Improved tourist arrivals boost CPJ earnings

Caribbean Producers transformed itself following the pressures posed by the closure of the hotel sector it primarily serves in 2020 and the relatively prolonged period taken to get back to normal levels.

Caribbean Producers

Notably, revenues are rising again and delivering record profits even for a period when tourism numbers were 28 percent down for the March 2022 quarter from 2019. The June quarter could see 30 percent higher arrivals than the March quarter resulting in more revenues for the June quarter compared with that for the March quarter.
The above data portends more positive revenue growth for the coming fiscal year that starts in July. There will be a significant revenue hike in the first three quarters of the 2023 fiscal year, compared to the current fiscal year, with the tourism sector back to normal as indicated by preliminary June quarter arrivals. There should also be improved performance in the June quarter of 2023 compared to 2022, which enjoyed much recovery but was still not at full capacity.
According to Mark Hart and Tom Tyler, directors of the company, “the group remains optimistic for the fourth quarter of the financial year due to strong hotel bookings reported by our customers.”
The group is diversifying their revenue stream, making more investments in stores and adding new product lines for local consumption.
Revenues for the March quarter surged 123 percent to US$28.36 million over 2021 with just $12.7 million with the nine months to March delivering revenues of $86.44 million, up 133 percent above the $37.11 million generated in 2021. Interest and other income generated $89,700 for the quarter, down from $182,000 in 2021 and $652,000 for the nine months to date, up 93 percent over 339,000 in 2021. Profit margin slipped to 31 percent in the quarter but rose to 32 percent for the year to date, with gross profit of $8.9 million from $3.5 million in 2021 and $27.6 million for the nine months to March versus $9.9 million in 2021.
Depreciation cost was steady at just over 1 million for the quarter in both years and $3.2 million for the year to date but Administrative and selling expenses jumped 63 percent in the quarter to $5.2 million from $3.19 million in 2021 and rose 57 percent to $14.7 million for the nine months from $9.4 million in 2021. Finance cost rose 80 percent to $794,810 from $441,626 for the quarter and 71 percent to $2,290,676 from $1,336,016 for the nine months.
Gross cash flow brought in $10.2 million, but growth in receivables, inventories and addition to fixed assets resulted in outflows of $2.4 million, but net loan inflows amounting to $2.4 million resulted in a slight dip in cash funds on hand at the end of the quarter. At the end of March, Current assets amounted to $53.5 million, including Inventories of $30 million, receivables of $19.3 million and cash and bank balances of $4.2million. Current liabilities ended at $25.3 million, resulting in net current assets of $28.2 million. Heavy debt is a major concern at US$43 million in borrowings with equity of just $22 million.
Earnings per share came out at 0.14 of one US cent for the quarter and 0.62 of a US cent for the nine months. IC Insider.com forecasts J$1.65 per share for the fiscal year ending June 2022, with a PE of 8.55 times the current year’s earnings based on the price of $14.11, the stock traded on the Jamaica Stock Exchange Main Market and EPS of $2.60 for 2023 with a PE of a mere 5.4 and putting the stock price in the $50 range by 2023. Net asset value is $3.14, with the stock selling at 3.5 times book value.
All currency is the US dollar unless otherwise stated.

