Carreras & Medical Disposable lead TOP 10

The past week saw significant fluctuations in prices of several stocks, leading to notable declines in the market indices of the Junior and Main Market and resulting in some changes in the TOP 10 stocks.
The Junior Market lost General Accident and Lasco Distributors and welcomed back Jetcon Corporation and Dolphin Cove. In the JSE Main Market, the price of NCB Financial fell to $190, with the stock edging out Pulse Investments in the process.
The JSE Main Market ended the week, with an overall PE of 21.1 and the Junior Market 14.2, based on current 2019 earnings. The PE ratio for Junior Market Top 10 stocks averages 9.2 with the Main Market at 11.1.
The targeted average PE ratio is 25, with several stocks trading at that level or just under, in 22 times region, currently. The TOP 10 shares now trade at a discount of 35 percent of the average for Junior Market and Main Market stocks trade at a discount of 47 percent to the overall market.
The average projected gain for the IC TOP 10 stocks is 177 percent for the Junior Market and 129 percent for the JSE Main Market, based mostly on 2019 earnings.
The top three Junior Market stocks are Medical Disposables with projected gains of 257 percent, followed by Main Event with 232 percent and Jamaican Teas is in the third spot with 187 percent likely capital gain, with the price pulling back from $7.40 at the start of the week to $6.98 at the close. During the week, Jamaican Teas announced a three for one stock split, subject to approval by shareholders.
During the week, Sygnus Credit Investments US dollar-based stock that surged to number one spot on the Jamaican Stock Exchange Main Market at the end of the prior week climbed to 18 US cents and moved to the sixth position. Carreras now leads the TOP 10 Main Market stocks with projected gains with 176 percent, followed by Radio Jamaica in the number two spot, with 166 percent and Berger Paints with 152 percent.
IC TOP 10 stocks are likely to deliver the best returns to March this year. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The stocks are ranked in the order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

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

Main Event & Sygnus lead IC TOP 10

Main Event revenues are growing strongly.

Entertainment event planners, Main Event and Sygnus Credit Investments US dollar-based stock surged to number one spot on the Junior and Main markets of the Jamaican Stock Exchange in a week with just one change to the TOP 10 lists.
Dolphin Cove’s price moved to $11.90 and the stock moved out of the Junior Market TOP 10 and is replaced by General Accident with the stock price falling to $6.45.
The Jamaica Stock Exchange got some price changing news during the past week. Jamaican Teas announced that the directors would be meeting to consider increasing the share capital and a sub-division of the companies issued shares. That news created added interest in the stock, driving the price from $6.58 to close the week at $7.40. Pulse Investments announced expansion into residential real estate development for sales and the retention of some units. The stock was added to the Main Market TOP 10 in 2019 and is on the verge of moving out, with increased buying interest. KLE Group announced the buy-out of the Tacks and Records restaurant in Montego Bay that will add significantly to revenues and boost profitability. KLE is one to watch. Proven Investments announced another stock offering, this time to the wider public. The move with help to boost broader interest in the stock as it pulls in new shareholders.
The JSE Main Market ended the week, with an overall PE of 21.2 and the Junior Market 14.4, based on current 2019 earnings. The PE ratio for Junior Market Top 10 stocks averages 8.9 with the Main Market at 10.9.
The targeted average PE ratio is 25, with several stocks trading at that level or just under, in 22 times region, currently. The TOP 10 companies now trade at a discount of 38 percent of the average for Junior Market and Main Market stocks trade at a discount of 49 percent to the overall market.
The average projected gain for the IC TOP 10 stocks is 187 percent for the Junior Market and 135 percent for JSE Main Market, based mostly on 2019 earnings.
The top three Junior Market stocks currently are by Main Event with projected gains of 305 percent, followed by Medical Disposables with 257 percent and CAC 2000, with 188 percent likely capital growth.
Sygnus US dollar-denominated stock, holds on to the lead of Main Market stocks with projected gains with 186 percent, followed by Carreras in the number two spot, with 171 percent and Berger Paints with 165 percent.
IC TOP 10 stocks are likely to deliver the best returns to March this year. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. Possible gains for each stock are ranked, with highest-ranked being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

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

tTech & Honey Bun leaves IC TOP 10

Lumber Depot is back in TOP 10 with the price at $1.50.

