Limners and Bards delivered disappointing first quarter results of a mere $7 million, down from $66 million in 2022, as revenues dropped sharply from $443 million to $248 million. Lumber Depot suffered a decline in revenues for the January quarter, with a decline in profit and Blue Power reported an increase in revenues year over year, with a profit rising for their third quarter to January, with profit slipping for the nine months.
Performance in the past week for the Junior Market TOP10 saw four stocks rising and three falling. AMG Packaging gained 16 percent to $2.90, followed by Everything Fresh with a 5 percent gain, Lasco Distributors gained 4 percent to $2.74. Tropical Battery lost 10 percent of its value to close at $2.02 and Image Plus lost 4 percent to end at $1.85.
Stationery and Office Supplies is said to continue to enjoy buoyant business into 2023, rose 3 percent to $15 and dropped out of the Junior Market ICTOP10 along with AMG Packaging as Main Event and KLE Group replaced those that fell out, with the former posting strong first quarter results that point to earnings of $1.80 for the year. KLE is now in, based on the fall in the stock price, but investment in the stock is not without above average risk. They are yet to release 2022 earnings, but they should benefit from pick up in business in their associated restaurant business in which they hold a 49 percent interest, with exposure in Montego Bay that will see added inflows from the considerable pick up in tourist patronage and should have income generated from managing the Bessa apartments in Oracabessa on the north coast of Jamaica.
The Main Market TOP10 saw the highest gaining stock rising just 3 percent while Jamaica Broilers dropped 12 percent to $33.50’ following some large trades in the week, Guardian Holdings followed with a fall of 6 percent to close at $480 and 138 Student Living being down by 4 percent to $5.01.
There have been no changes in the listing in the Main Market ICTOP10 this past week.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.4, well below the market average of 13.3, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 11.3. The differences are important indicators of the likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 245 percent and the Main Market TOP10 by an average of 282 percent, to May 2024, based on 2023 forecasted earnings.
The Junior Market has 12 stocks representing 25 percent of the market, with PEs from 15 to 24, averaging 18.3, well above the market’s average. The top half of the market has an average PE of 15.
The Main Market 18 highest valued stocks are priced at a PE of 18 to 115, with an average of 30 and 21 excluding stocks with the highest valuations and 20 for the top half excluding the stocks with the highest valuation. The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

169% surge in profit at SOS

March 12, 2023 by

Stationery and Office Supplies (SOS) enjoyed a blow year in 2022, with earnings hitting a record high, after profits jumped 169 percent before tax to $284 million and $257 million after tax from a 55 percent jump in revenues to $1.75 billion from $1.12 billion in 2021. SOS benefitted from one time income from a Gain on disposal of property, plant and equipment of $30 which was partially offset by unusually large impairment losses of $11.5 million.
Income tax on the year’s profit amounts to $27 million compared with a tax credit of $1 million in 2021. Net profit in 2021 was $107 million but gross profit jumped 59 percent from $574 million in 2021 to $912 million for 2022, as gross profit margin slipped during the year to 47.8 percent from 49 percent in 2021.
Administrative and general expenses rose 25 percent to $399 million from $320 million in 2021. Selling and promotional costs rose 64 percent to $132 million from $80 million in the prior year, Impairment loss on financial assets jumped 698 percent to $11.5 million up from $1.4 million and Depreciation and amortisation costs rose 13.7 percent to $30 million up from $26.4 million. There were cost savings during the year with Loss on foreign exchange falling 85 percent to $1.2 million from $8 million in 2021 and Finance costs dropping 22 percent to $8.7 million from $11 million in 2021 as loans were partially repaid.

Allan McDaniels CEO of SOS

Gross cash flow during the year brought in $336 million, which was used to fund increased working capital needs of $84 million, capital expenditure amounting to $50 million, loan repayment of $49 million and dividend payment of $45 million, leaving $97 million to add to cash funds.
At the end of the year, shareholders’ equity grew to $1.1 billion with long term borrowings at $67 million and short term at $43 million. Current assets ended the period at $737 million inclusive of trade and other receivables of $200 million versus $124 million in the prior year. Cash and bank balances rose to $132 million from $34 million in the previous year and inventories climbed to $369 million up from $296 million in 2021. Current liabilities ended at $181 million and resulted in Net current assets of $556 million.
Earnings per share came out at $1.03 cents for the year up from 43 cents in 2021. IC Insider.com forecasts $2 per share for the current fiscal year, with a PE of 7.3 times the current year’s earnings down from 14.5 based on 2021 results, compared with 11.3 for the market based 2023 earnings at $14.50 the stock traded at on Friday on the Jamaica Stock Exchange Junior Market.