Big gains for ICTOP10 stocks

CAC2000 and AMG Packaging each gained 21 percent this past week, on top of the 10 percent gain in the previous week, while Medical Disposables rose 19 percent and Caribbean Cream and Jetcon Corporation added 10 percent to their price in the Junior Market ICInsidert TOP10.
Former Top10 listed Dolla Financial gained 17.7 percent to close the week at $2.75 after the stock traded as high as $3.60 on Tuesday.
The week ended with one new listing in the TOP10 as the gains by AMG Packaging pushed it out of the Top 10 and is replaced by General Accident, with a fall in the price to $5.79. Elite Diagnostic fell 6 percent to close the week at $3.32 and Lasco Distributors lost 4 percent to close at $3.20.
In the TOP10 Main Market, Berger Paints climbed 11 percent to $12.18 after trading more than 52,000 shares on Thursday and Friday, an unusual amount and Sygnus Credit Investments rose 5 percent to $14.95 while Caribbean Cement lost 8 percent to $64.50 and VM Investments gained 4 percent. There were no significant losers in this market.
Keep a careful watch on Dolphin Cove and Stationery and Office Supplies (SOS) that are close to the top10 and are undervalued. Both companies reported solid gains for 2022 back to school demand. The company also shipped a container of goods recently to the Eastern Caribbean. Dolphin Cove is benefitting from cost reduction in its operations, but more importantly, the solid first quarter results occurred when tourism arrivals were only 63 percent of 2019 numbers. In the first two months of the June quarter, tourist arrivals are 95 percent of the 2019 period and this is bound to have a positive impact on pushing the second quarter numbers much higher than for the first quarter as well as for the balance of the year. A similar situation would apply to Caribbean Producers, a significant supplier to the hotel sector.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 14.5, while the Junior Market PE for the Top 10 is 6.1 versus the market at 13. The Junior Market TOP10 is projected to gain an average of 230 percent by May 2023 and the Main Market 238 percent.
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 the end of May 2023 and are 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, 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.

New ICTOP10 entrants

Dolla Financial a former ICInsidertop10 stock fresh from the recent IPO, was listed on Wednesday and was the highlight of the Jamaica Stock Exchange, with the stock jumping 132 percent pushed by extremely high demand, with just modest selling, with indications the price may need to be in the $3 to $4 range to evoke greater balance between buyers and sellers.
Investors with a longer term investment target of over two years or more may find the potential growth prospects exciting and pay off well at the above prices.
The week ended with two new listings in the TOP10, but half of the Junior Market stocks recorded gained and 4 in the Main Market.
Junior Market stocks with worthwhile gains this past week are Dolphin Cove, with the price rising 14 percent to $17.61, Stationery and Office Supplies up 13 percent to $12.45, AMG Packaging up 10 percent to $3.94 and Caribbean Cream 5 percent to $4.98. Medical Disposables dropped 16 percent to $6.26.
In the TOP10 Main Market, Caribbean Cement lost 8 percent to $64.50 and Guardian Holdings fell 5 percent to $510.
Dolphin Cove and Stationery and Office Supplies dropped out of the Junior Market TOP10 and were replaced by CAC 2000, got an earnings upgrade to $1.32 after the company reported a profit of $47 million or 36 cents per share for the April quarter with the company reporting solid second quarter profit of $14 million for the six months to April from $8.7 in 2021 and Lasco Distributors.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.1, while the Junior Market PE for the Top 10 is 5.8 versus the market at 13.2. The Junior Market TOP10 is projected to gain an average of 249 percent to May 2023 and the Main Market 243 percent.
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 will likely deliver the best returns up to the end of May 2023. They are 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, 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.

3 new ICTOP10 listings

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The old stock market adage of sell in May and go away continued to influence the market this past week, helped by funds tied up in the Dolla Financial IPO, but most investors should get full refunds early this coming week, as well as the likelihood of the trading commencing in the stock in the latter part of the week.
The week ended with three new listings in the TOP10, as declining stocks dominated the Junior and Main Market.
In the Junior Market, the only worthwhile gain was a 14 percent rise by Paramount Trading to $2. Access Financial shed 6 percent to close at $20.45, stocks that declined by 5 percent each are Lasco Financial to $3.43, Jetcon Corporation to $1.26 and Medical Disposables to $7.45.
For the TOP10 Main Market stocks, Caribbean Cement gained 7 percent to $70 after the company reported a proposed $1.50 dividend payment in August. VM Investments lost 10 percent to $5.30, Berger Paints slipped 3 percent to $11, JMMB Group down 5 percent to $42 and Sygnus Credit Investments dipped 5 percent to $14.11.
Lasco Distributors and Paramount Trading dropped out of the Junior Market TOP10. They were replaced by Dolphin Cove, with the price dropping to $15.40 and Stationery and Office Supplies (SOS).
SOS
got an earnings upgrade to $1.70, with first quarter revenues 24 percent ahead of 2019, the previous best quarter before the negative impact of Covid-19, with the full reopening of the economy after, suggesting revenues should be running even further ahead of 2019 for the second quarter onwards. Dolphin Cove is benefitting from a resurgence in the tourism industry that is delivering increased revenues compared to 2021. The increased income and cost reduction contribute to a substantial profit increase that will carry over into the first half of 2023. It will enjoy increased revenues since the tourism recovery was not at full force in the first half of this year.
In the Main Market, Caribbean Producers is back, with upgraded earnings for the fiscal year to June 2023 of $2.30 per share that will flow from increased earnings for the year starting in July as it benefits from the recovery in the tourism sectors from which the bulk of its revenues is earned. QWI Investments has dropped out of the ten.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.6, while the Junior Market PE for the Top 10, is 6 versus the market at 12.9. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 percent.
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 will likely deliver the best returns up to the end of May 2023. They are 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, 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.