Jamaican stocks are off to a positive start for 2020, with the JSE all Jamaica Composite Index rising 2,715.02 points and Junior Market adding 29.23 points in two days.
This year’s movements are much stronger than for the same period in 2019 when the All Jamaica Index rose 796.77 points and the Junior Market gained 14.52 points.
Word reaching IC Insider.com is that the prospectus for the Initial Public Offer for Caribbean Assurance Brokers should be out in a matter of days, but it could be as early as Monday.
At the close of the market this past Friday, the Junior Market had two new listings while the Main Market listings remained unchanged. Lasco Distributors and Lumber Depot that fell to $1.50, reentered the TOP 10, replacing Honey Bun that closed the week at $8.49 and tTech that ended the week at $5.50.
The JSE Main Market ended the week, with an overall PE of 21.2 and the Junior Market 14.6, based on current 2019 earnings. The PE ratio for Junior Market Top 10 stocks averages 9.4 with the Main Market 10.2.
The targeted average PE ratio is 25, with several stocks trading at that level or just under, in 22 times region, currently. The TOP 10 stocks now trade at a discount of 37 percent of the average for Junior Market and Main Market stocks trade at a discount of 48 percent to the overall market.
The average projected gain for the IC TOP 10 stocks is 177 percent for the Junior Market and 132 percent for JSE Main Market based mostly on 2019 earnings.
The top three Junior Market stocks currently are Medical Disposables with projected gains of 257 percent, followed by Main Event with 246 percent and Jamaican Teas with 204 percent likely capital growth.
Radio Jamaica still holds on to the lead of Main Market stocks with projected gains with 178 percent, followed by Carreras in the number two spot, with 174 percent and Sygnus US dollar-denominated stock, with 167 percent.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The projected increase for each stock is ranked, with highest-ranked being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

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

Two new IC TOP 10 listings

Add your HTML code here...

With the final days of 2019 draws to a close, investors looking back must ponder how the JSE Main Market stocks outperformed the Junior Stocks by a considerable margin, by growth in the market indices and the number of shares with triple-digit gains.
At the end of the week, JSE Main Market stocks gained 33 percent to just 4 percent for the Juniors as six Main Market stocks more than doubled compared to only three Junior stocks.
The Junior Market had Lasco Distributors and Paramount Trading entering the TOP 10 last week. Still, they were replaced this week, by Honey Bun and tTech, in at number 9 and 10 positions, respectively. There were no changes to the TOP 10 listing for Main Market stocks.
The targeted PE ratio is now 25, with several stocks trading at that level or around 22 currently. The average projected gains for the IC TOP 10 stocks are 172 percent for Junior Market and 152 percent for JSE Main market Top 10 stocks.
The top three Junior Market stocks currently are Medical Disposables with projected gains of 257 percent, followed by Main Event with a potential increase of 227 percent and Jamaican Teas with 223 percent likely capital growth.
Radio Jamaica is still the leading Main Market stock, with an expected increase of 213 percent, even with the price moving up from $1.85 to $2. Pulse Investments is in at the number two spot with a projected increase of 201 percent and Sygnus US dollar-denominated stock, with likely gains of 186 percent, is next.
The JSE Main Market closed the week, with an overall PE of 20.5 and the Junior Market at 14.5, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 9.4 with the Main Market PE at 10.2.
The TOP 10 stocks now trade at a discount of 35 percent of the average for Junior Market stocks and main market stocks trade at a discount of 50 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. Possible gains for each stock are ranked in descending order, with the highest-ranked being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