Stationery & Office Supplies hit a record high on Friday.

Stationary & Office Supplies – Montego Bay office.

Of note is a 37 percent increase in fourth quarter revenues, which was at a slower pace than the 63 percent increase for the nine months to September and a 45 percent rise in the 4th quarter of 2021, suggesting that the pace for 2023 should be strong, but most likely slower than that of 2022.  The pace in 2023 will be helped by a deal struck with a company in Trinidad to cross sell products as well as the possibility that other deals may be struck with others.
SEEK division produced receipts and other ruled books as well as graph paper for the first time in June last year, using machinery that was purchased from the former operators, they will enjoy increased production for the entire year in 2023 compared with approximately six months in 2022 and contributed $43 million to gross profit for 2022.
With improving profits and shrinking supplies outside of the TOP 10 shareholders, who control 91 percent of the issued shares, the stock is setting up for a stock split that cannot be far off and when given will catapult the stock price upwards.
Going forward, with the Jamaican economy recovering and now growing, the stage is being set for SOS to continue to grow at an attractive pace for a while and deliver above average returns for investors in cash dividends and stock price gains.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , , , , , ,

Everything & Guardian head ICTOP10

March 12, 2023 by
Add your HTML code here...

Everything Fresh and Guardian Holdings continue to head the ICInsider.com TOP10 in a week when the Main Market fell 2.7 percent and the Junior Market dropped a hefty 7.8 percent and reversed all the gains of the previous week, but the Investors Choice bid-offer Indicator is flashing positive signals for both markets on Monday.
Guardian Holdings has a commanding lead over its next rival by almost 100 points, but Everything Fresh likely gain of 344 percent is just above Caribbean Assurance at 333 percent, but the latter is currently far more appealing, with the stock selling at a PE of a mere 7 times 2022 earnings and 4.6 times 2023. Everything Fresh PE based on 2022 earnings is at a much higher 17 and 4.5 based on projected 2023 earnings.
Earnings season had two companies in ICInsider.com TOP10 reporting very strong results that augur well for a full year’s profit.

Caribbean Assurance Brokers is selling at a PE of just 7 based on historical earnings.

Scotia Group reported a net income of $3.4 billion for the quarter that ended January 2023, an increase of $2.2 billion or 173 percent over the prior year period as loans the primary driver of profits increased a solid 18.8 percent to $237 billion while deposits grew only 7.7 percent to $4.05 billion and resulted in net interest income surging $2.6 billion as interest expenses actually declined. These results suggest  ICInsider.com forecast for $5 per share may be a bit light with solid prospects that earnings of $5.50 seem possible. It noted that overall comprehensive profit shows a loss of $1 billion after accounting for pension obligations of $9.5 billion and other items of gains.
Jamaica Broilers continues to churn out strong growth in profits with their nine months results more than double that of the prior year while the January quarter is up 27 percent to $1.5 billion as revenues climbed a solid 20 percent after finance cost nearly doubled. With the tourism industry back to normal the company should get a further boost for the rest of 2023. ICInsider.com forecast for $6 per share for the current fiscal year from continuing operations seem well within reach and could be exceeded making it a solid buy for the long haul.

Scotia Group had a significant increase in profits for the January 2023 quarter.

