Greater stability for IC TOP 10

November 25, 2019 by

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.

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

Major shakeup in IC TOP 10

November 18, 2019 by

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.

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MailPac Group IPO gains IC buy rating

November 14, 2019 by

Mail Pac Group and shareholders are selling 500 million shares at $1 each to raise $500 million with the offer opening on November 22. Applications from the general public must be for a minimum of 10,000 shares.  
The general public will be allowed to purchase just 6 percent or 150 million of the total issued share capital of 2.5 billion units that will be issued, following the close of the issue.
MailPac Group was formed late in 2019 and acquired Mailpac Services Limited and Mailpac Local Limited from Norbrook Equity Partners, majority shareholders, to amalgamate both logistics platforms into one operating business.
Profit is expected to reach $282 million in the 12 months to December this year based on results of the business operations for 2019 and will result in 14 cents earnings per share and a PE ratio of just seven times 2019 earnings and compares favourable with the average for the Junior Market of over 12 .5.
The company projects a profit of $317 million in 2020, but IC Insider.com is forecasting $356 and 14 cents per share. The stock receives the coveted IC Insider.com Buy Rated grading, with the price doubling by 2020.
The company enjoyed growth in revenues of 12.2 percent in 2017 and 25.7 percent in 2018 and 28.8 percent for the first half of 2019.
Before the acquisition mentioned above, the businesses in 2018 grew revenues to $969 million and $851 for the first three-quarters of 2019. Net income for the same periods was $213 million and $203 million, respectively. Mailpac Local Limited operated for seven months in 2018.
The Company intends to apply to the JSE for listing on the Junior Market subject raising at least $495 million. Proceeds are for general corporate purposes, including working capital and capital expenditure re and to settle existing debt obligations the selling shareholder assumed on behalf of the Company.
According to the company, Mailpac Services offers over 20 years of expertise in e-commerce fulfillment. With a rapidly growing client base of over 50,000 consumers in Jamaica, the business, a technological fulfillment platform for anyone shopping online. MGL’s core offering provides clients with physical addresses in Miami, Florida, where they can receive all goods purchased from international providers. Deliveries to the 55,000 square foot Florida warehouse are flown to Jamaica by a third-party cargo plane. MGL clears all items and delivers them to the customers at their homes or businesses or customers may collect packages at any of the company’s eleven stores islandwide.
The directors of the company are Khary Robinson, Executive Chairman, Mark Gonzales Executive Director & CEO, Garth Pearce Director, William Craig Independent, Non-Executive Director Tracy-Ann Spence Independent, Non-Executive Director. In the interest of good corporate governance, the board would do well to appoint an independent non-executive director as the chairman.

Filed Under: Buy Rated, Initial Public Offers Tagged With: , , , , , ,

Jamaica Producers Q3 profit doubles

November 12, 2019 by

Jamaica Producers former headquarters in Kingston Jamaica

Profit surged 102 percent in the September quarter, to $330 million from $164 million in 2019 for shareholders of Jamaica Producers. For the nine months to September, profit jumped 66 percent to $959 million from $578 million in 2019 on the back of a modest rise in revenues.
Sale revenues rose just 5 percent for the quarter, to $5.22 billion from $4.96 billion but gained a stronger 8 percent for the year to date, to hit $15.4 billion from $14.3 billion in 2019. The third-quarter revenues grew more slowly than second-quarter revenues, which increased 12 percent to $5.4 billion over the 2018 period and net profit attributable to shareholders increased then by 52 percent to $399 million.
The group’s main activities are port terminal operations, logistics, food and juice manufacturing, the cultivation, marketing and distribution of fresh produce, land management and the holding of investments. The group has operations in the UK, Europe, Jamaica and some other Caribbean countries.
The current year is not the only one that profits jumped sharply for the group. In 2018, profit attributable to the Group’s shareholders rose 66.5 percent for the June quarter over that of 2017 and 65 percent for the half-year from revenues that grew 20 percent and 25 percent, respectively. The group had significant growth in profit from ongoing operations in 2017 over 2016 with negligible profit from operations.
Improvement in profit margin in the half of the year to 34 percent from 31 percent in 2018 continued at the same pace in the September quarter with 34 percent from 29 percent in 2018 and for the year to September, 34 percent from 30 percent in 2018. The improved margin helped push gross profit up 24 percent in the quarter to $1.76 billion from $1.42 million and rose 23 percent for the year to date, to $5.3 billion from $4.3 billion in 2019.
Selling, administration and other operating expenses rose 18 percent to $958 million in the quarter and increased 14 percent in the nine months to $2.8 million. Finance cost declined in the quarter, to $78 million from $89 million in 2018 and from $234 million to $277 million for the nine months.
Earnings per share (EPS) came out at 29.4 cents for the quarter and 85.5 cents for the nine months. EPS should end the fiscal year ending December to $1.25 with a PE ratio of 17 at the price of $21.50 it last traded on the main market of the Jamaica Stock Exchange and is in line with the average for main market stocks. The net asset value ended at $12.30, with the stock selling at 1.75 book value.
Gross cash flow brought in $3.7 billion, growth in receivables, investment transactions, purchase of fixed assets and the paying of $125 million in dividends resulted in cash funds at the ending at $927 million. At the end of September, shareholders’ equity stood at $14 billion, with borrowings at just $6 billion. Net current assets ended the period at $6.4 billion inclusive of trade and other receivables of $9 million, cash and bank balances of $927 million. Current liabilities stood at $3.2 billion at the end of September.
Jamaica Producers is a buy for the medium to long term.