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

Sygnus US$ stock hits IC TOP 10

The JSE Main Market TOP 10 had just stock leaving with Sygnus Credit Investments Jamaican dollar listing replaced by the US dollar listed stock, with the price of the latter at 14 US cents or just under J$19 equivalent.
The Sygnus Jamaican quoted stock climbed to a record high of $30 on Friday, but ended at a record closing high of $27 at the end of trading and moved down to 12th spot in the overall market ranking.
The recently listed Lumber Depot closed trading at $1.91 on Friday and moved out of the TOP Junior Market listing. Also, leaving the TOP 10 was Honey Bun, with the price rising to $8.39 with a limited supply of the stock.
Coming into the Junior Market listing, are Lasco Distributors and Paramount Trading as investors beat down their prices.
The targeted PE ratio is now 25, with several stocks trading at that level or around 22 currently. The average projected gains for the IC TOP 10 stocks are 179 percent for Junior Market and 154 percent for JSE Main market Top 10 shares.
The top three Junior Market stocks currently are the Main Event with projected gains of 243 percent, followed by Medical Disposables with a potential increase of 238 percent and Jamaican Teas with 220 percent likely capital growth.
Radio Jamaica still holds on to the lead for Main Market stocks, with an expected increase of 236 percent, followed by Pulse Investments in the number two spot with projected growth of 205 percent and Sygnus US dollar-denominated stock with likely gains of 186 percent, is next.
The JSE Main Market closed the week, with an overall PE of 20.6 and the Junior Market at 14.3, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 9.1 with the Main Market PE at 10.1.
The TOP 10 stocks now trade at a discount of 36 percent of the average for Junior Market stocks and the Main Market stocks trade at a discount of 51 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year, are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Forecasted values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in securities included in the commentary.

Lumber Depot set to leave IC TOP 10

Newly listed Lumber Depot traded for the first time after listing on Friday to close at $1.59, up 32.5 percent from the IPO issue price of $1.20. The stock remains in the TOP Junior Market listing at 6th position from third, last week, but may not be in it much longer.
 Honey Bun that jumped ship at the end of the prior week, returns to sit at 10th spot with the fall of tTech while the JSE Main Market welcomed back Stanley Motta to the TOP 10 at the expense of NCB Financial.
IC Insider.com has upgraded the target PE ratios to 25 with several stocks trading at that around 22 currently. The average projected gains for the IC TOP 10 stocks are 187 percent for Junior Market stocks and 145 percent for JSE Main market Top 10 companies.
The top three Junior Market stocks are Medical Disposables with projected gains of 252 percent, followed by Main Event with a potential appreciation of 246 percent and Jamaican Teas with 233 percent.
Radio Jamaica holds the lead of Main Market stocks with projected gains of 238 percent, followed by Carreras in the number two spot with projected growth of 168 percent and Pulse Investments with likely increases of 167 percent is next.
The JSE Main Market closed the week, with an overall PE of 20.8 and the Junior Market at 14.9, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 9.1 with the Main Market PE at 10.4.
The TOP 10 stocks now trade at a discount of 39 percent of the average for Junior Market stocks and Main Market stocks trade at a discount of 50 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year, are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Future values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

MailPac drops out of IC TOP 10

Newly listed MailPac Group more than doubled in price, trading as high as $2.60 but closed the week at $2.22 and dropped out of the TOP Junior Market listing.
IC Insider.com has upgraded the average targeted PE to March 2020 based on the valuation of more than 22 times earnings, that the market has placed on several stocks currently.
 Honey Bun also jumped ship after posting strong growth with full-year results showing profit rising 67 percent to hit $157 million from a 17 percent rise in revenues to $1.54 billion. The stock closed at $8, up from $7 last week, but traded at a record high of $9.20 on Friday. Honey Bun entered the TOP 10 in the first week in October at $6.15 and left with a gain of 30 percent, but it still has more gains ahead of it. tTech price fell to $5.35 and re-entered the TOP 10 along with Caribbean Flavours, with its price dropping from $17.90 last week to close at $15.64 to return to the TOP 10.  PanJam Investment moved into the JSE Main Market Top 10 at the expense of Stanley Motta.
The past week was generally good for stocks as the JSE Main Market rose 4,691 points and the Junior Market climbed 89 points. The Junior Market movement was partially helped by the steep rise in the price of MailPac, from the IPO price of $1. Importantly, the Junior Market has made a sharp break out of a downward sloping channel that started after the market peaked in Mid-August. It now seems to be heading higher, with a healthy break out of the channel.
IC Insider.com has upgraded the target PE ratios to 25 with several stocks trading at that around 22 currently. The average projected gains for the IC TOP 10 stocks are 187 percent for Junior Market stocks and 145 percent for JSE Main market Top 10 shares.
Medical Disposables lead the top three Junior Market stocks with projected gains of 257 percent, followed by Main Event with potential profits of 246 percent and Lumber Depot with 233 percent.
 Radio Jamaica is the lead stock with projected gains of 247 percent, followed by Pulse Investments in the number two spot with a projected growth of 164 percent and Carreras with a likely increase of 111percent is next.
The JSE Main Market closed the week, with an overall PE of 21.5 and the Junior Market at 14.6, an improvement over the previous week’s 14.2, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 8.9 from 8.7 last week with the Main Market PE at 10.5.
The TOP 10 stocks now trade at a discount of 39 percent to the average for Junior Market stocks and JSE Main Market stocks trade at a discount of 51 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year, are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Possible values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Scotia Group aiming to up profits