Performance in the past week was mixed for the Junior Market TOP10 but was far better than the near 8 percent fall by that market, with only three stocks rising of which two rose by 2 percent or less. Iron Rock Insurance gained 15 percent this past week to $2.30 after falling 13 percent the previous week. Lasco Distributors fell 6 percent to $2.64, followed by AMG Packaging and Stationery and Office Supplies which fell by 3 percent to $2.51 and $14.50, respectively.
The Main Market TOP10 performed worse than the overall market with only two stocks gaining and six declining. Jamaica Broilers rose 6 percent to $38 as investors warmed to the stock following release of outstanding results, with the price having a far way to run, while JMMB Group a clear winner for the long term, put on just 2 percent to close at $31.01. Key Insurance fell 7 percent to $2.61 followed by a 5 percent for NCB Financial and 138 Student Living to $72 and $5.20 respectively.
There are no new additions in either market to the ICTOP10 this past week.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.3, while the Junior Market Top 10 PE sits at 6.1 compared with the market at 11.3. The differences are important indicators of the level of likely gains of ICTOP10 stocks. The Junior Market is projected to rise by 238 percent and the Main Market TOP10 by an average of 274 percent to May 2024, based on 2023 forecasted earnings.
The Junior Market has 11 stocks representing 23 percent of the market, with PEs from 15 to 25, averaging 19.7, well above the market’s average. The top half of the market has an average PE of 16.
The Main Market 16 highest valued stocks are priced at a PE of 15 to 98, with an average of 30 and 22 excluding the highest valued stocks and 20 for the top half excluding the stocks with the highest valuation.
The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings 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 are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

3 new ICTOP10 stocks after week’s gains

March 5, 2023 by

The Main Market gained 1.3 percent and the Junior Market 2.4 percent over the previous week, the first sign that stocks may be coming back to life, following the end of earning season with a mixed bag of results and the sounding of prospects for a better period ahead, with cost pressures that existed last year in stockpiling supplies to meet demand that squeezed margins have started to recede, with the promise of higher profit margins ahead.

Everything Fresh tops ICTOP10

The period saw many companies reporting solid gains in profit that investors are yet to award with better prices than the results demand, which is not expected to last for long as supplies of many stocks have been declining in recent weeks.
ICTOP10 has three new additions to the Junior Market TOP10 while the Main Market remains steady.
The week closed with rising stocks dominating the Junior Market TOP10. Paramount Trading fell 9 percent in the prior week, led rising stocks this past week, with a gain of 18 percent to $2.35, followed by Main Event, put on 15 percent to land at a new high of $12.39, Lasco Distributors and Lasco Manufacturing rose 8 percent to $2.81 and $4.30, respectively. Iron Rock Insurance fell 13 percent to $2.08 and Tropical Battery dipped 4 percent to $2.20.
Six stocks rose in the Main Market TOP10, with 138 Student Living rising 10 percent to $5.50, the price of Jamaica Broilers rose 9 percent to $36 as investors warmed to the stock following release of outstanding second quarter numbers and the price having a long way to run. Caribbean Producers, that is undervalued, rose 6 percent to $10 as selling pressure eased somewhat.
Price changes resulted in Paramount Trading, Main Event and Lasco Manufacturing exiting the Junior Market TOP10 and replaced by AMG Packaging, Everything Fresh and Stationery and Office Supplies.
AMG Packaging enjoyed improved profit margin in the November quarter compared with that in 2021, even as sales fell slightly in the latest quarter to November, which augurs well for increased profit in the current year, with revenues projected to rise in the year with more business opportunities as the economy continues to grow at a healthy pace. Everything Fresh and Stationery and Office Supplies (SOS) earnings reflect that for the current year. Everything Fresh now heads the Junior market TOP10, having reported profit for an entire year in 2022 for the first time since they released a depressed $16 million profit in 2018. Profit came in at $48 million before tax for 2022, a modest change from $47 million reported for the nine months to September after finance costs rose 43.5 percent in the December quarter over the nine months to September. With 2023 setting up to be the strongest tourist season since 2019, the company is set to see a big jump in business from that sector and profit in 2023, that should see the company earned 30 cents per share, that is why it is in ICTOP10. SOS posted record profits for 2022 with a 169 percent increase before tax from a 55 percent jump in revenues. Of note are a 35 percent increase in fourth quarter revenues and a deal struck with a company in Trinidad to cross sell products that should add to revenues in 2023 and push earnings to $2 per share for the year. With improving profits and shrinking supplies outside of the TOP 10 shareholders, who control 91 percent of the issued shares, the stock is setting up for a stock split that cannot be far off and, when given, will catapult the stock price upwards.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.9, while the Junior Market Top 10 PE sits at 6.1 compared with the market at 11.8. The differences are important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 240 percent and the Main Market TOP10 by an average of 284 percent to May 2024, now that TOP10 stocks earnings are based on 2023 profits.
The Junior Market has 13 stocks representing 27 percent of the market, with PEs from 15 to 26, averaging 19.5, well above the market’s average. The top half of the market has an average PE of 17. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 12 highest valued stocks priced at a PE of 15 to 115, with an average of 32 and 23 excluding the highest valued stocks and 21 for the top half excluding the highest valued stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Elite out Tropical back in ICTOP10