SOS buys printing press, set for record profits

Stationery & Office Supplies announced the acquisition of assets of D&K’s Printing and Office Supplies including 10 additional book manufacturing machines effective, Monday, June 6, 2022.

Stationery & Office Supplies is back in the TOP 10 but could fall in prive this week before moving higher.

The purchase will diversify the product range and increase the manufacturing capacity of the range of products produced by SEEK. Seek which was acquired in April 2018 produces exercise and hardcover books steno books and binder refills. The acquisition will allow them to print books with working in them such as receipts books, invoice books, graph paper and notebooks. In short, it expands the range of products that it can now print, some of which it currently sells which will improve profit margins.
The acquisition which is expected to contribute some 20-25 percent to Seek’s revenues, ICInsder.com gleaned and continues the process of acquiring strategic assets or businesses to accelerate business growth and will add 12 employees to the printing operation.
In 2021 revenues from the book manufacturing were $48 million and in 2019, some $62 million which is expected to hit around $80 million in 2022 and should reach into the $100 million range in 2023.
Revenues seem to be back to normal with January 2019 generating revenues of $344 million that were overtaken this year and June 2019 being $295 million which seems set to be exceeded in the June quarter as well. Based on the acquisition which will add to revenues and profit and the expected continuation of the robust first quarter revenue growth of 36 percent. Revenues for the rest of the year could accelerate, with the economy opening up since the first quarter.
The company gave a glimpse of what the rest of the year could be like, with SOS setting a new record for monthly sales, of $140 million in February, with sales reaching $173 million in March, 25 percent higher than February. If the trend continues into the second quarter, revenues could reach $480 million and may well continue the acceleration to the end of the year.
ICIinsider.com has upgraded earnings to $1.70 excluding the $23 million gain on the sale of property in the first quarter and that would put the stock at a PE well under 10 times this year’s earnings, assuming no major negative developments that could impair revenues and profits.

One new entry to ICTOP10

Prices of several stocks rebounded this past week as the selloff to fund the Dolla Financial IPO receded, but the changes had little impact on changing stocks in the TOP10, with just one new entrant to the listing.
Following last week’s 330 points fall, the Junior Market index recovered 143 points by the end of the week, while the Main Market All Jamaica Index lost 211 points on top of the 5,954.55 points given up in the previous week.
This week’s market performance resulted in mostly gains for TOP10 stocks. In the Junior Market, Medical Disposables rose 12 percent to $7.85, while Access Financial gained 9 percent to close at $21.80 and Lasco Financial rallied 6 percent to $3.50, following the release of full year results to March, with profit doubling to $306 million for earnings per share of 24 cents. Elite slipped 6 percent in closing at $3.40 and Caribbean Cream fell 5 percent to $4.69.
For the TOP10 Main Market stocks, Productive Business Solutions gained 15 percent to US$1.15, VM Investments rose 13 percent to $5.87, Berger Paints rallied 6 percent to $11.30, followed by QWI Investments up 5 percent to 89 cents. Sygnus Credit Investments declined 5 percent to $14.80 and JMMB Group slipped 4 percent to $44 following the release of full year results.
Jetcon Corporation price dipped to $1.32 and squeezed out General Accident from the Junior Market TOP10.
Medical Disposables reported full year results to March, on Thursday, with profit before tax surging 938 percent to $143 million and profit due to the parent company shareholders before extraordinary gains in 2021 of $62 million, rising to $105 million, from $7.5 million, with revenues up 42 percent over the previous year.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.1, while the Junior Market PE for the Top 10 is six versus the market at 13.4. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 percent.
Watch these stocks that are sitting just outside the TOP10, the list includes Key Insurance, followed by Caribbean Producers, Scotia Group and Sagicor Group from the Main Market and in the Junior Market, Dolphin Cove, General Accident and Iron Rock Insurance.
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 the end of May 2023 and are 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 are ongoing, based on receipt of new information.