Scotia Group headquarters in Kingston.

The 2019 fiscal year is turning out to be one of the best in recent times for the number 2 banking group in Jamaica – Scotia Group. The current year was not the best performing, but it delivered on many counts for the majority Canadian owned banking group.
Critically, the primary engine driving profits – loans, grew 12.6 percent, or $23 billion to $206 billion. According to the Managing Director, David Noel, “total loan growth remained strong throughout the period with a year over year increase of 13 percent. Highlights from our Retail Banking portfolio include a 17 percent year over year growth in our Scotia Plan loan portfolio. Our mortgage portfolio continued to perform well and grew 13 percent year over year as we continue to boast one of the most competitive mortgage rates in the market. Our total commercial loan book increased by 14 percent over the prior year. Of note, commercial loans to the private sector increased by 27 percent when compared to the same period last year.”
The group reports a net profit of $13.19 billion for the year to October, an increase of $419 million or 3.28 percent over the prior year. In 2018, the group booked gains on the sale of a subsidiary of $753 million, when this gain is excluded, net profit from ongoing operations increased by stronger 9.75 percent amounting to $1.17 billion.
Performance for the year was affected by lower net interest income due to declining interest rates and higher loan loss provision, following the adoption of a new accounting standard. Net interest income after expected credit losses for the year totaled $22.5 billion, down $767 million or 3.3 percent, compared to the prior year. Importantly, the group’s final quarter numbers show marked improvement in net interest income compared to the 2018 quarter. Net interest income delivered $6.4 million to the quarterly results compared to just $6 billion in 2018, while Net interest income after expected credit losses rose from $5.35 billion in the October 2018 quarter to $5.75 billion in 2019.
Scotia reports that “our credit quality remains strong and actual delinquency is down year over year, with loans on which there is no interest being booked for representing 1.77 percent of gross loans compared to 2 percent in the prior year.”
The Group reports, “operating expenses were also higher than the prior-year due partially to increased fraud-related expenses, as well as increased investments in technology and business optimization which we believe are necessary investments for the future.”
“We will continue to make investments in our infrastructure, including a $500 million investment to create a state of the art branch. Renovations have also begun at our head office building, where we are investing $1 billion to upgrade and modernize our facilities to create a more efficient and collaborative environment.”