February 25, 2023 by

The Main Market of the Jamaica Stock Exchange closed the past week with gains in the indices. Still, the Junior Market suffered a significant loss on Friday to close the week with a loss following a sizable fall in the price of Fosrich. This most heavily weighted Junior Market stock fell from an average price of $3.20 at the previous week’s close down to $2.63.
ICTOP10 has only one new addition this week, in the Junior Market TOP10 and none in the Main Market, following major volatility in price movements in the listings.
In closing out the week, Iron Rock Insurance led stocks rising, with a gain of 13 percent to $2.30, followed by General Accident, that rose 6 percent to $4.99, while Main Event put on 4 percent to land at $10.80. Elite Diagnostic fell 21 percent to $2.45 as demand vanished for the stock following release of poor second quarter results. Paramount Trading fell 9 per cent to $2, Image Plus and Lasco Distributors dipped 5 percent to $1.90 and $2.60, respectively.
Five stocks rose in the Main MarketTOP10, with the price of Key Insurance rising 7 percent to $3.20, Sygnus Credit Investments rose 5 percent to $12.57, while 138 Student Living and Scotia Group popped 4 percent higher to $5.01 and $34.20, respectively. Berger Paints dropped 8 percent to $9.25, Caribbean Producers, Guardian Holdings and Jamaica Broilers lost 3 percent.
Earnings per share for Elite Diagnostic was revised down to 28 cents per share for the current year, following a small loss of $7 million in the December quarter, even as revenues rose a solid 20 percent or $30 million over the same quarter in 2021, resulting in the stock dropping out of the ICTOP10, to be replaced by Tropical Battery that is returning after a short absence.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.4, well below the market average of 13.7, while the Junior Market Top 10 PE sits at 6.5 compared with the market at 11.6. The differences are important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 213 percent and the Main Market TOP10 by an average of 288 percent to May this year, assuming the market gets back to last year’s valuation. The primary concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to get to the summer months before the full interest of investors is visible.
The Junior Market has 13 stocks representing 27 percent of the market, with PEs from 15 to 27 averaging 19 compared with the above average of the market. The top half of the market has an average PE of 17. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 17 highest valued stocks priced at a PE of 15 to 109, with an average of 32 and 23 excluding the highest valued stocks and 21 for the top half excluding the highest valued stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

More ICTOP10 additions

February 20, 2023 by

ICTOP10 has two new additions this week, all are Junior Market stocks, following modest price changes in the listings this past week, but the Main Market had mostly significant losses as that market hit a new low for the year during the week.
In closing out the week, Lasco Distributors rose 6 percent to $2.75, while Tropical Battery gained just 4 percent to $2.40. Iron Rock Insurance fell 15 percent to $2.03, the only declining stock above one percent.
Four stocks rose in the Main Market TOP10, with NCB Financial and Jamaica Broilers increasing 4 percent to $77.99 and $33.90, respectively. Caribbean Producers plunged 10 percent to $9.72 as investors reacted negatively to a near US$2m negative swing in second quarter profit on higher revenues that were up 16 percent in the period, JMMB Group lost 8 percent to close at $30.80, Key Insurance fell 7 percent to $3, but 138 Student Living and Scotia Group dropped 4 percent to $4.80 and $32.95 respectively.
Honey Bun rose modestly for the week and, along with Tropical Battery, climbed out of the Junior Market ICTOP10, allowing Lasco Manufacturing and Paramount Trading to return to the ICTOP10.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.4, well below the market average of 13.6, while the Junior Market Top 10 PE sits at 6.3 compared with the market at 12, important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 220 percent and the Main Market TOP10 by an average of 288 percent to May this year. The primary concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before the full interest of investor start to show.
The Junior Market has 14 stocks representing 29 percent of the market, with PEs from 15 to 28, averaging 20 compared with the above average of the market. The top half of the market has an average PE of 17. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 17 highest valued stocks priced at a PE of 15 to 90, with an average of 33 and 25 excluding the highest valued stocks and 25 for the top half excluding the highest valued stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Four new ICTOP10 stocks