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

Dolla Financial joins ICTOP10

The next stock slated to list on the Junior Market of the Jamaica Stock Exchange, Dolla Financial Services, joins ICTOP110 at the number one spot, with 2022 earnings projected at 20 cents per share and potential gains for the stock of 300 percent. The issue opens on Friday, 27 and 500 million shares being offered should be fully taken up by the public.
The other stock to climb into the ICTOP10 this week is Lasco Distributors, back in at the number 10 spot.
The markets pulled back this week, resulting in mixed performances for ICTOP10 stocks. In the Junior Market, following the release of March quarter results, Jetcon Corporation jumped 16 percent for the week to lead the Junior Market performances, Medical Disposables posted a 10 percent rise to $8, Access Financial gained 8 percent, while Caribbean Assurance Brokers lost13 percent in closing at $2.25 to be the only significant loser. TOP10 Main Market stocks had no meaningful gains. At the same time, Productive Business Solutions fell 17 percent to 98 US cents, VM Investments lost 9 percent and Radio Jamaica fell 5 percent, followed by JMMB Group with a 4 percent decline.
There were no movements in and out of the ICInsider.com TOP10 Main Market listing this week, but the Junior Market has two, with Dolphin Cove and Jetcon Corporation dropping out.

Investors should be on the lookout for companies with March year end that have not yet reported earnings. Amongst the grouping is the three Lasco companies that could get price moving punch from the results. Watch also Access and Medical Disposables, with the latter sitting close to the TOP of the list.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15, while the Junior Market PE for the Top 10 sits at 6.1 versus the market at 13.5. The Junior Market TOP10 is projected to gain an average of 226 percent by May 2023 and the Main Market 215 percent.
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 the end of May 2023. They are 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 are ongoing, based on receipt of new information.

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

72% gains for ICTOP10 winner

Stationery and Office Supplies (SOS) is up 72 percent in 2022 and is heading to more than $20 with projected earnings of $1.25 for the year. SOS made the ICTOP15 list in January at 12 spot to produce a 200 percent gain for the year. It came into TOP10 in the week ending January 21, in the 6th spot and exited the TOP10 on the week ending April 22.

Stationery & Office Supplies hit a record high on Friday.

Stationery & Office Supplies – Montego Bay office.

Over the past two weeks, company results have been coming out fast and furious, with many posting solid increased profits over the first quarter of 2021, as the economy continues to recover and cost savings also takes hold to help lift profits to record levels in many cases.
One company to benefit from improved results for the first quarter results to March is SOS, with revenues rising 37 percent to $427 million and profits surging 344 percent to $81 million before gains from the sale of a property, investors belated warmed to the stock pushing it to a 52 week’s high of $11.02 and out of ICTOP10. Based on the results, ICInsider.com upgraded earnings from $1.10 to $1.25. Investors in the stock can look for a possible stock split this year if the price rises.
It is well worth noting that the Junior Market peaked at 4,669.78 points at the market opening on May 10 and pulled back to 4,444.25 on Friday as new quarterly results tempered investors in some overvalued stocks that have started to adjust downwards as reality sets in. Among them is Fesco, which was selling at a PE of 50 times the current year’s earnings. There seem to be more painful adjustments to come for investors in this stock. MailPac also suffered a reversal in price after the first quarter results disappointed investors, with lower revenues and earnings.
It is not unusual for investors to take a break after mid-May each year, with most results released and return in late June or early July just ahead of the new earnings season for the half year. Against this background, trading could move sideways for a month or two, but the Lasco companies, Access and Medical Disposables could light up the market when they release results in a few weeks.