Scotia Group’s Falmouth branch

Operating expenses for the year amounted to $24 billion for the period, an increase of $2 billion, or 9.54 percent compared to the prior year. Salaries and staff benefit costs increased by $697 million or 6.76 percent primarily due to increased incentives to the sales team resulting in the growth of in the loan portfolio, while other operating expenses grew by $1.37 billion. The growth in other operating expenses was attributable to increased technology investments such as ATM software, online banking enhancements, security chips for credit cards and network upgrade to support our digital strategy. Tax on assets increased by $45 million to $1.13 billion.
Segment results saw Treasury generating revenues of $8.2 billion up from $7 billion in 2018 with a profit of compared to $4.1 billion in 2018. Retail revenues grew to $18.9 billion up from $18.3 billion in 2018, with a profit of $3.6 billion compared to $4.9 billion in 2018. Corporate and Commercial banking saw revenues rise from $7.8 billion to $8 billion and profit hitting $1.4 billion in 2019 versus $2.75 billion in 2018. Insurance services grew revenues from $5 billion to $5.1 billion and generated a slightly higher profit of $3.97 billion from $3.8 billion in 2018. Investment Management generated revenues of $3.5 million and a profit of $2.3 billion in 2019 compared to $3 billion in revenues and profit of $1.8 billion in 2018. Other operations raked in revenues of $1.54 in 2019 with a profit of $1.5 billion, in 2018, revenues were just $1 billion with a profit of $965 million.
Other income for the year, other than interest income, increased by $3 billion or 17.97 percent over 2018. Net fee and commission income amounted to $8 billion, marginal declining of $22 million. Insurance revenues increased by $371 million or 12.64 percent to $3.30 billion due mainly to higher premium income year over year, partially offset by lower actuarial reserve releases, the group reported.
Net gains on foreign currency activities and financial assets amounted to $8.43 billion, up by $3.3 billion or 63 percent above last year due to increased market and trading activities. Deposits by the public grew to $313 billion, up from $288 billion in the previous year.
The Group’s shareholders’ equity stands at $118 billion from which the Board of Directors approved a final dividend of 55 cents per stock unit, or $1.7 billion, up from 51 cents per share in 2018. The current dividend is payable on January 15, 2020, to stockholders of record on December 24. The January 2020 dividend brings the total payment for the year to $4.76 after the group made two special dividend payments during the year.
The group reported earnings per share of $1.09 for the final quarter and $4.24 for the full year, earnings per share for 2020 should hit the $5 mark.
Scotia Group is a good stock for income and long-term growth.

Greater stability for IC TOP 10

NCB Financial is back in IC TOP10

The past week saw the initial public offers for Mailpac Group and Lumber Depot coming to the market with both being fully subscribed.
There were just two changes to the IC TOP 10 list of stocks at the end of the week. NCB Financial makes it back into the TOP 10 at the expense of JMMB Group that rose in price to $46 while the Junior Market TOP 10 welcomed Dolphin Cove while saying goodbye to Fontana.
The top three Junior Market stocks, is now led by CAC 2000 with projected gains of 200 percent, followed by MailPac Group with 180 percent and Main Event, with potential gains of 179 percent.
Radio Jamaica remains the lead stock with projected gains of 170 percent, followed by Pulse Investments in the number two spot with projected growth of 127 and Berger Paints with likely gains of 116 percent and percent is next.
The main market, closed the week with the overall PE of 18.8 and the Junior Market at 13.8, based on the current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.8 with the main market PE at 10.4.
The TOP 10 stocks now trade at a discount of 43 percent to the average for Junior Market stocks and main market stocks trade at a discount of 45 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Major shakeup in IC TOP 10

The past week saw the release of quarterly results by several companies and that helped in reshaping IC TOP 10 list of stocks for the coming week. The Junior Market TOP 10 has 5 changes and the main market just one.
Earnings downgrades and the announcement of new initial public offers were the main factors that resulted in the changes.
Mailpac Group and the Lumber Depot released prospectuses this past week, with both making it into the Junior Market TOP 10 list. Other notable changes to the Junior Market list are Caribbean Flavours, Fontana and Honey Bun that reentered the top list after weeks of absence. Dropping from the list are Iron Rock Insurance, Caribbean Producers and tTech, all of which suffered earnings downgrade.
Mailpac Group released its prospectus to sell 500 million shares at $1 each with earnings of 14 cents per share for a PE of 7 and potential gains of 180 percent. The Lumber Depot released its prospectus on Friday with a projected profit of $82 million or 16 cents per share.
JMMB Group released substantial gains in the half-year results that helped to propel it into the main market TOP 10 at the expense of Seprod. The latter suffered an earnings downgrade following the release of the nine months results.
 The top three Junior Market stocks, is now led by Main Event with projected gains of 201 percent, followed by Medical Disposables with 186 percent and by new entrant MailPac Group, with a potential increase of 180 percent.
Radio Jamaica
remains the lead stock with projected gains of 170 percent, followed by Pulse Investments in the number two spot with projected growth of 144 and Carreras with a likely increase in the stock price of 117 percent and percent is next.
The main market, closed the week with the overall PE of 17.6 and the Junior Market at 13.8 from 12.1, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 8.1 with the main market PE at 10.5.
The TOP 10 stocks now trade at a discount of 42 percent to the average for Junior Market stocks and main market stocks trade at a discount of 40 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.