February 12, 2023 by

ICTOP10 has four new additions this week. The changes followed release of new company results that saw upward and downward movements in earnings per share, while the price of one stock rose to exit the list.  
At the end of the week, Paramount Trading jumped 17 percent to $2.58 after the supply of stocks in the market fell sharply during the week as the stock hit a 52 weeks’ intraday high of $2.95 before pulling back by the end of the week and Honey Bun rose 4 percent to $7.35. Lasco Manufacturing fell 8 percent to close at $4.33, General Accident slipped 6 percent to $4.70, Lasco Distributors lost 5 percent to end at $2.60 and Iron Rock Insurance fell 4 percent to $2.39.
Stocks rising in the Main Market TOP10 were hard to come by as losers outgunned winners. Jamaica Broilers jumped 8 percent to close at 52 weeks’ high of $32.50, but 138 Student Living dropped 10 percent to $5.00, as investors reacted negatively to a board decision to raise added capital by issuing more shares to the public. Radio Jamaica fell 7 percent to $1.90 after reporting poor results to December, while Caribbean Producers and Sygnus Investments fell 6 percent to $10.80 and $12.25, respectively, followed by a 5 percent decline for Guardian Holdings to close at $505.70.
Tropical Battery returns to ICTOP10 after a one week absence, Main Event posted better than expected full year results and moved into the TOP10 with projected earnings of $1.45 for the 2023 fiscal year and One on One Education moved into the TOP10, while Lasco Manufacturing moved out followed by Lasco Financial and Paramount Trading. In the Main Market, Radio Jamaica slipped out of the TOP10 and Scotia Group reentered after a brief respite.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.6, well below the market average of 14.7, while the Junior Market Top 10 PE sits at 6.6 compared with the market at 12.3, important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 207 percent and the Main Market TOP10, an average of 280 percent, to May this year. The primary concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before the total interest of investor start to show.
The Junior Market has 15 stocks representing 31 percent of the market, with PEs from 15 to 30, averaging 20 compared with the above average of the market. The top half of the market has an average PE of 18. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 18 highest valued stocks priced at a PE of 15 to 90, with an average of 27 and 22 excluding the highest valued stocks and 27 for the top half excluding the highest valued stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Two companies exist ICTOP10

February 4, 2023 by

As was the case last week, the Jamaica stock market continues to consolidate as it awaits developments that will push investors to act decisively. At the same time, the Main Market traded heavily and sat below the close of the previous week but the Junior Market mostly traded above the prior week’s close.
After just one week in the ICTOP10, Tropical Battery price rose this week and resulted in the stock falling outside the top flight, to be replaced by Lasco Manufacturing that dropped out during the previous week. In the Main Market, Scotia Group slipped out of the TOP10 and Radio Jamaica reentered.
At the end of the week, Tropical Battery rose 9 percent to $2.60, Image Plus Consultants gained 6 percent to close at $2.05, Paramount Trading rallied 5 percent to $2.20 and Iron Rock Insurance rose 4 percent to end at $2.50. Honey Bun fell 8 percent to $7.07 and was the only one of only two stocks to decline for the week, with the other slipping by just one percent.
In the Main Market, 138 Student Living popped 11 percent to $5.56, while Berger Paints fell 8 percent to $9.75, followed by a 5 percent decline for Jamaica Broilers to close at $30.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.6, well below the market average of 14.7, while the Junior Market Top 10 PE sits at 6.6 versus the market at 12.8, important indicators of the level of the undervaluation of the ICTOP10 stocks currently. The Junior Market is projected to rise by 208 percent and the Main Market TOP10 an average of 275 percent, to May this year. The major concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before full interest of investor start to show.
The Junior Market has 16 stocks representing 33 percent of the market, with PEs from 15 to 31, averaging 21 compared with the above average of the market. The top half of the market has an average PE of 18. The above average shows the extent of potential gains for the TOP 10 stocks. The situation in the Main Market is similar, with the 18 highest valued stocks priced at a PE of 15 to 116, with an average of 28 and 21 excluding the highest valued stocks and 28 for the top half excluding the highest valued stock.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings 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 are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Image Plus surge in profits