Berger Paints annual report had good news for investors to digest.

In the Main Market, Jamaica Stock Exchange was added to the ICTOP10 recently but slipped out last week and reported solid results for the March quarter, with profit jumping 84 percent after revenues rose 37 percent. The projected earnings were downgraded to $1.30 from $3, leaving the stock just about appropriately valued. Berger Paints came out with solid earnings, resulting in our projection being upgraded from $1.70 to $2.35, helped by a sharp cut in other operating expenses from $160 million in 2021 to $117 million and now heads the Main Market TOP10 list.
Elite Diagnostic gained 3 percent for the week at $4, but the promise that the company showed when it was listed has started to show again, with revenues in the third quarter rising 24 percent to $161 million and profit surging to $28 million from $4.4 million in 2021. Based on the results, earnings for the current year ending in June are projected at 24 cents and 55 cents for the 2022/23 fiscal year.
Former ICTOP10 listing, Tropical Battery earnings were downgraded to 18 cents per share for this year, following the release of March half year results.
Access Financial jumped 22 percent last week, and is down 16 percent this past week at $21.50, and attracted more buying interest as the release of year results approaches. tTech tumbled 8 percent during the week and AMG Packaging 7 percent. Caribbean Assurance Brokers was the only stock with any meaningful gain, with a rise of 6 percent.
This week, there was no change to ICInsider.com TOP10 Main Market listings, but the Junior Market has two, with Lasco Distributors just slipping out. Jetcon Corporation suffered a big price decline during the week to close at $1.35 to reenter the list. tTech earnings were revised down to 25 cents after the company posted flat sales in the first quarter and a small loss and fell out of the top listing to be replaced by Dolphin Cove is poised to grow much more this year as improving tourism traffic that April numbers show is virtually back to normal provide a big boost to future earnings.
Investors should be on the lookout for companies with March year end that have not yet reported earnings. Amongst the grouping are the three Lasco companies that could get price moving punch from the results. Watch also Access and Medical Disposables sitting on the TOP of the list, with the company said to be generating profit from the acquisition of Cornwall Enterprises, well ahead of the two year target. ICInsider.com earnings projections of 70 cents per share for the 2022 fiscal year assume that earnings would include profit from the subsidiary and should result in a big jump in the stock toward $14.
The primary mover in the main market was Caribbean Cement that fell 12 percent to $61 as buying interest in the stock remains low, even as the first quarter results suggest the stock is highly undervalued, no other stock had any serious change.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.3, while the Junior Market PE for the Top 10 sits at 6.3 versus the market at 13.9. The Junior Market TOP10 is projected to gain an average of 226 percent by May 2023 and the Main Market 215 percent.
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 the end of May 2023 and are 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 are ongoing, based on receipt of new information.

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

RJR back in 3rd spot as Access jumps 22%

There is only one change to ICInsider.com TOP10 listings this week, with Radio Jamaica coming back in the Main Market list at position 3. Following an earnings upgrade for the 2023 fiscal year, it replaces Jamaica Stock Exchange that ICInsider.com projects to have explosive results for the first quarter.

Radio Jamaica

In the wider market, Junior Market stocks keep on piling the pressure on the main market with the former closing the week at a record high, with year to date gains of 32.8 percent and is well on the way to ICInsider.com forecast of 60 percent for the year.
Thanks to a takeover announcement of AS Bryden, a Trinidad based company by Seprod, the Main Market moved higher for the week, with the All Jamaica Index just under 460,000 points, still well below 2020 high.
TOP10, Access Financial shares moved higher this past week as selling seems to have dried up and led the stock to a 22 percent rise during the week, to be the best performing stock in the TOP10. Access Financial has been beaten up for more than two years but is now worth watching. On Friday, well ahead of the close of the market, a buy order for 100,000 Access Financial shares was placed at $25.60, but only18,000 units were filled up to the close. There were no stocks on offer with any sizable quantity close to the bid price just before close, indicating that the price is heading higher.
Elite Diagnostic gained 8 percent to close the week at $3.90, but Caribbean Assurance Brokers that reported a profit for the first quarter versus a loss in 2021, fell by 6 percent and so did General Accident that is said to be having a good 2022, with Trinidad and Barbados expected to deliver positive results versus a loss of around $200 million in 2021. Movement of main market stocks was more subdued than their junior counterpart, with the Jamaica Stock Exchange rising a mere 4 percent and selling at 8 times this year’s earnings, with a blowout first quarter results due shortly. Caribbean Cement, surprisingly, fell 8 percent as buying interest in the stock is low, even as the first quarter results suggest the stock is highly undervalued.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.5, while the Junior Market PE for the TOP10, sits at 6.2 versus the market at 13.8. The Junior Market TOP10 is projected to gain an average of 230 percent to May 2023 and the Main Market 201 percent.
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 the end of May 2023 and are 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 are ongoing, based on receipt of new information.

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

Big gains for several ICTOP10 stocks

With just one third of 2022 elapsing, it is an excellent time to look at what the markets and ICInsider.com forecast have done. The Junior Market gained 29.85 percent to the end of April, or half of the entire year forecast of 60 percent, made at the start of the year and in the process, the market has surpassed the 29.7 percent gains it achieved in 2021 for the entire year.
The Main Market that ICInsider.com forecast to deliver a 14 percent rise for the year struggles to break from consolidation so far, with a rise of just 4.8 for the four months to April and is consistent with a 14 percent increase for the year. It is quite likely that the market PE could climb closer to a PE of 18, which will push the annual gains to around 30 percent if the financial stocks show good increases in profit for the year. That is a very likely situation as the hike in interest rates is driving net interest income sharply upwards.
At the beginning of the year, ICInsider.com stated, “the market is technically at a support level that is steering the index upwards. More importantly, it is caught in a triangular formation setting to push the market sharply upwards once it breaks out, which is not far off. The market is trading in a channel that goes back to May 2020, pointing to a record high of over 4,000 points in a few months.” So far, the above forecast is spot on.
In addition to the Top15 selection for each market at the start of the year, we added a few stocks. There were nine winning stocks with good gains. The list includes AMG Packaging 73 percent, Dolphin Cove 47 percent, Elite up 26 percent, Everything Fresh 83 percent, iCreate 263 percent, Jetcon 75 percent, Spur Tree Spices 215 percent, Stationery and Office Supplies 46 percent and Tropical Batteries up 124 percent for the year to date and up 64 percent since ICInsider.com added it was added to the TOP10 on February 25. Caribbean Cream, down 7 percent, is the only Junior Market stock selection to fall.
The big TOP15 winners for the Main Market are Caribbean Producers, up 42 percent, Jamaica Stock Exchange at 22 percent, JMMB Group at 16 percent and Proven at 14 percent. Berger Paints, down 7 percent, Jamaica Broilers, with a fall of 3 percent and Scotia Group, down one percent, are the only losers in this segment.
For the week, the only new listing to TOP10 is tTech replacing Jetcon, that held on to a gain of 16 percent to top the ICTOP10 Junior Market movers and dropped out of the TOP10, followed by Medical Disposables with 14 percent after a block of shares that was overhanging the market was taken out by buyers. AMG Packaging rose 9 percent, Caribbean Cream rose 6 percent and Caribbean Assurance Brokers shed 9 percent.
In the Main Market, Sygnus Credit Investments rose 8 percent to end at $16.48 and Caribbean Cement gained 6 percent to close at $75.18.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15, while the Junior Market PE for the Top 10 sits at 6.1 versus the market at 14.2. The Junior Market TOP10 is projected to gain an average of 239 percent to May 2023 and the Main Market 197 percent.
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 the end of May 2023. They are 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 are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.