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

Two new entries to IC TOP 10

November 10, 2019 by

Back in IC TOP 10

The vast majority of listed companies on the Jamaica Stock Exchange will be releasing quarterly results by the end of the week and that could result in significant price movements for some. The major moves should apply mostly in the Junior Market that has several undervalued stocks.
The main market TOP 10 has two new additions this week with Pulse Investments surging back into the list with robust first-quarter results, suggesting that profit for the year could reach 50 cents per share.  Scotia Group also returned to the top flight while Eppley and Proven Investments exited the listing. There was no change to the Junior Market TOP 10 list.
The top three Junior Market stocks continue to be led by Caribbean Producers with projected gains of 254 percent, followed by Iron Rock Insurance with a potential rise of 232 percent and Main Event with 221 percent.
Radio Jamaica remains the lead stock with projected gains of 170 percent, followed by Carreras in the number two spot with likely increases of 106 percent and Berger Paints with projected growth of 95 percent is next.
The main market closed the week with the overall PE of 17.6, up from 17.2 and the Junior Market at 12.1 from 11.8, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.5, with the main market PE at 10.6.
The TOP 10 stocks now trade at a discount of 38 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. The increased 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.

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

Main Event leaps into IC TOP 10

November 4, 2019 by

Main Event revenues growing nicely profit stalls.

Overall price movement on the Jamaica Stock Exchange was steadier ahead of the month-end but some stocks recorded notable price movements as the JMMB Group APO remained opened.
Main Event shot into the Junior Market TOP 10 list this week in the number 3 position with a switch to earnings for 2020 fiscal year. The company came under selling pressure recently with profit declining in the July quarter although revenues climbed a strong 29 percent over the outturn for the similar quarter in 2018. The company managed to record a modest increase in its nine months profit with earnings per share of 36 cents. If the growth in revenues maintains the trend for 2019 in 2020 and management controls cost that was out of line in 2019, then the company should go on to record a strong increase in profit in the 2020 fiscal year that starts this month.
Honey Bun returns to the Junior Market TOP 10 stocks while Caribbean Flavours and Access Financial with an earnings downgrade, following release of the six months results, are out of the IC TOP 10. Over in the main market, Eppley moved in at the expense of Scotia Group with the price climbing to $58.99 on Friday.
The top three Junior Market stocks, continue to be led by Caribbean Producers with projected gains of 237 percent, followed by Iron Rock Insurance with potential gains of 233 percent followed by Main Event with 226 percent.
Radio Jamaica remains the lead stock with projected gains of 176 percent, followed by Carreras in the number two spot with likely gains of 128 percent and Jamaica Broilers with projected growth of 107 percent is next.
The main market, closed the week with the overall PE of 17.8, up from 17.2 and the Junior Market at 12.1 from 11.8, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.8 with the main market PE at 10.7 from 10.8 for the previous week.
The TOP 10 stocks now trade at a discount of 37 percent to the average for Junior Market stocks and main market stocks trade at a discount of 38 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.

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

IC TOP 10 steady in market volatility

October 27, 2019 by

The main market slipped on each trading day, this past week with the market index dropping more than 11,000 points and has corrected nearly 8 percent from the peak in August while the Junior Market fell 65 points but the TOP 10 stocks had one change.  
Jetcon Corporation rose in price by the end of the week to $1.99 from $1.85 at the close of the previous week and dropped out of the Junior Market TOP 10, while CAC2000 moved back into the top 10 at the number ten spot.
Market activity resulted in no change to the top three Junior Market stocks, leaving Caribbean Producers with projected gains of 233 percent as the leader, followed by Iron Rock with potential gains of 233 percent and Jamaican Teas with 167 percent.
Radio Jamaica closed the week down at $1.80 from $1.99 with projected gains of 178 percent, up from last week’s 151 percent and remains the leading undervalued main market stock. Carreras is the number two stock with likely gains of 129 percent and Berger Paints with projected gains of 95 percent is next.
The main market closed the week with the overall PE of 17.2 and the Junior Market at 11.8 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks average is at 7.8 and the main market PE fell to 10.8 from 11.1 for the previous week.
The TOP 10 stocks now trade at a discount of 34 percent to the average for Junior Market stocks and main market stocks trade at a discount of 37 percent to the overall market.
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.

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

42% gain pushes MPC out of IC TOP 10

October 20, 2019 by

Infrequent trader MPC Caribbean Clean Energy after just six weeks on the TOP 10 main market chart with the price at $134 dropped out this week, with the price hitting $190 for a gain of 42 percent.
MPC was the only stock leaving the main market listing and is replaced by Stanley Motta with the stock price dropping to $5.50. Jetcon Corporation returns to the Junior Market after General Accident rising to $8 and falling to the 13th position on the overall Junior Market ranking.
Market activity resulted in no change to the top three Junior Market stocks, leaving Caribbean Producers with projected gains of 240 percent as the leader, followed by Iron Rock with potential gains of 204 percent and Jamaican Teas with 158 percent.
Increased investors’ interest pushed the price of Radio Jamaica to $1.99 with projected gains now down to 151 percent from last week’s 213 percent but still remains the leading main market stock with potential gains. Carreras sits at the number two spot with likely gains of 125 percent and Jamaica Broilers with projected gains of 100 percent is next.
The main market, closed the week with the overall PE of 17.3, inching up from 17.2 for the previous week and the Junior Market rose to 12 from 11.1 last week based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks average rose to 7.9 from 7.7 and the main market PE remains at 11.1.
The TOP 10 stocks now trade at a discount of 34 percent to the average for Junior Market stocks and main market stocks trade at a discount of 36 percent to the overall market.
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.

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

Financials & entertainers join IC TOP 10

October 13, 2019 by

Scotia Group joins IC TOP 10

The past week saw declines in the markets with the main market falling on each trading day while the Junior Market was up and down. Against that background, three new listings made it to the TOP 10 lists.
Buy Rated Junior Market stocks have two new entrants this week with Dolphin Cove price dropping to $9 and Access Financial trading at $35 joining the list while Honey Bun with the price rising to $6.50 and CAC2000 that rose to $13.50 exiting the top listing. Scotia Group dropped back to $57.10 from $61.50 at the end of the previous week and returns to the main market TOP 10 list at the expense of Stanley Motta.
Market activity resulted in no change to the top three Junior Market stocks, leaving Caribbean Producers with projected gains of 240 percent as the leader, followed by Iron Rock Insurance with potential gains of 201 percent and Medical Disposables with 186 percent.
Radio Jamaica (RJR) share price that slipped during the previous week to a low of $1.35 and closed that week at $1.60, climbed further this past week with increased investors’ interest that pushed the price to $1.80 with projected gains to 213 percent, to remain the leading main market stock. Carreras sits at the number two spot with likely gains of 125 percent and Jamaica Broilers with projected gains of 100 percent is next.  Berger Paints slipped to the fourth spot with a downward revision of earnings to $1.80 for the year.
The main market, closed the week with the overall PE of 17.2, inching up from 17.1 for the previous week and the Junior Market remaining unchanged at 11.1 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks average remains at 7.7 and the main market PE at 11.1, up from 10.4 at the close of the previous week.
The TOP 10 stocks now trade at a discount of 31 percent to the average for the Junior Market stocks and main market stocks trade at a discount of 36 percent to the overall market.
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.

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

Q1 profit falls 13% at JBG

October 10, 2019 by

Profit at Jamaica Broilers Group fell 13 percent in the July quarter to $361 million from $413 million in 2018 but IC Insider.com computations point to strong gains in profit for the year ending in April 2020 as revenues rise and costs are contained below inflation.
At the same time, profit attributable to shareholders dropped 8 percent to $368 million from $399 million in 2018 even as gross profit increased slightly over 2018 from $3.18 billion to $3.32 billion as sale revenues rose 9 percent to $13 billion, from $12 billion in the corresponding quarter in 2018.
Cost of sales increased 11 percent for the quarter, to $10 billion from $9 billion in 2018 resulting in gross profit margin in the quarter declining to 25 percent from 26 percent in 2018. Distribution cost rose just 2 percent to $445 million from $436 million in the corresponding quarter in 2018. Operating profit increased by 2 percent to $679 million from $665 million in 2018. Finance income fell sharply by 88 percent to $36 million from $300 million in the corresponding period in 2018.

Jamaica Broilers chicken

Administrative expenses remained flat at $2.3 billion, but Finance cost, declined by 7 percent to $299 million from $324 million in 2018 and corporate taxes fell a sharp 76 percent to $55 million.
The group’s segment results were mixed, with foreign exchange losses and political and economic volatility in Haiti negatively impacting the results. The Jamaica segment produced $8.4 billion in revenues, but just slightly above the $8.24 billion generated in 2018 profit resulting in a 9 percent fall in segment profit of $764 million. Operations in Haiti produced $19 million in profit compared to $60 million in the previous year from a fall in revenues from $595 million down to $530 million. Profit from the US operations climbed by 11 percent to $333 million from $ 300 million in 2018 as revenues climbed to $4.34 billion from $3.3 billion in 2018.
Gross cash flows from brought in $650 million but after a dividend payment in the quarter amounted to $212 million and other long term liabilities of $720 million, cash inflows ended at $316 million and that pushed cash and equivalent to $3.65 billion. At the end of July, shareholders’ equity stood at $15 billion with borrowings at just $7 billion. Current assets ended the period at $22 billion inclusive of receivables of $4 billion and inventories of $7 billion, cash and bank balances of $4 billion and current liabilities of $13 billion.
Earnings per share came out at 35.81 cents for the quarter. IC Insider.com is forecasting $3.50 per share for PE of 10 times the current year’s earnings and earnings of $5 for the 2021 fiscal year.

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