February 3, 2023 by

Following a big surge in revenues and profit for the year to February 2022, Image Plus Consultants with revenues climbing 27 percent to $777 million and profit surging 298 percent to $94 million after tax, the company is now reporting continuing solid performance for the nine months to November.

Revenues climbed 27 percent in the November quarter to $248 million and 43 percent in the nine months to $803 million while profit rose moderately to $24 million from $22 million in 2021 for the last quarter.  The 2022 quarterly results would be about 50 percent better than the outturn for the 2021 period, being saddled with added costs that were not incurred in 2021, with expected credit loss expense of $6 million with none in 2021 and higher finance cost of $8 million up from $1.8 million. For the nine months, profit nearly tripled that of 2021 to reach $148 million.
It is unclear whether earnings reflect the elevated payment of directors’ fees or not. The change in cost year over year does not suggest that in which case profit for the new period would jump sharply when that cost amounting to some $15 million per quarter falls away. Costs of sales rose 25.5 percent to $82.8 million in the latest quarter, from $66 million in 2021, for the nine months, the increase is 42 percent to $274 million from $192 million, with both the quarterly and nine months cost tracking close to the increased revenues, which is a positive development.
Administrative expenses rose 21.6 percent to $113 million from $93 million for the quarter and 12.7 percent for the nine months to $297 million from $264 million in 2021. Depreciation charges were flat in the quarter at $13 million but up to $32 million from $29 for the nine months.Dr Karlene McDonnough – Chairman of Image Consultants Ltd. The company originally reported incorrect earnings per share for the periods with the use of an incorrect number of shares in the computation but that has since been amended with a new release.  Earnings per share for the quarter is 2.3 cents and 15 cents for the nine months.

Dr Karlene McDonnough – Chairman of Image Consultants Ltd.

“The rate of revenue growth slowed somewhat since the second quarter as a result of the Ocho Rios relocation exercise (all operations at that branch were closed for four days whilst CT and Xray services were down for an additional seven days when the branch reopened as we awaited relocation of the 3 phase power supply required to operate these units). Management is confident that the move and resulting downtime is an investment that will redound significantly to the benefit of all stakeholders in the months ahead” the chairman and the Managing directors advised shareholders in their commentary accompanying the financials and went on to say.
“Despite this downtime, the company’s case count remains very healthy at 40,949 representing year to date, an increase of over 17 percent compared to the comparative period in the prior year. The number of cases at nine months represents 88.3 percent of the full financial year 21/22 case count.  Expenses grew 12.7 percent over the last financial year driven by higher than normal costs in Q3. In the main, these costs were associated with one off marketing expenditure for the re-printing of all billboards, directional and office signs for the Ocho Rios branch. Traditionally too, Q3 costs are expected to be a little higher as we have expenditure associated with referring physician appreciation and end of year performance incentives for our team members.”
Cash flow generated by operations was $138 million, acquisition of fixed assets amounting to $143 million utilized it all, in addition, $30 million was placed in investments and $30 million was used to pay dividends that were partially funded from net loan proceeds that brought in $51 million.
At the end of November, long term borrowings stood at $118 million and short term at just $4 million. Current assets ended the period at $311 million including trade and other receivables of $242 million, up from $106 million in 2021, while cash funds and investments ended at $49 million. Current liabilities ended the period at $124 million. Net current assets amount to $200 million.
November ended with shareholders’ equity of $415 million but is expected to hit the $900 million mark with the proceeds of the recent public share issue.
The stock that fell to a low of $1.77 last week, traded over $2 since this week.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , , , ,